With the previous steps you have hopefully been able to make your sustainable investment a little more concrete. Now it is important to research suitable systems that yours reflect preferences as best as possible.
The keyword here is: diversification. With diversification – i.e. the spread of your investments – you spread your investment amount across different asset classes, for example shares, real estate or commodities.
When you diversify your wealth, invest in different asset classes or themes simultaneously. The main thing here is to select investments with different risk classes. In this way, the risks of the different investments can offset and absorb each other.
But even investors without a high risk tolerance can diversify their portfolio: Even if you distribute your assets across various low-risk investments, you will benefit from diversification to some extent.
Investment funds are a good way to diversify your money widely without much effort: funds spread their investors’ assets across different assets at the same time. A sustainable renewable energy fund, for example, can invest your investment amount in various wind farms or solar parks. This is how you can save your fortune with a single investment spread widely and thereby reduce the risks.