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Structured Investment Products - by Vipin Arora * Page - 3
Investment in a SIP Some structured investments can offer higher returns than many other investments, but to do so involves an element of risk. Often the higher return is in the form of a regular income, which is why they are popular with certain investors as they can offer significantly higher returns than are available from high-interest deposit accounts. However, one must remember that whether one gets back the original amount one invested will depend on the performance of a basket of shares or an index. Other types of structured products make sure one’s original investment is secure. This means that the income or growth that can be paid will be reduced. Again, this will depend on the performance of the benchmark used, such as stock market performance. Whatever the structure of the product, an individual can work out the possible returns or potential losses before he/she makes the investment. * Contributed by - |
