/How to hedge your stock portfolio against a downturn and which sectors to invest in 2021
InvestmentDecember 28, 2020

How to hedge your stock portfolio against a downturn and which sectors to invest in 2021

Apart from booking partial profits, you can also hedge your equity portfolio with the help of put options.

Synopsis

Apart from booking partial profits, you can also hedge your equity portfolio with the help of put options. A put option benefits the investor if the market (or individual stock) goes down. One can buy short duration put options that will expire in 1-3 months or go with long-duration put options that will expire after a year.

ET Wealth reached out to experts to know how investors can safeguard their finances from the volatility that raged in 2020 and the uncertainty that looms in the horizon. This week’s cover story explains 11 steps that one should take now to improve one’s finances in the New Year.Here are the smart money moves to gain from the stock market.Book partial profits on stocks and fundsThey may move in different directions in the short term, but stock

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ET Bureau

11 mins read, Last Updated:

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