One of the strongest votes anyone can make is with their wallet, and investing is no different. Investors are beginning to reward companies that align with their core values.
This practice is known as ethical investing or Socially Responsible Investing. It has become big business for the stock market.
There are a few reasons ethical investments have become so popular:
You can make a difference
As more and more people use their resources to influence policy, Socially Responsible Investing has become an easy way to start.
Investors can choose to reward companies whose ideals align with their own. They can also keep their money in businesses with good business practices. Alternatively, investors can avoid industries they may disagree with.
Ethical investing has shown to be more profitable than traditional investing, on a consistent basis.
The theory is that safe, ethical companies are less likely to experience costly accidents or employee lawsuits. This means less risk to investors.
Socially responsible businesses have become safe bets for investors. That, in turn, makes investing in these companies an easy proposition.
Socially Responsible Investing is accessible
Many brokers are offering ethical portfolios, with different parameters depending on how strict you want to be.
You can choose how much of your portfolio focuses on socially responsible companies. There are tools available to screen out companies that don’t meet the suggested criteria or you can develop your own qualifications.
These options make it easy to tailor your portfolio as specifically as you want. According to Forbes, one in every nine dollars invested can be labeled as Socially Responsible Investing.
Socially Responsible Investing has become popular in the stock market. These investments are not only good bets ethically, but they have been known to bring decent returns as well.
If you have any questions about investment law and your rights as an investor, an experienced attorney can help walk you through the process.