Invest in Sierra Club Mutual Funds

The San Francisco-based Sierra Club is known for its commitment to the environment, and its mutual funds reflect this allegiance. Managed by Forward Management, Sierra Club Mutual Funds invests exclusively in eco-friendly companies. Follow these steps to invest in Sierra Club Mutual Funds.

Research and Invest in Sierra Club Mutual Funds

Familiarize yourself with the terminology of investing. Check a finance Web site like The Investment FAQ (see the Resources section below). Unless you understand investment semantics, you won't be able to read the market.

Create a game plan. How much money do you want to put in your retirement fund, how much in the education fund for your children and how much should be devoted to income generation? Do you want a range of stocks from stable, low-growth to riskier high-return issues?

Peruse the prospectus. Everything you need to know about a mutual fund is contained in the prospectus, which sets forth goals, explains costs and assesses risk. Download the prospectuses directly from the Sierra Club Mutual Funds Web site (see Resources below).

Check the history of a fund in its prospectus, which includes charts that detail past and present performance. Use this data to make a wise investment.

Compare the fees. The funds offered through Sierra Club Mutual Funds have relatively low operating expenses at only 1.29 percent of the daily net assets.

Beware of early withdrawal. To keep the operating expenses low, the funds charge a 2 percent early redemption fee. Therefore, if you redeem your shares within 60 days of investing, you will pay for the privilege.

Remember the principles. Due to the Sierra Club's high environmental standards, their investment pool of companies is limited. Though the club believes its standards will increase profitability, they may have negative short-term effects.

Make your move. If you like what you see in the prospectus, then contact your financial adviser or the Sierra Club directly and invest.

Monitor your investment. The Forward Management group updates the Web site with daily performances. Pay attention to what's happening as it's happening.

Read the annual and semiannual performance reports online. Study these reports to track the ebb and flow of the fund.