Risk Factors

Risk Factors Associated with Investing Through Distributors of Portfolio Management Services (PMS), Alternative investment funds (AIF’s) and Mutual Funds (( MF ) ( Including Specialized Investment Funds (SIFs).)

Risk Factors Associated with Portfolio Management Services (PMS), Alternative investment funds (AIF’s) and Mutual Funds (( MF ) ( Including Specialized Investment Funds (SIFs)) Investments

Investing through Portfolio Management Services (PMS), Alternative investment funds (AIF’s) and Mutual Funds (( MF ) ( Including Specialized Investment Funds (SIFs)) involves certain risks, and investors are advised to read and understand all the Individual Instruments, study the Scheme Information document, Private Placement Memorandum, Offer and disclosure and related document, disclaimers and consult their financial advisor before acting or investing in it. Past Performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding scheme performance.

Some key risks include:

  • Market Risk: The value of investments may rise or fall due to changes in overall market conditions.
  • Liquidity Risk: Some securities may not be easily traded in the market, which can affect timely redemptions. In case of AIF’s and depending on the category, investments will be made in unlisted securities and hence exit of the same will depend on the circumstances of the market, company performance and demand for such company’s securities, which can be uncertain.
  • Credit Risk: In debt-oriented funds, there is a risk that the issuer of a bond or instrument may default in payment of interest or principal.
  • Interest Rate Risk: Debt fund values are sensitive to interest rate changes. Rising interest rates may negatively impact returns.
  • Inflation Risk: Over time, inflation may reduce the real value of your investment returns.
  • Managerial Risk: Each Individual instruments performance depends on the decisions of the fund manager. Incorrect calls or strategy may lead to underperformance.
  • Scheme-Specific Risks: All Instruments and schemes mentioned above carry unique risks. Investors are advised to read the Scheme Information Document (SID), Private Placement Memorandum, Offer and disclosure and related document and disclaimers before investing.

Note: All investments including Portfolio Management Services (PMS), Alternative investment funds (AIF’s) and Mutual Funds (( MF ) ( Including Specialized Investment Funds (SIFs)) and Securities are subject to market risk and other risks and there is no assurance or guarantee that the objectives of the Fund Manager / Portfolio Manager / Investment Manager / Individual Schemes will be achieved. Investors are informed to read and understand the Individual Instruments, study the Scheme Information document, Private Placement Memorandum, Offer and disclosure and related document, disclaimers and consult their financial advisor before acting or investing in it. Past Performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding scheme performance.