Grünfin is part of a new breed of green fintech companies that are driving capital towards positive impact.
Today, governments’ lack of decisive action seriously compromises the ability of future generations to thrive on the planet. While some industries have a more obvious link to the environment, financial services can actually play a crucial role.
Part of the green finance movement is using novel investing strategies to complement and support climate action by driving funds towards companies that show their commitment to climate goals.
We launched Grünfin to tackle not just climate change but also address other issues that are part of the United Nations’ global goals, such as inequalities and global health.
Here are five reasons why you should consider investing in sustainability with Grünfin:
- “Greening” your finances has a huge impact on your carbon footprint
- We’re trying to make it as easy as possible, even for beginners
- You can invest based on your values
- Our unique pricing is aimed at aligning our interests
- We’re entirely focused on sustainable investing
Get started investing with us or read more about each of the five reasons below.
1. “Greening” your finances has a huge impact on your carbon footprint
Shifting savings to sustainable assets can have a more than 20x impact on your carbon footprint than giving up flying, becoming a vegetarian, and moving to a renewable energy provider combined.
It means that “greening your finances” is a hugely important part of lowering your carbon footprint. The problem is, not too many people know about it.
We’re far from telling you to drop all the other ways of lowering your carbon footprint. Instead, we’re pleading with you to have a look at your finances.
If you’re already doing a lot to make sure you contribute to a better world, why not help your money make a difference as well?
2. We’re trying to make it as easy as possible, even for beginners
Even though having a green mindset is nothing new these days, there’s still a severe gap between people who’d like to invest sustainably and who eventually do. We think this is because of the complexity involved – sadly, it still takes an expert to find truly impactful investments.
Grünfin aims to overcome the lack of expertise that often prevents people from investing their savings responsibly.
We’ve essentially trimmed it down to asking for your risk preference (which typically depends on how long you plan to invest), the theme of your portfolio based on your personal values, the time period and your contribution. Our investment experts and tech handle the rest.
Our selection principles are sophisticated enough to satisfy experienced investors, but you don’t need to know the details to start saving money in a socially responsible way.
3. You can invest based on your values
We all have social issues that we care about: the environment, equal opportunities, or global health. But do they reflect in your investment decisions?
We’ve made it possible to tailor your portfolio towards the themes you care most about.
But also, you don’t need to pick just one theme. For a wide-based portfolio, you can select all the available themes and Grünfin will invest your money in instruments that promote your values.
In selecting exchange-traded funds for our portfolios, we’ve made sure to focus on impact as well as financial performance to guarantee you’re getting the best of both worlds.
4. Our pricing is aimed at aligning our interests
Starting with Grünfin is free. To bring sustainable investing to more people, we’re not charging any fees before your portfolio value reaches €1000.
So often, the prices of investment products are set up for maximum profits – for the company. Even the typical percentage-based portfolio management fee that most companies charge does not depend on your portfolio’s performance – whether your portfolio is doing well or not, you still pay.
We’ve tried to address this in two different ways.
Firstly, we believe that a flat fee is transparent and straightforward. This is why we charge the same monthly fee – €3.90 once your portfolio reaches €1000 – regardless of how big your portfolio is. It means that the larger your portfolio grows, the smaller your relative fees are. This is especially great for long-term investments.
Secondly, most investment products make sure to get paid no matter if your portfolio is gaining or not. We charge 15% on the amount that exceeds the target – and nothing if we don’t hit the mark. This helps to make sure that we’re aligned with your interests. Read more about our fees.
5. We’re entirely focused on sustainable investing
Unlike banks and brokers that advertise sustainable investing on the side, we’re committed to focusing on sustainability.
When defining sustainability in finance, people usually refer to ESG (environmental, social and governance) factors. But there are many more flavours of sustainable investing, and the impact delivered by sustainable ETFs (exchange-traded funds, which is what Grünfin offers) can vary hugely.
For example, only 3.6% of funds worldwide have set impact as an objective alongside financial performance. Moreover, only 0.5% are aligned with the Paris Agreement goals.
Also, ESG factors don’t necessarily reflect how active an asset owner is in exercising their voting rights to ensure the companies it’s invested in promote sustainable practices.
We make a conscious effort to find the fund managers and ETFs focused not just on the financial returns but also on the impact of their portfolios.
Grünfin is a financial product. Before investing, make sure you’ve understood the risks.