Ethical Funds' Performance

Abstract

This thesis provides an explanation of how well ethical funds perform in relation to a suitable market index and it also evaluates which bank in Sweden has the best performing Swedish ethical fund as well as the best performing Global ethical fund, between 2008 and 2011. Furthermore, it investigates if the funds are significantly different from the market index or not, by a reliable statistical method. The investigation ultimately concludes that all observed funds are outperformed by their prospective suitable market index, with a significance level of five per cent. Nordea manages the best performing Swedish fund and Swedbank manages the best performing Global fund.