FAQ: What Is Ethical Investment? Everything You Need to Know About Responsible Investment

‘What is ethical investment?’ is a common question among aspiring and new investors – we all want to make more money, but how can you do that and make sure your money isn’t funding anything you feel is morally wrong?

What is Ethical Investing?

Ethical investing, sometimes referred to as responsible investing or socially responsible investing, is an investment strategy based on an individual’s personal moral code or ethical preferences. The goal for ethical investors is to invest in positive impact funds, which may focus on any number of ESG (environmental, social, and governance) factors.

Types of Ethical Investment

Ethical investment strategies can involve a variety of investment types that fall under the category of ethical funds or demonstrate ethical practices.

Types of ethical investments include:

  • Sustainable Investing (across-the-board investment strategy focused on environmental and social sustainability)
  • Socially Responsible Investing (socially focused investing)
  • Green Investing (also referred to as eco-investing or eco-investment objectives)
  • Impact Investing (investment strategy to finance solutions to environmental and social problems)
  • ESG (Environmental, Social, Governance) Investing (similar to Impact Investing, but uses a financial-first framework)

Whether your values are more aligned with environmental concerns or social equity issues, there are many ways to invest ethically to secure your own financial future AND contribute to a better future for all. All you need is the right information on ethical companies and funds to get you started, which is why Novo Wealth works with people like you all over Australia who believe financial security and sticking to your values can go hand-in-hand.

How Do I Know Ethical Investments Are Right For Me?

Now that you know what ethical investing is, how do you know it’s right for you? 


The best investment portfolio or strategy is the one tailored to your unique circumstances and to help our potential clients understand if ethical investing is right for them, we’ve developed the Novo Wealth Responsible Investment Profiler tool. 


This tool will help you clearly understand the issues surrounding responsible investment and ethical money and identify the ones that are important to you. When choosing where your money is invested, it’s important to understand how investment impacts our world issues ranging from the environment, gambling, tobacco and labour practices to name a few.


This tool will help if you want to understand the thought process behind being a more responsible investor and will help you decide if certain investments or investment styles are right for you.

Download the Novo Wealth Responsible Investment Profiler here.

Start Investing Ethically & Secure Your Future Today

Novo Wealth is a specialist (certified by the Responsible Investment Association Australasia) in the Responsible and Ethical Investment space. Our entire business and ethos are designed to help you invest strategically, grow your wealth, and retire in comfort while honouring your ethical values.

Start your investment journey today with a free 15 min phone call to discuss your values, goals, and how ethical investing can help you.

Paul Garner CFP®
Financial Adviser, Director
Certified Responsible Investment Financial Adviser