Ethical investment offers the additional benefit of not supplying capital to bigger businesses that may be involved in areas such as animal testing or tobacco, the report says.

The data provider Trustnet has shown that the F&C; Stewardship Growth Fund has performed notably well, making returns of 92.1 per cent over the last five years.

Many analysts firmly believe that socially responsible investment (SRI) makes sense because these kinds of shares will attract more capital, consequently increasing their price.

Pars Purewal, British investment management leader at PricewaterhouseCoopers, commented: “Those firms that pay attention [to socially responsible behaviour] are more in demand.”

While it is evident that SRI does not rank among the most lucrative investments, there is no reason why investors cannot make a substantial return, according to the magazine.

In related news, The UK Social Investment Forum (UKSIF) is set to launch a new website promoting participation during National Ethical Investment Week (NEIW).

Find out more about ethical investments

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