Socially responsible investing

Value-based investing

What is value-based investing?

It’s about investing in companies that align with your values.

A value-based investment portfolio can be based on environmental factors, moral factors, or your faith.

Investing based on a set of values ​​is commonly referred to as “ethical investing”, but it really all depends on your code of ethics when deciding what constitutes ethical investing. This is more commonly known as “socially responsible investing”, but I prefer to call it “values-based investing” because not everyone shares the same values.

What may be ethical to one person may not be to another, so each of us should do our homework and read the information provided on the foundation’s website. When choosing a fund to invest in, it is important to know what is ethical for you.

A prudent investor, after he or she has done their homework, will determine what is fact and what is fiction and whether the company really meets their requirements.

Greenwashing is when a company uses marketing to claim to be a socially responsible company, but in reality they don’t practice what they preach.

A company may donate to charities, but that does not necessarily make them environmentally, ethically or socially responsible.

One company I know has stopped selling coal, but sells imported clothing from third world companies where working conditions in garment factories are unknown.

There are several options for value based investments and they go by different names; here are the ones I know:


These are investments that meet socially acceptable principles. They invest in companies whose activities do not harm the environment. You can be sure that these types of investments do not have funds invested in fossil fuel companies.


An ethical investment fund cannot invest in gambling, alcohol or cigarette companies. Any investment related to the meat industry may also be prohibited if you are a vegetarian.


Some churches have their own investments that are used to fund various church activities. For many church fund investors, the return on their money is secondary to the work the church does with the investors’ money.


This is mainly due to climate change and the environment. This is another name for socially responsible investing.


Another name for socially responsible investment.

It is important to follow basic investment rules and diversify your investments and invest according to your age and life goals. Investing in mutual funds is a great way to reduce risk because your money is spread across different companies. Diversification is known to be a good strategy, especially if you are older and have less time to recover from financial setbacks. Young people are able to take more risks.

Balancing risk and reward is an art, and it takes experience to get really good at it.

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