How and where can I invest with socially responsible funds?
Posted: Wed Dec 11, 2024 10:13 am
Socially responsible funds, also known as SRI (which stands for socially responsible investment) have become one of the preferred instruments for investors. Their objective goes beyond obtaining an attractive return at a risk adjusted to each profile, offering a differential value: the possibility of investing in companies that take into account social, ethical and environmental values. But how can you invest in SRI index funds? Below, we explain where you can do it.
Table of Contents
SRI funds: a novel investment concept in Spain
How to invest with SRI criteria
Where to invest in SRI funds
Invest in SRI funds with InbestMe
SRI funds: a novel investment concept in Spain
Socially responsible investing is no different from any other type hong kong gamblers phone number data of investment. It actually uses a set of social, ethical and environmental criteria, selecting those companies that meet these requirements and discarding those that do not meet these criteria.
In Spain, SRI funds are relatively new . Although public and political awareness of these issues has been in vogue for many years, the truth is that it had not yet reached the investment community .
According to a study by the asset manager Vontobel AM , Spaniards who invest according to ESG criteria only allocate 29% of their portfolios to socially responsible investment.
However, in recent years, SRI funds have also made a place for themselves in the commercial offerings of financial institutions in Spain . They have the same characteristics in terms of liquidity, security, transparency, taxation and professional management as the rest of the funds.
How to invest with SRI criteria
There are numerous options for investing according to SRI criteria . In general, the demand for SRI investments traditionally corresponds to collective investment institutions, large pension funds, universities, insurance companies and public bodies.
However, there are more and more private investors who are looking for assets , generally through the purchase of shares in companies, that meet ESG criteria as a way to channel their savings and show their commitment and awareness of the environmental and social impact of companies.
The most common strategies are the following:
Exclude from investors' portfolios those sectors and companies that are not very committed to social or environmental issues. These include, for example, the arms industry, companies involved in political corruption, environmental scandals or human rights violations.
Include companies or assets that comply with international treaties, especially in social and environmental matters. Likewise, assets or debt of governments that do not violate these precepts are included.
Include companies that comply with the Sustainable Development Goals (SDG) published by the United Nations.
Select assets focused on a specific sustainable and responsible theme such as climate change, equality and sustainable bonds or water.
Download the socially responsible investment guide
Where to invest in SRI funds
There are basically two options for investing with SRI criteria: creating a portfolio by buying shares and assets individually and through index funds. The first option is to find and buy the shares of companies or government debt that meet these criteria, as well as excluding those that do not.
The problem with this alternative is that you have to find out whether companies meet these requirements or not, which is not suitable for less experienced investors.
Furthermore, it is not always possible to create a portfolio tailored to the needs of the investor , especially for small assets. However, it is a much more customizable option, since all the assets that the investor wants can be purchased.
The other option is to acquire SRI index funds , available from different marketing entities in Spain and other robo advisors. In fact, more and more companies are offering them as part of their commercial offering.
This option is characterized by being a cheaper alternative and follows the evolution of different stock market indices that follow an SRI criterion.
Among its advantages, it is an option that is more prepared for less experienced investors, since there is a management team in charge of composing the portfolio. In addition, its costs are usually much lower, since it is only necessary to replicate the composition of an index.
Invest in SRI funds with InbestMe
One of them is inbestMe , through which you can invest in a portfolio of Index Funds with socially responsible funds (SRI/ESG). Your portfolio will have between 90% and 100% SRI funds depending on your investor profile and invested amount.
All this from €1,000, with high diversification and very low costs , with a maximum management fee of 0.41%. And you can transfer your funds from other entities, whether SRI or not, without any tax impact.
Table of Contents
SRI funds: a novel investment concept in Spain
How to invest with SRI criteria
Where to invest in SRI funds
Invest in SRI funds with InbestMe
SRI funds: a novel investment concept in Spain
Socially responsible investing is no different from any other type hong kong gamblers phone number data of investment. It actually uses a set of social, ethical and environmental criteria, selecting those companies that meet these requirements and discarding those that do not meet these criteria.
In Spain, SRI funds are relatively new . Although public and political awareness of these issues has been in vogue for many years, the truth is that it had not yet reached the investment community .
According to a study by the asset manager Vontobel AM , Spaniards who invest according to ESG criteria only allocate 29% of their portfolios to socially responsible investment.
However, in recent years, SRI funds have also made a place for themselves in the commercial offerings of financial institutions in Spain . They have the same characteristics in terms of liquidity, security, transparency, taxation and professional management as the rest of the funds.
How to invest with SRI criteria
There are numerous options for investing according to SRI criteria . In general, the demand for SRI investments traditionally corresponds to collective investment institutions, large pension funds, universities, insurance companies and public bodies.
However, there are more and more private investors who are looking for assets , generally through the purchase of shares in companies, that meet ESG criteria as a way to channel their savings and show their commitment and awareness of the environmental and social impact of companies.
The most common strategies are the following:
Exclude from investors' portfolios those sectors and companies that are not very committed to social or environmental issues. These include, for example, the arms industry, companies involved in political corruption, environmental scandals or human rights violations.
Include companies or assets that comply with international treaties, especially in social and environmental matters. Likewise, assets or debt of governments that do not violate these precepts are included.
Include companies that comply with the Sustainable Development Goals (SDG) published by the United Nations.
Select assets focused on a specific sustainable and responsible theme such as climate change, equality and sustainable bonds or water.
Download the socially responsible investment guide
Where to invest in SRI funds
There are basically two options for investing with SRI criteria: creating a portfolio by buying shares and assets individually and through index funds. The first option is to find and buy the shares of companies or government debt that meet these criteria, as well as excluding those that do not.
The problem with this alternative is that you have to find out whether companies meet these requirements or not, which is not suitable for less experienced investors.
Furthermore, it is not always possible to create a portfolio tailored to the needs of the investor , especially for small assets. However, it is a much more customizable option, since all the assets that the investor wants can be purchased.
The other option is to acquire SRI index funds , available from different marketing entities in Spain and other robo advisors. In fact, more and more companies are offering them as part of their commercial offering.
This option is characterized by being a cheaper alternative and follows the evolution of different stock market indices that follow an SRI criterion.
Among its advantages, it is an option that is more prepared for less experienced investors, since there is a management team in charge of composing the portfolio. In addition, its costs are usually much lower, since it is only necessary to replicate the composition of an index.
Invest in SRI funds with InbestMe
One of them is inbestMe , through which you can invest in a portfolio of Index Funds with socially responsible funds (SRI/ESG). Your portfolio will have between 90% and 100% SRI funds depending on your investor profile and invested amount.
All this from €1,000, with high diversification and very low costs , with a maximum management fee of 0.41%. And you can transfer your funds from other entities, whether SRI or not, without any tax impact.