StructuraWisor by Finwisor · AMFI-Registered Distributor (ARN-166452) · Educational platform, not a solicitation to invest
How a structure can return your principal and still give you market upside, and what that protection genuinely costs.
A capital-protection note typically places most of your money in a bond that grows back to your principal by maturity, and uses the rest to buy options for upside.
That is why protection costs upside: the money spent guaranteeing your floor is money not invested in participation.
Protection applies at maturity and depends entirely on the issuer being able to pay. A protected note from a weak issuer is not truly protected.
Partial protection, say a 90 percent floor, caps your loss rather than removing it. Know which you are buying.
Protection costs upside, and it still depends on the issuer.
Capital protection suits investors who cannot tolerate a large drawdown and are willing to give up part of the upside for that certainty.
This article is educational and does not constitute investment, tax or legal advice, nor a solicitation to invest. Any figures are indicative illustrations of mechanics, not forecasts. Refer to official term sheets and consult a qualified professional before investing.