Robo advisors are an easy and simplest way to take advantage of conscience-based investing called socially responsible investing. Many of the companies have listed top Robo advisors for socially responsible investing on their platforms.
The robo advisor in the 21st century has swept the investment world because they have been creating a number of very specific investment niches.
One that’s been on the rise in recent years- works especially great with the best robo investment platform– is SRI.
Now, let’s understand what is socially responsible investing or SRI?
SRI centers on investing in companies that run businesses with products and services that are socially desirable. It isn’t about investing strictly for social benefit, but rather investing in companies engaged in SRI that represent unbelievably profitable investments. These can include areas like clean energy, affordable housing ownership, or improved human health. Socially Responsible Robo Advisors play an important role here if anyone wants to do SRI.
Socially Responsible Investing also works to exclude certain companies or industries engaged in products or services that are deemed socially harmful. These can include tobacco, metal mining, hazardous waste, weapons manufacture, gambling, or adult entertainment.
SRI also involves Environmental, Social, and Governance (ESG) considerations. Environmental centers on global climate change, renewable energy, and sustainability. Social focuses on diversity, labor relations, and conflict minerals. Governance relates to management structure, board independence and executive compensation. It refers not just to what companies perform, but how they’re run.
Why Robo advisors or Robo investment companies are perfect for SRI?
Being an individual, it is extremely difficult to develop a portfolio comprised of SRI-compliant companies. There are companies that are 100% compliant. What SRI attempts to do is to invest in such companies that are highly adaptable than the industry average. As well, these companies being so diversified with both product lines and geography, so for an individual investor, it can be often difficult to identify the most reliable and trusted companies.
You will find mutual funds based on SRI investing for decades. But top Robo advisors in 2021 offer investors an opportunity to invest in a portfolio of individual stocks that generally meet all the socially responsible investing requirements. In fact, expert’s recommended having a complete balance portfolio with a Robo investment platform that offers an SRI investment service.
As well, experienced and expert robo advisors offer the same benefits on SRI portfolios as they do with general investing portfolios of investors. The process included investment asset allocations, rebalancing your portfolio, reinvesting dividends and managing it all at a very low fee. Some of the top financial advisors in Massachusetts also offer tax-loss harvesting, which is an investing strategy designed to lessen the tax liability created by capital transactions.
If you are an investor looking for the best ways to invest in an SRI portfolio, you can open an account by hiring a Robo advisor which meets SRI criteria that will be fully managed for you. All you need to do is fund your investment account!