6 Reasons to Invest in Renewable Energy Projects
Some people believe that the only way to invest is buying stocks and bonds, as they believe these 2 options are the safest way to put your funds. However, that is not really the case nowadays. The same golden rule applies the world over and that is not to put “all your eggs in one basket”. Most money managers would agree ‘wholeheartedly’ with this sentiment.
So what most people are realising is that a well-diversified portfolio is the best way to get the maximum results for your pension pot. And it is not just the major money managers who understand this concept, now even the dog in the street knows it. So by expanding the range of asset classes one invests in, investors can increase returns and at the same time reduce risk by spreading their portfolio.
So What are the Alternatives?
So what kind of genuine alternatives are there in the marketplace for the private investor? In some respects, there is an endless choice of alternative investments, but that definitely does not mean that all options should be considered when having a discussion about the best ways to invest.
A Genuine Alternative
If you do an online search you will find many examples of alternative investments. While some people may have done well from investing in classic cars, rare stamps, coin collecting, student accommodation and other investment alternatives, there are plenty of risks involved. These assets tend to be illiquid i.e. They are hard to buy or sell in the open market especially when the market is so small.
Not Just for the Big guys
There is another asset class that has continued to grow exponentially over the past decade and continues to show double digit growth for the next 20 or 30 years and beyond and that is Renewable energy assets.
The “Smart Money” is investing in the sector too but that does not mean it is exclusive and out of the reach for the average investor, it just means that the sector continues to outperform other asset classes making it easier to achieve long term financial objectives.
The investor community ‘amateurs and professionals’ together now consider Renewable energy asset classes to be one of the “Best Investments Long Term”.
Renewable's are Growing Fast for a Reason
It is not hard to see why Renewable energy has exploded in the past decade. One major factor has been the drop in the price of Oil which made Renewables more affordable, coupled with the ever increasing Global warming and climate change, there was a real desire to find alternative energy sources to oil and gas that would also be sustainable to the environment.
Institutions and individuals who seek to diversify their portfolio and enhance risk adjusted returns are so keen on Renewable Energy Investments as an addition to their existing portfolio’s.
But, just because Renewable energy is the future does not mean that investors should forget about proper due diligence. When looking at the upside, investors should also consider the risks involved.
Find the Right Partner
For example you might be doing some research on-line looking for ways to invest and to put your capital to work for you. Some firms make outlandish claims that you can earn '000% returns in less than 3 months, but is that actually true? In our case we stick to the facts and back it up with hard evidence, we spend a lot of time identifying the right Renewable assets and qualify everything with robust research so in the end there is little doubt.
Security Comes First
Right from the outset transparency is key to any relationship, what is the company structure, what are the fees, are there any hidden fees I should know about, what are the realistic returns I can expect to receive, what are the risks involved. These are all good questions that you should have answered by your Adviser so you can establish a mutually beneficial long-term relationship.
Why not talk to us?
There are many things to bear in mind when investing, what information do I need to provide in order to proceed, what resources do I have, what are the risks involved.
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