Why would you buy structured investments?

[scroobal]

Have been pondering for the last few weeks why in the world would the man in the street buy structured investments other than for the higher interest?

Really puzzling when no one I know from family, friends, associates, ex-work mates, present colleagues, ex-classmates etc have invested in it. They are into fd, gold, local and foreign equity, forex, unit trusts, bonds etc but no structured investments.

Apparently MAS attempted to find within its staff anyone who purchased to relate their experience to help in the investgation but could find none.

Any of you guys can relate any cases that you have come across?

I also understand that such products are not offered to retail customers in most developed countries. Only to high net worth and financial institutions.

 

[masgnoeL]

There are two words here.
Structured
Deposit

Structured - Defines the manner the investor is paid or penalized and contains its own contractual terms and conditions which relates only to its own.

Deposit - It looks like a deposit since traditionally, a deposit requires a period of time for it to mature and if withdrawn earlier, the investor suffers a loss.

 

[i_am_belle]

probably goes like this -

old person - i wanna renew my FD ...

cashier - ok, the rates are x% pa ...

old person - lower than previous ! aiya so low ...

cashier - uncle/auntie, i can show u something that earns higher interest ... takes out minibond/high notes brochure ... calls out to reln manager ...

reln manager - (ready to pounce, hee hee, gonna meet my sales target leow !)

old person - is this safe, not like shares/unit trusts ahh ... ?

reln manager - definitely safe ...

old person - i put minimum amount try out lah ...

reln manager - put the entire amount lah ! then u can see substantial gains(sales target, sales target, else boss will kick my arse) ...

as they say, the rest is history ...