PMS vs Structured Product

#1
Hi, I'm currently holding stocks and mutual funds. I want to sell of all these and put that money to a PMS (Portfolio Management Service).

While I'm looking at the options, I came across this Edelweiss structured product, which guarantees better returns against PMS.

At the first glance it looks very attractive to me compared to the PMS as there is better upside and lower risk.

Could someone please advise whether it's good to go to this structured product instead of PMS, by selling my equities and MFs?
 

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Alchemist

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#2
It is obvious that they will be getting the leverage from futures but it is not clear how they plan to protect the downside.

Entry Level
Average of Closings of primary issuance date and next three months F/O expiries

Exit Level
Average of the closings of 39thto 42ndF/O expiries
 
#3
It is obvious that they will be getting the leverage from futures but it is not clear how they plan to protect the downside.
There is no captial protection here. Downside is same as that of the underlying portfolio is what I understood. Please correct me if I am wrong.
 

Alchemist

Administrator
Staff member
#4
There is no captial protection here. Downside is same as that of the underlying portfolio is what I understood. Please correct me if I am wrong.
Yes but how are they going to achieve the out-performance on the upside?

If they use leverage, it will lead to higher losses when the stocks go down.
 
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