An Analysis On Structured Products Investment

With financial markets growing, early deposits, treasury bonds and other single investment can no longer meet the diversified investors for investment requirements. It is a kind of structured financial products aimed at increasing investor returns and reducing risk of new investment products in people's eyes. Structured financial products, however, is essentially a financial derivative products, therefore, its returns and risks of the characteristics of a certain complexity, not the majority of ordinary investors will be able to easily analyze clearly. Coupled with the development of China's financial markets a few years, is not mature enough, which caused the financial market problems continue, such as "zero income and negative returns", "The exaggerated the expected rate of return," and so on, these are a great blow to the investors confidence, but also to the reputation of banks and other issuers have a negative impact. This paper is to seek from the analysis of structured financial products, returns and risks of investment income to start, for investors and introduce the structured financial products, analytical methods with a view to structured financial products, investors have to make some reference.The first part of this paper by analyzing the status of structured financial products in the market leads to structured financial products, features and definitions, and then illustrate the currently internal market basic information of structured financial products, as well as the main problem of domestic financial markets; the second part of the paper shows the classification of financial products, and then analyze features of structured financial products returns, and lists the most representative of the structured financial products with returns linked to the performance of the underlying asset approach, followed by analysis of structured financial products, the risk of common types and characteristics; The third part of the combination of life-cycle theory to analyze the life cycle at different stages of the investor should invest in different properties of the returns and risks of financial products; fourth analysis of some of the major categories of investors to the risk of property, as well as investors with different risk attributes of structured financial products investment should adopt a different investment strategies; fifth part is a combination of theoretical and empirical ways, based on the Monte Carlo simulation methods, using econometrics in the conditional GARCH model to simulate the structured financial products the future direction of the underlying asset and thus a more precise analysis of the financial benefits and risks of the product characteristics; The last part is a summary of this analysis, the content and structured financial products for investment, and makes recommendations with regard to structured financial products investment, and structured financial products market problems accordingly.