What are Commodity Funds?

Funds which are usually invested in commodities like gold, oil and livestock are known as commodity funds. They are also invested in commodity futures, options, stocks of companies, gold funds etc.

Many products are covered by the commodity markets like oil, agro products etc. Also, prices of the commodities are affected by the forces of demand and supply along with the general health of the economy. Any kind of instability in the economy gives some window to the investors for them to generate more revenue.