While the +30 per cent would be a boon to retirement portfolios, it isn't required and the -30 per cent return has serious consequences.
After all, just under 7 per cent pa compounded over 10 years will double a portfolio's value.
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As we have witnessed over the last few weeks, there have been some of the most aggressive falls in the FTSE 100 and indeed all global indices in our lifetime.
Many investors are worried and are suffering some heavy losses in their portfolios.
However, if used as part of a diversified portfolio, structured products can take advantage of these volatile periods and indeed can benefit from them, as shown in the improved pricing and lower index entry levels.
Nick Johal is a director at Dura Capital
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