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Large cap Mutual Funds to Invest In 2k20

For those who want to diversify their portfolios beyond shares, bonds and real estate, commodities present the best option.Commodities actually offer immense potential to become a separate asset class for market-savvy investors, arbitrageurs and speculators and retail investors.

 

WHY COMMODITIES?

 

Commodity Investments are widely considered as a hedge against inflation. This implies that commodities be held for the longer term.

 

Diversified Investment Portfolio

 

An ideal asset allocation plan means having a diversified portfolio. Commodities are an important component of having a diversified investment portfolio. If you are already investing in stocks and bonds, it is suggested that you consider investing in raw materials simultaneously. This way, whenever there is a stock market crash, you are not putting all your eggs in a single basket.

 

Liquidity

 

Unlike investment vehicles like real estate, investments in commodity futures offer high liquidity. It is equally easy to both buy and sell futures and an investor can easily liquidate his position whenever required.

 

Lower margin (5 to 10%) to trade in commodity future contracts which is considerably lower than any other market.

 

Fewer segments to choose from - like bullion, energy, base metals and agri products.

 

Advantage of timings 10 am to 11.55 pm - suitable for investors.

 

Internationally trading commodities give excellent price fluctuation and liquidity provides chances for small and mega investors to take speculate, hedge and investment options.

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Uploaded on September 19, 2020