You are serious about your money. You are serious about sustainable living as well. Chances are you are exploring every other avenue to acquaint yourself with the nuances of environment-friendly personal finance—paperless bills, mobile banking, Lendgreen quick loans online and even green mortgage.
Now, eco-friendly investments remain one of the most dominant trends shaping the future of green personal finance. At the very onset, when you are making eco-friendly investments you are basically exploring green bonds, mutual funds and shares. With green bonds in the scene, you know that the money you’re paying upfront – is being used to sponsor green projects.
Then again, you have got chances to invest directly in companies involved with green projects. Eco-investing accommodates tremendous opportunities as far as going green with your personal finance is concerned. However, the concept itself is saddled with a string of misconceptions—misconceptions that are actually keeping people away from it. In the course of the post, we will look forward to debunking these myths effectively.
Myth #1: Eco-friendly investment is nothing more than a mere fad
Yes. It’s true that the enthusiastic investors have often been victims of “greenwashing”. However, it is highly erroneous to regard eco-friendly investments as just another fad, with fake promises to boot. Substantial research is the mantra for success in this regard.
The most prudent step to take in his regard would be to turn to the sustainability ratings that are actually tailored to help potential investors understand whether a fund which has been marketed as “sustainable” is actually capable of living up to its promise or not.
The fact that sustainable investing is way more than a fad can be established from the stupendous support that it has ended up garnering! There are a whopping 2.4 trillion dollars in global assets that have been invested sustainably!
Even the most reputed investment thought leaders have opined that the introduction of better ESG (Environmental, Social, Governance) frameworks will actually facilitate more informed investment decisions in future.
Myth #2: Your money will not really make a difference in this regard
If that’s what is holding you back, then let us tell you that are actually undermining the power of sustainable investments that have already been made.
Your money has actually made a difference. The environmental investments that have already been made have already been utilized to meet some of the most pressing challenges.
A United Nations report in 2012 revealed that investments in renewable fuels had actually experienced a whopping 17% from the previous year.
More and more countries across the globe are now warming up to the idea of eco-friendly investments thereby facilitating their clean energy targets.
The global economy is actually saddled by various environmental and social constraints. In the wake of the growing pressures from both these sectors, the need for making sustainable investments is felt more intensely today.
Myth #3: I am only prioritizing my ethics not my performance as an investor
On the contrary, you can start going through the researches conducted in relation to the sustainable investment strategies (that include the traditional exclusionary approach).
You will not really be able to find any evidence implying that eco-friendly investments impact your performance negatively as an investor. Most of the studies will actually end up telling you that these investments actually have neutral or positive effect on your portfolio.
You can take your time to study these funds and select competitive funds that will actually go on to offer you the required edge as an investor because of their laser-like focus on desirable sustainability practices.
Some of the leading companies like Apple and BMW among others endorse sustainable corporate strategies.