Structured products gain in popularity as market volatility increases

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