Hedge the risk of an investment portfolio, by incorporating index derivatives as a strategy
Evaluate the various stocks in the investment portfolio provided, identify stocks that have an unfavourable risk-reward ratio from current levels based on your analysis, and hedge those positions by incorporating index derivatives as a strategy
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About this menternship
The derivatives market is the financial market for derivatives, financial instruments like futures contracts or options, which are derived from other forms of assets and hence they have been named derivatives.

One common application in the derivatives market, is to invest in index derivatives. Now, what does this mean? Index derivatives are financial instruments that derive their value from a market index. In India, this could mean the underlying asset is either based on the NSE NIFTY or the BSE SENSEX.

In this Menternship, you will be hedging the existing position of an investment portfolio, by incorporating a strategy of investing in index derivatives.
To begin with, you will analyse the provided portfolio to identify stocks with an unfavourable risk-reward ratio. Once done, you will then hedge the risk posed by these stocks by incorporating strategies, specifically focusing on index futures or index options, in this case.
Why take up this menternship?
On completing this menternship, you will learn about
  1. Fundamental & technical analysis of stocks
  2. Financial derivatives’ market
  3. Derivative strategy based on market indices

Expected Output
  1. Portfolio analysis reportPdf
  2. Report on Index Derivative StrategyPdf
  3. Video of selfVideo
Hedge the risk of an investment portfolio, by incorporating index derivatives as a strategy
This menternship offers
People with experience in the industry of your choice ready to help you complete the challenges at hand.
Every challenge comes with a certificate on completion from both Mentormind and the company hosting the challenge.
Real life experience
Gain real-time work experience, online. Each challenge comes with resources to help bring the office to where you are.