| Commodities, one of the most important asset classes, have received a beating since 2014, largely due to global oversupply. This downtrend is seen in all the commodity sectors, including energy, industrial metals, precious metals, and agriculture. Commodity mutual funds have also followed this trend.
Commodities movement historically does not correlate with any other asset class like equities or bonds. They generally have a positive correlation with inflation. Hence, they are considered to be an attractive investment option from a diversification point of view. But investing in commodities involves higher risk compared to equities or bonds. So, exposure to commodities using mutual funds reduces the risk...............................................Full Article: Source
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