Best Energy Mutual Funds


Investing in energy is one of the strongest and safest bets in investment opportunities today, especially green energy. Green energy deals with new renewable and environmentally safe energy technologies, like solar or wind power. Here are the top five renewable energy companies on being traded today.

The New Alternative Fund is a very good long term fund that makes investments in companies regardless of their size and includes investments in companies’ world wide. New Alternative will only invest in a company that makes a positive impact on the environment and at least 25% of its investments are in companies ‘who specialize in renewable fuels.

PowerShares WilderHill Clean Energy Portfolio includes a portfolio of 36 stocks that are working in renewable energy, and using clean energy technology.

Winslow Green Energy Growth Fund is primarily in the United States and invests in American small cap growth companies. While Winslow does not invest in exclusively in alternative energy investments it does have a green approach to its investment style. Winslow may include companies that do not help the environment, but any company in its portfolio does not hurt the environment. Before they invest, fund managers at Winslow investigate the impact that company has on the environment and the company’s environmental impact as well as other facts.

Guinness Atkinson Alternative Energy Fund uses long term capital appreciation strategies to achieve its investor’s goals. Any company that receives more than half of its revenue from alternative energy technologies can be included in the fund. Use caution here, especially if you are a new investor. Because of this specialization, diversification is difficult and your risk is subsequently increased.

The Calvert Global Alternative Energy Fund is huge with more that $140 million in assets. The Calvert fund has a large number of foreign investments also and this can add a great deal of risk. Calvert is very aggressive in its investment strategies but this very aggressiveness, while increasing risk, also increases the possible gains. With more than 80% of it’s investments in the renewable energy sector, Calvert is not diversified either. This can be a large factor in your decision on whether or not to invest.

Investing in energy can generate a decent income. Because of the exploding growth in green energy and renewable fuels, adding shares from companies that deal in these new technologies can be a smart move. If you are investing in any mutual fund that specializes in energy however, you will want to measure how well that fund diversifies its investments. If the risk level is a major issue with you, invest in companies that, while they carry green energy stock, they also have investments in other sectors.

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