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.

  1. Equity

    Equity is the value of an asset less the value of all liabilities ...
  2. Derivative

    A security with a price that is dependent upon or derived from ...
  3. Locally-Capped Contract

    A type of embedded option found in structured investment products, ...
  4. Globally-Capped Contract

    A type of option that guarantees a minimum return but puts a ...
  5. Risk Averse

    A description of an investor who, when faced with two investments ...
  6. Risk Lover

    An investor who is willing to take on additional risk for an ...
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