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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