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Risks to consider when investing in Grow-Your-Savings
Risks to consider when investing in Grow-Your-Savings

This is relevant for Grow-Your-Savings, GYS Home and our Charity Savings

Updated over a week ago

Before you decide to invest your funds, we recommend exploring the risks that can be associated with investing. If in doubt, you should get advice from an Independent Financial Advisor (IFA) before proceeding.

What do we mean by risk?

The risk rating for this investment is deemed to be low risk. It is important to remember that while some opportunities might offer higher potential returns, they usually come with greater risks.

We want you to be very clear about 'risk' in the context of your investment. To help you, we have put together the following non-exhaustive list of possible investment risks to help you decide whether this investment is suitable for you.

The value of your investment

There is no guarantee of how your investment will perform. The performance of your investment is subject to the performance of the underlying property finance agreements and the security and insurance held over them.

For example:
If a property(s) in the finance portfolio is destroyed or suffers catastrophic damage, and insurance fails to pay out, and The Company is unable to recuperate the loss through other means, then this could result in a reduction in your investment value. The reduction would be based on what proportion the destroyed or damaged property(s) represent of the total finance portfolio.

A decrease in the value of the underlying properties due to market movements will not necessarily result in a reduction in your investment value. This is because The Company’s policy is to offer to sell properties to customers at the original purchase price regardless of property price movements, and The Company has the option to rent properties at market value until the property value recovers if necessary.

Your investment may also be adversely affected by additional risks and uncertainties that are not currently known or are currently immaterial.

What happens if a customer can't pay their rent?

Due to our innovative equity buffer feature, customers can pay using their equity in times of need. We have calculated, our average customer has on average seven years of equity buffer available. This significantly reduces the risk of default.


Investments constitute private transactions. As such, they are not publicly traded on stock exchanges and may not be rapidly sold or traded. If you wish to withdraw your funds you will need to provide The Company with a minimum notice period, and The Company will need to raise new capital to buy out your investment. Your investment may be illiquid as redemption or further sale of shares within a set timeframe is not guaranteed. Prior to investing, you should consider the possibility that this may be a long-term investment.

No control

Pfida Finance PLC will be managed by Pfida Ltd. Investors will not be able to vote on certain decisions in accordance with the articles of association of Pfida Finance PLC.

Not regulated

This investment is not a bank account and is not covered by the Financial Services Compensation Scheme (FSCS). With a bank account, if there were a bank collapse or a run on the bank, bank savings would be guaranteed by the FCSC to a maximum of £85k per individual’s account (meaning the account holder could lose anything above this), and the bank would usually go into administration or require a bail-out.


If a lot of customers wanted their investment back from Pfida Finance PLC at the same time, it would not result in Pfida Finance PLC collapsing or customers losing their money as the money is deployed in properties.

It is unlikely that Pfida Finance PLC would go into administration because it does not have any borrowing or employees or any other major liabilities. In the unlikely event that it does go into administration, you would still have your shares in Pfida Finance PLC which would still own or have a legal charge over all the properties your money was used to finance. This means that it may take longer for customers to retrieve their funds but the funds would not be automatically lost.

Key person risk

Pfida Finance PLC is dependent on the services of a limited number of key persons, and if the services of such key persons were to become unavailable or irreplaceable, Pfida Ltd might deem it in the best interest of Pfida Finance PLC to appoint an administrator to take over the management of Pfida Finance PLC.

Taxation risk

The tax treatment of your investment and regulatory environment in general may change from time to time. You are responsible for understanding and managing your own tax affairs.

Economic conditions

Changes in economic conditions including, for example rates of inflation, political events, changes in law or regulations and other factors can adversely affect investments in general and also your investment specifically.

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