Commodity prices will likely rise again once the world economy starts
growing and we suggest you to invest some of your money in commodities. It is
must for you to be mastered before you begin trading because futures trading
involve complications like margins and mark-to-market. Investing in commodity
futures is not suited for an investor who is new or inexperienced.
Another option for you is to buy gold directly or through gold exchange
traded funds (ETFs). Investors used to buy gold in a troubled economy because
it is perceived as a safe investment. But gold may give only average returns
whenever economy recovers.
Perhaps the best way to invest in commodities is through a commodity
based mutual fund. Here the investment is in the companies that are related to
commodity business – e.g. metals, oil, gas and more. The prices of commodities
increase the profits of these companies and their share prices will also rise. Thus
it is relatively safe and diversified way where an investor is indirectly
investing in commodities. Following are some advantages of investing through
mutual funds rather than directly through individual commodity based stocks:
1.
Diversification– You are exposed to a wide range of companies
in different commodities.
2.
Relying on Expertise of Funds – This is for the analysis of demand and
supply conditions in several commodity markets to determine which have the
greatest potential upside.
The safest and most convenient way of investing in commodities for the
average investor is “Commodity-based Mutual Funds”.
Founded in 2005, ABans Group has grown from being
a trading house to a dynamic and diversified business group. We provide
expertise in Broking Services, Merchant Banking, Non-Banking Financial
Dealings, Gold Refining and Realty and Infrastructure. In a nut shell AbansGroup is a comprehensive Financial Services and Solution Provider, which aims
to provide an end-to-end financial solution to all its clients.
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