Everything You Should Know About Investment Portfolios

What is an investment portfolio?

An investment portfolio is a compilation of investment opportunities usually managed by an investment advisor and focused on a specific theme. Portfolios are sometimes linked to a basket that holds a variety of assets, including stocks, bonds, cash, and more. For example, you have exchange-traded funds, mutual funds, bonds, real estate investment trusts as part of your investment portfolio. 

The key to building an investment portfolio is making sure your portfolio is diversified. This means you should be allocating your money to a variety of assets. This will help to ensure that you will be resilient against risk and you are not putting all of your eggs in one basket. Additionally, it will help you to maximize your return on your investments. It is important to keep in mind that there are many different ways to diversify your portfolio. However, you are in the driver’s seat. How you choose to balance your portfolio is up to you.

You can manage your portfolio yourself or hire a company to do so. Hiring a financial advisor to build and manage your portfolio has many benefits. A good advisor is knowledgeable about your financial options and can help tailor your portfolio to your specific goals. This also allows you to have peace of mind with your investments because you know you are working with a professional.

 

Why opt for a portfolio?

Investment portfolios help balance financial security and potential. As previously mentioned, by investing across a diverse range of assets, your finances will better weather the ups and downs of the market. And, by investing, you can increase the potential wealth growth significantly more than by simply placing your money in a bank account. 

In addition, a portfolio managed by an investment firm can give you even more options and security. Having a financial advisor means more options and knowledge to build your portfolio specifically for you. A good investment firm understands the market and can help you build a strong portfolio focused on your individual goals. 

Opting for an investment portfolio allows you to decide what you would like to invest in. For example, if you are passionate about the environment, you would be able to create a portfolio that is catered to the environment. On the other hand, if you have a variety of issues that you would like to combat with your investments, you also have the opportunity to do that!

 

How do I choose the right portfolio?

This is the fun part! Think of building an investment portfolio like building the perfect significant other, you get to pick and choose the most important aspects to you. The most important part of choosing a portfolio is making sure it reflects your financial goals. As ethical investors, our financial goals generally include supporting our community and investing in our values. This allows us to do good with our investments, without sacrificing returns. 

Looking at investment portfolios can be overwhelming. We recommend looking for a portfolio that aligns with your areas of interest. For example, if you are passionate about inclusion and equity, check out a portfolio focused on human rights and diversity. 

It is also important to look at your risk tolerance when it comes to choosing the right investment portfolio. This is specific to you as an investor. Factors such as how much time you have before you want to reach your financial goals and how well you react to watching the market rise and fall are important to consider. You can also choose how aggressively or conservatively you want to be with your portfolio. For example, someone who has a higher risk tolerance and more time to invest might choose a more aggressive approach. 

 

What portfolio options does Invested Interests have? 

Well, we are glad you asked! Invested Interests is unique in that we offer some incredible portfolios relating to the environment, human rights and diversity, and peace. In fact, we partner with some of the best socially responsible mutual funds available. We believe that good investments and good companies are not exclusive of one another. Here is an overview of what we offer.

  1. Environment
    1. Our Environment portfolio invests in green companies, alternative and renewable energy companies, and companies promoting sustainability. It also avoids oil and fossil fuel companies, nuclear power/nuclear waste companies, and companies destroying natural resources.
  2. Human Rights and Diversity
    1. Our Human Rights and Diversity portfolio invests in companies that promote fair and equitable working conditions, companies with diverse boards and workforces, and companies that offer equal pay for equal work. This portfolio avoids oppressive regimes, companies with little to no diversity, and companies that have had diversity-related controversies.
  3. Peace
    1. Our Peace portfolio invests in companies that do not support governments or regimes promoting violence. This portfolio avoids guns and weapons dealers/manufacturers, companies working with regimes in armed conflict, and companies with military contracts or is involved in war profiteering.


We realize that everyone’s financial goals and values are different. At Invested Interests, our financial advisor will help build your unique portfolio. If you are not sure where to start, check out our overview of socially responsible investment portfolios. If you are looking to start your investing journey or have questions about investing with us, we would love to hear from you. To reach out to our team, click this link!