Environmental fund

Environmental fund

A mutual fund that invests strictly in stocks of companies that are environmentally friendly and/or have the goal of environmental betterment. The investors are trying to support and profit from opportunities related to the environmental movement.

Green Fund

A mutual fund that invests exclusively in securities in environmentally-friendly companies. Different green funds have different methodologies for determining what constitutes an environmentally-friendly company. Some may avoid certain industries (notably oil and gas) entirely, while others may look at the environmental records of particular companies. Each green fund describes its methodology in its prospectus. It is also called an environmental fund.