Investors should understand the pros and cons of the three main types of structured products when deciding which of the wide array available they should choose
Structured products continue to play an important role in today"s investment world. The marketplace now consists of products linked to equity indices, those linked to baskets of single stocks and those employing constant proportion portfolio insurance (CPPI) strategies. Here we consider these three fundamental classes of structured products. Products linked to equity indices have always been the most popular, and it is expected this will continue for the rest of the year. Aside from their obvious recognisability, the reasons for this are that major equity indices such as the FTSE 100, DJ E...
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