Finding a favorable entry point at the lowest possible price level is the unrealizable dream of all investors. Neither private investors nor professional market participants succeed in finding the ideal timing for an optimal entry.
The new HVB-Best in Express Plus certificate on the EuroStoxx50 index cannot offer this ideal scenario either. However, with this certificate there is the opportunity to enter the EuroStoxx50 index (ISIN: EU0009658145) at the most favorable time possible, which can be an undeniable advantage in the current volatile market phase.
This certificate is based on the general market assessment that the European benchmark index will increase – albeit only minimally – by the end of the term of four years and one month.
30% bonus chance
The lowest daily closing price of the EuroStoxx50 index during the best-in period (16.10.20 to 13.11.20) is set as the optimized starting value (best-in price) for the certificate. Therefore, a weak index development due to the lowest possible entry into the index in the first few weeks of the certificate’s term is definitely desirable for investors.
The further functioning of the certificate is easy to understand. If the EuroStoxx50 index is quoted at or above the starting value on the observation day, 11/13/24, the certificate will be repaid with 1,300 euros.
If the EuroStoxx50 index is below the starting value on November 13th, 24th, the certificate will be repaid with the actual negative index development in relation to the starting value. For example, if the index is 20 percent in the red in relation to the starting value in four years and one month, the certificate will be repaid at 80 percent of the issue price, etc.
The HVB-Best in Top certificate, due on November 20, 24, ISIN: DE000HVB4QG8, can be subscribed until October 15, 2020 in denominations of EUR 1,000 at 102 percent.
CertificateReport Conclusion: This certificate is suitable for investors with the market opinion that the EuroStoxx50 index could offer favorable entry opportunities in the best-in period. If the index development is positive, the certificate offers a gross return of 30 percent. In the event of a negative index development, investors will suffer the same loss as with a direct index investment.
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