Aif Risk Disclosure

The fund seeks to invest in listed securities. Market price fluctuations in these securities are likely to have a direct impact on the value of the fund’s investments. Portfolio investments may be volatile due to a variety of inherently difficult to predict factors including but not limited to domestic and international economic or political developments.

While the fund strives for capital protection, this is not a principal protection fund. There is no assurance or guarantee of pay outs or returns.

The fund would invest in derivatives securities as a part of its strategy to deliver superior risk adjusted returns. Risk associated with investment in derivatives include but is not limited to - Derivative products are leveraged instruments and can provide disproportionate gains or losses to investors. There is a risk of substantial loss associated with trading in derivatives such as Futures, Options, and leveraged instrument. Investors should realise that when engaging in leverage, trading in Futures, and/or granting/writing options one could lose the full balance of their account. All funds committed should purely be risk capital. Before investing, please carefully consider your financial position and risk tolerance to determine if the proposed trading style is appropriate. Seek appropriate financial advice before investing in this Product.

An investment in the Fund involves certain risks that may not be associated with other investment vehicles. These risk factors are not meant to be an exhaustive list of all potential risks associated with an investment in the Fund:

Risks in relation to the Hedge Fund Strategies: Hedging strategies in general are usually intended to limit or reduce investment risk but can also be expected to limit or reduce the potential for profit. No assurance can be given that any hedging strategy will be successful, especially under changing market conditions or unforeseen economic events.

Portfolio Risk: The Fund will endeavour to have a fair degree of diversification in its asset type, diversifying by strategies with varying exit horizons. However, poor performance by even a few investments, due to circumstantial factors such as economic downturns or sector-specific challenges, could adversely affect the Fund’s overall returns. The fund may invest in fixed income securities which would have a risk of default and risk associated with changes in interest rate, credit risk and/or spreads. At times the fund’s investments may face liquidity risk including but not limited to restrictions in trading volumes, settlement periods and transfer procedures.

Market Risk: Stock markets are volatile and may decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. These circumstantial changes may include sudden geopolitical events, policy shifts, or macroeconomic instability. Other parameters that could impact it includes liquidity in securities, volume of transactions etc. Different parts of the market and securities may react differently to such developments.

Model Risk: The Investment Manager will select equities and equity-related securities using a quantitative selection process. This selection process involves the Investment Manager creating investment model by ranking and scoring equities and equity related securities based on various factors such as volatility, momentum, mean-reversion, fundamentals and market sentiment/momentum. Such an investment model may not be able to generate target returns and could lead to significant losses. Any change in the factors initially considered by the Investment Manager for constructing the models could have negative impact on NAV.

Management and Operational Risks: The Investment Manager shall manage the assets of the Fund and will take its investments and disinvestments decisions exclusively. The Contributors will not be able to make investment or other decisions in connection with the Fund. There can be no assurance that the Fund will achieve its investment objectives.

Other Risks: The cash assets of the fund, including subscriptions amounts paid to it by beneficiaries and money awaiting distributions will be held in bank accounts selected by the Fund using appropriate care and diligence. However, the solvency of such a bank is not guaranteed and upon insolvency of such a bank, all or part of the fund’s money may be lost.

Regulatory Risks: The fund’s investments may be subject to legal or regulatory changes. SEBI/RBI/Government of India may make changes to regulations that may affect the fund’s ability to employ or exit strategies.

Investors should note that the Portfolio Risk Management process includes an effort to monitor and manage risk but should not be confused with and does not imply low risk. Investors should carefully consider circumstantial factors that may influence market conditions and consult their financial advisors before making investment decisions.

Please refer to the PPM for detailed information on Risk Factors and Potential Conflicts of Interest. Past performance is no indication of future performance and no representation / warranty, express or implied is made regarding future performance. Securities investments are subject to market risk and is dependent on prevalent market factors, liquidity and credit conditions.

We do not represent that any information, including any third-party information, is accurate or complete and it should not be relied upon without proper investigation on the part of the investor(s).

Geojit Financial Services Limited (GFSL) or any of its director(s) or employees does not assure/give guarantee for any accuracy of any of the facts/interpretations in this document and shall not be liable to any person including the beneficiary for any claim or demand for damages or otherwise in relation to this opinion or its contents. All investors must read the detailed Private Placement Memorandum (PPM) including the Risk Factors and consult their financial/investment/tax advisors, before making any investment decision/contribution to AIF. Capitalised terms used herein shall have the meaning assigned to such terms in the PPM and other documents.