Tatiana Dementieva
Financial history is thousands of years long. Even in Ancient Rome there was something like today’s investment funds and trust management. Medieval Italian republics like Genoa and Venice were successful merchants and contributed a lot to the development of banking business in general. Futures, options, stocks… all these financial instruments are the result of the centuries-long evolution of the financial world. Yet, the world keeps evolving. In this aspect, structured products can be considered one of the latest stages of this evolution.
What are structured products and what is their competitive edge?
Structural Products – Optimal Diversification
According to Eugene Olkhovsky, ’s leading experts in financial markets form Canada, structured financial products emerged a couple of years ago in Western markets. They came as the result of investors’ efforts to combine potentially high income with safety of funds.
Obviously, the innovation was tested in real market conditions and miraculously turned out profitable. Investors were content with the testing results. Not so long ago, structured products started spreading over emerging markets, including Asian countries, Russia and other CIS states.
What is the essence behind the innovative products? Essentially, structural products are simple but powerful and efficient instruments of diversification. An investment portfolio is split in half. The biggest part is invested in more reliable riskless low-reward assets. At the same time, the smaller part is invested in riskier assets that can generate much higher income. This is who the capital is protected while making it possible to generate decent profits. Even in the worst-case scenario, investor won’t lose his entire capital. A temporary drawdown will be followed by a recovery and profits while the bigger and more reliable part of the portfolio completely covers all the probable losses in the riskier part.
Therefore, essentially, a structured product is a ready-made investment portfolio. Obviously, if you are an experienced investor or financier, you can build a structured product on your own. However, most mediocre investors cannot do it on their own but they still want their portfolios to generate decent profits for them. Is there a way out? Yes, there is… You can let professional create structural products for you.
Who offers the industry’s best conditions for structured products?
At this point, there are several major broking companies in the industry that offer their clients various structured products. Those structured products differ in several aspects.
Earlier this year, conducted research to find out that Alpari is currently offering the industry’s best structured products under optimal conditions.
For more information, please visit the company’s official website
Tatiana Dementieva
