Description

An agri commodity fund invests in agricultural commodities, such as food grains, livestock, and other farm products. These funds can provide a hedge against inflation and market volatility, while also offering diversification benefits. Types of Agri Commodity Funds: - Basic Funds: Invest in physical commodities, like grains or livestock - Natural Resources Funds: Invest in companies dealing with natural resources, such as agriculture, mining, or forestry - Index Funds: Passively managed funds tracking a specific agricultural commodity index - Future Funds: Invest in futures contracts of agricultural commodities Benefits of Agri Commodity Funds: - Diversification: Reduces portfolio risk by adding a non-correlated asset class - Inflation Protection: Agricultural commodities tend to perform well during periods of high inflation - Potential for Long-term Growth: Agricultural commodities can benefit from increasing global demand