When the problem of environmental pollution has reached the alarming levels, socially responsible people from all parts of the world, have vowed to do something to save this world on their own humble ways. Eco-minded people are putting their money to develop alternative energy, clean the earth’s oceans, reverse global warming and to speed up the progress towards sustainability. Green investing is the traditional forms of investing (such as stocks, bonds, mutual funds etc) wherein the underlying businesses are somehow involved in the operations aimed at improving the environment. This can range from companies that are developing alternative energy technology to companies that follow best environmental practices. There are some green companies that are traded on the stock exchanges. These are companies which are engaged in the development of new methods for creating bio-fuels or solar panels or the companies that are engaged in the expansion of environmentally friendly products. You can also take part in green investing through exchange-traded funds (ETFs) which replicate the stock indices made up of green companies. Anyways, here we discuss about some tips for green investing.
Green stocks
One way to participate in green stock investing is to pick stocks which hail from green companies. There are some companies which are engaged in the preparation of bio-fuels, wind power, environmentally friendly products. You need to pick those stocks. Again, there are some companies which claim to be green. While picking your green stocks, you have to be very careful. You can also consult various personal finance magazines so as to find out the right type of green stocks.
Take the help of green investment advisors
You may not be comfortable with the ins and outs of investing. You may lack in knowledge and confidence to pick your green stocks on your own. In such situations, the best way would be to take the help of a professionally qualified financial advisor. After analyzing your situation, an investment advisor will help you find the right stocks.
Invest in green mutual funds
One way to take part in the stock market indirectly is to invest in the mutual funds. In case of mutual fund investment, a professionally qualified fund manager is responsible for investing your money in various asset classes so as to fetch you the best return. There are some thematic funds which invest in green stocks. You can invest your money in such mutual funds and indirectly invest in green stocks.
Invest your money in start-up green projects
There are many start up companies which are into green businesses and which are in need of funds. If you have strong financial muscle, you can start your green business on your own. Or else, you can also indirectly participate in green business by investing your money in such projects. This is indeed an excellent way to help community and business entrepreneurs that work at making the earth a safer place to live.
Like all other stock investment, green investing also entails some risks. But, the social cause of green investing may outplay all risks.