Should Structured Products Feature in Your Investment Portfolio?
David Thomson, chief investment officer at VWM Wealth, discusses investment portfolios with The Herald:
“Structured products have been gaining in popularity recently, if increased sales are anything to go by.
A typical product currently in the market is offering a return of 4.35 percent per annum over five years so long as the FTSE 100 index does not fall by more than 40 percent in that time.
This might be attractive to someone seeking a fixed income who is willing to take a punt on where the index will be, but structured products have had a chequered past.
This has been not so much because of their underlying nature but often because those invested in them did not fully understand what they were investing in or did not look any further than the headline rate.”