Among the various asset classes such as equity, debt, gold, and real estate, investing in commodities is relatively uncommon among Indian investors. While many seek to diversify their portfolios across different asset classes, commodities are often overlooked. Here, we will discuss Commodity Mutual Funds, their types, and the reasons to consider investing in them.

Before we delve into commodity funds, let's understand what commodities are:

"A commodity is a good traded for another good of similar value. Various commodities are traded daily, such as gold, petroleum products, coffee, and food grains. These commodities are traded based on consumer demand or their commercial value, governed by market demand and prices."