Green investment taken seriously in the City

22/05/2009

City investors used to view green investment funds as a ‘fringe’ investment and, in turn, as rather unprofitable. However, this is all changing and major investors are beginning to realise that ‘green’ can also mean ‘returns’.

Although there are many large funds offering investment in renewable energy projects and other large-scale environmentally-friendly projects, private investors can also cash in by investing in trees.

An increasing number of individuals are opting to invest as little as £5,000 to £10,000 in a plot of land on which trees will be grown and, after a number of years, harvested.

Some woods such as agarwood mature within six years and offer returns on investment of a healthy 23.58%. Other trees such as teak are grown for around 20 years, offering a longer-term investment and returns of around 21.30%

These kinds of long-term, low-risk investments are perfect for holding in a child trust fund or used as part of a pension. They are relatively immune to economic variations and the trees can be harvested any time after they reach maturity, lending great flexibility to the investor.

It is now easier than ever to invest in forests with firms offering a variety of funds aimed at all levels of investor.