How Do You Start Investing In Agricultural Commodities?
Keeping a small percentage of your portfolio invested in commodities is an excellent way to both diversify your investments and improve your returns. Follow these simple steps to start investing in agricultural commodities. To begin, decide on the percentage of your investment portfolio that you would like to allocate towards agricultural commodities. A range of five to ten percent in all commodities seems like a prudent allocation of your capital. In other words, if your portfolio is worth one hundred thousand ($100,000) dollars, then an allocation of five thousand ($5,000) to ten thousand ($10,000) dollars might be appropriate for you. Next, determine if you want to invest in a commodity index, available in the form of a fund or etf, that includes coffee, corn, wheat, soybeans, sugar, rice, cotton, cattle and hogs, or if you want to try your hand at individual futures trading. Finally, pick your investment vehicle. Commodity future options are available for trade on many different ag