Overconcentration
Focusing too heavily on a single sector or asset can expose portfolios to significant volatility and risk.

Emotional Decisions
Allowing personal values to overly influence investment choices may lead to poor financial decisions and reduced returns.

Ignoring Diversification
Failing to diversify across sectors and regions can result in higher risk exposure and underperformance over time.

Lack of Research
Investing in companies without fully understanding their practices may result in supporting unsustainable or harmful activities.

Short-Term Focus
Focusing on short-term gains rather than long-term sustainability can undermine the effectiveness of socially conscious investing.

Overlooking Risk
Ignoring the inherent risks in certain "green" or "socially responsible" investments can lead to significant financial losses.

Blind Trust in Labels
Relying solely on "ESG" or "green" labels without investigating a company's true practices can lead to misguided investments.

Tax Inefficiency
Neglecting tax-efficient strategies when investing in socially responsible funds can reduce overall net returns.

Neglecting Performance
Ignoring the financial performance of a company in favor of its values may lead to lower returns and unsustainable outcomes.