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 (Updated) |
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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). | ||
Revision as of 11:38, 25 August 2016
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).
