"Green Mutual Funds" are funds that invest in companies that are good for the environment. Typically these companies either

1. Are engaged directly in helping the environment--like innovative recycling, waste management, or asbestos removal companies, or

2. Have clean, sustainable, "Green" business models--meaning that their processes are not environmentally harmful

These "Green" funds have been gaining popularity recently as more and more investors are starting to think about the environment. Scares of global warming and increasing rates of natural disasters are pretty spooky, and many believe that if we don't start taking care of the environment, this Earth may not be a very nice place in the near future.

Why not make money and help the environment at the same time?

Ahh, if only investing socially were that easy. You see, the problem is that it's hard to make money in these funds. Most "Green" funds that are available have dismal performance histories. Then you look at some not-so-socially-responsible choices like Phillip Morris (cigarettes) that are making money hand-over-fist, and wonder how you can get the best of both.

Alternative Energy is where it's at

I'm a believer in alternative energies. The only thing is, it's not quite the time to go Green with alternatives yet. Most of these things--like wind energy, solar energy, fuel cells, etc.--are still in their developmental stages. That means that stuff's expensive and they're not particularly profitable.

Wait it out a few years until they get their processes down-pat. Then they'll start cutting-costs, and actually making the money. But however you view it, you have to admit there are tremendous potentials in some of these companies.

So to answer the question, "Is it possible to make money in "Green Mutual Funds?"

Probably someday, but not today.