Legal & General has launched an ethical trust based on the FTSE 350 stockmarket index.
The Ethical Trust which will be passively managed will operate by filtering out those companies which do not meet its ethical investment criteria.
The criteria has been established through research among the existing ethical and more conventional investors.
The new trust which is fully Isa-able, has no initial charges or exit fees, but has an annual management charge of 1 per cent.
The minimum investment is £30 a month for regular savings or £500 for single investments.
Commission is available on lump sums into either the unit trust or Isa at 1.75 per cent initial or 0.5 per cent initial and 0.25 per cent renewal. For regular savings into an Isa, the commission is 1.25 per cent initial and for unit trusts it is 1 per cent.