Please note that investing in securities involves various types of risks that may impact investments. Key risks that can affect all asset classes inter alia include changes in:

Market volatility
General market conditions
Trading volumes/liquidity and settlement periods
Interest rates
Rate of inflation
Domestic and/or global political, economic and financial developments
Policies and/or legal and regulatory frameworks by government and other appropriate authorities

Asset class-specific risks inter alia include:

Risks related to Equity and Equity Linked Investments (ELIs) include:
- Equity shares and equity related instruments are volatile and prone to price fluctuations on a daily basis. The price of securities may be affected by factors, such as price and trading volume volatility, currency exchange rates, company specific news and rumours, etc. Midcap and smallcap stocks generally exhibit higher volatility compared to largecap stocks.
Risk related to investment in Debts, Bonds and Money Market Instruments
- Interest Rate Risk: Changes in interest rates may affect valuation of securities, as the prices of securities generally increase as interest rates decline and generally decrease as interest rates rise. Prices of long-term securities generally fluctuate more in response to interest rate changes than prices of short-term securities.
- Credit Risk: Credit risk refers to the risk that an issuer of a fixed income security may default or be unable to make timely principal and interest payments on the security. Normally, the value of a fixed income security will fluctuate depending upon the changes in the perceived level of credit risk as well as any actual event of default.
- Liquidity Risk: The liquidity of a bond may change, depending on market conditions leading to changes in the liquidity premium attached to the price of the bond. At the time of selling the security, the security can become illiquid.
Risk related to exposure to Equities, Debt and Commodity through Exchange Traded Funds (ETFs)
- Sector/Index Risk: ETFs that track specific sectors or indices are exposed to concentration risks. Adverse performance in those sectors or indexes can significantly impact returns.
- Tracking Errors: While ETFs aim to mirror their benchmark, they may not perfectly track the concerned benchmark, leading to performance deviations due to factors like expenses or liquidity constraints of the underlying constituents of the ETF.
- Liquidity Risk: In volatile markets, liquidity for certain ETFs may be low, making it harder to buy or sell units without affecting the price significantly.
Risk related to Commodity related Instruments
- Risk related to commodity (including gold and silver) related instruments are affected by several factors. The price of a commodity may be affected by factors including its demand-supply dynamics in domestic and global markets, restrictions on the movement/trade of the commodity in domestic and global markets, Indian and foreign exchange rates, large scale transactions in the commodity by governments, central banks and other major institutions, etc.
Risk related to investments in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)
- Sector Risk: Changes in the real estate and infrastructure sector including changes in applicable laws and regulations can affect the price and volatility of securities/instruments of REITs and InvITs.
- Interest Rate Risk: REITs/InvITs usually secure loans at the trust level and subsequently distribute the amount among the underlying special purpose vehicles (SPVs). In case of a rising interest rate environment, debt payment increases for the trust and adversely impacts the cash flow for unitholders. This in-turn reduces cash flow-based valuations of REITs/InvITs.
- Credit Risk: Credit risk refers to the risk that an issuer of a REIT/InvIT security/instrument may default on interest payment or even on paying back the principal amount on maturity. Further, valuations may be affected by change in the credit rating assigned to the REIT/InvIT and their SPVs by credit rating agencies.
- Asset Transfer/Acquisition Risk: The valuation of REITs/InvITs heavily depend on the underlying assets held by the trust. There is a risk that the transfer or acquisition of these assets, which often relies on sponsors/management commitments, may not materialise as planned. If the assets are not transferred or acquired, the valuation of the trust and future cash flows may be significantly impacted.
- Risk of lower than expected Distributions: The distribution by a REIT/InvIT will be based on the net cash flows available for distribution. The amount of cash available for distribution principally depends upon the amount of cash that the REIT/InvIT receives as dividends or the interest and principal payments from portfolio assets.

In the light of the risks involved, you should transact in securities only after understanding the associated risks. Please consider and assess all risk factors and your risk tolerance before making investment decisions.