Ethical investments are the one to watch

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Ethical investments are the one to watch

The number of investors looking to put their money in ethical funds is "rapidly growing", according to the Ethical Investment Research Service.

Although there is a growing interest generally among consumers about ethical products, Mark Robertson, a spokesman for the company, said that some "savvy" investors are beginning to see that they could be "attractive investment propositions - especially in the longer term".

He argues that "companies that manage environmental, social and governance issues well tend to be less exposed to risk".

According to the Investment Management Association, ethical fund investment reached £5.9 billion in the fourth quarter of 2007, up 18 per cent from the previous year.

Net retail sales for ethical funds reached record highs last year, up to £473 million, a huge increase from the £136 seen in 2006.
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