Samnidhy Student Managed Investment Fund

Risk Disclosure Document

To be read and signed by each investors

Risk Associated with the Fund

The fund by utilizing a holistic risk management strategy will endeavour to manage risks associated
with investing in debt and equity markets. The risk control process involves identifying and
measuring risk through various risk measurement tools.

The fund has identified the following risks of investing in equity and debt, and designed risk
management strategies, which are embedded in the investment process to manage such risks.

Risks specific to Debt Investments

Market Risk: As with all debt securities, changes in interest rates may affect the schemes Net Asset
Value as the prices of securities generally increases as interest rates decline and generally decreases as
interest rates rise. Price of long-term securities generally fluctuate more in response to interest rate
changes than do short-term securities. Indian debt markets can be volatile leading to the possibility of
price movements up or down in fixed income securities and thereby to possible movements in the
fund value.

Liquidity or Marketability risk: This refers to the ease with which a security can be sold at or near to
its valuation yield-to maturity (YTM). The primary measure of liquidity risk is the spread between the
bid price and the offer price quoted by a dealer. Liquidity risk is today characteristic of the Indian
fixed income market.

Credit Risk: Credit risk or default risk refers to the risk that an issuer of fixed income security may
default i.e. will be unable to make timely principal and interest payments on the security. Due to this
risk corporate debentures are sold at a higher yield above those offered on Government Securities
which are sovereign obligations and free of credit risk. Normally, the value of a fixed income security
will fluctuate depending upon the changes in the perceived level of credit risk as well as any actual
event of default. The greater the credit risk the greater the yield required for someone to be
compensated for the increased risk.

Reinvestment Risk: This refers to the interest rate levels at which cash flows received from the
securities in the scheme are reinvested. The additional income from reinvestment is the Interest on
Interest component. The risk is that the rate at which interim cash flows can be reinvested may be
lower than that originally assumed.

Investors Signature

(Name)

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Derivatives Risk: If/As and when the scheme trades in 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 technique and risk analysis different from those
associated with stocks and bonds the use of derivatives requires an understanding not only of the
underlying instrument but also of the derivative itself. Derivatives require the maintenance of
adequate controls to monitor the transactions entered into, the ability to assess the risk that a
derivative adds to the portfolio and the ability to forecast price or interest rate movements correctly.
There is the possibility that a loss may be sustained by the portfolio as a result of the failure of another
party to comply with the terms of the derivatives contract. Other risks in using derivatives include the
risk of mis-pricing or improper valuation of derivatives and the inability of derivatives to correlate
perfectly with underlying assets, rates and indices.

Risk associated with Equity Investments

Market Risks: The scheme is vulnerable to movements in the prices of securities invested by the
scheme, which could have a material bearing on the overall returns from the scheme. The value of the
Scheme's investments, may be affected generally by factors affecting securities markets, such as price
and volume, volatility in the capital markets, interest rates, currency exchange rates, changes in
policies of the Government, taxation laws or any other appropriate authority policies and other
political and economic developments which may have an adverse bearing on individual securities, a
specific sector or all sectors including equity and debt markets.

Liquidity Risk: The liquidity of the schemes investments is inherently restricted by a trading volumes
in the securities in which it invests

Derivatives Risk: If the scheme trades 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 the maintenance of adequate controls
to monitor the transactions entered into, the ability to assess the risk that a derivative adds to the
portfolio and the ability to forecast price or interest rate movements correctly. 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 the risk of mis-pricing or improper valuation of derivatives and the inability of
derivatives to correlate perfectly with underlying assets, rates and indices.

Tracking Error: The performance of the scheme may not be commensurate with the performance of
the benchmark index on any given day or over any given period, referred to as tracking error.

Concentration Risk: Concentration of risk represents the probability of loss arising from heavily
lopsided exposure to a particular group of sectors or securities.

Investors Signature

(Name)

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Risk associated with Commodity Investments

Market Risk: The prices of Gold may be affected by several factors such as global gold supply and
demand, investors expectations with respect to the rate of inflation, currency exchange rates, interest
rates, etc. Crises may motivate large-scale sales of gold, which could decrease the domestic price of
gold.

Central Banks sale: Central banks across the world hold a part of their reserves in gold. The
quantum of their sale in the market is one of the major determinants of gold prices. A higher supply
than anticipated would lead to subdued gold prices and vice versa. Central banks buy gold to augment
their existing reserves and to diversify from other asset classes. This acts as a support factor for gold
prices.

Producer mining interest: Bringing new mines on-line is a time consuming and at times
economically prohibitive process that adds years onto potential supply increases from mining
production. On the other hand, lower production has a positive effect on gold prices. Conversely
excessive production capacities would lead to a downward movement in gold prices as the supply
goes up.

Macro-economic factors: A weakening dollar, high inflation, the massive US trade deficits all act in
favour of gold prices. The global trend of rising interest rates also had a positive impact on gold
prices. Gold being regarded as a physical asset would lose its luster in a deflationary environment as
gold is used effectively as an inflation hedge.

Geo Political Issues: Any uncertainty on the political front or any war like situation always acts as a
booster to gold prices. The prices start building up war premiums and hence such movements. Stable
situations would typically mean stable gold prices.

Seasonal Demand: Since the demand for Gold in India is closely tied to the production of jewellery
prices tend to increase during the times of year when the demand for jewellery is the greatest, the
demand for metals tends to be strong a few months ahead of these festive seasons, especially Dussera,
Diwali, Akshay Tritiya festival and summer wedding season in India. Christmas, Mothers day,
Valentines Day are also major festive and shopping for Gold.

The gold held by the Custodian of the Exchange traded fund Samnidhy invests in, may be subject
to loss, damage, theft or restriction of access due to natural event or human actions.

The trustees may not have adequate sources of event of fraud, to the market value of gold at the time
the fraud is discovered.

The Custodian will maintain adequate insurance for its bullion and custody business. The liability of
the custodian is limited under the agreement between the AMC and the Custodian which establish the
mutual funds custody arrangements, or the custody agreements.

Investors Signature

(Name)

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Credit and Interest Rate Risk

The Fund may also invest in Gold Related Instruments, money market instruments, bonds, securitized
debts & other debt securities as permitted under the Regulations which are subject to price, credit and
interest rate risk. Trading volumes and settlement periods and transfer procedures may restrict
liquidity in debt investments.

Right to Limit Redemptions: The Board, in the interest of the Unit holders of the Scheme offered in
this Risk Document and keeping in view of the unforeseen circumstances / unusual market conditions,
may limit the total number of Units, which can be redeemed on the date of maturity.

Redemption Risk: The Scheme would ordinarily repurchase Units in Creation Unit size. Further, the
price received upon the redemption of RGETF units may be less than the value of the equity mix
represented by them.

Asset Class Risk: The price of securities may vary from time to time. Further, the returns from the
types of securities in which a Scheme invests may underperform returns from the various general
securities markets or different asset classes. Different types of securities tend to go through cycles of
out-performance and under performance in comparison of the general securities markets.

Passive Investments: The underlying investments may be affected by a general decline in the value of
invested equity, domestic price of gold and other instruments invested under the plan. The fund
invests in the securities mentioned in the asset allocation regardless of their investment merit. The
AMC does not attempt to take defensive positions in declining markets. Further, the fund manager
does not make any judgment about the investment merit nor shall attempt to apply any economic,
financial or market analysis.

Tracking Error Risk: Tracking error means the variance between daily returns of the underlying
Benchmark (equities in this case) and the NAV of the scheme for any given period. NAV of the
Scheme is dependent on valuation of underlying equities. NAV so computed may vary from the value
of underlying securities. Factors such as the fees and expenses of the Scheme, cash balance, changes
to the Underlying assets and regulatory policies may affect AMCs ability to achieve close correlation
with the Underlying assets of the scheme. The Schemes returns may therefore deviate from those of
its Underlying assets.
Tracking error could be the result of a variety of factors including but not limited to:

Delay in the purchase or sale of securities due to

Illiquidity,
Delay in realization of sale proceeds,
Creating a lot size to buy the required amount of securities
The scheme may buy or sell the securities at different points of time during the trading
session at the then prevailing prices which may not correspond to its closing prices.
The potential for trades to fail, which may result in the Scheme not having acquired desired
securities at a price necessary to track the benchmark price.

Investors Signature

(Name)

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 The holding of a cash position and accrued income prior to distribution of income and
payment of accrued expenses.
Disinvestments to meet redemptions, recurring expenses, dividend payouts etc.
Execution of large buy / sell orders
Transaction cost (including taxes and insurance premium) and recurring expenses
Realization of Unit holders funds

The scheme will endeavour to minimize the tracking error by

Setting off of incremental subscriptions against redemptions, during liquidity window

Use of equity related derivative instruments, as and when allowed by regulations
Rebalancing of the portfolio

Risk Factors associated with Investing in Mutual Funds

Mutual Funds and securities investments are subject to market risks and there is no assurance or
guarantee that the objectives of the scheme will be achieved.

As with any investment in securities, the NAV of the units issued under the scheme can go up or
down depending on the factors and forces affecting the capital market/bullion market.

Past performance of the scheme is not future performance of the scheme

Investors in the scheme are not being offered any guaranteed or assured returns

The investment made by investment committee may not always be profitable

TAPMI, faculty staffs of TAPMI and finance forum members are not responsible or liable for any loss
resulting from the operation of the scheme

The fund is not guaranteeing or assuring any dividend. The mutual fund is also not assuring that it will
make periodical dividend distributions, though it has every intention of doing so. All dividend
distributions are subject to availability of distributable surplus in the scheme.

Special Considerations

The Mutual Fund is not assuring or guaranteeing that it will be able to make regular / periodical
distributions to its Unit holders. Periodical distributions will be dependent on the availability of
distributable surplus. The management committee has the right in their sole discretion; to limit
redemptions under certain circumstances.

Investors Signature

(Name)

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 Samnidhy Student Managed Investment Fund

Undertaking

I have read and understood the Terms and Conditions and clauses of undertaking to be signed for
investing in the scheme. I hereby declare that I am a student of TAPMI. I apply to the fund
management committee to purchase units of the fund and agree to abide by the terms, conditions,
rules and regulations of the scheme and other statutory requirements of the management committee of
the scheme. I confirm to have understood the investment objective, investment pattern, and risk
factors applicable to the scheme. I have not received nor been induced by any rebate or gifts, directly
or indirectly, in making this investment. I declare that the amount invested in the scheme is through
legitimate sources only and is not designed for the purpose of contravention or evasion of any Act,
Regulations or any other applicable laws enacted by the Government of India or any Statutory
Authority. I agree that the right to manage the amount I invest lies with the management committee of
the scheme and under any circumstances whatsoever the management committee or any person
associated with Samnidhy will not be responsible for the loss of my personal investment in the
fund. I declare that I will share the gains earned from this scheme with the designated tax authority of
India. The management committee has disclosed to me all the commissions and expenses to be
payable towards the management and operation of the scheme.

Re.1/-
Revenue
Stamp
(Signed
Across)

Investors Signature

(Name)

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