Structured products are ‘exotic’ instruments which try to beat the market index by making use of
credit, derivatives and other alternative investments.
Structured products come in many varieties and can be a plain vanilla product which use 2-3 financial
products to achieve the desired goal or something very complicated making use of multiple products
to achieve the desired result.
- info@growthvine.in
- +919354435518
- info@growthvine.in
- +919354435518
Structured Products
How will Growthvine help you
with retirement planning?
Let us show you an example of a plain vanilla product which uses 3 products (credit, options & AIFs) to give you 5x of index returns on the upside while it gives 1x on the downside. This is a hypothetical product loosely based on an actual structured instrument available in the market.
| Scenarios | Index return | Product return | Investment value | Redemption value |
|---|---|---|---|---|
| Rising Market | 100% | 100% | 10,00,000 | 20,00,000 |
| 80% | 80% | 10,00,000 | 18,00,000 | |
| 40% | 50% | 10,00,000 | 15,00,000 | |
| Stable Market | 20% | 50% | 10,00,000 | 15,00,000 |
| 10% | 50% | 10,00,000 | 15,00,000 | |
| 5% | 25% | 10,00,000 | 12,50,000 | |
| 0% | 0% | 10,00,000 | 10,00,000 | |
| Falling Market | -20% | -20% | 10,00,000 | 8,00,000 |
| -40% | -40% | 10,00,000 | 6,00,000 |
What is the minimum investment size?
It’s usually 10 lacs but can vary depending upon the issuer.
Are these risky products?
Yes they are risky as you are in essence taking a bet on the issuer that he would give you the promised returns.
Who should invest?
They are designed for people with high risk appetite and who want products which have low correlation to market movements.
They are sophisticated products and someone who is new to the markets should ideally stay away from such products.
Why do you need retirement planning?
