Are you interested in certificates? We have a comparison tool that gives you a good overview of the Austrian market and explains the most popular categories of certificates.
What is a certificate?
A certificate is a bearer bond. By purchasing the certificate you lend money to the issuer. How high the redemption amount is depends on the performance
of the underlying asset, which forms the certificate. You do not invest your money directly in the underlying asset, but instead indirectly participate in its performance.
Underlying asset
Certificates are frequently related to the performances of shares or indices, but funds, commodities, currencies or interest rates may able be underlyings.
What can the Zertifikate Lupe do?
- You can obtain a general overview of the market, and find out how many and which Austrian banks issue certificates.
- Using the search function you can also set filters to sort individual categories of certificates in terms of their risk, costs and performance.
- You can upload a specific key information document (PRIIPs KID) about a certificate and see how it compares to the market as a whole. You can see what the costs of the specific certificate as well its estimated risk and performance compared against other certificates.
- Simple and clear graphs show the results in a transparent manner.
Issuer
issues securities, for example shares, bonds, certificates or other financial products.
PRIIPs
stands for “Packaged Retail and Insurance-based Investment Products” thereby covering packaged (i.e. complex and on occasion difficult to understand) investment and insurance products for retail clients (“retail investors”).
What does the Zertifikate Lupe specifically show?
Costs
In the case of certificates denominated in euro, the product costs are shown both in euro as well as in percentage terms (the percentage by which they reduce potential returns). The calculation assumes an investment of € 10,000 with average estimated performance.
Risk indicator
The risk indicator is on a scale of 1 to 7, with 1 denoting very low risk and 7 very high risk. It comprises of the product’s market risk as well as the issuer’s credit risk. Calculations assume that you will hold the product until maturity.
Performance description
Future performance is estimated based on past performance of the product or the underlying asset. To provide a broader overview, various scenarios are shown – ranging from optimistic to pessimistic. A fictitious initial investment of € 10,000 is assumed for the purposes of the calculations.
Where can I find the Zertifikate Lupe?
Our interactive information and comparison tool can be found (in German only) at: www.fma.gv.at/geldanlage/zertifikate-lupe
Other editions
A to Z of Finance
Further information about investing money can be found on our website at:
www.fma.gv.at/en > A to Z of Finance > Investments