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Ethical Income Fund ISAs

Invest for income, in line with your principles

Investment ISAs put your capital at risk & you may get back less than you originally invested

Ethical ISAs

UK Ethical Income

from Unicorn

Allows ISA Transfers
Regular Savings
  • Fund Choice: Actively managed fund that aims to provide an income by investing in UK companies which meets ethical guidelines. Capital at risk.
  • Invest From: £25 pm

Ethical Income Fund ISAs

Ethical investment funds have become increasingly popular, partly due to growing public awareness of issues such as climate change and human rights, and also because investors are attracted by the potential returns available.

Ethical investments 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.

Ethical income fund ISAs invest in companies that are deemed to be socially responsible, in terms of human rights and environmental impact. If you are an income seeker, you can opt for ethical funds that offer monthly, quarterly or twice-yearly income.

What constitutes 'ethical' varies from investor to investor depending on their personal values, so it's best to discuss your specific priorities with your chosen ISA manager before investing.

Benefits of an ethical income fund ISA:

  • By using your ISA allowance in this way, you can be sure that your money only goes towards causes that tie in with your personal values.
  • Companies which have a good ethics track record are less likely to become the subject of dispute or legal action - both of which could have a negative effect on share prices.
  • An ethical income fund ISA allows you to diversify your investment portfolio into new, sustainable markets.
  • By using your ISA allowance to invest in ethical income fund ISAs, you can benefit from tax-efficient income. You can invest up to the maximum ISA allowance into an income fund isa, click here to check the current limit. 

How do I choose an ethical income fund ISA?

It can be tricky for individual investors to judge whether a particular company is operating ethically or not, so most investments of this type are made though a specialist ethical fund manager. An ethical fund manager will thoroughly research potential investment targets, ensuring that they meet certain criteria. 

Often, ethical fund managers will assess companies on both positive and negative criteria. The different approaches of ethical investment funds are often described as:

  • Light green - this approach avoids investments that have a negative impact. For example, they may avoid companies involved in weapons manufacture, human rights breaches, or animal testing.
  • Dark green - this approach involves actively seeking to invest in companies that are making a positive contribution to the environment and society, such as companies in the renewable energy sector

FREE Guide

Could you profit from your principles?

Responsible investment means different things to different people. In this guide, we break down the jargon and look at some of the main ways you can align your principles with your investments. Find out more about:

  • Stewardship, ESG, exclusions-based, and impact funds
  • How responsible investment funds might perform
  • How to pick shares that fit your moral compass

Request Hargreaves Lansdown FREE guide »

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

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15th March 2021

You've decided to invest your savings into a Stocks and Shares ISA. You'll be using your tax-free ISA allowance for this year before the deadline, while also investing your money for your future. But what do you need to consider before opening an account? We've put together a list of our top five considerations for you to think about before you click "apply". 

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