As well as gaining an increased appreciation of financial products and their terms and conditions, growing numbers of consumers are picking up on the ethical issues involved in finance, a fact not lost on banks and fund managers.

The most recent figures published by the Investment Management Association show that ethical fund investment reached £5.9 billion in the fourth quarter of 200 alone, an increase of 18 per cent when compared to the same period in 2006.

This helped the total net retail sales for ethical funds for the whole of last year up to a record high of £473 million, again a significant increase on 2006's figure of £136 million.

No longer are ethical funds a niche investment, therefore, but have instead come into the financial mainstream and offer savvier consumers some excellent rates that will benefit their wallets while also easing their consciences.

In comparison to just a handful less than ten years ago, UK consumers are now able to choose from almost 100 ethical retail funds into which they can put their money in good faith.

Mark Roberts, a spokesperson for the Ethical Investment Research Service (EIRIS) explained that the growth in demand for such funds has gone "hand in hand" with a growing consumer awareness of ethical issues, including the environment and fair trade.

"There are more people investing ethically and investors are considering ethical funds for different reasons," he said.

"Increasingly, investors are realising that the companies that manage environmental, social and governance issues will tend to be less exposed to risk and thus are potentially more attractive investment propositions – especially in the longer term."

Earlier this month Hargreaves Lansdown added a number of ethical funds to its top150 list following soaring demand from its clients for such investments, showing that the market is no longer the preserve of small-scale individual investors.

The company revealed that money going into ethical products and funds increased sevenfold from £3.6 million to £25.3 million over the past 18 months, with this growth showing no signs of slowing down.

As with all financial investments, experts have advised consumers to fully research any ethical fund before making a financial commitment and not to let sentiment get in the way of good economic sense.