Want To Make The World A Better Place? Learn About Impact Investing & More
When you think of investing—the first things that come to mind are probably dollar signs, ticker symbols, and numbers. But in today’s world, investing isn’t just about growing your wealth. Investing can also be a vehicle for making a positive impact on society and the environment. By aligning your investments with your personal values, you can help drive change while pursuing financial goals. Here are some ideas to get you started:
1. Understand ESG Investing
- Environmental, Social, and Governance (ESG) Criteria: ESG investing involves selecting companies based on their commitment to sustainable practices, ethical governance, and social responsibility.
2. Choose Socially Responsible Investing (SRI) Fund
- SRI Funds: Many SRI investment funds specifically exclude companies that engage in activities deemed harmful, such as tobacco production, fossil fuels, or weapons manufacturing. Instead, they invest in companies that align with positive social goals, like renewable energy, healthcare, and education.
3. Consider Impact Investing
- Direct Positive Impact: What is impact investing? Impact investing goes a step further by directly targeting investments that aim to generate measurable social or environmental benefits. For example, these might include supporting microfinance institutions that empower small business owners in developing countries or investing in affordable housing projects that help underserved communities.
4. Support Community Investing
- Local Impact: Community investing focuses on directing capital to underserved or disadvantaged communities. This can include supporting local credit unions, community development financial institutions (CDFIs), or other programs that provide loans and support to small businesses and individuals in these areas.
5. Explore Thematic Investing
- Invest in Your Passion: Thematic investing allows you to focus on specific areas you’re passionate about, such as clean energy investments, water conservation, or gender equality. By investing in companies or funds that concentrate on these themes, you can align your investments with causes that matter to you.
6. Research and Stay Informed
- Due Diligence: It’s essential to research and stay informed about the companies or funds you’re investing in. Use tools like ESG ratings, fund prospectuses, and corporate sustainability reports to help align investments with your values.
7. Consult a Financial Advisor
- Professional Guidance: If you’re unsure where to start, consider consulting a financial advisor who specializes in ethical or values-based investing. They can help tailor your portfolio to meet both your financial and moral objectives.
Shelton Sustainable Equity Fund
Important Information:
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The reader should not assume that investment decisions identified and discussed were or will be profitable. Specific investment advice references provided herein are for illustrative purposes only and are not necessarily representative of investments that will be made in the future.
Investing is subject to several risks, any of which could cause the loss of money. An environmental focus may limit investment options available.