Why is Commodity Trading Becoming Increasingly Popular Amongst Indian Investors?
Till some time ago, Indian investors mostly chose to stay away from investing in security and exchange as stocks, bonds and as well as commodities were considered risky. But times have changed, now investments in mutual funds, stocks and commodities are climbing the charts of popularity rapidly.
One of the major reasons behind the rise in popularity of these uncommon investment options, especially commodity trading is the ease of trading. Broking firms are mostly focussing on simplifying the trading path the investor follows. Turnaround time has been reduced to merely an hour from it being two-three months a while ago. The investors do not even have to step out of their home which is an added advantage.
Moreover, most investors are using commodities as a hedge against market inflation. Out of all the trading instruments, commodities tend to perform well even amidst a market upheaval.
Young investors are no longer drawn to the previously popular conventional trading instruments like bank deposits or real estate. They look for optimal ROI according to seasonal demands. Apart from these, the involvement of banking options, protection of the interest of stakeholders by e-NWRs and rule-based investment strategies are other reasons behind commodity trading gaining traction of investors in large numbers.
With the increasing interest of investors in commodity trading, it looks like this trend of making optimal use of unusual trading instruments is here to stay.