Investing in Commodities - The Diversification Benefits of a Managed Futures Fund

Investing in Commodities - The Diversification Benefits of a Managed Futures Fund

Many people get involved in the commodity markets because of day trading. The fact is, most day traders will end up being unsuccessful. In fact, it is becoming more and more the norm for people to look at commodities as an investment. Investors and traders are realizing what they would have exposed themselves to had they gone off and tried trading their own account.

When you invest in managed futures, it is quite similar to investing in a mutual fund. You deposit your funds into a managed futures account, and a commodity trading advisor would trade the account on your behalf.

Unlike many hedge funds and similar equity funds, you are provided with monthly statements regarding your account balances, open positions, and trades made, as well as constant access to you account in real time. A managed trading account is the optimum choice for people looking to diversify their portfolios by investing in commodities.

How do you know if investing in commodities is for you?

For portfolio diversification, futures funds are the optimal investment vehicle. In the past 30 years, the amount of money used by people investing in commodities has skyrocketed past $130 Billion, and continues to grow as time goes by.

So what is the reason for the growing popularity of managed futures investments?

For the first time in around 60 years, the stock market has declined in returns for the past 3 years. The stock market has also not achieved its highs since 1999. A poor economy and growing short-term volatility are making equity investments more and more unattractive.

By investing in commodities, you are staying away from the volatile equity markets, especially in this current economic climate. Futures and futures options are generally uncorrelated with equity markets. Professionals across the financial services industry agree that this makes a commodity investment an effective diversification strategy.

Now, by the time you finish reading this you may be thinking of including an investment in managed futures to your current portfolio. Where do you begin looking for different funds?

Two funds come to mind. The first fund is called the Epoch3 program. This program was incepted in July of 2009 and has returned +39.59% in its first 11 months. The second fund is called the Medallion program. This program was incepted last February of 2009 and has returned +47.08% in its first 16 months.

POST COMMENT

Penny Stock Investing - How To Succeed With Penny Stocks Investing In Foreign Exchange Trading Federal Criminal Defense Lawyers - Important Things To Remember Before Hiring a Defense Attorney On Court Settlement: Los Angeles Trial Lawyers To Help Los Angeles Work Accident Lawyer: A Reliable Ally Life as a Criminal Defense Lawyer The Best Ottawa Accident Lawyers are out there. Finding the best Ottawa Ontario Accident Lawyer for you Lawyers For Disability Understanding your requirements A Lawyer Who Says All Cruise Ship Cases Must Be Filed in Miami Florida is Dishonest or Dumb Answering a Foreclosure Summons and Issue Without having Hiring a Lawyer Houston Criminal Lawyers Role In Criminal Cases Is Investing In Certified Gold Coins Safe? Houston Divorce Lawyer – Common Questions about Mediation