What makes an investment ethical
People want their money to work hard to deliver the best possible return on their stake. There are many ways that people can grow their money, from traditional savings and ISA accounts to more diverse investments such as commodities.
Current times are quite challenging in terms of what investments actually do provide a decent return on customers monies, and many people are turning to ethical investment opportunities.
What is an ethical investment?
An ethical (also known as Sustainable) investment is an investment that not only offers a good return on the clients money but also helps the planet. This is done by investing in commodities such as timber, where plantations are created and harvested over a designated period of time. These opportunities often come with social and environmental objectives. They can provide jobs to communities whilst creating sustainable fuels and forestry for years to come.
Why should you chose an ethical investment?
Investing money is all about getting a return at any cost. Ethical opportunities are different in that respect. Ultimately the end goal is getting a return on investment, but alongside this investment you know that the money is being put to good use in both a socially and environmentally responsible way. By choosing an ethical investment you can be sure that your money will be put to use in a way that will also help the environment both now and the foreseeable future.
What are the risk of ethical investments?
There are always risks in any investment and ethical opportunities are no different, however they do tend to often perform well under poor market conditions. It is important to note, however, that an ethical opportunity might have a higher risk profile than other investment opportunities where a companies activities are more mainstream.
What types of ethical investments are available?
There are many different types of sustainable opportunities available to people who are serious about socially responsible investments. These can range from Forestry and Farming to alternative energy sources and eco-housing.
Before you embark on any type of investment, be it ethical or not, you should always seek guidance and where possible have a look at how the market has been performing over a period of time. Sustainable investments can offer a very high return on your investment, but as with any investment there is an element of risk involved. In some cases the element of risk may be higher in an ethical investment than in a non-ethical option so you should always research the market prior to departing with your hard earned cash. You should only ever invest what you can afford to potentially lose.
Sustainable investments can provide you with a high return on your money, whilst also helping to build a sustainable planet.