The Indian Economic Transformation Portfolio

Risk associated with the Investment Approach

1. Since the Portfolio also seeks to invest in mid-cap and small-cap stocks, it is riskier than large-cap portfolio that invest mostly in large companies. In a robust economic environment, the Portfolio Manager managing a multi-cap approach can increase his exposure to mid and small-sized companies to benefit from earnings. The Portfolio Manager can also choose to move investor money from shares of mid-cap companies to large-cap companies to take a shelter when it expects prolonged down periods. Hence investors may expect volatility in this investment approach.
2. The Portfolio may have some exposure to midcap, small cap & micro-cap stocks which tend to be relatively more illiquid and volatile vis-a-vis large cap stocks. To extent of such exposure, the Portfolio in a falling market for a short period of time will tend to be highly volatile.
3. Thematic portfolios can concentrate portfolio risks more as compared to open ended equity diversified funds. There is inherent risk of entire returns of the theme getting realised beyond the maturity date of the Portfolio. Thematic portfolio entail tracking a plethora of domestic and international triggers that could bring the theme in danger.

Kindly refer to the Disclosure Document for detailed statement on risks associated with the Investment Approach and Other Risks.

Disclaimer

The views expressed herein constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. This information is meant for general reading purposes only and is not meant to serve as a professional guide for the readers. Certain factual and statistical (both historical and projected) industry and market data and other information was obtained by Nippon Life India Asset Management Limited (NAM India) (Formely known as Reliance Nippon Life Asset Management Limited (RNAM)) from independent, third-party sources that it deems to be reliable, some of which have been cited above. However, NAM India has not independently verified any of such data or other information, or the reasonableness of the assumptions upon which such data and other information was based, and there can be no assurance as to the accuracy of such data and other information. Further, many of the statements and assertions contained in these materials reflect the belief of NAM India, which belief may be based in whole or in part on such data and other information.

NAM India or any of its respective directors, employees, affiliates or representatives do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and opinions given fair and reasonable. This information is not intended to be an offer or solicitation for the purchase or sale of any financial product or instrument. Recipients of this information should rely on information/data arising out of their own investigations. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investments. NAM India or any of its directors, employees, affiliates or representatives shall not be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from the information contained in this material.

NAM India or any of its directors, employees including the fund managers, affiliates, representatives including persons involved in the preparation or issuance of this material may from time to time, have long or short positions in, and buy or sell the securities thereof, of company(ies) / specific economic sectors mentioned herein.

Investments in securities are subject to market risks. There are no assurances or guarantees that the objectives of any of the Products will be achieved. The investments may not be suited to all categories of investors. The value of the Portfolios can go up or down depending on various market factors. Past performance of the Portfolio Manager does not indicate the future performance of the Products or any other future Products of the Portfolio Manager. Investors are not being offered any guaranteed or indicative returns through any of the Products. The names of the Products do not in any manner indicate their prospects or returns. The performance of the Products may be adversely affected by the performance of individual companies, changes in the market conditions, micro and macro factors and forces affecting capital markets in particular like interest rate risk, credit risk, liquidity risk and reinvestment risk.

Derivative/future and options products are affected by various risks including but not limited to counter party risk, market risk, valuation risk, liquidity risk, basis risk and other risk. Besides the price of the underlying asset, the volatility, tenor and interest rates affect the pricing of derivatives. 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 Products/ Portfolios. Each portfolio will be exposed to various risks depending on the investment objective, investment strategy and the asset allocation. Non-Diversified Portfolio tends to be more volatile than diversified portfolio.

Please read the Disclosure Document before investing.