Raw material stocks provide access to a single company involved in the sector. An oil stock could be BP or Shell or a mining stock Rio Tinto or Anglo American, for example.

As a shareholder you will own a share of the company and if the company performs well you should receive income in the form of dividends and see the share price increase, as well as the value of your initial investment .

Instead of trying to figure out which individual commodity companies to support, you may find it easier to let the professionals do the work and buy units or shares in a fund that invests in commodities or primary agricultural products .

By choosing a commodities fund, you can invest in a whole basket of companies or associated businesses involved in the production of commodities.

For exposure to agriculture, you might consider a fund such as Barings Global Agriculture, which holds Kubota Corporation, an agricultural machinery manufacturer, and Nutrien, an agricultural services provider among its top 10 holdings. For exposure to precious metals, Blackrock World Mining Trust holds Rio Tinto and Anglo American in its 10 largest holdings.

• What are the best commodities to trade?

Deciding which type of commodities you want to invest in depends on your personal goals and attitude to risk. It is generally recommended that investors allocate no more than 5-10% of their portfolio to commodities.

If you are unsure which sector is best suited, you could consider a broad commodities fund where the manager will select the commodities he believes will perform best.

Investors who hold UK trackers will already have a level of exposure to oil and mining stocks, which should be taken into account.

• Is commodity trading difficult?

The mechanism of buying and selling in the commodity sector is the same as in any other. But timing trades can be difficult, as prices depend on unpredictable economic cycles, political uncertainties and weather, to name a few.

This is why many people look to funds where a manager can make these difficult decisions.

• How much do I need to start trading commodities?

The amount of money you need to start trading commodities depends on the investment route you take. If you choose to invest in a fund through a stockbroker, the amount will be around £100, and from £25 if you agree to a regular monthly investment. But if you are planning to acquire gold coins, this will be a much larger outlay, around £1,000.