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    • mlcouriers
    • By mlcouriers 9th Jul 17, 10:15 PM
    • 2Posts
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    mlcouriers
    Ethical Investing or Legal & General All Share Tracker.
    • #1
    • 9th Jul 17, 10:15 PM
    Ethical Investing or Legal & General All Share Tracker. 9th Jul 17 at 10:15 PM
    Hi all this is my first post so bear with me. I'm thinking of investing £50 a month to start with, either in Henderson's Global Care Growth Fund or Legal & General All Share Tracker. I'm drawn to Ethical Investing, I was wondering if this is the way to go, with environmental issues etc. I already hold Henderson's UK ALPHA Fund but I haven't contributed any money for many years. I want to build up a fund to help with retirement. Incidentally I'm 45 Years old. Any advice would be much appreciated!
Page 1
    • bigadaj
    • By bigadaj 9th Jul 17, 11:13 PM
    • 9,362 Posts
    • 5,983 Thanks
    bigadaj
    • #2
    • 9th Jul 17, 11:13 PM
    • #2
    • 9th Jul 17, 11:13 PM
    Best answer is neither.

    Ethical funds sound great but there is often a sin premium whereby companies in tobacco, oil, mining, arms etc etc perform quite well, excluding those often means the overall performance is poor.

    Do some reading, monevator is a good start, but initially many people would start by investing into a multi asset fund, maybe vanguard lifestrategy, black rock consensus, l&g multi index, HSBC etc

    These are available in a mix of bonds and equities to match your risk profile and then rebalance which should give the best chance of higher returns.

    If you have a pension you are already investing which might have an influence, also this isn't a large amount so probably won't make a huge contribution to your retirement. If we say it's invested for 20years then that's £12000, it might double with growth, probably less in real terms. So using a 4% drawdown you might get a grand a year, there's no alternative to contributing decent amounts.
    • mlcouriers
    • By mlcouriers 9th Jul 17, 11:26 PM
    • 2 Posts
    • 1 Thanks
    mlcouriers
    • #3
    • 9th Jul 17, 11:26 PM
    • #3
    • 9th Jul 17, 11:26 PM
    Hi many thanks for your reply, I will take on board what you have said. I've been investing £50 a month into a pension for about 20 years, I wished I had put in more but it's all to do with what you can afford, but I want to invest more perhaps put lump sums in when i can afford it. Especially with interest rates on my cash is a so low.
    • MarkBargain
    • By MarkBargain 11th Jul 17, 5:14 PM
    • 1,540 Posts
    • 653 Thanks
    MarkBargain
    • #4
    • 11th Jul 17, 5:14 PM
    • #4
    • 11th Jul 17, 5:14 PM
    companies in tobacco, oil, mining, arms etc etc perform quite well, excluding those often means the overall performance is poor.
    Originally posted by bigadaj
    I would hope that anyone would want to avoid investing in tobacco or the arms trade! I have a range of ethical funds and all are doing very well. Have a look at the performance of the following...

    Standard Life Ethical
    RLUM Sustainable Leaders
    L&G Ethical
    Jupiter Ecology
    WHEB Sustainable
    • verybigchris
    • By verybigchris 11th Jul 17, 7:47 PM
    • 359 Posts
    • 405 Thanks
    verybigchris
    • #5
    • 11th Jul 17, 7:47 PM
    • #5
    • 11th Jul 17, 7:47 PM
    The problem with ethical funds is that we all have different definitions of what's "ethical".

    For example, I searched the first fund named above, Standard Life Ethical. That fund's second largest holding is in Bellway. They've made the news recently for selling new homes and keeping the freehold, then selling the freehold on to a third-party who massively ramps up the annual lease charge. There are even a few MSE threads about them: example

    Not my idea of an ethical company.

    • bigadaj
    • By bigadaj 11th Jul 17, 9:15 PM
    • 9,362 Posts
    • 5,983 Thanks
    bigadaj
    • #6
    • 11th Jul 17, 9:15 PM
    • #6
    • 11th Jul 17, 9:15 PM
    I would hope that anyone would want to avoid investing in tobacco or the arms trade! I have a range of ethical funds and all are doing very well. Have a look at the performance of the following...

    Standard Life Ethical
    RLUM Sustainable Leaders
    L&G Ethical
    Jupiter Ecology
    WHEB Sustainable
    Originally posted by MarkBargain
    Why, those things are perfectly legal and would typically offer far better returns than ethical funds.

    It's very easy to destroy any ethical decisions, just look at energy as an example. You might exclude coal or oil and gas firms, but many people oppose wind developments, do you invest in nuclear?

    Most forms of banking or financial services will fail to meet many peoples ethical standards.

    Should you invest in motor or aircraft manufacturers, airlines, train companies etc etc
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