Market volatility can feel like an unpredictable storm, but with the right strategies, you can weather it without fear. One of the most effective ways to safeguard your investments during turbulent times is through hedging.
What is hedging?
In simple terms, hedging is like taking out an insurance policy on your investments. It involves strategically using financial instruments like options to offset potential losses in your portfolio. The goal is to reduce the risk of big losses, while still maintaining exposure to potential gains.
Popular hedging strategies include:
- Protective Puts: Buying a put option on a stock you own allows you to sell it at a predetermined price if the market drops, limiting your downside risk.
- Collars: A strategy where you simultaneously buy a protective put and sell a covered call to create a protective range around your stock’s price.
At NM India Investment Advisers, we help you implement these and other hedging strategies, ensuring your portfolio remains resilient even in the most volatile markets. Stay protected while keeping your financial goals on track with our expert guidance.
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