Green Mutual Funds

Green mutual funds are special sector shares in companies that promote renewable energy, recycling, and natural resources or products. These companies are environmentally responsible companies that seek to help the environment through various resources. Socially responsible mutual funds invest in clean air, clean water, clean energy, smart growth, renewable and natural resources, sustainable living, clean transportation, and clean or green building. Rising oil prices, concern of energy shortages, and the health of the environment has led to growth for companies who are environmental responsible. The concerns of the environment are spurring new companies that are goal-oriented to work toward cleaner technologies and to minimize environmental damage. Purchasing shares in socially responsible companies is considered a smart move among today's investors.

Some of the ways that environmentally responsible companies are helping the environment include recycling, manufacturing hybrid vehicles, installing solar panels, wind turbines, ocean turbines, producing organic and natural foods or other consumable products, and investing in smart growth. When a buyer purchases shares in companies who offer socially responsible mutual funds he or she is investing in a promising future. Investing in the future can also be accomplished by participating in recycling opportunities. Consumers can become proactive with recycling by taking advantage of the opportunity to place appropriate products in a recycle bin. Most cities provide citizens with a recycle bin that they can place cardboard, paper, and cans in and they usually offer curb pickup on the same day of trash pickup.

Another way that the consumer can help the environment is to purchase a hybrid automobile. Most car manufacturers today have several versions of hybrids for consumers to choose from. These vehicles are either all electric or half electric and half gasoline. In addition, some vehicles are hydrogen-powered and do not use any gasoline. Many car manufacturers seem to understand the need for these types of vehicles because the choices are increasing. Investing in green mutual funds that include companies that offer hybrid vehicles not only help the economy but help the consumer with fuel costs and income taxes. The government offers tax breaks for anyone who purchases a hybrid. In addition, it seems unlikely that oil prices are going to go down but instead will probably continue rising.

A few smart growth companies today are working towards developing carbon-free coal burning power plants. These plants are going to be set up to produce electricity and hydrogen primarily free of pollution. If this can be done the investments in green mutual funds in this industry will become very profitable. One way to become knowledgeable about these types of investments is by keeping up with the news. Another way to learn about green companies and what is being done in the world today to help the environment is by using a broker who stays on top of the latest technologies and the news on environmentally friendly companies. Brokers and other information can be found on the Internet by doing a search for socially responsible mutual funds.

Wind power is becoming more profitable every day. Utility companies are using wind turbines to harness energy as a renewable source. Wind turbines are initially costly and are very large which makes them difficult to transport but the initial cost to build them and move them is minimal when considering the benefits of the lower energy costs. Generally several thousand wind turbines can power millions of homes. Purchasing green mutual funds in this industry will provide profitable outcomes for many years to come as the use of wind turbines continues to increase. Wind turbines are also used in the ocean and on dams to produce renewable energy. Tax credits and incentives will no doubt bring more companies into this industry in the future and will spur interest in the stock market as well. In most communities the consumer has a choice as to which utility company to choose for electric service. Choosing a utility company that is searching for ways to provide renewable energy and help the environment is a choice that any consumer can feel good about.

Companies that are considered socially irresponsible are ones that are bad for society. Some of these are adult entertainment, alcohol, tobacco, weapons, gambling, and ones that produce chemicals and environmental hazards. Investors should also beware of companies that promote terrorism. The Word of God instructs us that we should not become involved with those who are not believers. Christian shareholders will want to choose their investments wisely based upon Biblical principles. "Be not unequally yoked together with unbelievers: for what fellowship hath righteousness with unrighteousness? And what communion hath light with darkness" (2 Corinthians 6:14)? Choosing to invest in green mutual funds is a good place to start. Finding out specifics about companies by doing some research can help an investor become more informed. The manager of the fund can supply information that includes the companies or industries that make up a particular share.

Other companies that offer buyers a reason to invest in socially responsible mutual funds include various types of industries. Some of these include companies who are interested in product safety, human rights, community relations, indigenous rights of people, workplace ethics, and workplace safety. Companies that adhere to high standards of operation and work towards helping society and the environment are considered socially responsible. A potential buyer should consider what issues are the most important to him or her when it comes to purchasing shares. The most important rule of thumb is to invest diversely and not put everything into one fund.