Risk

Risk Disclaimer

(a) Investments in securities are subject to market risks and includes price fluctuation risks. There is no assurances or guarantees that the objectives of any of the Schemes will be achieved. The investments may not be suited to all categories of investors.

(b) The past performance of the Portfolio Manager in any Scheme/option is not indicative of the future performance in the same Scheme/option or in any other scheme /option either existing or that may be offered. There is no assurance that past performances indicated in earlier Schemes/options will be repeated. Investors are not being offered any guaranteed or indicative returns through any of the Schemes.

(c) The names of the Schemes/option do not in any manner indicate their prospects or returns. The performance in the equity Schemes/options may be adversely affected by the performance of individual companies changes in the marketplace and industry specific and macroeconomic factors.

(d) Technology stocks and some of the investments in niche sectors run the risk of volatility, high valuation, obsolescence and low liquidity.

(e) Risk attached with the use of derivatives. The portfolio manager may use derivative products as may be permitted by SEBI from time to time. As and when the schemes trade in the derivatives market there are risk factors and issues concerning the use of derivatives that investors should understand. Derivative products are specialized instruments that require investment techniques and risk analyses different from those associated with stocks and bonds. The use of a derivative requires an understanding not only of the underlying instrument but also of the derivative itself. Derivatives require maintenance of adequate controls to monitor the transactions entered into, the ability to assess the risk that a derivative adds to the portfolio and other related capabilities. There is the possibility that a loss may be sustained by the portfolio as a result of the failure of another party (usually referred to as the “counterparty”) to comply with the terms of the derivatives contract. Other risks in using derivatives include market risk, valuation risk, liquidity risk and basis risk. Also, it is to be noted that the market for derivative instruments is nascent in India.

(f) In the case of stock lending, risks relate to the defaults from counterparties with regard to securities lent and the corporate benefits accruing thereon, inadequacy of the collateral and settlement risks. The Portfolio Manager is not responsible or liable for any loss resulting from the operations of the schemes/options .

(g) The Portfolio Manager may invest in the shares, units of mutual funds, debt, deposits and other financial instruments of group companies.

(h)Each portfolio will be exposed to various risks depending on the investment objective, investment strategy and the asset allocation. The investment objective, investment strategy and the asset allocation may differ from client to client. However, generally, highly concentrated portfolios with lesser number of stocks generally will be more volatile than a portfolio with a larger number of stocks. Portfolios with higher allocation to equities, will be subject to higher volatility than portfolios with low allocation to equities.

(i) Risk arising out of non-diversification, if any Diversified portfolios (allocated across companies and broad sectors) generally tend to be less volatile than non-diversified portfolios.

(j) The Portfolio Manager has previous experience / track record of about one year since August 2004 in providing Portfolio Management Services by virtue of having commenced its activities after obtaining no-objection from the SEBI – Investment Management Department vide letter no. IMD/PSP/17209/2004 dated August 5, 2004.