The renewable energy market is growing steadily, and it is getting a lot of attention from investors. As you are reading this then you are one of many people right now looking to put renewable energy into their portfolio! This industry as a whole is currently receiving a huge amount of capital via a number of investment tools, such as initial public offerings, private investment initiatives, and government funding. Companies dealing with various types of renewable energy like solar, wind, geothermal, tidal, and biomass are seeking to raise capital to fund new inventions and initiatives. Renewable energy mutual funds are a great way to participate in the promotion of clean energy and receive a long-term substantial return on your investment while you are at it.
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It is wise to consider investing in companies that are established when dealing with the renewable energy market. Doing so is much less risky than putting your money in small start-ups. Some examples of established companies include: Johnson Controls, Sharp Solar, Waste Management, and GE. Also, you might want to consider investing your money in companies that participate in the Climate Action Partnership, which includes companies lobbying for carbon dioxide emissions reduction worldwide. Examples of these are DuPont, Caterpillar, GE, Alcoa, PG&E, Duke Energy, FPL Group, Lehman Brothers, BP, and PNM Resources.

You can look out for new renewable energy mutual funds that are just beginning to form. Current examples of such funds include Guinness Atkinson Alternative Energy Fund and the New Alternatives Fund. Also, check out ETF’s, which are exchange traded funds that you can sell and buy similar to stocks. Examples of these are PowerShares WilderHill Progressive Energy and Clean Energy, First Trust NASDAQ Clean Edge US Liquid.

So whether you want to put your money into green mutual funds, individual compaines or both, keep these tips in mind, and make sure you do lots of research. Knowledge isn’t everything in this, what is at times, unpredictable game, but the more of it you have, the better your chances.

For more information, go to:
en.wikipedia.org,
alternativeenergymutualfunds.org

Let’s face it – oil and other fossil fuels are not only harmful to our planet, but they will not last forever. This is why a big part of the investment world is looking increasingly to renewable energy. There is tremendous interest among investors, as many wonder exactly how to invest in renewable energy mutual funds and invest in renewable energy companies. Now you can participate in the transformation of our planet by investing in various alternative energy sources, such as solar, wind, biofuels, biomass, geothermal, ocean energy, etc. Here are some valuable tips on how to invest in renewable energy mutual funds and how to invest in renewable energy companies.
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The New Energy World Network (also referred to as NEWN) recently commissioned research, which found that about 90 percent of private equity, venture capital funds, insurance, and pension funds want to have a certain amount of exposure to clean technology, renewable energy, and investments related to sustainability. Over two thirds stated that they have either made green investments or will do so within the following three years.
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3 – Sector Allocation

Investors should look for a low allocation to solar stocks and a high allocation to stocks related to energy efficiency. Hydro, geothermal, the electic grid and alternative transport are considered to be good sectors and the best performing mutual funds probably have these sectors in their portfolios. They most often than not, however, make up a small percentage of mutual fund portfolios. Some green funds have an allocation to “other,” and this should be as small as possible, as this represents compaines that have operations that are not clean green energy related.

4 – Value

Renewable energy is a growth sector, as it is fairly new and building up from a small base. This however does not mean that green energy has no value stocks. In the market as a whole, over the long term value stocks have regularly beaten growth stocks, and I am sure that this will continue. Mutual funds that emphasize value stocks are therefore preferred.

Of-course, no one mutual fund will ever be objectively the best in terms of all of the above factors. Your choice all comes down to priorities. What is most important to you – purely the cost? (in which case you should then be looking at the ETF option), or is it the balance of allocation and diversification? Determine your priorities, and then you will be in the best position to find the mutual fund which is best for you.

For more information, go to:
alternativeenergymutualfunds.org,
en.wikipedia.org

Sick of the numerous fees that super-earning mutual fund managers get to put towards their new BM? Well then you are not the only one, and for that reason many investors have turned to EFT’s. However, it is important to keep in mind that unlike many standard mutual funds, the evidence suggests that in the renewable energy sector the active management of mutual funds means that they outperform ETF’s. The top alternative energy mutual funds can be a great bet for investors “with a conscience” or simply for investors who think that they are a good bet.
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In terms of electric grid stocks, nearly 8% of its portfolio is invested in them, which is higher than the majority of other green funds (principle 1). Green building is an important part of the Winnslow fund’s portfolio, something that other funds don’t emphasize, which means that the fund has a good allocation into energy efficiency (principle 3). This is possibly the most important of all the principles. The Windslow fund also has over 6% of its portfolio invested into transportation (principle 4) and a low allocation to producers of biofuel (principle 2), although it must be said that its biomass allocation is mostly nothing more than metal recyclers.

So if green energy mutual funds are your thing, I recommend that you research further into the Winslow Green Growth Fund. Remember, when chosing such a fund there is much more to it than just analysing the performance of the fund in recent times – you must also be aware of the fundaments of the alternative energy sector, and where it is heading in the short, medium and long term.

For more information, go to:
en.wikipedia.org,

Calling all socially aware investors! I have found out which mutual fund has applied what I consider 5 of the key alternative energy investment principles. Before we get to that though, and as a sidenote, the cheapest green energy mutual fund with the most generous cost assumptions will still cost you no less than 1% per year more than your average green ETF. It is, however, very difficult for mutual fund managers to beat the market, particularly by 1.5% per year. For this reason many people choose alternative energy investment ETFs above mutual funds, which are passively managed and low cost.
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Lets look at an alternative energy mutual fund that has being making waves recently. GUINNESS ATKINSON is a very successful fund company. Three of its funds have been in existence for more than 5 years, and in the Morningstar fund categories, they are all in the top third. The Guinness Atkinson Alternative Energy mutual fund made its debut in early 2006. The fund has 60 companies to its name, the majority of which are in the wind and solar business. This fund has out performed the market for the majority of the time. In 2007, before the crises set in, the fund delivered an exceptional 43% return.

This fund is one of a rapidly increasing number of funds which are focused primarily or wholly on alternative energy. Whilst oil. was the winner in the last century, a new world of green energy sources look set to dominate this century, and this is what these funds are focused on. Clean Edge, which researches into the alternative energy industry, has estimated that this sector will be worth $255 billion globally in ten years time. Currently it is worth around $90 billion.

Keep in mind that as the industry is still young, many investors consider it best to pay for a managed mutual fund. Then you get an expert who can assess the viability of the various alternative energy companies, and also get insights into which technologies are going to be the hottest. Also remember that whilst alternative energy mutual funds have huge potential over time, they should be considered as higher risk, and categorized in your portfolio as thus.

For more information, go to:
en.wikipedia.org

Environmentally minded yet want to make money? Profit and the environment have been at loggerheads for decades. Some people consider that profit and the economy should come first whilst others consider that environment is the most important, and the result is a great deal of angst!

Happily for environmentally minded people, a ‘compromise’ has been found. In the last decade green investing has come from almost complete obscurity to the forefront of many investors’ conscience. Green mutual funds, or alternative energy mutual funds have a large number of factors working increasingly in their favor. The issue of climate change is at the forefront of government policy, and even the most hardened of skeptics are now coming round to the truth that steps need to be taken.
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