Investors have in the past made the assumption that ethical investments under-perform more conventional forms of investments, but according to a report published recently this could not be further from the truth as people look to become more socially responsible with how they invest their money.
The report, which was published by Experts in Responsible Investment Solutions, has dispelled this myth by revealing that 90 per cent of wealth managers have agreed that ethical investments have performed the same or better than other types of funds.
So for those who have disregarded ethical investments in the past, perhaps it is time to think again.
Ethical investment has become increasingly popular in recent years as more and more people are making concerted efforts to ‘go green’. For some this may involve recycling more, using their car less or cutting down on how much power they consume. But for others, investing ethically has provided an additional avenue to help improve our environment.
As a result of the growing interest in ethical investments, there is an increasing number of ethical funds on the market as providers fight for a piece of the action.
Ethical investments, for those who are unfamiliar with the term, involve investing into companies and products that aim to have positive impact on the world we live in.
Through investing ethically, you will avoid investing in companies that can have a negative effect on the environment and society, such as tobacco companies, and instead invest your money into businesses and products that work to improve our world, for instance, companies working to provide renewable energy sources.
Just like more traditional forms of investments, ethical investments can come in many forms including ISAs, which provides a tax wrapper for your savings, as well as bonds and equities, and you can choose between funds which offer income or growth potential.
As there are a growing number of providers looking to offer potential investors an ethical investment, it is a good idea to do as much research as possible before making any decisions. Providers are becoming increasingly competitive trying to offer the best deals, so it is worthwhile comparing different types of ethical funds to ensure you get the deal that is right for you and achieves your investment goals.
This is where comparison websites come in handy as they can offer unbiased information to help you make a more informed decision, sites like http://www.fairinvestment.co.uk and http://www.which.co.uk can offer these types of services.
It is also worth remembering that an independent financial adviser can provide you with answers to investment concerns or queries you may have, so if you are unsure about anything it is better to speak to an expert who can point you in the right direction.
Andy writes for a number of financial websites specialising in savings and investments.
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