Acknowledgement Benefits of Risk Management on Investments and Portfolio Assets The report on the above topic/topic is presented in partial fulfillment of the MBA program requirements of AICISM AMITY, Noida. The report has been prepared based on the information/data collected through the primary survey and published information available from various sources. The data and statistical ingredients, including the contents of the report, are drafted/created by me or copied from specific authorized or recognized sources, the reference of which is mentioned at the bottom of the respective page/pages of the report. The conclusions and recommendations made in this report are, to the best of my knowledge and judgment, based on inferences drawn and observations made by me from primary or secondary source data collected, compiled and analyzed by me, during the course of the project. Date: Gaurav Patidar (A0633512011) CERTIFICATE This is to certify that the thesis report of “Benefits of Risk Management on Investment and Portfolio Assets” is an authentic work submitted by Gaurav Patidar (A0633512011) under my guidance and support. This report refers to specialization in the marketing stream. I also declare that the information presented in the project is true and original, to the best of my knowledge. Location: Noida Dr. Renita Dubey Date: Executive Summary This report addresses the question of whether introduction of derivatives affect the underlying security (price and volatility). The systematic and unsystematic risk of single security indicates that the spot market has changed after the introduction of derivatives trading and that t...... middle of paper ......rses after a long debate in the 2001 In the developed economy the instrument was introduced long before our economy was liberalized. Derivative securities have penetrated the Indian market and investors use these securities for different purposes, such as risk management, profit enhancement, speculation and arbitrage. use of derivativesPrices in an organized derivatives market reflect the perception of market participants regarding the future and bring the prices of the underlying to the perceived future level. Derivative prices converge with the prices of the underlying upon expiration of the derivative contract. Therefore derivatives help to discover future prices as well as current prices. The derivatives market helps transfer risks from those who have them but may not appreciate them to those who do..