The commodities markets are one of the oldest prevailing markets in the human history.
Commodities Derivative market has emerged as a new avenue for investors to create wealth. Today, Commodities have evolved as the next best option after stocks and bonds for diversifying the portfolio. Based on the fundamentals of demand and supply, Commodities form a separate asset class offering investors, arbitrageurs and speculators innumerous opportunities to generate income by trading on such asset class.
Tradejini Commodities Limited is a subsidiary of Tradejini Financial services Pvt. Ltd. It was set up to spearhead the Exchange-based Commodity Trading. As a member of MCX, we provide the platform to trade in commodities and offers single screen trading terminal for MCX, BSE & NSE.
What does Commodities offer to your investment portfolio?
Diversification of risk
Commodity returns have historically had low or negative correlations with the returns of other major asset classes, and may be used to diversify a portfolio. Other factors remaining same, diversified portfolios with low aggregate correlation tend to have lower volatility of returns. Therefore, diversification may improve risk-adjusted returns.
Commodities may react differently from stocks and bonds in various economic and geo-political situations, enhancing risk-adjusted returns and reducing the overall volatility of a portfolio.
Inflation adjusted yield
The Changing macroeconomic factors (like inflation) tend to impact commodities differently when compared to other financial products. Prices of goods and services rise in tandem with input prices, while prices of stocks and bonds tend to decline because of rising commodity input prices which put pressure on the economy and lower the value of future cash flows.
Hedge against event risk
In the case of some geo-political events such as wars and supply disruptions due to natural disasters like hurricanes, droughts and floods tend to impact the supply and increase the demand for certain commodities thereby giving some latent but visible opportunity. Hence by including commodities in a portfolio, it may act as a potential hedge against certain types of event risks.
Tradejini offers services to trade in all commodities through the MCX platform with an integrated back-office system to view the details and access trade-related information across all segments through a single log-in.
Tradejini offers the following