A financial product that is designed to allow the holder/ investor to participate in (i.e., get an advantage of) the performance of an asset or basket of assets. This is reflected in the so-called participation or participation rate, representing a fixed or predetermined percentage (participation or participation rate) by which any increase in the underlying asset/ basket/ index is multiplied. In the case of a structured product, the performance consists of a minimum fixed return in addition to a “participatory” rate of return (calculated by multiplying any increase in the underlying basket/ index by the participation rate).

For example, a typical  structured product may be designed to offer a minimum 100% return of capital (capital protection) at maturity, plus 70% of any increase (i.e., the participation rate) in a given stock market index. So if the index moved up by 50% over the period, then the investor would receive back the capital in full plus an additional return of 35% (i.e., 70% of 50%).

The main examples of participation products include tracker certificates, twin-win certificates, outperformance certificates, and bonus certificates.