Fund risk terms

1. Market risk: The risk that the value of an investment will decrease due to changes in the overall market conditions, such as economic downturns, interest rate fluctuations, or geopolitical events. 2. Credit risk: The risk that a borrower or issuer of debt securities will default on their payments, leading to a loss of principal or interest for the investor. 3. Liquidity risk: The risk that an investment cannot be easily bought or sold without causing a significant change in its price, leading to potential losses for the investor. 4. Interest rate risk: The risk that changes in interest rates will have a negative impact on the value of fixed-income investments, such as bonds or loans. 5. Inflation risk: The risk that the purchasing power of an investment will decrease due to a rise in the general price level, leading to a reduction in real returns for the investor. 6. Currency risk: The risk that changes in foreign exchange rates will have a negative impact on the value of investments denominated in foreign currencies. 7. Political risk: The risk that changes in government policies or regulations will have a negative impact on the value of investments, particularly in emerging markets or unstable political environments. 8. Systemic risk: The risk that a shock to the financial system, such as a banking crisis or market crash, will have widespread negative effects on the value of investments. 9. Concentration risk: The risk that a portfolio is overly concentrated in a particular sector, asset class, or investment, leading to potential losses if that area experiences a downturn. 10. Volatility risk: The risk that the price of an investment will fluctuate significantly over a short period of time, leading to potential losses for the investor.