Political, Economic and/or related risks

Equities as an asset class carries a higher risk in comparison to debt. While risk cannot be totally eliminated, it can be mitigated through a well-diversified investment approach. The portfolio managed by the Investment Manger seeks to mitigate risk and deliver superior returns through research-based investing. However, this objective may not be fully achieved due to various reasons such as unfavorable market movements, misjudgment by portfolio manager, adverse political or economic developments, etc. The AIF is run with an objective to achieve reasonable returns consistently. Given this background, the investor investing in the fund faces the following risks:

The asset value of the portfolio and the liquidity of the shares may be affected by changes in government policy, taxation, interest rates, social and religious instability and political, economic or other developments in or affecting India.

Industry Risk

The value of shares of companies in a particular industry may be affected due to factors affecting the industry like changes in government policy on duties, FDI or a foreign country, which is a big market for the industry, may impose restrictions on import, etc.

The Indian Securities Market Risk

The Indian stock markets in the past experiences substantial price volatility and no assurance can be given that such volatility will not occur in future. Actual market trend may be in variance with anticipated trends, hence, the decisions of the Investment Manager may not be always profitable

Liquidity Risk

Some stocks that the investor might be invested in, might not be highly liquid. Though it will Investment Manger’s endeavor to restrict investments in less liquid stocks to a lower limit, there is an exposure of liquidity risk to the investor