Are Women More Successful Social Traders?
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Women investors have discovered they can make a difference in social responsibility simply by investing. With more than 50 percent of the investments in the United States belonging to women, raising awareness through socially responsible investments is a viable possibility. Socially responsible investments cover public corporations in the areas of environmental, labor practices, equal rights, limiting pollution and hazardous waste, and other social issues. Investors are investors, whether socially responsible women or not. They all want to make a profit from their investments. The only hitch is they want to make a profit off a corporation that is socially responsible.
In theory, investing in such a corporation could wake less responsible corporations up, and cause the incomes of executives to drop because their stock dipped. Realistically, huge corporations buy out smaller, socially responsible companies and ride the responsible wave through those companies. To invest, women should thoroughly research their chosen corporations. Even so, many investors already purchase stock to protest the irresponsibility of corporations. They push for more responsibility in their policies. This promotes change from within. Still, corporations dealing in tobacco, slave diamonds, and other negative practices that affect humans and the physical environment are taboo to some investors.
The socially responsible investments perform well, and some of them perform above the standard quota. Women may choose to go with corporations that have a specific, responsible focus, such as animal treatment or water conservation. Others are drawn toward religious responsibility, or political parties. There are several ways to begin investing. Brokers will take what investors desire in corporations and make recommendations. There are also investment clubs with social agendas. Women can monitor how stocks and mutual funds that interest them are performing on the Dow Jones website. Three additional indexes are The Domini, Calvert Social and Citizens Index. Socially responsible investments are becoming a trend, reaching banks as well.
Rules for Social Investing
The social investments are performing up to the Standard & Poor’s index. Green investments have outperformed Standard & Poor by 16 percent over a period of five years. But, investors won’t have the returns they deserve unless they decide what it is they want in a socially responsible investment. At first glance, they may see a stock they like. After further research, they will see high scores in one part of the corporation’s service, and low scores in another service. For example, a company could practice responsibility toward recycling, but lack in whom they hire, such as illegal aliens.
After deciding on a focus, investors will want to choose another, more detailed focus. Investors trying to change corporations from within could be disappointed. Just because some corporations are hiring illegal aliens, doesn’t mean it will change. Investors need to focus on what they can do, not what they hope to do. The third asset to investors is understanding the market and how it works over time. Meaningful results are acquired in five to 10 years, not overnight. Women investors also need to remember the strong possibility that they can’t change corporations, which have worked with an irresponsible attitude for a long period of time. They won’t change overnight, either. To beat the negative stereotype of corporations, women might want to search for corporations that are supervised by women, or investments with the word, “Women” in the name.
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