The first one is known as market risk. A situation where the value of investment might decline as a result of prevailing economic conditions or any other occurrences that tend to affect the market negatively. Thus, in this category, such risks include equity risk, which mostly applies to shares, where the value might increase or drop, rate of interest mostly in bonds, where it might fluctuate leading to a drop or increase in its market value. Currency risk involves foreign investments in terms of fluctuations in the exchange rate.