An analysis on perspectives of investors on commodity trading and risk management in India

Abstract

Indian commodity market has seen tremendous growth over the past few decades. Investment in capital market attracts higher risk as the return is higher. It becomes very important to understand the perspectives of theinvestors in market in order to minimize the risk faced. This will help them accomplish their goal of achieving higher return by minimizing the risk. The aim of the paper is to provide the risk management perspectives of commodity investors in India. The study concentrates on the aspects like the market and exchange selected for trading, types of risks faced, method of analysis, technique used for managing risk, percentage of the investment, advantages and disadvantages of trading in commodity trading etc. The results can be used by the commodity investors in taking wiser decisions in commodity derivatives investment.Also, hedge their risk accordingly.