Conscious Investing

Socially Responsible Investing provides a mechanism for investors to align personal values with investment objectives by investing in companies with strong environmental, social and corporate governance conduct. This type of investment strategy may help to provide important societal or environmental benefits through companies with a focus on effectively utilizing environmental resources, fostering safer working conditions, or improving corporate governance.

It’s important to note that socially responsible investing doesn’t mean you have to settle for lower returns while simultaneously supporting causes you care about. After examining performance data for 10,228 open-end mutual funds, researchers found that investing in sustainability has usually met, and sometimes exceeded, the performance of comparable traditional investments on a risk-adjusted basis, across asset classes and over time.

As you learn more about this topic, keep in mind, the term socially responsible investing is often used interchangeably with “sustainable investing,” “responsible investing,” and “impact investing.”