What type of capital protection is best for structured products?

STRUCTURED PRODUCTS

Nev Godley, vice president of Morgan Stanley, compares the different types of capital protection available to structured product investors.

Structured products appeal to UK investors for a number of reasons. One of the key benefits is the downside protection they can provide. This helps investors protect against losses, and add some diversification to their portfolios. But not all structured products offer the same level of capital protection. It is important investors understand the different types – primarily so they can get the capital protection they need, but also so they do not pay for protection they don’t want. Three types of capital protection available Full capital protection Fully protected structured pr...