Risk Factors

General risk factors

• All mutual fund investments carry risk, including the possible loss of principal. There is no assurance that a scheme’s objective will be achieved.
• The NAV of a scheme can go up or down because of changes in market prices, interest rates, credit quality, liquidity, currency and economic or political conditions.
• Past performance of the sponsor, AMC or any scheme does not indicate future performance.
• The name of a scheme does not indicate its quality or future prospects.

Risks by asset type

Risk	What it means	Most relevant to
Market risk	Prices of shares fall with the market, sector or company news.	Equity, ELSS, index, hybrid
Interest-rate risk	Bond prices fall when interest rates rise.	Debt, gilt, hybrid
Credit risk	An issuer may delay or default on interest or principal.	Debt, corporate FDs, bonds
Liquidity risk	Some securities may be hard to sell quickly at a fair price.	Small-cap, credit-risk, bonds
Concentration risk	Heavy exposure to one sector, theme or company increases volatility.	Sectoral and thematic funds
Currency risk	Changes in exchange rates affect overseas investments.	International funds, NRI investors
Commodity risk	Gold and silver prices move with global demand and currency.	Gold and silver funds
Lock-in	Units cannot be redeemed before the lock-in ends.	ELSS, solution-oriented funds

Riskometer

Every scheme shows a riskometer rating from Low to Very High, reviewed monthly by the AMC. Check the current riskometer in the scheme documents or on the AMC’s website before investing, and compare it with your own comfort with risk.

SIPs, STPs and SWPs

Systematic plans do not assure a profit or protect against loss in falling markets. SWPs redeem units and may reduce your capital if withdrawals exceed returns.

Fixed deposits, bonds and insurance

Corporate fixed deposits and bonds are not bank deposits and are not insured by DICGC. Insurance benefits depend on policy terms, exclusions and accurate disclosure. Insurance is the subject matter of solicitation.

Tax

Tax laws change, and tax treatment depends on your circumstances. Please consult your tax professional.