Why it is important not to put the cart before horse

– remember your objectives

I feel a little guidance is required for those seeking to invest in an ethical way. In my experience some people are focused only on the investment and not on their personal financial objectives. In our experience too many people pursue the ‘ethical investment’ before questioning their objectives. Doing this can produce disastrous results.

Let me explain what I mean, if you are saving your surplus income or investing an inheritance or other capital, you must first ask yourself a number of questions

• what do I want to get out of this investment?
• when do I want the money?
•  how will the outcome improve my life?
• How important is it to keep the investment safe?

The first step is to answer these questions, because the answers will determine what type of investments are best suited to you, your needs and objectives.

When you have decided on the type of investment you need, then and only then do you need to turn your attention to finding a produce which will suit your ‘ethical investment style’

For those with very little spare income to save, selecting an ethical fund, as your investment choice for your workplace pension is a good starting place for a budding ethical investor.