Ethical ISAs

There are in excess of 50 Socially Responsible Investment (SRI) funds in the UK. Many of these are unit trusts or investment trusts and can be accessed via an Individual Savings Account (ISA). These SRI funds have grown massively from only a few hundred million under management in the early 1990's to more than £6 billion today.

The minimum amount you can invest on a monthly basis is £50 per month.

A unit trust is simply a pool of individual investors' money, which buys a spread of investments. The trust is then divided into units and the number of units you buy represents your share of the trust. By pooling many investors' money, the fund aims to provide a greater spread of investments than you might be able to achieve on your own. Consequently this can help reduce the risk as well as providing you with the benefits of expert fund management. These trusts aim to provide capital growth or income or a combination of both.

What are the risk factors to be considered?