Autocall/kick-out plans

A utocall products have become increasingly popular with investors over the past couple of years. As a product they offer investors the option to take on market risk for a return premium, but without full exposure to the stock market. Part of the popularity of autocalls is that they can offer higher rates of return than standard structured products that run to a full term. For example, a standard FTSE 100 product maturing after 5 years might offer a return of 5-6% a year, compared to 9% a year from an autocall. Simply put, an autocall provides a defined rate of return, which will pay ...