A Guide To Ethical Investments
Increasingly people are not only looking for ways to get a return on their money but they also want to know where it is going. This is both in terms of making a positive difference but also in ensuring that their money is not used in any untoward schemes or in anything that they would deem unethical. There are a number of ethical investment schemes out there and today we will be offering an overview of how to check that what you are investing in is ethical and whether or not you should invest in it.
The first thing to look at when considering a company or organisation to invest is their criteria. First of all, there are the positives – they may use your money to help fund renewable energy schemes or healthcare in developing nations. There is also avoiding anything that could potentially be seen as less ethical such as tax avoidance schemes or anything that could damage the environment.
It is also worth considering what your personal criteria I i.e. some people may want to invest in research while others may be uncomfortable if it involves animal experimentation.
Sometimes an ethical investment can be more complicated than it first appears- for example while biofuel is an environmentally friendlier alternative to diesel or petrol some developing countries have set aside crop space to develop the plants for this fuel rather than for food.
Is it all ethical?
Just because a company offers one form of ethical investment it does not necessarily mean that all the companies and projects they fund will also be ethical. As with anything it is important to do your research and to check as much as possible before making a decision (such as getting feedback from previous investors to see their views on both the investment and the company as a whole).
What about the performance?
Of course, while you may want to support a project like renewable energies or new research you also want to be sure that you will get a return. It is important to emphasise that nothing is guaranteed and as with any form of investment it is best to spread the risk and you should never invest more than you would be prepared to lose.
What you can do to reduce the risk is to look at performance tables so that you can gauge for yourself the likelihood of success as this will make it easier to find something that is both ethical but also gives you the best chance of seeing a return.
Talk to us
At Larcomes Financial Services we have the benefit of specialist knowledge, resources and a hands-on customer service approach. We can go over all the options available to you and help develop a portfolio of investments that can be both ethical and spread the risk. For more information please contact us today and we will be happy to discuss your requirements in more detail and help find the right investments for you.