A wise choice in todays market. Makes money if the stock markets go up, chance to profit even if the markets go down.
Example of a capital protected product
Shareindex: Multiplier: Timespan: Capital protection: Subscription price:
STOXX 50 1.3 36 months 100% 102%
The investor subscribes to 10 000 euro (plus fee 200 euro). If STOXX 50 index is 3900 when the subscription starts and 5700 after 36 months. The STOXX 50 has thus appreciated 46% and the investor gets 46% with the multiplier 1.3 equals 59.8% in appreciation. I.e. 15 980 euro.
If on the other hand STOXX 50 has depreciated or not changed the investor gets 10 000 euro back.
Who is the typical investor
Capital protected products represents a great advantage to the investor since he can limit his loss and still have an unlimited upside on the underlying investment.
The only possible loss is the sales charge and, if applicable, the additional price paid for a higher multiplier.
Since a structured product has a fixed duration in time the investor has to wait for expiration to cash in the full profit.
