Are you Planning to Invest the Ethical Way?
For the past few years, the world has witnessed tremendous changes in every sector of society. With everything that has happened in the past, communities have rallied behind each other and called for changes in attitude, behaviour and ethics to eradicate global issues such as climate change.
Investing has become one of the many areas that were affected by the recent changes in the world. Instead of solely focusing on risk and return, many have distanced themselves from the traditional mindset of performance-focused investing and instead, are choosing to prioritise the societal and environmental impact of their investments.
Why Ethical Investing Might Be Suited To You
Ethical investing is becoming increasingly popular and has even begun to outperform some traditional funds. More and more individuals seek to become more socially responsible to gain a sense of control and power ensuring their money is going towards what aligns with their values.
Over 10 years, the average annual return for a sustainable fund invested in large global companies has been 6.9% a year, while a traditionally invested fund has made 6.3% a year.1
With the global pandemic illuminating how economies and societies are interconnected, many have begun to understand the influence of their actions and decisions on the global society and our planet. Given the recent events, many investors are starting to be interested in ethical investing, hoping to contribute to the movement against environmentally damaging causes.
If you’re one of the many who’ve gained interest in ethical investing, you may need help in navigating the complexities. You may already be familiar with the standard investment process, but the ethical investment journey is a bit different from what you may already know. As such, we recommend working with the right ethical financial advisor to offer you ethical investment advice.
Investing Ethically With an Ethical Financial Advisor
A financial adviser may be able to help you make informed financial decisions that can improve your financial situation. A financial adviser has certain acquired skills and knowledge that they’ll utilise to address any financial concerns you may have.
However, when it comes to ethical investing, it’s important to consider sourcing an ethical financial adviser that has acquired the relevant knowledge about responsible and sustainable investing.
Not every financial advisor is entirely familiar with ethical investing since it’s relatively new. To successfully make ethical investments, it’s important to consider working with an ethical financial adviser to ensure you can get the best informed ethical financial advice. Unlike a typical financial advisor, an ethical adviser can be fully equipped to help you make the right investment decisions that align with your beliefs and values.
Aside from the standard procedure involved in investing, an ethical financial adviser will also make sure to understand your values and where you stand on environmental, social, and governance issues. Once they get a sense of what matters most to you, they can provide you with different investment options that may appeal to you and suit your values profile.
The future of investing is ethical and bright!
With more people advocating for ethical investing, the world may eventually witness a significant change in the environment and society for good. As long as you work with the right ethical financial adviser, you can positively impact the world, advancing us one step closer to achieving all our environmental goals.
Ethical Financial Advisers in Adelaide
If you’re looking for the best ethical financial adviser in Adelaide, our expert ethical adviser at Novo Wealth may just be who you need! Our financial adviser will provide ethical investment advice and develop strategies to invest responsibly and optimise your earning potential.
Book a complimentary meeting today!
References:
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https://www.theguardian.com/money/2020/jun/13/ethical-investments-are-outperforming-traditional-funds
