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Structured investment is a form of investment that can potentially bring about higher returns, compared to other investment products, like fixed deposits. Although it promises higher returns, it also comes with higher risks.

Structured investments are often linked to the performance of various underlying assets such as interest rates, foreign exchange, equities, fixed income instruments or market indices.
 
 
 
 
Interest rate-linked structured investment
 
For an interest rate-linked structured investment, the returns are usually linked to some interest rates. There is usually a formula that refers to a specific floating interest rate (e.g. the Kuala Lumpur Interbank Offer Rate (KLIBOR).The actual returns depend on the interest rate movements. For example, if KLIBOR moves WITHIN the agreed band during the investment period, you will receive a positive return on your investment. On the other hand, if KLIBOR moves OUTSIDE the agreed band during the investment period, there will be no investment return for you. You will only receive the amount of your initial investment.
 
 
 
If you withdraw the investment before it matures, you will receive a sum less than your initial investment. The amount you receive will be deducted of fees and costs payable.
 
 
Structured investments are complex products and may not be suitable for all investors. However, if you feel that structured investments are suitable investment for you, here are additional matters for you to consider before investing in structured investments:
 
Be sure that you fully understand all the features of the investment before you make your final decision.
   

Do not be easily persuaded by the marketing staff and jump into the investment before understanding the product and risks involved.
   

Remember that you may have to bear all fees, expenses and/or investment losses if you decide to sell it or switch to another product before it matures (e.g. if the investment risk is higher than what you are prepared to take or the protection benefits provided do not meet your needs).
   
Seek professional advice if you need.
 
 You can also use our checklist to further assist you in making your decision.
 
 
 
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For further explanation on these investments, download our info guide for more detailed information.