Socially Responsible Investments Gaining Momentum
With the recent Wall St protests, going on, socially responsible investments might start becoming a topic that is discussed by some in the near future.
The goal of many socially responsible investments is to basically match their own personal values with the vision and mission of a publicly traded company.
To make the picture a little clearer, when purchasing individual equities, some socially responsible investors who lean to the political left, stay away from nuclear stocks for instance. While many socially responsible investors who have more right wing views might steer away from investments that specialize in stem cell research.
In other words socially responsible investments can fit investors of any political persuasion, depending on your view of the world.
Investors can also invest in socially responsible companies through mutual funds, if they are not comfortable buying individual equities.
The purpose of this entry is not to debate the pros and cons of socially responsible investments. We are just trying to guide you on a few points.
Socially Reaponsible Investments Have Fewer Lawsuits
For instance those who run these types of mutual funds have a screening process and often lean left because of the future prospects involving green technologies. They stay away from gun and tobacco stocks and companies that are more prone to having environmental issues like chemical and nuclear related names.
The returns of some socially responsible mutual funds are up for debate. Advocates of socially responsible investing often point out that there is usually a larger chance for lawsuits in less socially responsible companies. While skeptics point out that companies that favor values over growth, often miss opportunities which can hurt profitability.
Just keep in mind that we are nearing an election year and the country is becoming more polarized than ever,so stay tuned for some individual highlights on socially responsible investments.
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