Explaining the Risks
For a full list of the risks involved please see ‘The risks explained’ section of the product’s brochure
- Capital is at risk and investors could lose their money
As with all investments, an investor’s capital is at risk and they may get back less than they originally invested, if anything at all.
- Liquidity risk
Investments in unquoted companies can be difficult to sell. Investors should be aware that the exit process is likely to take in excess of a year and this should be considered before any investment in the MWM EIS is made.
- Past performance is no guide to the future
The past performance of an investment, or those managed by an Investment Manager, are not reliable indicators of future results. Nor should investors rely on targeted returns.
- Long-term investment
In order to qualify for the EIS reliefs investors must hold their investment for a minimum of 3 years. Given liquidity can be difficult to provide, investors should view this investment as a long-term one.
- High-risk investment
Investments into small, unquoted companies should be considered much higher risk than investing in companies listed on a major stock exchange. They also have higher rates of failure.
- Concentration risk
MWM EIS invests in a small number of Investee Companies and furthermore there is significant sector bias. Diversification of the portfolio will therefore be limited, which could increase the level of risk an investor is undertaking.