Structured Investment

A structured investment is a packaged investment product that combines traditional securities (such as bonds) with non-traditional financial instruments (such as equity options). It is designed to meet specific investment needs that cannot be met by standardised financial instruments.

The strength of a structured investment lies in its flexibility and tailored approach to investing. It can be extensively customised to match your risk/return profile, market outlook, and investment objectives. These objectives may include capital protection, diversification, enhanced returns, regular income, tax and regulatory optimisation, and access to non-traditional asset classes.

Key features of a structured investment

• Potential return: returns are linked to the performance of the underlying asset(s) through a pre-defined payoff structure, which may provide the opportunity for enhanced returns depending on market performance.
• Range of global markets assets: access to a broad range of assets, including equities, indices and interest rates, some of which may not be readily available through conventional investment products. You may not be able to access these assets directly, but you’ll be exposed to their market movements.
• Customised investments: products are available with different payoff structures, underlying assets, investment currencies and tenors to meet investors’ needs across various market conditions.
• Risk and return profile: investors may select products that align with their risk tolerance and investment goals as the structured products offer varying levels of risk and potential returns.

You can choose from two of the structures below:

• Principal protected: a structured investment designed to protect the investor’s initial principal at maturity, subject to the product’s terms and conditions. Principal protected products also provide potential returns linked to the performance of an underlying asset, such as an equity, index, currency, or interest rate.
  
• Non-principal protected: a structured investment in which the initial principal is not protected and may be partially or fully at risk. These products may offer the potential for enhanced returns linked to the performance of an underlying asset, such as an equity, index, currency or interest rate. However, investors may lose some or all of their initial principal.

WARNING: THE RETURNS ON YOUR STRUCTURED PRODUCT INVESTMENT WILL BE AFFECTED BY THE PERFORMANCE OF THE UNDERLYING ASSET/REFERENCE, AND THE RECOVERY OF YOUR PRINCIPAL INVESTMENT MAY BE JEOPARDISED IF YOU MAKE AN EARLY REDEMPTION. THIS STRUCTURED INVESTMENT IS NOT PROTECTED BY PERBADANAN INSURANS DEPOSIT MALAYSIA.