What do you think of Managed Futures Accounts?

Do you think it is a good investment? What would you recommend about them? Any good and solid companies that would accept $20,000-60,000 investment and make it grow? Like 'really' grow. Any information and cautions would be apprecatiated

When you're investing in a managed futures account, you're simply betting on the person running the account. Thats it. Futures correlate with the price of the asset it represents, but the managers will have to actively sought out bets that are undervalued.

In the long run, managed futures will earn you the risk free rate (think 4% or so) with the best performing manager earning a lot (but charging a lot of mgt fee) and the crappy managers out of business.

You really shouldn't dabble in MFAs, they're designed as diversification vehicles for the whole portfolios when stocks, bonds, private equity, hedge funds, and real estate together don't provide the diversification effect sought.

Mostly, I think managed accounts are great. However, if you are just getting into investing, I'd suggest an investment that is not as volatile as futures. I would suggest a "managed futures" account for individuals with very high net worth who would only invest a piece into futures.

There are some managed accounts that will take small investments. Mostly, they are "no-load" mutual fund platforms that allow a manager to oversee the investments.

I do know of some "good solid companies", but I don't believe that you can get to them without an investment advisor.

A "managed futures account" is a great way to insure against bear markets, ie make money when the broader market is headed down. Here a graph of the Dow for the last 80 YEARS.... http://finance.yahoo.com/q/bc?s=%5EDJI&t...

Does that look like a "downward trend" to you?

This type of account is far more suited to someone with a net worth of several million dollars who wants to "hedge" a few hundred thousand than it is to someone with $20-60K to risk. Put $60K into SPY or DIA or IWB (all "ETF-type" stocks) and you will make 10-12% a year over ten years or more, giving you a cumulative 10-year-return of 250% or so . I'm sure there are MFA's out there that will take your money, but in 10 years I'd be VERY surprised if there was any of it left!