The Changing World of Ethical Investments

You might think that investing ethically means sacrificing high returns, but that’s not the case. In fact, ethical investments are not just matching other investments, they are outperforming them.

How are things changing?

Investment funds used to be created in anticipation of demand, and now they are driven by it. At the moment demand is high for ethical investments, with more and more investors wanting ethical investment strategies. As a result, the investment funds are changing, with VBI (values-based investments) making up larger percentages of funds.

What does this mean for you?

With the demand for ethical investments growing massively, it is easier to match your investment portfolio to your ethical criteria – the high demand is making it increasingly simple to access ethical, values-based investments. The swing towards ‘impact-investing’ (e.g. removing investment from fossil fuels and investing in green energy instead), does mean though, that companies are actively trying to make themselves look greener, and ‘greenwashing’ can occur – so make sure you always get as much information as possible.

It can be difficult to screen investments, and it is still very important to consider the return your investment will make as any investment you make needs to help you with your financial goals, so it is absolutely vital to get quality advice before you invest.

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.