An Insight into Ethical Investments

Results from a poll conducted by FTAdviser during Good Money Week have shown that, despite ethical funds and investments making the news for their apparent surging popularity, advisers mentioned that they are popular among less than 20% of their clients.

This could be due to the interest in ethical funds being expressed amongst a small number of clients who are mainly unrepresentative of most advisers’ client bases. For example, one adviser mentioned that ethical funds and investments are more popular with younger people, who don’t make up many of their clients.

However, this has caused surprise amongst some advisers, one of whom mentioned that clients “regularly” enquire about ethical funds and investments. It may be that many clients enquire about investing ethically, rather than having it being raised or suggested to them as an option.

Ethical funds have been increasing in popularity and are widely known as being relatively risk-free as savings in general. However, this means that investors may see lower returns.

It’s a useful idea for investors to add ethical funds and investment to their portfolio to actively seek out companies who are providing positive solutions to various social and environmental issues.

How we choose to invest our money has the power to change and shape the way we live our life on earth. As well as contributing to a more sustainable and ethical world, ethical investments provide the opportunity for investors to see long-term growth.

If you’re looking for financial advice regarding ethical investments and funds, talk to our financial advice team. Please call on 01926 492406 or email us at enquiries@klofinancialservices.com to make an appointment.