Tax saving mutual funds, being equity-oriented, carry market-related risks. Their returns are subject to stock market fluctuations, which can impact performance in the short term. While they offer the dual benefit of tax savings and capital appreciation, they are not guaranteed investments. Investors should be prepared for volatility and ensure their risk appetite aligns with the nature of tax saving mutual funds. Long-term investment can help mitigate risks and potentially offer better returns, but market research and diversification are important before investing.