Sunday, 5 May 2013

Exploring Options For Your Portfolio

By Cleveland Jernigan


Adding mutual funds to your portfolio can be a great way to diversify and enjoy a good return on your overall investment. Mutual funds have the advantage of being professionally managed, which saves the investor a great deal of time and stress. In addition, mutual funds tend to be a safer option than investing in a single company as the money is spread around many companies or industries.

Energy funds can be an excellent option for many reasons and there are several different types. You can invest in a global energy fund that include oil exploration companies, drilling companies, refineries and general oil companies such as Exxon and Chevron. Typically, these funds invest in many different companies located both in the United States and other countries around the globe, including Canada, China and the United Kingdom.

There are also companies that invest in alternative sources of energy. These energy funds will include investments in biofuel developers, wind energy, hydro energy, geothermal energy and also solar energy. Again, there will be as many as a dozen companies included from many different countries, although primarily in China, North America and Europe.

The economies of many foreign countries are expanding at a rapid rate, and there are mutual funds that take advantage of this fact. There are funds for all parts of the globe, including Asia funds and China funds. The China funds will include a variety of companies in both Hong Kong and mainland China in many industries from energy to telecommunications to real estate and technology.

If you prefer not to focus solely on Chinese companies, there are diversified Asia funds that include many different nations such as Taiwan, Malaysia, Indonesia, Malaysia, the Philippines and more. Companies from China and Hong Kong also usually are included in these broader Asia funds. The industries included will range from energy to technology to real estate and telecom services. In addition to Asia funds and China funds, there are mutual funds that concentrate in other areas such as Africa or the four BRIC nations of Brazil, Russia, India and China.

The idea behind many mutual funds is that you are investing in progress, whether it is progress in a region such as Asia or an industry such as alternative industry. There are also funds that combine investments in several progressive companies. These might include companies involved in genetic research or those who design high-tech software programs or even the latest electronic components needed for computers and mobile phones.




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