If the markets have been making you nervous lately, you’re not alone. From geopolitical shocks to election headlines, inflation worries, and talk of recession, volatility has become part of our daily financial backdrop. Many investors respond by sitting on the sidelines, but that can mean missing out on growth—and over time, missed growth can be just as risky as market losses.

So how do you stay invested without exposing yourself to every market swing? One approach lies in a category of investments known as structured products. Among them, Market-Linked Notes have been especially effective at balancing growth with protection.

At their core, market-linked notes are designed to offer the potential for equity-like returns while including defined downside protection. That combination makes them particularly appealing when uncertainty runs high.

Take one striking example: In 2020, Morgan Stanley released a market-linked note that offered 175% participation in stock market gains while protecting investors from the first 20% of losses. It wasn’t a theoretical promise—this note just matured at twice its original value. Investors who held on through three years of turbulence came out far ahead of where they started, with a smoother ride along the way.

And market-linked notes are just one type of structured product. Depending on your goals and risk profile, there are other tools worth knowing about:

• Principal-Protected Notes – safeguard your original investment while still offering growth potential, making them attractive for conservative investors

• Fixed-Rate Notes – provide reliable, predictable income regardless of what markets are doing

• Other customized notes – built around specific indices or strategies to tailor risk and return to an investor’s needs

What’s important here isn’t the jargon—it’s the principle. Structured products let investors stay engaged in the markets without taking on unbuffered exposure to volatility. They provide a defined framework for both risk and reward, something traditional stocks or bonds on their own cannot offer.

In times like these, when fear and headlines dominate the conversation, that framework can be invaluable. It creates space for growth while putting guardrails around risk—a way to invest not with less worry, but with more confidence.

If you’d like to learn more about whether structured products could fit into your portfolio, let’s connect. 

Disclaimer: This article is for informational purposes only and does not constitute investment, tax, or legal advice. Past performance is not a guarantee of future results. Investing involves risk, including possible loss of principal. Please consult with a qualified financial advisor before making investment decisions. Veda Financial and its advisors may hold positions in some of the securities or industries mentioned.