The world is increasingly looking to transition to a greener lifestyle, by strategizing and coming up with yearly plans to reduce carbon emissions. India, for example, has set a target for 2070 to achieve net zero carbon emissions. Investing in renewable energy can help investors benefit from the increase in demand of renewable energy stocks in India. The Renewable Energy sector in India is growing rapidly, and a lump sum investment in renewable energy companies can help investors grow their wealth considerably by benefiting from this sector’s growth.
Table of Contents
How can an investor benefit by investing in lump sum in renewable energy companies?
The stocks that are categorized under renewable energy stocks in India fall under several sub-categories such as solar energy stocks, and wind energy stocks. They specialize in clean energy technologies such as solar panels, wind turbines, and hydroelectric dams. Investing in these stocks can offer four major benefits to investors:
- Renewable energy in India is a large and diverse sector: The renewable energy sector in India consists of various sub-sectors such as clean energy, solar energy, wind energy, hydro energy, geothermal energy, and bioenergy. Green energy stocks are stocks of companies that produce renewable energy such as solar, wind, hydro, geothermal, and bioenergy. Solar energy stocks are stocks of solar energy companies that produce solar panels and provide installation services for residential, commercial, and utility-scale solar projects. Besides these categories, the renewable energy sector consists of wind energy, hydro energy, geothermal energy and bioenergy stocks.
- Investors can drive positive environmental change by investing in renewable energy companies: Investors who wish to be at the forefront of the shift to clean energy can invest their capital in lumpsum in the renewable energy sector. They can drive positive environmental change by investing their capital lump sum in this industry.
- The world’s energy demand is increasing, and countries are looking for greener alternatives to fossil fuels: Governments around the world are looking to transition to greener alternatives to fossil fuels and meet their respective net zero carbon emissions goals. Investors can pick a sub-category of stocks in the renewable energy sector – wind energy, for example – an invest in it lump sum to benefit from the increasing demand in wind turbines in the Indian market. Wind companies in India also offer installation services for onshore and offshore wind farms; and investors who invest in these companies can directly benefit from this increase in demand.
- Investing in renewable energy can help investors diversify their investment portfolio: A key advantage to investing in renewable energy companies is the diversification of one’s portfolio. Investors who invest in the renewable energy sector can benefit from this diversification and thereby reduce the overall risk to their investments. Starting Mutual funds in renewable energy is a good start for long term investment.
Investors can use a lumpsum return calculator to calculate their overall returns at the end of a lump sum investment in renewable energy. They must fill three fields to know the same – the total investment amount, the expected rate of return (in %), and the time period (in years).