Structured products have never been more popular. But their increasingly high profile has not dispelled many of the myths that continue to cloud the way some investors - and advisers - perceive them.
The following list outlines some of the more common charges levelled at structured products, and shows why most are either fallacies or simple overstatements of the truth. 1. Investors can't get out It is true that investors must hold their plans until maturity in order to receive benefits such as capital protection and geared returns. However, many providers now offer monthly or semi-monthly liquidity to enable investors to exit their plans much earlier if they wish to do so. Critics often cite the above hold-to-maturity requirement as a reason not to invest in structured products. I...
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