2. Commodities speculation

Commodities trading is the buying and selling of materials for future delivery. Unless you have the absolute confidence that everything you own belongs to God and can go to bed at night with the understanding that everything you have worked for most of your life can be lost while you sleep and the thought of that possibility is irrelevant to you with regard to your life and lifestyle, don’t trade commodities.

3. Sectoral or Thematic Funds

Investing in Thematic or Sectoral fund is very risky. Sector fund invest in particular sector or theme. For instance IT Fund and banking fund. Performances of these funds are purely based on the sector.

The fund manager will be forced to invest into a particular sector even if he is aware that the sector might not do well for few more years. Always invest in equity diversified fund. Let the fund manager do the rest.