3 Questions About Faith-Based Investing For Potential Investors
Posted on: 2 February 2023
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Are you looking to put your money to work by investing it, but you have some concerns about how the money is being invested? You may be interested in using faith-based investing as an alternative. Here are a few things that you are likely wondering about before you move forward with the investment process.
What Moral Principles Guide Faith-Based Investing?
When people think of faith-based investing, they typically think of those that base their faith on religious principles. However, there are all types of faith-based investing services that cater to different individuals. You may be seeking out companies that engage in practices that have respect for human dignity and life when it comes to their workers or are responsible and do what they can to save the environment.
However, there are also faith-based investments that are aimed more toward political party alliances. You may be looking to only support companies that have conservative or liberal viewpoints, which would have values that align closer to your own rather than others.
How Do You Find Companies That Align With Your Values?
Faith-based investing can be done in a couple of ways. You can decide to do the investing on your own, which means that you are the one that needs to do the research to look into each and every company that you invest in. There are also faith-based investing companies that you can work with that do all of the research for you to find a portfolio of companies that fit your needs. They will offer you portfolios, potentially in different sectors of the economy, so that you can diversify your investments.
Do You Need To Share The Values Of The Companies You Invest In?
While many people do invest in companies that share their personal values, know that it doesn't necessarily have to be that way. You can invest in companies that you feel will make you the most profit from your investment. If the values of those companies happen to be different than your own then that is up to you to make the investment.
For example, if you feel like companies that are focused on renewable energy are going to be the future, even though at the moment renewable energy is not a personal value, you can make that investment. It really depends on where you see the profits going of those companies and if it is good for your portfolio.
Contact a local investing service, such as Monorail, to learn more.