So, I really want to do some socially responsible investing. I have some money I can use for it, and it seems like a good thing to do. The only problem is finding a good fund. I looked at a number of funds, and they all more or less seemed to have two problems. First, they had high expense ratios. Now, I am willing to have a higher expense ration than I would have in your boring old traditional index fund, but they were pretty much all quite high. Those that were not high were funds that were not rated highly. This is a socially responsible investment I am going for. I already donate money (although I am not good at systematically donating all of the money we set aside for donations). However, if I am going to invest my money, I want my investment to have a decent performance (not necessarily stellar, but at least decent).
However, I could swallow all that if I felt that these funds really fit my desires for a socially responsible investment, but they do not. Most of the socially responsible funds I looked into were socially responsible by virtue of avoiding vice industries and making sure that the companies they invest in have good labor and environmental practices. Now, these are good things (well, I actually do not care about the avoiding vice industries part, but watching the labor and environment practices is good). However, when I do socially responsible investing, I want to invest in something that actually has impact, not just a more virtuous version of the same old same old.
What actually fits my desires perfectly is microfinance. It is something that actually makes a differece in the lives of those who are in need while still being an investment. However, none of the microfinance organizations I know about is suitable for a small scale investor like myself. For example, Grameen bank requires, amongst other things, a $50,000 minimum investment to invest in the bank. It is going to be awhile before I have enough money invested that I am willing to invest that much in one place.
I will keep my eye out for other investment opportunities that fit my criteria, but I sure wish it were not so difficult.
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kitty_tape- Erika Rice Scherpelz
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- Jux
One thing they note is that a big part of what they do is not just avoiding vice and prioritizing companies that have good labor / environmental / etc. policies but going to shareholder meetings and making proposals. Apparently socially conscious motions from non-trivial (but still not massive) shareholders have a better chance of success than you'd think - perhaps this is because they can be crafted to play off guilt that other shareholders usually deal with by not thinking about the issue, but whatever.
I realize that this is not quite the impact / not just the same old angle that you are looking for, though.
but I have no idea what it was called or where to find it again. :-(
Thanks, Google! www.kiva.org
I've been following this area for about forty years and also have a site that would be of help to you. It covers the latest global news and research on socially responsible investing (SRI) as well as offering a variety of services for small SRI investors. It's at www.investingforthesoul.com (http://investingforthesoul.com/)
Good luck and best wishes, Ron Robins
I'm just trying my best to help.
"Hello, I am so-and-so. I came across your post when something-or-another." This provides context for your presence. You then follow this with your actual point, but phrased in a polite way so as to show that you are aware you are a guest in this conversation without the full bluntness rights that come with being rightfully in the conversation.
Anyhow, I have enjoyed reading your posts which often contain good ideas about being green and socially responsible; however, I believe it is a mistake to limiting your investments to "ethical funds" for the reasons I stated above.
However, what I want is to find a fund that invests in companies whose primary concerns have to do with social responsibility. This is partially because it is a good thing to do and partially because, with the widening recognition of for-profit social investing and concern about developing environmentally positive products, I believe that there is potential for growth in these areas.
And I want a fund because I am lazy. =)
In the long run, I would prefer more direct and influential investing (e.g., being a direct investor in Grameen bank), but until I have a fairly large portfolio, I will not be able to invest in such an institution and keep my portfolio balanced.
Also, I have figured out why your original post bugged me so. It was the phrase "I'd rather see you" which displays a degree of intimacy that did not seem warranted.
Sorry about that. I should have wrote "I’d rather see people […]". I guess part of the problem is that I’ve been reading your blog for a year or two which has lead me to feel familiar with you without you being at all familiar with me. I think this sense of familiarity on my part is increased by your informal and personal writing style (which is, of course, the natural format of a blog), as opposed to say how I might feel after reading editorial column for a year or two.
I will try to be mindful of this in the future.
PS oops, I screwed up the formatting by hitting submit instead of preview. Sorry.
But now I "know" ya. =)