The ABCs of structured products

A smart way to invest and diversify your portfolio

- SAMUKELO ZWANE

INVESTING CAN feel like a daunting task, especially with unpredictable markets and an overwhelming number of options to choose from. Many South Africans want to grow their wealth, but are also mindful of protecting what they have already built.

The challenge is finding investments that offer both security and opportunity, and one such investment solution is structured products.

Structured products are designed to give investors peace of mind in uncertain markets. They provide a balance between risk and reward, offering exposure to financial markets while managing potential downsides-making them an ideal solution for those who want to build their investment portfolio without taking unnecessary risks.

This article unpacks what structured products are, how they work, and on how they can benefit investors.

The evolution of structured products Structured products were once the domain of large institutions and high-net-worth individuals, often perceived as complex and inaccessible. However, as financial markets evolve, so have these investment tools.

Today, structured products are designed with transparency and accessibility in mind, making them an attractive option for a broad range of investors.

What are structured products? Structured products are investment vehicles that provide a balance between growth potential and risk protection.