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Ethical Investment
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Ethical investment seeks to invest in companies that make a positive contribution to the world and seeks to avoid companies which harm the world, its people or its wildlife.
It's difficult for an individual investor to judge whether a particular company is ethical or not. Therefore, most ethical investments are held through a managed investment fund such as a unit trust or life insurance or pension fund.
Most UK ethical funds are based on a combination of positive and negative investment criteria. Some emphasise the former, while others concentrate on the latter, and some try to strike a balance between the two.
See also guide to ethical investment and Ethical Investment Research Services (EIRIS)
Last Updated: June 2007 © Moneyextra.com
Our senior editor Robin Amlôt recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.