Risk Disclosure Statement
Last Updated: 15-Feb-2025
Investing in fine wine through Elite Wine Fund involves certain risks. It is essential for investors to fully understand these risks before making any financial commitment. This document outlines key considerations regarding wine investment.
1. Investment Risk
- Market Fluctuations: The value of fine wines is subject to fluctuations based on supply, demand, vintage ratings, and economic conditions.
- Past Performance Is No Guarantee: Historical price appreciation does not guarantee future returns.
- Potential Loss of Capital: There is no guarantee of profit, and investors may experience losses, including the potential loss of principal.
2. Liquidity Risk
- Fine wine is considered an illiquid asset, meaning it may take time to sell holdings at desired prices.
- Market demand, provenance, and buyer availability impact resale timelines and potential returns.
3. Storage & Provenance Risks
- Proper storage conditions (temperature, humidity, light exposure) are critical for maintaining wine quality and value.
- Wine authenticity and provenance are important factors affecting its resale value.
- Storage risks, including potential spoilage, are mitigated through professional storage solutions, but cannot be eliminated entirely.
4. Counterfeit & Fraud Risks
- The global fine wine market has a history of counterfeit wines, which could impact investments.
- Elite Wine Fund employs authentication measures to minimize risks, but counterfeit concerns still exist.
5. Regulatory & Tax Risks
- Tax implications of wine investments vary by jurisdiction. Investors should consult tax professionals for specific guidance.
- Regulatory changes or trade restrictions may impact the sale or distribution of fine wine.
6. No Guarantees & No Investment Advice
- Investing in fine wine does not guarantee returns, and there are no fixed interest payments.
- This website does not provide financial, legal, or tax advice. Investors should conduct independent research before committing funds.
7. Force Majeure
- Unexpected events such as economic downturns, natural disasters, or regulatory shifts may impact investment performance.
8. Acknowledgment of Risk
By investing through Elite Wine Fund, you acknowledge that you have read and understood this Risk Disclosure Statement. You accept full responsibility for evaluating the risks associated with wine investment.
