Birla Sun Life Asset Management Company has rolled out a commodity focused fund in the Indian market.

This will be the first commodity-focused fund from Birla Sun Life AMC. The primary investment objective of the scheme is to provide long term capital appreciation by investing in securities of domestic and overseas commodity firms.

Many market experts, in their recommendation suggested that Indian investors, who are presently fighting with inflation and sliding stock values, should also invest in commodities as the asset class will serve as a hedge against inflation. Further, commodities have a low correlation to stocks and will provide a potential upside at current prices.

As per their view, the commodities are anticipated to continue to be driven by a strong fundamental demand from emerging economies.

The company wants to tap investors with its maiden commodity-centric fund. The firm presently has assets under management of Rs 38,184 crore and an investor base of 21 lakh throughout India.