Ethical Investing

A few weeks ago I wrote about how we are all investing money whether we realise it or not. Think…. your workplace pension.

I also highlighted how you probably have strong views on certain things like:

  • Pollution.
  • Inequality.
  • Banking practices.

The worrying thing is do you really know where your money is invested? 

Your savings could be invested into companies that are directly against your ethical views.

Well now there is a new way to invest. It’s commonly known as ethical investing.

Whilst the investment choice with your workplace pension provider is likely to be limited, do check out whether they offer any ethical funds and what these funds avoid/promote.

One of the problems with ethical investing is that it is very specific to individual people. What you think of as ethical can be different to what your friend thinks is ethical, so it’s important to explore the details behind any ethical investment funds you look at.

If you have some spare cash and/or you want to start making some monthly savings that will work harder, I have picked out 3 of the more popular digital investment providers and had a look at their ethical offering.

Nutmeg

One of the longest running digital investment provider with over £1 billion invested.

Unfortunately, at the time of writing, Nutmeg have no specific ethical investment that you can use.

They are working on it apparently.

Wealthify

Offering pre-built investment plans with no minimum, Wealthify offer an ethical portfolio for each level of risk.

They currently have 5 levels of risk starting off at cautious and going up to adventurous.

Their ethical solution aims to avoid tobacco, gambling, weapons and adult entertainment companies. It also aims to invest in companies with the highest environmental, governance and social practices as well as gender equality and green energy.

Plum

Plum, who work through a Facebook Messenger chatbot offer one pre-built ethical investment portfolio which actually uses the Standard Life UK Ethical Fund.

The fund consists almost exclusively of UK companies’ shares which are selected for making a positive overall contribution to society – investments include Fever-Tree, NMC Healthcare or Bellway.

 

So whilst it is good that the new wave of digital investment providers are focusing on ethical investment solutions, there is lots more that can still be done.

These types of companies work on feedback from users and potential customers all the time so……

QUESTION: What type of ethical investment solution would you like to see? Please share you comments below and I’ll be sure to pass this on to the investment providers.

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