In order to make you feel comfortable for investment, we are obligated to disclose all the risks.  Stock market investment by nature is always volatile and there is no guarantee for fixed income.

Some of the risks are -- market risk, natural event risk, interest rate risk, purchasing power risk, call risk, prepayment risk, reinvestment risk, political risk, currency exchange risk, unsystematic risk, business risk, credit / default risk and Liquidity risk.

• Market risk - is a type of systematic risk which affects securities across the board due to market swings.
• Natural Event risk - is risk of natural disaster like tsunami, earthquake, hurricane, etc that affects markets on a short term basis
• Interest Rate risk - is unlike stock it is mathematical affecting bond prices adversely. In a typical environment, when interest rate rises, prices of bonds goes down
• Purchasing Power Risk -sometimes called inflation risk. Inflation erodes the value of money.  For investor's having fixed return will have less of a buying power over time due to inflation.
• Call Risk - this pertains to bonds when they are called back when the interest rates goes down and a bond might be called back during period of declining interest rate
• Prepayment Risk - is basically the form of call risk that comes with owning a mortgage-backed security. People holding mortgage note issued by GNMA or FNMA and when interest rate goes down and they want to refinance, these people take a hit of prepayment for paying of debt early.
• Reinvestment Risk - buying and selling investment risk to redeploy cash. You never know sometimes what ROI can get, so is the risk
• Political Risk - this is critical when you have to invest into emerging market when different parties come and they may have fair trade policies or may have closed market policies
• Currency Exchange Risk - this is when you have a global investments and your net ROI highly depends on the value of dollar against that currency
• Unsystematic Risk - relates to a particular issuer or industry space, as opposed to overall market.
• Business Risk - this is specific to that business and due to competition and or technology changes, there is a business risk of obsolescence
• Credit / Default Risk - is the risk that issuer of a bond will be unable to pay interest and or return principal to the bondholders.

Our philosophy for gain is - no risk no gain.  Our goal is to educate you so you become risk averse investor.  Once you are educated investor, you eliminate the fear of unknowns and become prudent making right decision selecting right products that will have a potential of giving you high return on investments.