Yielding Wealth | Personal Finance

Are You Into Green Investing?

by miranda on August 31st, 2007

One of the trends sweeping the investment world is green investing. From ETFs to mutual funds to alternative energy companies, green investing is as hot as global warming. And right now, there could be some good bargains in it for you. With stock market trying to recover, there are some deals, especially in terms of solar stocks and biofuels. But watch out! In order to invest in these types of vehicles, you need to have adequate risk tolerance.

The idea is to figure out how much risk your investment portfolio can handle. Even though many green investing vehicles are offering great returns, they also have higher risks. But, for those who choose carefully, the result could be very good. The key is to look for stocks and funds that have a good chance to grow in the future.

Another option is to invest in established companies that invest in alternative energy. Companies like Nike (NKE) have a reputation for green practices, and BP (BP) invests in Jatropha, which has potential as a biofuel, as well as other alternative energy. These are both established companies that have enough capital to sustain losses, but that also could benefit greatly if their alternative energy practices and/or investments pay off.

So, consider your options. If you can handle it, green investing in some carefully chosen companies could pay off big down the road. But you have to be able to hang in there for the long haul.

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POSTED IN: Investing