Ethical Investing: A Guide to Making Profit with Purpose

Ethical investing isn’t just about growing your wealth; it’s about aligning your investments with your moral compass. This approach allows you to support industries that promote positive changes like renewable energy and sustainable practices, while still aiming for competitive investment returns.

If you’re looking to invest with purpose, here’s how to determine if ethical investing is right for you and how to get started.

What is Ethical Investing?

Ethical investing involves selecting investments based on personal ethical guidelines and the potential for financial return. This strategy supports industries that contribute positively to the world, such as clean energy and ethical labor practices.

However, it’s important to recognize that “ethical” can vary significantly between individuals; what’s considered ethical to one investor might not be to another. Proper financial planning is the key.

Can Ethical Investments Be Profitable?

Yes, ethical investments can be profitable. Historically, the performance of ethical funds has often matched or even exceeded that of traditional funds. Although investments labeled as “ethical” might carry higher costs initially, these expenses have generally decreased as ethical investing becomes more mainstream.

Getting Started with Ethical Investing

Starting your ethical investment journey can be straightforward, especially through avenues like:

  • Superannuation: Many super funds now offer ethical investment options, which might be an easy starting point if you prefer not to invest direct savings.
  • Investment Platforms/Managed Funds: These can offer a broader range of ethical investments, suitable for those with specific ethical criteria in mind.
  • Exchange-Traded Funds (ETFs): ETFs provide an easy way to invest ethically, though investing your own savings and considering after-tax earnings is crucial.

Before diving in, it’s vital to look ‘under the hood’ to ensure your wealth creation strategies truly align with your ethical preferences. This might include checking whether the fund invests in industries you oppose, such as tobacco, animal cruelty, or fossil fuels.

Why Choose Ethical Investing?

Ethical investing gives you the power to support companies that reflect your values. Whether you’re passionate about environmental issues, social justice, or corporate governance, ethical investing allows you to contribute to these causes financially.

Need help with smart investments? Let an expert financial advisor guide you through your journey to financial management!

To find out if our strategies are right for you, feel free to contact 360 Financial Strategists online or on 03 9427 0855.