A study on investors perception Towards commodity market with special reference to salem city

Abstract

A commodity market facilitates trading in various commodities. It may be a spot or a derivatives market. In a spot market, commodities are bought and sold for immediate delivery, where as in derivatives market, various financial instruments based on commodities are traded. These financial instruments such as futures are traded in exchanges. newline newlineCommodity markets have diverse avenues for investment, away from traditional avenues of equity, bonds and real estates. A better exposure to commodity markets and awareness of their services helps to increase the investor s returns while lowering their risks. Not much people know that commodities marketing has something for everyone with ample opportunities to trade hedge and speculate, commodities have long been the asset class to invest in. Hence, the perception about such commodities market among the people has to be studied and analyzed to further improve the commodities trading in India. newline newlineThere is a general fear among the people that most investors lose money in commodities marketing. This happens only when market participants do not trade with discipline and fall victim to greed and fear. One more reason for the loss is that they lack proper awareness about the commodities market. This can be overcome by studying and analyzing about how far people are aware of commodities market. newline