Mutual Fund Query

Below is the jist from ET dated 26th June 2017.

HDFC Equity Opportunities Fund is looking to attract investors, who are scared of entering the equity markets as broad indices are at alltime highs and wish to protect their capital. The fund will limit downside by purchasing at the money three-year long dated Nifty put options with a strike around current levels with the balance 92-95% invested in actively managed stocks.

So, even if the Nifty were to fall to 7500 at the end of three years, the scheme falls only by the cost of the put, thereby providing downside protection.

My query is, how can one take year long dated Nifty Put Options? Is there a such option?


A quick search got me this

That seems like a good idea in current trend though having such put options, but Iā€™m pretty sure with such a long duration the Premium itself would be very high on these options.

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