July 24, 2012
Do Your Investments Match Your Values?
Investing isn’t always about the profit motive.
More investors look for companies that align with their social conscience, before parting with their cash.
“Impact investing is to invest to match your values,” says Consuelo Mack, anchor and managing editor of Consuelo Mack WealthTrack.
Socially responsible spending now makes up 12 percent of U.S. investments.
You know all about traditional investments, but how can you make a difference with your cash?
The idea is to selectively invest in companies that share your principles. Most importantly – impact investing is not charity. Receiving a healthy return for your money still remains the main objective.
In fact, profit making is quite likely when you stock-pick with a conscience. The projected growth of these funds are much higher than conventional investments, Mack adds.
About 25 years ago, shareholders started choosing companies they didn’t want to own, like tobacco or alcohol. The modern version of impact investing? A proactive choice to spend on companies investors do agree with.
Mack sees increased shareholder interest in organizations concerned with the environment, and treat employees well through diversity and training programs.
How do you decide which stocks align with your values? Mutual funds rating firms like Morningstar track socially responsible investing, so you can stock-pick to best suit your investing goals.
Bonus PINK Link: Want more on impact investing? Read our Online Exclusive!
Do you consider whether your investments will make a positive impact? Tell us.
By Shaina Ali
“I realized I actually had a choice in what I could believe.” Kathryn Stockett
*Supporting images from FreeDigitalPhotos.net, jannoon028, and creativedoxfoto