With the growing shift towards more ethical investing, it’s more important than ever to build an ethical portfolio. Investing helps you grow your money, which can be used for the benefit of mankind.
If you have a diversified portfolio of different investments (stocks, bonds, mutual funds), it’s likely that some of them will perform well while others won’t. This is where investing becomes risky if your personal values and beliefs aren’t aligned with your investments.
That’s why it’s important to build an ethical investment portfolio that aligns personal values with the investments you choose to make.
In this article we cover everything you need to know about building a sustainable investment portfolio, including tips on how to do so in the most beneficial way possible.
They Consider Their Ethical Values
It’s important to assess the values of the companies you invest in and give priority to those that align with your ethical values. This will create an investment portfolio that is more beneficial to you, the investor.
So, what are some of the most popular ethical values people are aligning with?
- Improve human health- Investing in companies that are working to find more effective cures for diseases is a great way to invest in humankind.
- Reduce inequality – Investing in companies that bring about a more equitable distribution of wealth is another great way to invest in a more sustainable future.
- Protect the environment – Investing in companies that protect the environment and respect the health of humans and ecosystems is yet another way to invest in a more sustainable future.
Conduct A Lot of Research
A little research can go a long way in helping you build an ethical investment portfolio. It’s best to do this research before you actually invest in a company. This can help you make more informed decisions and potentially avoid investing in companies that aren’t aligned with your values.
One way you can do this is by reading the company’s website, their annual report, and their financial reports. These documents provide a lot of information about a company, such as how they make money, their financial history, and what their strategy is for the future.
Investigate the Track Record of Potential Investments
Investing in a company can be a risky business. It’s important to find out as much information as you can about the company’s performance history before you decide to invest in them.
Here are some things to look out for when investigating the track record of potential investments; What is their financial history? How long has the company been around? How many employees does the company have? What does the CEO or COO say about the company and its future? What is their impact on the world? What are their values?
Speak to Investment Advisors
You don’t have to do the legwork of research and investigations on your own. It’s also a good idea to speak to an investment advisor if you have any questions. An investment advisor can help you make more informed decisions, as well as provide you with advice on other investments you might want to make.
Note that the investment advisor might charge a fee to help you build an ethical investment portfolio. The fee could cover things like research, investigations, track record assessment, and more.
A fee-based investment advisory relationship is important because it shows that you trust the advisor and you’re willing to pay a fee for their expertise.
In Summary
Humankind is rapidly changing, and so must your investment portfolio. Investing in sustainable companies that protect the environment, reduce inequality, and end animal testing is important for a sustainable future. Ultimately, it will help you grow your money while doing a world of good.
