Or pick one of these eco-friendly funds

SELECTING individual green stocks to invest in is not easy – and the best way for most investors to get access is via a diversified green fund.

But for those who prefer shares to funds, UK green companies liked by experts for their longterm investment potential include energy supplier SSE ( big into windfarms) and engineering fluid specialist TI Fluid Systems that should do well as the electric car becomes more prevalent.

Jupiter’s Jon Wallace is a fan of chemicals company Johnson Matthey because of its expertise in full cell technology.

But the best green opportunities, say experts, lie in overseas stocks. Anu Narula, head of global equities at Mirabaud Asset Management, likes Danish offshore wind farm specialist Orsted.

But like many clean energy stocks, its share price has had a good 12 months (up some 36 per cent). This has resulted in investment trust Jupiter Green recently trimming its positions in both

Orsted and Danish rival Vestas Wind Systems.

‘A fifth of the portfolio was clean energy focused and it has delivered a third of the trust’s returns,’ says Jupiter’s Wallace. ‘We’ve now taken some profits and recycled the money into other themes.’

Key holdings in the trust include US energy management company Itron and Swedish recycling company Renewcell.

Sarasin’s Jeremy Thomas likes ‘enabling’ companies – businesses that are helping lay the foundations for a greener world. Among his favourites include French manufacturing gi ant Alstom and energy specialist Schneider Electric (also French).

But the BEST way to go green without getting caught out by any exploding share price bubbles is to invest in a diversified green fund or trust. The likes of Royal London Sustainable Leaders – ‘a good fund to get exposure to the broad sustainability theme,’ says AJ Bell’s Russ Mould – and Impax Environmental Markets.