Things to consider when you start investing
It’s your money. You have the power to determine how it’s used!
All of the projects we list on Ethex meet our strict social and financial criteria but we always recommend starting small if you haven’t invested before.
The bottom line is that your money can often speak louder than your voice. So, if you’re motivated to help tackle some of the key challenges of our time, then you can find plenty of opportunities to make your money do good.
No matter how small you start, if enough of us take action we can drive demonstrable impact!
If you’re considering an investment opportunity, there are a number of factors to bear in mind. You should always read the offer document carefully before you decide to go ahead and If you are unsure or need some advice, contact a financial adviser.
It’s likely that you will want to invest in a business or enterprise that provides a positive impact in a sector close to your heart. So, if you want to challenge climate change, you could look at renewable energy projects, or if you’re passionate about reducing poverty, you might want to consider an affordable housing project, for example.
As with any investment product, the offers listed on Ethex do not guarantee a return and your capital will be at risk. Each product will have different risks that you should understand before you make an investment. In order to spread the risk, we always recommend that you invest small amounts and consider spreading around a portfolio of products. You can read more about creating a portfolio here
Each investment opportunity listed on Ethex will give details of projected returns. While these returns are not guaranteed, they will give you an indication of what you can expect to get back, and when.
It is worth giving serious consideration to the accessibility of any investments you make. Do you need access to your capital at any point? Or are you happy to have a fixed notice period? Asking yourself these questions will help you decide if a product is suitable for you.
How much should I invest?
Savings aside, the Financial Conduct Authority recommends that no one invests more than 10% of their annual investable wealth in the kinds of investments available on Ethex. So as a guide, work out 10% of the total of your free capital (not counting your house or pension).