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Absolute Freedom Option -
This investment option is a highly flexible one with a very direct focus. To make the most of investment openings across a wide gamut of large cap, mid cap and small cap stocks. |
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Home  General Risk Factors
| Portfolio Manager - Reliance Capital Asset
Management Limited |
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.
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.
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 market place and industry specific
and macro economic factors.
Technology stocks and some of the investments in niche sectors run
the risk of volatility, high valuation, obsolescence and low liquidity. 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 "counter party") to comply with the terms of the derivatives contract.
Other risks in using derivatives include market risk, valuation risk, option risk, liquidity risk and basis
risk. Also, it is to be noted that the market for derivative instruments is nascent in India.
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. The Portfolio Manager may invest in the shares,
units of mutual funds, debt, deposits and other financial instruments
of group companies.
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
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.
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. Given below
are some of the common risks associated with investments in fixed
income and money market securities. These risks include but are not
restricted to: Interest Rate Risk, Liquidity or Marketability Risk,
Credit Risk, Reinvestment Risk.
The Portfolio Manager has previous
experience/ track record of more than three years 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. |
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