Portfolios with Purpose
Portfolios with Purpose refers to investment portfolios that are designed to achieve both financial returns and positive social or environmental impact. These portfolios often focus on sustainable investments, such as companies with strong environmental, social, and governance (ESG) practices, or impact investing, where funds are directed towards projects that address societal challenges. Investors in these portfolios aim to align their values with their financial goals, contributing to causes they care about while seeking competitive returns.
Example
An investor creates a portfolio with purpose by focusing on stocks of companies that emphasize renewable energy, fair labor practices, and community development.
Key points
• Combines financial returns with positive social or environmental impact.
• Often includes ESG-focused investments or impact investing.
• Aligns investors’ values with their financial objectives.