Portfolio hedging is a form of insurance to protect your portfolio from a deep draw-down in the event of a steep market fall. With equities hitting all time highs in this bullish market and demanding sky high valuations there is a sense of caution that we are veering into a bubble territory. When to Hedge Portfolio Hedge your portfolio if you meet the below criteria When you have a reasonable belief that market is going to correct steeply over a specific period of time either