The standard warning
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
You will see this warning on mutual fund communications in India. It means that the value of your investment moves with the markets, and that the scheme documents, not a conversation or a web page, are the authoritative description of what you are buying.
No guarantee of returns or capital
- Mutual funds are not guaranteed or assured return products.
- The value of your units can go down as well as up, and you can get back less than you invested.
- Mutual fund units are not bank deposits and are not covered by deposit insurance.
- Neither I Tag Financials nor any AMC, sponsor or trustee guarantees the performance of a scheme.
- No employee or representative of I Tag Financials is authorised to indicate or promise a return. If anyone does, please report it to us using the grievance process.
Main types of risk
| Risk | What it means |
|---|---|
| Market risk | Prices of shares and bonds change every day with company results, the economy, politics and global events. Equity-oriented schemes can fall sharply and stay down for long periods. |
| Interest rate risk | When interest rates rise, the prices of existing bonds usually fall. Debt schemes holding longer-dated bonds are affected more. |
| Credit risk | A company or institution that issued a bond may delay or fail to pay interest or principal. This can cause a loss in a debt or hybrid scheme, and the AMC may segregate the affected holding. |
| Liquidity risk | In stressed markets a scheme may be unable to sell holdings quickly at a fair price. In rare cases redemptions can be restricted, or a scheme can be wound up. |
| Concentration risk | Schemes focused on one sector, theme or a small number of holdings can be more volatile than diversified schemes. |
| Currency and country risk | Schemes investing overseas are affected by exchange rates and by events in other countries. |
| Inflation risk | A low-volatility scheme may still grow more slowly than prices rise, reducing what your money can buy. |
| New fund offer risk | A new scheme has no track record, and its portfolio is not known in advance. |
This list is a summary. Each scheme's own risk factors are set out in its Scheme Information Document.
Riskometer and scheme documents
Every scheme carries a riskometer, a dial published by the AMC that shows the level of risk to your principal. Check the current riskometer before investing, because it can change over time.
Before you invest, read the scheme's:
- Scheme Information Document (SID),
- Statement of Additional Information (SAI), and
- Key Information Memorandum (KIM).
These are published by the AMC. We will provide them or point you to them for any scheme we discuss with you.
Past performance
Past performance is not indicative of future returns. A scheme that has done well may do poorly in future, and the reverse. We do not publish scheme rankings or performance figures on this website.
SIPs and risk
A Systematic Investment Plan (SIP) spreads your purchases over time. It does not remove market risk, does not assure a profit and does not protect against loss in a falling market.
Costs, exit loads and tax
Every scheme charges an expense ratio, which reduces your return. Some schemes charge an exit load if you redeem within a set period. Gains may be taxed, and tax rules change. Tax-saving schemes have a lock-in period during which you cannot redeem. We do not give tax or legal advice; please consult a qualified professional for your own position.
Calculators on this website
Our calculators work out a figure from an assumed rate, which starts as a placeholder that you can change. The result is an arithmetic illustration. It is not a forecast, not a projection for any scheme and not a promise of what you will receive.
What you should do
- Invest only after you understand the scheme and its risks.
- Match the scheme to your own goal, time horizon and ability to bear a fall in value.
- Ask us how we are paid. See our Commission & Conflict Disclosure.
- Know that a lower-cost direct plan is generally available.
- Keep your contact details, bank details and nomination up to date with the AMC.
Risk disclosure: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance is not indicative of future returns. Mutual funds do not offer guaranteed or assured returns. Figures shown are illustrative, based on assumed rates that you can change, and are not a forecast of any scheme.
About this document: It is published by I Tag Financials (Green Outdoors Global Private Limited), AMFI-registered Mutual Fund Distributor (ARN-319081), for transparency. It is not legal advice. For legal interpretation, please consult a qualified legal professional. Questions about this page can be sent to itagfin@gogpl.in.