Market risk or Systematic Risk: It refers to the risk faced by investments due to factors affecting the overall performance of securities and general economy of the country.
Unsystematic Risk: Unsystematic risk can be described as the risk attached with a particular company or industry.
Inflation Risk: Inflation risk is also called as purchasing power risk. It is defined as the chance that the cash flows from an investment would lose their value in future because of a decline in its purchasing power due to inflation.
Liquidity Risk: Liquidity risk arises when an investment can’t be bought or sold quickly enough.
Business Risk: It refers to the risk that a business of a company might be affected or may stop its operations due to any unfavorable operational, market or financial situation.
Volatility Risk: Volatility risk arises as the Companies’ stock prices may fluctuate over time.
Currency Risk: It refers to the potential risk of loss from fluctuating foreign exchange rates that an investor may face when he has invested in foreign currency or made foreign-currency-traded investments.