Risk Disclosure
All investments carry risk. Please understand the risks below before investing through The Investments Hub.
General risk
Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAV of a scheme can go up or down, and you may get back less than you invested. Past performance may or may not be sustained in future.
Specific risks in mutual funds
- Market risk: prices of equity shares and other securities move with economic, political and company-specific events.
- Interest rate risk: prices of bonds fall when interest rates rise, affecting debt fund NAVs.
- Credit risk: an issuer of a bond may fail to pay interest or principal on time.
- Liquidity risk: some securities may be hard to sell at a fair price, which can affect redemptions.
- Concentration risk: sectoral and thematic funds invest in a narrow part of the market.
- Currency risk: international funds are affected by exchange rate movements.
- Lock-in: ELSS and solution-oriented schemes cannot be redeemed during the lock-in period.
Specialized Investment Funds (SIF)
- SIF strategies may take short positions and use derivatives beyond hedging, which can magnify both gains and losses.
- Risk is shown through a risk-band from Level 1 (lowest) to Level 5 (highest), not the mutual fund risk-o-meter.
- Subscription and redemption frequency, notice periods and exit loads differ from mutual fund schemes, so your money may be less readily accessible.
- The minimum investment is Rs 10 lakh per investor at PAN level across all strategies of a SIF, other than for accredited investors.
- SIFs are meant for investors who understand these strategies and can bear the higher risk involved.
Risk-o-meter
Every scheme displays a risk-o-meter with six levels from Low to Very High. Check it before investing and whenever the AMC informs you of a change.
Insurance
Insurance claims are subject to policy terms, exclusions, waiting periods and accurate disclosure at the proposal stage. Returns on savings-linked insurance products depend on the product design and, for unit-linked products, on market performance.
Post Office schemes
Interest rates are notified by the Government every quarter and can change. Premature withdrawal may carry penalties or be restricted under scheme rules.