Looking for More Certainty in Uncertain Markets?
Markets are noisy right now — interest rates are all over the place, the rand is weak, and global events just keep adding to the uncertainty. So, what do you do? Stay invested and ride out the bumps? Or play it safe and risk missing out?
What if there was a middle ground?
Enter structured products. They’re not new, but they’ve typically been reserved for the ultra-wealthy or big institutions. That’s starting to change — and if you’re looking for a way to invest with a bit more clarity and control, it’s worth taking a closer look.
So, what are structured products?
Think of them as pre-packaged investments that combine the growth potential of the stock market with built-in protection. You’re still linked to an index like the S&P 500 or Euro Stoxx 50, but your outcome is predefined. You know upfront what happens if the market goes up, stays flat, or even drops.
Some offer:
- A fixed return if the index performs within a certain range
- A percentage (or more) of the market’s growth
- Protection of your capital unless markets fall drastically i.e. CAPITAL GUARANTEED!!
The idea is simple: get growth without taking on all the risk.
Who are they for?
Structured products can make sense for:
- Investors wanting offshore exposure but nervous about short-term volatility
- People nearing retirement who want growth with some downside protection
- Cautious investors who want to stay invested, but with more predictability
- Anyone who values defined outcomes over 3–5 years
They also help reduce emotional investing. Since your return is linked to clear conditions, there’s less temptation to panic during market swings.
Types to know:
🔁 Autocalls: Offer a set return (e.g., 10% a year) if markets hit certain checkpoints. If they do, the investment “calls” early and pays out. If not, it rolls over — often with capital protection at maturity unless markets crash hard.
📈 Participation notes: Let you share in the upside — sometimes with leverage (e.g., 200% of the index return over five years). Plus, they usually offer capital protection if the index doesn’t fall below a set level.
The fine print
Structured products aren’t instant-access investments. They usually run for 3–5 years and come with some conditions. Returns depend on market performance, and there can be internal costs. That’s why it’s always smart to work with a financial adviser.
Bottom line?
If you’ve ever wished investing felt a bit more predictable, structured products could be the balance you’ve been looking for — smart growth potential with guardrails in place.
Ask yourself: what would more certainty be worth to you?
Interested in how this could work for you? Get in touch today.
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