Structured Investment Products - SIPS

DEFINITION of 'Structured Investment Products - SIPS'

A type of investment specifically designed to meet an investor's financial needs by customizing the product mix to adhere to the investor's risk tolerance. SIPs are generally created by varying the amount of exposure to risky investments and often include the use of various derivatives.

BREAKING DOWN 'Structured Investment Products - SIPS'

A structured investment will vary depending on the risk tolerance of the investor. SIPs typically involve various exposures to fixed income markets and various derivatives. Conservative investors will have a higher exposure to the fixed income markets, while risk-tolerant investors will have a higher exposure to equities and derivatives.

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