Looking to invest your money in a way that aligns with your personal values or your views for the future? Socially responsible investing (SRI) makes this possible. But what does it mean, and does the strategy pose an elevated risk to your finances?
Keep reading as we dive into how socially responsible investing works, the potential benefits, and how to get started.
What Makes an Investment Portfolio Socially Responsible?
Also referred to as sustainable investing, socially responsible investing entails investing for a social cause. This could be a cause that you truly believe in or one that is geared toward the greater good of humankind or generally making a difference in the world.
Companies and investment funds deemed socially responsible are evaluated by ESG criteria, which includes environmental, social and corporate governance factors. This makes it easy for investors to identify suitable investment products for an ESG approach.
Companies that are committed to fair pay, environmental sustainability, social justice, and other related themes that are both ethical and socially conscious are typically considered ESG friendly.
By moving some of your core investment portfolio to an ESG themed portfolio like MoneyLion’s Greater Good portfolio, you can feel confident that your money is invested in SRI companies with values you support, while still helping to grow your money. Plus, MoneyLion has already done the work of picking the best ESG ETFs for you!
Are Socially Responsible Funds Profitable?
Just like any investment, there is always some risk involved. But over the past decade, SRIs have grown to encompass around $12 trillion dollars in assets. Based on research from BlackRock Investments, SRI’s are expected to continue to grow and might soon become the new standard of investing.
Not only can you help grow your portfolio by making the choice to specifically focus on SRIs and ESG funds, but you can also have the peace of mind that your money is growing with companies that may change the world for the better.
Building a Socially Responsible Investment Portfolio
You can invest responsibly through index funds, exchange-traded funds (ETFs), or mutual funds.
By opening an investment account with MoneyLion, you can receive a personalized, fully managed and diversified portfolio. We’ll recommend a core portfolio that means your risk tolerance and goals. There are no investment minimums or requirements, and no asset-based management fees.
On top of your core portfolio, you can tailor your portfolio further to invest in socially responsible funds in addition to the core portfolio we’ve recommended to suit your goals and risk tolerance.
This opportunity is afforded to you through thematic investing, which focuses on ETFs that closely align with your investment preferences, goals and personal interests. With MoneyLion, you can choose to invest in a carefully selected set of ETFs aligned to ESG principles. We’ll help you grow your money and save the world!
Investments That Can Better the World
You can sign up for a fully managed account within minutes and start investing the same day. Monitor and watch your investment grow knowing that your funds are being used to support a worthy cause. Let our experts do the research in finding funds that support sustainability, have steady growth, and meet the ESG standards.
If a Greater Good investment portfolio sounds like the investment you have been waiting for, get started today to build a better tomorrow.