How to Strike 'Green' Gold

Where to Look for Green Investments

Where you turn can be a big factor in both the returns you get and the impact your company makes. That's because investing in green companies adds a whole new element to the investing game. Not only do you have to analyze the stock market side, but you also have to take a look at the company's business practices to determine whether or not they will match your interests. As an investor, you'll have the option of choosing individual stocks or investing in socially responsible indices and funds.

Individual stocks provide you with a good deal more flexibility than a managed fund or predetermined index (see index fund ). Conversely, individual stock-picking requires a good deal more homework. And, if your cause is more obscure, then developing your own socially responsible portfolio might be a lot more effective than buying into something that already exists but doesn't address all of the issues that you're passionate about.

Socially responsible index and mutual funds (including ETFs ) are becoming more and more popular. If you're thinking about investing in a socially responsible fund, there are resources online that can provide you with a competitive overview of the funds that are available to you. One of the best places to check out online is SocialFunds.com. The site provides investors with detailed information on virtually every major socially responsible fund out there, including its performance data and the social issues the fund addresses.