What are structured products as alternative investments?A structured product as alternative investment allows you to participate in the performance of a fund of funds with a small minimum investment contribution. The underlying of this structured product is a broadly diversified fund of hedge funds investing in hedge funds that follow a whole range of different strategies, depending on the investment focus. This makes it possible to achieve positive returns not only in rising, but also in falling markets. |
How do structured products as alternative investments work?The price of the structured product depends on the performance of the underlying fund of funds. The structure of the fund of funds and the question of what strategies should be followed is decided by the specialists of the Alternative Investments team of Erste Group Bank. The structured products are partially issued with a capital guarantee. Should the underlying fund of funds against all expectations record a negative performance, the product is converted into a zero-coupon bond. This way the 100% capital guarantee ensures that at the end of maturity you get at least the capital invested back. |
Your benefitsWe recommend a structured product as alternative investment especially if you wish to diversify an existing portfolio with alternative investments. This way you can achieve positive returns even in falling markets. The capital guarantee lowers the risk which tends to be higher for hedge funds. |
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Details you should be aware of
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How do structured products as alternative investments react to…… rising, stable or falling market? |