Risks are to investing what students are to teachers — you can’t have one without the other. The basic CAPM formula, which is used to calculate the expected returns considers Beta, which is a parameter of risk. Thus, we can say that any and all investment vehicles are subjected to risks.
Mutual funds being no different are subjected to various types of risks not just the market risks, which you may have heard in the following statement:
“Mutual funds are subject to market risks. Read all scheme-related documents carefully.”
Below are the various types of risks, which mutual funds as an investment vehicle inherit
The Investors shall invest only on the basis of information contained in the draft prospectus/KIM’
“The information, analysis and estimates contained herein are based on NBWS Research assessment and have been obtained from sources believed to be reliable. This document is meant for the use of the intended recipient only. This document, at best, represents NBWS Research opinion and is meant for general information only. NBWS Research, its directors, officers or employees shall not in any way be responsible for the contents stated herein. NBWS Research expressly disclaims any and all liabilities that may arise from information, errors or omissions in this connection. NBWS Research, its affiliates and their employees may from time to time hold units of mutual funds referred to herein. This report does not support to be an offer for purchase of this bond issue.”
“Mutual Fund Investments are subject to market risk. Please read the offer document carefully before Investing.”