Risk Disclosure Statement

Last updated: June 2026

General Market Risk

Investments in securities are subject to market risks. The value of securities can and does fluctuate, and any individual security may experience significant downward movements or even become worthless. There is an inherent risk that losses may be incurred rather than profits made as a result of buying and selling securities.

Unlisted Share Risks

Investment in unlisted shares carries specific risks that are distinct from listed securities:

Liquidity Risk: Unlisted shares do not trade on recognised stock exchanges. There is no guaranteed market for buying or selling. Exit may take days to weeks, and in some cases, buyers may not be available at the desired price.
Price Discovery Risk: There is no standardised price discovery mechanism. Prices are determined through bilateral negotiation and may vary significantly between transactions.
Information Asymmetry: Unlisted companies have limited disclosure requirements compared to listed companies. Financial data may be less frequently updated and less independently verified.
Regulatory Risk: Unlisted share transactions are less regulated than exchange-traded securities. Regulatory changes could affect the ability to buy, sell, or hold unlisted shares.
Valuation Risk: Fair value estimates for unlisted companies are inherently uncertain and based on assumptions that may not materialise.
IPO Uncertainty: Pre-IPO investments carry the risk that the company may not list, may list at a lower price than expected, or may delay listing indefinitely.

Global Investment Risks

Currency Risk: Investments denominated in foreign currencies are subject to exchange rate fluctuations. The Indian Rupee may appreciate or depreciate against the investment currency, impacting returns when converted back to INR.
Country Risk: Political, economic, or regulatory changes in the country where investments are held may adversely affect investment value.
Regulatory Risk: Changes in Indian regulations (FEMA, LRS, taxation) or foreign regulations may impact the ability to invest, hold, or repatriate funds.
Tax Complexity: Global investments are subject to taxation in multiple jurisdictions. DTAA benefits may change. Schedule FA/FSI reporting requirements are mandatory and non-compliance attracts penalties.
Platform Risk: Global investments are facilitated through third-party platforms. While these are regulated (IFSCA for GIFT City), platform-specific risks including operational disruptions, technology failures, or counterparty risks exist.

Bond and Fixed Income Risks

Interest Rate Risk: Bond prices move inversely to interest rates. Rising rates reduce the market value of existing bonds.
Credit Risk: The issuer may default on interest or principal payments.
Inflation Risk: Fixed coupon payments may lose purchasing power in high-inflation environments.

REIT Risks

Real Estate Investment Trusts are subject to real estate market conditions, interest rate movements, tenant defaults, and property valuation fluctuations. International REITs carry additional currency and regulatory risks.

Alternative Investment Risks

Hedge funds, structured products, and alternative investments may employ leverage, derivatives, and complex strategies that amplify both gains and losses. These products typically have limited liquidity, higher fees, and less regulatory oversight.

No Guarantee of Returns

Neoma Capital does not guarantee any returns on investment. Past performance is not indicative of future results. All investments carry the risk of partial or complete loss of capital.

Seek Professional Advice

Before making any investment decision, you should consider seeking advice from a qualified financial advisor, tax consultant, or legal professional who can assess your individual circumstances, risk tolerance, and investment objectives.

Contact

For questions about risk factors associated with our products and services, contact us at info@neomacapital.com or +91 79829 40307.