Contrarian Investor: Are structured products an alternative to absolute return?

Let us dream up an investment solution for what I call the 'wary mass affluent investor'. They have decided that holding too much cash is increasingly pointless, have been scared senseless by talk of a bond rout, and think yields of 2% to 4% are frankly not worth the extra risk of losing some capital down the line.
The obvious choice is investing in a risky asset such as equities. But these 'wary' investor types are worried about the inherent volatility of shares. They want exposure to some risk but also want some...
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