Climate Change Fund ISAs
Climate change investment funds have become increasingly popular, due to growing public awareness of the impact of global warming.
“More and more clients, individuals and institutions, are asking for funds that address climate change and climate risk,” said Leslie Samuelrich, president of Green Century Capital Management in Boston. “Because of that, asset managers are starting to develop portfolios to meet that demand.”issues such as climate change and human rights, and also because investors are attracted by the potential returns available.
Investing within an ISA could be a valuable addition to your financial strategy because they allow you to shelter any potential returns from tax, diversify your portfolio, and know that you are helping to make the world a better place.
Climate change investment ISAs invest in companies that are deemed to be socially responsible, in terms of environmental impact. Funds that are aligned this way will generally invest in companies that are meeting positive carbon and environment al criteria.
Why Invest In Companies That Seek To Make A Positive Environmental Impact In An ISA?
An investment ISA can be a good way to put aside some money each month or invest some extra cash.
Investment ISAs have the potential to provide better returns than any other savings account.
Some things to consider include:
- Assess the level of risk you’re willing to take, most providers can filter assets depending on the level of risk you’re willing to take or even provide you with a ready-made portfolio
- Low risk investing tends to focus on bond funds which pay interest or dividends regularly, whereas higher risk portfolios tend to focus on property investment and the stock market
- Decide if you want a ISA where you can invest in companies that have a positive approach to the environment e.g. companies that have low carbon omissions
- Providers often hold a limited amount of carefully selected options to invest in whereas others have a much larger range of funds. Work out which is right for you
- Some providers have a simple interface with clear copy about each investment and its past performances. Make sure you find one that you find easy to use, helpful and clear
Currently, you are able to invest anything up to the tax threshold and choose to have it spread across a Cash, Stocks and Shares and Innovative Finance ISA or consolidated within one account.
As you can only fund one Ethical ISA per tax year it’s a good idea to shop around before you make your choice