Structured products have gained popularity among investors seeking to diversify their portfolios and manage risk. They offer a unique investment opportunity that combines traditional investments with derivative components, allowing investors to gain exposure to a range of underlying assets while providing downside protection. This has become increasingly important in today’s volatile and uncertain market conditions.
Despite their popularity, structured products have faced criticism for being expensive and complex, with some arguing that the additional fees and commissions associated with these products can erode their returns and make them less attractive to investors. However, proponents of structured products argue that the additional cost is justified by the benefits they offer, including downside protection, enhanced returns, and access to a broader range of assets. Structured products have evolved over the years, with new types and structures being introduced to meet the changing needs of investors. Today, structured products come in a variety of forms, including equity-linked notes, index-linked notes, and commodity-linked notes, to name a few. These products have become an important part of many investors’ portfolios, allowing them to manage risk and diversify their investments.
In this white paper, we will delve into the value for money of structured products and analyze their performance compared to traditional investments. We will also evaluate the fees and commissions associated with these products to help readers make more informed decisions about their investment portfolios. By the end of this white paper, readers will have a better understanding of structured products and be able to make more informed decisions about whether they are a suitable investment for their portfolio.