Personal Finance Buzz

In celebration of Earth Day, I want to share my perspective on green and socially responsible investing. The idea of socially conscious investing has been around for a long time, but its popularity soared over the last few years. According to Social Investment Forums: “Socially Responsible Investing (SRI) is a broad-based approach to investing that now encompasses an estimated $2.71 trillion out of $25.1 trillion in the U.S. investment marketplace today.”

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The whole idea of socially responsible investing is that you can grow your money by choosing investments that reflect your values and ideals.

Socially responsible investing is all the rage these days, but does it really accomplish anything or is it just a feel-good scam?

If you are looking to build a strong, diversified portfolio, you most likely purchase financial investments like stocks, bonds and mutual funds. Smart investing involves choosing investments that are secure and have the potential to earn positive returns. Some investors also believe it involves choosing funds that are socially responsible.

One segment of socially responsible investing is green investing also known as sustainable investing. If your financial values dictate that you support companies that engage in green practices, there are ways to invest in them.

In honor of Earth Day, one of the many ways of investing your money is from a socially responsible point of view. Part of being a socially responsible investor is to also be a “green” investor.