Go green with your ISA cash

Putting money into ethical funds which invest in companies involved in areas such as climate change is growing popular.

More investors than ever are turning to ethical investment for their annual ISA allowance, according to the Co-operative. Its research shows that 13 per cent of investors are likely to go green with their allowance this tax year, which is a massive leap over the current 1 per cent of the funds under management market that is held in ethical investments.

"Sustainable investment is not a niche for ethically-minded consumers," says Rod Bulmer of Co-operative Financial Services. "It offers a fantastic chance to grow investors' money over the long-term by exploiting the exciting investment opportunities from major changes occurring throughout the world."

In the last decade, interest in ethical and green investment has gradually risen. The amount of money held in ethical investments climbed from £2.8bn to £6.8bn while overall ethical finance – which includes banking, credit unions as well as investments – has almost tripled from £5.1bn to £14.4bn.

Co-operative Investments launched a new sustainable fund last July, to add to the two it already offered. The Sustainable Diversified Trust has since reached the top half of the IMA Cautious Managed Sector by size, overtaking many of the more established funds in what was one of last year's most popular sectors to invest.

Martin Bamford, of financial planners Informed Choice, says the popularity of the fund is no surprise. "Ethical and socially responsible investment will become conventional investments once the world faces up to future challenges," he says.

Of course the Co-op's Rod Bulmer agrees. "The need to tackle issues such as ageing populations, climate change and global power shortage are fundamental in global society, and will create investment opportunities for some time to come."

For investors looking for a decent home for their ISA money, ethical funds may not be able to provide the most startling of returns. For that investors probably need to take a greater risk and, if they are happy to, invest in less green funds. But with the Co-op's three funds investing in companies involved in such areas as healthcare, climate change, global power shortage, technology, global infrastructure, urban regeneration, sustainability and emerging markets, there could well be long-term growth.

Meanwhile, if you want a green home for the cash element of your ISA, the Triodos Online Cash ISA pays 2 per cent while using the money to support UK ethical enterprises. "If you're interested in finding out how it feels to bank ethically, but haven't yet taken the first steps, then our ISA is a great place to start," says Charles Middleton of Triodos Bank. "You'll get a decent return on your nest egg and the assurance that your money's making an active contribution to a more sustainable society."

However, because of Easter the latest you can apply for a Triodos ISA is Monday 29 March, as your opening deposit must be with the Bank by Thursday 1 April to be included in the 2009/2010 ISA allowance.

www.triodos.co.uk/onlineisa

www.co-operativeinvestments.co.uk

Independent Partners; request a free guide on NISAs from Hargreaves Lansdown

News
John Travolta is a qualified airline captain and employed the pilot with his company, Alto
people'That was the lowest I’d ever felt'
Life and Style
healthIt isn’t greasy. It doesn’t smell. And moreover, it costs nothing
News
i100

Other places that have held independence referendums
Arts and Entertainment
Jack Huston is the new Ben-Hur
film

It scooped up an unprecedented 11 Academy Awards when it was first remade in 1959

PROMOTED VIDEO
Arts and Entertainment
Pharrell dismissed the controversy surrounding
musicThe singer said 'the last thing I want to do is degrade'
News
news

Arts and Entertainment
Blossoming love: Colin Firth as Stanley and Emma Stone as Sophie, in 'Magic in the Moonlight'
film

Actors star in Woody Allen's 'Magic in the Moonlight'

News
A male driver reverses his Vauxhall Astra from a tow truck
newsThe 'extremely dangerous' attempt to avoid being impounded has been heavily criticised
News
peopleThe Times of India said actress should treat it as a 'compliment'
Arts and Entertainment
Maxine Peake plays Hamlet at Manchester's Royal Exchange
theatreReview: Maxine Peake brings emotional ferocity to Shakespeare's starring part
News
news

Watch this commuter wage a one-man war against the Circle Line
Property
Home body: Badger stays safe indoors
lifeShould we feel guilty about keeping cats inside?
Life and Style
fashion

Olympic diver has made his modelling debut for Adidas

Travel
travel

...and the perfect time to visit them

Sport
Jonas Gutierrez (r) competes with Yaya Toure (l)
football

Newcastle winger reveals he has testicular cancer - and is losing his trademark long hair as a result

Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Trainee Recruitment Consultant - Birmingham - Real Staffing

    £18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...

    Recruitment Consultant - Soho - IT, Pharma, Public Sector

    £20000 - £25000 per annum + OTE £35,000 first year: SThree: The SThree group i...

    Sales Executive

    £20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...

    Payroll & Accounts Assistant

    £20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...

    Day In a Page

    Mystery of the Ground Zero wedding photo

    A shot in the dark

    Mystery of the wedding photo from Ground Zero
    His life, the universe and everything

    His life, the universe and everything

    New biography sheds light on comic genius of Douglas Adams
    Save us from small screen superheroes

    Save us from small screen superheroes

    Shows like Agents of S.H.I.E.L.D are little more than marketing tools
    Reach for the skies

    Reach for the skies

    From pools to football pitches, rooftop living is looking up
    These are the 12 best hotel spas in the UK

    12 best hotel spas in the UK

    Some hotels go all out on facilities; others stand out for the sheer quality of treatments
    These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

    Widespread fear of Isis is producing strange bedfellows

    Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
    Topshop goes part Athena poster, part last spring Prada

    Topshop goes part Athena poster, part last spring Prada

    Shoppers don't come to Topshop for the unique
    How to make a Lego masterpiece

    How to make a Lego masterpiece

    Toy breaks out of the nursery and heads for the gallery
    Meet the ‘Endies’ – city dwellers who are too poor to have fun

    Meet the ‘Endies’ – city dwellers who are too poor to have fun

    Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
    Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

    Ian Paisley’s decision to make peace with his IRA enemies

    His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
    'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

    'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

    Exclusive extract from Janis Winehouse's poignant new memoir
    Is this the role to win Cumberbatch an Oscar?

    Is this the role to win Cumberbatch an Oscar?

    The Imitation Game, film review
    England and Roy Hodgson take a joint step towards redemption in Basel

    England and Hodgson take a joint step towards redemption

    Welbeck double puts England on the road to Euro 2016
    Relatives fight over Vivian Maier’s rare photos

    Relatives fight over Vivian Maier’s rare photos

    Pictures removed from public view as courts decide ownership
    ‘Fashion has to be fun. It’s a big business, not a cure for cancer’

    ‘Fashion has to be fun. It’s a big business, not a cure for cancer’

    Donatella Versace at New York Fashion Week