With green investing becoming more popular, many people are looking for ways to diversify into green holdings — and even diversify within their green holdings. One way to do this is with green funds and indexes. And a green fund that is doing fairly well, considering the stock market performance over the past year, is the Green Century Balanced Fund (GCBLX). GCBLX chooses from stocks and bonds from environmentally companies, according to the fund’s objective.

GCBLX has been losing value but it was up Friday, and The Street reports on how the fund has performed relative to other investments:

While the green balanced fund has suffered negative returns over the difficult recent 12 months, its setbacks have tended to be less severe than those of the general stock market, as measured by the S&P 500 total return index.

This is encouraging. For quite some time now, green investments have been seen as "risky" and too new to be considered "safer" than the average run of investments. Now, though, things appear to be changing. The Green Century Balanced Fund offers a mutual fund with modest growth that can contribute to a well-balanced portfolio — and green it up a little bit.

However, it is important to remember that all investment carries risk, and things could change quickly if the companies in GCBLX lose a great deal of value.

Disclosure: I am considering investing in GCBLX, while the price is fairly low.

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