Rebecca is an award-winning finance journalist and the Co- founder and Director of Good With Money
“ESG” sounds like something very technical and jargon-y. In fact, it’s an increasingly popular investment approach that takes into account Environmental, Social and Governance factors - not just financial factors - when assessing whether to buy shares in a company.
For investors, the first half of 2018 had its ups - and downs. There have been modest declines in value across some of the world’s biggest indices in the first six months of the year: the Dow Jones index is down 1.06% since the beginning of 2018 and the FTSE 100, down 0.96%.
A performance horizon of five years is generally accepted as a good barometer for a fund’s overall success. A one-year time scale isn’t long enough to judge whether a fund looks like a good long term bet for your money.
Impact investing (so-called because the stocks and funds on offer have a positive impact on society, or the environment, or both) is fast gaining followers, not just for its morally virtuous stance, but for the returns, too.
Investing for a comfortable retirement is an ongoing process not a one-off exercise. You will need to check you are on course to achieve the required level of income when you give up work as interest rates and returns from different assets may change over time.