A Roadmap To Ethical Mutual Funds In Nigeria

Navigating the ethical mutual funds landscape that resonates with personal beliefs in Nigeria is a challenge.  For investors who are interested in choosing funds that align with their values, this article provides an overview of ethical mutual funds and guides on selecting the right mutual funds that aligns with your personal and social values in Nigeria.

What is Ethical Mutual Funds

Ethical mutual funds are investment firms that aim to generate returns while investing in companies that meet certain ethical and social standards. Ethical mutual funds typically invest in companies that demonstrate a commitment to environmental sustainability, social justice, and responsible governance. These funds are becoming increasingly popular as investors seek to align their personal values and beliefs with their investments.

Investing in ethical mutual funds can be a way for investors to use their investments as a tool for positive change. By investing in companies that align with their personal values, investors can support socially responsible business practices and promote positive social and environmental outcomes. 

However, it is important for investors to carefully research and evaluate ethical mutual funds to ensure that they align with their values and investment goals.

Types of Ethical Funds

  • Environmental, Social, and Governance (ESG) Funds focus on companies that have strong environmental and societal practice with good governance and are committed to environmental sustainability.
  • Socially Responsible Investing (SRI) Funds focus on investing in companies that choose positive impact in the society as their core value. 
  • Impact Investing Funds focus on investing in companies that address specific societal challenges.
  • Faith-Based Investing Funds focus on investments that align with religious values like FBNQuest Halal funds.


How Ethical Mutual Funds Works In Nigeria

Ethical mutual funds use different screening criteria to select the companies in which they invest. Some funds use negative screening, which means they avoid investing in companies that engage in activities that are considered harmful to society or the environment. 

Other funds use positive screening, which means they invest in companies that have a positive impact on society and the environment. Examples of positive screening criteria include companies that promote renewable energy, sustainable agriculture, or social justice.

In addition to screening criteria, ethical mutual funds also consider other factors, such as the company’s governance structure, its labour practices, and its environmental impact. 

Selecting the Right Ethical Mutual Fund In Nigeria

When selecting the right mutual funds for you, consider their investment goals, risk tolerance, and your personal values. It is also important to review the fund’s investment strategy, holdings, and fees to ensure they align with your goals and values.

Overall, investing in ethical mutual funds is a rewarding way for you to align your investments with your personal values while potentially achieving strong returns. However, you should conduct thorough research and analysis before investing to ensure you select the right fund for their goals and risk tolerance.

FBNQuest is a leading name in Merchant Banking and Asset Management across sub-Saharan Africa with over 20 years investment experience that invests in companies making positive impacts in Nigeria while providing investors with the best possible returns.

Visit: https://fbnquest.com/funds/ to learn more about how FBNQuest is helping investors choose the right investment options that align with their values and shared beliefs. 

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