Risks to consider when investing in Grow-Your-Savings

Before you decide to invest your funds, we recommend exploring the risks that can be associated with investing. If in doubt, you should get advice from a Financial Advisor before proceeding.

What do we mean by risk?

The risk profile for this investment is classified as low. However, it is essential to understand that while certain opportunities may promise higher potential returns, they are often accompanied by increased levels of risk.

To ensure transparency, we aim to provide you with a comprehensive understanding of the concept of ‘risk’ as it pertains to your investment. Below, we have outlined a non-exhaustive list of potential investment risks to assist you in determining whether this opportunity aligns with your financial goals and risk tolerance.

The value of your investment

There is no guarantee regarding the performance of your investment. Its performance depends on the success of the underlying property finance agreements and the security measures and insurance policies associated with them.

For instance:
If a property or properties within the finance portfolio are destroyed or suffer significant damage, and insurance fails to provide compensation, and the company cannot recover the loss through other means, this may lead to a reduction in the value of your investment. The reduction would reflect the proportion of the affected property or properties within the total finance portfolio.

However:
A decline in the value of the underlying properties due to market fluctuations will not necessarily result in a reduction of your investment value. This is because the company’s policy is to offer properties to customers at the original purchase price, regardless of market price changes. Additionally, the company may choose to rent out properties at market rates until their value recovers, if necessary.

Your investment may also be impacted by additional risks or uncertainties that are presently unknown or considered negligible.

This approach reflects the unique dynamics of the Indian property market and emphasizes measures in place to safeguard investor interests.

What happens if a customer can’t pay their rent?

Due to our innovative equity buffer feature, customers can pay using their equity in times of need. We have calculated, our average customer has on average seven years of equity buffer available. This significantly reduces the risk of default.

Liquidity

Investments constitute private transactions. As such, they are not publicly traded on stock exchanges and may not be rapidly sold or traded. If you wish to withdraw your funds you will need to provide The Company with a minimum notice period, and The Company will need to raise new capital to buy out your investment. Your investment may be illiquid as redemption or further sale of shares within a set timeframe is not guaranteed. Prior to investing, you should consider the possibility that this may be a long-term investment.

No control

Dinarly Finance LLP will be managed by Dinarly Ltd. Investors will not be able to vote on certain decisions in accordance with the articles of association of Dinarly Finance LLP.

Not regulated

This investment is not a savings account and is not covered by deposit insurance schemes like the Deposit Insurance and Credit Guarantee Corporation (DICGC) in India. For traditional bank savings accounts, in the unlikely event of a bank failure, deposits are insured up to ₹5 lakh per account holder, meaning anything above this limit could be lost.

However:
If multiple investors seek to withdraw their investments from Dinarly Finance LLP simultaneously, it would not lead to the collapse of Dinarly Finance LLP or result in investors losing their money, as the funds are directly deployed in real estate properties.

It is highly unlikely that Dinarly Finance LLP would face insolvency, as it operates without external borrowing, employees, or major liabilities. In the rare event of insolvency, investors would still retain their equity share in Dinarly Finance LLP, which legally owns or holds charges over the properties financed through their investment. This ensures that while the retrieval of funds might take longer, the investments would remain secure and would not be automatically lost.

Not regulated

Dinarly Finance LLP relies on the expertise and services of a small group of key individuals who play a crucial role in its operations and management. In the event that these individuals become unavailable or cannot be replaced, the LLP may determine that it is in the best interest of the business to appoint an administrator to oversee its management and operations.

This measure ensures that the integrity of the business and the interests of investors are safeguarded, even under unforeseen circumstances.

Economic conditions

Changes in economic conditions including, for example rates of inflation, political events, changes in law or regulations and other factors can adversely affect investments in general and also your investment specifically.

Any more questions regarding risk?

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