Risk Disclosures

The value of investments rises and falls with market conditions, driven by economic data, interest rates, corporate results, government policy, global events and investor sentiment. These movements can be sharp and sustained, and can affect every product regardless of the quality of its management.

No portfolio manager, fund or distributor can guarantee returns or protect your capital unless a product expressly and lawfully provides for it. Past performance is not a reliable indicator of future results. Examples, illustrations and figures on our Website are provided for explanation only and are not projections or promises.

You may get back less than you invested, and in some cases you could lose your entire investment. Invest only money you can afford to commit for the full intended horizon of the product.

Many PMS strategies and AIFs hold a relatively small number of securities, or focus on a particular sector, theme or market-capitalisation segment. A setback in a single holding or sector can therefore have a much larger effect on your portfolio than it would on a broadly diversified fund.

Shares of smaller companies tend to be more volatile and less liquid than those of large companies. Their prices can fall further in a downturn, and it can be harder to sell them quickly without affecting the price.

You may not be able to exit an investment when you want to, or at the price you expect:

• Category I and II AIFs are closed-ended, typically with a tenure of several years, and generally do not allow early redemption.
• Lock-in periods and exit loads may restrict or penalise early withdrawal.
• Unlisted securities have no ready market, and there may be no buyer at a fair price.
• When a PMS account is closed, holdings may need to be sold in unfavourable conditions.

Many AIFs draw down committed capital in instalments over time, on notice. You must keep funds available to meet each call. Failing to do so can result in penalties, loss of rights or forfeiture of part of your investment, as set out in the fund’s documents.

Unlisted, private-equity, venture-capital and pre-IPO holdings are valued periodically using models, estimates and judgements rather than market prices. Reported values may lag, may be revised, and may differ significantly from the price that could actually be obtained on a sale.

A company may delay or abandon a planned listing, or list at a lower price than expected. Shares bought before a listing may be subject to a lock-in after it. Information about unlisted companies is often limited, and minority shareholders may have little influence over the company’s decisions.

Category III AIFs and some other strategies may use borrowing, derivatives and short-selling. These can magnify gains, but they also magnify losses, and losses can build up quickly in volatile markets.

Debt investments are exposed to the risk that an issuer delays or fails to make payments of interest or principal, and to changes in interest rates, which move the value of fixed-income securities in the opposite direction.

Returns depend heavily on the skill and judgement of the portfolio or fund manager. The departure of key people, a change in investment approach, or a strategy falling out of favour with the market can all affect performance.

GIFT City products are generally denominated in foreign currency, and non-resident investors may convert between rupees and other currencies when investing or withdrawing. Exchange-rate movements can increase or reduce your returns when measured in your home currency.

Laws, regulations and tax rules — including those that apply to AIFs, PMS and International Financial Services Centres — can change, sometimes with retrospective effect. Such changes can affect the returns, costs, structure or availability of a product. Tax outcomes also depend on your individual circumstances.

Investments depend on the systems and conduct of portfolio managers, funds, custodians, brokers, registrars and other service providers. Errors, system failures, fraud or the failure of any of these parties can cause losses or delays.

Online platforms, email and messaging services can be disrupted or compromised. Protect your devices and credentials, never share OTPs or passwords, and verify any unexpected request for money or information.

Our evaluation of products relies partly on information published by product providers and other third parties, such as factsheets and disclosures. That information may be incomplete, delayed or inaccurate. Our assessments are opinions formed in good faith, not guarantees of a product’s quality or future results.

IndiaHedgeFunds is paid by the product providers whose products it distributes, and the commission can differ between products and providers. This could create an incentive to favour one product over another. We manage this by disclosing our commission on every product in writing before you invest, by evaluating products independently, and by telling you when a product is available through a direct route.

These products are designed for investors who can accept a high degree of risk, limited liquidity and a long investment horizon. Consider how any investment fits within your overall financial position, diversify appropriately, and take independent professional advice if you are unsure.

By investing in a product through IndiaHedgeFunds, you confirm that you have read and understood these risk disclosures and the risk factors in the product’s offering documents, and that the investment decision is your own.