Investors ignore ‘green’ stocks
Only 5 per cent of Australian investors invest in green funds, with more than 36 per cent of people surveyed believing that ‘green’ funds make no difference to business behaviour towards the environment.
These are the findings of a survey of more than 1000 Australians by independent research company CoreData.
Of those surveyed, almost 28 per cent believe that green funds have a low impact on influencing environmental protection.
Forty-three per cent of investors expected returns of 7 to 10 per cent per year, and 22 per cent expected returns of 4 to 6 per cent per year. Fifteen per cent expected higher returns of 11 to 15 per cent per year. The majority of green investors have less than 30 per cent of their portfolios allocated to environmental funds.
The majority of investors would disregard green funds if they offered low returns, with almost two-thirds of investors in a hypothetical scenario choosing regular stocks with 15 per cent returns over environmental stocks with 6 per cent returns.
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