I promised you answers; here they are.
Like normal investing, Green Finance has various options depending on your interest, risk appetite, while considering the purpose, tenure, and the amount of money you want to invest.
Sovereign green Bond
The first channel through which you can invest in Green Finance is by buying Sovereign Green Bonds. If you are starting and you want to play it safe, you can consider them. They start from 5 years to 30 years of bond.
If you are interested in long-term investment with a low-risk appetite, you can consider these bonds. They are similar to other government bonds; the only difference is that the money raised through these bonds will be used for green projects to promote sustainable development. But they yield fewer returns.
You can find these bonds at the RBI details direct portal and participate in the auction. By using a non-competitive bidding facility, you can place a bid without specifying a price and ensuring allocation. If you are more comfortable using a brokerage platform such as Zerodha, Grow, like me, you can buy units of shares just like stocks.
But if you are someone who wants to yield more interest and has a higher appetite for risk, there are a few other options for you, such as ESG Mutual Funds, Renewable Energy Stocks, or REITs with a green focus.
ESG Mutual Funds
In recent years, growing awareness around sustainability and climate change has reflected a significant growth in ESG Mutual Funds. ESG Mutual Funds are Environmental, Social, and Governance Mutual Funds, functioning similarly to regular mutual funds. The only difference is that they focus on investing in companies that are working towards environmental causes and sustainability.
Top performing ESG funds in India currently include Kotak ESG Opportunities Fund with roughly 26.98% returns in the last year, Axis ESG Integration Strategy Fund, and Aditya Birla Sun Life ESG Integration Strategy Fund. If you are someone who is looking for investment options in mutual funds, you can consider these 3 mutual funds.
Renewable Energy Stocks
To invest in these options, you don’t need a large sum of money. Renewable Energy stocks are the equity or shares of the company that are progressing towards projects like solar and wind. These companies can be either working on these projects or promoting other companies in these projects by providing equipment, raw material, or any other kind of support. Companies that are manufacturing EVs (electric vehicles) are also considered in the green projects. Top performing renewable energy stocks in India 2026 are Adani Green Energy Ltd, which is currently focusing on major utility-scale solar and wind projects, Tata Power Company, which is diversified with solar and EV infrastructure, and Indian Renewable Energy Development Agency Ltd (IREDA), which is a government-backed institution financing renewable projects. To purchase these stocks, you can search for the names of these and other renewable companies on a brokerage platform. They are easy to purchase and sell.
These are the 3 basic investment options in Green Finance you can start with. As you move forward, the risk will gradually increase. If you are someone looking for something more to diversify your portfolio, wait for part 3. Article 3 will bring new options that might interest you.
If you missed article 1, start here first. Article 1
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