Despite how many options are out there and how they’re growing, there are still misconceptions about what it means to invest responsibly. Maybe you’ve heard a lot of this information and are wondering where to begin with your investing. Let Falcons Rock Impact Investments sort through the noise and help you figure out what’s fact and what’s fiction in the world of responsible investing.
Fiction: Responsible Investing Doesn’t Appeal to All Investors It’s a common myth that responsible investments are too narrow to have wide appeal, but that’s simply not true. A lot of modern investors would like for their investments to have not only competitive returns, but also positive social or environmental outcomes, suggesting that these two ideas aren’t mutually exclusive. Also, responsible investment interest—and therefore assets—is growing as responsible investing becomes a more popular option.
Fact: Responsible Investing is about Including, Not Just Excluding, Companies In the past, socially responsible investing was a matter of excluding controversial companies or even countries from a portfolio, commonly weapon, tobacco, or alcohol manufacturers. Now, however, responsible investing is growing and evolving. Now, you can apply positive criteria to companies and funds across a variety of industries to seek those that align with your specific goals, causes, and beliefs while having a measurable concrete impact. While diversity is a good idea, it’s more possible than ever to create a portfolio that reflects those specific issues that mean a lot to you.
Fiction: Responsible Investments are Charity Donations While Falcons Rock Impact Investments believes that charitable causes are important, responsible investing is exactly that: an approach to investing. It involves using criteria to ensure that your money has the best chance possible of returning your investment, but doing so in a way that fits your risk profile while also supporting causes you believe in. Donations are one-time or occasional contributions; investments are long-term plans for the company as well as the investor.
Fact: Responsible Investing Doesn’t Sacrifice Performance Over Time There is a certain amount of risk involved in any kind of investing, but investors wouldn’t put their money into something that doesn’t offer financial returns, and neither should you. Responsible investing can perform as well as traditional investments, but have the added benefit of social impact. Companies that care about responsibility and their impact are willing to change and adapt, which gives them a better chance of succeeding in the future.
Fiction: Large-Cap Stocks are the Only Way to Responsibly Invest Responsible investing isn’t as narrow of a field as it once was. Now, no matter who you are, what asset classes you’re looking at, or whether you’re in the private or public market, there are options that fit your needs. Now that there is a lot more environmental and social pressure on companies, meeting challenges has become important in a variety of industries, meaning that no matter where you look or your style of investing, there is probably something you can comfortably invest in.
Fact: Falcons Rock Impact Investments Can Help You Invest Responsibly No matter who you are, you can contribute to investments that can have a meaningful impact on the future. Falcons Rock Impact Investments believes that money can make a better future when it’s invested in the right things, and we screen all of our funds to be as sure as we can be that there are returns for the world as well as your wallet. Today it’s very possible to put your money where it counts, even if you’re a first-time investor who doesn’t know where to look. Let Falcons Rock Impact Investments help you get started today and invest responsibly.