FRNID & NID-i are deposits with fixed tenures and returns linked to the performance of an underlying asset – that may be equities, bonds, commodities, foreign exchange, indices or combination of assets.
In order to protect the initial principal, a large portion of the invested amount is used to buy negotiable instruments of deposits (NID) which should give back 100% at maturity. The balance is used to purchase a financial instrument (i.e. option) that tracks the performance of the underlying investment idea to provide the potential extra payoff at maturity.
WARNING: THIS PRODUCT IS NOT PRINCIPAL GUARANTEED. CUSTOMER MAY LOSE PART OR ALL OF THE INITIAL DEPOSIT. THE RETURNS ON THIS PRODUCT ARE UNCERTAIN AND CUSTOMERS RISKS EARNING NO RETURNS AT ALL. THIS PRODUCT IS NOT COVERED BY PERBADANAN INSURANS DEPOSIT MALAYSIA (PIDM).