Sustainable Investing
Do you know what “sustainable investing” is?If the answer is yes, congratulations! Clearly, you are well informed; if not, I’m here to inform you…
The term “sustainable investing” describes a variety of investment strategies that seek to maximise long-term financial gains while promoting sustainable solutions and outcomes.
Lets discuss the importance of sustainable investment, the various types of sustainable investing, and how to invest responsibly with any financial institution that is designated/claims to offer options in
sustainable investment strategies.
Sustainable investing can employ several approaches and go by various names, including:
- investing in the environment
- society, and governance (ESG)
- ethical investing, impact investing
- values-based investing
- green investing
- conscious investing
These techniques differ significantly from one another. Make sure you comprehend how a sustainable investment is evaluated and whether it complements your aims and financial targets before you invest any money.
Why is sustainable investing important?
Since no investment’s success is 100% guaranteed, according to research, the performance of sustainable funds is much better compared to non-sustainable funds. Today, the financial market is evolving into investing in best-in-class mediums and creating a positive environmental impact. Multiple studies confirm that sustainable funds are as profitable as conventional ones, if not better.
Is sustainable investing right for you?
Investors (both professionals and non-professionals) are purposely putting their money into sustainable investments to help them meet their financial goals.
Environmental, social, and government (ESG) issues can affect share prices, and taking these elements into account in your investments could help increase investment resilience and deliver impressive long-term capital growth over time.
Would you like to invest your money in sustainable investment options out there, and what is your experience?
I hope you enjoyed the read. Would love to hear from you…
Reference:
www.ft.com. (n.d.). Subscribe to read | Financial Times. [online] Available at: https://www.ft.com/content/2714da14-c12d-46b2-8ecf-9aba3f665fdf.
