Socially Responsible Investment through International Index Funds

Socially responsible investment funds can provide good ways to use your money to further a cause. You can invest in many international index funds that have this kind of objective. Here are a few things to consider about socially responsible investment in international index funds.

Growth Potential

One of the biggest advantages of investing in this type of security is that you have massive growth potential. When you put money into a foreign economy, there is a chance that the economy could grow substantially. Often, you can get involved in a market that is just getting started with its development. When this happens, every company within nearly all industries is going to grow substantially.

Risk

Even though this type of investment has massive potential, you also need to be aware of the risks involved. If you have to convert your dollars into a foreign currency before you can invest, which is often the case, you are going to have currency risk. If the exchange rate fluctuates while you are investing, you could lose part of your return when you cash out. There are also social and political factors involved when you are investing in a foreign country that may challenge the strength of your investment.

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