What began as a principled way to invest has now been validated as a profitable way to invest.
In fact, sustainable investments deliver a premium to investors.
Financial planning experts recommend the following steps toward building a more climate-friendly portfolio.
“It’s up to firms like ours to educate people – to get people engaged.”
Consider your plan first, portfolio second
Impact investing may not be for everyone.
People who can answeryesmay be in a better position to reallocate their investments towards sustainable funds.
“I would recommend sticking to what is easy,” she says.
Note that sustainable funds may not address a combination of environmental, social and governance issues.
Some may focus exclusively on environmental issues, for example.
And these fees can eat away at your returns over time.
While you may not be able to avoid them entirely, keeping them to a minimum is critical.
If possible, select a fund that charges 0.5% or less.
Lower-cost options tend to have greater odds of success."
“Remember that as investors, we take a long frame.
