In a world that is becoming increasingly conscious of the environmental and social impact of corporations, ethical investing has gained popularity among investors. Ethical investment funds allow investors to align their financial goals with their values by investing in companies that prioritize ethical practices and sustainability.
Choosing the best ethical investment funds can be a daunting task, given the vast array of options available in the market. To help investors make an informed decision, we have compiled a list of some of the top ethical investment funds of 2021.
1. **Impax Environmental Markets (IEM)**
Known for its focus on environmental markets, IEM is a leading ethical investment fund that invests in companies involved in resource efficiency, renewable energy, and water infrastructure. The fund has a strong track record of delivering attractive returns to investors while promoting sustainability.
2. **Kempen Global Sustainable Equity Fund**
This fund is dedicated to investing in companies that adhere to strict environmental, social, and governance (ESG) criteria. With a global focus, the fund maintains a diversified portfolio of companies that are leading the way in sustainable practices.
3. **Triodos Sustainable Equity Fund**
Triodos is a specialist in sustainable and ethical investments, focusing on companies that promote positive change in society. The fund invests in companies that prioritize social responsibility, human rights, and environmental protection.
4. **Pictet Water Fund**
Water scarcity is an increasingly pressing issue, making the Pictet Water Fund a compelling investment choice. This fund invests in companies involved in water supply, treatment, and technology, aiming to address the global water crisis while generating competitive returns for investors.
5. **Aegon Ethical Equity Fund**
This fund follows a strict ethical investment policy, excluding companies involved in industries such as tobacco, weapons, and gambling. Aegon Ethical Equity Fund focuses on investing in companies that demonstrate responsible business practices and sustainable growth potential.
6. **Sarasin Responsible Global Equity Fund**
Sarasin is a pioneer in ethical investing, with a long-standing commitment to sustainability and responsible investment practices. The fund focuses on companies that exhibit strong ESG performance and contribute to positive environmental and social outcomes.
7. **Vanguard FTSE Social Index Fund**
Vanguard is known for its low-cost index funds, and the Vanguard FTSE Social Index Fund is no exception. This fund tracks the performance of socially responsible companies in the FTSE4Good Index, providing investors with a diversified and cost-effective way to invest ethically.
8. **Alliance Trust Sustainable Future UK Equity Fund**
This fund specializes in investing in UK companies that demonstrate strong ESG practices and sustainability. The Alliance Trust Sustainable Future UK Equity Fund aims to deliver long-term growth while promoting positive change in the UK market.
9. **Jupiter Ecology Fund**
Jupiter Ecology Fund is a top-performing ethical investment fund that focuses on companies involved in environmental solutions and sustainable technologies. The fund has a long history of outperforming its peers while promoting sustainable development.
10. **Royal London Sustainable World Trust**
Royal London Sustainable World Trust is a global equity fund that invests in companies that have a positive impact on society and the environment. The fund screens companies based on their ESG performance, ensuring that investors can align their financial goals with their ethical values.
In conclusion, ethical investment funds offer investors the opportunity to support companies that prioritize sustainability and responsible business practices. By choosing the best ethical investment funds, investors can not only generate attractive returns but also make a positive impact on the world. The funds listed above represent some of the top choices for investors looking to align their investments with their values in 2021.
Investing in ethical funds is not only financially rewarding but also helps in building a better future for our planet and society. With the increasing focus on sustainability and social responsibility, ethical investment funds have the potential to drive positive change and create a more ethical and sustainable economy.