Lifetime ISA invested in Responsible Growth performing badly

[gmaz]

I am helping my son who is at Uni invest in a Lifetime ISA, hopefully so one day he can put a deposit on a house. It is with AJ Bell in the Responsible Growth fund but after investing £8000 over the last 2 years and with the government's £2000 top up it is now worth £9300.

As he is studying renewable tech, climate change etc we wanted to invest in "greener" (or greenwashed) companies.

With interest rates being high at the moment, is there a better fund to invest in so we are not losing in the medium term? Are there any good resources to help investigate and compare them myself?

[Countdown]

I'm not sure if this helps but our Pension Scheme is investing our ESG allocation into the L&G Future World Fund which has returned 8%pa. The fund code is GPGE but it may not be available to retail investors.

[C69]

AJ Bell Responsible Growth hasn't performed badly over the past two years compared to the overall market.

To illustrate this, the attached graph shows AJ Bell Responsible Growth (red line) versus the IA Flexible Investment sector (yellow line) and Vanguard LifeStrategy 80 (blue line).



Your fund appears to closely follow market trends. This shouldn't be surprising, given that most of its holdings are lowish-cost passive tracker ETFs. For instance, Xtrackers ESG MSCI USA ETF and Xtrackers ESG MSCI Emerging Markets ETF each account for 19% of the Responsible Growth portfolio.

Edited by C69 on Wednesday 15th November 15:19

[AdamV12V]

There’s a very big difference between a Green company and one that practices Greenwashing! Maybe not for investing but ethically there certainly is…