Investing in Renewable Energy – Mutual Funds
Investing in renewable energy is likely to be the investment opportunity of the future. In a world where billions of dollars are subsidized in the oil industry for a commodity that will inevitable be depleted, sources like solar and wind have the potential to run the planet for free. Naturally, and perhaps controversially, capitalizing on renewable energy will happen sooner or later. Just like investing in commodities like gold has been popular throughout history, renewable energy mutual funds are seeing recent growth that has produced plenty of investment options. Not only are people drawn to this type of investment for future earning potential, but there is the feeling of being responsible for progressing the planet and improving local economies while preparing for the consequences of depleting oil supplies.
Investing in renewable energy is possible with individual stocks and mutual funds. The New Alternatives Fund (ticker symbol NALFX) has been investing in the environment and alternative energies since the early 1980s. They avoid investments in oil, coal, nuclear power, weapons, and tobacco while steering clear of companies that have discriminatory hiring policies and unfair labor practices. The company’s main focus is on investments in wind power, fuel cells, ocean energy, hydropower, energy conservation, solar power, hydrogen, biomass, and geothermal energy.
Another investment is the Calvert Global Alternative Energy Fund (CGAEX) which seeks long-term investments from companies already active in alternative energies. As with any mutual fund, investors run the risk of losing invested principal. Other investments include the Guinness Atkinson Alternative Energy Fund (GAAEX), NASDAQ Clean Edge U.S. Liquid Series ETF (QCLN), and the Powershares Global Clean Energy Portfolio (PBD), to name a few. Any downturn in alternative energy industries would impact this type of investment more so than any other, but alternative energy seems to be driving a steady course. Economics, currency fluctuations, and the political climate may alter the risk of investment.
Investing for cash flow is a huge risk for any individual, small business, or corporation, but there is still plenty of room in the alternative energy sector for active management. Unlike other sectors that have been invested in for decades, this brings a relatively new opportunity to anyone willing to take the risk. It’s one investment idea that hasn’t been picked up by the majority of investments, which means there’s the potential for serious money to be made. Along with that, there comes the chance to really feel like you’re doing something good for the planet.