Traps to watch out for when picking an ethical super fund
- Misleading claims. Keep an eye out for funds that make misleading or exaggerated claims about their ethical status in their marketing materials. For example, even if a fund claims it is "green" it may still invest your money in an industry you may not want to support, for example arms production.
- Fees. The cost of investing will always be a factor worth considering. Compare the fees charged by different funds but remember to consider these in line with each fund's overall performance. You don't want to fall into the trap of paying much higher fees for a product simply because it markets itself as 'ethical'.
- Hidden investments. Make sure the fund is transparent about exactly how it invests. Search the fund's website for a full list of its current investments to make sure you're happy with where your money is going. If you can't find a list of investments, contact the fund and request this.