Investing in structured products

 Structured products investing

Structured products - less knowledgeable people will say little to the name. Fashion for ever new financial products makes it worthwhile to know what structured products are and what possibilities they offer.

In the UK alone, more than 500 different types of structured products were available in 2005, and the value of assets accumulated in them is close to GBP 10 billion or EUR 14.5 billion.

Structured products are the top shelf of finance

That is how this form of capital investment can be said. Structured products belong to the so-called "structured products" type. alternative investments. Simply put, the capital market has created a demand for a product that makes it possible to make money from both growth and declines.

Equities, bonds, deposits and funds are insufficient for investors with a wealth of capital. In addition, each market moves in certain cycles. The boom on the stock exchange does not last for years. And when prices of listed companies fall, shares and investment funds lose their attractiveness.

Thus, a mixture of the possibilities offered by individual products has been created and combined into one. A structured product may be e. g. a deposit whose interest rate does not depend solely on interest rates, but depends on e. g. share price, oil or gold price.

Safe investment in structured products

More and more often you can hear about so-called guaranteed deposits. By making such a deposit, the customer receives a guarantee of a refund of the amount paid, plus the possibility of making a profit from the investment, e. g. a guarantee of return on the amount paid. emissions in the oil market. If the investment in oil proves to be advantageous, the customer collects the appropriate amount and if it brings a loss, he gets the equivalent of the contribution.

Undoubtedly, the future of the financial products market is one of the flexible products, allowing us to find a balance between the possibilities of achieving satisfactory profits and protecting capital at the same time.

Structured products are ideal for this purpose. This is appreciated by customers who can earn money regardless of the prevailing market conditions. When the stock exchange quotes bequests, they have a choice of currency and raw material markets.

Once upon a time, structured products were available only to the wealthiest Private Banking customers. As time passed, they entered the offer for a moderately wealthy client. Currently, several thousand dollars are enough to invest in structured products.