In recent years ethical investing has really started to take off.
However the divide between what we think is ethical investing and what ethical investments are can be pretty big. Things to consider when thinking about ethical investing:
- Do you just want your underlying investments to be ethical?
It is all well and good ensuring that the companies you are invested in are ethical; but have you thought about the company you are investing through; often the most effective way to invest is through an investment platform, so you need to consider whether it is important to you whether this platform is also considered ethical.
- What does ethical mean to you?
Is ethical investing about investing in companies that have excellent social responsibility programs? Or are you more concerned about the moral approach; i.e no child labour, no tobacco no gambling, or both? This is where some of the greatest misconceptions with ethical investing occur. You may be surprised to find that some of the best performing ethical funds hold Australian Bank Shares, BlueScope Steel and Unilever.
- Are you ethical at home?
Everyone makes a difference right? So do you do what you are asking big businesses to do? It is worth asking yourself this as once you learn more about the ethical investments available you might find that they don’t meet your ideal, so a little self -exploration might be necessary. You need to work out in which field you want to play in,
Once you’ve asked and answered these questions, it will be much easier to determine the right ethical investments for you. The field of ethical investing is growing at a rapid rate, price to access ethical funds are coming down and returns are strong. After all, it makes sense that established companies with better environmental, social and governance practices are more sustainable and deliver higher returns over time.
Now you are ready to get ethical – get in touch to talk about how!
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