Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Volatility measures the degree of variation in an asset's price over time, often expressed as standard deviation of returns.
Volatility is how wildly prices swing up and down — high volatility means bigger daily or monthly moves, not necessarily bad long-term returns.
India VIX tracks expected Nifty volatility. Higher volatility increases short-term uncertainty but does not predict direction. Risk-averse investors may accept lower expected returns for lower volatility through debt or balanced funds.
A small-cap fund may swing ±5% weekly while a liquid fund moves ±0.05%. Same ₹5 lakh investment feels very different emotionally despite both being market-linked.
Volatility is one risk measure. Permanent capital loss and failure to meet goals are broader risk concepts not captured by volatility alone.
Add debt, gold, or hybrid funds; diversify across caps and sectors; avoid concentrated single-stock bets.
India VIX is the NSE volatility index — higher readings imply greater expected near-term Nifty swings, often spiking during market stress.