Structured Product Investment Guide
What are Structured Investments? Understand the characteristics and potential risks
You may have heard about structured products/structured investment from Bank Managers, and our Foundation's meetings can improve investment returns, provide a multi-dollar structure and a 100% guarantee guarantee.
Other structured products are complex investment products. Issuing Institutions will generally invest most of their funds in fixed-income products, while others invest in commodities to extract higher returns. The most common examples are: Stocks Linked Investment (ELI). Stocks linked to notes (ELN) and Guaranteed Structural Deposits are related to structural products. This article describes the characteristics of structural products, what risks investors need to be aware of when investing.
What are structural products?
Structured Products/Structured Investments (Structured Investments) is a form of ticket issuance that combines fixed income products (such as government bonds, deposits and financial products), which are primarily investment tools such as options. Higher-demand investment returns are possible by leveraging the leverage effect of productive finance tools. The design allows investors to customize Linked Assets Investment Products and Investment Futures based on their own risk and market views, becoming the choice of individual investors who want low risk and guarantees!
What are the features of structural products
Structured products have roughly four main characteristics:
Fixed investment period: A structural product has a fixed investment period, for example, when a product is linked to an option for a period of 3 months, the investment period of the product is 3 months. The usual time limit varies from 3 months to 3 years, and the average investment is about 3 years.
Term Guarantee: Structured products are generally subject to a 100% warranty or partial warranty (such as 90% warranty), provided that the warranty is valid only for as long as it exists. Therefore, when buying structural products, it is important to be mentally prepared for the due time.
Profitability formula: The profit calculation of a structured product is usually based on a specific formula to suit the needs of a particular market or a specific investor. The general reasons for the calculation formula are to link the range of changes in the price of Assets, the investment period, the reference ratio, and the dipping above the reporting limit. According to the ratio, the ratio of return on Linked Assets that investors can receive can be greater than, equal to or less than 100%. Example: If we buy a structural product with HK$0.1 million, the rate of return for the structural product is 90%, the return on the structural product is 10% over time, and the money returned in the term = 0.1 million+0.1 million*90%*10%=0.109 million.
Multi-dollar Add-on Product Selection: Structured products are added to life tools, and different types of investment assets can be attached to different types of assets, such as: Bonds, Bond Market Indices, Stocks, Stock Market Indices, Major Commodities, Forex, and MMFs. Product types can be divided into Look-up and Put type. There are usually a large number of structural products that depend on stocks and share-related indices.
Types of structured products
The main structural products can be classified in two ways: Guaranteed Program or Hooked Assets.
Segment of structured products according to warranty level
According to the degree of protection against the principal, structural products can be divided into 3 types:
100% Guaranteed Products: Based on insured bills, 100% principal protection is usually available. The lowest return is the recovery of funds invested at the beginning of the recovery period, which can generate additional returns when the investment product moves in line with expectations. For example, some Sharkfin notes (Sharkfin) and Digital Structure Notes may be fully underwritten.
Partial Guaranteed Products: Only part of the principal is covered. Such products have a default value threshold, such as 90% capital protection, with the greatest risk of losing 10% of the principal. For example, Snowball Bills, Buffer Notes.
Non-cash hedging products: These structural products do not provide cash hedging and may provide higher possible returns, although there is usually a limit on feedback. If there is a 20% increase in Hooked Assets and the Product Terms stipulate that the maximum return is 12%, investors can actually only get 12% of the return on the return of the assets if the assets fall, then some or all of the capital may be lost. This type of product is suitable for investors who are looking for higher returns at higher risk.
Futu is now offering different guaranteed structural products for retail investors, 100% up to term cash guarantee, as low as HK$0.1 million, and annual income of up to 8% *!
Futu purchased the FCN structural product available for retail for the first time, and after the product was successfully launched, received a $200 fee and a free discount
*Maximum 8% annualized revenue (4% actual revenue from 6 monthly limited-time products) is the highest annualized revenue from Futu Platform offering structured products, the data is as of May 22, 2025. Benefit data is provided only by reference, through the data and does not predict unearned income. Ageing income=actual income/fixed-term limitedx 12. AGEING BENEFITS ARE ATTRIBUTABLE ONLY TO THE NATURE OF THE HOLIDAY, AND ARE NOT ACTUALLY REPORTED.
Structured Products Based on Hooked Assets
Structured products can be classified according to the Asset type, Interest rate bracket type, Credit peg type, Exchange Rates hook type, Commodity hook type etc.
Equity Hook-Up Type: Formed from a combination of Fixed Income Securities and Stock Option Options, it is widely known to the general public that investors receive the benefits of Linked Investments (ELN) and Linked Stock Investments (ELN). The benefits of investors depend on Linked Investments (ELN). It is widely known that investors' income depends on the price line of stock stocks. There are several products that provide 100% hedging, and some are not guaranteed designs.
Interest Rate Dependency Type: Combining bonds and interest rate generation tools, yield and LIBOR, and HIBOR, the structure is different, such as a special design that can result in higher returns due to the reverse volatility of interest rates.
Credit Dependency Type: High risk, the credit status of major corporate or national bonds, the occurrence of contractual or delinquent credit events occur every day, for the best possible outcome. These products are generally only suitable for individual and professional investors.
Exchange Rates Dependency: Especially common when investing in cross borders, are mainly based on Dual Currency Notes and Indexed Currency Option Notes. For example, dual-currency tickets allow investors to choose to withdraw their original investment currency in a timely manner or convert it to another currency to benefit from changes in exchange rates between the two currencies.
Commodity Dependency: Depending on the price of large commodities such as Gold and Crude Oil Products, for example, if some gold tickets are set above the price limit, earnings will be locked at the highest level when the price rises above the limit range.
What are the advantages and risks of structured products
The advantages of structured products are as follows
Strengthen profits: Structured products can be linked to different types of Assets and have the potential to earn higher returns. In the face of high volatility in the market, some investors are afraid to enter the market with losses, while others miss the time. As a result of investing in a guaranteed structural product, they can insure the capital and have the opportunity to profit from risk.
Risk stratification: Insured products are suitable for conservative investors, while non-insured products are suitable for those with higher risk tolerance.
Personalized Design: Individual professional investors enjoy a wide variety of customization options, including Investment Allocation, Linked Assets, MMFs, and Futures, which can be adapted to investor needs in different markets, adjusting guaranteed ratios, earnings models and linked investment products.
But at the same time, due to the underlying product design, there are corresponding risks for structural products, such as
Market Risks: The commodity sector is separated from the impact on the asset price of invested assets, and the non-guaranteed model may lose capital.
Volatility Risk: Very few trades are traded after a structural product is issued, and there are generally fixed investment deadlines, which can be slightly discounted beforehand, not suited to the needs of investors with strong short-term volatility.
Credit Risk: Issuers of structured products are usually highly credit-rated Institutions, but investors may face credit risks if they are exposed to financial or debtor default risks.
Exchange Rate Risk: Foreign exchange rate volatility risks based on the need for underwriting.
How do I invest in structured products in Hong Kong?
1. Can ordinary retail investors also participate?
As a general rule, structured products are limited to individual professional investors (PI) who have an investment portfolio of not less than HK$8 million or equivalent within 12 months. However, Futu launches a retail structured product, which usually requires purchases of HK$0.1 million or US$0.015 million, so that non-PI investors can participate! For example, you can trade on Futubull, for example, in the case of a fish stock structure and a $2 structured product.
2. How to invest in structured products at Futubull?
Open a full account on Futu online. Today, Futu opens its doors to more than half a dozen new prizes!(Open your account now)
Enter the Futubull APP, select the Discover channel, choose the Point of Finance channel, and you can see Funds, Bonds, and so on.
Click [Structured Products] Select the product you intend to order.
Select the product to complete the purchase, and after the purchase is completed, you can see the product Hold Positions status on the relevant Account page.
