investment banking : investment in oil fund.

investment banking : investment in oil fund

The United States economy. At the beginning of the recovery. Europe started with debt problems solved. Investors have a positive view of investment in oil and inflation started rising in many countries. As a result, investments in the oil even more interesting, however, with some investors who invest in funds that could be used to find an oil. Less useful than it should be. Financing the purchase price of crude oil, West Texas (West Texas Intermediate - WTI) in New York, $ 70 per barrel. It sold at a price of $ 80 per barrel. Gains were about 10% or more, but when I get back. To obtain less than 10% shows that investing in mutual funds is more difficult to keep track of oil prices on the market. New York City alone. Today's article will demonstrate the opposite. Apart from the price of oil. That affect the return on my investment in the oil fund.
1. To cover the exchange rate. Currently, the fund of oil and asset management companies include eight funds with risk of exchange rate policies different. Oil funds in a fund that invests in overseas oil fund Powershares DB Oil Fund (DBO) The Fund is invested in U.S. dollars. If the U.S. dollar. Have weakened the value of investments decreased in the other hand, if the U.S. dollar. The appreciation of the value of investments will be increased. For example. Should I invest in the oil fund worth 10,000 baht to 30 baht per U.S. dollar exchange rate one year later, I have to sell the fund. Currently, the dollar was weaker at 28 baht per U.S. dollar. If fund's NAV does not change the DBO. There seems to be the loss of this investment, so if the oil fund does not hedge the exchange rate. The fund is likely to change. Even if oil prices do not change it. If investors want to reduce this risk. Investors can invest in funds with oil to avoid risks. The number of exchanges.
2. The reference price for different prices depending on the market today. Derivatives of crude oil, West Texas, West Texas Intermediate (WTI) futures in December 2553 with a month of the reference, is the promise of the month of January 2554, however, the oil fund has a contract with a different example. Fund as of December 2553 BOD are considered derivatives of WTI crude oil to be delivered in June 2554, so if the oil price, WTI market increased by 10% the price of oil has increased the fund in proportion to the difference between them. But in most cases. The movement of derivatives that are moving in different directions in the same way.
3. The price of the underlying funds. The Oil Fund is based on the closing price of the fund of foreign oil. Securities investment funds that are registered in the U.S. market reference price will be divided into two types.
      * Based on prices in the past, if investors buy oil fund on 1 February, the price of the fund is based on the closing price of offshore funds at the time of Thailand, at about 04:00 on 1 February, investors can learn. prices before you buy.
      * Based on the price of the day, if investors buy the fund on 1 February, the price of oil is based on the closing price of the Fund International Fund of Thailand, at about 4:00 on February 2 and investors can not. know that buying.

    If investors buy mutual funds referred to in the past. Do not have a discrepancy in price. It is usually found in high-fee funds that are based on price, so investors can do to resolve the long-term investment. Do not trade frequently. In this way the problem of discrepancies between the prices of the disparities among the least affected