This book provides a comprehensive understanding of clean energy funds (CEFs). It examines clean energy from two perspectives: environmental sustainability, aligning with the current and future global agenda, and financial viability, emphasizing its significance for investor returns, portfolio diversification, and resilience amidst financial challenges. The book begins by assessing the potential role of clean energy funds in addressing climate change. Covering the origins, structures, and functions of CEFs, the book critically examines the challenges that these funds face in achieving sustainability goals. These include volatility, regulatory uncertainties, and technology risks. The book then covers the regulatory landscape, market dynamics, and investor preferences to understand the changes in the investment landscape. It then provides diversification strategies for financial advisors to engage their clients in informed discussions about sustainable investing. Tailored for investment professionals, finance students, policymakers, and individuals interested in sustainable finance, this book will be a useful resource in understanding this new green finance tool.