Tips for building a balanced portfolio of investments

When you’re investing your money to support organisations you believe in, the best way to manage any potential risk is to spread your investments over a number of products to avoid “putting all your eggs in one basket”. When choosing an investment, you should always read the offer document before you invest and if you are unsure you should contact a financial advisor to help you.  

As a general rule, the higher the potential returns and investment offers, the higher the risk associated. But this might not always be the case with investments offering a social impact alongside a financial return.  Some impact-driven investors are happy to accept a slightly lower return if they know their money is funding something good with a really positive social or environmental impact. 

Ethex offers you the opportunity to spread your risk by investing in a range of impact sectors and different investment types, building your own ethically-balanced portfolio.  

 The great thing about spreading your money across a portfolio is that you'll be funding several different organisations, but most importantly, it means any risk is reduced as multiple investments are less likely to underperform. Read on for more information on building an investment portfolio. 

What is a balanced investment portfolio? 

A balanced investment portfolio is likely to include a variety of investments with different features. For example, you can create a portfolio that includes investments in different sectors, with varying impact, different timescales and higher or lower risks and returns. Some of our investors have invested small amounts in nearly all of our products since launch! This diversification can help to maximise both your return and your impact. 

Ways to build a balanced portfolio. 

There are different ways to spread your risk across a portfolio of investments. You may want to invest in a variety of sectors, such as affordable housing, renewable energy or sustainable transport. Depending on your motivation you might choose some investments that offer a strong social impact but a lower financial return.

In addition, You may want to spread your investments depending on how long the investment is for. Some types of investments can be longer-term so it may take a while to get your money out, whereas with others it’s easier to access your capital should you need it.  

You could also think about building an ethically balanced portfolio which may include different types of financial products. As well as our ‘Primary Investment Offers’, Ethex also offers a Secondary Market where you can buy (or sell) bonds and shares in existing projects from other investors who are looking to sell their holdings.

You could also browse our Wider Market pages which list a range of other financial products that allow you to have impact with your money from investment funds to savings accounts and more. 

Investments offered on the Ethex platform are not readily realisable, which means that they may be difficult to sell and you may get back less than you originally invested. Investments are not covered by the Financial Services Compensation Scheme (FSCS) and returns are not guaranteed. If you are in any doubt, you should contact an Independent Financial Adviser.

Investments offered on the Ethex platform are not readily realisable, which means that they may be difficult to sell and you may get back less than you originally invested. Investments are not covered by the Financial Services Compensation Scheme (FSCS) and returns are not guaranteed. If you are in any doubt, you should contact an Independent Financial Adviser.