Swiss Capital Protection Multi Basket (Swissquote)

What do you think about this offer from Swissquote?

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If you believe the market will go up in the next 4 years, don’t buy it because you will make less money.

If you believe the market will be down in 4 years, then keep your cash, because it will be the same at the end, except if a big crash occurs in less than 4 years, then you can use your cash to buy shares at a lower price.

And of course, why these companies (same question with every structured product)

This product looks extra stupid compared to barriere reverse convertibles which I wouldn’t buy anyway, but makes sense in a way


This kind of product might be an option for someone who has cash but doesn’t want to take risk in the stock market. For example because the cash is for a future house purchase.

If I understand the term sheet the return is capped at 18% after 4 years before tax (max 4.2% p.a. ). Most of the upside potential of stocks is sacrificed in return for keeping your starting capital but if your next best alternative is keeping cash at the bank at <1% interest it does not look awful

Important to know you are exposed to credit risk of the issuer (if Swissquote bank SA goes bust you likely lose your money without any protection from the government)

In the special mail from Swissquote:

“Nestlé, Novartis, Roche, Swiss Re and Zurich Insurance”!?
I see Baloise, Swiss Life, Swiss Re, Zurich Insurance

“A potential bonus of up to 90.00% of the bullish performance up to 120%.”
As I understand, if the gain is 40% after 4 years, I receive +36%?

“However, you can close your position at any time”
What happen if I sell after 2 years and the performance is -20%?

“So simple that you’d think it’s impossible” :smile:

As I understand it, selling before the final fixing/redemption date would be selling on the secondary market. I.e. you get whatever someone else is willing to pay for it, no guarantees. They do mention “Daily price indications will be available” but I don’t know how they will calculate the indicated price.

Not a performance of 120%. It is maximum 20%. So if it goes up 40%, you get 20%

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Wouldn’t you get 18%? 90% participation of 20% cap.

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