There are numerous energy mutual funds available. However, not all of these alternative funds are equally created. Many scientists have tried to identify the alternative energy mutual funds which focus mostly on renewables. Most of these funds hold many reputable firms which are usually non-energy firms. These firms include names such as Apple, Google, and PepsiCo.
However, if you are seeking a straight forward answer to this question, you may not get it. You need to learn about mutual funds that are invested in the growing energy sector.
Energy Mutual Funds That Focus On Alternative Energy
Though many investors desire to keep their investing portfolios free from any kind of polluting investments, it is not always the case. You may not find a pure alternative energy mutual fund. Well, seeking the funds that enjoy the highest concentration of these alternative energy investments takes time. In fact, you need to follow a multipronged approach to find such funds.
Foremost, the experts scrutinize each fund’s prospectus to find out if these principles align with the said energy investment goals. Moreover, experts advise to check the annual reports as well as financial fillings of each firm that is held by the mutual fund. Studying these records can help you determine the percentage of the firm’s operations that are related to different green sectors.
More About Mutual Funds
There are some cases where it may be easy to find out whether a particular mutual fund holds the sticks that are present in alternative energy fields. However, in some cases, this is not obvious. There are some firms such as SolarCity Corp, Renewable Energy Group Inc, and First Solar, etc which many energy investors are often seeking. However, there are some firms that possess energy to have different products as well as services to be part of their said business model. However, these operations are not a major entity of the firm.
There are many business models that possess mutual funds. One such firm is Johnson Controls. It is a large industrial unit that possesses two major business aspects. These units address major alternative energy themes. These themes are enhancing efficiency and building renewable power solutions. Interestingly, these mutual funds form a major part of Johnson Control’s revenues and earnings. The shares of JCI own about 8 out of 12 shares which is more than any other firm. The experts study a major portion of this firm’s earnings to judge the share of the funds.
Valmont Industries is yet another firm possessing partial energy operations. Valmont manufacturers support different towers meant for anemometers, mass transit poles, wind turbines. etc. The firm has made major contributions towards solar, wind, and grid projects. Moreover, the form would be building these projects for many more years to come. However, as per experts, these funds form 15 percent of the said firm’s earnings. Another important firm that makes use of mutual funds is Google. Though funds are not its main form of earning but form an imperative part of the firm.