Why The Investment Decision Is Financially Sound

1854 WordsMay 23, 20168 Pages
How to invest ethically:- It is very important to research completely about the company before investing .Company’s history & finance must be reviewed to decide if the investment decision is financially sound. Besides focusing on financial return, which is just one of the various aspects of ethical investing, one must see how much company is committed to do ethical practices. Thus companies ethics and investment performances- both must be examined clearly. Talking about company’s ethics—Every corporate website highlights a section on ‘sustainability’ these days. However it is difficult to decide as to how much to believe of what has been read. Is the company truly justifying “sustainability” or is it just a strategy towards building public…show more content…
Such information is often seen in the websites of companies, but sometimes they give such information to promote its positive image. So investors must verify all information’s from reliable sources like news articles, journals etc. and not just rely on the website. To add more to it, if one is an angel investor or a direct investor in small cap businesses, information about the owner’s plans of the business for the upcoming years and his credibility must be known. One must also explore the possibility of the right to participate in planning the future affairs of the company. If the task of making investments is entrusted to a service provider one must check the background and the reliability of service being provided to have some idea about the investment performance. Gaining exposure towards ethical investing:- There are a number of ways to invest while maintaining ones moral & ethical values.  One may select from number of SRI mutual funds available in Canada & U.S.  One may consider investing in SRI Exchange Traded Funds (ETFs ) such as i-shares Canadian Jantzi social index fund (TSX:XEN) in Canada and KLD 400 social Index funds(NYSE:DSI) in the U.S..  Investors may also invest seeking the guidance of the research firms that compile ESG ranking of the companies. Most ethical fund managers include a combination of the two approaches (positive and negative
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