Equity & Commodity
Commodities are the best option for all those who are looking forward towards diversifying their portfolios beyond shares, bonds and real estate. Commodities are divided into number of classifications. Corn, coffee, cocoa, frozen orange juice, oil, gas, gold, silver, iron, copper are some of the classifications of commodities.
The best thing about commodities is that its price tends to increase with inflation. It not only hedge against inflation but also against destabilizing events or catastrophes.
A primary reason of investing into commodities is to maximize returns while lowering your risks. Investor‘s interest towards commodities has soared from recent years and the reason behind this can be many.
- Attractive, profitable long-term returns in comparison with stocks and bonds
- Safeguard as well as protection against inflation
- Experience good returns while other professional manages the risk
- High financial leverage
- Diversification of portfolio with high return capacity
- Minimum investment needed as low as Rs 5,000
While investing in equities like stocks and shares, is widely regarded as one of the best ways to create growth within portfolio. Instead of the fact that equities do carry a higher level of risks than bonds and cash, but it is also historically proved that equities are the best way to grow and protect capital from inflation.
- What equity mean to the investor?
- Returns on equity shares outstrips inflation
- Overtakes returns on bank deposits over both medium and long term
- Expose investors with multiple investment plans