Despite the bad reputation structured products gained throughout the financial crisis, defined risk products will become an increasingly important feature in investor's portfolios, said Norman Villamin, Citi Global Wealth's head of investment analysis and advice, Asia Pacific.
"I think structured products certainly have a place in people's portfolio and I think they are an important way to manage risk for people," he told CNBC last week.
Villamin noted that products are increasingly used for risk management and for 'position management', rather than for speculation or making leveraged bets, as was the case 18 months ago.
"I think going forward ...a lot of people [will be] a bit more cautious, a bit more thoughtful about the size of the positions they are taking relative to their overall portfolio and really try to understand better how to use structured products," said Villamin. "And so to a certain extent, it was a learning experience, it was a good thing for the maturity of the business."