Risk · Disclosures
Understanding investment risks.
Every investment carries risk. This page describes the principal risks associated with the products distributed through Accrue — in plain terms first, in full below.
At a glance — the risk categories
Mutual fund risk
NAVs move with the market. No scheme's objective is guaranteed.
02Market risk
Equity values swing with sentiment, rates, and events.
03Credit risk
An issuer may default or be downgraded on debt holdings.
04Liquidity risk
Some funds and AIF/PMS strategies can't be exited on demand.
05Interest rate risk
Rising rates generally push existing bond prices down.
06Concentration risk
Sector and thematic bets carry more risk than diversification.
07Currency & global risk
Overseas exposure adds FX, country, and regulatory risk.
08Regulatory & tax risk
Rules and tax treatment can change and affect returns.
09Inflation risk
Returns may not outpace the rising cost of living.
10Alternative investments
PMS/AIF carry lock-ins, leverage, and higher minimums.
General disclaimer
Accrue Finvisor LLP (“Accrue”) is an AMFI-registered Mutual Fund Distributor (ARN 162637). Accrue distributes investment products and earns distribution commissions from product manufacturers. Nothing on this website constitutes personalised investment advice, a recommendation to buy or sell any security, or an offer or solicitation to purchase any financial product. All content is for general informational and educational purposes only. Investment decisions should be made after consulting a qualified financial adviser and reading all scheme-related documents carefully.
Mutual fund risks
Mutual fund investments are subject to market risks. The value of mutual fund units can fluctuate based on changes in market conditions, economic developments, and other factors. There is no assurance or guarantee that the investment objective of any scheme will be achieved. Past performance of a scheme is not indicative of its future performance. The NAV of units may go up or down depending on factors and forces affecting the securities markets, including but not limited to changes in interest rates, trading volumes, settlement periods, and transfer procedures. Please read all scheme-related documents carefully before investing.
Market risk
The value of investments may decline due to general market conditions, economic and political developments, changes in interest rates, changes in investor sentiment, and other factors that affect securities markets. Equity investments are particularly susceptible to market volatility. Events affecting specific companies, sectors, or the broader economy may cause the value of investments to fall.
Credit risk
Debt and fixed-income investments are subject to the risk that the issuer may default on interest payments or fail to repay the principal amount. Credit risk is higher for lower-rated or unrated securities. Downgrades in credit ratings can lead to a decline in the value of debt securities.
Liquidity risk
Certain investments may not be readily marketable or redeemable at fair value. During periods of market stress, liquidity may reduce significantly. Some mutual fund categories, including small-cap funds, sectoral funds, and credit risk funds, may face liquidity constraints. Alternative investments such as AIFs and PMS strategies may have extended lock-in periods during which your investment cannot be redeemed.
Interest rate risk
Debt mutual fund NAVs are sensitive to changes in interest rates. When interest rates rise, the prices of existing debt securities generally fall, and vice versa. The extent of this impact depends on the duration and maturity profile of the underlying securities. Longer-duration portfolios are generally more sensitive to interest rate changes.
Concentration risk
Investments concentrated in a single sector, theme, or a small number of securities may carry higher risk than diversified investments. Sector-specific or thematic funds are more vulnerable to events affecting that particular sector or theme. This includes but is not limited to regulatory changes, technological disruption, and cyclical downturns.
Currency and international risk
Investments with international exposure, including international funds, funds investing in overseas securities, and GIFT City-based funds, are subject to currency risk. Fluctuations in exchange rates between the Indian rupee and foreign currencies can affect returns. International investments are also subject to country risk, political risk, regulatory risk, and differences in accounting standards and market practices.
Regulatory and tax risk
Investment products are subject to the regulatory framework of SEBI, RBI, and other statutory authorities. Changes in tax laws, regulations, or government policies can affect the returns on investments. Tax treatment of investment income and capital gains may change. Investors should consult their tax advisers regarding the tax implications of their investments.
Inflation risk
Returns on investments may not keep pace with inflation, resulting in a reduction in the real value (purchasing power) of the investment over time. This risk is particularly relevant for conservative investments with lower expected returns.
Risks specific to alternative investments
PMS, AIFs, and structured products carry risks beyond those of mutual funds, including higher minimum investment thresholds, limited liquidity, longer lock-in periods, complex fee structures (including performance fees), leverage risk, and concentration risk. These products are suitable only for investors who meet the eligibility criteria prescribed by SEBI and the respective product manufacturers and who have the financial capacity to absorb potential losses.
No guarantee of returns
No investment distributed by Accrue carries a guarantee of returns. Neither Accrue nor the product manufacturers guarantee the capital, returns, or performance of any investment. Statements about expected returns, target returns, or modelled outcomes are illustrative and do not constitute a promise or assurance. The phrase “wealth creation” or “long-term growth” as used on this website does not imply guaranteed appreciation in value.
Suitability
The suitability of any investment depends on your individual financial situation, investment objectives, risk tolerance, time horizon, and tax status. What is appropriate for one investor may not be appropriate for another. Accrue encourages all investors to seek independent professional advice before making investment decisions. We are available to discuss product features, risks, and historical performance to assist your decision-making, but this does not constitute personalised investment advice.
SEBI and AMFI mandatory statements
“Mutual Fund investments are subject to market risks, read all scheme related documents carefully.”
“An investor education and awareness initiative by Accrue Finvisor LLP (AMFI-registered Mutual Fund Distributor, ARN 162637).”
The same is applicable for any content related to PMS, AIF, or other investment products distributed by Accrue, in accordance with the regulations of the respective regulatory bodies.
Grievance and escalation
For concerns about product suitability, risk disclosure, or the distribution process, write to us first — most matters are resolved directly.
Unresolved complaints can be escalated to the regulator.