Green energy investments are inevitably risky, and involve a significant possibility that you will lose all of the capital you put into the investment. On the other hand, they also offer the possibility of significant gains, as a company which was previously unknown goes on to become a big player in one of the largest and most important industries on Earth. It is also possible to spread your risk by investing in mutual funds, and there are mutual fund providers which specialize exclusively in green investments for both ethical considerations and the possibility of gain.
One of the safest ways to invest in new energy sources is one which is often overlooked, and that is simply to invest in the major oil companies. These huge businesses are not about to disappear and go bankrupt tomorrow, as the products they are selling now are still essential for industrial processes in the present day. They realize, however, that if they stick to selling fossil fuel related products forever that they will eventually be driven out of business. They are investing a significant percentage of their money in the new fuels of the future and are employing researchers to continue the innovation.
There are also many opportunities to invest in smaller companies which are at the forefront of the development of new technology. These companies are involved in improving the technology which is used in solar panels and wind turbines. In solar panels, for instance, modern technology is only able to use less than a fifth of the rays of the sun which shine on them. This needs to improve dramatically if solar power is to be a serious contender for our future energy needs. There is a company in America which claims to have developed a panel which is over twice as efficient as any yet used.
If this company, which is funded from Germany, had been on your list of green energy investments, there is every chance that you would now be in the running to make a substantial profit. Being able to call such investments accurately is, of course, something which is beyond the capability of even experienced market analysts. While there is no harm speculating with money which you can easily afford to lose, most investors are not in that position. They need a safer haven for their investment capital, and this can be difficult to find in a high risk business such as green energy.
The best answer in usually to invest in mutual funds, because the investment capital is spread across several investments. The funds are structured to give you the greatest amount of freedom possible, while still maximizing your opportunity for profit. There are many ordinary mutual funds which will give you the freedom to invest in green energy stocks, or you can choose to invest in a specialist mutual fund which will only offer this type of investment. Whichever way you choose to invest, you can benefit from the opportunity to have your savings build up tax free, as long as you keep the money in until you reach retirement.
If you decide to try green energy investments, you will need to be able to keep up to date with all of the latest developments in both the financial markets and the green energy industry. The financial markets are now easy to monitor in real time, even on a desktop computer in your own office. Unless you are planning on following an ultra-conservative buy and hold strategy, you will benefit from having access to just such a feed. The Internet is also the best source of information on green energy investments.