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LogoutThe practice of utilizing one’s ethical values as the primary filter for selecting stocks to invest in is referred to as ethical investing. Ethical investment is based on the investor’s personal beliefs. Ethical investment and socially aware investing are frequently used interchangeably; however, socially conscious funds usually have a single set of overarching principles that are utilized to choose the portfolio, whereas ethical investing brings about a more personalized result.
Some ethical investors, for example, avoid sin stocks, which are firms that deal with historically unethical or immoral activities such as gambling, alcohol, or weapons. Choosing an investment based on ethical considerations has little impact on its success.