Socially Responsible Investing (SRI), Green Investing, Ethical Investing- These terms are being used more frequently all the time, as more investors start to think about these issues when looking for investments and financial planners. We’ll cover what these terms mean, why you should find a socially responsible investment advisor, and how to search for a socially responsible investment advisor or planner here at ClaroConnect.
What is Socially Responsible Investing?
Socially Responsible Investing, or SRI, is a phrase that includes several different areas or ways
of investing. As an example, green investing uses investments in companies that are environmentally friendly. Many alternative energy funds would be considered green. Social or ethical investing looks for companies and/or countries that treat their employees and/or citizens well. Corporate governance involves issues such as shareholder rights over executive pay. Some socially responsible investment funds are designed just to screen out certain industries such as tobacco or weapons. Every socially responsible investment is different, so it helps to have a financial planner or advisor guide you through it.
Why use a Socially Responsible Investment (SRI) or Green advisor?
A Socially Responsible Investment (SRI) advisor is in line with your values and principles. This is important for everyone who wants to find a financial advisor, not just socially responsible investors. You are likely to have a better professional relationship with an investment advisor who shares your common values. Not only are you investing your dollars in the socially responsible investments, but you are helping to support the advisor and his or her business. Most socially responsible investment advisors run their own businesses and lives in a green fashion, and many donate a portion of their profits to worthy causes as well.
Find a Socially Responsible Investment (SRI) advisor to help you reach your financial goals. In other words, why not just buy some SRI funds on your own? The same reason most people wouldn’t do surgery on themselves- you don’t have a very high likelihood of success. A financial planner or investment advisor can help you define your goals, implement a plan to reach your goals, and then keep you and your plan on track through life. In addition, it may be even more important to use a financial advisor for Socially Responsible Investing because of the added complexity and short-track record of the investments in this area. They can help you fit Socially Responsible Investing into a part of your overall plan and show you how it fits, or craft an entire investment strategy to be as much in line with your green principles as possible.
High potential investment return is another reason some investors have been attracted to SRI
and green investment funds and advisors. Some areas of investment like alternative energy are expected to grow quickly. Other themes such as socially responsible and ethical companies are expected to help those companies perform better versus their competition in attracting customers and employees. The track record has been mixed; some studies show that socially responsible investment funds have underperformed, while others show that they have outperformed standard investments. Clearly though, it is attracting more money and more interest.
How do I look for SRI on ClaroConnect?
The first step on ClaroConnect is to go to the home page and select the service you are looking for such as financial planning or portfolio management. Then on the next page, you can choose specific criteria you are looking for. In the button labeled “Custom Search”, you can type in “SRI”
or “socially responsible” to find advisors who have those words in their profile. You might have to try a few different phrases to find more advisors. Once the search results come up, you can view the profiles and learn more about those advisors to find a socially responsible investment
advisor to contact.
