Risk Disclosure Statement
Investing in Fixed Income securities involves specific risks. By using this platform, you acknowledge the following:
Warning: Bonds are not risk-free. While they are generally safer than equities, capital loss is possible.
1. Credit Risk (Default Risk)
The issuer may fail to pay interest or repay the principal. Corporate bonds carry higher credit risk than Government Securities (G-Secs).
2. Interest Rate Risk
Bond prices are inversely related to interest rates. If interest rates rise, the market price of your existing bonds may fall.
3. Liquidity Risk
Secondary markets for certain corporate bonds in India can be illiquid. You may not be able to sell your bond instantly at a fair price if you need emergency funds.
4. Reinvestment Risk
If a bond is called back (redeemed early) by the issuer, you may have to reinvest your principal at a lower interest rate.