Risk Disclosure

Risk Disclosure Statement

Investing in financial instruments involves a high degree of risk. At Kadam Investment, we want you to be fully aware of the potential risks before allocating your capital to mutual funds.

1. Market Risk

The value of equity and debt mutual funds can fluctuate due to macroeconomic factors, political events, interest rate changes, and global market sentiment. Your principal investment is not protected and may deplete during market downturns.

2. Interest Rate Risk

Debt mutual funds are subject to interest rate risk. When interest rates rise in the economy, the prices of existing bonds fall, which can negatively impact the NAV of your debt fund.

3. Credit and Liquidity Risk

Debt funds may invest in corporate bonds that carry credit risk (the risk of default by the issuer). Additionally, in times of severe market stress, funds may face liquidity risks, making it difficult to exit positions without a significant impact cost.

4. Concentration Risk

Sectoral or thematic mutual funds invest heavily in a specific industry (e.g., IT, Pharma). If that sector underperforms, the fund's NAV will suffer significantly more than a well-diversified equity fund.

5. Regulatory Risk

Changes in SEBI regulations, income tax laws (such as revisions in LTCG or STCG tax rates), or monetary policies can affect the returns and tax efficiency of your mutual fund portfolio.