Q: Are ‘Structured Products’ right for you?
Consider the following questions to help determine whether structured products might be right for you.
- Are you looking for more sophisticated solution to meet specific investment objectives?
- Can you afford to live without a regular income flow from your deposit?
- Are you able to invest your money for a whole term of the product (Normally between two to five years) and have additional money available in case of unforeseen emergencies?
- Are you seeking a capital-protected investment?
- Do you want the potential opportunity to earn a higher return than a conventional fixed deposit?
- Are you looking to obtain a risk and return profile not otherwise available?
- Do you want to leverage your capital?
- Do you want your returns to be linked to a specific market (e.g. Equity, Commodity, Credit)
Prior to making an investment in a Structured Product, we invite you to consult with one of our Financial Advisers. This dedicated professional will review your financial circumstance and give a complete understanding of your financial objective in order to determine the type of Structured Product that would best meet your needs, taking your risk tolerance into consideration. Structured products have many features and like any investment or long term deposit, it is important for you to understand the product you are investing in, it’s risk, as well as the role that structured products could play in meeting your overall objectives.
Features and Benefits of Structured Products
Structured Products are investments that provide you with the potential opportunity to earn a higher return than those offered by conventional fixed deposits. These products have returns that can be linked to the performance of an underlying benchmark such as interest rates, equity markets, commodities, corporate credits or foreign exchange markets.
For example, an S&P 500 equity-linked note has a return linked to the performance of the S&P 500 index. The greater the return on the S&P 500 over the life of the note, the better the return on the S&P equity-linked note.
A common feature and benefit of many structured products is the protection of some or all the capital you invest. A capital protected structured product protects a portion (typically 100%) of your invested capital, and is an ideal was to link an investment or deposit with the performance of global financial markets with little or no capital risk.
Overall, Structured products can be an attractive addition to your portfolio as they give you the flexibility to tailor an investment structured to meet your specific financial objective taking into consideration such factors as your goals, risk tolerance and horizon. You are also able to incorporate non-standard features into these investments, including capital protection, exposure to less accessible markets and/or indices, options and swaps. Some of these additional features may carry extra risk or charges, which you should discuss with your Financial Adviser.
The value of investments may fall as well as rise and an investor may not get the amount originally invested. Potential investors should seek appropriate advice before making any investment decision.