Understand before you invest
AMFI risk factors
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing.
On this page
Read AMFI's current risk guidance
This overview helps you identify the questions to ask. AMFI's official resource and each scheme's current documents provide the detailed risk disclosures.
Risks to understand
Market and capital risk
The value of a mutual fund can rise or fall as markets and underlying securities change. You may lose part or all of the amount invested. Neither past performance nor a scheme's objectives guarantee future results.
Equity risks
Share prices can fluctuate with company performance, economic conditions, market sentiment and events. Concentrated portfolios, sectors and smaller companies can carry additional volatility and liquidity risk.
Interest-rate and credit risks
Debt security prices generally fall when interest rates rise. Issuers may fail to pay interest or principal, or face a rating downgrade. Changing credit spreads can also reduce the value of debt holdings.
Liquidity and counterparty risks
A scheme may be unable to sell a security promptly at a fair price. A counterparty may fail to fulfil its obligations. These risks can affect valuation, transactions and redemptions.
Prepayment and reinvestment risks
Debt may be repaid earlier than expected, changing cash flows. Income or returned principal may have to be reinvested at a lower rate.
Other scheme-specific risks
International investments may face currency and overseas-market risks. Derivatives, concentration, tracking error and product structure can create additional risks. Read the specific scheme documents rather than relying on a category name alone.
Before you invest
- Review the scheme and benchmark Riskometers, investment objective and portfolio.
- Consider your time horizon, ability to bear a loss and need to access the money.
- Check the total expense ratio (TER), exit load, lock-in and tax implications.
- Read the latest SID, SAI, KIM and any addenda. A regular plan and a direct plan have different cost structures.
i2 Finserv is a mutual fund distributor, not a SEBI-registered Investment Adviser. For personalised advice, consult a SEBI-registered Investment Adviser.
Understand SID, SAI and KIMi2 Finserv · Investor information
Last updated 5 October 2026