A structured product is generally designed to provide a fixed rate of return on investment dependent on certain pre-defined conditions being met. Such products are more easily tailored to investors who have a specific amount of return in mind or for those who prefer to spread their holdings into diverse sectors. Some benefits of structured products may be:.
- Less exposure to open-market volatility.
- Stability due to their “buy and hold” nature.
- Up to one hundred per cent capital protection.
- A link to more predictable market fundamentals such as interest rates or corporate credits.
- Protection during negative market conditions.