Every enterprise has an effect on our world, and by investing in these companies, so do we. This the fact recognised by responsible or ethical investing.
Responsible investment is not only based on profits, but principles as well, and weighs up certain costs that cannot be seen in a portfolio. These are costs paid by the planet, people and society.
For many years, this investment option was believed to be admirable but not always an approach associated with profits. Today, this not the case, with responsible funds growing in popularity and providing evidence they can offer investors superior returns.
A common misconception is that if you invest responsibly, you’ll have to accept lower returns. This idea is based on the fact that ethical portfolios will likely exclude certain high-profit industries like tobacco and oil, making them unable to compete. Recent studies suggest otherwise, however. While ethical investors may have a smaller selection of assets to pick from, the companies they invest in are far less likely to be hit with fines and scandals that can force stock prices to drop.
Additionally, responsible enterprises usually possess business models that are sustainable making them more able to adapt to climate change and other long-term challenges.
If you’re looking for help with portfolio management in Shropshire and interested in responsible investing, we can help. Our experienced advisors at Hartey Wealth management can create well-balanced portfolios that only contain assets in keeping with your personal ethics. Don’t hesitate to get in touch with our team today to discuss your needs.