Almost 30% of German self-directed investors believe that structured certificates should take up to 5% of a portfolio of securities, according to a monthly online poll conducted by the German trade body Deutscher Derivate Verband (DDV) among 3,111 investors in February. The poll revealed that 28% of investors see structured certificates as a key part of any securities portfolio and should represent 5% of the portfolio, while 22% of respondents said the portfolio should hold between 5% and 10% of the investments in structured certificates.
Certificates have a permanent place in a balanced portfolio, especially in the current low interest rate environment where financial products with yields above the inflation rate and a low risk remain popular, said Lars Brandau, managing director of the DDV. “Investment certificates in particular can score here, as with them it is possible to generate attractive yields on a low cost and on a transparent level,” said Brandau.
According to the DDV survey, 20.70% reckon that a ratio of over 10% invested in structured certificates would be appropriate in a balanced portfolio while around 17% of respondents think that a ratio of over 30% of structured products in a portfolio is right.
In addition, the survey unveiled that 12% of investors believe that structured certificates should represent between 20% and 30% of an investment portfolio while 16.9% think that a balanced portfolio should allocate more than 30% to structured products.
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Half of German self-directed investors allocate up to 10% of their portfolio to certificates