Preserving value through capital protection

STRUCTURED PRODUCTS

Investors who want to preserve their investments should look to capital protected structured products as these are less risky than equities but offer much better returns than cash

In recent years, equity markets have recovered strongly and have delivered handsome returns but remain volatile. However, shocks from the recent bear market, which lasted well over three years, have shaken investors' confidence, and they remain concerned about capital losses. Preserving the value of investments is, therefore, a priority of the first order. In an unstable environment, a simple approach would be to maintain a large portion of the assets in cash. However, there are two problems with this strategy. Firstly, interest rates on cash deposits are low and after adjustment for tax a...