Managed Futures through a Commodity Futures Fund
Are you looking to diversify your portfolio? Looking for an alternative or an addition to your current investments, but want a professional to do the trading for you? A commodity futures fund offered through Traders Network may be the answer.
What is a Commodity Futures Fund?
As an alternative investment, professionally managed commodity futures fund is often considered a subset of hedge funds. However, unlike many hedge funds, they concentrate in futures markets–not trading in cash equities; this can offer you an added layer of diversification to your traditional equity portfolio. Both hedge funds and commodity futures funds can take long and short positions in a variety of global markets. But, if you are looking for specific exposure to the futures markets, with the added security of primarily exchange-traded markets, managed futures may be the right choice for you. You can even open an account through an IRA.
A commodity futures fund, run by a professional money manager known as a Commodity Trading Advisor (CTA), offers exposure to a wide array of financial and physical commodity futures markets traded around the world.
Reduce Portfolio Volatility with Managed Commodity Futures
Many investors choose to invest through a professionally managed futures fund to reduce volatility in their overall investment portfolio. There’s a relatively low correlation between the performance of managed futures and stock prices or interest rates. Through a managed futures fund investment, you’ll have access to futures markets around the globe. Commodity trading advisors invest in financial futures, including stock indexes such as the Standard & Poor’s 500 or the Nikkei 225, interest rate vehicles such as U.S. Treasury notes or the German bund, or currencies such as the euro or yen. Traditional commodity markets traded include crude oil, gold, wheat or soybeans.
Unlike other asset classes, where profits depend solely on price appreciation, trading commodity futures offers opportunities in both rising and falling markets. However, investors also need to be aware that managed futures involve risk of loss and may not be suitable for all investors.
When you choose managed futures as an investment, you delegate responsibility for your decision to a professional money manager with proven performance that can be reviewed, to ensure that it fits your investment goals. There are literally hundreds of CTAs offering hundreds of managed futures programs. Most are diversified, but some specialize in particular industry sectors, such as financial or agricultural markets. Traders Network offers what we feel is one of the best overall diversified managed futures programs in the industry. Speak with one of our investment professionals to get a in depth analysis of how this type of investment will help you meet your investment goals.
Managed futures can provide a viable alternative investment vehicle for small or large investors looking to diversify their portfolios that will allow them to spread their risk. So if you are a qualified investor searching for potential ways to enhance risk-adjusted returns with a diversified investment strategy, you may want to consider adding managed futures investments to your total long-term financial plan.