Market Risk Factor

Market risk factors refer to the potential for losses in investments due to changes in market conditions. These factors include interest rates, inflation, economic downturns, and geopolitical events that can affect the overall market performance. For example, if a country's economy weakens, it can lead to declining stock prices. Investors need to be aware of these risks as they can impact the value of their investments, regardless of the specific company or asset they hold. Understanding market risk helps individuals make informed decisions to manage their investment portfolios effectively.