- A fixed income instruments
- An Underlying Instruments or equity instrument
- A Hedging Instruments of Underlying
Types of Structured Products
Categorized mainly in 3 Types
- Full Capital Protection Product
- Partial Capital Protection Product
- Non Capital Protection Product
Advantage
- Principal protection (depending on the type of structured product)
- Tax-efficient access to fully taxable investments
- Enhanced returns within an investment (depending on the type of structured product)
- Reduced volatility or risk within an investment (depending on the type of structured product)
- Ability to earn a positive return in low-yield or flat equity market environments
- Ability to minimize issuer risk by using collateral secured instruments (COSIs) backed with collateral in the form of securities or cash deposits