Risk Disclosure Statement

Important information about investment risks as required by SEBI regulations

SEBI Risk Disclosure

"Investment in securities market are subject to market risks. Read all the related documents carefully before investing."

This Risk Disclosure Statement is provided in compliance with SEBI (Investment Advisers) Regulations, 2013.

General Risk Warning

All investments in securities and financial instruments carry inherent risks. The value of investments can go down as well as up, and you may lose some or all of your invested capital. Past performance is not a guarantee of future results.

Key Points to Remember:

  • • No investment is risk-free, including government securities
  • • Higher return potential typically comes with higher risk
  • • Diversification can help but cannot eliminate all risks
  • • Your risk tolerance should match your investment choices
  • • Regular review and rebalancing of portfolio is essential

Types of Investment Risks

Market Risk

Risk of losses due to movements in market prices of securities

  • Stock prices can be volatile and unpredictable
  • Market conditions can change rapidly due to economic factors
  • Political events and policy changes can impact markets
  • Global events can cause sudden market movements
  • Sector-specific developments can affect related stocks

Liquidity Risk

Risk of not being able to buy or sell securities quickly at fair prices

  • Small and mid-cap stocks may have limited trading volumes
  • During market stress, liquidity can dry up quickly
  • Some securities may not find buyers when you want to sell
  • Wide bid-ask spreads can impact transaction costs
  • Lock-in periods in certain investment products

Credit Risk

Risk of loss due to failure of issuer to meet financial obligations

  • Corporate bonds carry risk of default by the issuer
  • Rating downgrades can affect bond prices negatively
  • Financial health of companies can deteriorate over time
  • Economic downturns can increase default rates
  • Recovery rates on defaulted securities may be low

Interest Rate Risk

Risk arising from changes in interest rates affecting security values

  • Bond prices move inversely to interest rate changes
  • Rising rates can make existing bonds less attractive
  • Duration risk affects long-term bonds more than short-term
  • Rate-sensitive sectors can be significantly impacted
  • Reinvestment risk when rates fall

Currency Risk

Risk from fluctuations in foreign exchange rates

  • International investments subject to currency movements
  • Rupee appreciation/depreciation affects returns
  • Hedging may not always be cost-effective
  • Economic policies can drive currency volatility
  • Global trade dynamics impact exchange rates

Concentration Risk

Risk arising from lack of diversification in investments

  • Over-concentration in single stocks or sectors
  • Geographic concentration can amplify regional risks
  • Style bias (growth/value) can lead to concentrated exposure
  • Large positions in few securities increase portfolio risk
  • Correlation between holdings can reduce diversification benefits

Asset Class Specific Risks

Equity Investments

  • Price volatility can result in significant losses
  • Dividend payments are not guaranteed
  • Company-specific risks can affect individual stocks
  • Sector rotation can impact performance
  • Regulatory changes can affect specific industries

Debt Investments

  • Interest rate changes affect bond prices
  • Credit rating downgrades can reduce bond values
  • Inflation can erode real returns
  • Reinvestment risk when coupons are received
  • Call risk in callable bonds

Mutual Funds

  • NAV fluctuations based on underlying securities
  • Fund manager risk and style drift
  • Expense ratios can impact net returns
  • Exit loads may apply for early redemptions
  • Tracking error in index funds

Small & Mid Cap Stocks

  • Higher volatility compared to large cap stocks
  • Limited liquidity and higher impact costs
  • Greater business and financial risks
  • Less institutional research coverage
  • Higher susceptibility to market sentiment

Risk Management Strategies

Diversification

Spread investments across different asset classes, sectors, and securities to reduce concentration risk.

Time Horizon

Longer investment periods can help ride out short-term volatility and benefit from compounding.

Risk Assessment

Regular evaluation of risk tolerance and adjustment of portfolio accordingly is crucial.

Important Disclaimers

Advisory Limitations

Our investment advice is based on information available at the time and our analysis. Market conditions can change rapidly, and past performance does not guarantee future results.

Client Responsibility

Final investment decisions rest with the client. Clients should consider their financial situation, risk tolerance, and investment objectives before making any investment decisions.

Regulatory Compliance

Plus91 Research is a SEBI Registered Investment Advisor. This disclosure is provided in compliance with SEBI regulations for investor protection and awareness.

Questions About Investment Risks?

Our team is available to discuss investment risks and help you understand how they may apply to your specific situation.

This risk disclosure was last updated on October 10, 2025