MFM iFunds ETF Commodity Fund sounds good

wombat42_2

Liz_the_Whizz wrote: »

Though that's metals, not grains;)

Go, palladium:rotfl:

Click the other tabs. Energy and Softs are doing well as well, Grains is probably up but we will have to wait until the US market starts (on holiday yesterday).

wombat42_2

Before everyone goes nuts on commodities I think the conventional wisdom from IFAs is not to invest more than 5% of your portfolio in commodities. Although this fund must be the least risky way of getting into commodities.

jon3001

wombat42 wrote: »

Before everyone goes nuts on commodities I think the conventional wisdom from IFAs is not to invest more than 5% of your portfolio in commodities.

Is that commodity futures or resource stocks?

I'm slowly making my way through Roger Gibsons 'Asset Allocation'. He examines porfolios equally weighted (25% each) in commodity futures, property, domestic stocks and foreign stocks.

Not sure what his final weightings are yet. But personally I want to build a portfolio that isn't overly reliant on one asset class such as equities.

wombat42_2

jon3001 wrote: »

Is that commodity futures or resource stocks?

I'm slowly making my way through Roger Gibsons 'Asset Allocation'. He examines porfolios equally weighted (25% each) in commodity futures, property, domestic stocks and foreign stocks.

Not sure what his final weightings are yet. But personally I want to build a portfolio that isn't overly reliant on one asset class such as equities.

5% in commodity futures according to this guy:
http://business.timesonline.co.uk/tol/business/money/article694430.ece

Also i have heard statements from finance commentators not to invest more than 5% in something like JP Morgan Nat res.

But the volatility of the Ifund (plus or minus 10%) seems to be no worse than many equity funds.

Liz_the_Whizz

I see that MFM iFunds ETF Commodity Fund has made it into Citywire's 5 most popular funds.

It's keeping company with those old perennials Invesco Perpetual (High) Income, Merrill Lynch Gold and General and JP Morgan Natural Resources.

Not that popularity is any recommendation, of course, but it shows it is getting noticed and not just on this forum.

purch

It's keeping company with those old perennials Invesco Perpetual (High) Income, Merrill Lynch Gold and General and JP Morgan Natural Resources

Waa Haay.............:eek:

Them Bandwagons just keep on rollin along !!!!

P.S. You'd better all buy yourselves a Haynes manual, cos when the wheels fall off it's handy to know how to fix the situation in a hurry !!!

mr_fishbulb

I once heard comparison of large, popular funds with oil tankers - they both take a very long time to change course.

wombat42_2

mr_fishbulb wrote: »

I once heard comparison of large, popular funds with oil tankers - they both take a very long time to change course.

Wot large popular fiund are you talking about. MFM Commodities is a titchy 12million pound fund.

purch

they both take a very long time to change course.

Unfortunately that only relates to their ability to change where/how they are invested....their ability to change course relating to profit/loss is more like a hobiecat !!

mr_fishbulb

wombat42 wrote: »

Wot large popular fiund are you talking about. MFM Commodities is a titchy 12million pound fund.

The big Invesco Perpetual (High) Income, Merrill Lynch Gold and General and JP Morgan Natural Resources