| The investment world is full of securities which an | | | | two; the hedge funds and the commodity pools |
| investor may choose from. These securities fall | | | | that are not open to a majority of investors. One |
| under different pools, among them are the mutual | | | | advantage that an investor can draw from these |
| funds. These are pools of investment that attract | | | | securities is that, they tend to beat inflation. This |
| many investors for mutual returns that are then | | | | is because the prices of commodities tend to |
| divided among the investors. An investor needs to | | | | increase with inflation. As such, they are able to |
| be aware of how the funds operate so that he | | | | fetch more from the general market. They are |
| can know when to expect his returns, or the | | | | considered to perform more than stocks and |
| rights he has on his investment. | | | | bonds. |
| Commodity mutual funds refer to a type of | | | | The investment firms target goods which are |
| security that invests in commodity goods that are | | | | always on demand, regardless of the prevailing |
| fast moving and which have the potential to | | | | market conditions. Things like wheat, sugar, oil, |
| attract good returns. In America today, there | | | | coffee, cocoa, energy, livestock and grains will |
| two firms that major in commodity funds. These | | | | always be needed as they are basic needs in the |
| are Oppenheimer Real Estate Fund and the Pimco | | | | lives of many people. Pricing of commodity mutual |
| Commodity real return fund. They were started a | | | | funds is normally done through indexing, where |
| number of years ago and they have continued to | | | | factors such as sales per year are put into |
| thrive in the market today. | | | | consideration. |
| Commodity funds are further categorized into | | | | |