This article tells you about Investment Scams. So, you have finally decided to contribute to the cause of environment conservation through environmentally-conscious investing. But, do you have any idea about the right avenues that are available for these types of investments?
If not, then chances are high that you might be taken for a ride by unscrupulous operators who just make tall claims and promises and have very little to do with environmental protection and conservation initiatives. If you fall for any of these, you might not only lose your investments, but may also end up financing the very same activities that you may have been targeting to stop in the first place.
Just like the dotcom boom and the consequent scams, the world of environmentally-conscious investing is currently attracting tremendous response from investors. Although it is a positive development, it also increases the risk that certain unscrupulous individuals or firms will try to cash in on the rising popularity of environmentally-conscious investing.
During the dotcom boom, even a small idea was enough to make investors part with their hard-earned money. The same is currently happening in the world of green investments. Although the occurrence of green scams has been relatively less, we would still recommend that you be careful while accepting offers from unknown sources.
Some potential green investment scams, like the ones that might be flooding your inbox and your spam folder, are relatively easier to spot and avoid. But, how are you to react when, for example, you get a phone call or when one of your friends or associates informs you about a new environmentally-conscious investment scheme?
Well, the first thing we would like to tell you is that you need to simply ignore the source from where you are getting the information. The source is irrelevant because you just cannot make an investment decision based solely on who informed you about the investment scheme. How could you tell if your friend or any other person is not in the same boat as you?
What you need to do instead is give the same treatment to all green investment offers that come your way. That would involve spending some time on researching the investment firm, its history, and its present scope of operations. A quick search on the Internet is often enough to differentiate between a genuine green investment offer and a fake one.
Another way to spot a potential scam is to go thorough the entire details of the offer. If it has something like – “triple your money in two years”- you would know instantly to dump the same in the dustbin. A genuine offer on the other hand will provide verifiable details on the scope of investments, risk factors and compliance status in relation to federal rules and regulations.
One way of avoiding the hard work that goes into spotting a fake green investment offer is to park your money with reputable green mutual funds. These funds are managed by professionals who are quite adept at differentiating between fake and genuine green businesses.
These professionals also make sure that your investments are routed to the best available investment avenues, those that not only support environmental conservation, but are also profitable. Through green mutual funds, you will thus be able to make the most from your environmentally-conscious investment initiatives.