My SIP Planner
Investment risk disclosure
This page summarises categories of risk that apply to market-linked investing in general. It does not describe any single scheme; read each scheme’s SID, KIM, and riskometers from the AMC.
Last updated 29 April 2026
General principle
All investments carry risk of loss of capital. Higher potential returns usually sit alongside higher potential volatility. Past performance, rankings, or hypothetical calculator curves do not guarantee future results.
Market (systematic) risk
Equity and many hybrid funds are exposed to broad market movements—policy changes, global flows, earnings cycles, and sentiment can move NAVs sharply. Diversification reduces single-stock risk but does not remove market risk.
Interest-rate and duration risk (debt funds)
Debt mutual funds are not fixed deposits. NAVs can move when interest-rate expectations change. Longer duration strategies can swing more than very short categories. Credit events can also affect certain portfolios.
Liquidity and exit constraints
Some structures may impose exit loads, lock-ins (for example ELSS), or gating in stress scenarios depending on product rules. Always read exit terms before investing.
Concentration and single-asset risk
Over-allocating to one asset class, sector, or theme increases vulnerability to a single shock. Asset allocation and periodic review are part of risk management—not optional extras.
Behavioural risk
Panic selling after drawdowns, performance chasing, and frequent switching often harm outcomes more than modest fee differences. Written plans and emergency liquidity reduce forced decisions.