How to be a More Socially Responsible Investor

​It’s becoming increasingly common for American investors to take part in socially responsible investing.

It’s becoming increasingly common for American investors to take part in socially responsible investing. Taking part in an investment strategy that will both give you financial gains and do good for the world is important. Companies that socially conscious investors are putting their capital in are those that are environmentally friendly, diverse, and sustainable. Here’s how you can become a more socially responsible investor.

Identify what is important to you, then find companies that align with your values

What are the values that are important to you? Is fighting climate change where your values lie? Or, maybe you want to focus on companies that are dedicated to diversity and giving opportunities to those with less. Once you’ve determined the most important causes to you, then you can seek out companies whose values align with your own. Remember to not just take what a company says at face value—really do your research to ensure that companies are upholding those values.

It’s possible your investment returns may not be as high

This can be a dilemma for those who are wanting to maximize their returns. Of course, for many the point of investing is to gain capital, but if you are focusing on ethical companies, you may find that you come away with less. However, just because you are making less off of investments doesn’t mean it’s for nothing. Consider the impact that investing in a socially responsible business can have on communities and the people that work for them.

Take your time and do what feels right

Investment management takes time and research, especially if you are planning on investing in a socially conscious business. Speaking with a financial advisor will help you to parse through the details and make good decisions for your future. You may find that you like to have a multitude of investments in different companies where some will give you a good ROI and some will create a positive impact on the world.

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