Mutual Fund investments are subject to market risks, read all scheme related documents carefully before investing. This standard warning applies to every scheme distributed through KM Investment, regardless of category or Riskometer rating.
The value of a mutual fund scheme’s underlying investments — equities, bonds, or a mix — can rise or fall due to overall market movements, economic conditions, interest-rate changes and company or sector-specific developments. Equity-oriented schemes are typically more exposed to short-term market volatility than debt-oriented schemes.
Debt-oriented schemes are exposed to credit risk (the risk that a bond issuer delays or defaults on payment) and interest-rate risk (the risk that rising interest rates reduce the market value of existing bonds). Schemes holding lower-rated instruments generally carry higher credit risk in exchange for potentially higher yield.
Some underlying securities held by a scheme may be difficult to buy or sell quickly at a fair price, particularly during periods of market stress. This can affect a fund’s ability to meet redemption requests smoothly, and may occasionally affect NAV calculation.
Schemes that invest heavily in a single sector, theme or a small number of companies carry higher concentration risk than diversified, multi-sector schemes — a downturn affecting that specific sector or company can have an outsized impact on the scheme’s value.
NRI investors converting funds between foreign currency and Indian Rupees are additionally exposed to currency exchange rate fluctuations, which can affect the real, home-currency value of returns, independent of how the underlying mutual fund scheme performs in Rupee terms.
Every mutual fund scheme carries a SEBI-mandated Riskometer, ranging from “Low” to “Very High,” disclosed in its factsheet and updated periodically. Please check a scheme’s current Riskometer rating and satisfy yourself that it matches your own comfort with risk before investing. Read more in our blog post, Mutual Fund Riskometer, explained.
Any scheme category or fund discussed on this website, in our blog, or in conversation with our team is shared for informational purposes and does not constitute a personal recommendation. Suitability depends on your individual financial situation, goals and risk appetite, which only you (optionally with a qualified adviser) can fully assess. KM Investment, as a mutual fund distributor, does not undertake a formal suitability assessment in the way a SEBI Registered Investment Adviser would.