We all know markets are always volatile. Often they move backward or remain in a range for quite good period but in the long run they go up and generate decent returns. At times we do feel strongly about markets going down. But if we are caught on the wrong foot, then we loose opportunity to earn better returns because we move our investments from equity to debt for such assessments that go wrong. On the other hand, if one keep investments in equity and markets fall then they experience fall in values though temporary but for sure disturbs our peace of mind. In case an investor has strong feeling about market going down but do not want to make any change in equity portfolio, the investor can save his or her portfolio from going down through hedging by using future and options. For mutual fund investments however strong view the fund manager or the team may have about markets going down but is not allowed by SEBI to take short positions and hedge the portfolio. Cat III Alternative I...
Ajay Sharma, Founder of Investmentmitra is an Air Force Veteran and an Alumnus of IIM Calcutta. He is also Former President of All Mutual Fund Distributors Welfare Assocaition and a Member on Board of Management of The Sonepat Urban Cooperative Bank Ltd. The Blog Here we share our views on economy, markets, politics, events etc. and how they impact our investments. We also share occasionally interesting investment products that we believe are worth considering for investments by the reader.