Risk Disclosure
Last Updated: 28/6/2026
"Mutual Fund investments are subject to market risks. Investors should consult a SEBI-registered financial advisor before making investment decisions."
When utilizing the analytics, backtesting engines, and projections on FundVision India, it is critical to understand the inherent risks involved with financial markets. All projected XIRR, CAGR, and simulated wealth paths shown on our platform are strictly based on historical data and probability models, and do not guarantee actual future returns.
Types of Risks
1. Market Risk (Systematic Risk)
This is the risk of the overall market declining due to economic, political, or social factors (e.g., recessions, geopolitical tensions). Even a perfectly diversified portfolio cannot eliminate market risk.
2. Interest Rate Risk
Primarily affecting debt and liquid funds. When RBI increases interest rates, the prices of existing bonds fall, which can lead to a drop in the NAV of your debt mutual funds.
3. Credit Risk
The risk that the issuer of a bond or debt instrument (which your mutual fund has invested in) may default on interest or principal payments.
4. Liquidity Risk
The risk that the fund manager may not be able to sell underlying securities quickly without taking a significant loss, or the risk that the AMC may temporarily halt redemptions during extreme market panic.
5. Inflation Risk
The risk that the returns generated by your mutual fund investments may not keep pace with the rate of inflation, resulting in a loss of actual purchasing power over time.
6. Taxation Risk
The risk that changes in the Indian Income Tax Act (such as changes to LTCG or STCG tax rates on equity or debt) may adversely affect the post-tax returns of your investments.