Policy | MF play in commodities is a welcome step, but are fund houses ready?
Investing in commodities comes with its share of risks. Without an active options market, exposure to the futures market can be a dicey proposition.
May 23, 2019 / 08:00 AM IST
By Shishir Asthana
Retail investors will now get a chance to participate in the commodities market without worrying about risks in the highly-leveraged space.
Market regulator SEBI has now allowed mutual funds (MFs) to participate in all exchange-traded commodities, barring sensitive ones like agri commodities. That means MFs can now invest in commodity derivatives subject to riders. Gold exchange-traded funds (ETFs) have also been allowed to participate in gold derivatives.
SEBI’s decision to allow fund houses to invest in commodity futures is...