Ethical investment 'going mainstream'

Thursday, 10 June 2010 12:00

By myfinances.co.uk staff

Investment in ethical and green funds is becoming increasingly mainstream as consumers look for ways to "make money and make a difference", an expert has claimed.

Penny Shepherd, chief executive of UKSIF, the sustainable investment and finance association, said demand for such socially responsible products has risen in the wake of the economic downturn.

"Following the financial crisis, there is an increasing recognition that it makes sense to look at how your wealth is being created," she commented.

Research firm Eiris recently said that the combined value of assets held in retail ethical funds had reached an all-time high of £9.5 billion in 2009.

Between 1999 and last year, the company noted that the number of investors in the sector grew from 200,000 to around 750,000, while the range of products expanded from "a couple of dozen" to almost 100.

In other news, F&C Investments online poll for May found that 73.3% of consumers would think about using an ethical fund, although 41.3% said their final decision would depend on the focus of its strategy.

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