Market Risk
The value of mutual fund units rises and falls with the securities they hold. NAVs can go down as well as up. There is no guarantee of returns or of capital protection in any scheme.
Equity Risk
Equity schemes are affected by company performance, economic cycles, interest rates, and market sentiment. Short-term values can fall sharply. Equity investing suits longer horizons and higher risk capacity.
Debt / Credit Risk
Debt schemes carry interest-rate risk (bond prices fall when rates rise) and credit risk (an issuer may delay or default on payments). Even liquid and overnight funds are not risk-free.
Liquidity Risk
Some schemes carry exit loads or lock-in periods (for example, ELSS has a 3-year lock-in). In stressed markets, redemption proceeds may take longer to realise.
Concentration Risk
Sectoral and thematic schemes concentrate holdings in one sector or theme and can be significantly more volatile than diversified schemes.
Past Performance Risk
Past performance is not indicative of future returns. A scheme that performed well in the past may not do so in the future.
Our Commitments on Risk
- We recommend schemes only after recording your risk profile.
- We never promise assured, guaranteed, or indicative returns.
- Any illustration we share assumes a return of no more than 12% p.a., in line with AMFI Best Practices Guidelines on future return assumptions.
- If you insist on an investment that does not match your risk profile, we will issue a written unsuitability communication before executing it.