Conversation Guide Structured Investment  ·  Step Down EKI  ·  9–12 Month Tenor
Structured Investment · Step Down EKI

The target comes down to meet you.

The knock-out barrier drops each month, so even a falling stock can still trigger a successful early exit. Monthly coupons are paid along the way.

Underlying Single stock · Quanto MYR Tenor 9–12 months Minimum RM 50,000
Typical Coupon
10–16%
p.a., paid monthly
Tenor
9–12 mo
Auto-callable
Principal
At risk
Capital at risk
Key Feature
KO steps down
Target comes to you
Section01The idea

Imagine jumping over a bar.

In a normal investment, the bar stays at the same height throughout. With a Step Down EKI, the bar drops each month. Even if the stock can't jump very high, the target comes down to a height it can clear.

"Step Down" means the exit target decreases each month. Even if the stock price drops, the target drops faster — giving more chances to exit with profit. Unlike Bullet EKI (which pays everything at the end), Step Down pays a monthly coupon — regular income you can count on.

The big idea: In Bullet EKI you chase the stock. In Step Down, the target comes down to meet you. The longer you wait, the easier it gets to exit.

Section02The staircase

The KO barrier drops 3% every month.

By Month 9 the stock only needs to be at 81% — 19% below where it started — to trigger a successful KO exit.

KO barrier pathSteps down each month from 105% → 81%
110% 105% 100% 90% 81% 70% M1 M2 M3 M4 M5 M6 M7 M8 M9 KI 70% Start 105% 102% 99% 96% 93% 90% 87% 84% 81% Safe Zone Danger Zone (below KI)

Key insight. The bronze staircase is the KO barrier — it drops 3% every month. The stock can fall 19% from its starting price and still trigger a successful early exit with full principal plus all coupons earned to that point.

Section03Mechanics

How you earn — step by step.

01Invest

Lock in the trade.

Invest RM 100,000 linked to a single stock (e.g. NVDA) at today's market price (the starting price). Minimum RM 50,000.

02Step

The barrier drops each month.

M1: 105%. M2: 102%. M3: 99%. M4: 96%. By M9: 81%. Each month the target gets easier to reach.

03Coupon

Monthly income.

Receive ~RM 1,133 per month (13.6% p.a. ÷ 12). This income is yours regardless of what happens next.

04KO

The exit.

On any month, if the stock closes at or above the prevailing KO barrier, you exit early — full RM 100,000 returned plus all coupons collected.

05KI

The downside.

If the stock drops below 70% at maturity and no KO has triggered, you may receive shares instead of cash. Coupons already banked remain yours.

Section04Real numbers

Your returns, six scenarios.

RM 100,000 · 13.60% p.a. coupon · 9-month tenor · KO starts at 105%, steps down 3%/month · KI 70%. Monthly coupon ≈ RM 1,133.

ScenarioStock levelKO barrierYou receiveIncome
KO Month 1 — stock surged≥ 105%105%RM 100K + RM 1,133RM 1,133
KO Month 3 — modest gain≥ 99%99%RM 100K + RM 3,400RM 3,400
KO Month 5 — stock dropped 7%≥ 93%93%RM 100K + RM 5,667RM 5,667
KO Month 9 — stock dropped 19%≥ 81%81%RM 100K + RM 10,200RM 10,200
No KO, no KI70–81%—RM 100K + RM 10,200RM 10,200
KI triggered< 70% (e.g. 55%)—~RM 55K in sharesCoupons kept

Did you notice? In the Month 9 scenario, the stock dropped 19% from its starting price — yet you still exit with the full RM 100,000 plus RM 10,200 in coupons. That is the power of the Step Down barrier.

Section05Versus FD

Why not just hold a fixed deposit?

Fixed Deposit · 12 months
3–5%

Nominal return before inflation, PIDM-protected up to RM 250,000. No upside; renewal rate depends on future OPR.

vs
Step Down EKI · 9–12 months
10–16%

Monthly coupons paid throughout. KO target drops 3%/month — even a 19% stock decline can exit with full principal plus all coupons earned.

Section06vs Bullet EKI

Step Down versus Bullet EKI.

The trade-off: Step Down gives more safety and monthly income in exchange for a slightly lower coupon rate.

Bullet EKIStep Down EKI
KO barrierFixed at 105% alwaysSteps down 105% → 81%
Coupon paymentLump sum at exitMonthly income
Exit probabilityLowerHigher — target comes to you
Coupon rateHigher (12–18%)Moderate (10–16%)
Risk levelHigherLower
Best forStrong bullsCautious optimists
Section07Risk management

How the risk is managed.

Built-in defenses

Step-down barrier.The primary safety feature — target drops 3% every month. By M9 the stock can be 19% below starting price and still exit.
Lower strike option.If structured with 80% initial strike, the KI danger zone is pushed further from the starting price.
Monthly coupon.Income banked along the way — even if it ends badly, some coupons are already collected.
Short tenor.9–12 months limits exposure to extreme adverse moves.
Memory KO.Each stock checked independently. A stock that previously failed gets another chance each month.
Quanto feature.Even if linked stocks trade in USD, payout is always in Ringgit.

What can still go wrong

Principal not protected.You can lose money. This is not a fixed deposit.
KI — share delivery.If stock drops below 70% at maturity, you receive shares valued at the original strike. Those shares may continue to fall.
Monthly coupon offsets but doesn't eliminate risk.Some income banked — but does not eliminate capital loss risk.
Basket risk.If linked to multiple stocks, the worst performer alone determines the outcome.
Not PIDM protected.Backed by issuer credit, not government guarantee.
Section08Suitability

Who this is for.

Good fit

Likes equity returns; wants more safety than Bullet EKI.
Prefers monthly income over lump sum.
Moderate-to-high risk appetite.
Can afford potential capital loss.
Has other liquid savings as backup.

Not suitable

Conservative investors.
Cannot afford any loss.
Treating as emergency fund or cash reserve.
Unfamiliar with stock markets.
Capital preservation as top priority.
Section09Questions

Common questions answered.

How is this safer than Bullet EKI?
The KO barrier drops 3% every month. By Month 9 the stock only needs to be at 81% — it can have fallen 19% and you still exit with full principal plus all coupons earned. Bullet EKI keeps the barrier at 105% throughout.
What happens to monthly coupons if KI triggers?
You keep all coupons already paid. They are yours the moment they are credited. If KI triggers later, those payments remain in your account — what is lost is the cash principal.
Can the stock drop 20% and I still profit?
Yes — by Month 9 the KO barrier has stepped to 81%. If the stock is at 81% or above (a 19% drop), the product auto-exits and you receive full RM 100,000 plus 9 months of coupons (RM 10,200 at 13.60% p.a.).
What stocks are available?
Your relationship manager presents current offerings with pre-selected global stocks based on market conditions. You choose from the available options based on comfort and market view.

For general information and educational purposes only. Not investment advice. Not a capital-protected product and not covered under PIDM. Past performance is not indicative of future results. Please consult your relationship manager for full product details and suitability assessment.

Conversation GuideStructured Investment · Step Down EKI · 9–12 Month Tenor
Structured Investment · Step Down EKI

The target comes down to meet you.

The knock-out barrier drops 3% each month — even a falling stock can still trigger a successful early exit. Monthly coupons paid along the way.

Coupon
10–16%
p.a., paid monthly
Tenor
9–12 mo
Auto-callable
KO range
105% → 81%
Drops 3%/month
KI barrier
70%
Final date only

01.The big idea

  • Step-down barrier. The KO target drops 3% every month — by Month 9 it has stepped from 105% down to 81%.
  • Monthly coupon. Coupon paid every month regardless of KO/KI outcome.
  • Single-stock or basket. Linked to one stock (e.g. NVDA) or a basket of global names.
  • Quanto MYR settlement. No FX risk even if stocks trade in USD.
  • Tenor 9–12 months. Minimum RM 50,000.

02.The KO staircase

KO barrier drops 3% per month
Month 1105% — stock must rise to exit
Month 399% — stock can be below strike
Month 593% — stock can be 7% below strike
Month 787% — stock can be 13% below strike
Month 981% — stock can be 19% below strike

03.How it works — five steps

  • 1 · Invest. RM 100,000 linked to a stock at today's price. Min RM 50,000.
  • 2 · Step. Each month the KO barrier drops 3%. Target gets easier.
  • 3 · Coupon. Receive ~RM 1,133/month at 13.6% p.a. ÷ 12. Banked the moment it's paid.
  • 4 · KO. Stock closes ≥ KO on any month → exit, principal + all coupons returned.
  • 5 · KI. If no KO and stock < 70% at maturity, receive shares not cash. Coupons kept.

04.Six scenarios · RM 100,000 invested

ScenarioStock levelKO barrierTotal receivedCoupons
KO Month 1 — stock surged≥ 105%105%RM 101,133RM 1,133
KO Month 3 — modest gain≥ 99%99%RM 103,400RM 3,400
KO Month 5 — stock dropped 7%≥ 93%93%RM 105,667RM 5,667
KO Month 9 — stock dropped 19%≥ 81%81%RM 110,200RM 10,200
No KO, no KI70–81%—RM 110,200RM 10,200
KI triggeredStock at 55%—~RM 55K in sharesCoupons kept

05.vs Fixed Deposit · 12 months

  • FD. 3–5% guaranteed. PIDM-protected to RM 250k. No upside.
  • Step Down EKI. 10–16% p.a. monthly. KO target drops 3%/month — even 19% stock decline can still exit with full principal + coupons.
Page 1 / 2Step Down EKI · Conversation Guide
Conversation GuideStructured Investment · Step Down EKI · continued

06.vs Bullet EKI

Bullet EKIStep Down EKI
KO barrierFixed at 105% alwaysSteps down 105% → 81%
Coupon paymentLump sum at exitMonthly income
Exit probabilityLowerHigher — target comes to you
Coupon rateHigher (12–18%)Moderate (10–16%)
Best forStrong bullsCautious optimists

07.How risk is managed & what can still go wrong

Built-in defenses

  • Step-down barrier. Target drops 3%/month.
  • Lower strike option. Pushes KI further away.
  • Monthly coupon. Income banked along the way.
  • Short tenor 9–12mo. Limits exposure.
  • Memory KO. Each stock checked independently.

What can still go wrong

  • Principal not protected.
  • KI share delivery. Below 70% → shares at strike, may fall further.
  • Basket risk. Worst stock alone determines outcome.
  • Not PIDM. Issuer credit risk.
  • Coupon offsets but doesn't eliminate.

08.Who this is for

Good fit

  • Likes equity returns, wants more safety than Bullet EKI.
  • Prefers monthly income over lump sum.
  • Moderate-to-high risk appetite.
  • Can afford potential capital loss.
  • Has other liquid savings as backup.

Not suitable

  • Conservative investors.
  • Cannot afford any loss.
  • Treating as emergency fund.
  • Unfamiliar with stock markets.
  • Capital preservation top priority.

09.Common questions

  • Why is this safer than Bullet? KO drops 3%/month. By M9 stock can be at 81% — 19% drop — and still exit.
  • What if KI triggers? All coupons already received remain yours. You receive shares of worst stock at strike instead of cash.
  • Stock drops 20% — can I still profit? Yes if at M9 stock ≥ 81%. Full principal + RM 10,200 coupons.
  • What stocks are available? RM presents current pre-selected global stocks based on market conditions.
For general information and educational purposes only. Not investment advice. Not a capital-protected product and not covered under PIDM. Past performance is not indicative of future results. Please consult your relationship manager for full product details and suitability assessment.
Page 2 / 2Step Down EKI · Conversation Guide