A new year symbolizes fresh beginnings, offering an opportunity to pursue various plans and strategies for success. As you jot down your resolutions for the year, don't overlook your investments. You might be wondering, 'How can I align my investments with my values and interests?' The answer lies in Ethical Investing.

What is Ethical Investing?

Ethical investing involves using personal ethical principles as a filter for selecting preferred investments. Essentially, it merges your moral compass with your investment portfolio, supporting industries with positive impacts, such as sustainable energy projects. It prioritizes what you want to invest in or avoid, a conversation worth having with your investment advisors. For example, Ethical Investors may avoid 'sin stocks,' involved in stigmatized activities like firearms, smoking, or alcohol.

Why Choose Ethical Investments?

Ethical investments carry emotional appeal by meeting your requirements and aiding a company's financial projections. This approach aligns well with businesses that maintain policies preventing toxic work environments, reducing the likelihood of legal issues. Another reason is portfolio de-risking. Companies recognize that addressing environmental, social, and governance (ESG) issues isn't just about reputation but essential for long-term survival. 'Sustainability' here refers to a business or investment's ability to support future returns.

Types of Ethical Investments

Socially Responsible Investment Funds (SRI Funds): SRI funds consider both financial returns and social impact, avoiding investments in controversial areas.

Environmental, Social and Governance Funds (ESG Funds): ESG funds assess financial returns alongside environmental, social, and governance factors, ensuring sustainability without compromising returns.

How to Invest Ethically

Commence by outlining your ethical portfolio, carefully matching potential investments with your specific requirements. Recognize that ethical considerations are subjective and vary from person to person, necessitating a personalized approach. Seek guidance from your financial advisor to make profitable and well-informed decisions. Explore ethical investment opportunities on reputable platforms such as i-invest.

i-invest offers Mudarabah, an investment package designed with Shariah compliance at its core. In simple terms, it involves a partnership contract between you, the investor (capital provider), and the investment manager. Profits from this partnership are shared based on a pre-agreed profit-sharing ratio. Upon maturity, monthly profits, along with the capital, are returned to you in accordance with the agreed-upon profit-sharing ratio.

Remember, ethical investing provides peace of mind, enabling you to align your investments with your values. Ensure Ethical Investments are a vital part of your plans for 2024.