What if your investments aligned with your values?
The concept behind values-based investing is simple. Investors can support companies, own or lend to companies which align with the personal values of the investor. In other words, values-based investing is a vehicle of putting your money to work with companies that align with your long-term goals and beliefs.
But what exactly does this type of investing cover? How does it help clients achieve their personal preferences? Let’s dive deeper to find out.
Investing that reflects your values.
Values-based investing reflects your values. The principals that you follow in life. For instance if you strongly disagree with abortion you wouldn’t want to own the stock of a company that support abortion. This is an investment strategy that avoids or increases exposures to specific companies, sectors or business practices.
Value-based investing empowers you to build a portfolio that’s as unique as you are. If integrity is important to you building a investing portfolio that aligns with your values is essential.
Today investors prefer to own and lend to business and entities that align with personal values.
Imagine investing in specific causes that you care about in addition to restricting companies that do not match your values. In other words, increasing exposure to companies and issues you want in your portfolio instead of just what you don’t want.
Here are a few considerations that you could potentially use to build your portfolio:
- Personal values front and center: Identify the causes or issues that matter most, right from the start.
- Specific causes and companies: Go deeper in your cause selection with values-based investing. If you are focused on particular causes like alcohol abuse, cancer, abortion and more, you can customize your portfolio to divest from companies that do not align with your views.
- Dynamism: If companies change, you can change, too. With values-based investing, you may be able to monitor company behavior and adjust your portfolio accordingly. For example, if a company begins producing or funding cancer causing foods, you could respond by reducing or removing the company from your portfolio.
How can investors benefit from values-based investing?
The value comes not only from its ability to align investments with a range of causes. Investors may also discover a more personal connection with their portfolios when they incorporate this type of investing strategy into their investment decisions.
Ready to take the next step? Connect with us today.