Although I never bought such a certificate, my work environment is such that i am quite familiar with them. Which kind of BRC do you have in mind? on a single stock? on an index? on multiple underlyings?
- if it is on an index, i would not expect more than 2-3% of coupon
- if it is on a basket of stocks, your final performance is often tied to the worst performer of the basket, not the average, so beware
The bid-ask spread is often high on these products, and the issuers and distributors of such product often have a commission that is included in the price.
For instance, you have a product that is worth 98CHF:
- the issuer will take a 1CHF commission
- the distributor will take as well 1 or 2 CHF commission
Now the mid price is 101 CHF. Add the bid-ask spread and you get an idea of all the fees middle men are getting.
On the other hand, the coupon received is not considered as taxable income in Switzerland…