What typically constitutes a structured product?

Structured products are financial instruments that typically combine a debt instrument with one or more derivatives. This combination allows investors to gain exposure to a particular underlying asset or market while also tailoring the risk and return profile of the investment.

In this context, the debt instrument provides a baseline level of return, often in the form of capital protection or fixed income components, while the derivative component adds the potential for higher returns linked to the performance of an asset, index, or other financial metrics. Therefore, the combination of these elements meets the definition of structured products, which are designed to address specific investment needs and market views.

The other options listed do not fulfill the criteria for a structured product. A capital investment and a mutual fund do not inherently include the combination of debt and derivatives. A single stock and a bond are standard securities but do not form a structured product on their own. Finally, a commodity and a real estate asset are distinct types of investments and do not encompass the integration of debt and derivatives typically seen in structured products.