Equity may be volatile, but it’s not risky in the long term4 min read . Updated: 31 May 2015, 07:11 PM IST
We should understand is that volatility in stocks is not the same as risk
When markets turn volatile, as they sometimes do, avoid panicking. Keep calm, and keep stocking up equity assets. Risk is generally seen as the probability of a loss in any asset class. In finance, however, risk is usually seen as volatility in an asset class in relation to other asset classes, say, equities to fixed deposits. So, greater the volatility, riskier is the security—that’s the common theme.
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