Advisers should do more to inform their clients about the option of ethical investments, it has been claimed.
It comes after a report suggested the process of investing into ethical fund was not easy, with 58 per cent of respondents saying they would be more inclined to make an investment if the process was straight forward.
Ricky Chan, director and chartered independent financial adviser at IFS Wealth and Pensions, said the demand for investing in ethical funds was growing.
He said: "Younger clients are increasingly looking to make ethical investments; not only are they looking to make a return on investment but they want to know that their money is having a positive impact on society.
"However, there are only a handful of advisers who let their clients know that making these types of investments is an option. More work needs to be done in making people aware that this is an option. Ethical investments are also very expensive which stands in the way slightly of younger clients making these types of investments but the interest is there."
The Good Investment Review published by Good With Money and 3D Investing, in October 2017, revealed there was £96bn assets under management in sustainable and ethical funds.
The review showed this figure had increased by 11 per cent since the previous review was published in 2016.
The report said that many investors didn’t know how to access ethical investments and that advisers could assists clients by educating them and using model portfolios.
"Most investors did not know how to get information on positive investing and even where investors had heard of it, the majority didn’t know how to access them," the report said.
"Several who said ‘yes’ noted that they presumed it would be their adviser who would guide / educate them. Most tellingly, 58 per cent of respondents said that they would invest positively if the process was made straightforward. Again, this is something that advisers can offer in a value-added process, especially if model portfolios are used."