Section I: Income Tax and Your Investments

• Ques: Investment in commodities offer high returns and diversification of portfolio
• Ans: Key points:
  • Commodity means any bulk good traded on an exchange.
  • Presently one can invest in following commodities gold, crude oil, copper, chana etc. There are around 100 products listed for investment/trade.
  • It is controlled by the central govt. just like SEBI. It is like investment in equities but help in diversification of portfolio of your investment.
  • You can start investing/trade through demat account with brokers such as www.icicidirect.com, www.religarecommodities.com with investment of approx Rs. 10000
  • The risk in investing is higher than equities as the information of demand/supply is not as good as compare to equities.
  • Start slowly and grow your money as returns are exciting on your investment. For further information log onto www.ncdex.com, www.mcxindia.com.