Market Risk: Mutual funds are susceptible to market fluctuations due to economic developments, political conditions, and investor sentiment, which can affect their investment value
Liquidity Risk: Some mutual funds, especially those with long lock-in periods, may pose challenges in redeeming investments without incurring losses
Credit Risk: If issuers of securities within a mutual fund default on payments, investors may face losse
Inflation Risk: When returns on mutual fund investments fail to outpace inflation, the purchasing power of returns diminishes over time
Interest Rate Risk: Fluctuations in interest rates can inversely affect the value of bonds within debt mutual funds, impacting overall returns