These days there are plenty of funds that market themselves as being "socially responsible" by investing only in the stocks of companies that are green or environmentally responsible.
That's all fine, but I'm wondering if it's just a marketing trick. See, the fund buys shares in the secondary market, i.e. from other investors. This money that I invest, it never actually ends up in the company but rather in the hands of other investors from whom the shares are bought.
So if I invest "responsibly" and pick a green fund, that doesn't actually mean that my money is used for green or responsible projects, correct? It seems like just a marketing trick - if it is not, please tell me phase by phase how my money actually ends up in the use of the so-called green companies.