Investment risks

There are several types of risks that investors may encounter when investing their money including:

Market risk

The overall market will decline, affecting the value of all investments.

Credit risk

A borrower will default on a loan or bond.

Interest rate risk

Changes in interest rates will affect the value of an investment.

Liquidity risk

An investment cannot be bought or sold at its fair value because there are not enough buyers or sellers.

Inflation risk

The purchasing power of an investment's returns will be eroded by inflation.

Currency risk

Changes in exchange rates will affect the value of an investment.

Political risk

Government actions or events will negatively affect the value of an investment.

Operational risk

Loss resulting from inadequate or failed internal processes, systems, human errors, or external events.

Investors should consider these risks and their own risk tolerance when making investment decisions.

Important information and disclaimer

  • Any advice on this publication is of a general nature only and has not been tailored to your specific circumstances. Before taking action on this information, please seek your personal advice. Past performance is not a reliable guide for future returns. The information on this page reflects our understanding of the existing legislation, standards, etc.

    In some cases, the information has been provided to us by third parties. While the information is believed to be accurate and reliable, but this is not guaranteed in any way.

  • Neither AIFP nor its responsible persons or employees give any warranty of accuracy, nor accept any responsibility for errors or omissions in the information provided on this page.