General
All investments carry risk, including the risk of losing some or all of the money invested. This page explains, in plain language, the main risks associated with each asset class shown on the Platform. It is educational and does not cover every risk that may apply to a specific product.
Mutual funds
- Market risk — the value of a fund's holdings can rise or fall with the market
- Liquidity risk — it may take time to redeem units, especially for less liquid categories
- Credit risk — for debt funds, the issuer of a bond the fund holds could default or be downgraded
- Interest-rate risk — bond prices, and therefore debt-fund NAVs, move inversely to interest rates
- Concentration risk — a fund heavily weighted in one sector or a small number of holdings can be more volatile
Direct equity
- Price volatility — stock prices can move sharply in either direction
- Market risk — broad market movements affect most stocks
- Liquidity risk — some stocks are harder to buy or sell at a fair price without moving the price
- Company-specific risk — a company's own results, governance or events can affect its stock independent of the market
Fixed deposits
- Issuer/bank risk — the safety of a deposit depends on the financial health of the issuing bank/NBFC
- Premature withdrawal conditions — breaking a deposit early usually reduces the effective interest rate and may attract a penalty
- Interest-rate risk — a deposit locked at today's rate won't benefit if rates rise later
- Tax considerations — interest earned is generally taxable at your applicable income-tax slab; TDS may apply
Insurance
- Policy-specific terms — coverage, sum assured and conditions vary by policy; always read your policy document
- Exclusions — most policies exclude certain conditions or circumstances from coverage
- Premium obligations — missed premiums can lapse a policy and forfeit accumulated benefits
- Claim conditions — claims are subject to the insurer's terms, documentation requirements and approval process
This is not investment advice
This page is general information, not personalised advice. Consider your own risk tolerance and, where needed, consult a qualified adviser.