Isi Kandungan
Introduction
Structured products are a popular investment choice for investors looking to diversify their portfolios
and minimize risk. These products offer a unique combination of traditional investment instruments, such as
stocks and bonds, with derivatives to create a tailored investment solution. In this article, we will discuss
the top 5 structured products that can help you build a diversified portfolio.
1. Principal-Protected Notes
Principal-protected notes are structured products that guarantee the return of the initial investment
upon maturity, regardless of market performance. These notes typically offer a potential return based on the
performance of an underlying asset, such as a stock or a basket of stocks. By providing downside protection,
principal-protected notes are an excellent choice for investors looking to preserve capital while still
participating in market gains.
2. Buffered Notes
Buffered notes are structured products that offer a predetermined buffer against losses in the underlying
asset. These products provide investors with a level of downside protection, allowing them to participate in
market gains up to a certain point. Buffered notes are ideal for investors who want to limit their exposure to
market volatility while still benefiting from potential upside.
3. Autocallable Notes
Autocallable notes are structured products that have the potential to generate periodic payments based on
the performance of an underlying asset. These notes have predefined trigger levels, and if the underlying asset
reaches or exceeds these levels, the note will automatically mature and pay out a predetermined amount. Autocallable
notes are suitable for investors who are bullish on the underlying asset and want to generate regular income.
4. Reverse Convertibles
Reverse convertibles are structured products that combine a bond with the sale of a put option on an
underlying asset. If the underlying asset’s price remains above a specified level, investors will receive
periodic coupon payments. However, if the price of the underlying asset falls below the specified level, investors
may be required to take delivery of the asset at a discounted price. Reverse convertibles are designed for
investors who are comfortable with the risk of owning the underlying asset.
5. Basket Products
Basket products are structured products that consist of a portfolio of underlying assets, such as stocks,
bonds, or commodities. These products offer investors diversification across multiple asset classes, reducing
single-security risk. Basket products are an excellent choice for investors seeking exposure to a variety of
asset classes in a single investment.
Conclusion
Structured products can be a valuable addition to a diversified portfolio, offering investors a range of
investment opportunities with varying risk and return profiles. By incorporating structured products into your
investment strategy, you can enhance diversification, reduce risk, and potentially generate higher returns.
Consider consulting with a financial advisor to determine the best structured products for your investment
goals and risk tolerance.
FAQs
Q: Are structured products suitable for all investors?
A: Structured products may not be suitable for all investors, as they often involve complex structures
and may carry higher levels of risk compared to traditional investments. It is important to carefully evaluate
the features and risks of structured products before investing.
Q: How can I purchase structured products?
A: Structured products can be purchased through financial institutions, such as banks, brokerage firms, and
online investment platforms. It is advisable to research different products and consult with a financial advisor
before making an investment decision.
Q: What factors should I consider when selecting structured products?
A: When selecting structured products, consider your investment goals, risk tolerance, and time horizon.
Evaluate the product’s features, including the underlying assets, payoff structure, and potential risks.
Diversification is also important, so consider how the product fits into your overall investment portfolio.