The SmartOptions Portfolio Hedge tool helps you limit potential losses in your stock or mutual fund portfolio during market downturns. It allows you to minimize downside risk and stabilize returns in volatile markets.


To access this feature, hover over the Trade button on SmartOptions and click on Portfolio Hedge. 


This page gives you a brief overview of how to hedge your portfolio.


To hedge your portfolio on SmartOptions, you can  input the portfolio value and Beta in two ways 

  1. Select the portfolio accounts you have already imported/synced on Trendlyne Portfolio. This will auto-fill the portfolio value and beta. If you need help updating your existing portfolio or importing a new portfolio, please check the Portfolio FAQ on Trendlyne. 



  1. You can just input your portfolio value and beta if you don’t have a portfolio account imported or synced in your Trendlyne Portfolio. Portfolio beta is the expected percentage change in your portfolio for a 1% change in the Nifty50 index.


After filling in the portfolio value and the beta, choose a date till which you want to hedge your portfolio.


Now, you will be able to see the portfolio's value, beta, and prediction date. The prediction date refers to the date you want to keep your portfolio hedged.


Using the Nifty value simulator, move the slider to match your expectations of a drop in Nifty50 in the selected period.


Based on your selected Nifty50 value and Prediction date, SmartOptions will suggest three strategies with loss coverage and fund requirements.


On the Portfolio Hedge page, you can choose from three coverage options based on your risk tolerance:

  • Low Loss Coverage, Low Premium: This option offers lower protection with a small impact on your portfolio if Nifty declines. It requires a lower premium.

  • Mid Loss Coverage, Mid Premium: Provides a balanced level of protection with a moderate impact on your portfolio if Nifty declines. It comes with a mid-range premium.

  • High Loss Coverage, High Premium: This option offers the highest level of protection with a smaller impact on your portfolio, even if Nifty declines significantly. It requires a higher premium.


You can compare these strategies by checking your portfolio's expected profit/loss for each.


After you finalise the protection level you want, click “Hedge My Portfolio” to go to the order placement page.



Confirm the trades and place the order by clicking the “Place All Orders” button.