We have written about this before on this website, but we haven’t focused on whether you would be an ideal candidate for this type of investment. Most of the time people invest in companies or investments because they offer the potential of a good return. However, if you want to make sure your principles are still intact after making specific investments, you may wish to think more about socially responsible investing.
Just to recap, in case you didn’t read our previous article on this topic, this form of investment focuses on sinking your cash into investments that do not clash with your beliefs. For example you may be against animal testing. If this is the case you want to make sure you do not inadvertently invest in companies that support this cause.
Clearly there is a little more work involved if you want to use this method to ensure you only invest in companies you believe in. You must ensure you look into the nature of each company so you know exactly what they do and don’t do. If you don’t do this a lot of the process will be down to guesswork.
The best course of action if you want to look into this in more detail is to consider your existing investments. There is little point investing in sound and ethical companies if you have other existing investments that do not meet with these values. It will also give you some practice in looking for the right investments and in researching what specific companies do or don’t have to offer.
Once you have done this you can consider new investments. Some people look directly at green companies or those that are involved in areas that are forward thinking. For example you might look to invest in companies providing green energy rather than in existing gas and electric companies. You may also consider looking into fledgling companies that have green credentials rather than looking at larger companies that are already well established.
As you can see it makes sense to consider the different types of companies and opportunities available prior to delving into the topic in more detail. Many people would be keen to invest in a responsible manner, but they do not always feel prepared to do the required research to ensure they choose the right companies. Do you fall into this bracket? It is virtually impossible to pick a socially responsible investment without doing your homework, so make sure you have the ability to set aside some time to do this before you dive in.
There is every reason to suspect that this form of investing will flourish in the future. Indeed it has a solid history and has been getting more popular as time has gone on. If you want to add your cash to investments that have the welfare and future of our world at stake, it is time to think seriously about investing in a socially responsible manner.