Most retail structured products are linked to equity indices or stocks as investors seek to follow the long-term growth story of equities with the advantage of risk reduction features that structured products bring.
However, other asset classes such as commodities have an active niche following within structured product markets in some countries. Where there is a culture for investors to put a small part of their portfolio into such asset classes to reap the benefits of diversification, using structured products can often make sense. This is because the protection that such products have can persuade investors to take a holding that they might otherwise be reluctant to do as a direct investment. Gold is on
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