The natural resources sector includes companies engaged in extraction of commodities such as coal, metallic ore, sand, gravel, and oil shale. It may also include logging and drilling for oil and gas.

Natural resource investing has long been staple in strategic asset allocation. Natural resources act as store of value, especially during times of rising inflation or currency depreciation. Nevertheless, the industry carries risk such as adverse economic, political, and regulatory developments. Due to these potential pitfalls, investing in natural resources only makes sense as part of a well-balanced portfolio. One way to access this industry is through mutual funds.

We can think of several good reasons why you would want to learn how to invest in natural resources. Let’s discuss the advantages of investing in natural resources. When stocks and/or bonds are looking weak, you want to seek alternative investment options, such as natural resources. You develop a more well-rounded, balanced portfolio by diversifying your assets across different investment strategies. Essentially, you’re hedging your bets by investing in natural resources. Not only are you diversifying your assets, but you’re also diversifying your risk, too. For example, if stocks and bonds in other industries are doing poorly, you may be able to salvage your portfolio with a steady investment in natural resources, which will almost always be in demand. Another great way to mitigate risk while diversifying your assets is by using a broker that doesn’t charge commissions. Public is a free investing app that offers no-commission trading with no account minimums. You can choose from over 5,000 stock options, and they also allow fractional investing. The platform has a comprehensive support system, a booming social forum, and an easy-to-use interface.