Abstract:
In this paper we will describe the benefits of managed futures. Now a days, numerous traders are trading with the managed futures. The money managers help the traders to trade with the managed futures.Managed futures, run by the money managers called Commodity Trading Advisors (CTA), offers several benefits to the qualified investors, that is, who are eligible financially and ready to accept the in built fluctuations of the managed futures. These are listed below.
(1) Managed futures funds offer leverage, which helps the investors to increase their profits. Managed futures have the potential of making profit in any kind of market condition.
(2) The returns offered by the managed futures do not depend upon the stock and bond markets. The investors are given the right of monthly redemption.
(3) Managed futures helps the traders to diversify their portfolios. Moreover, as stated earlier, manager's futures can make profit even at the time of inflation or energy crisis.
(4) Managed futures enables the traders to get the exposure of most of the world's developed economies, like USA, UK, France, Japan etc, through interest rates and currencies, that further can enhance the process of portfolio diversification.
(5) The private managed future funds help the authorized investors to make profit while the public managed futures funds are open for the retail investors.
(6) Managed futures funds offer lower volatility, which makes it a dependable alternative for increasing the "risk adjusted returns" of the traders' diversified portfolio. It minimizes the volatility of such bond portfolios that comprises bond investments and as well as other alternative investments like, real estate, hedge funds etc.
(7) Managed futures funds are run by the professional, and experienced as well, money managers. They facilitate the traders with efficient risk management systems. Therefore, the profitability increases sufficiently.
(8) Managed futures always demonstrates the ability of the traditional investments, like stocks, bonds etc, to perform efficiently and as well as independently.
