Structured Products (SP) in India

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.

Our Philosophy for Structured Product

We design Structured Products (SPs) in a way to maximize the probability of achieving the Investment Objective. The tenure of these products is around 3.5 years with a minimum lock-in of 1 year. 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.

Why choose us?

We offer SP Depending on the risk appetite of the investor, every product has a pre defined payoff scenario that yields max coupon if at final observation (~3years from Investment Date) the NIFTY Level is at or higher than the Threshold NIFTY Level.

The below mentioned product ideas are for a 1160 to 1300 days.

Asset Allocation	Debt	Debt	Equity	Equity
Product Name	Protected   Call	Nifty    Magnifier	Uncapped Accelerator	Nifty Accelerator
Coupon	47.50%	60%	60%	75%
IRR (Pre-Tax)	13.01%	14.11%	15.94%	17.02%
Target Level	6%	10%	16%	20%
Target NIFTY	Initial Nifty*(1.06)	Initial Nifty*(1.10)	Initial Nifty* (1.16)	Initial Nifty*(1.2)
Principal Protection till	-13%	-30%	-15.00%	-30%