Thursday 18th December 2014                 Change text size:

Five reasons to invest in ethical funds



Photo: Flavio Takemoto via Flickr

Considering investing ethically but still not totally convinced? Worry not! Here’s five sure-fire reasons to do so, described by Greenhouse PR.

Have you ever thought about what happens with your money once you’ve put it into savings?

As UKSIF’s National Ethical Investment Week launches and unfolds this week, we will see more and more opportunities to invest our money for good returns and better ethics.

Anna Guyer, director of Greenhouse (and long-time green investor), says, “With a return of more than 12%, why wouldn’t you invest in funds you really value and believe in – from the new green economy, new clean energy and technologies, to social justice. You would be mad not to!”

Did you see Anna and her family in the Sunday Telegraph over the weekend, talking about her investment in ethical funds?

Barchester Green Investment shared with us their top five reasons to invest in ethical funds – and what five things you can do about it (also featured in the Mail on Sunday!).

Five Reasons to Invest in Ethical Funds

1. Personal values - you can invest in a fund that you care about; one that reflects your values and your priorities.

2. Performance - excellent short-term and long-term returns are available in the ethical and environmental sectors (for example, Cheviot Asset Management and Kames Capital can offer a +12% return).

3. Price - many of the ethical funds in the market are very low cost compared to the rest of the ‘conventional’ market.

4. Planet - we don’t have another life or another planet, so best to make use of this life and take better care of the planet that we have.

5. Pleasure - it is really rewarding to see your money making a difference.

Five Steps to Take

1. Reflect on your values - what are your passions and concerns? Where do you want to see your money making a difference?

2. Consider your approach to risk - are you a safe investor? Do you want to take risks? How long-term is your investment plan?

3. Find yourself an expert - or an advisor that can match your values and your approach to risk (or ‘risk profile’) to the funds that match your criteria.

4. Read the small print of each fund - ensure that you are investing in the right sort of companies, beyond the title of the fund.

5. Reinvest - consider re-investing your profits to do even more!

John Ditchfield, managing partner at Barchester Green says, “There is more to selecting the right investment fund, than just looking at financial performance.

You need to know and understand your investment and your investment choices; a specialist ethical adviser can help you to consider your values, look at your risk profile, and recommend funds that suit your particular needs.”

If you want more information, or simply want to talk through your options, talk to Barchester Green Investments.

National Ethical Investment Week runs until Saturday, October 20. Join the movement on Twitter using the hashtag #NEIW12.

Further reading:

Talk of high returns amongst ethical investors detracts from the point

Ethical investors cite the environment as their primary motivation

Why the best financial advice includes ethical investment options

The ethical investment performance myth

National Ethical Invsetment Week 2012 begins


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