Investment Risks
Risk Warnings
Capital Risk
The return of your capital is dependent on the performance of the investment issuer and potentially underlying investments, which are not guaranteed.
A product may be backed by security, however if the investment issuer is unable to pay its debts there may be difficulties in realising any security and recovering the capital.
Investment risk
Past performance is not an indication of future performance.
Investments in early stage or start up companies is higher risk and you should mitigate this risk by investing in a diversified portfolio which contains investments of different kinds, including lower risk investments.
Liquidity risk
The products introduced by Optima are illiquid and there is no trading platform or quotation for them. Whilst you may be able to sell your investment should you find a willing buyer, there may not be anyone willing to buy your investment at a price that you deem reasonable (or buy it at all).
Some products may have restrictions on transfers and you should make sure you read the individual investment documentation and risk warnings before making any investment.
Compensation Risk
Income Risk
Estimated returns are not guaranteed and are subject to the performance of the investment issuer.
Tax Risk
The tax treatment of any investment depends on the individual circumstances of each investor. If you are in any doubt as to the tax treatment of a particular product you should seek specialist tax advice.
Administration Risk
If a product does not reach its minimum investment level it may not go ahead and your application will be returned.