Knowledge gap hinders ethical investments

Mon, 08 Aug 2005

Even though Brits are showing an increased sense of social conscience, many still fail to invest in ethical funds, it has been found.

Even though almost a third only support companies that are considered to be ethical, only five per cent make ethical investments .

General lack of awareness and understanding about ethical investments are to blame for this believes Insight Investment.

The study found that 42 per cent of Britons do not know what an ethical investment fund is. A further one in ten do not know how ethical investment funds work and four per cent admitted they have no idea how to invest money in an ethical investment fund.

However, there is no doubt that ethical and environmental issues are high on the agenda of many British consumers.

Almost a third buy fair trade items at least once a week, 22 per cent avoid products considered to be 'unethical' and over half buy energy-efficient products on a regular basis.

"Yet, when it comes to putting money aside for their own future, many still seem unaware that investing in ethical funds is one way of 'doing your bit' and potentially profiting from your principles," commented Dr Steve Waygood, director of investor responsibility at Insight Investment.

Of the 35 per cent of respondents who would consider ethical investment, less than one in five would base their decision to invest in an ethical fund purely on the likely return on their investment.

More than half of those considering investing in an ethical investment fund would do so because to them it seems like an easy way to make a difference.

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