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City of London Investment Trust
City of London Investment Trust

Financial services / Investment trust

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Risks

1. Market Risk: The City of London Investment Trust is an equity-based investment vehicle, which means it is exposed to fluctuations in the stock market. This means investors can potentially lose money if the markets decline.


2. Management Risk: The City of London Investment Trust is actively managed, which means there is a risk the portfolio managers may make decisions which do not result in the desired return.


3. Currency Risk: The City of London Investment Trust is invested in multiple currencies, which means it is exposed to fluctuations in currency exchange rates. This can potentially lead to a loss in value for the trust's investments.


4. Interest Rate Risk: The City of London Investment Trust is exposed to movements in interest rates, which could lead to losses if the interest rates decline. The trust also faces the risk of investments losing value if the prices of fixed-income securities decline.


5. Liquidity Risk: The City of London Investment Trust is exposed to liquidity risk, which means that the hard-to-sell investments in the portfolio could result in the inability to withdraw funds for a specific period of time.


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