Why are we being misled into calling just theme based mutual funds as Commodities Mutual Funds which actually invest directly in commodities or their derivatives. Is is because they are yet to be allowed in India.
These funds tend to be very volatile. Sector Funds tend to be very cyclical. Commodities are expected to do well in any Economic upturn and SBI Magnum Comma fund should be able to take advantage of this uptick, if any. But volatility is expected and this Fund is for a High Risk taker. I feel you are better off investing in Good Diversified Funds like Birla Sunlife Frontline Equity Fund DSPBR Top 100 Fund Fidelity Equity fund HDFC Top 200 Fund Sundaram Select Focus Fund
