All investment products carry risks and each time you invest you should consider carefully whether the investment is suitable for you in light of your personal, financial and tax circumstances. Before making an investment through Tifosy’s investment platform (www.tifosy.com/investing) it is also important you understand the following general risks:
Capital is at risk and returns are not guaranteed
When you make an investment through Tifosy your capital is at risk. If the professional sports club you have lent money to, or acquired shares in, runs in to difficulties or fails during the life of the investment it may not be able to pay your returns and you may not get back all or any of your original investment.
Each investment is different
Each investment has its own return, terms and risks. The risks for your investment will depend on the particular professional sports club you are investing in to. Investments with a higher return are usually correlated with higher risks. You should review all the information provided about a particular investment, including the specific risks set out in either the offer document or other investment documentation before you decide whether the investment is right for you.
Investments may be illiquid
The investments on Tifosy are transferable but may be ‘illiquid’ or ‘non readily realisable’. This means you may be able to sell them but there is no formal regulated market on which you can do so. To help you sell, Tifosy provides an exchange which enables buyers and sellers to connect and transfer investments, but this is informal and does not operate like a stock exchange or other regulated market. As there is no guarantee you will be able to sell your investment at a reasonable price, or at all, you should be prepared to hold your investment for its full term.
Investments should be diversified
You should consider investing across a range of different investments and maintaining a balanced portfolio. By spreading your funds over a number of investments you reduce the overall impact if any one of your investment runs in to difficulties and is unable to repay your investment.
No investment advice
Tifosy does not provide financial advice to investors or make personal recommendations. It is therefore your responsibility to determine whether to invest in a specific investment or not. If you are in any doubt about the action you should take or the terms of a particular investment you should seek advice from an independent financial adviser.
Past performance does not guarantee future performance
Past performance is not a reliable indicator of future performance. This is particularly important if you are buying an investment through the exchange provided by Tifosy. For professional sports clubs, the financial performance of the business is often linked to the on-field performance of the club’s first team and can therefore be volatile. There is no guarantee that any business will succeed or meet its objectives. You should consider carefully any performance predictions and forecasts and any detailed risk warnings relating to them.