Tag Archive: Structured product


As I did a story few days back  When to sell and When to buy ?     Trying to recollect the some book rules blogfor Investments that holds true in many adverse scenarios.

As all of you must be aware of that 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 behaviour. So they structure products that exploit our flaws. Continue reading

The field of behavioral finance has helped us to understand that we don’t always make rational investment decisions. We often make blogpoor 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.
  • Only invest in a product if the seller can demonstrate that they also are investing in the same product.
  • Never buy a complex product; if you can’t fully understand the nature of the risks and the costs, run as fast as you can because you can be 100 percent certain the complexity is designed to favor the issuer. In other words, you’ll be the patsy at the poker table who doesn’t know he’s the patsy.

Continue reading

As I did a story few days back  When to sell and When to buy ?     trying to recollect the  some book rules for Investments that holds true in many adverse scenarios.

As all of you must be aware of that 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 Continue reading

Investor’s Traps

There are so many products in this global financial market that sometimes adownload

financial adviser feel more like a bouncer than anything else ……..

  • Principal protection funds. ( They are always come out after the market’s been killed and cap your upside on the recovery)  Continue reading

imagesIn our last few posts we have talked a lot about simple derivatives with their detailed structure and the different approaches, they have towards market. Going onward, we will be discussing another complex form of derivatives known as structured derivative products. We will take up these products one by one separately in detail, within our new series of posts “School-To-College”.

In today`s post, we would be discussing what structured derivatives are all about, Continue reading

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