Investing in capital protection products

Every type of structured investment product has its own product information. Make sure you’ve read the product information before you decide to invest in a structured investment product. You’ll find the product information in:

• The prospectus: this information is the source of the product information and prevails in the event of any other conflicting product information
• The Key Information Document (KID): this is compulsory information for 'packaged' investment products
• The product information provided by the issuer, such as a 'term sheet', for example.

In addition, you’ll find extra information in ABN AMRO’s general product brochures. General product brochures are available for investment products with conditional protection, investment products with a chance of extra return, capital protection products and leveraged products. These brochures provide information about the main features, the functioning, advantages, disadvantages, suitability, tradeability and risks of the structured product, so that you can decide whether investing in these products is the right choice for you. And to make sure that you fully understand the way that structured investment products work and the risks involved, we will test you with a knowledge exam. If you don’t pass this exam, you will not be allowed to place orders to buy structured investment products.

A floating rate note is a structured investment product for which the value and return depend on the price development of an underlying cash or capital market return. Capital protection products, which include floating rate notes, offer you a chance of returns, often in the shape of a coupon payment, while also guaranteeing that you will get back all or part of the sun you initially invested when the product matures.

You’ll find more information about the features and risks in the product brochure on ‘Floating rate notes’ and in the ‘Q&A on Floating rate notes’.

A FIX-Plus note is a structured investment product. It consists of a combination of a bond ('FIX') and an option ('Plus'). Capital protection products, which include FIX-Plus products, offer you a chance of returns, while also guaranteeing that you will get back all or part of the sun you initially invested when the product matures.

You’ll find more information about the features and risks in the product brochure Investing with protection via ‘FIX-Plus Notes’ and in the Q&A on ‘Capital protection products’. 

There are various risks involved with structured investment products. A general feature of structured investment products is that they have a limited term. As a result, if prices fall, you don’t usually have time to wait for the stock market to recover, as you would with a well-diversified share portfolio, for example. The level of risk you run with a structured product partly depends on the features of the structured product you choose. Does the product offer a certain degree of protection, and if so, what are the conditions? Does it use leverage? Leverage can generate extra returns, but can also cause extra losses in a poor market. Make sure that you are aware of the risks of a particular product before you start investing in any structured investment product. The product information for the structured investment product you are considering provides details of the risks relating to that product. Structured investment products can involve the following risks:

• Bail-in risk
• Price risk
• Credit risk or counterparty default risk
• Currency risk

If you invest independently with ABN AMRO, you can only invest in capital protection products through Self-directed Investing Plus. You can buy and sell capital protection products using the ABN AMRO app, Internet Banking, or My Dealingroom.

Learn how to place an order with the ABN AMRO app and Internet Banking

Discover the possibilities of My Dealingroom

Before you can invest in capital protection products with ABN AMRO, we ask that you first complete a knowledge test. You can take this test via Internet Banking, and you will receive an invitation for it when you apply for Self-directed Investing Plus with us. If you pass this test, you have sufficient knowledge to invest in capital protection products. If you do not pass, investing in capital protection products may not be suitable for you. In that case, you will not be able to place orders in capital protection products.