Indian markets have recently thrown open a new avenue for retail investors and traders to participate: commodity derivatives. For those who want to diversify their portfolios beyond shares, bonds and real estate, commodities are the best option.
Commodities are raw products that can be bought, sold, and traded. It can be an agricultural commodity like wheat, soybeans, rapeseed, cotton, etc or precious metals like gold, silver and so on. Commodities are traded on Multi Commodity Exchange (MCX) and National Commodity Derivative Exchange (NCDEX).
Despite the fact that the prices of commodities are unpredictable, they are much preferred by the investors who want to earn high returns from the price fluctuations. Of course there are also commodities like Gold, which is a reliable and safe investment. Hence, Commodities are increasingly becoming one of the most popular areas of investment for diversifying portfolios and improving overall rate of returns. If you are looking towards making a balanced portfolio, commodities could be your vehicle to earn desired returns.
Why Invest in Commodity?
• Earns high returns
• Diversifies portfolio
• Commodities like gold is safe for long term investment
• Improves overall investment returns