Structured Products are financial instruments whose value is derived from an underlying asset or a basket of assets, offering investors a customized exposure to various market conditions and investment strategies. These products are typically created by financial institutions and combine different financial instruments, such as bonds, derivatives, and options, to achieve specific investment objectives. They can be designed to provide a variety of payoffs, including capital protection, enhanced yield, or leveraged exposure to an underlying asset. While offering tailored investment solutions, it’s crucial for investors to understand the complex nature of these products, including the associated risks and fees, as their performance can be highly dependent on the performance of the underlying assets and the specific terms of the product
Benefits of Structure Products.