College Mutual Fund Investments

    For my college savings, I want to invest in the Sierra Club Stock Fund, an eco- friendly fund, and Putnam Investment Fund, a mutual fund.  The Sierra Club Fund is riskier, but with the current problem of global warming I think that it is likely to do very well and has the ability to grow very fast.  Putnam Investment, on the other hand, is a well established fund that may not grow so fast, but is safe.  Putnam also has a track record that would increase my principle, a lot more than if it was left in the bank.

    Eco-friendly funds, suchas the Sierra Club, are becoming more popular, especially with younger adults. I predict that it will do well in the long term. With the cost of fuel and oil going sky high, investing in alternative energy makes sense. The added problem of increasing greenhouse gases and global warming has also increased the importance of investing in alternative energies.  It is not only involved in alternative energy, but in energy efficient products which are of growing interest.  Substantial growth is predicted in the next two decades.  The Sierra Club Fund was only started in 2003 and invests in environmentally and socially progressive companies in the United States.  It has done well since 2003 with a generally upward trend.  Eighty percent of its assets are in stocks that include the top 100 stocks that meet their eco-friendly criteria.

    The Putnam fund has existed for many years, and unlike the Sierra Club Fund, it has less assets in stocks.  It is an enormous fund with a substantial financial base.  It has consistently made more interest than putting money in the bank.  It is a combination of 73% stocks, 22% bonds, and some cash.  The stocks are mostly in financial services, health care and industrial materials.  The stocks include domestic and international stocks.

    I think the two funds are different, but likely to increase the value of my investment.  One is riskier, and will balance out the safer fund.  One will help improve the planet which makes me feel good about it.  One will increase my savings probably better than putting the money in the bank.