Risk Disclosure

1. Purpose of this document

Investments in securities and other financial instruments are subject to market risks. Read all the related documents carefully before investing. The value of investments and the income from them can go down as well as up, and you may receive back less than you invested, including in some cases the loss of your entire capital.

This Risk Disclosure document is provided by David Holdings Pvt. Ltd. to help you understand, in general terms, the principal risks of the products and services we offer. It does not describe every risk and is not a substitute for the detailed risk factors set out in the relevant offer document, scheme information document, key information memorandum, contract note or engagement letter. You should read those documents in full and seek independent advice where you are unsure.

2. General market risk

The prices of financial instruments are influenced by factors beyond the control of any investor or intermediary. These include economic conditions, interest rates, inflation, currency movements, government and regulatory policy, geopolitical events, and changes in investor sentiment.

Markets can be volatile, and prices can move sharply and without warning. There may be periods during which an entire asset class falls in value at the same time, so that diversification provides only limited protection. No investment strategy can eliminate market risk.

3. Equity & securities risk

Investing in shares and equity-linked securities carries the risk that the price of a security may fall, sometimes substantially, and that the issuer may underperform, suspend dividends or, in the worst case, become insolvent.

• Share prices reflect company performance, sector conditions and broader market sentiment.
• Small and mid-cap securities can be more volatile and less liquid than large-cap securities.
• Corporate actions, regulatory action and governance failures can materially affect value.

You should be prepared to hold equity investments over a suitable time horizon and to tolerate interim declines in value.

4. Derivatives & leverage risk

Trading in derivatives such as futures and options involves a high degree of risk and is not suitable for every investor. Because derivatives are usually traded on margin, a relatively small market movement can have a disproportionately large effect on your position.

• You may lose more than the amount you initially deposited as margin.
• You may be required to deposit additional margin at short notice, failing which your position may be closed out at a loss.
• Options can expire worthless, resulting in the loss of the entire premium paid.

You should not trade in derivatives unless you understand the nature of the contracts, the extent of your exposure to loss, and the obligations they create.

5. Commodity & currency risk

Commodity prices can be highly volatile and are affected by supply and demand, weather, storage and transport costs, government policy and global events. Commodity derivatives carry the same leverage and margin risks as other derivatives.

Where an investment is denominated in or exposed to a foreign currency, movements in exchange rates can increase or reduce its value when measured in Indian Rupees, independently of the performance of the underlying asset. Currency risk may apply even to domestic investments with overseas exposure.

6. Mutual funds

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. The net asset value of a mutual fund scheme will rise or fall with the value of its underlying holdings, and there is no assurance that a scheme's objective will be achieved.

Different schemes carry different risk profiles depending on their asset class, strategy and concentration. You should consider the scheme's objective, asset allocation, expense ratio, exit load and risk factors, as described in the scheme information document and key information memorandum, before investing.

7. Portfolio management services risk

Portfolio Management Services (PMS) are subject to the risks of the securities in which the portfolio is invested, and there is no assurance or guarantee of any minimum or specified return.

• The value of a managed portfolio can fluctuate and may fall below the capital contributed.
• Past performance of the portfolio manager or any strategy does not indicate future performance.
• Performance can vary between clients depending on the time of entry, mandate and cash flows.

You should read the PMS disclosure document and the agreement, including the fee structure and risk factors, before availing the service.

8. Fixed income, debentures & credit risk

Fixed-income instruments, including bonds, debentures and money-market instruments, carry credit risk and interest-rate risk.

• Credit risk is the risk that the issuer fails to pay interest or repay principal when due.
• Interest-rate risk is the risk that the market value of a fixed-income instrument falls when interest rates rise.
• A downgrade in an issuer's credit rating can reduce the value and liquidity of its instruments.

Higher yields are generally associated with higher credit risk. Investments described as secured are only as good as the security backing them and any enforcement process.

9. Liquidity risk

Liquidity risk is the risk that you may not be able to buy or sell an investment quickly, or at a price close to its assessed value.

Some securities are thinly traded, and during periods of market stress even normally liquid instruments may become difficult to trade. Certain investments may have lock-in periods, exit loads or redemption restrictions that limit your ability to access your money when you wish. You should ensure that your investments are consistent with your liquidity needs.

10. Past performance

Past performance is not indicative of future results. Any performance figures, illustrations, back-tests or simulations shown by the firm relate to the past and offer no assurance of future returns.

Returns achieved in one period may not be repeated, and an investment that has performed well in the past may perform poorly in the future. Illustrative figures shown on this website or in marketing material are not a forecast or a promise.

11. No guarantee of returns

Neither David Holdings nor any of its representatives guarantees any return, capital protection or assured income on any investment, except where an instrument expressly provides for it by its terms and the provider is able to honour it.

You should treat any communication that promises assured, guaranteed or risk-free returns on market-linked investments with caution, as such promises are generally not permitted and may indicate a fraudulent scheme.

12. Tax considerations

The tax treatment of investments depends on your individual circumstances and on tax law, which may change, sometimes with retrospective effect. Taxes such as capital gains tax, securities transaction tax, stamp duty and Goods and Services Tax may apply to your transactions and reduce your net returns.

The firm does not provide tax advice through this website. You should consult a qualified tax adviser regarding the tax consequences of any investment before you transact.

13. Investor grievance & SEBI SCORES

If you have a complaint relating to our services, you may contact our Investor Grievance cell:

• Email: grievance@david-holdings.com

If your complaint is not resolved to your satisfaction, you may lodge it on the SEBI Complaints Redress System (SCORES) at scores.sebi.gov.in, or through the Online Dispute Resolution mechanism, in accordance with the procedures prescribed by SEBI and the exchanges. Details of the firm's SEBI registration and the relevant exchange and depository memberships are published on this website.

14. Acknowledgement

By transacting with David Holdings, you acknowledge that you have read and understood this Risk Disclosure document and the risk factors in the relevant offer and scheme-related documents, that you understand the risks involved, and that you accept those risks.

You further acknowledge that investment decisions are taken on your own assessment of your financial situation, objectives and risk tolerance, and that no representation has been made to you by the firm that any particular return will be achieved.