In Europe the interest rates are now historically low. That’s why we have to find other ways than accounts to make return for our savings. Mutual fund is a great option; it is professionally managed collective investment vehicle. I assume that most of you already know how mutual funds operate, so with this draft, I’m going to help you to choose the most appropriate fund for you.
How do mutual funds work (http://www.ablamc.com/investor_education/what_are_mutual_funds/)
Ethical investing means that you have an opportunity to make both financial return and social good. In financial market there are thousands of different funds, so before making a decision which one to invest your money in, remember to do your “homework”. Every fund has their own fund key investor information document where you can find the important information.
In Europe it is safe to choose UCITS (Undertakings for Collective Investment in Transferable Securities) funds. UCITS must be organized under the laws of an EU member state which allows you to invest in a larger market across the Europe. If you are interested, ask more from UCITS from the bank’s investment advisor.
Social responsible investing
An important thing to consider when choosing an ethical fund to invest in is whether or not the fund matches your ethical principles and commitment to social responsibility. Investment advisor should ask you about your ethical considerations, so he/she would know which fund to recommend for you.
I believe that we all have moral objections to certain investment vehicles or companies. For example, would you like to invest your money for a tobacco industry, if you have a moral objection to smoking? Or would you capitalize a company, that uses child labor in the manufacture of the product?
If you want to invest ethically, try to avoid businesses involved in alcohol, tobacco, gambling, pornography, weapons or military. Instead you may want to prefer funds with a positive social or environmental impact, such as renewable energy or water industry. If you think we should pollute less, you might also want to prefer railroad companies in your portfolio instead of car industry.
By choosing wisely it’s more likely that your money is invested in companies whose activities have a positive impact on the environment and society.
Sometimes it is difficult for you to know if the companies are operating ethically or not, so by choosing a fund basket with carefully selected shares from a chosen sector will make it easier for you. Your fund manager will do the job for you and run checks in companies to make sure they meet the ethical standards of your own favor.
Source material
Sijoitusrahasto-opas 2012 Pörssisäätiö
Miten sijoitan rahastoihin 2011 Puttonen Vesa, Repo Eljas
Modern public finance John M. Quigley, Eugene Smolensky
New Trends in Accounting and Finance 
Excellent post! There is certainly a growing need for information and advice on how to invest ethically, and to be aware of this point of view.
infromative picture and interesting topic!