Consider the following questions to help determine whether structured products might be right for you:
- Are you looking for more sophisticated solutions to meet specific investment objectives?
- Can you afford to live without a regular income flow from your deposit?
- Are you able to invest your money for the whole term of the product (normally three years) and have additional money available in case of unforeseen emergencies?
- Are you seeking a capital-protected investment?
- Do you want the potential opportunity to earn a higher return than a conventional deposit?
- Are you looking to obtain a risk and return profile not otherwise available?
- Do you want to leverage your capital?
- Do you want your returns to be linked to a specific market (e.g. equity, commodity or credit)?
If you answered yes to one or more of the questions above, structured products may be of benefit to you.
Prior to making an investment in a structured product, we invite you to consult with one of our investment advisors or relationship managers. This dedicated professional will review your financial circumstances and gain a complete understanding of your financial objectives in order to determine the types of structured products that would best meet your needs, taking your risk tolerance into consideration. Structured products have many features, and like any investment or long term deposit, it is important for you to understand the product you are investing in, its risks, as well as the role that structured products could play in meeting your overall objectives.
Products and Services referenced in this page are provided by various RBC Financial Group companies based in different jurisdictions. Potential clients should note that the regulatory regime, including any compensation or investor protection arrangements, may well be different from their home jurisdiction. You should carefully read any regulatory disclosures contained in any literature forwarded to you by RBC Wealth Management's international offices. Depending on your citizenship and residency, these products may not be available to you or may only be available from certain RBC Financial Group companies. For example, some Guaranteed Structured Deposit Accounts are only provided by RBC Financial Group subsidiary companies which only do business in Guernsey and Jersey, and are not available to citizens and residents of the USA.
The value of investments may fall as well as rise and investors may not get back the amount originally invested. Potential investors should seek appropriate advice before making any investment decision.
The term 'structured products' refers to a group of financial instruments with varying terms, payout and risk profiles on a range of underlying assets. Structured products fall into broad categories, are non-standardised and bespoke, and usually invest in a variety of underlying assets such as shares, debt securities, commodities or mutual funds.
Frequently the investments are achieved by embedding derivative products on indices. They can also utilise gearing and leverage, which increases the risk of the investment. The percentage price movements will be greater than those of the underlying asset. Whilst many structured products have a level of capital protection, not all do so. Your capital may fall below the amount you put in. This loss may significantly increase if the product structure involves gearing or leverage. The rate of return may depend on specific conditions being met. If you take your money out early, you may get less than you put in. Where a structured product note has a level of capital protection, this is normally only effective at the maturity of the note.
