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A caring and smart way of investing for professionals

Do you hear a lot about ethical investment and wonder what it really means? Would you like to invest ethically but fear you will lose out financially, so in the end decide you just can’t afford to?

If so, you may be surprised to learn recent findings demonstrate that ethical investment is both an increasingly popular and viable proposition. In fact, in a YouGov survey for National Ethical Investment Week held on 18th to 24th October 2016, 63% of British investors said they wanted to be offered a sustainable and ethical option when choosing their investments.

The term ethical investment simply means investors and their advisers can choose how to integrate ethical, responsible, social and environmental values into investment decisions. The approach is actually not new, having been around for about thirty years, but is sometimes also referred to as SRI or ‘Socially Responsible Investment’.

The main way ethical investment works is that funds are administered in accordance with a wide range of criteria – initially, fund managers use negative selection or screening to avoid investment in companies associated with certain areas and then apply positive vetting to many of these funds. Most ethical funds will also make assessments in relation to environmental impact.


People used to be concerned that you couldn’t combine a social conscience with high returns and so, albeit reluctantly, didn’t select ethical investment as an option. However, over the years it has shown itself to be a very satisfying way of investing for those with a responsible attitude to the wider world. A recent European study found, for example, that Sustainable and Responsible Investment strategies are growing at a faster rate than the broad European asset management market [Source: Eurosif European SRI Study 2014].

Added to which, investing sustainably in today’s world does not have to cost more money. In fact, fees for many Ethical or SRI funds are no more expensive than conventional actively managed funds.

And so, more and more people are coming to recognise that the opportunity to build a more sustainable economy – taking into account Ethical, Social Governance (ESG) issues – simply makes good financial sense. With this in mind, many Chief Executive Officers also see sustainability as a way to gain competitive advantage, witnessing the positive relationship between corporate investment in sustainability and their share prices.

So if you’re an investor who ‘wants to know that their money is doing some good.’ why not investigate further how you can integrate your ethical, responsible, social and environmental values into your investment decisions? At Medical Money Management we’ve been running ethical portfolios for a number of years, so do get in touch here. These are available as Individual Savings Accounts, Pensions, Collective Investment Accounts or Investment Bonds through a number of different platforms.

Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.

The value of investments and income from them may go down. You may not get back the original amount invested.

Past performance is not a reliable indicator of future performance

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