Bharti AXA INSURANCE GLOSSARY Market Risk The possibility that an investor could experience losses due to factors that impact whole financial market is known as market risk. It is a systematic risk that cannot be managed through diversification within the market, though you can hedge against it in other ways. The sources of market risk include economy-wide recession, political turmoil, terrorist attacks and other macroeconomic factors. The main types of market risks are: Interest rate risk: This risk is most relevant to investments made in debt-based securities such as bonds. It results from the volatility of interest rates arising from factors like changes in the monetary policy. For example, a cut in the repo rate may impact the pension earned by retirees who are invested in fixed-income instruments. Equity risk: this is the risk arising from volatility of stock prices Commodity risk: is the risk arising from volatility of commodity prices. For example, an increase in import duty can result in the costs going up. Currency risk: Also known as exchange-rate risk arises from the change in the price of one currency in relation to another. For example, the uncertainty around Brexit resulted in a fall of the value of British Pound against Indian Rupee. Request Call Back Category * - Select -CarTwo WheelerHealthTravelPersonal Accident Buy Renew Claim submit Related Posts Disclaimer : The information published on this website is for the public's reference only. Content of this information is to provide an overview of your Travel needs and should not be relied upon for personal, medical, legal or financial decisions and you should consult an appropriate professional for specific advice. Bharti AXA General Insurance Company Limited makes no representations about the suitability, reliability, timeliness, and accuracy of the information, travel, services, or any other items mentioned on this subject for any purpose whatsoever.