Protecting your capital

Capital protection products (Julius Baer's designation: Pro units) protect your capital investment and at the same time allow you to participate in the increasing price of a selected underlying security. The level of capital protection is determined by the maximum amount of the invested capital you can lose. It is standard practice to set the capital protection level at 100%, but you can also set it higher or lower.

Capital protection products – how they work

The defined capital protection is always guaranteed only at expiration. Similar to a fixed-interest investment, here interest rates have a considerable impact on the value of capital protection products.

Inform yourself not only about your product's level of capital protection but also about its participation rate. It determines to which extent you profit from any increase in the price of an underlying security. As a rule, a lower level of capital protection means a higher participation. If you have a firm opinion about the price development of the underlying security, you can additionally optimize the participation rate such as by building in a cap on possible gains (capital protection product with a cap).

Capital protection is the right investment solution if you

• have a low risk tolerance

• want to hedge yourself against price setbacks

• expect the underlying security to perform well and want to profit from it