What are Structured Products
A structured product is an investment that combines characteristics of traditional investments, like bonds, with traits of more complex investments, like derivatives.
As per SEBI norms, hybrid securities combine features of debt securities and exchange-traded derivatives. Derivatives are financial contracts which derive their value from the performance of an underlying asset -stocks, stock indices, etc.
Structured products allow investors to profit from asset price movements without directly owning the asset. These products incorporate derivatives to link the returns to the performance of the underlying assets.
Structured Products have different characteristics and elements, such as:
Bonds: Within Structured Products, bonds ensure capital preservation, with the issuer committing to repay the capital.
Derivative instruments: The use of derivatives, including Futures, Options, and Swaps, among others, to tailor the risk-return profile according to the investor’s risk appetite.
Benefits
Customised Investment
Investment can be structured to suit individual client needs.
Enhanced Yields
Strong returns are possible in certain market environments.
Flexible Participation Ratio
Degree to which an investor can participate in the potential movement in the equity market.
*RBL Bank is only a Referral partner. Servicing of clients pertaining to this product will be dealt by the empanelled partners.
Portfolio Management Service
Portfolio Management Service (PMS) is a professional service offered to different investor classes like private clients, family offices, HNIs etc.
It essentially represents a portfolio in stocks, fixed income and other securities managed by experienced and professional portfolio managers. PMS caters to clients’ different investments objectives by offering bespoke solutions to meet investors’ unique investment objectives.
In PMS each investor owns individual securities and the portfolio is managed independently unlike mutual fund where investment management is undertaken for the entire set of customers.
Advantages of Portfolio Management
Asset diversification
Portfolio customization
Governed by regulations
Transparency
Dynamic portfolio rebalancing
Alternate Investment Funds
Alternate investments are investments whose risk and return structures differ from the traditional asset classes such as equity and debt. These funds cater to sophisticated investment needs of HNIs, large private institutions and corporates. AIFs include Private Equities, Venture Capital Fund, Hedge Funds, Commodity Funds, Debt Funds, Infrastructure Funds etc.
Category II Funds
These are closed-ended funds with a minimum tenure of three years which do not get any specific incentives and concessions by the government. These funds cannot be categorized as Category I AIFs or Category III AIFs. The institutions under this category include Private Equity Funds, Debt Funds, Fund of Funds etc.
Category III Funds
These are funds that undertake complex or diverse trading strategies including hedging, investments in listed and unlisted derivatives and may employ leverage. They also include Hedge Funds which trade with a view to make short term returns. They deploy funds in securities of listed or unlisted investee companies, derivatives or complex structured products. For close ended funds, minimum tenure is of three years, whereas for open ended funds there are no tenure restrictions.
REITS
What are REITs?
Real Estate Investment Trusts (REITs) are investment instruments that enable individuals to collectively invest in income-producing real estate such as office buildings, shopping malls, or industrial warehouses, without the need to own physical property.
Investors benefit from regular rental income, possible capital growth, and ease of buying or selling, as REIT units are listed and traded on stock exchanges like shares.
This makes REITs a convenient and efficient way to gain exposure to the real estate sector.
