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Investing in structured products provides a prepackaged investment that normally includes a combination of assets linked to interest and a derivative. Generally, these plans are linked to a basket of securities and are designed to facilitate highly customized risk-return objectives.

By replacing traditional securities such as an investment-grade bond with non-traditional payoffs, these products may be able to stretch traditional securities.

In some structured products, the principal is guaranteed and the returns are provided at maturity. The risks associated with structured products can be fairly complex—they may not be insured by the FDIC and they tend to lack liquidity.