In a context of high volatility on the equity and bond markets and in an uncertain economic environment, private savers are finding it increasingly difficult to make investment decisions. And this is understandable. Operators, creators and managers of heritage products and solutions must today show ingenuity to offer assets that are profitable, relatively liquid and always little or not exposed to too great a risk for the Strukturierte Produkte .
Structured funds or structured products are mechanisms that can now offer good alternatives to optimize the risk or return balance. Provided you accept to take the time to understand the mechanics, which seem complex, but which very often rely on investment reflexes of common sense. For the sake of education and to help you better understand this type of solution.
Clear and legible support in terms of risk and performance:
The first advantage of this type of financial product is de facto transparency, imposed by regulations, which makes it possible to judge its maximum risk as soon as it is subscribed and to compare the expected potential return.
Your advisor must define your risk profile and validate with you your good understanding of the financial mechanics of the selected medium. You will, therefore, be aware of the different possible scenarios and make your investment decision with greater control of uncertainties.
A partial alternative to euro funds:
In a context of a decline in the performance of the euro funds offered on the market, it is logical to transfer part of your savings to a structured product if this, of course, offers significant risk coverage and a premium for this acceptable risk.
Because basically, the mechanism of some structured products is similar to the mode of management of euro funds but with the constraints of reserves of equity capital imposed by the regulator. Managers of funds in euros can therefore no longer seek a return and can only dig from their large reserves to maintain profitability but is this not artificial?
A solution that is both flexible and long-term:
The fear, when one is interested in structured financial products, resides mainly in the commitment that one must make to optimize the mechanism of the chosen solution. And it is true that we must above all consider this asset class over the long term. However, more and more operators are incorporating flexibility into their products to maintain liquidity. The main effect is the annual ratchet effect which allows you, in the event of a favorable scenario, to see your capital automatically unlocked on the anniversary date of your investment with the expected yield ticket.
Finally, keep in mind that the vast majority of these solutions have an obligation to guarantee the liquidity of your capital, but of course at market conditions during a possible buyout so not necessarily to your advantage.
A financial product with controlled volatility:
In the context of the very volatile market that we are currently going through, this type of product can have a role in moderating exposure to excessively large fluctuations. Indeed, the very principle of these solutions is based on very limited market scenarios 2 or 3 allowing you to better understand what can happen to you.