The costs of ethical investing

Investors have sometimes laboured under the misconception that they will sacrifice returns if they choose to invest in SRI funds, but new research suggests there does not appear to be a permanent or inherent cost in taking an ethical stance

What are the costs, if any, of ethical investing? Is there a price to pay for taking an ethical stance in terms of reduced returns or increased risk? As more and more people look to invest on an ethical basis, the question becomes more and more important. Many people assume there is an inherent cost to ethical investing, as with so much else that is ethical. Past surveys of performance have come up with a variety of answers, some suggesting that investing with a conscience does comes with a definite price in terms of risk and return. A detailed analysis of returns from the 90-odd ethic...