How Successful Have Commodity Mutual Funds Been?

Investing in commodity mutual funds has become a popular way to access the commodity market without trading commodities directly. A number of different mutual fund providers offer these types of funds. Here are a few things to consider about how successful these types of funds have been.

Commodity Mutual Funds

There have been a number of different commodity mutual funds that have been successful in recent years. However, there have also been several funds that have failed miserably in that time. Therefore, the commodity mutual fund market is very similar to the traditional mutual fund market as far as performance goes. By choosing a good commodity mutual fund, you could expect to receive somewhere between 4 percent and 10 percent return for the year.

With these funds, you should not expect to receive some of the wild returns that the commodity market is known for. When you trade in the commodity market directly, there is a huge potential for return because of the fast price movements. However, when you invest in a commodity mutual fund, the returns will be more leveled out. Mutual funds utilize a very diversified investment strategy by investing in a number of different commodities and using different methods. This means that the price movement will be less drastic in nature.

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