Banco de Chile's fund manager Banchile is offering two new structured funds linked to European and US equities for local retail investors.
Fondo Mutuo Banda Europa Garantizado is a one-year fund linked to the DJEurostoxx50 with a range pay-off. It guarantees 96% of capital invested plus coupons of between 0.85% and 1% per month, which will be paid if the index is within the 95-112% range of its strike. Meanwhile, Fondo Unidos Garantizado follows the same strategy, but with the S&P 500 as an underlying.
"These products seek to provide an alternative to traditional investment products while accumulating monthly coupons in an uncertain scenario in the capital markets. The aim is to maximise returns in highly volatile stock markets, but with a limited risk of loss," said Banchile.
Both funds will be open for investment from today (19 June). Minimum investment is CLP1m ($1,800).
These products are available now in Recent Additions (Chile).