As concerns about the environment increase, more and more investors are looking to invest their money in eco-friendly companies that are supporting the planet by the work they engage in. If you are looking to get involved with green investing then one of the best ways to do this is by green mutual funds.
Traditionally the goal of mutual funds is to maximize the amount of money that each investor earns. Those who choose to go green with their investment choices can help to bring about positive social and environmental changes. More and more people want their investments to bring good to the world and that is why they choose green mutual funds.
When considering green mutual funds it is important to consider the investing record of a company as well as what social and environmental causes the company supports and is presently invested in.
The green guidelines you go by before you invest in green mutual funds are important too. Does the prospective company you are considering use negative or positive screening? This is something that you must know before a decision can be made.
Managers of green mutual funds are given the privilege of voting on issues that are important to stakeholders. Find out if their record of voting as well as their portfolio carefully mirrors what they deem as their environmental and social concerns. Everything should correspond before you invest in green mutual funds with the company.
Green Mutual Funds to Consider
What companies should you go green with? Let us take a look.
1. Calvert Large Cap- The Calvert Large Cap Growth Fund (CLGAX) has a good solid reputation for being socially conscious about the environment. There is lots of diversity and they have produced solid returns year after year.
2. Spectra Green- The Spectra Green Fund (SPEGX) is very diversified and their average returns in the past five years have equalled 17 percent.
3. Guinness Atkinson Alternative Energy- Although the Guinness Atkinson Alternative Energy Fund (GAAEX) just got its start in March 2006, it is growing strong and is very socially conscious.
4. New Alternatives- The New Alternatives Fund (NALFX) has an excellent track record and has been around for the better part of two decades. Green mutual funds and diversification go hand in hand here.