Common Trading Approaches in Socially Responsible Investments

Socially responsible investments can provide you with a great way to use your money to help society. At the same time, these investments can be very profitable. Here are a few different trading approaches that are commonly used in socially responsible investments.

Value

Many investors utilize a value approach to investing. They will try to locate stocks that are undervalued in the marketplace. They will then invest in these companies in hopes that the market value will catch up to the actual value and the investor will make a profit.

Growth

Another common strategy involves trying to find socially responsible companies that are poised for growth. By investing in these companies, the investor hopes to realize superior capital appreciation on his or her investment. In order to identify these companies, you have to look deep into the financial statements of the company and find growth patterns.

Dollar-Cost Averaging

Another investment approach that you might try with socially responsible investments is dollar cost averaging. With this strategy, you are going to devote a certain amount of money to be invested at regular intervals. By doing this, you are going to be able to lower the impact of market fluctuations and build a nice portfolio.

blog comments powered by Disqus
Scottrade