There are many reasons why managed forex funds may be a good investment for risk tolerant investors.
Port St. Lucie, FL (PRWEB) September 17, 2008
T & K Futures and Options, Inc. now offers clients access to a multitude of federally registered and licensed Commodity Trading Advisors. Managed forex funds are professionally managed forex accounts run by commodity trading advisors. These managed forex 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 daily basis.
"There are many reasons why managed forex funds may be a good investment for risk tolerant investors." Managed forex 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 forex accounts can also deliver the potential for higher overall portfolio returns than a strictly stock and bond portfolio. Professionally managed forex funds have the ability to profit in any economic environment because of the ease of shorting or going long any of the various currency markets that are being traded. Managed forex trading also gives investors the ability to invest in virtually all of the major currencies in the global marketplace. Visit http://www.tkfutures.com/managed-forex-trading.htm to view some of the various managed currency funds that are available to choose from.
There is substantial risk of loss involved in managed forex trading. Many managed forex funds will cease trading if the assets devalue by 50 percent but investors should read carefully through a forex 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 forex trading and this type of investment may not be suitable for many investors. Visit http://www.tkfutures.com/risk_disclosure.htm to learn more.
There are many different managed forex funds to choose from. Some focus on only the major currency crosses while other focus on all available currencies around the globe. This allows investors to tailor fit a fund into their overall portfolio that specifically meets their needs to have a certain missing currency investment, hedge or asset class as part of their investments. Visit http://www.tkfutures.com/education.htm to learn more about the basics of foreign currency trading and see the various sectors involved in foreign currency investing.
Managed forex 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 forex 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, forex 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 currency and commodity markets and the president of T & K Futures and Options, Inc. Managed forex funds to some degree may be appropriate for many investors but should be implemented sparingly based on the investor's risk tolerance.