Responsible investing is a lot like conventional investing. You need to know things like:
What are your investment goals? Examples include a retirement plan or college savings plan – and for most Americans, these plans represent the largest investments of their lives.
How much can you afford to invest each month? Even a small amount invested regularly adds up to big money. Why? Because you are investing in a market with an average return of 10% each year. That means just $25 invested each month for 30 years could turn into almost $50,000!
What is your risk tolerance? Some years are great for your investments, and some are terrible – but history shows that even after big dips, the market has recovered and grown. How much can you stand to lose in a year? This may change as you get closer to retirement.
Responsible investing takes all these considerations into account but overlays another set of information: environment, social, and corporate governance (ESG) factors.
The purpose is to both generate long-term positive financial returns and create positive social impact.
Responsible investing can be done for all investment types, such as:
- Mutual Funds and exchange-traded funds (ETFs)
- Loan Funds and Retail Notes
Click on the boxes below to learn more about responsible investing:
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