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What's Inside Your Mutual Fund?

What’s inside your fund?  Your mutual fund.  Are you profiting from things you wouldn’t be proud of?  Things that don’t align with your values and beliefs.  Do you even know what companies your mutual fund contains?

If you’re like most of us…no.  We leave that up to the mutual fund manager.  That’s why we bought a mutual fund.  So we don’t have to choose the companies.

What does it mean to profit from a company you own, either outright ownership or inside a mutual fund?  In a mutual fund, you own shares of the fund.  The fund owns the company.  If the company does well, then your shares will too.

If you own a drug company that makes abortion drugs, then the more they sell, the more profits the company makes, and your stock does well.  Remember, you’re a part owner of that company, so you’re entitled to a share of the profits.  And you may be profiting from something that conflicts with your values.  

That’s fairly obvious.  You can see what business the company is in.

Let’s say it’s a computer or software company.  Now we’ve have to look under the hood to really see what’s going on,  The company is not in an industry that appears to violate any biblical principles.

But upon further review, you learn their charitable giving doesn’t match your values or biblical principles.  Turns out, they give a lot of money to organizations that facilitate and promote abortions.  So you’re potentially profiting from their success.  Likely something you didn’t realize.

These were just examples.  The names were withheld to protect the guilty.

Are you OK with that.  If you knew your mutual fund held companies that are involved in businesses or practices that go against your faith, would you want to know?

That’s not a trick question, but the answer gets tricky.  Because once you know, you’ll have to make a decision.  Stay the course,  or make a change.  

Change is always difficult.  Jeez, nobody likes to changes dentists, let alone their investments. 

But what if change is the right thing?  Only you can decide that.  Do your due diligence.  See if it makes sense for you.   

You can do this.  You can do on your own.  Or get some help.    You'll find out what’s inside your fund?