Why You Should Never Pay Sales Loads on Mutual Funds

2009-05-19T08:04:00.000-07:00

Many of the energy mutual funds on the market charge sales loads for the priviledge of investing in their fund. This is a waste of your money. Sales loads either cause you to pay a commission upfront before obtaining shares, or in the end when you redeem your shares for cash. They either cause you to buy less that you otherwise could or receive less of your profits back.

Historically the returns of loaded funds and no load mutual funds are the same. If two funds grow at the same rate, and one charges you to buy them, why wouldn't you purchase the free one?

When investing make sure that you only consider the Top No Load Mutual Funds

Energy Mutual Funds vs. Alternative Energy Mutual Funds

2009-04-14T13:23:00.000-07:00

Energy Mutual Funds are mutual funds that invest primarily in stocks of energy prioducing companies. These mutual funds will place their money in any business that produces energy, regardless of the form of energy it produces. Frequently energy mutual funds invest heavily in the oil industry. Because much of the world is power hungry and reliant on oil many of these companies, and in return energy mutual funds, are quite profitable.

Alternative Energy Mutual Funds also invest in companies that produce energy, but they are focused more on alternative or renewable energy sources such as wind or solar power.

As the world's demand for electricity increases through development and citification the need for energy has grown faster than the production of energy. Since much of the world is beginning to understand the effects of pollution on the environment, the demand for alternative and renewable energy sources is growing rapidly. This is causing many alternative energy stocks to have very positive earnings outlooks over the long term. That in effect should lead to heavy profits for Alternative Energy Mutual Funds.