Diversity in Ethical Funds

Shaikh Masrick Hasan () and Marizah Minhat ()
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Shaikh Masrick Hasan: Jagannath University
Marizah Minhat: Edinburgh Napier University

Chapter Chapter 7 in Ethical Discourse in Finance, 2021, pp 125-147 from Palgrave Macmillan

Abstract: Abstract This chapter provides an overview of ethical funds, including the history, asset screening strategies, markets of ethical funds, and motives to invest in ethical funds. It identifies seven ethical fund styles that follow different asset screening strategies and tailor to specific moral and social beliefs of investors. These are ethically balanced fund, negative ethical fund, sustainability-themed fund, environmentally themed investing fund, social-themed fund, ESG integration (Plus) fund and responsible ownership fund. This chapter reviews literature relating to various aspects of ethical funds. Mixed evidence is gathered regarding the comparative performance between ethical and conventional funds. The performance of ethical funds also varies across different styles. However, empirical evidence on risk exposure of ethical funds is scant. Therefore, this chapter calls for further research relating to the risk exposure of ethical funds to enrich our understanding and enlighten investors of this important aspect of investment.

Keywords: Ethical funds; Socially responsible investment (SRI); Sustainable investment; Screening criteria; Screening strategies; Ethical investment; Performance; Risk (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:pal:psifcp:978-3-030-81596-7_7

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DOI: 10.1007/978-3-030-81596-7_7

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