Why consider investing in structured products?
Here are several reasons to consider structured products, keeping in mind that each structured product is unique and the risk-return is dependent based on the type.
1. Diversify your portfolio through a wide range of underlying securities
Structured products act as a portfolio diversifier by providing exposure and access to derivatives and underlying asset classes that may otherwise not be readily accessible. Structured products can help to broaden your sources of returns without actually owning the underlying asset.
2. Preserve your investment value with built-in downside protection with certain types of structured products
Some types of structured products, like 100% minimum redemption notes, offer the investors a minimum redemption level equal to their nominal amount invested at maturity. This format provides a safety net for invested nominal amount regardless how the underlying asset performs.
3. Potentially enhance your returns by taking on market views
Payoffs are dependent on specific scenarios and you can potentially enhance overall returns if the underlying asset(s) performs in line with your market views.