Sir, request you to post the below post as I do not have rights to start a new post..
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Capital Protected Structured Products

Such products are being offered by many of the securities houses - but from an investors (not trader) perspective, what is the role of capital protected structured products in a portfolio?

In my view, debt has three major functions for a value investor -
(a) safety cache in the event of some personal emergency
(b) cash to buy heavily when the market falls
(c) To ensure you are not wiped out in case you have made some unlucky/bad equity choices

Structured products, esp those with capital protection, fall in a category between equity and debt.
The benefits of these products are that:
(a) they may provide equity like returns (above 15% p.a.) (b) while limiting the downside risk by assuring 100% of your principal is protected

The negatives include
(a) locking in of capital for the term of the product (may be 3-5 years)
(b) The returns are usually capped, so there is an opportunity cost vs. equities
(c) There is some default risk associated with the issuer (after what happened in 2008, no one is too big to fail)

Any views on how these might fit in a value investor's mindset and portfolio...

In the past "Capital Protected" products have not given any great returns, in the international markets (Same rule must apply to Indian markets also)