Risk Factors Associated with Mutual Fund Investments

Mutual Fund investments are subject to market risks and investors should carefully read all scheme-related documents before investing. The value of investments may go up or down depending upon various market and economic factors.

Some of the important risks associated with mutual fund investments include:

• Market Risk: The value of mutual fund investments may fluctuate due to changes in market conditions.
• Liquidity Risk: Certain securities held by a mutual fund may not be easily traded, which may affect the ability to buy or sell securities at desired prices.
• Credit Risk: Debt-oriented schemes may be exposed to the possibility of an issuer failing to meet its interest or principal repayment obligations.
• Interest Rate Risk: Changes in interest rates can affect the value of investments made by debt-oriented mutual fund schemes.
• Inflation Risk: Inflation may reduce the purchasing power of returns generated from an investment over time.
• Scheme-Specific Risk: Every mutual fund scheme has its own investment objective, strategy and associated risks. Investors should carefully read the Scheme Information Document (SID) and other scheme-related documents before investing.
• Performance Risk: Past performance of a mutual fund scheme is not necessarily indicative of its future performance.