Alternative Energy Mutual Funds
The world has already taken several steps towards the development of green energy sources to produce clean energy that does not adversely impact the environment. It requires massive investments to achieve this. Alternative energy mutual funds form one vehicle to provide funds for such green energy projects. For discerning investors too, for whom protecting the environment is an important issue, investing in alternative energy funds is both attractive and mentally satisfying. Further, mutual funds in general offer diversification and expert management for investors who don’t have the time or expertise do do in-depth research themselves.
A Sampling of Alternative Energy Mutual Funds
Such category of investors can consider making investments in any of the following alternative energy mutual funds.
Global Alternative Energy Fund: This fund has been created by Calvert and so it is also known as the Calvert Alternative Energy Fund. Its objective is meeting long-term return on investments in both non-US and US companies doing business in alternative energy that meet social and investment criteria. The companies’ businesses encompass alternative energy technologies, alternative energy services, and alternative energy sources. The sources include solar, geothermal, wind, or biofuels.
The Calvert Fund is an alternative energy fund that spans all-market cap companies’ stocks. It is managed by an Irish company named KBC Asset Management International, Ltd. A highlight of the Fund Offer is that at least eighty percent of net assets will be invested in alternative energy companies. The Fund was launched in May 2007.
The Calvert Fund has significant stock holdings to the extent of 5.20 % in Vestas Wind Systems, 5.34 % in Gamesa Corp. Tecno, 4.49 % in Sunpower Corp, and 4.09 % in Renewable Energy Corp. as on the last day 31st December 2007.
Allocations to the Fund include 28.4 % from the US, 17.8 % from Spain, 13.93 % from Germany, and 6.96 % from the United Kingdom as on 31st December 2007.
Winslow Green Solutions Fund: It is an alternative energy mutual fund that offers investors the opportunity to invest in green businesses. It makes investments in companies which are market leaders in solar and wind energy and in energy conservation technologies. The Fund envisages potential for multi-billion dollar growth by such companies in the field of clean and sustainable energy. It also envisages that in the longer term, the growth will be even steeper.
The Fund seeks to provide investors capital appreciation on their investments made through the Fund in green solution companies. Its strategy is to make investments in stocks of companies of different sizes that devise cost effective solutions. Such solutions can be achieved by reducing the consumption of resources and decreasing pollution.
The Fund has significant stock holdings to the extent of 5.78 % in First Solar Inc, 3.77 % in Vestas Wind Systems, 2.95 % in Renewable Energy Corp. as on the last day 31st December 2007. Allocations to the Fund include 67.92 % from the US and 16.26 % from Europe as on 31st December 2007.
The number of alternative energy mutual funds is expected to increase substantially in the near future based on good performance of the alternative energy sector.
