Since unit trusts and investment trusts were allowed to be used Personal Equity Plans, or PEPs, became very attractive. Sadly, they are no longer available after April 5 and investment managers are all trying to attract your money. Some offer discounts, others even money towards the new ISAs. For some investors, how their money is invested counts.

Ethical, or Green investments are funds which will not invest in companies which may damage the environment, exploit animals or unfair labour, make weapons, or involve tobacco or alcohol production. The number of companies offering such funds is growing and can now be found in PEPs, unit trusts, insurance bonds, and pensions.

One company now has a choice of three different ethical funds available as a PEP which means they can cater for a wide range of investors' needs. You may think that by limiting the choice to companies that meet the 'Green' criteria, it means poor investment returns, but over 40 per cent of companies in the FTSE Actuaries All-Share Index have been approved by this company, as have hundreds of companies in Europe, Australasia, and the US.

Their first fund was launched in 1984 and is the country's largest ethical unit trust. It invests in UK companies with the aim for capital growth with low volatility. It was followed in 1987 by an Income Trust which aims to produce an above average increasing income with the prospect of capital growth. The latest addition, the International Trust, invests in overseas companies as well as the UK, and its objective is capital growth. You may switch existing holdings in direct shares directly into the PEP plan. Given the changes to Capital Gains Tax, you may wish to use up part of your Capital Gains Tax allowance for this year (£6,500) in this way. Apart from protecting future gains against tax because it is a PEP, it will diversify the number of shares you hold and you know the money will be invested in ethically. Call 01484 860123.

Alan Mills is an independent financial adviser with A. J. Mills Independent Financial Advisers, a member of DBS Financial Management PLC, which is regulated by the Personal Investment Authority. Not all contracts of PHI are regulated by the PIA. Answers given are for general guidance only and specific advice should be taken before acting on any of the suggestions made. All information is based on our understanding of current tax practices which are subject to change. The value of shares and investments can go down as well as up.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.