Commodity Mutual Funds To Consider

Commodity Mutual Funds

There are a number of commodity mutual funds to consider, and these funds can include a diverse range of investments. There are alternative energy mutual funds, those that specialize in gold or other precious metals, funds which invest in agricultural commodities, and several other different types. Fidelity Select Materials, symbol FSDPX, has a four star Morningstar rating and the holdings of the fund include both Dow Chemical and Dupont, as well as other recognized names in the commodity industry. Another of the top commodity mutual funds to consider is PIMCO Commodity Real Return Strategy Fund, symbol PCRAX, which has more than twenty six billion dollars in assets and is heavy in commodities futures.

Precious metals mutual funds can include Dynamic Gold And Precious Metals I, symbol DWGOX. This fund has a portfolio which includes Red Back Mining Inc., Scotiabank Gold Certificate, and AGNICO-EAGLE MINES LTD. as well as other holdings. This is one of the commodity mutual funds which has seen a decent return over the last few years. While there are many attractions with large cap mutual funds, those that include commodities can be more profitable when careful research and fund comparisons are done before any money is invested. Some of these funds will include only companies and commodities in the USA, while others may include both foreign and domestic markets.

There are a number of benefits with commodity mutual funds, but there are also risks and disadvantages as well. These funds may not be right for every investor, and you should carefully evaluate each possible choice before you make any final decision. There are many gold mutual funds which have shown excellent returns, in part due to the greatly increased market price of this commodity, but not all of these funds may offer a solid and quality place for your investment capital over the long term. Make sure to research and look at all factors for each commodity fund being considered, so you can determine the best choice in your circumstances and with your investment goals.