In structured finance, a structured product is generally a pre-packaged, hybrid investment strategy that typically involves several financial products. The investor is exposed to a mix of equity indices, fixed income, currencies, commodities and interest rates.
Structured products often feature a high level of ‘principal guarantee’ that offers capital protection of the principal investment if the product is held to maturity.
These types of investments have an option contract built in which changes the securities risk/return profile making it more tailored to the investors comfort zone. This addition makes it possible for investors to invest in an asset class that would otherwise be considered too risky.
Dependent upon your investment strategy and risk profile, investing in a structured product may be a great way to help grow your investments. A well-diversified portfolio will benefit highly from the introduction of structured products. They can add significant value when they fit within the overall strategy of the investor. Additionally, these products can also work to enable access to different assets classes in private client portfolios.
If you would like some more information on our current structured products, please contact Oscar Winson and one of our financial consultants will help you to analyse your objectives and decide whether structured products are right for you.
(This service is not available to clients of Winson Insurance Consultants Limited in Hong Kong)