Pros and cons of structured products

Rather than turning to a structured product for rich pickings, investors may find better returns from a bank deposit account

For investors who over the past five years have preferred structured products to bank accounts, staying with a deposit account may have proved a better bet. Research by Future Value Consultants (FVC) suggests returns from a deposit account would have beaten seven out of eight structured products simulated by the analysis group. While these are simulated, rather than actual products in the market, it suggests those who are using structured vehicles as a means of gaining low risk exposure to equities could be better off in a deposit account. However, with six out of eight simulations outpe...