Your values are important to you – and so are your investments. And you don’t have to keep these two parts of your life separate if you pursue sustainable investing.
When you follow a sustainable investing approach to address your specific concerns, you might invest in companies that seek to improve the environment. You also might avoid investing in businesses whose products raise social concerns, possibly because of safety issues.
Sustainable investing can take different forms. You could choose to buy individual stocks, but that could be quite expensive. Instead, you might consider mutual funds that concentrate on sustainable investments.
When evaluating these funds, look for those that are diversified, have relatively low fees and a proven track record through different market environments. However, many sustainable-investing funds are newer or weren’t always invested sustainably, so be sure the track record is relevant.
Finally, consider making charitable contributions as part of your financial strategy; this could be a good alternative to limiting your investment choices.
Through sustainable investing or charitable donations, you can express your beliefs tangibly – while still working toward your long-term goals.
What’s Sustainable Investing?
It’s investing in companies that align with your beliefs on environmental, social and corporate governance issues.
How to Do It
Select individual stocks of companies you are comfortable supporting or invest in mutual funds or exchange-traded funds (ETFs) that focus on sustainable investments.
Dilute risk by owning an array of funds that use different approaches or processes to invest in sustainable companies.
Check Track Records
Many sustainable-investing funds are newer or weren’t always invested sustainably, so be sure the track record you are considering is relevant.