An Experimental Study to Develop a Structured Product for Financial Benefits of Investors
Structured Product constitutes a large industry and an important part of investment and capital market activity. Structured products are financial instruments designed and created for HNI’s High Net worth Individuals investors for exposure to something through a derivative contract. The objective of Structured Product is to eventually offer principal protection with expectation of Equity like returns. The researcher after analyzing the research papers, have found that Structured Product has a long way to go. Structured Product plays a key role for HNI’s with composition of fixed income and derivative component. The significant combination allows the product to maximize the probability of generating expected returns while keeping the risk level in check. The return of an SP Structured Product is linked with performance of Nifty. The returns generated can vary according to rise in level of Nifty. This topic has been chosen by researcher to study and experiment various designs and strategy of developing a SP. The research design included conducting interviews, carrying out survey about Structured products, and using the secondary sources to meet the objectives of the research. Grounded Theory Analysis has been used by the researcher to analyze the data. The research may provide the readers with detail working of SP with its Strategy of Investment and expected returns. SP have been around since 2006 in India and is expanding at steady pace with more investors taking notice of their noteworthy performance across these years. Further there is a scope to carry out research on returns of SP by using different derivative component like Foreign currency and commodity market as well and also to increase the performance of SP by generating more returns. Market unpredictability has created a pressing need for products that can not only sustain through the market disorder but also prosper during those phases. So an investor should not only try to prevent the investment from eroding when the market stagnate or fall, but also generate positive returns during that phase. Structured Products SP are one such category of products that can be used to generate positive returns across a variety of market Situation.
Structured Product, High net worth individuals HNI s , Option Trading, Zero coupon bond, Hedging, Principal Protection
Aditya Ramchandra Mhasawade | Pallavi R Gedamkar