Agricultural commodities have been hailed as the next big investment opportunity, prompting a raft of new fund launches. But as food prices soar, some observers have pointed the finger at investors for artificially driving prices up. So, will investing in agriculture help or hinder the situation?

It depends on the type of agriculture fund that is chosen. Some funds invest in equities only, and these are likely to be the most beneficial in terms of helping the farming industry and lowering prices in the long term, fund managers say.