Sustainable Investing: Stocks vs. Bonds – Which is Right for You?

When you are trying to choose between socially responsible investments, there are a number of factors that you are going to need to look at. Two of the most common types of socially responsible investments are stocks and bonds. Here are a few things to consider about each type of investment.

Potential

When you compare the potential of stocks and bonds, these types of investments are very different. With stocks, you are going to have much more potential for return than you will with bonds. Bonds pay you a regular amount of interest, and the values of the bonds are not going to fluctuate much. With a stock, the value could triple or quadruple depending on the performance of the company.

Safety

When it comes to safety with socially responsible investments, bonds are going to be one of the safest forms of investment available. With a bond, you are going to be able to get your investment back in most cases when a company files for bankruptcy. However, with a stock, you are most likely not going to be able to get anything back if a company goes into default. Therefore, even though you will earn less with a bond, your investment is going to be safer.