What is the Difference Between "Energy Mutual Funds" and "Alternative Energy Mutual Funds?"This is a question that we are frequently asked. To answer the question we need to first ask "What are Energy Mutual Funds?"
Energy Mutual Funds are simply a collection of investment products that are tied to the energy field. Energy mutual funds purchase stocks, bonds and derivatives of companies that are involved in the development, research, production or distribution of energy. The energy may be derived from numerous sources, including but not limited to oil, solar, wind, coal, etc.
The next step in determining the difference between energy mutual funds and Alternative energy mutual funds is to ask "What are alternative energy mutual funds?"
similar to Energy Mutual Funds, Alternative Energy Mutual Funds purchase investments related to the energy field. The difference with alternative energy mutual funds is that they invest only in alternative energy sources such as solar and wind power, that are determined to be "clean" and "renewable."
Now you know the difference between energy mutual funds and alternative energy mutual funds.