Rabobank Certs Series 1

Here are the key features of this investment, as reported in their advertisement:

* the certificates are NOT principal protected

* four blue chip Singapore companies are listed as the underlying shares

* if, on the valuation date, the price of at least one of the underlying shares is below 88% of its launch price, the investor may sustain a partial or total loss of its investment

* the certificate performs best when the share price is between 88% and 95% of the launch price during the entire life of the certificate

* investor will receive the maximum return of 20% if a Knock-out Event has not occurred, the closing price of each underlying share is above 88% of its launch price at each quarterly valuation date, and the certificate has not been terminated earlier.

* the certificate is subject to early termination if the closing price of each underlying share is above its Knock-out level at the quarterly date.

To understand how this product works, the investor is required to read the prospectus.

I cannot understand the logic of this product. There are so many uncertainties. It is not worthwhile for me to figure out this complexity.

Lesson: Do not invest in any complicated product that you do not understand. You do not know if the terms are fair to the investor.