Posts

Why Sustainable Investing matters

Image
As we continue to see a rise in the range of global sustainability challenges and complex risks, investors are beginning to re-evaluate traditional portfolio approaches. Sustainable investing, often times also referred to as socially responsible investing, is the process of incorporating environmental, social and governance (ESG) factors into investment decisions. As the term ‘ESG’ suggests, its scope go well beyond environmental concerns alone. It also includes the following: •    Environmental: Climate risks, clean energy, addressing resource scarcity •    Social: Diversity, human rights, and cybersecurity •    Governance: Business ethics, transparency, and anti-corruption Individuals that typically invest in companies, organizations and funds with the purpose of generating measurable social and environmental impact alongside a financial return fall in the bracket of sustainable investing. What this kind of investment typically results in is a widespread impact across various

How does the capital investment work?

Image
Capital Investment refers to money or assets which a company uses to achieve and further its business objective. Take for example when an individual or a financial institution makes an investment in a business. A sum of money is handed over as a loan or in return for a promise of repayment or a share of the profits down the road. In this sense, capital means cash. A company can seek capital investment from any sources like venture capital firms, angel investors, and traditional financial institutions. The capital is to be used to further achieve and develop its targets and ultimately, helps to increase the firms’ value. Looking at the various sectors for the last decade, renewable energy had shown a significant rise in its investment trends. The major portion of these investments is the capital for solar. Following pie-chart shows global renewable energy investments over the decade (2010-1019). Thus, it can be said that solar is a well-preferred choice for investing firms. Business

Types of Long-Term Investment Options

Image
Long-term investments are financial instruments that you hold for more than a year. Most investors hold these investments for several years at a time, building them into portfolios with a specific strategy, such as  provident funds and long-term savings accounts. However, common long-term investments gain value slowly but predictably, making them better assets to hold over several years.  At Distributed Energy, we focus on long-term, private renewable energy investments . As an investor, you can benefit from automatic diversification, reduced minimums and dependable cash flows. One of the main concerns for any type of investing is market volatility. Volatility measures the degree to which prices change over time. Another way to think of volatility is in terms of price fluctuations. The greater and more frequently an investment's price deviates, the higher its volatility. Investments with high volatility have a high degree of risk because their prices are unstable. The a