Commodity Mutual Funds, The Best Way to Invest Your Money

When you have some money you want to invest, then you could think of investing in commodity mutual funds.
This investment is considered potentially rewarding because it has a hedge towards inflation.
This is to say that the prices of commodities go hand in hand with the inflation.
This is a fact that makes it more favorable to many investors.
What is a commodity? This is something that is generally grown or comes from the earth e.
g.
wheat, rice, crude oil, minerals and metals, livestock etc.
Some of these commodities are traded in the stock market; they include crude oil, wheat just to mention a few.
Most commodities goes hand in hand with the economy of a country and more so the inflation.
The commodities are quickly consumed making the price variable.
When the inflation rises, the prices for the stocks goes down.
This makes borrowing by a company from the banks or lending institutions very expensive because the interest rates goes up.
This then makes the earnings per share go down.
As an investor, to cushion yourself against this (relation between stocks and commodities), you should invest in commodity mutual funds.
You have two options to do this, Oppenheimer Real Asset Fund and Pimco Commodity Real Return Fund.
For the Oppenheimer option, it uses the U.
S government inflation protected bonds while the PIMCO uses non-inflation protected bonds.
Arguably, the Oppenheimer fund gives you a hedge towards inflation.
It is also advisable to do your research on which other options you might have before investing in commodity mutual funds.