Today’s world is very different from the one our parents and grandparents grew up in. For example, how we work, live, and spend our money has changed dramatically.
Unfortunately, not all of these changes are for the better. The 21st century has been marred by scandals ranging from political corruption and greed to global warming and human rights abuses.
However, there is a silver lining to all this doom and gloom. These challenges have caused many people to reassess their values and look at how they can positively impact the world.
Many of us now actively try to align our investments with our core values as much as possible, particularly when it comes to socially responsible investing (SRI). But what exactly does that mean? And how can you create a moral investment portfolio? Keep reading to find out more…
Know Your Values
One of the first things you’ll want to do when trying to create an investment strategy that is more ethical is to understand what your values are. This will help you create a set of filters to look through when researching and investing.
Ensuring your values align with your investments is crucial to maintaining a sustainable portfolio. The more specific you can get with your values, the easier it will be to implement them into your strategy.
Research Potential Investments
Once you have a set of values that you want to invest your money by, it’s time to start looking into specific companies and funds to invest in.
You’ll first want to thoroughly research the companies and funds you want to invest in. This will allow you to ensure that the companies you invest in align with your values.
If you have specific funds in mind, you’ll want to ensure the fund managers are consistent with your investment strategy. Since funds are made up of different companies, you’ll want to ensure those companies align with your values.
While this may seem like a lot of work, it’s incredibly important. Investing in something that doesn’t align with your values could hurt your portfolio and your integrity.
There are many ways you can research potential investments, including:
- Getting in touch with the company’s investor relations team: Getting in touch with the investor relations team at the company you want to invest in is a great place to start. This will allow you to get some insight into the company and the values they align with.
- Researching the industry: In addition to researching the company, you’ll also want to look into the industry they are in. This will allow you to see whether company standards or codes of ethics are specific to the industry.
- Reading up on social and environmental responsibility: You’ll also want to look into each company’s social and environmental responsibility. This will allow you to see if the company aligns with your values.
Speak to an Investment Consultant
If you are unsure where or how you want to invest your money, it can be helpful to speak to an investment consultant.
An investment consultant can help you build an investment strategy based on your values. They will work with you to understand your goals, risk tolerance, and financial situation, and then help you build a moral investment portfolio based on these factors. An investment consultant can also help you to stay up-to-date with the market so that you know how to respond to current events and market shifts.
Now that you understand the importance of creating an investment strategy that is more ethical, it’s time to get to work! There are many things to remember when trying to implement a more ethical strategy. Make sure you know your values and what you want to invest in. Research potential investments and make sure you are investing for the long term.
Most importantly, you want to ensure you are honest about why you are investing in a certain way. If it aligns with your values, you’re on the right track.