ABSTRACT
Structured products are designed as part of prepackaged investment strategies by financial engineers, often combining elementary financial instruments such as bonds and stocks, that are traded independently in spot and futures markets, to offer tailor-made risk return profiles to the investors. The structured products were first introduced to high net-worth individuals in the early 1990's, the value proposition was focused on innovation, access to capital markets, and potential for enhanced performance. The product payoff depends on the underlying asset's dynamics, and the type of payoff and periodicity are defined by components of the structured product, that is securities, and derivative instruments. The lack of a standardized classification of structured products has tough implications for all market stakeholders. The structured product is designed for a predetermined group of investors such as retail group, group of institutional investors, and individual investors, and customers.
