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Mercantile Exchange Nepal Limited MEX EXPRESS
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An ISO 9001:2008 Certified Exchange
Volume: 6 • Issue: 4 • Year: 2014 A.D
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Market Maker
Profit
From the CEO’s Desk Commodity Portfolio
CERTAINTY
L et me congratulate all the
market makers who have I nflation is always a problematic their portfolio of stocks and bonds know $8 trillions of new commodities
chosen MEX for market concern for general investors and in order to get potential return with are produced worldwide which represent
making and thus added value to the commodities are highly correlated calculative risk. Equity and fixed income almost 10% of whole world wealth
Nepalese commodity market. At the with inflation. It simply gives an obvious are considered as conventional mainstays portfolio. This data tells itself that
same time we are equally delighted to share with you that message that it can be used to hedge of any portfolio whose value can be commodity market bears a wide range
we have moved a step further in physical delivery of Silver against inflation as well as to design managed by adding commodities to make of opportunities to mitigate risk through
by adding multiple number of contracts in it. the risk/return performance of portfolio. proper balance in the portfolio. different forms of commodities.
Commodity being a diverse kind of asset
For MEX Nepal, to educate and train the community of category is mostly independent of stocks Commodities being tangible assets like Investor can avail exposure to
Nepalese commodity market has been a primary objective. and bonds which makes commodities to gold, silver, cocoa, coffee, wheat etc commodities through various ways
To achieve this MEX provides free training at MEX draw attention of investors to diversify have tendency to give high returns on like physical commodities, diversified
premises. MEX is also continuously organizing SPACE- in investment with calculative risk as we commodity portfolios, natural resources
various management colleges where the essential topics of equity, managed funds and commodity
commodity derivatives are delivered. Through this effort indices. Now a days, commodity futures
we are trying to nurture the market participants in terms is gaining an imminent edge towards
of commodity knowledge. Till now we have covered most managed portfolios which gives risk
of the business schools inside Kathmandu valley and we adjusted returns through wide range of
are planning to reach graduate and under graduate colleges commodity contracts.
outside the valley in near future.
Another beauty of commodity futures
Apart from education and training, MEX is providing investment is that price of two
marketing help to our business associates to explore their commodities are not highly correlated
business in untouched sectors and thus broaden their with each other. the factors affecting
prospects. We do believe in growing together by cooperating the price of cocoa are different from the
with each other. Therefore we are always happy to welcome factors affecting the price of silver or
our associates to have common interaction and then build crude oil. Therefore, adding commodity
this market towards an integrated dynamism. We hope to to portfolio is definitely going to give
maintain enthusiasm, and dedication with constructive excellent return.
efforts of commitment and performance to our clients.
Commodity portfolio managers or AE
We still have a long journey to travel but our goal is (Account Executives) make a pool of
crystalline clear i.e., to lead this market to an esteemed commodities which is thus used to
height. mitigate risk and have assured return
with time. We can see an example of
- Jitesh Surendran portfolios that have allocated weight to
commodities to form portfolios.
Commodity investor can come up with
same type of portfolios in Nepalese
market too, to take the opportunity of
fast growing commodity market, trader
may design their own portfolios as per
their own requirement so that, loss in
one commodity can be recovered by the
fund value through other contracts or
commodity with the help of long or short
positioning. Lastly, all the businesses are
having risk but traders/managers need to
manage their returns by diversifying the
risk while making the portfolio because
as safe is better than sorry.
Lakshman Pandit
Manager
Business Development
MEX Nepal
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