Understanding Structured Products
Structured products are a type of financial instrument that is based on an underlying asset, product or index. For example, a stock or stock index, bond, currency or commodity.
When you buy a structured product you are basically buying the underlying product. For example, a structured product based on the S&P Index would invest in the S&P Index. So why invest in structured products and not the actual product?
People invest in structured products because they can often offer better risk adjusted returns than the underlying product. For example, on one structured product based on the S&P, if the S&P declines by 35% at the end of investment the investor can still get 100% of his capital back without the loss. However, on the other side, the upside may also be limited, based on conditions of the structured product.
To find out more just contact one of our team and we will show you how you can benefit from investing in structured products