Structured Products
Structured Products are a wealth creation & portfolio protection tool. It is designed by wrapping -Nonconvertible Debentures (NCD’s). Unlike conventional NCD’s, coupon of these debentures is not fixed but are linked to an index (Nifty).
Structured product is designed by wrapping NCD’s with derivatives. The payoff of the structured product depends on this NCD–derivative fusion. SPs carry the same risk as debentures while assuring a customized predefined payoff.
An example of a structured products offering: