Submitted by: Tizzy Martin
You want your money to work for you, of course, and youve chosen to place it into higher yield instruments. At the same time, you also value sound ecological practices and principles. Your objective is to invest in companies and projects that reduce or eliminate further damage to the environment, or that promote sustainability and conservation. Finding investment vehicles that fit your criteria is not difficult, but it doesnt hurt to select a firm whose focus is green investment management. The financial advisor you select should not only understand the current landscape of green investments, but be aware of potential trends to help you achieve your goals.
What Is Green Investing?
Its easy to confuse the terms socially responsible investing and green investing. While there is a good deal of overlap between the two, there is a distinction between them. Socially conscious investment does embrace environmentally sound, or green companies and products. However, this does also include the practice of avoiding putting money into businesses that sell addictive products. Additionally, this also incorporates a focus on financial vehicles that fund initiatives for social justice, clean technologies, and community involvement and improvement.
Green investing, as a subset of socially conscious investment, has a specific intention of funding products and enterprises with very narrow goals. Each of these is aimed at a specific set of environmental benefits. For instance, a project to develop an alternative energy source would be a ripe possibility for funding. Creating green insulation for homes and energy-saving technologies are other examples.
Selecting a Financial Adviso
While some capital management companies have a wide focus on socially responsible ventures, its possible to construct your entire portfolio of nothing but green companies, funds and other instruments. However, there are certain things to consider when pursuing your strategy. Just because a company bills itself as green doesnt necessarily mean that it is. Demonstrated evidence that they do what they say they do is key. But how do you sort through all the information and options?
Because of the sheer number ventures flooding the market that claim to be environmentally focused, an advisor who concentrates on green investment management is your best bet. This person is skilled at identifying both successful and eco-friendly vehicles. Additionally, he or she has the expert knowledge to help you navigate the landscape and create a strategy thats both financially and environmentally sound.
Keep in mind that your aims can be as general or as narrow as you like. If have a specific kind of ecological benefit as your locus for instance, renewable fuels or clean water your advisor should be able to suggest a mix of instruments aimed at your interests. Also, your portfolio can be tooled to contain only pure play green investments (which only receive revenues from eco-friendly products or initiative), companies that include green products or projects in their mix, or both.
Its laudable that you want to do something responsible with your money. But as with any kind of investments, this is not something you do rashly. Its your money, and you need to find a green investment management firm that knows the market and cares about your goals. The right professional works to align your strategy with your values, needs and desires.
About the Author: John Trinh has been writing for 10+ years. He first delved into the world of writing when he wrote his first article for his university’s paper. Since then, John has enjoyed writing about technology, business, marketing, and anything that he thinks he should write about.Visit at
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