Brief About Commodity Market

Commodity trade market has been significantly improved in India after liberalization in 1991. This has given boost to both physical and derivatives commodity market. The well established structured commodity market have boosted the commodity production as well minimize the pricing fluctuation risk of commodities. It has greatly facilitated multi-commodity exchange also.

Commodity trading brings a basket full of diverse avenues for investment, away from the traditional avenues of equity, bonds and real estate. Based on the historical data, adding commodities exposure to your existing portfolio helps you increase the returns while lowering the risk. Commodities have very little or negative correlation with other asset classes.