Build your professional network on facebook via our app Go to app
 
<< Prev  3 of 5 in Topic  Next >>
Topic : hedge fnds
  Rate : 
 
Industry : Hedge Funds/VCs/Private EquityFunctional Area : Derivatives(Markets)
Keywords : hedging
Activity:  603 views;  last activity : 07 06 2010 20:18:09 +0000
 
 Refer 389
Share
 
 
  Rate : 
 
 
Is still under developed Vs Is at a stage where it should be
8
 
 
 
 
6
4
4
Support   Support
Top Argument
1
0

I agree with your statement & the main reason for same is lack of awareness among all. Although many companies now doing this practice but not whole. The main benefit of currency hedging is to minimize the risk and loss to the investor. It 'll hedge the exporters position along with the movement in foreign currency. It is a great way of dealing with international investment opportunities. Even with such good risk protection incorporated into the technique, the investor still has the same ability to make substantial profits. Currency hedging gives investors the peace of mind to invest in opportunities that would otherwise have been considered too volatile.

It would also provide protection against commodity price changes, inflation, currency exchange rate prices, economic depressions and more.


By Vipin Bhasin, Private Equity/Hedge Fund/VC-Manager, Indian Investment Co.  05 08 2010 10:03:16 +0000
 
Top Argument
3
0

I think Hedging is in the right stage..... Hedging has increased due to the increased global linkages and volatile exchange rates. Firms need to look at instituting a sound risk management system and also need to formulate their hedging strategy that suits their specific firm characteristics and exposures.

So firms wake up and start utilizing it..... :)


By Esha Johar, Risk Analyst, Irevna  05 08 2010 07:31:42 +0000
0
0

@Mathew Sir : which Means that there is a need in our country for professionals to under go a way (possibly training) to knw abt hedging strategies...

also to note that Appreciation will make exports expensive which will lead to loss but this appreciation can be hedge and companies can deal with this losses along with the development of the Derivatives market...


By Urvish Pankajkumar Subodh, Guest Lecturer (Economics), H.L.College of Commerce- H.L. Institute of Commerce.  | 05 08 2010 16:29:22 +0000
0
0

I believe United Stock exchange of India will make a difference in currency hedging as in there will be less OTC deals and more of Forwards via the exchange. this will also reduce credit risk which was involved in OTC market...

please correct me if I am wrong...


By Urvish Pankajkumar Subodh, Guest Lecturer (Economics), H.L.College of Commerce- H.L. Institute of Commerce.  | 05 08 2010 10:25:03 +0000
1
0
With developing MNC's in India is it that the companies in India are Hedging against currency exposure or still there is a need to develop Currency Hedging. This question was in my mind because i wanted to conduct a research for the same topic. Also to note about a question That introduction of United Stock Exchange of India will do some reforms? The reason for hedging is that has been proved with number of Advantages like Tax Shield(Progressive tax Structure) and Value of the firm increases.
By Urvish Pankajkumar Subodh, Guest Lecturer (Economics), H.L.College of Commerce- H.L. Institute of Commerce.  | 05 07 2010 11:14:01 +0000
0
0

good source to use market for profits and growth.


By puneet , Manager Admin  | 05 19 2010 17:39:02 +0000
0
0

I feel some of the first few made use of this hedging in currencies were Infosys and textile exporters of Tirupur. Those at Thirupur were I think drawn into a complicated hedging strategy followed by some money makng advise from their advisory banks which got bombed and their investments were lost. Infosys I believe broke even and is still doing it. I think many companies are in the process now since the currency is appreciating and we will know what happened in the due course of time.

 


By Mathew Cherian, Research Associate/Analyst, Western Michigan University  | 05 08 2010 16:22:37 +0000
India's Leading Executive Search Firm for CXO, VP, Leadership hiring
India's Leading Executive Search Firm for CXO, VP, Leadership hiring
Viewers also viewed
India Infoline offers life time free demat and trading account just pay Rs.555 at the time of...
 
0 referals 3 comments, 254 views
Easy vs Tough
 
4 referals 5 arguments, 242 views
Developed Nation vs Developing Nation
 
616 referals 21 arguments, 1062 views
more...  
Recent Knowledge (3)
WE HAD A GOOD NUMBER OF INVENTORS WITH GREATER VISION ABOUT THE SOCIETY. INVENTORS HERE NEED NOT...
 
2 referals 2 arguments, 97 views
These days as I switch on the tv or radio or look at a hoarding I do feel that power of ads I...
 
3004 referals 23 arguments, 482 views
MNC's should take in more freshers vs Do not take freshers
 
1 referals 2 arguments, 161 views
more...