what makes ethical funds ethical
Ethical Fund. A mutual fund in which the asset managers make investment decisions based upon some ethical code. An ethical fund is marketed to investors who may have moral objections to certain investment vehicles or companies.For example, an individual may have a moral objection to smoking and may therefore buy shares in a mutual fund that refrains from investing in tobacco companies.n ethical fund is marketed to investors who may have moral objections to certain investment vehicles or companies.