Futures-Based Hedging Strategy for Equity Portfolio

As a portfolio manager tasked with managing an equity fund, you are considering using futures contracts as a hedge against market downturns. Your investment philosophy aligns with seeking to reduce portfolio volatility while maintaining equity exposure. Describe how you would implement a futures-based strategy to hedge your equity portfolio. Include the rationale for your chosen strategy, the mechanics of implementing it, and an analysis of the potential risks and benefits associated with using futures in this context.