The field of behavioral finance has helped us to understand that we don’t always make rational investment decisions. We often make poor decisions because of our biases. And the designers of structured product are well aware of these “flaws” in investor behavior. So they structure products that exploit our flaws.
Few points to be taken in to account :-
- Never buy an investment product if there’s a commission attached to it.
- Only work with an adviser who offers a fiduciary standard of care.