Choosing the funding for your investments is a process that requires serious thought and consideration. Understanding what you will and will not accept in the terms and conditions of the funding options available is a big part of the selection process. To get started, you need to define your values and your goals for your investments.
Getting familiar with your values takes time, and some of these values may change as you develop your portfolio. Understanding where you are currently in relation to the investment you’re prioritizing should be the main focus. Other values and goals that are not applicable can be put aside for the now.
Once you’ve identified the main values and goals that you associate with your current investment, it’s time to buckle down and find the funding most applicable to what you’re looking for. In this article, we provide a complete guide to choosing an ethical investment fund so that you can make the best choice for your investment. Read on to learn more.
Know Your Ethical Investing Fund Options
After defining your goals and values related to your investment, you can start considering each ethical investment fund option based on the general criteria that outlines each ETF funding option.
Starting with Benefit Corporation funds:
- Consider whether your goals and values align with the mission to produce maximum positive impact across the board, whereby everyone involved, the environment and the world, benefit and contribute the least harm to society.
- This style of an ethical investment fund supports multiple sustainability factors rather than focusing on a select few.
Single-Theme Funding Option
This form of ethical investing funding fixates primarily on one or a few select concerns. If you want to narrow your focus, single-theme ETFs are more appropriate. The only downside to this form of investment funding is that looking at specific concerns may overlook others that should also be addressed. The practicality of the investment then becomes riskier, as sustainability may decrease if not all factors are considered well enough to produce the least harm to society.
Note: If you’re careful in your review (ideally with the help of a firm), you may still realize that the specific single-theme ethical investment fund is still efficient for your investment concepts. It depends on the context of what you’re investing in, company behaviors, and the impact these behaviors have on humankind.
A seasoned firm can help you process the possibility of ETF options by considering the total human impact that would result from the decision. Using a process of quantification, a firm can help you identify the total benefit to the amount of harm that would be generated by a particular funding option. From there, you can make your decision.
Don’t Select Funding On Assumption Alone
Never select an ethical investment fund on assumption alone. Always take the time to do research and ensure that the ETF is sustainable. Receive insight from ethical investing firms to gain a greater understanding of the sustainability of your potential funding options.