What if you could invest in the market (funds and shares) and yet still have capital protection to know your money would be safe and an opportunity to share in the growth over the time horizon of your investment? One such investment option is a structured product. A structured product is generally a pre-packaged investment strategy which is linked to the performance of a multitude of different asset classes, providing an alternative to a direct investment in those asset classes or markets.This exposure can be through a single security, a basket of securities, or indices.
Advantages of Investing in Structured Products
- Access to alternative assets and markets – Depending on the underlying asset, structured products give an investor the ability to access investment opportunities from all around the world, through returns linked to the performance of one underlying asset or a pool of assets, without actually investing in the actual asset or pool of assets.
- Clear investment objectives – The objectives of the investment are usually determined up-front and remain fixed for the life of the investment. This is helpful when aiming to take advantage of a particular market event.
- Capital protection – When capital protection is applicable, during times of adverse market performance, the capital protection ensures the investor will receive either most or all of their initial investment amount at maturity.
- Portfolio diversification – Investing in structured products may provide an investor with diversification by providing exposure to assets/asset classes, investment strategies and markets that may not normally be able to access.
For more information about capital protection and a specific opportunity in such an investment today, contact me by email or by phone on my profile.
*Please note the above is not specific financial advice but prepared for information purposes. I recommend you obtain tailored financial advice by consulting with your financial adviser about what is appropriate for you and your own situation.
Article authored by Kennedy Bonyo