Structured Product

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Invest in structured products

We are tied up with leading broking houses to provide the product that suits our investors and provides diversification across all segments. Also, our choice of products is client centric. One of such products is structured products.

What is a structured product?

Structured products are a type of financial instrument. The performance of the structured products is linked to the performance or the value of the underlying assets, products, or indexes. Since there is a huge variety of structured products, there is no simple way to define them or any unique formula to calculate the risks and payoffs associated with them.

The structured products sometimes offer principal protection that means they offer the full or partial return of the principal invested after maturity. On the other hand, few structured products offer debt like the payoff or the leveraged returns.

We will help you understand everything you need to know about the structured products and decide whether you want to invest in them or not.

The structured products involve:

• Market indices

• Individual or baskets of stocks

• Bonds and commodities

• Currencies

• Interest rates

Features:

• Highly customizable to your specific need

• Capable of designing product features to articulate a particular market view

• Have the potential to earn enhanced yields based on market price volatility. They are subject to minimum corpus size.

• They can tailor their returns and provide capital growth, income, or a combination of both

Components of the structured products

In India, structured products as a combination of bonds and derivatives are extremely popular.

• Bonds: This component of the structured product provides capital preservation as the bond issuer commits to return the capital. Therefore, it provides a source of income along with stability.

• Equity: They help you to enhance your investments. They are generally one or a set of stocks and selected ETF and follow a particular index such as Nifty or Sensex.

• Derivatives: The function of the derivatives is to balance the overall risk involved. It involves futures, forward and swap, etc.

Types of the structured products

The two main types of structured products are:

1. Conservative structured products: They come with a capital protection feature, and this type’s upside participation is lower.

1. Aggressive structured products: Such types of structured products do not come with capital protection features, and the upside participation is higher in comparison to the conservative type.

What is structured debt?

This is a type of debt that a lender designs to meet the specific needs of any borrower. This kind of debt package has incentives for the lender, which encourages them to do business with the borrowers. They have the flexibility to switch between fixed and variable interest rates.

This lets a borrower begin with a competitive rate and later shift to a variable rate and get the advantage of any drop in the average interest rate. This will also reduce the amount of debt that the borrower has to return over the mortgage.

Benefits of structured notes:

• They can help you in your potential yield enhancement if your view of the market is correct and the product-issuer you choose is credit-worthy.

• A structured deposit with assured repayment of the full principal amount on maturing is a good alternative to your saving accounts, current accounts, or term deposits.

• Even if the structured products fall below the market price and offer the strike price, they are still profitable as you receive the principal plus the “agreed coupon”.

 Risks associated:

The multiple risks associated with structured products are:

• Since the structured products’ performance is dependent on the underlying assets or Index’s performance, their adverse price volatility can lead to a loss of capital.

• The principal protection is only ensured when the structured products are mature as in the initial stage, the investor has no access to the principal for the tenor.

• The most important risk you need to know is that if your structured products or deposits go into the debt default, you will also risk losing your entire principal amount.

How do we help with this?

Now, we have introduced you to everything about structured products. It’s time for you to know how we can help you invest in them. We are a trusted and sensible distributor at your service to help and assist through chat, mail and call support available 24*7, with our given qualities. We help you with the Structured Products:

Unbiased and transparent thoughts
We help you get your investments and their performance insured with our unbiased and transparent guidance. This will let you invest in good structured products and reduce the risk of making a loss.

Customized portfolio
We know that every customer has different financial goals, so we customize our plans as per their plan and let them invest accordingly.

Tax-efficient investments
We guide you to make investments that not only help you to save your money but also save you from the tedious taxes.

If you are planning to invest in any structured products, you need not worry about the risks associated with them; we will help you make your informed choice and aid you to protect the profits.