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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