CompareStructuredProducts.com - 12/11/2014
Investors like structured products because they offer defined returns, within defined dates, and provide a level of protection against adverse market conditions where other investments may not.
These were the findings of a survey conducted by CompareStructuredProducts.com, which aimed to identify how structured products are perceived among investors. The most common justification as to why people like structured products was that they offer defined returns, with a decisive 81.6% of respondents choosing this as one of the reasons why they like structured products. Pre-determined maturity dates were also a popular reason, with 54.4% of users selecting this feature.
Fundamentally, structured product returns are defined by reference to a defined underlying measurement, such as the FTSE 100 index, and delivered at a defined date or dates. Therefore, their defined nature is incredibly useful in planning for an investor’s portfolio.
The capital protection afforded by these investments, protecting capital in all but the most severe market conditions, is clearly valued by investors. Accordingly, 62.3% of respondents said that market protection barriers were a reason why they like structured products. Defensive structured products also offer the potential for achieving a gain, even if the market falls up to a pre-set level. As such, cautious investors may find solace knowing they are protected when investing in these products.
No ongoing charges were the fifth most popular feature with 48.2% of respondents stating this reason for using structured products. 42.1% stated it was because they are easy to understand and 25.4% said it was because they are bank backed contracts.
The survey findings are below:
1) Have you invested in structured products?
2) Do you have a particular preference for:
3) Which type of products do you invest in?
4) Why do you like structured products? (tick all that apply)
5) Given a choice, do you prefer products linked to:
6) On a scale of 1 (very easy) to 10 (very difficult), how easy are structured products to understand?
Average Rating: 4.68.
7) Compared to your other investments do you find that investing in structured products is:
8) Are there any counterparty banks that you avoid?
9) On a scale of 1 (low) to 10 (high), how would you rate CompareStructuredProducts.com?
Average Rating: 7.68.
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