Sustainable investment in Spain represented 20% of assets under management last year, according to Inverco data. In total, assets in national sustainable investment funds reached, at the end of 2021, 64,429.8 million euros.
Investing sustainably is getting easier. Technology also allows today to invest while sitting on the sofa at home or on vacation on the beach. HelpMyCash.com experts explain how to invest sustainably and what tools are useful to start investing.
The criteria that determine that an investment is sustainable (also known as SRI or ESG investment) are in the process of being standardized by the European Union, therefore, at present, each asset manager or investment fund chooses, according to their own principles, to the companies that make up its investment portfolio.
“For clients, investing in a sustainable asset means avoiding allocating money to companies that are related to arms, fossil fuels, child exploitation or that do not comply with United Nations agreements…”, explains Sara Gil, a specialist in HelpMyCash.com.
Is it possible to invest in socially responsible funds if you do not have knowledge? Yes, if the right broker is found. Currently, technology is a great help to start investing easily, so it is also in the case of sustainable investing.
An example of intermediaries that can guide investors who are taking their first steps are robo advisors, investment services that offer clients portfolios already configured with investment funds. If the sustainable portfolio options are chosen, the client can ensure that the entire portfolio or a part of it will be used for sustainable investment.
The leading robo advisor in the sector in Spain in terms of number of clients recently launched its sustainable portfolios. Indexa has 10 investment portfolios that the investment committee set up taking care of the planet, society and excluding companies with practices or values that conflict with this. The commission charged for each investment portfolio of this type is 0.68% per year.
The inbestMe entity was one of the first to jump on the boat and bet on socially responsible investment with 11 portfolios that combine a percentage of between 90% and 100% of the investment funds with these sustainable criteria. In this case, the commission charged is 0.688% annually.
