Commodity Pool

A commodity pool is a collective investment structure—similar in concept to a mutual fund—where multiple investors pool their capital together to trade commodity futures, options, and other derivatives. The pool is managed by a Commodity Pool Operator (CPO) who makes trading decisions on behalf of all participants. Commodity pools allow individual investors to access professional commodity trading strategies and benefit from economies of scale in margin and transaction costs that would be unavailable to them trading independently. In India, commodity-focused Alternative Investment Funds (AIFs) and Portfolio Management Services (PMS) with commodity exposure serve a broadly similar function for eligible investors.