Will impact investing hinder potential profits?

Is there a correlation with impact investing and earning fewer profits? I am a strong believer in socially responsible investing, but I don’t want my portfolio to suffer because of it.

Investing, Asset Allocation
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May 2017
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It's a tough question. There are a few studies out there that have looked at that correlation between SRI and expected returns.

My opinion is that if you are interested in SRI, you should be prepared to sacrifice some short-term gains. However, in the long-run, your investments will have comparable returns.with the markets. As we have seen time and time again, companies with strong workforce ethic and satisfaction, customer driven products services, and environmentally friendly practices have done very well in the long-run. But it's not always very easy. If you run a solar energy company right now (except for Tesla), you are probably just trying to survive. But those who survive will certainly make history and bring great returns for their investors. 

May 2017
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