Invest in Nature - Socially Responsible Investing

Socially responsible investing is a method of allocating financial resources that takes into account non-economic considerations. The bottom line is still important, just not of exclusive importance. Investors are willing to take a hit in terms of investment returns in exchange for the knowledge that they are championing a cause they feel passionate about with their dollars.

Socially responsible investing can take several forms. It might be geared towards a specific social issue such as environmental conservation, or it might be geared towards avoiding certain asset classes based on beliefs, such as a religious organization not investing in alcohol, tobacco, or gambling related businesses.

Invest In a Socially Responsible Manner

There are many good resources arguing socially responsible investments online. For instance, there are a number of mutual funds and ETFs that offer an array of socially responsible investment options. The industry has branched out quite substantially in recent years, and as such it offers just about the same array of investment options the conventional financial industry offers.

For example, you can make the choice of going into income funds, growth funds, or mixed funds just like a regular investment fund. The nature of the funds you pick will still be based on your risk preferences and financial capacity, but again with that added halo of social consciousness built into the investment vehicles.

There are other ways of investing in a socially responsible manner. One way would be simply investing in a community organization which has a mission that you believe in. This type of investing appeals to the person that really wants to keep things local and see for himself or herself what his/her money is doing.

Another option to invest consciously would be to divest one's money from activities and/or companies that produce products or services that go against one's beliefs. For example, one could take one's money out of a company that recently started producing cigars if that is something that goes against one's values. 

Where Can I Find Stocks?

There are a few simple steps one can use to narrow down one's search for investment options. The first and most important step would be to determine a cause or movement that one is passionate about and willing to put money into. From there, one can narrow down the places that offer those specific categories of investments.  

The next step would be to properly assess one's risk preferences. Many factors play into this such as age, how much discretionary wealth one currently has, and many more. Once that has been properly determined, one can narrow down the types of investment vehicles that also offer the asset classes one is passionate about. 

Another major factor in determining what to invest in is one's time horizon. Depending on how soon one wishes to cash out on one's investments, different products might make more sense. After all of that has been determined, one will have a much more specific list of stocks and other products from which to choose from.

It is not easy to find good stocks when you invest in a socially responsible manner. That is why using the best robo advisors is helpful. Most advisors of this type will offer some form of preference listing which will help greatly narrow down suitable investments catered to each customer. This method is generally considered more efficient both fee-wise and timewise for most retail investors. 

What Skills Are Important For Financial Investments?

Knowing one's own preferences is not enough if one wishes to invest money independently. There are a number of skills needed to properly allocate funds into the appropriate channels. First and foremost would be acquiring knowledge of the general economy in order to know how to time one's investments. 

Another skill needed would be a good knowledge of the specific sector of the economy one would like to direct one's investments to. This level of knowledge would normally be obtainable through a team of analysts whose fulltime responsibility would be to study an industry intimately and constantly in order to know what is going on.

On top of that, one would need to analyze the individual companies and their financials as well as their objectives in order to determine the worthiness of the company. A financial advisor could for instance have advised you to invest in the Finnish startup Solar Foods, for their efforts to fight hunger in the third world. 

These skill prerequisites are usually why most retail investors opt to invest through a fund of some sort, which does the analytical work for all their investors, and therefore can spread that cost better. Following, it only requires that investors determine which fund is best suited for their objectives.

Begin Your Investing In Nature Today!

Since the social movements of the 1960s, socially responsible investing has become increasingly prominent and popular. Whether it is in the way people invest their retirement funds, or simply in the organizations they support, people are increasingly taking more and more factors into account before parting with their money.

As the socially responsible investing sphere continues to expand, it will inevitably provide its participants with more and more options to express themselves and their values. Only time can tell how far this niche movement will grow and how it will influence our world. Regardless, you should begin your investing in nature today!