CleanTech Fund: PZD ETF Invesco PowerShares Cleantech Portfolio

A new ETF or exchange traded fund is now available in the market for investors looking to make investments in the so called Clean Technology, Cleantech sector within the Alternative Energy Investments. Below we discuss a fund called PowerShares Cleantech Portfolio ETF from Invesco which is an ETF or Exchange traded fund based upon the clean tech company sector index.

What is the PowerShares Cleantech Portfolio ETF?
The PowerShares Cleantech Portfolio ETF is an exchange traded fund which will be attempting to track the performance of Cleantech Index CTIUS Index. The Cleantech Index is the leading stock market index which reflects the ever growing global demand for clean technology (cleantech) products and services. By tracking the market performance of the leading publicly traded cleantech companies, CTIUS is the industry standard index that underlies a growing range of financial products (such as exchange traded funds). This Cleantech index therefore provides investors with an easy, cost-effective, and liquid means to invest in the broad cleantech investment category

What are the constituent details of the Cleantech Index CTIUS Index?
The Cleantech Index (CTIUS) is a modified equal-dollar weighted index of the leading cleantech companies worldwide from a broad range of industry sectors. "Cleantech" is defined as knowledge-based products and services that improve operational performance, productivity or efficiency; while reducing costs, resource and energy consumption, waste or pollution. The Cleantech index was established with a base value of 500.00, at market close, December 31, 1999. The Index is rebalanced every March, June, September and December. The Index was created by and is a trademark of Cleantech Indices LLC.
The Cleantech Index CTIUS Index is comprised of 76 companies which are global leaders in cleantech innovation and commercial deployment across a broad range of industry sectors: from alternative energy and energy efficiency to advanced materials, from air & water purification, eco-friendly agriculture/nutrition to power transmission, etc.
The index is listed on American Stock Exchange (AMEX).
Geographical Exposure is as follows: United States 52.55% , France 4.72%, Spain 4.67% , Germany 4.49% , Japan 4.43% , Denmark 4.07% , Switzerland .93% , Norway 3.38%
The top holdings of Cleantech Index (CTIUS) as per the weightage are as follows:
SIE.DE Siemens Germany 2.14% , ABB2.SW ABB Switzerland 2.14% , GLW Corning USA 2.14% , SU.PA Schneider Electric France 2.14% , IBR.MC Iberdrola Renovables Spain 2.14% , VWS.CO Vestas Wind Systems Denmark 2.14% , FSLR First Solar USA 2.14% , WFR MEMC Electronic Materials USA 1.92% , GAM.MC Gamesa Spain 1.92% , REC.OL Renewable Energy Norway 1.92% , suzlon.ns Suzlon Energy India 1.81% , SPW SPX Corp. USA 1.81% , SPWR Sun Power USA 1.81% , STP Suntech Power Holdings PRC 1.81% , ROP Roper Industries USA 1.81% , NZYM.CO Novozymes -B- Denmark 1.81% , PLL Pall Corp. USA 1.81% , 6370:JP Kurita Water Industries Japan 1.81% . Remaining holdings less than 1.7%

What are the different cleantech sectors available for investments?
Cleantech Index CTIUS companies fall into 11 cleantech sectors:

* Clean Energy Generation
* Clean Fuels
* Energy Storage
* Grid-level Energy Controls and Efficiency
* On-site Energy Controls and Efficiency
* Water & Wastewater Treatment
* Environmental Quality (air, water, land, etc.)
* Advanced Materials
* Clean/efficient Industrial Processes & Systems
* Eco-friendly Agriculture/Nutrition
* Transportation

What are the risks factors of investments in Invesco PowerShares Cleantech Portfolio PZD ETF?
There is a risk of sector underperformance - if CleanTech sector does not perform well, then the returns on this Invesco PowerShares Cleantech Portfolio PZD ETF will be in loss. Another risk is due to foreign exchange or forex risk. Since this ETF is global in nature, there will be significant exposure to forex risk.
This fund also has exposure to emerging market, which may turn out to be risky. Also, the returns may be affected due to security specific local tax laws, accounting methods, geo-political problems, etc.


What are the benefits of investing in Invesco PowerShares Cleantech Portfolio PZD ETF?
Being an ETF, you can trade on Invesco PowerShares Cleantech Portfolio PZD ETF on an intra day basis. You can short sell the ETF shares, trade on margin if your broker allows you to do that. For long term investors who have faith in the returns of Clean Tech investments, this ETF should be an ideal investment.

Any other details available about Invesco PowerShares Cleantech Portfolio PZD ETF?
Fund Ticker PZD ,CUSIP 73935X278 , ISIN US73935X2788, Intraday NAV PZD.IV , Index Ticker CTIUS , Marginable Yes , Short Selling Yes , Options Yes , Exchange AMEX , Inception Date 10/24/2006

Expense ratio of Invesco PowerShares Cleantech Portfolio PZD ETF is capped at 0.6% making it a low cost ETF, Price to earnings stnad at around 18.6 as of June 30, 2008, Price to boo Ratio is 4.4.

All in all, a good and unique product from Invesco powershares, for Investors who are looking to specifically invest in Clean Technology or CleanTech sector investments.

KWT ETF: Market Vectors Solar Energy ETF: Van Eck Global Solar Energy ETF

A new ETF or exchange traded fund is now available in the market for investors looking to make investments in the Solar Energy Sector within the Alternative Energy Investments. Below we discuss a fund called Market Vectors Solar Energy ETF (KWT) or Van Eck Global Solar Energy ETF.

Which index will be tracked by the Market Vectors Solar Energy ETF KWT?
Market Vectors Solar Energy ETF KWT fund will attempt to replicate the performance of the Ardour Solar Energy Index, SOLRX. This index is comprised of a group of companies at a global level which are involved in photovoltaic (PV), solar heating and solar lighting business. This index is the pure-play leader in tracking the global solar industry. The Index provides targeted exposure to a select group of companies around the world that derive at least 66% of their revenues from solar energy. On a weighted basis, the companies in the Index derive in excess of 90% of their revenues from the solar industry.

As on 28th July, the Ardour Solar Energy Index, SOLRX index was having 34 constituents. In the order of holdings, here are the top constituent stocks Renewable Energy Corp. ASA REC NO 11.66%, First Solar Inc. FSLR 11.57% , SolarWorld AG SWV GY 10.78% , Q-Cells AG QCE GY 9.59% , SunPower Corp. Cl A SPWR 4.85% , Energy Conversion Devices Inc. ENER 4.48% , Suntech Power Holdings Co. Ltd. ADS STP UN 4.26%. Remaining holdings are less than 4% each.
On the geographical basis, the index is having the following exposure: Germany 37.2%, United States 25.5% , China 20.2% , Norway 9.9% , United Kingdom 4.2% , Spain 2.0% , Canada 1.1%.

What is the expense ratio for investments in Market Vectors Solar Energy ETF KWT?
Till May 2009, the expense ratio for Market Vectors Solar Energy ETF KWT is capped at 0.65% - which makes it a low cost fund.

What are the benefits of investment in Market Vectors Solar Energy ETF KWT?
Market Vectors Solar Energy ETF KWT is an ETF or exchange traded fund, hence one can carry on the trading activities to benefit from intra day trading.
This also provides extra liquidity to benefit from trading activities in Market Vectors Solar Energy ETF.
Index investments are expected to perform better than the individual stock selection skills,

Related Competitor Product: TAN ETF: Claymore MAC Global Solar Energy ETF

What are the risks involved in Market Vectors Solar Energy ETF KWT?
Tracking the index performance is one of the biggest risks in the performance of this Market Vectors Solar Energy ETF. This leads to the concept of Tracking error.
There is a risk of sector underperformance – if solar energy sector does not perform well, then the returns on Market Vectors Solar Energy KWT ETF will be in loss. Another risk is due to foreign exchange or forex risk. Since this ETF is global in nature, there will be significant exposure to forex risk.
This fund also has exposure to emerging market, which may turn out to be risky. Also, the returns may be affected due to security specific local tax laws, accounting methods, geo-political problems, etc.

What are the market details for Market Vectors Solar Energy ETF KWT?
Fund Ticker KWT ,Intraday NAV (IIV) KWT.IV ,Index Ticker SOLRX ,Exchange AMEX , Commencement DATE 04/21/2008 , Gross Expense Ratio 1.09% ,Net Expense Ratio 0.65% ,Options Trading: Available ,AUM : $29.1M

This Market Vectors Solar Energy KWT ETF can be a good investment for investors looking for Solar Energy specific investments.

TAN ETF: Claymore MAC Global Solar Energy ETF

A new ETF or exchange traded fund is now available in the market for investors looking to make investments in the Solar Energy Sector within the Alternative Energy Investments. Below we discuss a fund called Claymore MAC Global Solar Energy TAN ETF which specifically focuses only on Solar Energy Sector and invests on in companies operating in Solar Energy business.

Which index will be tracked by Claymore MAC Global Solar Energy TAN ETF?
The Claymore MAC Global Solar Energy ETF is an exchange traded fund and will attempt to track the performance of an equity index called the MAC Global Solar Energy Index. This Claymore MAC Global Solar Energy ETF will attempt to generate a correlation anywhere between 0.95 and 1 between the ETF and underlying index performance. That would mean if the MAC Global Solar Energy Index generates a return of 10%, then the Claymore MAC Global Solar Energy ETF may generate a return between 9.5% and 10%.
The MAC Global Solar Energy Index (Ticker: SUNIDX) contains 25 securities and is a total return index truly global in nature. Maximum geographical exposure is China – 29.92%, Germany – 29%, USA- 26.3%, followed by Norway, Spain and Switzerland in single digits. It is a mix of large cap – 27%, Mid cap- 29% and small cap – 42% exposure.
The top holdings are: First Solar Inc. 9.10%, Renewable Energy Corp. ASA 7.40%, Q-Cells AG 6.20%, MEMC Electronic Materials Inc. 6.00%, Suntech Power Holdings Co. Ltd. ADS 5.70%, SolarWorld AG 5.10%

How will the money be invested in Claymore MAC Global Solar Energy TAN ETF?
The Claymore MAC Global Solar Energy TAN ETF claims to be a low cost passive ETF fund. Around 90% of the investor"s money will be put in shares ADR, GDR that comprise the Index. The Index is designed to track companies within the following business segments of the solar energy industry: companies that produce solar power equipment and products for end-users, companies that produce fabrication products (such as the equipment used by solar cell and module producers to manufacture solar power equipment) or services (such as companies specializing in the solar cell manufacturing or the provision of consulting services to solar cell and module producers) for solar power equipment producers, companies that supply raw materials or components to solar power equipment producers or integrators; companies that derive a significant portion of their business (measured in the manner set forth below under “Index Methodology" section) from solar power system sales, distribution, installation, integration or financing; and companies that specialize in selling electricity derived from solar power.

What is the expense ratio of Claymore MAC Global Solar Energy TAN ETF?
The expense ratio of Claymore MAC Global Solar Energy TAN ETF is capped at 0.65% till December 2010.

Related Competitor Product: KWT ETF: Market Vectors Solar Energy ETF: Van Eck Global Solar Energy ETF

What are the risks involved in Claymore MAC Global Solar Energy TAN ETF?
There is a risk of sector underperformance – if solar energy sector does not perform well, then the returns on this Claymore MAC Global Solar Energy TAN ETF will be in loss. Another risk is due to foreign exchange or forex risk. Since this ETF is global in nature, there will be significant exposure to forex risk.
This fund also has exposure to emerging market, which may turn out to be risky. Also, the returns may be affected due to security specific local tax laws, accounting methods, geo-political problems, etc.

Any other information available about Claymore MAC Global Solar Energy TAN ETF
The Claymore MAC Global Solar Energy TAN ETF will trade on NYSE ARCA exchange and will have the NAV Symbol TANIV, CUSIP 18383M621.
As of 28th july 2008, the NAV of Claymore MAC Global Solar Energy TAN ETF was USD 22.30.

This Claymore MAC Global Solar Energy TAN ETF can be a good investment for investors looking for Solar Energy specific investments.

Alternative Energy Funds Investment Performance Index

Alternative energy fund Investments have suddenly become the hot flavor for every single investor who wishes to gain from the ever growing demand of energy requirements. Here is an article about introduction to Alternative energy funds and their working.

However, the biggest question faced by any investor is how to analyze or measure the performance of their investment. That"s where the market index or market indices come into picture. In this article, we will discuss all the available market indices for the alternative energy sector and see how they can be used to track the performance of the alternative energy mutual funds or investments in alternative energy sector.

To begin with a basic introduction about alternative energy sector index, Alternative Energy Indices are the market index which are developed to monitor investment in alternative energy. They may include renewable energy and environmental technologies (usually called CleanTech), as well as transitional and alternative fuels such as nuclear power and natural gas. The world is looking towards generating energy from renewable energy sources and zero-emission fuels such as hydrogen.

The major indices in alternative energy segment on a global level are as follows:

ALTEX Global: This is one of the world"s largest Alternative Energy Index which tracks as many as 138 companies and has a market capitalization of $1.65 trillion USD. The primary focus is on pure play companies involved in the transition to diversified low-emissions energy infrastructure. Sub-sectors tracked are: low-emission utilities, renewables, natural gas, uranium, hydrogen, and clean energy technologies. It has given a profit of 34.7% returns in 2007 and has outperformed the MSCI Index, and the returns were delivered by Uranium and Gas securities.

 Ardour Global Alternative Energy Index:
There are 5 dedicated indices from Ardour for tracking the Alternative Energy Sector:
• Ardour Global Index (Composite) - (Ardour Composite) AGIGL – 128 constituents
• Ardour Global Index (Extra Liquid) - (Ardour XL) AGIXL – 30 constituents
• Ardour Solar Energy Index SOLRX – 34 constituents
• Ardour Global Index (North America) - (Ardour NA) AGINA – 70 constituents
• Ardour Global Index (EMEA) - (Ardour EMEA) AGIEM – 34 constituents

The above set of Alternative Energy Index from Ardour provide a comprehensive coverage of securities in the Alternative energy sector. Companies are involves in the following areas of focus: alternative energy resources (technologies for solar, wind, hydro, tidal, wave, geothermal and bio-energy); distributed generation technologies; environmental technologies including water and air quality; energy efficiency; and, enabling technologies including electronic, batteries, superconductors and advanced materials.

 Credit Suisse Global Alternative Energy Index CSGAE

The index comprises 30 global companies in five categories: Natural Gas, Wind, Solar, Bio-energy/Biomass, Geothermal/Hydropower/Fuel cells/Batteries. All five sectors will be capped to 20% to prevent individual sectors from dominating the Index. This would make the Credit Suisse Global Alternative Energy Index CSGAE as one of the most equally balanced index in the Alternative Energy sector.

 DAX global Alternative Energy Index

The DAXglobal Alternative Energy Index tracks the performance of 15 alternative energy companies. Companies which are selected for the index must generate more than 50 percent of their revenues in one of the following five sub-sectors: Natural Gas, Solar, Wind, Ethanol, Geothermal/Hybrids/Batteries.

 S&P Global Clean Energy Index

The S&P Global Clean Energy Index tracks 30 companies on a global basis which are involved in clean energy related business. The index is based on a diversified mix of Clean Energy Production and Clean Energy Equipment & Technology companies including a number of firms involved in wind and solar.

 Wilderhill New Energy Global Innovation Index NEX

The WilderHill New Energy Global Innovation Index is comprised of 86 companies worldwide whose innovative technologies and services focus on generation and use of cleaner energy, conservation and efficiency, and advancing renewable energy generally. Included are companies whose lower-carbon approaches are relevant to climate change, and whose technologies help reduce emissions relative to traditional fossil fuel use.
An independent Fund, the PowerShares Global Clean Energy Portfolio PBD, is available for investment which attempts to mirror the performance of NEX.

 World Alternative Energy Index WAEX

Managed by SocGen or Société Générale, the World Alternative Energy Index WAEX Index tracks the 20 largest stocks involved in: Renewable energy (solar, wind and biomass). Energy efficiency (better use of energy generation, which involves industries such as energy meters and superconductors). and Decentralized energy supply (power generation in close proximity to the consumer, involving micro-turbines and fuel cells). WAEX is an equally weighted benchmark, that is the weight of each member is set at 5% on quarterly basis.

Growth Stock Mutual Funds

There are hundreds of mutual funds available in the market with the so called Growth Opportunities. However, only a few of them are really into Growth Stocks. Looking at the recent past performance of the mutual funds in the Growth Stocks sector, the picture becomes clear. In this article, let’s discuss about which are the Best Performing Growth Stock Mutual Funds, how to invest in the Growth Stock Mutual Funds and what are the risk factors of Growth Stock Mutual Funds. We will be quoting examples of certain good performing Growth Stock Mutual Funds, but the reference to them is made based upon the past performance.

What is meant by Growth Stock Mutual Funds?
The Growth Stock Mutual Funds are those funds which specifically target stocks of the companies which are in the Growth phase. As we all may be aware that every industry and company has a cycle of growth. The Growth Stocks are classified as those stocks which are expected to appreciate in value over a period of time, where the returns are expected to be better than the remaining market. Wikipedia has the following definition for a growth stock:
  Growth Stocks in finance are stocks that appreciate in value and yield a high return on equity (ROE). Analysts compute ROE by taking the company's net income and dividing it by the company's equity. To be classified as a growth stock, analysts expect to see at least 15 percent return on equity.

How should one look for investing in the Growth Stock Mutual Funds?
Growth Stock Mutual Funds are not a one straight shot investment through which investors can look for getting sure shot returns in the minimum possible time. As the name suggest, Growth Stocks require time to grow and hence the Growth Stock Mutual Funds also need a bit of time to grow in value.

How are Growth Stock Mutual Funds classified?
Going by the market terminology, on a broad basis the Growth Stock Mutual Funds can be classified as follows:
• Large Cap Growth Stock Mutual Funds
• Mid cap Growth Stock Mutual Funds
• Small Cap Growth Stock Mutual Funds

Which are the best performing Growth Stock Mutual Funds in the large cap segment?
As per the finance data available on various sites on internet, there are many funds which have given better returns in the Large Cap Growth Stock Mutual Funds. Below we discuss a few of them (Data as of July 28, 2008):

Top Performers in last 1 year in Large Cap Growth Stock Mutual Funds:

 CGM Mutual LOMMX: The CGM Mutual Fund investment attempts gain long-term capital appreciation with a prudent approach to protection of capital from undue risks. The fund normally invests approximately 75% of assets in equity securities. It may invest up to 35% of assets in debt or fixed-income securities of a quality below investment grade, including securities commonly referred to as "junk bonds". The fund may invest up to 25% of assets in securities issued by companies in any single industry.
This is claimed to be a No load Mutual Fund. Morning Star rated this fund’s style as a blend of both value and growth in the large cap market and has assigned the topmost 5 star rating to this fund. The CGM Mutual Fund has given 26.15% return in the last year.

  JHancock Large Cap Equity Fund (JLVIX) Class I This large cap fund from JHancock seeks long-term capital appreciation. To pursue this goal, the Fund invests primarily in equity securities of large-cap companies and may invest up to 35% of assets in foreign securities. The management team seeks companies that are selling at what appear to be substantial discounts to their long-term intrinsic values and/or offer the potential for above-average earnings growth.
MorningStar has rated this fund with in the Large Cap and Growth grid and has assigned five star rating to this fund. This fund has given around 23% returns in the last one year.

 Janus Twenty Fund: JAVLX: Another fund similar to the JHancock fund mentioned above. The fund normally invests at least 80% of assets in a core group of 20-30 common stocks selected for their growth potential. It may invest in foreign equity and debt securities, which may include investments in emerging markets. The fund may also lend portfolio securities on a short-term or long-term basis, up to one-third of its total assets and may, within the parameters of its specific investment policies, invest its assets in derivatives. It is a non-diversified mutual fund.
MorningStar has rated this fund with in the Large Cap and Growth grid and has assigned five star rating to this fund. This fund has given around 23% returns in the last one year.
Apart from this, the Janus Aspen Forty Instl and Janus Adviser Forty I funds have also given similar returns.

  Quaker Strategic Growth Fund QAGIX The fund normally invests at least 65% of the total assets in U.S. common stocks of companies without regard to market capitalization. It generally invests up to 25% of total assets in "special situation" securities. The fund may invest up to 25% of net assets in foreign securities, including American Depository Receipts. It limits short sales to no more than 25% of total assets.
MorningStar has rated this fund with in the Large Cap and Growth grid and has assigned five star rating to this fund. This fund has given around 23% returns in the last one year.

 Jordan Opportunity: JORDX: This fund from Jordan opportunity has been a star performer over a 3 year period, in which it has given 18.5% annualized returns. The fund invests primarily in publicly trades stocks of U.S. companies irrespective of market capitalization size. It may invest up to 25% of total assets in the securities of foreign issuers. The fund will not invest more than 35% of total assets in debt securities, including direct and indirect obligations of the U.S. Government.

It may also invest up to 25% of total assets in U.S debt securities that are not investment grade securities. The fund is non diversified fund. It claims to be a no-load mutual fund and MorningStar has rated this fund with in the Large Cap and Growth grid and has assigned five star rating to this fund.

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New Alternatives Fund: NALFX Mutual Fund Review

There is a good mutual fund offering for the investors who are willing to encash upon the Alternative Energy Investment sector Funds. The fund belongs to Mutual fund house which has been the pioneer in investing in alternative energy sector and is called the New Alternatives Fund NALFX.

What is the New Alternatives Fund NALFX all about?
New Alternatives Fund NALFX claims to be the first Environmental Mutual Fund, which was launched way back in 1982 It had specific focus on the Alternative Energy Sector and has the accolades of being cited as the "Greenest Mutual Fund" in the United States by the leading newspaper – "The Economist". It also claims to be the socially responsible fund, taking investment as a part of social responsibility towards the environment and society.

Which companies does the New Alternatives Fund NALFX invest in?
The New Alternatives Fund NALFX invests primarily in the companies which fall into one of the following sectors:
• Alternative Energy: Reduces the dependency on fossil fuels.
• Recycling: Reduces energy consumption by re-using the material
• Clean air and Water: Water utility, Wind Energy and Waste processing
• Pollution Prevention:
• Conservation: Preventing forest degradation and conserving natural resources

Such funds make it a very good investments for environment cautious investors looking for Green Investments.

Which kind of investments are excluded from investments in New Alternatives Fund NALFX?
Oil, Coal, Weapons, Alcohol, Animal Testing, Tobacco, Gambling, Nuclear Power and any other company which are deriving their returns by investing in so called "socially irresponsible" investment, projects and technology are excluded from the investment in New Alternatives Fund NALFX.

What is the stock holding pattern of New Alternatives Fund NALFX?
As of 30th June 2008, The top 20 invested companies in the order of investment proportion are:

Vestas Wind Systems 5.09%, Gamesa Corporation Technologica 4.98%, Abengoa SA 4.23%, Iberdrola Renovables SA 4.19%, Acciona SA 4.01%, EDF Energies Nouvelles SA 3.95%, Brookfield Asset Management Inc. 3.85%, South Jersey Industries 3.79%, Schneider Electric SA 3.65%, Q-Cells AG 3.43%, Ormat Technologies, Inc. 3.32%, Koninklijke Phillips Electronics N.V. 3.14%, Companhia de Saneamento (ADR) 3.02%, American Water Works Co. 3.00%, Johnson Controls, Inc. 2.91%, Solar Millenium, AG 2.67%, Baldor Electric Co. 2.66%, Compagnie de Saint-Gobain 2.64%, Orkla-Borregaard AS, Inc. 2.60%, Nordex AG, Rostock-EUR 2.46%

What are the risk factors involved in New Alternatives Fund NALFX?
The primary risks involved in New Alternatives Fund NALFX are the same as that of any other mutual fund, like non-performance of the selected companies, and the selected sector. For e.g. if the alternative energy sector does not perform well, then the investment in this New Alternatives Fund NALFX fund will take a hit. However, the investment in New Alternatives Fund NALFX fund is a bit diversified since it invests in companies from various businesses like Wind energy, Solar Energy, Renewable Energy, etc.

There is another risk of Forex or foreign currency fluctuation. Since the investments are spread across global companies, it will be open to forex risk. (Effect of Forex on Stock Price: example of Foreign Exchange Risk)

Then comes the geo-political risk, tax laws, accounting risk and so on.

What is the current NAV or Net Asset value of New Alternatives Fund NALFX?
As on 28th July, the NAV for New Alternatives Fund NALFX stood at 48.42 USD.
MorningStar classifies the New Alternatives Fund NALFX fund as Mid cap Growth Fund and has assigned a rating of 4 stars to NALFX Fund.

Where can I get more information for investments in New Alternatives Fund NALFX? Interested investors may call the New Alternatives Fund NALFX toll free helpline no. 1-800-423-8383.

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China South Locomotive IPO

There is a new IPO or initial public offering set to hit the capital markets. The IPO belongs to China South Locomotive & Rolling Stock Corporation, which is the nation’s largest train maker and is based in Beijing.

What are the opening dates of China South Locomotive IPO?
The China South Locomotive IPO will open on date 5th August 2008 with the launch of it’s a-Share initial public offering.

How many shares will be offered for sale through the China South Locomotive IPO?
Around 3 billion A-shares will be offered for sale through the China South Locomotive IPO.

Where will the capital raised or fund raised from the China South Locomotive IPO be used?
The capital raised from the China South Locomotive IPO will be used for technology upgrade and development of new high speed trains.

Any other proposals for China South Locomotive IPO?
The South Locomotive of China is also a manufacturer of railway equipments. It is learnt that the company is also planning to raise another USD 2 billion via sale of around 2 billion shares in a Hong Kong IPO.

What are the future prospects of South Locomotive IPO?

To cater to the biggest population of China, there will be massive requirement of transport infrastructure and high speed trains. Many market experts believe that this sector is suppose to give fruitful results in the ling run, as the demand is high.

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Alternative Energy Mutual Funds: Investments, Underlying Assets & Business Products

There is suddenly a lot of interest within the investment community for investments in Alternative Energy funds and similar stocks. Being an investor who is putting his hard earned money into such alternative energy mutual funds or alternative energy stocks, it is very important for us to learn about the various product offerings, their way of working and understanding how they will cater to the needs of energy requirements in future. This is important because alternative energy sector is a very big diversified sector and contains lot of different variety of products.

Here are some examples of alternative energy products:
• Solar photovoltaic cells produce electricity from sunlight. Solar hot water and solar thermal systems convert the sun’s energy into heat. Heat produced from solar thermal systems can be used to produce electricity.
• Wind produced energy is becoming more widespread and cost efficient. It depends to some extent on tax benefits and political support.
• Hydroelectric power is clean, but is limited by geography.
• Geothermal energy is produced by heat produced from sources below the earth’s surface.
• Conservation includes insulation, energy efficient electrical equipment, and transportation equipment such as hybrid or electric vehicles, bicycles and railroads.
• Recycling is a form of energy and resource conservation.
• Cogeneration and combined heat and power systems use a single fuel to produce, simultaneously, general use electricity and heat or cooling.
• Ocean energy can is produced from currents or waves by using equipment to generate electricity which is then brought to shore through cables.
• Fuel cells generate electricity and heat by means of a chemical reaction. No combustion is involved and the by product is water. The fuel source varies for different types of fuel cells.
• Biofuels such as biodiesel and ethanol are transportation fuels. There is some concern about appropriate land use and competition between the use of agricultural products for food and fuel. Conversion of agricultural products to fuel has become more efficient. High oil prices, political support and improved methods to convert agricultural resources into fuel have increased the growth of biofuels.
Now comes the question that which of these technologies or alternative Energy funds product segment will be able to sustain in the future, promising to be a delivering star and catering to the needs of the ever-growing energy requirements thereby making the alternative energy investments a profitable venture for the investor.
Related Articles: Green Mutual Funds  Low Cost Mutual Funds   alternative Energy funds
Every product is associated with problems as well as advantages. Let’s look at them at a broad basis in case of alternative energy investments:

Conventional Fossil based Energy Prices fluctuate very much as Oil is high in demand while the supply is limited. Extraction of oil is expensive. As it is happening presently, the Alternative energy technologies are become a substitute for oil based energy and more and more investment is coming in alternative energy sector.

Clean Air investments suddenly become important when when there are increased concerns about acid rain, air pollution, and asthma and allergies. CLEAN WATER investments grow when there are water-based epidemics, regional scarcities and polluted streams. Investment growth falters when federal, state and local commitment fades. Again, in the present timings of global warming, it is expected that major chunk of money will be flowing in the name of Clean Investments.

Solar (photovoltaic) Cells & Fuel Cells are another useful product but their future use depends upon how the other medium of energy are able to give competition to them. They are not presently competitive with utility electric production, except during certain circumstances. Hence, the investments in Solar Mutual Funds may be made cautiously.

Environmentally Grown and Organic Foods are enjoying a period of growth.
Producers, distributors and retailers are generally prospering. Many of the products cost more. The growth may not survive a poor economy.

More Alternatives investments: The list of energy alternatives and environmental solutions cannot be exhaustive or the comments complete. Technologies such as ocean energy, including ocean thermal variation, tidal movement and wave action to produce electricity are under development. There will be other new opportunities in new areas of alternative energy and new environmental products and technologies.

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SBI Magnum COMMA Fund Review

Indian Mutual Fund market is full of variety of funds. However, since the last few years, Commodity based mutual funds have shown to be the best performing asset class across the globe. This has led many mutual fund house to launch funds dedicated to investments in commodity sector companies with equity investment and similar other instruments. The latest offerings in the Commodity mutual funds being : Mirae Asset Global Commodity Fund.


However, there is a similar commodity fund available in the Indian Mutual Fund market from the leading mutual fund house of SBI. It’s called the SBI Magnum COMMA Fund.

What is the investment objective of SBI Magnum COMMA Fund?
The SBI Magnum COMMA Fund will be investing the money in a portfolio of stocks of companies engaged in the commodity business within the following sectors - Oil& Gas, Metals, Materials & Agriculture and in debt & money market instruments, thereby attempting to generate capital appreciation from the rising prices of commodities.

How will the money be allocated in the SBI Magnum COMMA Fund?
Around 65% to 100% of the investors money will be allocated to Equity and equity related instruments of commodity based companies, which indicate the High Risk High Reward profile of the investment. Some portion may be put in Foreign Securities/ADRs/GDRs of commodity based companies. Remaining would be kept in liquid debt instruments & cash for convenient redemption.

What is the minimum investment required for SBI Magnum COMMA Fund investment?
For investment in SBI Magnum COMMA Fund, minimum amount is Rs. 5000 and later in multiples of Rs. 1000.

Is there any choice of payout option in SBI Magnum COMMA Fund?
Yes. There are Growth and dividend payout investment options available. Along with that, the investors also have reinvestment and payout facility.

Any tax benefit available for investing in SBI Magnum COMMA Fund?
No. There is no tax benefit available for investments in SBI Magnum COMMA Fund. However, the dividend paid by the SBI Magnum COMMA Fund is completely tax free. Also Long Term capital gains tax exemption will be beneficial to the investor if invested for long term.

What are the exit and entry load for SBI Magnum COMMA Fund?
An entry load of 2.25% will be charged for investments less than 5 Crores. For higher amounts, NIL entry load.
Exit Load For less than 5 Crores,
  exit within less than 6 months – 1%
  Exit between 6 & 12 months – 0.5%
  Exit after 12 months – NIL
For investment more than 5 Crores – NIL exit load at all times.

Is there a SIP or systematic investment plan available for investment in SBI Magnum COMMA Fund?
Yes. There is a SIP plan available for investment in SBI Magnum COMMA Fund.
Rs.500/month - 12 months
Rs.1000/month - 6months
Rs.1500/quarter - 12 months

Withdrawal from SIP - A minimum of Rs. 500 can be withdrawn every month or quarter by indicating in the application form or by issuing advance instructions to the Registrars at any time

How is the performance and NAV values of SBI Magnum COMMA Fund? As on 24th July 2008, the NAV value is 19.11 for Growth Option while 17.35 for Dividend Option.

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Terni Energia IPO: Italy Solar Power IPO

A new IPO or initial public offering listing will be made on the Italian Stock Exchange on Friday, 25th of July 2008. The listing belongs to Italian solar power company Terni Energia which has recently completed its IPO process.

What is the price at which the Terni Energia IPO shares have been offered?
The Terni Energia IPO shares have been offered at the price of 1.3 Euros per share. This price is the bottom of the price range or price band of 1.3 to 1.7 Euros per share.

What is the market valuation of the Terni Energia IPO?
With the price per share of Terni Energia IPO shares set to 1.3 Euros per share, the valuation of Terni Energia is at around 31.23 Million Euros which is equivalent to USD 49 million approximately.

How many shares were offered for sale through the Terni Energia IPO?

Around 4 million shares of Terni Energia IPO were sold. This was around 18% of the company capital.

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Grameen Phone IPO Bangladesh

Bangladesh is set to see a roller coaster IPO this year. The IPO or initial public offering belongs to Grameenphone, a Norwegian-controlled mobile phone company of Bangladesh.

Given the size of the Grameenphone IPO, it is all set to become Bangladesh's biggest initial public offering in the recent past.

What is the size of the Grameenphone IPO?
The total size of the Grameenphone IPO is expected to be around 300 million USD. This includes a domestic IPO sell of around 150 million USD and the preceding placement of another 150 million USD.

Where will the shares of Grameenphone IPO be listed?
The shares of Grameenphone IPO will be listed on both the Dhaka Stock Exchange and Chittagong Stock Exchange.

Who are the book running lead managers or lead underwriters for the Grameenphone IPO issue?
The Grameenphone IPO is being lead underwritten by Citigroup Global Markets Bangladesh.

What is the business valuation and market outlook for Grameenphone IPO?
Grameenphone IPO is the leader in mobile business in Bangladesh. It has almost half of the 42 million mobile phone subscribers of Bangladesh. Mobile subscription is all set to increase in these countries, making it one of the front-runners for mobile business expansion.
The Grameenphone Company is presently controlled by Telenor of Norway. AK Khan agreed to sell a 30 per cent stake in TMIB to NTT DoCoMo in a $350m deal.

Is this the right time to enter into the capital markets for Grameenphone IPO?
Despite political uncertainties and problems, the Bangladesh stock market has seen a consistent rise in the Stock indices.

Though there has been a marginal dip of around 10% in the Bangladesh Index since the start of 2008, this is far better than the turmoil we have observed in other markets like India and US, which have gone down substantially.

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Stock Mutual Funds

There are hundreds and thousands of mutual funds available in the market. On a broad basis, we can classify them as Mutual Funds based on Stocks/Shares and Mutual Funds based upon Debt Instruments like Bonds. Though there are other types of Mutual Fund instruments, like commodity mutual Funds, in this article, we would concentrate upon the Stock Mutual Funds only and discuss which are the best available stock mutual funds and how should an investor go about investing in such stock mutual funds or Equity mutual Funds.

What are Stock Mutual Funds OR provide an Introduction to Stock Mutual Funds?
In the simplest language, the stock mutual funds or "equity funds" are those mutual funds which invest their money only in stocks or shares or equities. Since stocks are considered to be risky, hence the stock mutual funds which are constituted only by Stocks are also risky, as compared to other types of funds, like bond funds or Money Market funds.
Though they come with high risk, along with that they are expected to provide high returns. It is usually assumed that stocks give better returns over the long run as compared to other instruments. They are also supposed to beat the affects of inflation. Whether these assumptions are true or not, is a subjective task, because investors like you and me have to take a call. Most of the investors do it by leaving their money to be managed by professional money managers who are supposed to understand the stock market better than the common man. Since we tend to leave the investment decisions to the mutual fund managers, atleast we should be aware about studying the stock mutual fund investment objectives and performance of the fund manager.

Which are the best performing stock mutual funds recently?
Though there is no guarantee of the returns from past performance of the stock mutual fund, it does give the pointers towards how the fund manager has performed. As per the various information available on internet sites, here are the Best Performing Stock Mutual Funds:

Top 3 best performing stocks mutual fund over the past 1 year:

Oppenheimer Commodity Strategy Total Return Fund: Offering from the Oppenheimer fund house, this fund investment objective is to seek total return. It is designed to provide investor portfolio diversification, long term growth potential and a hedge against inflation through exposure to commodities markets. The fund primarily invests in commodity-linked derivatives and investment-grade and non-investment-grade corporate bonds and notes. The fund may also invest up to 25% of its total assets in a wholly-owned and controlled subsidiary.

Commodities Strategy (A Class) Fund: Another Commodity Fund from the Rydex investments Fund house. The fund invests in in commodity-linked structured notes, ETFs that provide exposure to the commodities markets, and in commodity-linked derivative instruments, including swap agreements, commodity options, and futures and options on futures, and equity securities. It is non-diversified stock mutual fund and the expense ratio is 1.17%.

Goldman Sachs Commodity Strategy Fund : The fund invests in a portfolio of commodity index-linked securities (including leveraged and unleveraged structured notes), other commodity-linked securities and derivative instruments that provide exposure to the performance of the commodities markets, and in other fixed income and debt instruments. Under normal circumstances, it invests at least 25% of assets in commodity-linked structured notes. The fund is a non-diversified stock mutual fund.

Top 3 best performing stocks mutual fund over the past 5 year::

U.S. Global Investors Global Resource Fund: The investment seeks long-term growth of capital plus protection against inflation and monetary instability; current income is a secondary objective. The fund normally invests at least 80% of assets in the equity securities of companies within the natural resource sector. It may invest without limitation in the various industries of the natural resource sector, such as oil, gas, and basic materials. The fund invests at least 40% of assets in securities of companies that are economically tied to at least three countries other than the U.S. It is non-diversified stocks mutual fund.

BlackRock Global Resources Fund: The fund invests at least 80% of total assets in securities of global energy and natural resources companies and companies in associated businesses, as well as utilities. It may invest without limit in companies located anywhere in the world and will generally invest in at least three countries and in companies tied economically to a number of countries. The fund invests primarily in developed markets, but may also invest in emerging markets. It invests up to 20% of total assets in other U.S. and foreign investments. It is non-diversified stocks mutual fund.

Profunds UltraSector Oil & Gas Fund: The investment seeks daily investment results that correspond to 150% of the daily performance of the Dow Jones U.S. Oil & Gas index. The fund normally commits at least 80% of assets to equity securities contained in the index and/or financial instruments that have similar economic characteristics. It employs leveraged investment techniques and may use sampling techniques in seeking its investment objective. The fund invests assets which are not invested in equity securities or financial instruments in debt instruments or money market instruments. It is non-diversified stocks mutual fund.

Money Mutual Funds

As far as the general perception goes, the Mutual funds are assumed to contain relatively less risk as an investment options when they are compared to shares. The reason given as Individual shares may see sharp moves in prices over a small period of time. The same is the case with money market instruments like T-Bills or treasury bills and CD or certificates of deposits. In this article, we will given an introduction to Money Mutual Funds, an introduction to Money Mutual Funds, an example of Money Mutual Funds, How to invest in Money Mutual Funds and the risks factors of Money Mutual Funds.:

The T-bills and CDs give a confirmed and fixed rate of return at a regular time interval, but the problem with T-Bills and CDs is that they require big amount of investments, hence individual investors who wish to get returns on small amount of principle capital, may not be able to afford investing in these T-Bills and Securities.
That’s where the money market mutual funds come into picture which invests in debt instruments of short term with the sole objective of earning interest for their shareholders are called as money market mutual funds. Since they act as mutual funds, they manage to get collect small amounts of money from thousands or millions of investors and then used this accumulated pooled money to invest in short term debt instruments like T-Bills or CD.

These money mutual funds or money market mutual funds are offered to investors as “no load mutual fund” option.
In terms of categorization based upon the investors, there are two types of money market mutual funds.

• for institutional investors – who invest big amount of money, usually by governments, institutional investors and big business houses. As per the available information, the biggest investment in money mutual funds has been from AIM which invested 31 billion USD in T-Bills.

• for retail investors – who invest small amount of money. They constitute nearly half the market size and are driven by retail investors which may be through stock brokers. There primary investments are in short term T-Bills, tax free funds, government funds as well as private mutual funds. The advantages with retail money market funds are you can withdraw money even in smaller denominations like $ 500 by drawing a check like you do with your bank account. You also have the option of a very simplified redemption to exercise.


What Is the advantage of Money Mutual Funds or Money Market Funds?
If one looks at the tremendous volume of money market investments, it will indicate the popularity and reasons why people like to go with this investment.
• Risk Free Investment- Money market funds are considered to be relatively safe because they invest the money in government backed T-Bills and similar instruments.
• Investments in Smaller Amounts: One can invest as little as $500 in a money market mutual fund, while a direct investment in money market instruments may require a minimum of $5,000.
• Fixed Returns and Timely Payout – While stock and stock mutual fund transactions may require as many as 3 days for settlement, the money funds offer immediate settlement like the normal instruments of money market Hence, investors have the money available for immediate disposal.
• Wide variety from various firms: Almost all the good performing money mutual funds have similar investment criteria, good ethical practices and professional behaviour. This allows for investor confidence and loyalty.

Related Articles: Green Mutual Funds  Alternative Energy Mutual Funds  Low Cost Mutual Funds

Related: Tax Free Municipal Bonds

Here are some investment tips for investing in money mutual funds:
• Look at the Ratings: All Money market funds are assigned ratings by firms like Moody’s, S&P (Standard & Poor). Instead of going blindly for investment, it is always advisable to check for the fund ratings. (Best rating is 'A1' by S&P and 'P1' by Moody's).
• Look at the underlying instruments: Since your money is managed by mutual fund managers, they have the sole discretion of investing your money into the investment of their choice. It is always advisable to look for what these fund managers are buying, and look at the ratings of the underlying instruments.
• Purchase and Exit Conditions: usually, all the money market mutual funds have NAVs fixed at $ 1.00. Also look for minimum investment required and exit conditions to avoid surprises at the last moment.
• Cost/ Expense Ratio of Investment in Money Mutual Funds: Generally, the money mutual funds are sold at no load. Some funds may charge money for exit load or entry load. Be careful about such charges as a high return money mutual fund may look good in terms of returns but it may be nullified by high expense ratio.
• Tax Benefit: usually, the tax free money funds will have low returns, but if you make the overall calculation taking into consideration the amount of tax savings, then you may find that the low return tax saving money market fund is a better choice. That also minimizes your cost. Hence it is advisable to do all your calculation and select the appropriate money mutual fund (Low return tax saving money mutual fund or high return taxable money mutual fund).

FAN ETF First Trust ISE Global Wind Energy Index Fund

A New ETF or Exchange Traded Fund has been launched in the market in the Wind Energy Sector. The Wind ETF is called FAN or First Trust ISE Global Wind Energy Index Fund. This is one of the unique products from the wind energy sector by FirstTrust Mutual Fund house.

FirstTrust Global Wind Energy ETF (the Exchange Traded Fund) is designed to track the performance of the ISE Global Wind Energy Index. The Fund will normally invest at least 90% of its assets in common stocks that comprise the Index or in depository receipts representing securities in the Index.

What is a Wind Energy Fund or Wind Energy ETF?
Wind Energy Mutual Funds or Wind Energy ETF Exchange Traded Funds are a type of mutual funds or ETF which fall into the Alternative Energy Fund category. These Wind Energy funds typically concentrate upon investing the money in companies which are in the business of wind energy and are primarily manufacturers, developers, distributors, installers, and users of energy derived from wind sources.
Hence, these Wind Energy Funds provide an excellent investment option to investors who are conscious about the environment and want to go for Green Investments, thereby avoiding companies whose projects may harm the environment. Wind Energy Funds or ETF are one of the best options for such investors.

Which benchmark indices index are available to track the performance of the Wind Energy Sector?
There are atleast 2 such index or indices available to track the performance of the Wind Energy Sector. First is the NASDAQ OMX Clean Edge Global Wind Energy Index and second one is the ISE Global Wind Energy Index, which is the first global wind index to provide a benchmark for investors interested in tracking public companies that are active in the wind energy industry. Eligibility to be included in the index is limited to those companies that are actively engaged in the wind energy industry, such as the development or management of a wind farm or the production or distribution of electricity generated by wind power. To date, only 53 companies worldwide have been included in the index.

What is the FAN ETF First Trust ISE Global Wind Energy Index Fund?
The First Trust ISE Global Wind Energy Index Fund or FAN ETF is an exchange traded fund based upon the ISE Global Wind Energy Index. FAN ETF will attempt to closely track the performance of the ISE Global Wind Energy Index.
The top 10 holdings of this index/fund are: REpowersystems AG - 10.51%, Vestas Wind Systems - 10.28%, Gamesa - 8.81%, Hansen Transmissions - 6.80%, Japan Wind Dev. Co. - 5.13%, Babcock & Brown Wind Partners - 4.40%, Nordex AG - 4.34%, Theolia SA - 4.28%, Clipper Windpower - 2.94%, Gurit Holding AG - 2.81%.

What is the expense ratio of FAN ETF First Trust ISE Global Wind Energy Index Fund?
The expense ratio for the FAN ETF Fund is 0.60%, and FAN ETF trades on the NYSE Arca exchange.

Related Competitor Product: Invesco PowerShares Global Wind Energy Portfolio

Related Articles: Green Mutual Funds  Alternative Energy Mutual Funds   Low Cost Mutual Funds

What are the fundamental valuations of FAN ETF First Trust ISE Global Wind Energy Index Fund?
The current PE or price to earnings ratio of FAN ETF fund is 25 and net assets are worth around 9 million USD. As this alternative energy sector is supposed to see a big investment, so is expected from the Wind Energy sector investments.
What are the risk factors for FAN ETF First Trust ISE Global Wind Energy Index Fund?

The FAN ETF may also invest in utility companies. Companies in the industrials sector face risks that arise from the general state of the economy, intense competition, consolidation, domestic and international politics, excess capacity and consumer demand, spending trends in that they may be significantly affected by overall capital spending levels, economic cycles, technical obsolescence, delays in modernization, labor relations and government regulations.o

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GCL Silicon Technology IPO ADS

A new IPO or initial public offering is set to hit the American Capital Markets very soon. The IPO belongs to Hong Kong-based company GCL Silicon Technology Holdings Incorporated.

What is the size of the GCL Silicon Technology IPO?
The GCL Silicon Technology IPO is expected to raise around $862.5 million USD.

What kind of shares will be offered through the GCL Silicon Technology IPO?
The shares to be offered by GCL Silicon Technology IPO will be American Depository Shares or ADS.

What is the business of GCL Silicon Technology company?
GCL Silicon Technology Holdings Limited or GCL Silicon, is dedicated to the research, development, production and sales of polysilicon. Polysilicon is the fundamental raw material used to produce semiconductors and photovoltaic (PV) applications. In recent years, polysilicon has been used extensively in the production of solar cell panels in the PV industry, which has significantly increased its market demand. According to the global industry forecast, solar power will surpass nuclear power to become one of the most important fundamental energy sources in the 21st century. This and other factors have generated a rapid increase in the global market demand for polysilicon.

GCL Silicon plans to set up a polysilicon production base for electronic grade and solar grade polysilicon in the next five years, with a total annual output over 15,000 tons.

Having a committed sense of both corporate and social duties and responsibilities, GCL Silicon seeks to establish a natural way of life by utilizing natural energy!

Where will the fund raised or capital raised from the GCL Silicon Technology IPO be used?
The GCL Silicon Technology IPO proceeds will be used for contribution to its China unit Jiangsu Zhongneng Polysilicon Technology Development Co, acquisitions, redemption of convertible bonds and other general corporate purposes.
GCL also plans to buy Sun Wave Group Ltd and Greatest Joy International Ltd, which own a 20 percent and 16 percent stake, respectively, in Jiangsu Zhongneng Polysilicon Technology Development and are controlled by GCL's chairman and majority shareholder, Zhu Gongshan, and affiliates.

Any other information available for GCL Silicon Technology IPO?
GCL will pay $240.6 million in cash using a part of the proceeds from the IPO, issue 2008 convertible bonds worth $446.9 million and about 268.5 million of its common shares.

What are the financial results of GCL Silicon Technology?
GCL Silicon Technology, which was not profitable until 2007, posted revenue of $81.5 million and net income of $35.5 million for the three months ended March 31, 2008.

Who are the lead underwriters for the GCL Silicon Technology IPO issue? Morgan Stanley, Credit Suisse, HSBC Securities, Cowen & Co and Piper Jaffray are the lead underwriters for the GCL Silicon Technology IPO. The company will list its ADS on the New York Stock Exchange with the symbol "GCL."

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Wind Energy ETF Fund: PowerShares Global Wind Energy Portfolio

A new sector of investments has become the hot sector for investments. Moving away from the traditional fossil fuel based energy sector funds, the investors who are concerned about the environment are now looking for Alternative Energy Mutual Funds. In this article, let us discuss the pros and cons and examples of one type of alternative energy mutual fund, which is Wind Energy mutual fund or Wind Energy ETF.

What is a Wind Energy Fund or Wind Energy ETF?
Wind Energy Mutual Funds or Wind Energy ETF Exchange Traded Funds are a type of mutual funds or ETF which fall into the Alternative Energy Fund category. These Wind Energy funds typically concentrate upon investing the money in companies which are in the business of wind energy and are primarily manufacturers, developers, distributors, installers, and users of energy derived from wind sources.
Hence, these Wind Energy Funds provide an excellent investment option to investors who are conscious about the environment and want to go for Green Investments, thereby avoiding companies whose projects may harm the environment. Wind Energy Funds or ETF are one of the best options for such investors.

What is the market outlook for returns on Wind Energy Investments?
As per the expert comments, Wind energy is one of the world's fastest growing energy industries. Wind energy was around $30 billion global industry in 2007 and is projected to continue growing.
With the ever growing demand for traditional energy sources like fossil fuels and gas leading to their depletion, the alternative energy sector is much sought after. Everyone is looking for alternative sources of energy and wind energy sector appears to be a promising one with dual benefits – supplying energy and keeping the environment clean and healthy.

Are there any benchmark indices index available to track the performance of the Wind Energy Sector?
NASDAQ recently launched an index for tracking Wind Energy sector. It’s called the NASDAQ OMX Clean Edge Global Wind Energy Index. This index is comprised of companies related to the use, development, manufacturing or distribution of wind energy. Clean Edge divides the components of the Index into two categories; Pure Play Securities and Multinational Corporation Securities. To determine which category a company is in, Clean Edge applies proprietary screens to each eligible component.
As of July 22, 2008 , this index had the following constituents: Nordex AG, Gamesa Corp Tecnologica SA, Vestas Wind Systems A/S, Iberdrola Renovables, Hansen Transmissions International NV, EDF Energies Nouvelles SA,Clipper Windpower Plc, China High Speed Transmission Equipment Group Co. Ltd., Theolia, Greentech Energy Systems, Zoltek Cos Inc, American Superconductor, Canadian Hydro Developers Inc, Fersa Energias Renovables SA, Repower Systems, GURIT HOLDING AG-BR, Japan Wind Development Co., Ltd, General Electric, Siemens AG, E.On AG,ABB Ltd. (ADR), C. Rokas S.A., Renewable Energy Generation Ltd., Plambeck Neue Energien-Reg, FPL Group, China WindPower Group Ltd., Centrica,Mitsubishi Heavy Ind.,AES Corp.,Xcel Energy Inc,Acciona SA

What are the available fund options for investments in Wind Energy Sector?
The most recent development has been the launch of an ETF calledPowerShares Global Wind Energy Portfolio by Invesco Poweshares, which is a front runner in Exchange traded fund products. This PowerShares Global Wind Energy Portfolio ETF is based upon the above mentioned NASDAQ OMX Clean Edge Global Wind Energy Index and will closely track the performance of this index.

Related Competitor Product: FAN ETF First Trust ISE Global Wind Energy Index Fund

Related Articles: Green Mutual Funds  Alternative Energy Mutual Funds   Low Cost Mutual Funds

What are the risks involved with Wind Energy Fund ETF Investments?
Since the PowerShares Global Wind Energy Portfolio is based upon NASDAQ OMX Clean Edge Global Wind Energy Index, which is global in nature, there is always a currency or forex risk. Along with this also comes the geo-political risk, along with local tax laws, accounting standards, etc.
Then there are the general risks like obsolescence of technology, emergence of other mediums of energy sources like solar energy which may be more efficient and similar things.

Where can an investor get more information about the Invesco PowerShares Global Wind Energy Portfolio?

Interested investors may seek more information by calling Invesco toll-free number: 800.983.0903.

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Guinness Atkinson Global Energy Fund Review GAGEX

Investors who are looking for investments in energy stocks or energy sector are today having loads of options to choose from. One such energy sector specific fund is the Guinness Atkinson Global Energy Fund and has the symbol GAGEX.

What is the Guinness Atkinson Global Energy Fund all about?
The Guinness Atkinson Global Energy Fund is a fund which primarily invests in stocks of companies which are engaged in the production, exploration, discovery or distribution of energy, including the research and development of alternative energy sources.
This fund attempts to gain capital appreciation in the long term by banking on the ever growing energy demand, especially on the energy hungry developing countries like India and China.

Though there are many funds offering investments in the alternative energy mutual funds, the traditional sources of energy through fossil fuels – like oil, natural gas, coal, and other fossil fuels will continue to remain the important energy source for years and decades.
The Guinness Atkinson Global Energy Fund is banking for its performance on the above assumption.
What criteria is followed while selecting companies for investment by Guinness Atkinson Global Energy Fund?

• The Guinness Atkinson Global Energy Fund invests in energy companies worldwide without regard to market capitalization, and in companies domiciled in the U.S. and foreign countries, including, potentially, companies domiciled or traded in emerging markets.

• Energy includes oil, natural gas, coal, nuclear, utilities, and alternative energy. Activities include exploration, discovery, production, and distribution.

What are the risks involved in investments in Guinness Atkinson Global Energy Fund?
Apart from the risk of oil prices cooling off which may lead to prices of these stocks and hence the Guinness Atkinson Global Energy Fund NAV value may go down substantially. There are other risks also. Since the Guinness Atkinson Global Energy Fund invests on a global basis in both foreign and domestic energy companies, there is a forex risk or foreign currency risk. This also relates to geo-political risk, market specific volatility and problems with local taxes and accounting methods.
At the end of the day, investor is concerned about his investment value and its returns (profit/loss). Hence, there are substantial amount of risks involved.

What has been the performance of the Guinness Atkinson Global Energy Fund?
The Guinness Atkinson Global Energy Fund was started in June 2004. Since inception, it has given a return of around 37% (as per their website).
Morningstar has assigned a rating of 3 stars for the Guinness Atkinson Global Energy Fund, which is exactly mid way average for the category.

Related: Green Mutual Funds  Alternative Energy Mutual Funds   Low Cost Mutual Funds

What is the expense ratio for Guinness Atkinson Global Energy Fund?
As per their latest prospectus (dated May 30, 2009), the gross expense ratio for Guinness Atkinson Global Energy Fund is 1.34% while the net expense ratio is 1.37%.

On the geographical front, what has been the investment pattern of Guinness Atkinson Global Energy Fund?
The maximum exposure (47%) has been on the US energy companies, followed by Canada (16.6%). Then the remaining countries stand at less than 5% each and are primarily concentrated in Europe and South America.

Where can I get more information on the Guinness Atkinson Global Energy Fund?

Interested investors can call the Guinness Atkinson Global Energy Fund helpline (toll free from US) 800-915-6566.

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Franklin Templeton Fixed Tenure Fund (FTFTF) - Series X

There is a new FMP or Fixed Maturity Plan in the offering from the Franklin Templeton Mutual Fund house. It claims to be a combination of debt and equity and if offering 2 plans (A & C) through which the investors can invest their money.

What is the Franklin Templeton Fixed Tenure Fund (FTFTF) all about?
The Franklin Templeton Fixed Tenure Fund (FTFTF) is a closed ended income fund which will allocate the investor’s money into different instruments (both debt and equity, but major focus will be primarily on debt instruments). This fund thereby will attempt to gain on both fronts –offering steady returns through interest earned on fixed income securities and aiming to achieve capital gains by investing in equities.

How will the money be invested in Franklin Templeton Fixed Tenure Fund (FTFTF)?
There will be two investment plans:

Plan A: Debt securities (including securitised debt) and Money market instruments: 80%-100%, Equities and Equity-linked instruments: 0%-20% (investments in ADR/GDR/foreign securities up to 40% of the equity/ debt portion; exposure in derivatives up to a maximum of 50%)

Plan C: Debt securities (including securitised debt) and Money market instruments: 70%-100%, Equities and Equity-linked instruments: 0%-30% (investments in ADR/GDR/foreign securities up to 40% of the equity/ debt portion; exposure in derivatives up to a maximum of 50%).

So investors who have more affinity for equity can opt for plan C which will get them marginally more exposure in the equities side. Others who want to have more investments in bond and fixed income securities can opt for Plan A.

What is the load structure: Entry load and Exist load in Franklin Templeton Fixed Tenure Fund (FTFTF)?
Entry Load for Franklin Templeton Fixed Tenure Fund (FTFTF): Nil or Zero.

Exit Load Franklin Templeton Fixed Tenure Fund (FTFTF):
Plan A - Up to 2.5% on redemption/repurchase/switch-out, based on the period of holding;
Plan C - Up to 3% on redemption/repurchase/switch-out, based on the period of holding.

The exit load cost is really high. Compare this to any equity based mutual fund which only charges 2.25% of entry load and no exit load may sound a better investment, if looking from point of view of cost of investment. However, one should also keep in mind the time value of money, as here the charges would be levied on exit, while in mutual fund investments, they are levied on entry.

What is the New Fund Unit Price of Franklin Templeton Fixed Tenure Fund (FTFTF)?
Each unit of Franklin Templeton Fixed Tenure Fund (FTFTF) during the NFO period would be offered at the rate of Rs. 10 per unit.
Since it is a close ended scheme, only a limited number of units will be sold in case of over-subscription.

Any tax benefit available through investment in Franklin Templeton Fixed Tenure Fund (FTFTF)?
There is no tax benefit available in Franklin Templeton Fixed Tenure Fund (FTFTF).

What are the NFO dates for Franklin Templeton Fixed Tenure Fund (FTFTF)?

The NFO period for Franklin Templeton Fixed Tenure Fund (FTFTF) is currently open and will close on 31st July 2008.

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Auto Loan Car Loan: Interest Rates decided by Credit Profile

So you decided to go for your dream car or SUV or a two-wheeler but you do not have sufficient money to purchase your dream vehicle. What do you do? Basically, nothing!
Just give a call to any of the Banks and the auto loan representative will come running to your home and do all the needful for you. What you need to provide him is your latest salary slip or offer letter and copies of some other formal documents – that’s it. The process is so smooth and easy.

However, what is it that worries the auto loan or car loan borrowers – it’s the interest rate charged to them. In last few months, we have seen a huge fluctuations in the interest rates. The interest rates in India are going up, causing a problem for loan borrowers. But fortunately, there is some respite for loan borrowers – those borrowers who have a good credit profile.

It’s no longer true that banks (especially private banks) treat one and every customer in the same way. The same applies to the interest rate that is charged to the customers – it varies from bank to bank and within the same bank it varies from customer to customer, depending upon their credit profile.

Apart from that, the banks or financial companies also decide the auto loan interest rate based upon your salary, financial situation (cash-inflow and expenses), residential status, residential locality, previous and existing loans and their repayment, etc.

For example, ICICI bank car loan or ICICI Bank auto loan has the biggest difference in terms of loans offered for two wheeler purchase. They even put the interest rates higher in branches where there have been more defaulters in the past.

Other loan providers like Fullertron also decide loan rate based upon the fact that whether your are married, staying alone or with family, employment history, etc.

The case of two wheeler loans is unique. Big government banks like PNB, SBI, etc. are not very aggressive when offering two wheeler loans. The reason being that two wheelers are usually purchased on loan by people from lower income groups and hence the default rate is high. Secondly, the amount of loan for two wheeler is less, hence, banks cannot earn good profit on loan repayment.

On the other hands, almost all the banks are quite aggressively marketing their car loan or 4 wheeler auto loan campaigns, including SBI, PNB, ICICI, HDFC, etc. The reason being that car loans require considerably big amount, and people from usually better income groups and a middle to high profile candidates opt for car loans.
All in all, it is important to maintain a good credit profile.

The CBI or Credit Bureau of India, is collecting data from all the banks in India. So if you default on a loan taken from one bank, it will not be easy for you to get another loan from other bank as the checks are now in place.

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