General market risk
The value of investments in securities markets can fall as well as rise. You may receive back less than you invested, and in adverse circumstances you may lose your entire capital.
Past performance is not indicative of future returns and does not guarantee future results.
Equity risk
Share prices fluctuate with company performance, sector conditions, macroeconomic factors, regulatory changes, liquidity, and market sentiment. Individual stocks can and do experience permanent capital loss.
Concentration in a single stock or sector materially increases the range of possible outcomes, in both directions.
Mutual fund risk
Mutual fund investments are subject to market risks. Read all scheme related documents carefully.
Different scheme categories carry materially different risk profiles. Equity schemes carry market risk; debt schemes carry credit risk and interest-rate risk; hybrid schemes carry both. Read the Scheme Information Document and the scheme's risk-o-meter before investing.
Exit loads, expense ratios and applicable taxation reduce realised returns relative to headline scheme returns.
Fixed income and bond risk
Bond prices move inversely to interest rates: a rise in prevailing rates reduces the market value of an existing bond. Longer-duration instruments are more sensitive to this effect.
Credit risk is the risk that the issuer fails to pay interest or repay principal. A credit rating is an opinion of the rating agency, can be downgraded, and is not a guarantee of repayment.
Liquidity in Indian corporate bond secondary markets can be thin, and exiting before maturity may require accepting a discount.
Corporate fixed deposit risk
Corporate and NBFC fixed deposits are unsecured obligations of the issuing company. Unlike bank deposits, they are not covered by DICGC deposit insurance.
A higher offered interest rate generally reflects higher credit risk. In the event of issuer default, recovery may be partial, delayed, or absent entirely.
Premature withdrawal is subject to the issuer's terms and may carry penalties or be unavailable.
Pre-IPO and unlisted securities risk
Unlisted and pre-IPO shares carry risks materially greater than listed equities. There may be no active market, no reliable price discovery, and no ability to exit at a time of your choosing.
There is no assurance that any company will complete an initial public offering, nor that listing will occur at or above the price you paid. Lock-in periods may apply under applicable regulations.
Disclosure standards for unlisted companies are lower than for listed companies, and information asymmetry is significant. These instruments are suitable only for investors who can bear a total loss of the amount invested.
Taxation
Tax treatment depends on your individual circumstances and on tax law in force, which may change. Nothing on this platform is tax advice. Consult a qualified tax professional.