Risk Factors
Mutual Fund investments are subject to market risks. The Net Asset Value (NAV) of schemes can go up or down depending on the factors and forces affecting securities markets, including interest rates, currency rates, political and economic developments.
Some of the primary risks associated with mutual fund investments include:
- Market Risk: The risk that the value of securities in a portfolio will decline due to market fluctuations.
- Credit Risk: The possibility that an issuer of fixed-income securities may default or fail to pay interest or principal on time.
- Interest Rate Risk: When interest rates rise, bond prices generally fall, which can impact the NAV of debt funds.
- Liquidity Risk: The risk that a scheme may not be able to liquidate securities at their fair market value in a timely manner.
- Scheme-Specific Risks: Risks related to sectoral, thematic, small-cap, or international exposure as outlined in scheme offer documents.
Past performance is not indicative of future results. There is no assurance or guarantee that the investment objective of any Mutual Fund scheme will be achieved. Returns are neither assured nor guaranteed.
Investors are advised to read the Scheme Information Document (SID), Key Information Memorandum (KIM), and Statement of Additional Information (SAI) carefully before making any investment decision.
For comprehensive educational material on mutual fund risks, visit AMFI: amfiindia.com — Risk in Mutual Funds