Mutual fund advertisements that end with "Mutual funds investments are subject to markets risks, please carefully read all scheme-related documents" are unlikely to have been missed. These are the risks mutual funds face:
Fixed income securities are a type of debt fund that invests in fixed rate securities. This can expose them to interest rate risk from changes in interest rates.
This applies to mutual fund underlying fixed-income securities. A bond issuer that cannot repay a bond may make it a useless investment.
Mutual funds are convenient for investors, but they cannot decide the composition of a fund's fund portfolio or influence the selection of securities that the fund manager can purchase. Investors should also be aware of regulatory changes and risks while investing.
Diversification is key to reducing risk. Mutual funds offer diversification which can offset losses in some securities by gains in other.