socially responsible investing - balancing social values with financial goals

SOCIALLY RESPONSIBLE INVESTING - BALANCING

SOCIAL VALUES WITH FINANCIAL GOALS

In recent times, there has been a growing interest and curiosity in the concept of

‘socially responsible funds’. This has lead investment companies offering mutual funds and similar financial products to

grow their portfolios to better serve their clients.

As a way to keep abreast of changing investment habits, as it relates to social values, investment companies recently

surveyed potential clients. The majority of the responses were from women and people under the age of forty-nine. These responses indicate that investors believe having choices to be socially responsible in their investments

is important.

Traditional core tenets still remain the standard, such as to increase long-term

profits through positive customer experience, and incorporate high ethical standards. However, the new socially responsible investor is looking for corporate social

responsibility strategies that go beyond the standard. Investors are looking for

companies that have a proven positive social impact on consumers, employees, and

communities. Socially responsible investing is any

investment strategy that seeks to consider both financial and social return.

Investing based on social ideals is gaining ground. In the United States, at least $7

trillion is invested in strategies focused on the environment, social and corporate

governance or values, according to Envestnet PMC. That is up from $639 billion

in 1995 and $3.7 trillion in 2012.

PUTTING INTO A SOCIAL CONTEXT

Fund offerings may differ widely. It is up to the investor to do their due diligence and investigate

the social practices of the company they are looking to invest in. Over the long-term, these

practices may impact the net return on investment, sustainability of the fund, and whether

the company practices the level of social responsibility the investor is looking for.

There are often social tradeoffs when it comes to corporate social practices. A company

may invest heavily in emission controls at the cost of worker wages or benefits. Some new

technologies that purport to be a more environmentally sustainable, or friendly, actually consume more energy or deliver more waste in product development than

what is predicted to benefit society.

In the matter of socially responsible investing, investors often seek companies that share similar values, but similar values don’t always translate

into equal comparisons. For instance, comparing a company in the financial sector with a company in the manufacturing sector, with the same yardstick,

will not lead to an accurate appraisal of the company or to sound socially responsible

investing decisions.

LEVEL OF SOCIAL RISK VS RETURN ON SOCIAL

INVESTMENTMatching funds with investor expectations needs thorough examination. As a socially

responsible investor, setting limits on exposure, or risk tolerance is important. A socially responsible investor may wish to

invest in funds that have strict environmental standards; however these

standards may differ from country to country where the company is located. Is the investor okay with this varying degree of exposure or varying degree of positive

social impact?

For more information visit our website:- http://www.trikletrade.com/

Business Details:-Contact Person:- Syann StevensBusiness Name:- Trikle Trade

Business Email ID:- info@trikletrade.com

Business Address:- P.O. Box 1976 Missoula, MT 59806