Structured deposit: Difference between revisions
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imported>Doug Williamson (Create the page. Source: MoneyFacts http://moneyfacts.co.uk/guides/investments/what-is-a-structured-deposit-product/) |
imported>Doug Williamson (Classify page.) |
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The provider hedges its risk by using part of | The provider hedges its risk by using part of the investment proceeds to buy call options on the index (or other higher risk investment). | ||
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* [[Retail]] | * [[Retail]] | ||
* [[Tracker fund]] | * [[Tracker fund]] | ||
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Latest revision as of 12:02, 2 July 2022
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).
