Commodity Mutual Funds

Commodities are raw materials or agricultural products that are directly obtained from nature like crude oil, metals, fruits and vegetables. So when a pool of money from individual and institutional investors is brought together with the sole intention of purchasing these commodities, a financial professional with the experience of managing fund pools is given the responsibility to invest in these materials but at the same time introduce devices to reduce the risk and volatility of the market. There are different ways to approach investments in commodity funds depending on the risk appetite of the customer. Mostly, experienced investors are recommended to invest in these funds.

List of Commodity funds in India

India offers a lot of Asset Management Companies (AMC) that deal with mutual funds. Over the course of the past 30 years, the mutual fund market has grown to a huge extent and we have about 40% of the entire population of the country that have stepped up to be part of this dynamic investment opportunity. When it comes to commodities, there is a select list of AMCs that provide high performing mutual funds and in order to review the list of commodity funds in India, one needs to understand the type of funds available.

• Index funds – Indexation allows for calculating the correct market price of commodities in the Indian market adjusting for taxes, inflation and demand in the market. This Index is utilized by AMCs to launch Commodities Index funds.

1. True funds – As the name suggests, true commodities funds stay true to their name and invest majorly in commodities themselves with a small component for debt instruments to mitigate the risk.

2. Futures – Assuming any commodity resource offers future agreements, these assets manage them. All in all, they don’t buy the commodity at this time, but they guarantee a specific profit from speculation on those products. These assets are diverse and can bargain in more than one class of commodities.

Given below is the list of commodity funds available in India

1. ICICI Prudential Regular Gold Savings Fund(FOF)

2. Canara Robeco Gold Savings Fund

3. SBI Gold Fund Direct Plan

4. Nippon India Gold Savings Fund

5. Aditya Birla Sun Life Commodities Equities Fund

6. Tata Resources and Energy Fund Growth

7. DSP Natural Resources and New Energy Fund

International Commodity funds have paved the way for the list of commodity funds available in India to become popular. They have been in circulation from much earlier and have found innovative ways of mitigating the risk and offer many different investment options within the commodities area. We will list the International Commodity funds that are currently available in the market below

Featured International Commodity funds

1. Gabelli Gold Fund

2. Invesco Balanced-Risk Commodity Strategy Fund

3. BlackRock Commodity Strategies Fund

4. PIMCO Commodities plus Strategy Fund.

5. Fidelity Commodity Strategy Fund.

6. MFS Commodity Strategy Fund.

7. TCW Enhanced Commodity Strategy Fund.

8. Credit Suisse Commodity Return Strat FD.

Conclusion

Commodity investment is the trading of agreements of things that we utilize ordinarily. It is the exchanging of essential or crude items. A portion of the things exchanged in the commodities market incorporate normal, regular things such as oranges, cocoa, sugar, wheat, corn, grain, soybeans, cotton, pork midsections, different grains, different beans, roughage, other animals, meats, milk, livestock, organic products, vegetables, poultry, and eggs. Energy items that are exchanged on the trade market incorporate oil, petrol, power, and other fuel. The front runners in the energy market blame the increase of crude oil for the disturbance in the commodity fund market.