The majority of investors believe environmental technology funds will match or outperform other sector-specific funds, according to research by Friends Ivory & Sime investment arm Isis.
The survey of 635 investors, by MarketMinder, found 70 per cent thought an environmental technology fund would do no worse than other sector-specific funds.
The Isis Ecotec fund invests 40 per cent in North America, 40 per cent in Europe and 20 per cent across the rest of the world.
It investigates environmentally positive and sustainable companies that will benefit from the sector's economic changes.
Ecotec fund manager Mark Thompson says: “The fund was established in March with the specific aim of delivering growth by investing in a global portfolio of environmental technology and service companies. We were confident that there was a market for the Isis Ecotec fund and this independent research supports our view.”