This Risk Disclosure sets out the key risk factors applicable to mutual fund investments made through Caply, in accordance with the AMFI Code of Conduct for Mutual Fund Distributors.
Investors may lose part or all of the capital invested in a scheme. Equity, hybrid, debt, and other categories of schemes carry differing degrees of market, credit, interest-rate, and liquidity risk, and in adverse market conditions the value of the investment can fall below the amount originally invested.
Under certain market conditions, or in accordance with SEBI regulations, an AMC may restrict, suspend, or delay redemptions from a scheme, including through mechanisms such as gating or side-pocketing of distressed assets. Investors may not always be able to redeem their investment immediately or at the prevailing NAV.
In the event of a credit event affecting a debt or money-market instrument held by a scheme, the AMC may create a segregated portfolio in accordance with SEBI regulations. Investors in the affected scheme would then hold a proportionate interest in both the segregated and the main portfolio, and recovery of the segregated portion is not guaranteed.
A scheme may be wound up in the circumstances specified under the SEBI (Mutual Funds) Regulations, 1996, including on the happening of an event which, in the opinion of the trustees, requires the scheme to be wound up, or on the SEBI directing so in the interest of investors. On wind-up, investors will be paid out based on the scheme's NAV at that time, which may result in a loss compared to the amount invested.
Schemes offered during a New Fund Offer do not have a track record. Investors should evaluate the scheme's investment objective, asset allocation, and risk factors as disclosed in the SID before subscribing, and should not assume that units allotted at face value during an NFO will appreciate.
Category descriptions on this website (for example, labelling a category as 'high', 'moderate', or 'low' risk) are indicative and provided for general understanding only. The binding risk classification for any specific scheme is the Riskometer disclosed in that scheme's SID/KIM and on the AMC's own website, which investors should refer to before investing.
Caply (through CAPLY FINTECH LLP, a technology platform) and MoneyTrail Securities Private Limited (an AMFI-registered Mutual Fund Distributor, ARN-190417, EUIN E-105308) do not provide investment advice. Transactions made through the platform are execution-only. Investment decisions are made solely by the investor based on their own assessment, and investors are urged to read the SID, SAI, and KIM of the concerned scheme before investing.