| Index-linked bond |
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An index-linked bond is a capital protected investment product that combines security with potential growth.
The most common type of index-linked bond is an equity index-linked bond, giving a participation to an equity index. But there are also other types of index-linked bonds giving participation to i.e. commodities, currencies, bonds, hedge funds, strategies or portfolios.
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Rising underlying |
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Rising volatility |
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Sharply falling underlying possible |
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| Properties |
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Minimum redemption at expiry equivalent to the capital protection |
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Capital protection is defined as a percentage of the nominal (e.g. 100%) |
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Capital protection refers to the nominal only, and not to the purchase price |
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Value of the product may fall below its capital protection during the lifetime |
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Unlimited participation in a positive performance of the underlying |
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Any payouts attributable to the underlying are used in favour of the strategy |
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| If you want to learn more about this instrument, you can do it at www.ndx.se/education/. |
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