Understanding Risk and Volatility – a primer

RISK AND VOLATILITY

“The markets are so volatile. Isn’t it risky to invest now?”

If you are an investor in stocks or mutual funds, this is a likely thought that must have crossed your mind recently.

Let me ask you, “What’s actually worrying you – the volatility or the risk?”

If this has got you to wonder as to which of the two, risk and volatility, is your real concern, then this post is for you. Let’s understand them better.

Reintroducing Risk and Volatility

With respect to investments, risk is the chance that you may lose some or all of your investment amount permanently.

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