IInvesting in investment funds involves assuming a certain level of risk that will depend on the composition of each fund, market fluctuations and other factors associated with investing in securities, so there is a risk of losing all or part of your investment.
Credit risk
Due to the quality of the assets invested in, as well as the issuers of these assets. This is the risk that the issuer may not be able to make payments.
Market risk
This is the possibility that financial instruments will be listed or fall below the price we paid for them. In this regard, the investments may be affected by:
- Interest rate risk: interest rate fluctuations affect the price of fixed-income assets. Sensitivity to this risk depends on the duration of these assets.
- Currency risk: fluctuation of the exchange value in the case of assets denominated in currencies other than the share reference currency.
- Market risk due to investment in equities: arising from variations in the price of equity assets.
- Risk from investing in emerging markets: political changes or economic circumstances can affect the value of investments.
- Geographical or sectoral concentration risk: the concentration of our investment in a single area or sector increases market risk.
On investing in financial derivatives
Investing in derivatives (futures, options etc.) may entail a higher risk in view of the nature of these products.
Liquidity risk
The risk that no counterparty is found in the market and, therefore, a product cannot be sold.
Sustainability risk
These risks correspond to environmental, social or governmental events or conditions. Factors contributing to the sustainability risk of an investment will include the type of issuer, sector of activity, geographical location and more.
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