Commodity mutual fund

Commodity mutual funds are a relatively new and interesting process of investing. The investment process is also very potentially rewarding and thus is attracting a lot of people towards it nowadays. It is actually a very good way to diversify the portfolio of the investment process of the customer. This diversification is beyond the world of bonds and stocks. That is the reason that the commodity mutual funds are considered as a hedge against the inflation problem that is usually faced by the other investment process. This actually means that the prices of the concerned commodities are having a tendency to rise with the rise in the inflation. This whole process actually runs parallel or counter to the stock prices.

Basics:

The commodity mutual funds were originally introduced with the idea of diversifying the whole mutual investment process. The concept of commodity mutual funds actually deals with the investment in certain types of designated real assets and also their future contracts which are the derivatives of the same. The derivatives or the commodities are actually traded with the motto of maximizing the profits from the investments.