To find the top alternative energy mutual funds to invest in, the savvy investor must first be diligent in research. Alternative energy is an emerging sector that is partially being driven by political forces. These investments may seem difficult to gauge because political climates can change very quickly. But in the case of alternative energy, these companies will most likely provide future gains for one reason other than environmental/political means: the depletion of fossil fuels.
It is widely known and accepted that fossil fuels are a limited resource and the world’s supply is decreasing. With increased world demands and middle eastern turmoil, the probability of a shortage in supply of oil is increasingly evident. Finding and implementing permanent energy alternatives is imperative to prevent a future world economic crisis.
There are many different kinds of alternative energy sources, including solar power, wind power, hydroelectric power, and biofuels. Finding the top alternative energy mutual funds to invest in will be dependent on finding funds that have holdings in alternative energy companies that are actively pursuing research and development to increase availability and efficiency of the different alternative energy sources on the market. Start by searching the different energy mutual funds. You will likely find many energy related mutual funds out there, but not many, or any for that matter, that focus specifically on alternative energy. This is one limitation with investing in mutual funds. They are very broad in their holdings, and finding a fund that focuses on alternative energy, or just solar power for that matter, is difficult.
ETFs are a better way to go. They can be customized to be very diverse or very specific, depending on your needs. They can be traded just like stocks as well, so there are no fees. Investing in the top alternative energy mutual funds will depend largely on your ability as an investor to find the right fund for your…