April 19, 2008

life in financial markets: green investing?

In the global investment funds industry, since the last couple of years, funds dedicated to clean energy or green energy has attracted attention from investors worldwide. Ecologists question the veracity of the claims made by many green technology companies. The global funds too do not bother to check the veracity either. As a result, a lot of the investment in green energy funds do not really go on to save the environment. Anyway, something is better than nothing, and I wrote something on such funds, about a month back.

Green investing

Ecologically-conscious investors will likely give a thumbs up to a new investment avenue expected to come their way soon from Benchmark Asset Management Company, the only mutual fund in the country with specialisation in innovative passively-managed exchange-traded funds (ETFs) and the like. Benchmark Mutual Fund is awaiting a green signal from Sebi for four global scheme funds for which it filed a common offer document late last month.

Benchmark Global Clean Energy Fund (BGCEF) is the one that will attract the eco-sensitive investors while the other three, Benchmark Global—Private Equity Fund, Water Fund and Commodities Fund—will be relevant for all those investors wanting an exposure in global niche markets.

These global funds will invest primarily in international ETFs that are linked to indices whose constituents are publicly traded companies involved in their particular sphere of activity. For instance, the ETFs that BGCEF will invest in would be investing in indices such as Wilderhill Clean Energy Index (that is made up by small green technology companies in the US) and Ardour Global Index (that is made up of a mix of small and large companies from US, Europe, China and Japan).

Investing in global companies which work towards independence from polluting energy sources is not a pipe dream anymore. So, go green, go clean.


Ron Robins said...

I'm glad to have come across your blog and see your interest in green investing.

I've been following green and ethical investing for many, many years and have a site that might be of interest to you and your readers. It covers the latest global green and ethical investing news and research. It's at www.investingforthesoul.com

Good luck and best wishes, Ron Robins

Rajesh said...

Hi Ron, I have noted your website and will avail of the material from it (and you directly) the next time I get a chance to write on green and ethical investing.

I went through your blog too at http://enlightened-economics.blogspot.com/

I agree with you almost fully on the points you raise in your 27 Dec '07 post (http://enlightened-economics.blogspot.com/2007/12/consciousness-is-basis-of-enlightened_27.html). In particular, your observation on the maddening preoccupation with GDP. I see the same, with much more intensity, happening all around me here in India. The Indian consumer is as insensitive as the American consumer with regard to compulsive and obsessive consumption behaviour.