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The many colors of ethical funds

Do you want to become an investor but you are worried that you will invest in the wrong thing? We hear so many horror stories about what different companies are doing to the environment and to people and animals that it can be hard to know when we are making the right investment decisions. That is where the beauty of ethical funds comes in.

Ethical funds are socially and environmentally responsible funds that you can invest in. When you invest in ethical funds you know exactly where your money is gong and what is or is not being done with it. When you first start looking into ethical funds one of the very first things you will notice is that they all seem to be marked by a color. Different shades of the color green reflect different views that each of the ethical funds hold.

For example, light green funds, which are sometimes called best of sector investments. When you are investing in these ethical funds you are investing in large companies that funnel money to other smaller ones. They are not as strict as some other ethical funds but they will not invest in companies that perform animal testing, weapons testing or designing or tobacco. They may still invest in oil and pharma companies though.

If you want to go with ethical funds that are stricter in their criteria for approval then you will want to choose dark green ethical funds. These ethical funds are very picky about which companies they will invest the money in, for instance you will never find a dark green ethical fund that has invested anything in pharmas, oil or even banks.

Basically you can tell just how strict the ethical funds are by the shade of the green. The lighter the green the lighter the restrictions. Keep in mind that the dark green ethical funds will not be as diversified in their investments because their choices are not so numerous.

Learn what the criteria are for different ethical funds in order to see which kinds of investments you can live with. This is the best way to invest in ethical funds. These funds are a great way to help the people and the planet everyday and it feel good to make money that does not have to be made from other peoples suffering.