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Savings & Investments glossary

Ethical investments

Ethical investments are investments in stocks, shares, and businesses that are made along moral as well as profit-making grounds.

Ethical investment funds typically exclude investments in firms that make money from tobacco, alcohol, gambling, pornography, arms, or environmentally harmful companies.

However, there are many types of ethical fund, and investments can be tailored to almost any set of moral or ethical standards.

There is evidence that investing ethically can produce the same or greater returns than investing solely for profit, however - as with all investment funds - past performance is no guarantee of future returns.


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