Why Structured Product [SP]?

Structured Product [SP] 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 insurance on the downside.

The layer of derivatives gives it the flexibility needed to blend into a portfolio and enhance its risk to return performance while matching an investor’s objectives.

High-risk, high-reward SPs 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.

There are predominantly two kinds of structured products that we offer:

• Debt Structured Product: The target return on the product is around 15% 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.