Structured deposit

A retail investment product which offers:

• Guaranteed return of the principal invested; and
• Limited upside participation in a higher risk investment, often an equity index, for example the FTSE 100.

The provider hedges its risk by using part of the investment proceeds to buy call options on the index (or other higher risk investment).

See also

• Call option
• Deposit
• Equity
• FTSE 100
• Index
• Principal
• Retail
• Tracker fund