Why choose a structured product over standard investments?
This is better explained by using an example, for this instance, let’s use Alphabet.
Why invest in a structured product with Alphabet (GOOGL) as an underlying, over just investing into Alphabet shares directly? Why would you choose to receive a maximum 8.86% p.a. return on your Alphabet investment when you could potentially make more if you invested directly into the stock and its worth went up? Let me tell you why investing in structured products favours some investors!
Although the maximum return you can make off the coupons is 8.86%, this is accompanied by the safety of the investment: Protection Barrier 60% and Coupon Trigger 70%.
Even if Alphabet isn’t performing very well, its risk is reduced by these low parameters, though capital remains at risk as well as not preventing coupons from getting paid. If you were directly invested in Alphabet, when the stock goes down, so does the capital you have invested.
Do you worry that your structured products aren’t able to withstand market fluctuations? Well worry no longer, as you are able to minimise the risk in your investment and reduce your exposure to market fluctuations. This can be through implementing a low protection barrier on your investment, so that the underlyings are less likely to breach it. This can also be done by including the memory feature so that if you miss a coupon due to a sudden fluctuation in the market then there will be opportunities to recover this coupon at future observations.
There are plenty of benefits when investing in NEBA Financial Solutions structured products. We can customise your investments to meet your needs so that you are in full control of your investment. You can position your investments towards lower or higher risk, though capital is always at risk and returns depend on the issuer.
When customising your investment to your personal needs, you have many options to choose from. Some of you may be asking, why structured products over other investments? Let me tell you why!
- Structured Products provide sophisticated solutions that can be adapted to the needs of every investors.
- No matter what the market environment, structured products can be a powerful tool for portfolio management and can enable investors to keep risk under control by providing diversification compared with other more traditional products.
- Last but not least, because they are products that offer access to the markets without requiring investors to have direct holdings in the underlying assets, structured products can lessen the impacts of capital market turbulence.
At NEBA Financial Solutions, we will be with you every step of the way!
We provide product reports on your investments which we will send out frequently to our clients to ensure they are up to date on their investments. We will also notify our clients if there are any changes in their investments, along with all the information they will need to make decisions if needed.
Visit www.nebafinancialsolutions.com to see our list of Structured Products and UCITS Funds
Important information
Capital is at risk. Structured products are complex instruments and are not suitable for all investors. Returns and the return of capital are conditional and depend on both the performance of the underlying and the financial standing of the issuer. This is for information only and does not constitute investment advice or a personal recommendation. Past performance is not a guide to future results.
