Ethical Investments
Socially responsible investing
The phrase ethical investment, also known as socially responsible investment, comes in a range of ‘green’ funds which can be found in unit trusts, investment trusts and open ended investment companies, and usually refers to funds that are more environmentally friendly than other funds available. If you want to start an ethical investment, it is wise to speak to your independent financial adviser about the type of investment that you would like and how it would suit your requirements based on your own principles and views.
What is an ethical investment?
The reason many people make ethical investments is because they want to avoid making investments in such things as gambling or pornography. As an investor, you can help assist companies to develop a more conscious attitude to animal, environmental and human rights, as well as aid companies in the development of products that save the environment. The majority of ethical investors invest money in funds for children, especially their own children, hoping for an improved world for their children and grandchildren to grow up in.
Finding ethical companies to invest in
The best way to find out about ethical companies to invest in is by researching online or through company literature. Many companies today have made their information and business practices publicly available for the citizens around the world. But surprisingly enough, not all companies make their information so accessible to the general public, and therefore it can be difficult to tell whether the company is ethical or not.
However other companies, such as Amnesty International, Ethical Investment Research Service, Greenpeace and the World Trade Organisation can assist you with finding information on the right companies to make an ethical investment. The Ethical Investment Research Service, for example, has identified key selection criteria for choosing a business practice to invest in and how the businesses can impact on human and environmental rights.
Advice from an IFA
The best advice before making an ethical investment to speak to your independent financial advisers, who will be able to give you guidance on buying shares and whether it is ethical or environmentally friendly to be classed as an ethical investment. However, as great as this sounds, making an ethical investment can be very time-consuming and costly, which is why employing an independent financial adviser to help recommend an appropriate fund is the best course of action.
For a free initial investment consultation and review, click here to speak with an independent investment advisor.
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