Sustainability is a real buzzword in the world of investing, and investors everywhere are considering the role of green investments in sustainable, ethical portfolios.
But is this just a trend, or is it here to stay? And should you put all your eggs in one basket by focusing solely on sustainable, green investments? Let's take a closer look.
What are sustainable investments?
When we talk about sustainable, or 'green' investing we are describing buying stocks, shares, bonds or other financial assets in companies and entities that deliver ethical, sustainable or environmentally-friendly business. Examples are businesses that tackle climate change through clean technology development or enhanced equal rights through access to medicine. Other examples could be financial services bringing banking to developing economies, or utility firms developing clean energy solutions. These businesses have a powerful societal impact for good and are by their very nature, sustainable, ethical and values-led - seeking to improve the world in some way.
Should you invest in sustainable investments?
The answer is probably, but it depends. As an investor, you will have your own goals, risk appetite and objectives. You may want to invest in certain industries for reasons of interest and ethics. You may want to invest in others for financial returns.
Today's investment trend may not be the investment that will perform in the long-term for your portfolio - and the stock market is subject to trends like any other industry. We fully support investments in sustainable, environmental and ethical businesses, and we provide the fundamental research needed to make strong decisions about which of these businesses will also perform financially.
At the very least, we always recommend diversifying your portfolio, so that your 'green' investments are well-balanced and designed to perform in line with your goals for growth and/or income over time. The team at Integritas can also provide ideas for investments that align with your own values and interests so that you can discover sustainable businesses, trusts, funds and other asset classes that you might not yet be aware of.
Speak to Integritas for expert support
Our team is here to help you build a high-performing portfolio that matches your values and goals. We always advise our clients to come to us for investment advice before they act. One reason is that many investments are just 'greenwashing' and pretending to be more sustainable than they actually are, purely for marketing purposes. Again, our research services get to the bottom of what an investment opportunity really is, and what it promises.
Keen to find out more? Click here to book a no-obligation consultation with our team.
