What’s behind the greed of ethical investing

The New Daily - There may be a less-than-virtuous reason to consider ethical superannuation investments, according to a US academic.

That's because, according to retirement expert Dr Michael Finke at Texas Tech University, ethical investments could be a way to overcome the parts of our brain that act in financially irrational ways.

"In my own research, I find that investors become predictably more risk averse after markets fall. This often leads them to sell stocks when prices are lowest, which results in significant mutual fund investor underperformance of about 1.5 per cent per year," Dr Finke told The New Daily.

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