กองทุน ESG
Krungsri Prime is where you can go to learn more about ESG Investing. There is a great article entitled, “What is ESG Stocks?” by Sirapat Gauthiera, CFP, Financial Planner at https://www.krungsri.com/th/wealth/krungsri-prime/privileges/articles/esg-investing Find out more about ESG Stocks by reading the article. You will be happy that you did!
Now that you know more about Krungsri Prime and the article, “What is ESG Stocks?” Let’s talk more about what ESG Investing. ESG investing, or environmental, social and governance, is a growing investment trend that involves evaluating companies on broader factors beyond their traditional financial performance. This includes a company’s environmental footprint, social impacts and ESG Investing corporate governance practices.
It’s not a new idea, but investors are increasingly embracing it as a way to ensure they are aligned with their own values and goals. It’s a way to protect their money while also making it work harder for the planet and people. The movement is backed by an increasing number of investors and institutional players, from hedge funds to pension funds. It’s estimated that by 2025 over $30 trillion in assets will be invested in companies that meet ESG standards.
There are many ways to invest in ESG-conscious stocks and funds, whether you’re on your own or working with a financial adviser. Depending on your goals and risk tolerance, you can choose to research and evaluate individual stocks yourself or work with a financial advisor to help build a portfolio that aligns with your goals. You can select from among a wide range of ESG-focused funds and individual companies. Financial advisors have screening tools that let them search through the various ETFs and stock symbols on their lists for those that fit certain ESG criteria. These screening tools are useful for identifying companies that have a positive impact on the environment, while avoiding those that don’t. They can be used in conjunction with other tools such as sector weightings or a “portfolio tilt” strategy, where you tilt the percentage of ESG investments to increase while maintaining sector weights that match a target index.
This approach has some potential benefits, including a higher likelihood of finding companies that meet the ESG criteria you’re looking for and reduced portfolio turnover. However, it’s important to understand that the expense ratios on these products can be slightly higher than those on other non-ESG investments. This can have a negative impact on your overall returns, particularly if you’re trying to achieve high performance with low volatility. A great financial advisor will be able to advise you every step of the way for all of your available options with ESG Investing.
Investing for the environment:
If you’re investing for the environment, you’re likely to have a long-term horizon and a higher level of risk tolerance. This is especially true if you’re planning to invest for retirement, when a large percentage of your portfolio may be exposed to the stock market. Moreover, you’ll need to have a lot of patience and persistence, as you won’t see instant results when it comes to your investments. Some ESG-conscious funds take longer to hit their targets because they need to analyze a wider range of companies and their underlying business models to determine how they can make a difference.
ESG investors are also pushing for more engagement with companies, demanding that they provide more information on their carbon emissions and measuring their impact on human rights. They’re also using their votes to replace directors on boards who they feel haven’t been properly aligned with their environmental and social concerns. Now that you know more about ESG Investing, it is time to go to the website of Krungsri Prime to read the article, “What is ESG Stocks?” by Sirapat Gauthiera, CFP, Financial Planner.
