Investors could invest and wait or pay regulars but this is risky with no guarantees of potential upside.
Natural Resources Funds enjoyed a prosperous time on the back on emerging market demand, especially China. The JPM Natural Resources Fund returned 615.98% over a ten year period to the end of December 2009.
However, as economies turned to being domestically focused demand for resources dropped and commodities prices declined. Since 1 January 2010 the JPM Natural Resources Fund has fallen just over 35%.
Often when a sector appears in decline and the fund reflects that decline it is unusual to have an update with the manager. However, there are reasons investors might consider investing in the sector and this fund.
From the 1 January to the 27 July this year the fund was up over 11%, and this pointed towards some optimism in the sector. However, since that point to the end of October the fund is down over 20% (in November up to the 26th the fund was up 5.69%).
The update with the manager was to understand whether now is a time to invest or whether it is a sector to avoid.