What Is Ethical Investment?
Ethical investing is a method where the primary motivation are the moral values of the investor. This allows the investor to choose companies that align with their personal views.
Ethical investors generally select opportunities that are non-controversial, but mostly they are for socially responsible causes. This means that the investment is not only financially lucrative, but also considers the impact on environmental or social change.
Socially responsible investing considers both the values of the investor and the impact on society as a whole.
How to Invest Money Ethically
There are a number of methods investors use to ensure that their investments are socially and ethically conscious. These include:
- Negative screening – checking out a company’s practices or products before deciding to invest
- Positive investing – targeting investment opportunities with companies that have the same values/practices as the investor
- Community investing – investing with a company that works to support the local community
- Faith-based investing – investing in a company that demonstrates the values of a specific faith
If you are looking for an ethical investment, it is recommended that you do your due diligence when researching the type of investment you want to make.
All of these methods help to narrow down the investment that would best align with your values.
Advantages of Ethical Investment
There are many advantages of ethical investment that can motivate an investor.
First and foremost, an investor focusing on prospects that align with their personal values can feel good about where their money is going. Investors are motivated by the desire to do something meaningful with their money. More and more people are choosing to invest ethically, which can only lead to the growth of investments in the future.
As ethical investing gains popularity, it will also encourage businesses to improve their ethical and socially conscious practices, thereby drawing investors.
Some types of ethical investments include:
- Socially responsible investing – avoiding controversial practices
- ESG funds, also known as environmental, social, and governance funds – consider the impact of ESG on company performance
- Impact funds – look to create social change by focusing on specific products and services
- Faith-based funds – fully focused on religious ideals and values
Each of these types focuses on making an impact on society in a positive way to bring about change while also benefiting from the investment.
Modular Home Investment
An increasingly popular way to invest ethically is with prefab home investing.
Providing sustainable rental properties makes good financial sense, because rental properties are in high demand and typically have been primarily funded by institutional investors.
Investing in modular homes has drawn the interest of socially conscious investors due to housing shortages and increased homelessness. It is a small market, in that not many ethical investors have stepped up to invest, but it can prove to be a secure way to see a return on investment financially. In addition, investors are able to see the social impact of their investment as more homes become available to families in need in their own communities.
One benefit of this investment opportunity is the likelihood of income for property renters. Low-income housing is typically funded by the government through subsidy and disability payments, so rental income is not likely to decrease. This makes the property a good investment for buyers and leasers alike.
Why Modular Home Investment?
If the social impact and financial draw are not sufficient to impact an investor’s decision, there is also the green element, as well. Modular homes are widely known to be more environmentally friendly than traditional homes.
The construction costs are significantly lower and have a smaller environmental footprint than other large-scale construction projects, using less labour and producing less waste.
Prefab homes are also more energy-efficient, meaning lower energy bills and less environmental impact.
How to Get Started
Many investors looking for socially responsible investments will partner with another company with similar values.
Concept Capital Group in the UK is a socially conscious company focused on providing affordable housing for those in need. We invite investors to purchase our buy-to-let modular homes as an impactful investment opportunity. Our company handles the building, furnishing, and renting of the home, so all that is left is to collect the rental income.
Through our local partnerships, we are able to make an impact on the community by providing safe, affordable housing options. Because of the low risk and high return involved with modular homes, many investors are turning to buy-to-let ethical investing.
Book a call with one of our investment consultants to learn more about how to begin your socially conscious investment journey.