| An investment advisor is someone who takes his | | | | economic, environmental and political news is |
| or her extensive knowledge of the stock market | | | | important as well. What Should I Avoid? |
| and financial arenas and tells others what stocks | | | | You are acting in the role of advisor so you |
| are worth investing for their trading needs and | | | | should avoid preaching to your clients. While it is |
| which should be passed on as too risky for the | | | | good to feel passionately about something, it is |
| investment amount. | | | | not good if you have alienated most of your |
| An advisor will not make the final decisions for the | | | | clients with overzealous outbursts against a |
| investor; only offer strong cautions or | | | | company, without careful analysis. What is the |
| recommendations. A green investment adviser is | | | | Market Size or Growth Potential? |
| one who takes those cautions and | | | | This field is virtually unlimited, especially as more |
| recommendations just a step further by | | | | and more people lose their investment |
| suggesting only the companies that engage in | | | | opportunities at work but still want an investment |
| ecologically aware practices or those that are | | | | fund for their retirement. Even more important is |
| more socially responsible. However, the level of | | | | the green aspect as more people become |
| this social responsibility may vary among | | | | increasingly socially and environmentally aware and |
| investment firms and from company to company. | | | | demand this same consciousness from the |
| Light Green Advisors (LGA) suggests products | | | | companies with which they do business with. Who |
| such as mutual funds that include the Eco Index | | | | are the Competitors? |
| and the Environmental Leadership Trust. The | | | | Other investment firms are going to be the most |
| former is a "broadly diversified, passively | | | | obvious competition that you will face. However, |
| managed index based on the Standard and Poor's | | | | you will have to make sure that are not only |
| 500 with 320 companies that have average or | | | | knowledgeable in ecology, but customer service |
| above average environmental performance from | | | | as well. What are the Risks? |
| all industry groups except tobacco. The latter | | | | Every investor will make a bad investment every |
| comprises 30 S&P stocks in most industry groups | | | | now and then and will immediately blame his or |
| which many include firms that face environmental | | | | her advisor. No matter how carefully the research |
| challenges but are managing their risk." (Social | | | | has been done, and how the financial projections |
| funds) What Skills Do I Need? | | | | have gone, there are always unforeseen events |
| Being an experienced financial or investment | | | | that may lose money for the investor. The very |
| advisor is a good way to start, as is being well | | | | nature of the market is one of galloping |
| versed in green practices. Keeping abreast of all | | | | unpredictability. |