ABC Wealth Management is currently overseeing a diversified portfolio for a high-net-worth client. The client is concerned about potential volatility in the equity markets over the upcoming year. To mitigate this risk, the client is considering various derivative instruments, including options and futures contracts.

Using your knowledge of derivatives in risk management, analyze the appropriateness of using both options and futures for mitigating equity market risk. In your response, you should cover the following points:

• The key properties of options and futures contracts.
• The benefits and drawbacks of each derivative in the context of portfolio risk management.
• How a combination of both derivatives may be utilized to enhance risk management strategies.
• A brief discussion on the implications of using leverage in derivatives.

Conclude your answer with a recommendation for the client regarding the use of derivatives in their investment strategy.