Investors urged to ignore ethical fund 'myth'

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Investors need to shed the idea that investing in ethical products will mean a drop in returns, according to investment consultants Jewson Associates.

A study conducted by the firm for Oxford University considered funds registered for sale in the UK over the ten year period to the end of 2007, particularly UK equity funds. It also suggests there does appear to be a small cost in terms of slightly higher volatility or risk. There was found to be a close correlation between the performance and volatility of ethical funds and those of small and mid cap funds. Edward Jewson, chief executive at Jewson Associates, said: "SRI funds have sometimes laboured under the misconception that investors sacrifice returns if they choose to invest in fu...

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