Skip to main content

Certificates in general



Certificates are a combination of fixed income financial instruments and derivatives. They were created as a result of customer demand for products that will simultaneously: 

a) protect invested assets from loss (in whole or in part) and

b) enable participation in the capital market with the possibility of gain when the market is growing.

For example, by investing in deposits, T-bills or government bonds (and holding them until maturity), a predefined interest rate, or yield, is earned. Depending on the duration, this yield is most often around or below the inflation rate. However, investing in deposits, T-bills or government bonds offers a security role, the investment does not lose its nominal value, so investors "sleep peacefully".

On the other hand, investing in investment funds and equties assumes the possibility of a decline in value as well as the possibility of an increase in value => sometimes losses, but also gains, can be significant, so the fear of a loss (almost large) is a justified reason not to invest in funds and shares, just as high profits are justified reasons for investing in funds and shares.

Therefore, certificates as a combination of fixed income securities and derivatives simultaneously enable a) a security role (full or partial protection of the principal), b) exposure to risky and more volatile instruments (stock index, equties, commodities) under c) predefined conditions for d) a specific period.

Unlike equties, certificates do not give a share in the ownership of a company or the right to dividend payments. Unlike bonds, certificates do not offer the payment of a predetermined interest, but only specify in advance the conditions under which a certain action will be carried out.





You can contract the service with your Relationship Manager.