ethical fund

Ethical fund

Ethical Fund

A mutual fund in which the asset managers make investment decisions based upon some ethical code. An ethical fund is marketed to investors who may have moral objections to certain investment vehicles or companies. For example, an individual may have a moral objection to smoking and may therefore buy shares in a mutual fund that refrains from investing in tobacco companies. Ethical funds may have positive or negative guidelines; that is, a fund's ethics may inform where it makes investments (e.g. in environmentally friendly companies) and where it does not (e.g. in arms manufacturers). See also: Green fund, Islamic finance.

ethical fund

A mutual fund that limits investment alternatives to securities of firms meeting certain social standards. For example, an ethical fund might exclude securities of companies that are known to practice discrimination, that operate in certain countries, or that produce specific products (for example, those having to do with nuclear weapons or nuclear power plants). Ethical funds include the Dreyfus Third Century Fund, the New Alternatives Funds, and the Working Assets Fund, among others. See also social investing.
References in periodicals archive ?
Launched in the 1980s, the funds have a proud heritage as the countrys first ethical fund range, while also incorporating ESG considerations.
She is to work closely with the Premier Ethical fund's investment team.
We identified investors in an ethical fund as a group whose actions should offer a strong test of the theory.
Despite giving a return of 17.36%, the AUM of Tata Ethical Fund grew 7.5%, which shows that some investors actually sold off this money spinner.
"In other words, the F&C contract invests in the Shroeders Ethical Fund, the Fidelity Ethical Fund, the FP Ethical fund, so it's a fund of funds.
"When the first mainstream ethical fund from Friends Provident launched in 1984, it was rather unfairly labelled as the 'Brazil fund', because you would have to be nuts to invest in it,'' he says.
The Taurus Ethical Fund has a very interesting mandate.
* AEGON ETHICAL FUND FROM 2003 to 2008, the Aegon Ethical Equity fund achieved growth of 131% despite operating in limited stock markets.
When M&S launched an Ethical Fund in 2007, I fixed a pounds 75 monthly direct debit.
In London, Faith Matters,which was incorporated as a not-for-profit community interest company in February 2007,a few days ago launched the Kafaala Ethical Fund which, according to the promoters,is a "non-interest based fund that meets the religious obligations of some faiths but it is open to all; that provides small business loans for existing businesses and start ups; and that is open to the financially excluded who cannot get access to credit from banks.
Q I AM considering investing in an ethical fund, but how do they decide on which companies to invest in and which to avoid?
And even if an ethical fund doesn't pay off immediately, said Ellmen, good returns over the long-term are likely.