Frequently Asked Questions

What are the types of risks?

Risk is a natural aspect of every form of investment. Mutual funds have underlying assets which fluctuate on daily basis and can lead to capital loss.  Then there are price risks due to fall in prices of stocks leading to a lower NAV. The value of the investments may also be affected by factors such as interest rates, currency exchange rates, foreign investment, changes in government policy, political, economic or other developments.

  1. Inflation Risk
  2. Credit Risk
  3. Interest Rate Risk
  4. Investment Risk
  5. Liquidity Risk
  6. Changes in the Government Policy Risk