Structured products investmentare just what they say: investors define and shape the risk/return features according to their wishes. The New Savvy explores and explains the basics of both structured deposits and structured notes, illuminating the potential benefits as well as the risk factor involved in these investments. Generally speaking, structured products utilise reference assets to determine their value. These benchmarks can be market indices, fixed-income products, interest rates, funds, equities, foreign currencies or commodities. An intriguing feature of structured products is that they enable exposure to some markets that are not always easy to access as an individual trader. Structured products investment are available as structured deposits and structured notes. Before deciding for either, do your homework! One provides a long-term, usually guaranteed return on principal if held to maturity while the other is a higher-risk undertaking because there are no guarantees on principal or rate of return. The New Savvy explains the differences, along with much, much more. Scratch beneath the surface of structured products and learn how to assess their advantages under specific market conditions. Learn about the simplicity that long-term structured deposits can offer, requiring a minimum of active management. Become aware of the factors which may cause reference assets to underperform, directly influencing the value of structured products. Check out the yields that structured products may offer based on market conditions. Understand that structured products cannot be sold quickly to provide liquidity. Educate yourself on how an investor is exposed to a greater variety of risks as a structured product owner. Dive into the concept of deposit insurance and see to what extent it applies to a particular type of structured product. Savvy women can contact any number of licensed banks, financial institutions or insurance providers to get exact details about their structured product offerings. For example, certain minimum investments apply for structured notes. There are also terms and conditions that spring into effect should a provider declare insolvency – a situation that can result in complete loss of principal. The New Savvy underscores the importance of consulting with a financial advisor before making a move on structured products investment, particularly if you’re not a seasoned investor. There are many factors to consider like your appetite for risk, your anticipated investment and liquidity timeline and what type of protection you want for your principal. Be sure to carefully weigh the pluses and minuses of adding structured products to your portfolio.