Green Equity

Green Private Equity
This post is basically an outline for investors new to the “green” investing industry with a focus on green equity and green private equity (the difference is explained later on). Investment equity is referred to as the trading of stock market shares with the intention of seeing a rise in the value of the stock as it directly affects the dividends and capital gains. That’s quite complicated to understand for some beginners but basically your buying the stock hoping that you will recover your initial investment through dividends in addition to gaining on the new higher value of the stock by selling it. Once your familiar with what green equity is you may also want to see this article I’ve written on green funds.

credit: mujitra

What are green equity investments?
They are viable solutions for green investors who are interested in greater returns than savings. The most popular type type of equity investments is a government run portfolio that provides funding for small business that are developing technology for a greener tomorrow. Venture capitalists spent $0.3 billion more than they did last year in socially responsible companies (green investments). That being said, corporations have started a new phase (the going green phase), where they are trying to find anything to call themselves green.

Equity loan and finance
I only recommend equity loans to experienced investors. When taking loans or going into debt to make an investment it can be a huge risk. Its better to calculate the risks and possible outcomes before jumping into an investment. The typical repayment period for equity loans is between 5 and 30 years depending on the issuing party. Also dont forget that the interest you pay on the equity loan is tax deductible (investopedia).

Any investors planning on investing in green equity have lots of options. “green” equities span everything from renewable energy to cost effective technological breakthroughs. It depends on what the current market hype is focused on. Spread your investments to lower your financial risk, and remember to be cautious when making a large financial decision.

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