Investors are not guaranteed the investment principal that they commit. Investors may incur a loss and the value of their investment principal may fall below par as the result of a decline in NAV. All profits and losses arising from investments in the Fund belong to the investors (beneficiaries). This fund is different from saving deposit.
This Fund invests mainly in rights for stock price index futures trading and short-term bonds. As such, it is possible that the NAV will fall and the Fund may incur losses due to a decline in the prices of rights for stock price index futures trading and short-term bonds or worsening financial standing or business results of the organizations that issue short-term bonds. Losses may also be incurred due to exchange rate fluctuation when investing in assets denominated in foreign currencies.
Major risks for the investment trust securities are as follows:

1.Price Fluctuation Risk

• The prices of rights relating to stock index futures will change due to fluctuations in the stock prices of companies used to calculate the stock price index, and in the constituent stock markets of the stock price index. In addition, the prices of rights relating to stock index futures trading can change due to fluctuations in other domestic and overseas stock price indices. There is a risk that the Fund will suffer material losses owing to an unexpected change in the prices of rights relating to stock index futures trading in the fund or to an unexpected fluctuation in the prices of stocks related to the stock price index and the constituent stock markets of the stock price index.
• Stocks and rights related to stock index futures trading in emerging countries tend to show high price volatility compared to those in developed countries. This can also have a large impact on the fund's NAV.
• Public and corporate bonds contain a risk of price fluctuation due to interest rate fluctuation. In general, when interest rates rise, bond prices decline, resulting in a decline in the fund's NAV. However, price fluctuation is different for each bond depending on the maturity, coupon rate and other issuance conditions.

2.Liquidity risk

• There is a risk that the Fund will incur unexpected losses where the market size or trading volume is small. The purchase and sale prices of securities are influenced by the trading volume, resulting in the inability of the Fund to sell certain stocks in its portfolio at prices that are expected to be realized in light of the prevailing market trend, that a security cannot be sold as appraised, or that the transaction volume is limited regardless of the price levels.
• The liquidity risk of stocks and rights relating to stock index futures trading in emerging countries can be higher than those in developed countries, due to the small market size or trading volume.

3.Credit risk

• In cases where default has occurred or is expected to occur, for issuers of public and corporate bonds or money market instruments, the prices of such corporate bonds or money market instruments decline (the value could even fall to zero). This results in a decline of the Fund's NAV. Also, if default in fact occurs, there is a high possibility of being unable to collect investment funds.

4.Currency Fluctuation Risk

• For foreign-currency-denominated assets, in general, if the yen is stronger than the currencies of such assets, the Fund's NAV will decline.
• Generally speaking, emerging countries' currencies show higher volatility than those of developed countries.

5.Country risk

• There is the risk of significant losses in the Fund due to market trends or the flow of funds, including emergencies in invested countries (such as financial crises, government default due to financial reasons, significant policy changes or introductions of new regulations including asset freezes, natural disasters, coups or significant political changes, or war). In such cases, the fund cannot be managed in accordance with the investment policy.
• Generally speaking, emerging countries do not disclose enough information, or accurate information cannot be obtained in a timely manner.

6.Security-lending Risk

• Lending of securities is accompanied by counterparty risks, which are the risks of default or cancellation of lending agreements as result of bankruptcy, etc., and by the counterparties. As a result, there is a risk that the Fund will suffer unanticipated unexpected losses. Following the default or cancellation of a lending agreement, when liquidation procedures are implemented by using the collateral that is set aside in the lending agreement, the procurement cost of buying back the securities can surpass the collateral value, due to price fluctuations in the market. In such cases, the Fund is required to pay the difference, which may cause the Fund to incur losses.

＜Risks of Disparity between the JPY-converted S&P CNX Nifty Index Futures and the NAV＞

Whereas the Fund seeks to match the NAV volatility with that of the JPY-converted S&P CNS Nifty Index futures, it does not guarantee the movements will be consistent to those of the Index for the following reasons:

• The lag in timing of fund inflow to the purchase of investment trust securities
• The fund will bear such expenditures as trust fees, brokerage commissions and auditing fees.
• When derivative transactions such as futures are made, there may be disparity discrepancy between the price movements of such transactions and that of the S&P CNX Nifty Index futures.

◇ Disparity between the market prices at which stocks are traded on exchanges and the NAV

The Fund is listed on and will be publicly traded on the Tokyo Stock Exchange; however, the market price of the units will depend mainly on the demand for the Fund, its investment performance, and how attractive it is to investors in comparison to alternative investments, etc. We cannot predict whether the units of this fund will be traded at the market value below or above its NAV.

*Because the prices of investment trust securities in which the Fund invests fluctuate due to the influence of these factors, the Fund's NAV fluctuates accordingly.
*The factors that contribute to fluctuations in the NAV are not limited to those listed above.

＜Other items to consider＞

• This document is meant as promotional material whose purpose is for Nikko Asset Management to provide information about its “Listed Index Fund S&P CNX Nifty Futures (India Equity)” and for investors to gain further understanding about the fund.
• Unlike a bank deposit or an insurance policy, this fund is not covered by the Deposit Insurance Corporation of Japan or the Policyholders’ Protection Corporation. Also, if the investor purchases the fund at a registered financial institution such as a bank, it is not subject to payment from the Investor Protection Fund.
• Prior to purchasing the fund, please carefully read the pre-contract documents and other material.