Structured Product

Structured Product

A Structured Financial Products, SFP.. is a hybrid investment instrument, which is used to improve the return on a fixed income or an equity instrument while reducing the risk on the product using a derivative instrument as an insurance on the downside. The layer of derivatives gives it the flexibility needed to blend with a portfolio and enhance its risk to return performance while matching an investor’s objectives. High-risk, high-reward SFPs can form a part of the ‘Equity Allocation’ while its lower risk designs can be plugged as part of the 'Debt Allocation'. This is probably the only instrument which requires minimal human intervention during the course of investment post the designing stage. Hence, it’s a passive strategy which is Mechanical in nature.

Our Structured Product philosophy at Asset9 Wealth Consultancy

At Asset9 we design Structured Financial Products (SFPs) to maximize the probability of achieving the Investment Objective. The tenure of these products is around 4 years with a minimum lock-in of 2 year.

There are predominantly two kinds of structured products.

  • Debt Structured Product: The target return on the product is around 12-14% p.a. even in a flat market with a possibility of positive returns in negative markets
  • Equity Structured Product: The target return on the product is around 18-21% p.a. at 4-8% p.a. NIFTY performance.