Investor strategies for commodity future markets in region Jaipur, India

Abstract

Background: Commodities have attracted considerable interest as a financial investment in recent years. India is well placed to acquire such a commodity market. India is among the apex producers of variety of commodities and includes a long history of trading in commodity derivatives. The information is not consistent with the conventional view regarding this. Objective: The purpose of this article was undertaken to study the perception of investors concerning their investment pattern on the basis of income, age, occupation, etc. in commodity market among the people of Jaipur, India. Method: The data was collected by using a questionnaire that consists of closed and open ended questions by personal meeting and tale – calling with people. Result: We observed that mostly young male graduate invested in commodity futures. Mainly businessmen and private sector employees invest in commodities. Most commonly people have invested commodity futures are in the income group of Rs.4-10 lakh. Most of the investors in commodity futures, have invested with the objective of diversifying their portfolio and to reduce risk. In addition to, 70% of the investors feel that commodity futures is a good investment opportunity, and 30% investors feel that commodity futures is not a good investment opportunity. Hence most of the investors feel that a commodity future is a good investment opportunity. Conclusion: We concluded that one can use commodity futures for the hedging purposes rather than for the speculative. This can be emphasized by the fact that there has been an increasing trend in the volume traded in most of the commodities.