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Structured investment is a form of investment that can potentially bring about higher returns, compared to other investment products, like fixed deposits. Although it promises higher returns, it also comes with higher risks. Structured investments are often linked to the performance of various underlying assets such as interest rates, foreign exchange, equities, fixed income instruments or market indices. They are fixed term investments A structured investment has a maturity period depending on the features of the products. If redeemed before maturity, your investments may lose part of the returns and/or principal. They can either be principal protected or non-principal protected. The level of risks involved in non-principal protected structured investments are higher compared to principal protected structured investments. There is no guarantee on the amount of money you will receive on non- principal protected structured investments even if you hold them to maturity.

The returns on structured investments vary, are usually not guaranteed and are dependent on the performance of the underlying assets during the investment period. You may face losses if the performance of the underlying assets differs from what you have anticipated. The returns on certain structured investments may also be affected in movements in foreign exchange. Non-principal protected structured investments usually give higher returns compared to principal protected investments. This is mainly because of the higher risks involved in the investment. Structured investments can be used for income growth purposes. However, as in any investment, there are potential risks involved. As a savvy investor, if you are considering to invest in high-risk investments such as structured investments, you should have an asset portfolio that includes low risks assets such as fixed deposits.

As the name suggests, dual currency investment (DCIs) is a form of structured investment dealing with foreign exchange risks where your investments will be made in one currency (called 'base currency'). At maturity, you will either be paid in the base currency or in another currency (called 'alternative currency'). As an investor, you can choose both the base currency and alternative currency. However, remember that if the banking institution pays you in the alternative currency, you could experience a loss on your principal when you convert it back to the base currency if the foreign exchange rates did not move in the direction you anticipated.

HOW STRUCTURED INVESTMENT PRODUCTS WORK Structured investment is a form of investment that can potentially bring about higher returns, compared to other investment products, like fixed deposits. Although it promises higher returns, it also comes with higher risks. Structured investments are often linked to the performance of various underlying assets such as interest rates, foreign exchange, equities, fixed income instruments or market indices. Interest rate-linked structured investment For an interest rate-linked structured investment, the returns are usually linked to some interest rates. There is usually a formula that refers to a specific floating interest rate (e.g. the Kuala Lumpur Interbank Offer Rate (KLIBOR).The actual returns depend on the interest rate movements. For example, if KLIBOR moves WITHIN the agreed band during the investment period, you will receive a positive return on your investment. On the other hand, if KLIBOR moves OUTSIDE the agreed band during the investment period, there will be no investment return for you. You will only receive the amount of your initial investment.

Minimum amount required Return: Fixed interest rate Potential enhanced return/interest (performance pay-off) Full principal sum payable on i. Maturity ii. Early withdrawal iii. Early redemption by bank Risks involved Protection by Malaysia Deposit Insurance Corporation RM500 Yes No Yes Not Applicable Relatively risk-free Yes Floating rate negotiable instruments of deposits: RM100,000 Investments linked to derivatives:RM250,000 (Only applicable for investments with a minimum interest feature) Yes (Applicable for principal protected investments only) Investors may lose part of their return and/or principal. The amount to be paid to investors depends on the market value of the underlying assets. Yes Return can be affected by various types of risk such as interest rate risk, market risk foreign currency risk, and early termination risk. No Fixed DepositStructured Investments Difference between Fixed Deposits and Structured Investments