SIX Swiss Exchange: Participating In The Trends Of The Future

Smart homes and wearables are among the hottest topics of discussion among stock experts right now. And no wonder! After all, these areas are expected to offer great potential for consumers and thus also for investors in the future. One day, technology will enable all electronic household appliances to communicate not only with each other as a matter of course, but also with the Internet and therefore with the homeowner's smartphone. Desired interactions will work even when you are miles away from your house or apartment. In addition, you will be able to regulate the room temperature, switch on lights and initiate other useful processes in your "smart home" while still on your way home.

At the same time, technological advances have made it possible to integrate tiny computers in items of clothing, plasters, watches and many other accessories, making them "smart" or "intelligent". Using wearables, it is already possible to count your steps or record your sleeping patterns. You can thus monitor your own health efficiently thanks to a wide range of technologies.

Many private investors are already convinced of the investment and yield opportunities offered by future topics such as smart homes and wearables. However, it is not always easy to find the right investments for profiting from certain trends.

Simple implementation of investment strategies

Participation products enable you to participate in promising developments - even with a low initial investment. And they offer many advantages. They are aligned solely to the price of the respective underlying, which could be a share, a basket of shares or an index, for example. This makes them transparent. However, they do not necessarily have to match the development of the underlying one-to-one. Special investment strategies can be implemented.

There are participation products that allow investors to profit disproportionately from rising or falling prices for the underlying. In case the underlying does not develop in the desired direction, integrated conditional capital protection that takes effect when the price falls below a certain level can protect the investor from high losses. Without this protection, the capital invested could be eroded or even lost completely in the event of an unfavorable development of the underlying.

Well-known types of participation product include bonus certificates, for example. These are characterized by the fact that they guarantee investors a certain repayment amount (bonus level) provided the underlying does not fall below a certain price threshold (safety threshold) during the term. The repayment may be capped at a fixed level, but many bonus certificates allow investors to profit from unlimited price increases in the underlying above the bonus level. However, if the price falls below the safety threshold, some or even all of the capital invested may be lost.

For more information: www.six-structured-products.com.