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Which is the best structured product?

Looking for the best structured product, we can help, structured products can be complex so it is always wise to speak to a financial adviser to make sure it is the right investment for you.

What is a structured product?

The term structured product broadly refers to fixed term investments that link their pay out to the performance of a particular index, such as the FTSE 100 or to shares in specific companies. This means that the amount you receive back from your initial investment will depend on the performance of the underlying asset.

Structured products are sometimes invested in by people who are looking for alternatives to deposit or savings accounts. When you invest in a structured product, you invest your money for a set period of time, such as five years, and at the end of the term, you get a lump sum.

What types of structured product are available?

There are two main types of structed product, and these are as follows:

  • Structured investment – this type of product may offer partial protection of your initial investment, meaning that you can expect to get at least some of your money back at the end of the term. Usually, some of your investment goes towards protecting a proportion of your capital, and the other goes towards potentially providing a return.


  • Structured deposit – this type of product usually offers the full initial investment to be returned at the end of the term, unlike a structured investment. The rate of return you get will depend on the performance of the underlying asset. Generally, structured deposits have the potential to offer a higher rate of return than a standard deposit account, but this is not guaranteed.

Although structured deposits often guarantee to return your capital, the effect of fees and charges can mean that you get back less than your initial investment.

How does a structured product work?

The exact details of how a structured product works will depend on the provider. However, an example could be as follows:

A ‘capital at risk’ structured product might offer a return of, say, 50% on the investment if the FTSE 100 was at the same level or higher on the day the product matures in 6 years time. If the FTSE 100 is below that level it will return the original investment amount, unless it is more than a specified amount below, say 45%, whereupon capital would be reduced by the equivalent fall in the FTSE 100

Should I invest in a structured product?

Structured products often give you access to features that are not necessarily available with traditional investments, such as providing you with protection to your capital or providing positive returns even when an index does not perform well.

Structured products are usually aimed at people who have a wider investment portfolio and may help reduce exposure to negative investment returns.

Things to consider before taking out a structured product

Structured products are often considered as complex and you should therefore speak to a financial adviser before deciding to invest, as it is really important that you understand the product and its features. Woodward Financials were awarded best wealth management firm in 2021 and again in 2022 who have a team of advisers ready to help you answer these questions and guide you through the right business structured product for you.

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For more information you can contact David on 01753 839348 or email