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What if you had coconuts, pepper, soya etc as investment options? Never heard before? Well times-are a changing and soon apart from the usual investments you make be it in a range of diversified mutual funds, debts, bonds or money market instruments, picking from a range of investment options in commodities, real estate, gold etc may be before you soon.
Commodities futures as an investment option is expected to open up several avenues for the small investor. And investing in coconuts, soyabean and the like may not leave people with dropped jaws and raised eyebrows anymore here. Investment funds such copper fund, real estate fund, bullion fund etc are common in the USA. There are a number of commodity funds there be it copper fund, gold fund and the like.
But sadly in India these options remain to be explored. And there is no reason why it should not be introduced here say experts. While a few are skeptical about the success of such funds stating that designing the portfolio on commodities products are a different ball game altogether. And fund houses with lack of knowledge about commodities may not be able to do the right job. But again experts state that a commodities market consultant can be roped in.
To enable the introduction of commodities trading here the Association of Mutual Funds of India (AMFI) has already set up committees to look into the regulatory changes to be addressed as also the legal aspects. The AMFI chief believes that these new options will offer the necessary risk diversification as also higher returns. Plans are on the anvil to introduce schemes investing in commodity futures, with several new commodities exchanges like National Commodities and Derivatives Exchange (NCDEX) and National Multi Commodities Exchange (MCX).
Presently the Securities Act does not allow such a diversion but the day is not far feel experts when mutual funds will be investing in commodities, real estate, gold, copper and the like.