The concept of hedging has always been a controversial one. There are some investors that would not enter the market without it. Then there are others that just do not see the point of hedging and that the whole exercise is just too expensive.
Before being able to develop an opinion however, one must know the options. That is, one must understand what hedging actually is. There are a greater range of hedging strategies out there than just selling futures or buying a put. Some strategies will have an outright cost, like buying a put. Other strategies may cost less but instead somehow limit your overall return.
You can see this in some capital guaranteed products in the market. Some capital guaranteed products will put a cap on your potential returns. That in essence can be considered the cost. Now as long as you are happy with this cap, then this type of product may suit you.
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