T & K Futures and Options Announces Managed Futures Funds Trading

T & K Futures and Options, Inc. now offers clients access to a multitude of federally registered and licensed Commodity Trading Advisors. Managed futures funds are professionally managed futures accounts run by commodity trading advisors. These managed futures funds are for investors searching for greater market diversification into the various currency sectors without having to take the time necessary to actively manage the investments on a day to day basis.

"There are many reasons why managed futures funds may be a good investment for risk tolerant investors." Managed futures trading allows for the opportunity to reduce overall portfolio volatility and risk because they can fluctuate independently of the stock, bond and real estate markets. Managed futures accounts can also deliver the potential for higher overall portfolio returns than a strictly stock and bond portfolio. Professionally managed futures funds have the ability to profit in any economic environment because of the ease of shorting or going long any of the various commodity markets that are being traded. Managed futures trading also gives investors the ability to invest in virtually all of the sectors available in the global marketplace. Visit www.tkfutures.com/managed-futures-trading.html to view some of the various managed commodity funds that are available to choose from.

There is substantial risk of loss involved in managed futures trading. Many managed futures funds will cease trading if the assets devalue by 50 percent but investors should read carefully through a futures fund’s prospectus before investing any risk capital. Past performance is not indicative of future results and only risk capital should be used when investing in any high risk investment. There is substantial risk of loss in managed futures trading and this type of investment may not be suitable for many investors. Visit www.tkfutures.com/risk_disclosure.htm to learn more.

There are many different managed futures funds to choose from. Some focus on only on individual sectors such as grains or energies while others focus on virtually all commodity sectors. This allows investors to tailor fit a fund into their overall portfolio that specifically meets their needs to have a certain missing commodity sector investment, hedge or asset class as part of their investments. Visit www.tkfutures.com/education.htm to learn more about the basics of commodity trading and see the various sectors involved in commodity investing.

Managed futures trading should be considered by investors as a speculative investment and at most should only make up 20% but probably less of the total assets in a portfolio. Managed futures funds are very similar to a managed stock mutual fund but the extreme volatility may be too much for some investors to take. Unlike a stock mutual fund, futures funds often require a minimum investment of $50,000 or more to begin trading.

The author of this release is a 15 year veteran of the commodity markets and the president of T & K Futures and Options, Inc. Managed futures funds to some degree may be appropriate for many investors but should be implemented sparingly based on the investor’s risk tolerance.

By Michael Smith
Published: 9/12/2008
 
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