As the world becomes increasingly conscious of the impact of their actions on the environment and society, ethical investing has gained popularity among investors. Ethical investment funds are designed to not only deliver financial returns but also promote positive social and environmental change. With the growth of the ethical investing sector, there are now numerous ethical investment funds available for investors to choose from. In this article, we will explore some of the best ethical investment funds of 2021.
1. Impax Environmental Markets PLC
Impax Environmental Markets PLC is a London-based investment trust that focuses on investing in companies that provide solutions to environmental challenges. The fund invests in a diversified portfolio of companies that contribute to the improvement of environmental sustainability. Impax Environmental Markets PLC has a solid track record of delivering strong returns while making a positive impact on the planet.
2. Parnassus Core Equity Fund
Parnassus Core Equity Fund is a US-based mutual fund that follows a socially responsible investing approach. The fund invests in companies that demonstrate strong environmental, social, and governance practices. Parnassus Core Equity Fund has outperformed its benchmark in recent years and has a strong reputation for its ethical investment strategy.
3. Calvert Equity Fund
Calvert Equity Fund is a socially responsible mutual fund that focuses on investing in companies with a commitment to sustainability and responsible corporate practices. The fund integrates environmental, social, and governance criteria into its investment process to identify companies that align with its values. Calvert Equity Fund has a long history of delivering competitive returns while promoting positive change.
4. Clean Energy Fund
Clean Energy Fund is a dedicated ethical investment fund that invests in companies involved in the renewable energy sector. The fund aims to support the transition to a low-carbon economy by investing in companies that are leading the way in clean energy production. Clean Energy Fund has performed well in recent years as the demand for clean energy solutions continues to grow.
5. Kames Ethical Cautious Managed Fund
Kames Ethical Cautious Managed Fund is a UK-based fund that follows a cautious approach to ethical investing. The fund invests in a diversified portfolio of ethical companies across different sectors while avoiding investments in industries such as tobacco, weapons, and gambling. Kames Ethical Cautious Managed Fund provides investors with a balanced approach to ethical investing and has a strong performance track record.
6. Triodos Sustainable Equity Fund
Triodos Sustainable Equity Fund is a European-based ethical investment fund that focuses on investing in companies with positive social and environmental impact. The fund follows a sustainable investment approach and seeks to support companies that are working towards a more sustainable future. Triodos Sustainable Equity Fund is known for its strong commitment to ethical investing and has delivered competitive returns to its investors.
7. Vanguard FTSE Social Index Fund
Vanguard FTSE Social Index Fund is a US-based index fund that tracks the performance of socially responsible companies included in the FTSE4Good US Select Index. The fund offers investors a low-cost way to invest in a diversified portfolio of socially responsible companies. Vanguard FTSE Social Index Fund has a solid performance history and provides investors with exposure to companies that meet certain environmental, social, and governance criteria.
8. Nuveen ESG Large-Cap Value Fund
Nuveen ESG Large-Cap Value Fund is a US-based mutual fund that follows an environmental, social, and governance (ESG) investment approach. The fund seeks to invest in large-cap companies with strong value characteristics that also demonstrate positive ESG practices. Nuveen ESG Large-Cap Value Fund has shown strong performance in recent years and offers investors a way to align their investments with their values.
In conclusion, ethical investment funds have gained popularity among investors seeking to make a positive impact with their investment choices. The best ethical investment funds of 2021 offer investors the opportunity to invest in companies that are committed to sustainability, responsible corporate practices, and positive social change. Whether investing in clean energy, sustainable companies, or socially responsible businesses, there are a variety of ethical investment funds available to suit different investor preferences. By choosing ethical investment funds, investors can not only generate financial returns but also contribute to a more sustainable and equitable world.