Risk Disclosure
Understanding the risks associated with different investment products.
All investments carry risk. The value of investments may go up or down. You may receive less than you invested. Please read this risk disclosure carefully and consult a qualified financial advisor before investing.
Equity Mutual Funds
- ⚠Market risk: NAV can fall significantly in bear markets
- ⚠Concentration risk for sectoral funds
- ⚠Currency risk for international funds
- ⚠Liquidity risk for small-cap funds
Debt Mutual Funds
- ⚠Credit risk: Issuer may default
- ⚠Interest rate risk: Rising rates reduce NAV
- ⚠Liquidity risk in credit risk funds
- ⚠Reinvestment risk for short-duration funds
NBFC Fixed Deposits
- ⚠Credit risk: NBFC may default (no DICGC insurance)
- ⚠Liquidity risk: Premature withdrawal may carry penalty
- ⚠Regulatory risk: Changes in RBI norms
- ⚠Inflation risk: Returns may not beat inflation
Corporate Bonds
- ⚠Default risk: Issuer may fail to pay coupons/principal
- ⚠Interest rate risk: Market value falls when rates rise
- ⚠Liquidity risk: Limited secondary market
- ⚠Rating downgrade risk
Gold & Silver ETFs
- ⚠Market price risk: ETF value falls if gold/silver prices decline
- ⚠Liquidity risk during exchange trading halts
- ⚠Expense ratio reduces net returns over time
- ⚠No additional interest income unlike discontinued SGBs
- ⚠Currency risk for internationally priced commodities
Capital Gain Bonds (54EC)
- ⚠Interest rate risk: Locked at ~5% for 5 years — opportunity cost if rates rise
- ⚠Liquidity risk: Non-transferable, no early redemption before 5 years
- ⚠Inflation risk: Interest rate may not beat inflation
- ⚠Credit risk: Minimal — issuers are government-backed, but not sovereign guarantee
- ⚠Interest income is fully taxable as per investor's slab
US Equity (Funds, ETFs & Direct)
- ⚠Currency risk: INR appreciation reduces USD-denominated returns
- ⚠Regulatory risk: SEBI overseas investment limits can restrict fund subscriptions
- ⚠Country/geopolitical risk: US Fed policy and macro events affect valuations
- ⚠Withholding tax on US stock dividends (typically 25%, reducible under DTAA)
- ⚠TCS of 20% applies on LRS remittances above ₹7L (claimable in ITR)
- ⚠Liquidity risk for thematic funds with concentrated US sector exposure
This risk disclosure is not exhaustive. Investors are advised to read all scheme information documents, product brochures, and terms carefully before investing. For personalized risk assessment, please contact our advisor.