There is no investment in the world is risk free. Though mutual funds offer wider diversification and value-for-money to an individual, there are a few risks associated with investing in mutual fund. Investors should know that CWT Emerging Bangladesh Growth Fund is not a guaranteed or assured return scheme and the past performance of the Sponsor and their affiliates / AMC does not guarantee future performance of the Scheme. The name of the Scheme does not in any manner indicate either the quality of the Scheme or its prospects and returns. When investing in the Fund, investors should carefully consider the risk factors outlined below, which are not necessarily exhaustive or mutually exclusive:
Due to the fluctuation of the price / value / interest rates of the securities in which Scheme invests, the value of investment in the Scheme may go up or down depending on the various factors and forces affecting the capital markets and money markets. There is no guarantee that the Fund will be able to meet its investment objective. Unitholders may incur absolute and relative losses, including loss of principal, when investing in the Fund. Investors should study this Offer Document carefully before investing. Government policy and tax laws may change, affecting the return on investments of the fund, which may eventually affect the NAV and return of the Units.
Issuer risk arises from corporate governance risk, management malfeasance, accounting irregularities, unfavorable changes in management team or management strategy leading to corporate under-performance. Such risks can develop in an unpredictable way where corporate insiders have way more information in their custody than the public investors including the fund manager. Hence such risks can only be partially mitigated by thorough research or due diligence. To the degree that the Fund is exposed to a security whose value declines due to issuer risk, the Fund’s value may be impaired.