How Do Structured Products Protect Against Market Fluctuations?
Why choose a structured product over standard investments?
This is better explained by using an example, for this instance, let’s use Facebook.
Why invest in a structured product with Facebook as an underlying, over just investing into Facebook shares directly? Why would you choose to receive a max 12.21% return on your Facebook 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 12.21%, this is accompanied by the safety of the investment: Protection Barrier 50% and Coupon Trigger 60%.
Even if Facebook isn’t performing very well, it is kept safe by these low parameters as well as not preventing coupons from getting paid. If you were directly invested in Facebook, 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 protect yourself as much as you can against 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 many benefits to investing in NEBA Financial Solution’s structured products. Most importantly is that we tailor our investments to meet your needs so that you are in full control of your investment. You can make your investments as safe or as adventurous as you’d like.
When tailoring your investment to your personal needs, you have many options to choose from when customising your investment. Some of you may be asking, why structured products over other investments? Let me tell you why!
Structured products offer many features which can be used to benefit your investments:
Growth, there is potential for enhancing yield
Flexibility, Choice of stocks, indices, sectors, currencies and commodities.
Accessible, Daily Tradable
Cost Effective, Clients are invested at 100% & no annual management charges
Protection, of capital in a falling market.
Minimising risks vs maximising returns
We at NEBA, 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 notify our clients if there are any changes in their investments, along with all the information they will need to make decisions if needed.