Key Investment Risks
The following list of risks is exhaustive but not limited to the risks mentioned below:Issuer/Counterparty Risk: If the Issuer/Counterparty provider becomes insolvent, you may lose some or all of your invested capital.
Market Risk: Investments tied to stock market performance may result in financial losses if the market does not perform as expected.
Product Risk: Different investment products come with varying risks. Some may limit potential returns or restrict reinvestment opportunities.
Liquidity Risk: Some investments cannot be sold or exited early, meaning your capital may be locked in for a fixed period.
Diversification Risk: Relying on a small number of investments increases the risk of significant losses. Diversifying across different asset classes (e.g. stocks, bonds) can help reduce risk.
Inflation/Interest Rate Risk: Inflation can erode the real value of investment returns over time, and changing interest rates may impact investment performance.
Taxation Risk: Tax rules, rates, and regulations may change, potentially affecting the benefits or returns of your investment.
Cancellation Risk: If you or the provider cancel an investment, you may face financial consequences, including loss of potential returns or exit penalties.
