“Go Green” is more than just a trending motto.
It is a serious cause, and Millennials and Gen Z alike, are committed to this cause.
In fact, going green is so important to young investors, that it has successfully found a place in the world of investing as well!
Today, we’ll talk about what it means to go green in investing and see some of the key features and benefits of green investing for young investors in India.
Green investing is also known as sustainable investing or socially responsible investing. It is a form of investing that allocates your money towards funds from companies that hold sustainability, environmental responsibility, and ethical practices high up in their list of priorities.
In the most fundamental sense, green investing is a conscious approach to investing that seeks to generate financial returns for investors, while parallelly promoting positive environmental and social change – something that is very appealing to the socially conscious investor (so… hopefully all of us!).
There are some features that are unique to green investing that add a lot of value to the investments in the mind of an investor. Here are some that you should absolutely know about –
(Note: Both these points can fall under ESG investing – a related investment option for you to check out!)
These features are responsible for the growing popularity of green investing in India. During the period of 2017 to September 2022, 15 Indian corporates have issued green bonds of value ₹4,539 crore (Source: ET) – and this is just the public investment sector!
So, it is safe to say that this number is going to rise for the foreseeable future (as more and more young investors like you start taking over the market share!).
With these staggering numbers, and promising projections, it is crucial that you – the investor – understand the benefits of green investing. Here are some important benefits that we think might be appealing to you –
Young investors are going green with investing because they are tuned into the fact that as society continues to prioritize sustainability and ethical practices (much like these investors themselves!), companies that excel in these areas are likely to attract more customers and investors. The awareness and consciousness of young investors can easily be credited to being the driving force that has made green investing a whole new sphere of financial markets.
By getting involved early, you are positioning yourself to secure your financial future, and also contribute to the positive future of the environment and even society as a whole. We like to think that just like investors benefit from compounding in the long run, so will the planet, with the right investors, making the right investments, at the right time!