Mutual Funds are an easy way to invest nowadays. A mutual fund is essentially a "stock of stocks". It's a company that invests in the stock of many different companies, often with a theme, such as the furniture industry, for example. These funds are a great way to diversify portfolios within a chosen sector, and mitigate the risk of failure. In the case of furniture, if IKEA suddenly fails, perhaps another company will rise, and the loss our (the investors) part is minimal. Also, mutual funds are a good way to gain profit from the whole of a sector. If we expect furniture companies to explode in value, perhaps because an increase in the construction of houses, then by investing in a furniture mutual fund, we can see huge profits. With all this in mind, why not invest in a sustainability mutual fund?
PAX World is a environmental mutual fund. Their mission, according to their website, is to aim for long term growth, rather than short term growth (a feature of most mutual funds), but do to so in the realm of sustainability. PAX (Stock symbol PXWGX) invests in "innovative companies" that are focused in improving energy efficiency, smart and sustainable water use and infrastructure, and waste management devices, as well as any other service or company developing technology that is highly beneficial to the environment. By investing in PAX World, you invest in all of these sustainable areas. Additionally, the fund is also diversified within the sustainability market. 40% of investments are in non-US companies. PAX doesn't limit the fund to one size or type of company, and instead buys in small, medium, and large corporations, and can invest in both "growth" or "value" stocks - stocks for profit or security.
PAX World's stock also has a positive market trend, if we look in the long term, as we should with mutual funds. Over the last year, PAX gained two full dollars in it's stock price. If we go back even further, PAX World's stock price has more than doubled in the last five years, following the financial collapse. Of course, some growth is to be expected from all companies, but I think PAX's growth, especially recently, can be attributed to the growing green movement among investors. Investors realize that green technology is the way forward, as we will soon have to solve the global energy and ecological crisis.
PAX World's stock is a fabulous investment for anyone looking to support alternative sources of energy besides the unsustainable fossil fuels, and for those who want to invest in a stock that promotes sustainability in all sectors. By investing in PAX's stock, you're (in a very small way) helping sustainable companies, and therefore helping to solve the sustainability crisis.
Works Cited:
"A Leader in Sustainable Investing." Home. Pax World Management LLC, n.d. Web. 02 Aug. 2013. <http://www.paxworld.com/>.
"Our Products." Pax World Global Environmental Markets Fund. Pax World Management LLC, n.d. Web. 02 Aug. 2013. <http://www.paxworld.com/our-products/pax-world-mutual-funds/global-environmental-markets-fund>.
"Pax World Growth Fund - Google Finance." Google Finance. Google Finance, n.d. Web. 02 Aug. 2013. <https://www.google.com/finance?q=MUTF:PXWGX>.
Ethan - I think this is a great find. I will send a link to my banker at Chase to invest in it.
ReplyDeleteI like how you looked at it through a different perspective. Instead of thinking only about RoI and quarterly gains, you focused on how sustainable PAX World is, and how the company will grow in the long-term.
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