WARWICK LUCAS: Structured deposits: a rose by another name
These products consist of a bond or fixed income security and a riskier asset such as an equity index with a dollop of optionality
29 August 2024 - 08:00
Structured deposits are more commonly known in South Africa as guaranteed products.
These typically involve a promise to return your original investment after a long period (typically five years) along with a return component from an indexed risk investment (usually a local or foreign equity index). They got a bad rap, like so many other conceptually sensible financial products, from mis-selling, opacity, overcharging and predatory design by bad actors in the past, which have led to the baby being chucked out with the bathwater...
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