What is Commodity Funds

Definition: Commodity funds are funds which basically invest in commodities, such as gold, oil or livestock. They also invest in commodity futures and options. Some commodity funds invest in the stocks of companies, like gold funds which invest in the stocks of gold mining companies.

Description: As the name suggests, a commodity market covers various kinds of products such as gold, oil and various agri products, among others. Commodity prices are influenced by the performance of economy or the forces of demand and supply. Instability in commodity prices can give investors leverage which helps them generate revenue.

Also See: Futures, Mutual Fund, Hybrid Fund, Gold Fund, Arbitrage Fund, Debt Fund, Stock, Bond

Related Defintions

  • Arbitrage Fund

    : Arbitrage fund is a type of mutual fund that leverages the price differential in the cash and deri

  • Benchmark

    : A benchmark is an unmanaged group of securities which are considered as a 'benchmark' to measure a

  • Benchmark Government Bond

    : Benchmark government bond is a debt security issued by the Central government with a residual matu

  • Categories

    msid=4006719,type=11 ##) Definition: Categories in the context to financial markets are asset clas

  • Closed-ended Funds

    : The unit capital of closed-ended funds is fixed and they sell a specific number of units. Unlike i

  • Commodity Funds

    : Commodity funds are funds which basically invest in commodities, such as gold, oil or livestock. T

  • Contingent Deferred Sales Charge

    : It is the exit fee charged by a no load mutual fund. The CDSC is a reducing charge. It reduces ann

  • Credit Rating

    : Credit rating is an analysis of the credit risks associated with a financial instrument or a finan

  • Custodian

    : A custodian is responsible for keeping as well as safeguarding the investments and securities on b

  • Debt Funds

    : Debt funds are mutual funds that invest in fixed income securities like bonds and treasury bills.

Related News

ADVERTISEMENT