Stock markets rise and fall – that’s a given. So, consider an investment that would let you take advantage of upturns but still offer to repay your capital at the end of a fixed term. This is exactly what some structured products are designed to do.
The returns and capital repayment of a structured product are based on the performance of a particular market, for example the UK stock market, emerging markets or commodity prices as measured by an appropriate index. Structured products are issued by leading financial institutions. It is important to be aware that if these institutions fail to meet their obligations, you will get back less than is due to you, or nothing at all.
Some structured products offer full repayment of your capital at maturity, plus the promised return based on the performance of the relevant index. Other types of structured products combine potentially higher returns with a higher degree of risk and you can lose money should certain specific events occur. Benefits are only paid at maturity. You can sell a structured product before maturity but the price will be the current market value and that may be less than the price you invested at, irrespective of the performance of the relevant market.
The value of investments can rise as well as fall, and you may get back less than the amount you invested. If you are in any doubt about investing in structured products, you should consult your financial adviser.
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