Are Making Ethical Investments Right for you?
Investments have always been a good way of growing the money that you already hold or even increasing funds for your business or personal savings. Luckily, there are many great investment opportunities available in the market today including bonds, real estate, shares and many more.
If you believe that social and environmental concerns are as important as monetary returns, there are ways to ensure your investment choices reflect those concerns. Ethical and responsible investments are possible and you can still enjoy great returns with competitive ethical funds and investments.
A Responsible Investment Benchmark Report Australia 2021 study shows that the future is bright, with many Australian investors looking to make ethical investments in the next five years.
If you want to learn how you can start investing responsibly without sacrificing high returns you can right now and start your journey into ethical investments.
Here are steps to figuring out if making ethical investments is right for you:
1) Figure Out Your Values
The first step in this process is determining what goals you want to accomplish with your investments and what values you want to uphold.
How will you be making your investment choices? What guidelines will you be using to come to your decisions? What are the most ethical issues that are important to you right now?
According to the Responsible Investment Benchmark Report Australia 2021 study, consumers and investors are mainly concerned about fossil fuel, human rights abuse and animal cruelty.
It’s important to think about what you care about and what you want your money invested towards. It’s equally important to consider what you don’t want your money going towards.
I recently sat down with fellow financial expert, Lewis Gurr-Stephen from Market Forces, to discuss the influence of those holding the financial purse-strings and share the potential impact of divesting from fossil fuels to fund a better future – watch now!
You can discuss how you can invest responsibly with an ethical investment adviser, who will be able to ensure your money is going towards matters that align with your values.
2) Research Beforehand
Now that you know what values you want to uphold, you must research your options.
Whether you are a beginner at investing or have been doing it for years, researching your options is integral before you invest your money.
When examining different investment options, you can ask where you’re money will go. This can help you feel assured that your money is being invested in the right place.
Responsible and ethical investments don’t just consider the financial returns, they also take into account the social, environmental and ethical impact they can have on the world. These types of investments can provide you with peace of mind knowing you’re money is being put to good use.
Want to learn more about what responsible and ethical investments are, check out our blog: A Simple Guide to Responsible and Ethical Investments
3) Seek Advice from an Ethical Financial Adviser
Ethical investments have been around, slowly gaining popularity. Taking advice from like-minded professionals can be a great way to help you improve your investments, especially if you’re a beginner and don’t know much about ethical investments yet.
Most advisors who are experienced in this area have a lot to offer. They’re aware of how the landscape for ethical investments is constantly changing and developing area, so they can provide you with support in making decisions that align with your values.
Novo Wealth offers tailored financial advice for those who want a secure, professional and ethical plan for their finances in an effort to make the world a better place.
4) Come Up with a Screening Process
Once you’ve identified some great options and taken on a mentor for advice, it’s time to think of a screening process that will allow you to narrow down your choices. Screening involves looking into different aspects of an investment, from its financial results to its environmental impact.
Having a screening process is especially important if you are not fully familiar with ethical investments yet.
You can use your values as a basis for your screening or any other personal metrics you want to use. You may want to consider requesting some help from ethical investment advisers when needed.
5) Have a Performance Review
A performance review can be vital as it enables you to track the performance of your investments over time and measure them against your ethical investment goals. This can allow you to make the necessary changes and corrections to ensure you are reaching your financial goals.
Are You Seeking Ethical Investment Advice in Adelaide?
As ethical investing is on the rise within Australia, its significance is a must to recognise. You can gain peace of mind knowing that your money is going to genuinely good companies and causes that will help future generations have a better life.
Looking for ethical investment advice in Adelaide? Novo Wealth is an ethical financial advice specialist for professionals and business owners who want to be responsible for their investments.
