Investing

ESG investing is investing that follows environmental, social and governance (ESG) criteria. ESG investors look for companies with good environmental practices, social responsibility tenets and equitable governance initiatives. ESG ETFs and mutual funds are an easy way to gain start. ESG investing was initially considered less profitable but now has a proven track record of beating broader markets.

When you buy stock in a company, you become a part-owner of the company in proportion to the number of

shares

you purchase. Companies sell stock to raise money and these shares of stock are listed on stock exchanges which are marketplaces. Like any other item in a market, stock prices also change. You can profit from owning stocks when the share price increases over time, or from quarterly dividend payments.

Real estate investing means investing in properties. There are two ways of benefiting from such an investment – appreciation in property value or steady stream of income (rent or dividends). You could buy an actual property or you could consider

investing passively

. Passive investment options include REITs, real estate funds and ETFs, that allow you real estate exposure without the hassle of managing the property.

Robo-investing means working with a

robo-advisor

which automates and manages your portfolio based on your preferences. There are many robo-advisors such as Betterment, Fidelity and Schwab. The pros include simple strategies, ease of investing and no required investment knowledge. The cons include lack of holistic financial planning and limited investment options.

Income investing is a strategy that helps generate an income stream from your investments. The first step is to consider how much money you’d need each month. A good rule of thumb for that is the

4% Rule

. You could use multiple assets such as dividend-paying stocks, bonds and real estate among others to create a portfolio that passively gives you regular income.