Alternative Energy Mutual Funds

Alternative Energy mutual funds invest in the securities of companies engaged in the production of energy or fuels by alternative and/or innovative means, and companies providing products and services to the producers of alternative energy and alternative fuels. Alternative means of producing energy include wind, solar, geothermal, tidal and the burning of alternative fuels. Alternative fuels include ethanol, methane, hydrogen and biodiesel.

There currently aren't many Alternative Energy funds that offer a pure play in this sector, but expect the number to increase with the demand for alternative energy sources and alternative fuels. As Alternative Energy funds are new to the scene and they're currently few in number, there is no established benchmark for the category and the funds must be evaluated on short-term performance and qualitative factors, such as one's evaluation of a fund's management and selection of securities.

If you don't find the Alternative Energy funds listed separately, then you're apt to find them listed with the Socially Responsible funds, the Energy funds or even with the Green funds.

Alternative Energy funds may have diversification potential, but they'll have to establish a history before that determination can be made. For now, they look like a good way to diversify within the energy sector and to invest with a clear conscience.

Return to the top of Alternative Energy Mutual Funds.

Return to the Various Types of Mutual Funds.

Move on to the next subsection, Biotechnology Mutual Funds.