Business Standard

Structured products gain in popularity as market volatility increases

The net outstanding value of such issuances has risen to over Rs 23,068 crore

sensex, bse
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The tenure of these instruments range from 13-60 months

Sachin P Mampatta Mumbai
Structured products are gaining in popularity as market volatility increases. These products allow investors to benefit from the market upside, while limiting their downside.

These products typically invest a majority of their capital in debt. The remainder is used to buy options on a benchmark index such as the Nifty. The interest income from the debt portion over a period of time covers the total principal amount, and any returns from the options acts as a booster for returns.

The net outstanding value of such issuances has risen to over Rs 23,068 crore as of the April-June quarter, shows the

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First Published: Aug 30 2019 | 7:53 PM IST

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