Convincing Case for SRI

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I could use help making a convincing investment argument to my dad, who is a lifelong investor. I’m currently studying environmental science and have a job lined up after graduation with the Environmental Protection Agency, so you could say I’m a die-hard outdoors enthusiast. For my upcoming birthday in March, I’m trying to convince my dad to make some investments on my behalf.

The problem is that I just recently learned about sustainable investing, which is what gave me the idea in the first place. My dad never makes investment decisions easily, and I’d want him to include some of my savings, too. This all means I have to know more about what I’m talking about. What should I tell him about SRI, assuming he doesn’t already know? Are there examples of safe SRI investments to show him?

 

It’s probably safe to say that your dad is at least aware of socially responsible investing (SRI) if he’s a veteran investor. A decade ago, SRI was openly considered a niche investment choice by a writer at The Atlantic. The prevailing mentality declared that excluding certain stocks based on ethical grounds would implicitly undermine long-term portfolio performance. It was common knowledge that investing in the tobacco and firearms industries would reliably turn investors a profit.

Things have changed considerably since then. As of 2017, authors at Forbes explain how investors now earn better returns from good companies. The advent of new environmental, social, and governance (ESG) ratings for mutual funds vastly expanded the fund options made available to investors. It would seem that the collective cultural consciousness has shifted precipitously in the marketplace. Some share less enthusiastic optimism, especially during when it comes to SRI during the Trump era.

 

Your dad likely has an opinion somewhere along the spectrum. Perhaps he’s already used the strategy to make investments of his own. Either way, there are several choice examples of high-performing SRI funds. One contributor at The Balance highlights the five largest socially responsible funds in the US. The growth numbers are staggering. Investors have flocked to SRI in a very big way, which isn’t all that surprising when you begin to consider the demographic changes underway. Younger people tend to vote with their wallets above all else.

 

You can also direct your dad to further research on socially responsible investing. His grievances and/or hesitance might not stem from fundamental disagreement but instead from how to craft the right portfolio using an RSI trading Strategy. That’s where your guidance could really come in handy. Since this sounds like a birthday request, it makes sense that you’d want to have a more direct hand in the process. Take time to reflect on companies or causes and products or services that might qualify as viable SRI opportunities. Bring those thoughts to the table when discussing the proposition with your dad.

 

Convincing your dad shouldn’t be a matter of proof. There’s clearly abundant literature on the subject and no dearth of publicly-recognizable examples. Your main objective is simply convincing him it’s worth the risk to you because it’s for inspiring causes. You should also consider volunteering to help oversee the portfolio’s performance. Taking a more active role will only amplify the eventual rewards.

 

“The greatest threat to our planet is the belief that someone else will save it.” — Robert Swan

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