Types of investment risks

Liquidity risk

This is the risk of you not being able to convert your investments into cash at short notice.

Market risk

The short-term market ups and downs can create the risk of not being able to meet your goals on time or give negative returns.

Default risk

Your debt investment principal and interest might not be paid by the company.

Interest rate risk

The changes in interest rates can impact your returns.

If you expect more returns, you might have to take more of these risks. The type of risk depends on the chosen investment product.

For example, if you have invested in debt or bonds, you might face more liquidity and interest rate risks. Or, in the case of equity investments, you might have to take more market risk.

Points to remember:

This is the risk of you not being able to convert your investments into cash at short notice.
The more you grow older or move towards retirement, the lesser is your capacity to take risks.
If you expect more returns, you might have to take more of these risks. The type of risk depends on the chosen investment product.

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