Commodity Funds
Commodity funds invest in different commodities directly or through shares of commodity companies or through commodity futures. These funds can invest in a particular commodity like gold, silver, oil, pulses etc. or have a diversified portfolio of commodities.
A true commodity fund is one which invests directly in commodities. Most of the investors actually don’t want to buy the commodities but trade and get benefited from commodity price fluctuations. Commodity futures are better suited for this.
Then why investors put money in commodity funds rather than directly investing in commodities or commodity futures? Usually highly traded commodities are allowed in commodity market and their price gets changed frequently. To invest directly the investor should have good knowledge about this market and should follow the market dynamics. For those who don’t get much time or don’t have this market knowledge commodity funds go for commodity funds.
Related posts
Comments
Leave a Reply
-
-
Recently Posted
- Exchange Traded Funds (ETF) – Indian ETFs
- Mutual Funds – Market Cap Breakdown
- Mutual Funds – Credit Rating Breakdown
- Mutual Funds – Asset Allocation Breakdown
- Mutual Funds – Sector/industry Breakdown
- Mutual Funds - Country Breakdown
- Mutual Funds - Breakdown Information
- BSE and NSE List of Holidays 2010/Sensex Holidays
- Mutual Fund performance calculations
- Net Asset Value (NAV) Calculation
-
Polls
Loading ...
WP Cumulus Flash tag cloud by Roy Tanck requires Flash Player 9 or better.
-
-
FREE E-mail Subscription
Most Viewed posts
- 9 tips for success of share market investors
- BSE NSE list of Holidays 2009
- Bulk Deals and Block Deals
- Let’s understand Stock quotes - BSE Quotes
- NSE Quotes – Record Date/ Book Closure Date/Ex Date/BC Start Date/BC End Date
- Trade Clearing and Settlement in Stock Markets
- What is CRR (Cash Reserve Ratio) ?
- What is IPO?
- What is Recession ?
- What is Repo Rate, Reverse Repo Rate ?
- What is sensex ?
- Harsha commented on What is FPO (Follow on Public Offer)?
- Kavina commented on What is FPO (Follow on Public Offer)?
- Ajay commented on Calculation of Mutual fund Expense Ratio (TER)
- d biswanath commented on Save Income tax with Home loan
- rijo commented on What is FPO (Follow on Public Offer)?
- Satyam commented on NSE Quotes - Order Book
- Rohan commented on NSE Quotes - Order Book
- sachin sharma commented on Call Money Market
-
Categories
-
Archives
Latest Comments
