The perception is that going green costs money, so that hits profits and makes investing in green companies a risky business. The ethical investor is thought to miss out on the more lucrative short term cash generators that service the income based investment sector. While that may be difficult to refute, the ethical or socially responsible investor has choosen to forgo such in order to promote a more sustainable world. That does not mean that profit is is dirty word, its just not 'profit at any cost'.
Times are moving on. Cleaning up you act is big business. Legislation is favoring the low carbon energy generators. Businesses are lowering their carbon footprints and shouting about it. Electric cars are about to hit the road in numbers. The cost of getting the next and probably final batch of oil from the ground, in deep water or protected habitats is beginning to stack up in dollars as well as environmental damages.
So the green investor does not have to be just a long term speculator. Income is starting to come from green technologies. The savvy green investor can take a medium to short term view and expect returns in line with open portfolios.
The options open are to look at the various sectors involved in green. Check out the existing green or clean-tech indexes for the companies are already identified as leading the way. Then select the individual green companies of invest in a green fund. You can select from a Green Mutual Fund or a Green Exchange Traded Fund. Many have already been established and many more are in the pipeline.
Each fund will have its own ethos that will define how green or ethical its stock holdings will be. Some may simply avoid tobacco, defence or oil. Its up to you to define your own ethical position and then select the fund that matches your requirement.
Ordinary main line investors are looking for profits in emerging markets. By combining green with emerging markets you could maximize you earings and growth potential.