Himani Verma
Volatility serves as a gauge for market performance, helping investors understand potential returns and risks.
It highlights the variability of returns, allowing investors to evaluate the risk associated with their investments.
Higher volatility can present buying and selling opportunities, enabling investors to capitalise on price fluctuations.
Understanding volatility helps in creating a diversified portfolio, balancing risks across different asset classes.
Embracing volatility can encourage a long-term investment perspective, reducing the temptation to react impulsively to short-term market movements.
Compiled By Himani Verma