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Are there any mutual funds which invest in commodities?

Dhirendra Kumar talks about the benefits of investing internationally

Are there any mutual fund schemes which invest in commodities or forex?
- Sujatha

No, there are no mutual fund schemes which invest in commodities. But there are some funds which are dollar denominated and invest internationally like in Nadaq 100 or US stocks. In these funds, you put your money in rupee and the money gets invested in the US market, so if rupee depreciates these funds benefit. When you redeem your money, it gets translated into rupee, thereby providing you the required foreign exchange exposure.

In order to gain diversification, my recommendation would be to invest 20-25 percent of your portfolio internationally.

This article was originally published on January 04, 2019.

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