The Moral Dilemma of Investing: Should We Prioritize Ethics Over Returns?

March 25, 2026

As a responsible investor based in India, I’ve always been mindful of where my money goes. Recently, I found myself grappling with a moral dilemma that has been bothering me for a while. The question is, should we prioritize ethics over returns when it comes to investing? For me, the answer is a resounding yes. My journey began when I started investing in QQQ, a popular ETF that tracks the Nasdaq-100 index. However, as I delved deeper into the companies that make up this index, I discovered Palantir, a data analytics company that has been making headlines for its involvement with the US military. I must admit, I was taken aback by the company’s practices and values, which seemed to go against my own moral compass.

As I read about Palantir’s contracts with the US government and its role in developing AI systems for the military, I couldn’t shake off the feeling that my investment was indirectly supporting something I didn’t believe in. The final straw came when I read about the Pentagon’s decision to adopt Palantir’s AI as a core system for the US military. I knew then that I had to take a stand and re-evaluate my investment portfolio.

But here’s the thing - I’m not alone in my concerns. Many investors, both in India and globally, are starting to question the ethics of their investments. With the rise of Environmental, Social, and Governance (ESG) investing, people are becoming more conscious of the impact their money has on the world. It’s no longer just about maximizing returns; it’s about aligning our investments with our values.

So, what can we do? Is it possible to exclude certain companies from our investments, even if they’re part of a larger index? The answer is yes. There are ways to create a customized portfolio that excludes companies that don’t align with our values. Some investment platforms, such as Schwab, Fidelity, and M1 Finance, offer tools that allow us to screen out specific companies or industries.

Of course, there are arguments against this approach. Some might say that our individual investments are just a drop in the ocean and won’t make a significant difference. Others might argue that it’s not our place to judge a company’s ethics or values. But I believe that every investment decision we make has an impact, no matter how small.

As I look at the Indian market, I see a growing trend towards responsible investing. More and more investors are seeking out companies that prioritize sustainability, social responsibility, and governance. It’s a shift that I’m excited to see, and one that I believe will have a positive impact on our country and the world at large.

In the end, it’s up to each of us to decide what we stand for and what we want to support with our investments. For me, it’s clear: I want to invest in companies that align with my values and contribute to the greater good. If that means sacrificing some returns, so be it. I’d rather sleep at night knowing that my money is being used to make a positive impact.

As I conclude, I’m reminded of the wise words of Mahatma Gandhi, who said, ‘Be the change you wish to see in the world.’ For me, that change starts with my investment portfolio. I hope that my story will inspire others to take a closer look at their investments and consider the impact they have on the world. Together, we can create a more responsible and sustainable investment ecosystem that benefits everyone.