Structured investment products do vary between providers – for example some may offer 100 per cent capital protection, whereas with others, the capital protection will be linked to a stockmarket index, such as the FTSE100.
However, the fundamentals of most structured investment products are the same. For these reasons, structured investment products may be right for you if:
- You want stock market linked returns
- You can afford to keep your cash locked up for between one and five years
- You want to make the most of your tax efficient ISA and SIPP allowances
But, like all investment products, structured products may not be what you are looking for. They may not be for you if:
- You want income from dividends
- You do not want the risk associated with the stock market
- You think you will need instant access to your cash at any time
Find out more about structured investment products and specific offerings in the comparison table above. Click on the links for more information.
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).