Investing carries risk. Different instruments carry different kinds of risk, and the same instrument can mean very different things at different points in time. This page is an educational overview — not a regulatory disclosure from ShiriInvest, which is not yet AMFI-registered.
1. Market risk
The value of equity and equity-linked investments will fluctuate, sometimes sharply, in response to economic, political, business and global events. Past performance is not a reliable indicator of future performance.
2. Credit risk
Debt instruments are exposed to the risk that the issuer fails to pay interest or principal on time. Higher-yielding debt typically carries higher credit risk.
3. Interest-rate risk
Prices of debt instruments move inversely with interest rates. Long-duration bonds are more sensitive to rate changes than short-duration instruments.
4. Liquidity risk
In stressed market conditions, even otherwise liquid instruments can become difficult to sell at fair value. Mutual fund schemes can, in extreme situations, restrict redemptions for short periods.
5. Concentration risk
Portfolios concentrated in a single stock, sector, geography or theme can swing dramatically when the underlying narrative shifts.
6. Currency risk
International funds and assets denominated in foreign currencies are subject to changes in exchange rates, separate from changes in the underlying asset price.
7. Inflation risk
Returns that look acceptable in nominal terms can underperform once inflation is accounted for. Long-horizon goals especially require inflation-aware planning.
8. Behavioural risk
Selling during corrections, chasing recent winners, and stopping SIPs at the wrong time can do more damage to a portfolio than the underlying instruments themselves.
9. Tax and regulatory risk
Tax laws, expense ratios, exit-load rules and regulatory changes evolve over time. Outcomes may differ from assumptions made today.
Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing through any registered distributor.