How to Try Socially Responsible Investing

Socially responsible investing is a new hit on Wall Street and it is for a good reason. Investors all want a chance to invest in alternative energy and all kinds of things that will help our environment while still making a nice profit in their investment portfolio.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Knowledge of alternative energy sources
• Understand what is an ethical investment
• Research how socially responsible a company is.
• Find socially responsible mutual funds.

1. 
   Make a difference around the world!

   Socially responsible has a whole lot to do with you wanting to make a difference in the world. If you want to help the economy and the overall world go green, becoming a socially responsible investor is a great way to do so. There's nothing holding you back except the desire to get it done!

2. Ethical investments are very important to many people, because this world needs to understand the meaning of ethics and being responsible. If you are looking to conduct ethical investing, also known as sustainable investing, you'll need to find ethical companies or mutual funds to invest your hard earned money in.

3. 
   Looking for a mutual fund?

   The single easiest way to go about investing in a socially responsible way is to find a socially responsible mutual fund that does the work for you. What are there guidelines for determining what an ethical investment is? It varies by mutual fund so you'll want to get on the company's website or read their prospectus. Socially responsible investment funds, or green funds, have proven to be very successful while still helping the environment.

4. It is certainly possible to try socially responsible investing on your own without the help of a mutual fund if you feel you ready. The first thing I suggest you do is do some solid research on socially responsible companies and socially responsible corporations. In 2008 Fortune ranked the top 10 and bottom 10 companies based on social responsibility and their commitment to the environment. I have listed this in the resources section below. Use this kind of research as a starting point.

5. 
   Have a great green investment idea?

   Do your own research looking for alternative energy investments that you believe could be the next big thing in the movement to go green. In the last couple of years people have started to catch on and the movement is clearly growing, so looking out for smaller companies that have a socially responsible attitude and a product that will help the environment could be very profitable.

6. 
   Remember to do your investment homework

   Finally, always remember that you are still after all committing your capital to this investment so make your investment research thorough as well. Since there are so many socially responsible investment opportunities out there you don't need to settle for something that won't help your bottom line. Filter out those companies who aren't socially responsible, find those who are, then do your investment research!

Tips & Warnings

• Solar energy investing, fuel cell investing, wind power investing, nuclear power investing all fit into the green investing category.
• Green investing is just starting to get big, so get in before everyone else does.
• Be careful not to take the advice of others over the Internet on specific stocks, since the green investment area has become a place scammers like to target.

Resources

• http://money.cnn.com/magazines/fortune/mostadmired/2008/best_worst/best4.html

[xivyisazombiex]

on 10/14/2009 research is key. Do not make haste decisions. well written article.

[xivyisazombiex]

on 10/14/2009 research is key. Do not make haste decisions. well written article.

[Susanh]

on 10/14/2009 Excellent information that even people who aren't stock-market-minded can understand. 5*****