Legal
Risk Disclaimer
Effective: January 1, 2025 | Read carefully before proceeding
Important Risk Warning
Alternative Investment Funds carry significant risks including potential total loss of capital. They are suitable only for sophisticated investors who can withstand illiquidity and accept high investment risk. Do not invest money you cannot afford to lose entirely.
1. General Investment Risks
All investments carry risk. The value of investments in Alternative Investment Funds can decrease as well as increase. You may receive less than you invested. Past performance data presented on this platform is historical and is not a reliable indicator of future performance or results.
2. Liquidity Risk
AIFs are primarily illiquid instruments. Category I and II AIFs are close-ended with tenures of 3–10 years. Early exit is generally not available, or subject to significant penalties. You should only invest capital that you can commit for the full stated tenure of the fund.
3. Concentration Risk
Unlike mutual funds, AIF portfolios may be concentrated in a small number of companies, sectors, or geographies. A single adverse event affecting a portfolio company can materially impact overall fund returns.
4. Leverage Risk (Category III)
Category III AIFs may use leverage through derivatives. Leverage amplifies both gains and losses. In adverse market conditions, leveraged funds can lose significantly more than 100% of invested NAV if leverage ratios are not properly managed. SEBI prescribes leverage limits which funds must adhere to.
5. Regulatory & Tax Risk
Tax treatment of AIF investments may change. Budget amendments, SEBI regulatory changes, or judicial rulings may affect the tax efficiency of your investment. Category III AIF investors are taxed at Maximum Marginal Rate at the fund level. Seek independent tax advice before investing.
6. Manager & Operational Risk
Returns depend materially on the skill and judgment of the Fund Manager. Key person departure, operational failures, or conflicts of interest may adversely impact fund performance. Conduct independent due diligence on the fund manager's track record, team stability, and operational infrastructure before committing capital.
7. Not Investment Advice
Nothing on PlatAlt platform constitutes personalized investment advice. PlatAlt is not a SEBI-registered Investment Adviser under the IA Regulations. Before investing, consult a SEBI-registered Investment Adviser, your tax consultant, and legal advisor to assess suitability for your specific financial situation.