Ethical Investing vs Mainstream Investing: Which is right for you?

financial empowerment personal finance money matters financial wellness ethical investing
Written By Caitriona Ellis

In the world we live in right now, deciding where you invest is not straightforward. It all really comes down to your values and your priorities and whether meeting those needs a trade-off or not. No black and white on this, but Caitriona shares her wisdom on how she decided the best path for her and how there isn’t just one solution. You have options. Watch the short vlog here for some inspiration.

https://youtu.be/bSQYf1ZRU14

And in this week’s vlog, we’re going to talk about the idea of ethical investing versus mainstreaming investing and which is right for you and how to figure that out. So it’s a question that I’m asked on a regular basis. And again, I’m going to give an answer that really is not black and white. And I think as usual, it is very personal choice.

So I’ll outline to you how I made my decision and how when I’m asked that question, the answer that I give. So to me, it’s a question that I explored at the very beginning. And it was when I started to explore it a little bit further, became quite clear as to what the key parameters were and how I could easily make the best decision for me and my investment path.

So there are, without a doubt, funds out there if you’re looking at your equities and property also in terms of ethical investments. What you’ll tend to find in my experience is that whilst they are there, they tend often, um, from the ones that I’ve found to have lower returns. Sometimes they’ve higher charges and there is not as much choice as there are in the mainstream investing space.

So there are options out there. If that is something that is of huge importance to you in terms of your values, then you certainly have options there. I would talk to family and friends in terms of people in your circle already who have made choices in this space in terms of recommendations for funds that really work very well, um, and tick, tick boxes in terms of ethical investing.

My approach to it is slightly different. And whilst I am a big proponent of ethical investment, I have come to the conclusion that because of the parameters I’ve mentioned in terms of there are less of them available, the costs can be higher, the returns can be lower, I can have more of an impact on the world if I choose to go the mainstream investing way.

So I have a greater choice, I have lower costs, and I have higher returns. And with the money that I make from those choices, I then have greater wealth to impact the causes that are close to me and to my heart. And this is really a case of making a decision on this that is aligned with your values and what’s important to you in your life.

So it is a case of weighing up one side versus the other. So if it is a topic that really is of huge importance to you and I, I know women that I work with and women that are in my own community in this space who it is non negotiable that they will only invest in ethical investing funds and that’s fine and that works really well for them.

And Equally, I have other women who feel that they can do, make more of an impact if they go the mainstream route. So it’s really about weighing up one versus the other, and I would research both if this is something that’s coming up for you. And it’s coming up more and more, I’m hearing the question being asked, which is why I decided to do a vlog on this.

Because I think when we started to discuss these types of topics, it, Makes it easier for us to validate our questions that yes, absolutely. This is a perfectly acceptable question to ask. And it’s one that when we air, we can tease out in our own minds as to which of those options or hybrid both works best for us.

And maybe a hybrid is the best solution for you. So maybe it’s a case of you have one foot in mainstream investing, and you also have a portion of your investments going towards ethnic investments. And maybe that’s the best solution for you. So again, I’m going to ask you to tap into your, your own individual intuition instinct on this.

What is the best solution for you. In this scenario, and if you’re somebody who likes to look at numbers on it, then lay that maybe on a piece of paper or on a spreadsheet and figure out which avenue looks like the best option for you if you want to make that decision with, with on a numbers basis. If you are more heart led, then I would take this idea on a walk, on a swim, on whatever kind of activity allows you to tease this out best in the shower, going to bed, on a meditation, whatever it is.

Take this idea and really sit with it and see which option suits you or hybrid in terms of finding the best solution for you. So I hope that this content was thought provoking as has hopefully answered some of your questions has given you some food for thought and some ideas as to how you can come to a conclusion to find the solution that best works for you and understand that it’s irrelevant what your neighbour or family or friend is doing.

The solution for you to this question is bespoke to you and you finding that solution that is aligned with you and who you are and what you’re about is the absolute perfect solution. And that may be very different to mine. It might be quite similar. It doesn’t matter as long as it is a perfect fit for you.

And also to bear in mind that The solution that you find right now, it may evolve and you may decide down the line that you can switch that around and you can change that on a regular basis, you know, in terms of the equity investments, it allows you to change it on a monthly basis. So you can alternate your months, maybe you have a month of ethical investment, maybe you have a month of mainstream investment, you switch it up on a regular basis, or you have a couple of streams, like I said, so.

There are a mountain of ways that you can approach this, so tap into your own intuition on this and see what is the best solution for you to this question. As always, please feel free to share your comments, thoughts, questions, queries around this below or on social media. I’d love to hear your aha moments from this, your takeaways and what are the actions that you’re going to enact as a result of this.

To Your Financial Wellness,

Caitriona

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