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Major types of investment risk

Interest rate risk: It is the risk that the value of an investment with MCX tips will decrease due to a rise in interest rates. The value of a fixed-return investment decreases when interest rates go up and increase when interest rates go down.

Business failure risk: It is the risk of failure of a business or the losing up of investment will or that the business will be less profitable than expected.

Market price risk: It is the risk of prices of the investments going down. Various factors affect whether the price of an investment will go up or down. Investors with proper trading tips can consistently predict the ups and downs of the market.

Inflation risk: It is the loss of financial power of an asset and losing the value due to market variations for a longer term, due to a general rise in prices of goods and services. Market researchers give an option to protect the investment in the commodity market to an investor during the times of inflation.

Political risk: It is the risk which affects the investments due to the government actions such as taxes and applying new government policies.

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