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Chennai has a robust and diverse economy that bases on automobile, software, hardware manufacturing, financial services and the healthcare industries. The region accounts for about 30% of India’s automobile sector and about 35% of the country’s auto components industry, hosting reputed companies such as Hyundai, Ford, BMW, Mitsubishi, TVS group, Ashok Leyland, Nissan-Renault amongst others that have set up their factories in the region. Other key industry players include the Heavy Vehicles Factory that is located at Avadi and manufactures vehicles for the military, and the Integral Coach Factory that has been crucial for the manufacture of rail Coaches and other rolling stock for Indian Railways. The Special Economic Zones situated in the south of the region produce textile goods while the Ambattur-Padi industrial zone produces footwear.

Chennai produces over 50% of India’s leather exports and it’s lined with a number of software parks, the most famous among them being the Tidel Park. Furthermore, the region leads with major electronics manufacturers such as Dell, Nokia, and Samsung having their manufacturing bases in the city. It accounts for about 14% of the Indian software exports, coming only second after Bangalore. In the financial services sector, renowned financial institutions like the World Bank, HSBC, Citi Bank have back office operations in the region.

In the health sector, industry giants include Apollo Hospitals, Sankara Nethralaya and Sri Ramachandra Medical Center that distinguish Chennai as having the best Healthcare facilities in the Country that have brought in quite a considerable number of medical tourists. About 45% of health tourists from abroad and a 30 to 40% of local tourists have been to the region when compared to other regions in the Country. Health industry can be the best sector for investment in India.

As an industrial hub of south India, Chennai’s diversified economic base that largely depends on trade and industry has been at the core of its attractiveness for investment. On the overall, the main industries in its economy include automobile, software services, hardware manufacturing and the financial services sector. Its software and bio-tech sector has attracted big names in the business such as Wipro, Infosys, TCS, HCL, EDS, Accenture, Sun Microsystems and HP. The creative and film industry have done fairly well in Chennai with the Tamil film industry, second only to Mumbai being based in the region. For investment, Chennai offers suitable facilities for the establishment of small scale industry with its very liberal investment policies on setting up industrial units. Its huge population of graduates particularly engineering graduates has been at the forefront of this bubbling industrial and trade services economy.

Managed Futures Trading

Managed futures are investment options and are similar to mutual funds. Managed futures, however, are positioned in government securities and are managed through future contracts or various options on future contracts.

Those who invested in managed futures a few years ago have seen their earnings doubled. Analysts are very optimistic on the future of managed futures. They expect the market to continue to grow in the medium to long-term if stocks under-perform or returns on hedge funds are flat.

Managed Futures Offer Efficient Hedging Mechanism:

Managed futures come across as an attractive investment option because of their potential of reducing portfolio risk. Market studies indicate that when asset classes are combined with alternative investment options, such as, managed futures, risk reduces significantly. This is because such a combination diversifies the portfolio through negative correlation between various asset groups.

Managed futures have inverse correlation with bonds and stocks. They can successfully track the performance of various stocks and provide an efficient hedge mechanism to any potential damage to equities in adversities. This means, managed futures program are outperforms even in the conditions of rising inflation when the stocks and bonds generally under-perform. Thus, fund managers suggest combining managed futures with various other asset groups for better allocation of your investment capital. Managed Futures Trading

Who Manages Your Managed Futures?

Managed futures are managed by professional money mangers popularly known as Commodity Trading Advisors (CTAs). CTAs are the registered representatives of the U.S. Commodity Futures Trading Commission (CFTC). They are given license to do the business only after the FBI thoroughly checks their background; they are bound to produce all the disclosure documents such as independent audits of financial statements on an annual basis before the National Futures Association (NFA) for review.

CTAs take decisions on the positions of the managed futures based on their analysis of the potential profits the futures would yield. They manage their clients’ futures by a proprietary trading system through long or short future contracts in various industries.

Evaluate Your CTAs before Investing With Them:

You must make some important assessments before making the final decision of investing in a particular asset class with a money manger. You can obtain all the necessary information for such assessments in the disclosure documents that will be provided to you by the CTAs. Insist on getting the disclosure document even during the initial stages of your meetings with the CTAs, when you might be just considering an investment option. Such a document will have all the necessary details pertaining to the CTAs trading plan and the fees they charge. Mostly, the CTAs charge 2% management fees and demand 20% as performance incentive. However, such fees may differ largely in some cases. Managed Futures Trading