Spice up your investments if you’re looking for sustainability. That’s the advice in the November issue of Stiftung Warentest’s magazine. “The aim is to diversify investments as widely as possible in order to increase opportunities and minimize risks,” the magazine wrote.
That’s not new advice, of course. But the magazine’s editors also provide readers with a tool to match funds with the products investors are interested in supporting.
They suggest international, broad-based investing in equity funds and possibly purchasing special funds to add new possibilities as well as hedges to the mix of one’s portfolio.
Using exchange traded funds, or ETFs, is wise move because it follows sectors that interest investors without incurring fees associated with more hands-on managers. “Swap a managed world equity fund against an ETF world,” the editors wrote.
One might also focus on other niche areas, like small German companies or firms in emerging markets, in order to balance out one’s portfolio. The magazine contains ideas for funds from Brazil to Taiwan.
The issue also includes insights on investing in public wind farms as well as advice about how to make the most out of pensions and other income as one’s golden years approach.
Investors needed to put aside their rose-colored glasses when choosing their investment options. On German community-owned wind farms, for example, the editors’ advice was to be cautious.
“Investors participate in companies that build and operate wind turbines in their environment,” the magazine wrote. “But does reality correspond to the ideal? Finanztest has looked at six recent offers – and found some snags.”