If, like us, you believe that investing in water is a sound investment decision, you may be wondering how to invest in it. This is an important question as money cannot simply be made from bottling water straight from the kitchen tap.
Luckily, there are other routes that can be followed. The most direct approach is to purchase water rights. Doing so means to buy access to a water supply. Money can then be made from charging others for access or by selling the same water right in future at a higher price.
One of the more conventional ways to invest in water would be to purchase shares in a company whose very business is water. This would be a firm that installs water pipelines or perhaps a business that improves water quality. The theory behind investing in water utilities, or such like, is that the company will be valued more highly in the future due to higher demand and, therefore, its share price will increase.
Finally, investments in water can be made through purchasing part of an ETF or an Exchange Traded Fund. This allows investors to track an index that follows water companies and utilities. The notion behind this approach is similar to buying stocks and shares in specific water firms. However, as an ETF is a proxy for investing in all businesses in an index, it helps mitigate some risk due to following that many more firms.
At Hanover Investment Capital, we offer a leaseback agreement investment into an artisan water project. This means we have both access to water itself and the means to bottle and distribute. Customers purchase contracts that start from £5000 and receive 5.29% back each year as income. At the end of five years, there is the option to sell back the contract at the original price.