25 February 2011 External T.I. 2011-0392061E5 - Commodities and mutual Funds -- summary under Commodities, and commodities futures and derivatives

A mutual fund's gains and losses from transactions in commodities futures are generally considered to be derived from adventures in the nature of trade, and consequently are on income account. Moreover, the election available to speculators in para. 7 of ITR-346R is not available to mutual fund corporations or trusts.