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Risk involved in Mutual Fund Investments
The risk involved in mutual fund investments is for the information of mutual fund investors.
- Market Risks
- Market Volatility Risks and its effects on NAV
- Geo-Political Risks
- Risk of Principal Amount invested in Mutual Funds
- Risk of Returns
- Past Performance is not indicative of future performance
- The investment objective of the scheme is subject to change
- Risk due to change in categorization of the scheme
- The Performance of the scheme is subject to change in a fund management team
- Risk of AMC being taken over by AMC
- Risk of closure of AMC and merging with other AMC
- Risk of change in performance of scheme due to change in fund manager
- Returns being subject to market risk including loss of capital on account of market volatility, force majeure events, changes in the political and economic environment, default by issuers of securities to mutual funds, bankruptcy or insolvency of issuers and potential segregation of portfolio by AMC in such circumstances.
- Risks associated with the subscription to new fund offering of the scheme such as price volatility risk, liquidity risk, and delisting risk;
- Winding up of schemes on account of illiquid instruments, higher volume of redemption requests from the investors or on account of unforeseen market events.
Mutual Fund investors are requested to take note of the above before making an investment decision.