Most of the money invested in a partially guaranteed structured retail product is primarily used to:

• A. Provide the bonus payable at maturity
• B. Pay the charges and taxes associated with the investment
• C. Pay commission to the introducing intermediary
• D. Provide the capital guarantee at maturity

Answer: (D)

The primary purpose of most of the money invested in a partially guaranteed structured retail product is to provide the capital guarantee at maturity. This aspect is crucial because such products often attract investors who seek a balance between potential investment returns and a level of safety for their initial capital. By ensuring that a portion of the capital is guaranteed, these products become attractive to risk-averse investors looking to preserve their investment while still being exposed to potential market gains.

In partially guaranteed structured products, the capital guarantee is typically designed to protect the investor's principal amount up to a certain limit or at maturity. This guarantees that, regardless of market fluctuations, the investor will at least recover their initial investment if they hold the product until its maturity.

While other components like bonuses, charges, and commissions are relevant in the overall structure of the product, they do not take precedence over the capital guarantee feature, which aligns directly with the primary concern of investors regarding the safety of their invested funds.