Despite markets rebounding once again in recent months, many investors remain nervous. As a result, they might look for ways to limit losses in their portfolios should markets turn once more. Capital-protected structured products are one way to achieve this. They can be added to a broader portfolio to help limit downside exposure while retaining some upside potential. But what different types of capital protection are available and at what cost?

As the name suggests, capital protection-oriented schemes are instruments that aim to protect at least the initial investment, along with an opportunity to make additional gains, as per the investment objectives of the fund. However, it is important to note that there are no guaranteed returns or guaranteed capital protection?