Published Paper Details:

Hedging is the strategy used by investors to reduce the risk of a particular investment and to increase the returns of the investment. Hedging is done to minimize the effects of adverse price variations of stock market. Hedging can be done using financial instruments like shares, exchange traded funds, forward contracts. This paper examines the effect of hedging in stock market. This paper explains demystify the common hedging strategies used by investors and its relative effect on stock market. This paper elucidates the advantages and disadvantages of hedging in stock market. This paper also explicates about different hedging strategy and its impact in stock market. Hedging is basically done by the investor to protect their respective portfolios from the unpredictable market conditions. To protect their portfolio investors are required to pay money called premium. Depending upon the type of investment different hedging strategies are used by the investors. KEYWORDS: Hedging, portfolio, minimize risk, premium, maximize returns.