What Is Ppn in Finance

Overview. Principal Protected Notes (PPNs) are products which guarantee a full return of their principal amount at maturity, while providing the opportunity to benefit from the performance of equity markets. Conservative investors who seek equity market exposure but have low risk tolerance are well suited to PPNs.

What does PPN stand for in finance?

A principal protected note (PPN) is a structured finance product that guarantees a rate of return of at least the principal amount invested, as long as the note is held to maturity.

Are principal protected notes a good investment?

Lower risk – PPNs are marketed as a safe investment for investors who want to invest in the markets but don’t want to risk losing money. Guaranteed principal – PPNs will pay back at least your principal amount at maturity. Regular income – Some PPNs make regular payments before the maturity date.