Among different types of asset classes like equity, debt, gold, and real estate, commodity investment is relatively less prevalent among Indian investors. While numerous investors aim to diversify their portfolios across various asset types, commodities often remain unnoticed. Here, we aim to discuss Commodity Mutual Funds, their varieties, and reasons to consider them for investment.

Before diving into commodity funds, let's clarify what commodities are:

"A commodity is a tradable good exchanged for another item of similar value. Numerous commodities such as gold, petroleum products, coffee, and food grains are traded daily. These trades hinge on consumer demand and market-driven commercial values."

Understanding the nature of these goods and their potential role within a diversified investment portfolio can offer valuable insights for investors looking to explore new avenues beyond conventional asset classes.