Structured investment products offer the potential returns of a stock market linked investment, with the added bonus that part or all of your capital can be protected – depending on the product.
Pros and cons of structured investment products:
Structured investment products might be right for you if:
- You have a lump sum that you can afford to keep locked away for up to five years
- You want part or all of your capital protected
- You want a stock market linked investment
However, like all investment products there is a flipside, and structured investment products might not be right for you if:
- You may need instant access to your cash
- You want income from dividends
- You want to make regular investments
Still not sure? Find out more about a range of structured investment products in the table above.
The safety of your original capital depends on the ability of the counterparty (the institution providing the underlying assets, rather than the product provider) to repay your investment at the end of the term. You can assess the strength of a counterparty, and therefore the relative risk to your investment, by comparing their credit rating score, from AAA to D, using a credit rating agency such as Standard & Poor's (www.standardandpoors.com) or Fitch (www.fitchratings.com).