Structured Products and Certificates offer potential benefits such as customized risk/return profiles, exposure to various asset classes, and potential for enhanced returns or capital protection.
The potential for enhanced returns or capital protection in Structured Products and Certificates is achieved through their unique design, which often combines multiple financial instruments. Enhanced returns may result from leveraging, participation rates, or by investing in specific market segments. Capital protection, on the other hand, can be provided through principal protection features or risk-management strategies, ensuring that a portion or the entire initial investment is protected against potential losses.
However, it’s important to note that these features may come with trade-offs, such as lower returns or limited upside potential.When investing, consider factors such as your risk tolerance, investment objectives, product complexity, fees, and the issuer’s creditworthiness.