{"id":718,"date":"2026-05-25T11:35:24","date_gmt":"2026-05-25T06:05:24","guid":{"rendered":"https:\/\/prodigypro.co.in\/blog\/?p=718"},"modified":"2026-05-25T11:37:08","modified_gmt":"2026-05-25T06:07:08","slug":"what-is-market-risk-in-investing","status":"publish","type":"post","link":"https:\/\/prodigypro.co.in\/blog\/what-is-market-risk-in-investing\/","title":{"rendered":"What is Market Risk in Investing? Everything You Need to Know"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/05\/Market-Risk-1024x576.webp\" alt=\"Market Risk\" class=\"wp-image-719\" srcset=\"https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/05\/Market-Risk-1024x576.webp 1024w, https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/05\/Market-Risk-300x169.webp 300w, https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/05\/Market-Risk-768x432.webp 768w, https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/05\/Market-Risk-1536x864.webp 1536w, https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/05\/Market-Risk-2048x1152.webp 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Market Risk<\/figcaption><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-market-risk-in-investing\/#Market_Risk\" >Market Risk<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-market-risk-in-investing\/#Market_Risk_What_You%E2%80%82Need_to_Know_About_Investment_Volatility\" >Market Risk: What You\u2002Need to Know About Investment Volatility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-market-risk-in-investing\/#Top_Key_Methods_and_Metrics_for_Measuring%E2%80%82Market_Risk\" >Top Key Methods and Metrics for Measuring\u2002Market Risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-market-risk-in-investing\/#Types_of_Market_Risk\" >Types of Market Risk&nbsp;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-market-risk-in-investing\/#Key_Factors_Influencing_Market_Risk\" >Key Factors Influencing Market Risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-market-risk-in-investing\/#Mitigating_Market_Risk_Strategies_for_Investors_Facing_Volatility\" >Mitigating Market Risk: Strategies for Investors Facing Volatility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-market-risk-in-investing\/#On_a_parting_note%E2%80%A6\" >On a parting note\u2026<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-market-risk-in-investing\/#What_is_market_risk\" >What is market risk?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-market-risk-in-investing\/#What_Determines_Market%E2%80%82Risk\" >What Determines Market\u2002Risk?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-market-risk-in-investing\/#How_can_investors_manage_market_risk\" >How can investors manage market risk?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-market-risk-in-investing\/#What_is_investment_volatility\" >What is investment volatility?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-market-risk-in-investing\/#Why_is_it_important_to_understand_market%E2%80%82risk\" >Why is it important to understand market\u2002risk?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Market_Risk\"><\/span>Market Risk<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Market risk is a critical factor affecting the value of\u2002your financial portfolio in the constantly changing world of investing. This poses the risk that the value of your investments might fluctuate with changing\u2002market drivers like the economy, interest rates, political events, and global matters which are being driven by a spike in investment volatility, gauging how rapidly and dramatically values can rise and fall.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this blog, we will explore what\u2002market risk is, what factors affect it, and how it can be managed. Now, For investors, market risk is not only something we should be aware of or something we should know of\u2002\u2013 it can be empowering in the truest sense. This knowledge of market risk empowers investors to\u2002analyse investment opportunities, develop sound strategies, and better manage the intricacies of financial markets.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Market_Risk_What_You%E2%80%82Need_to_Know_About_Investment_Volatility\"><\/span>Market Risk: What You\u2002Need to Know About Investment Volatility<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Market risk is the risk that the value of your investments will rise and fall based on fluctuations in the economy, interest\u2002rates, or other variables. This creates concern for investors as it makes their investments\u2002less predictable.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So when we say \u201cinvestment volatility\u201d, we mean by how much and how quickly investment\u2002values change. Volatility is the range of an asset&#8217;s price over a set specific period of time for ex. &#8211; 1 year, 5 years and 7 years. High volatility usually only occurs when prices move wildly quickly, while low volatility occurs when prices remain stable and change slowly. By knowing what volatility is, investors can evaluate risk to determine\u2002whether they should buy into or sell their investments. Investors can determine when to buy or sell assets by knowing how much prices can fluctuate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Investors must understand the risk factors, stay up to date on market developments, and take precautions against possible losses in order to reduce this risk. This could involve increasing their exposures, establishing specific financial goals, such as saving for retirement, a child&#8217;s education, or using market instruments to reduce risk, etc.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Market risk informs investors how\u2002to be more prepared to choose wisely and adjust to market volatility.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Top_Key_Methods_and_Metrics_for_Measuring%E2%80%82Market_Risk\"><\/span>Top Key Methods and Metrics for Measuring\u2002Market Risk<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Commonly known measures to effectively measure Market\u2002Risk:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Value at Risk (VaR)<\/strong>: This metric provides an estimate of the maximum potential loss an investment could experience over\u2002a given time in normal market conditions. For example, if a portfolio\u2019s VaR is \u20b975,000 at a 95% confidence level, the portfolio will not lose over \u20b975,000 in a\u2002day with a 95% confidence.<br><\/li>\n\n\n\n<li><strong>Standard Deviation<\/strong>: This metric tells you\u2002how far away investment returns can be from the average return of that investment. A higher standard deviation means more volatility, and therefore more risk\u2002for the investment.<br><\/li>\n\n\n\n<li><strong>Beta<\/strong>: The beta lets you know the volatility of an investment\u2002relative to the Indian stock market. Beta is a measure of risk that tells an investor how much risk\u2002they are assuming for the expected return; a beta of 1 means the investment moves with the market, a beta greater than 1 suggests more volatility than the market, and a beta less than 1 means less risk than the market.<br><\/li>\n\n\n\n<li><strong>Stress Testing<\/strong>: A strategy that measures\u2002the performance of an investment or a portfolio in extreme market conditions in the Indian market. Investors can then gauge how their\u2002portfolios might have been affected by simulating different environments, such as large economic changes or political events.<br><\/li>\n\n\n\n<li><strong>Scenario analysis<\/strong>: As with stress testing, scenario analysis is the evaluation of\u2002hypothetical situations (for example, currency fluctuations or changes in government policy) based on their possible impact on asset values in the Indian environment.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Market_Risk\"><\/span>Types of Market Risk&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Market risk is classified into different types based on the sources of possible losses in the Indian\u2002financial market:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Equity Risk<\/strong>: This type of risk refers to the loss that occurs due\u2002to stock price movements on Indian exchanges, which are influenced by factors such as company performance, investor sentiment, and market trends.<\/li>\n\n\n\n<li><strong>Interest Rate Risk<\/strong>: This one is specifically for the bond and fixed-income\u2002investments in India. This risk relates to the movement of the interest rates decided by the Reserve Bank of India (RBI). Interest rates and the prices of existing bonds generally move in the opposite direction, so when rates\u2002rise, the values of bonds usually decline, which can lead to losses for investors.<\/li>\n\n\n\n<li><strong>Currency Risk (Foreign Exchange Risk)<\/strong>: Includes the risks from fluctuations in\u2002exchange rates when investing in foreign securities or assets. For\u2002example, a reduction in the value of the Indian Rupee (INR) compared with a given currency can reduce overall profit when swapped back into INR.<\/li>\n\n\n\n<li><strong>Commodity Risk<\/strong> \u2014 In India, commodity-based risk is the risk of an increase\u2002or decrease in the prices of commodities like oil, gold, and agricultural products. Many factors can influence\u2002the price of commodities, such as domestic supply and demand, global market trends, and geopolitical stability.<\/li>\n\n\n\n<li><strong>Liquidity Risk<\/strong>: When\u2002investors are not able to transact quickly on an asset without causing a major drop in its price, they face this type of risk.\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This knowledge can help investors to negotiate the complexity of\u2002the financial markets in India and make informed investment choices.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Factors_Influencing_Market_Risk\"><\/span>Key Factors Influencing Market Risk<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Market risk is the\u2002risk that the value of your investments may decrease due to changes in the market. This risk can\u2002be affected by several factors:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Economic Conditions: <\/strong>Generally, in a growing economy, young businesses thrive\u2002, and stock prices rise. In contrast, prices may decline in\u2002a recession.<\/li>\n\n\n\n<li><strong>Interest Rates: <\/strong>Rising interest rates\u2002increase the cost of borrowing, likely slowing economic growth and harming investments.<\/li>\n\n\n\n<li><strong>Inflation <\/strong>(which is when prices for goods and services rise)\u2002can erode the value of money, and therefore indirectly money becomes worthless than the profit that firms make when they sell services and goods, and this can weigh on stock prices.<\/li>\n\n\n\n<li><strong>Political Events:<\/strong>\u2002Unforeseen government policy changes or elections that cause instability can affect investors and animate values.<\/li>\n\n\n\n<li><strong>Global Events: <\/strong>Dark-horse events like natural disasters, pandemics, or geopolitical tensions\u2002can have a serious impact on international markets and make investors rethink their strategies.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Investors can\u2002make more informed investment decisions and minimize their market exposure by comprehending these factors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Mitigating_Market_Risk_Strategies_for_Investors_Facing_Volatility\"><\/span>Mitigating Market Risk: Strategies for Investors Facing Volatility<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">With so much\u2002volatility, some safeguards can help keep their money during such difficult times. Here are a few simple ways to work around this\u2002risk:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Diversification is a key strategy in managing market risk. By investing in various\u2002classes of assets, such as stocks, bonds, and real estate, investors can create a safety net. This strategy ensures that if one area goes\u2002down, the others may not, providing a sense of reassurance and security.<\/li>\n\n\n\n<li>Staying up to date with the\u2002current macroeconomic trends is crucial for investors. This knowledge equips them to make better choices and makes them feel more informed and knowledgeable about their investments and hence make more intelligent\u2002choices and avoid potential losses.<\/li>\n\n\n\n<li>Asses Investment Plan: Understand your goal with any investments you are about to\u2002make. These\u2002help you get focused and not panic through hard times.<\/li>\n\n\n\n<li>Utilise Stop-Loss Orders. This mechanism automatically sells your investment when its price falls to a certain level, minimising losses to some\u2002extent.<\/li>\n\n\n\n<li>Think Long Term: Invest for the heartbeat of this\u2002case, not the quick buck. This can ride out fluctuations\u2002in the market in the short term.\u201d<\/li>\n\n\n\n<li>Emergency Fund:\u2002Have some cash available for unexpected expenses. This will prevent you from selling your investments during a downturn.<\/li>\n\n\n\n<li>Get Professional Help: Consult with financial advisors who can\u2002offer personalised assistance.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Implementing these tactics will help investors mitigate risk and allow their investments to flourish\u2002in times of uncertainty.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Also, Check &#8211; <a href=\"https:\/\/prodigypro.co.in\/blog\/fiscal-deficit-explained\/\">Fiscal Deficit Explained.<\/a> <\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"On_a_parting_note%E2%80%A6\"><\/span>On a parting note\u2026<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Once again, market risk is an essential part of investing. Due to the volatile\u2002nature of financial markets, active investments must be managed. However, by known factors affecting market risk\u2014economic conditions, interest rates, inflation, political events, and global events\u2014traders can decide to limit\u2002their losses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In conclusion, a focus on long-term goals and a healthy emergency fund allows investors to survive adversity and\u2002continue to grow. Financial professionals can also aid in this process, by guiding investors better at a time when\u2002investors must not lose sight of the long-term for market investing. By better\u2002understanding the market, investors will be more equipped to handle the volatility and improve their chances for a positive outcome.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Please share your thoughts on this post by leaving a reply in the comments section. Contact us via phone,<a href=\"http:\/\/wa.me\/917347700888\" target=\"_blank\" rel=\"noreferrer noopener\">\u00a0WhatsApp<\/a>, or email to learn more about mutual funds, or visit our website,<a class=\"\" href=\"https:\/\/prodigypro.co.in\/\">\u00a0Prodigy Pro<\/a>. Alternatively, you can download the<a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.bfc_mf.prodigy_app&amp;pcampaignid=web_share\" target=\"_blank\" rel=\"noreferrer noopener\">\u00a0Prodigy Pro<\/a>\u00a0app to start investing today!<\/p>\n\n\n<div ><style>#sp-ea-717 .spcollapsing { height: 0; overflow: hidden; transition-property: height;transition-duration: 300ms;}#sp-ea-717.sp-easy-accordion>.sp-ea-single {margin-bottom: 10px; border: 1px solid #e2e2e2; }#sp-ea-717.sp-easy-accordion>.sp-ea-single>.ea-header a {color: #ffffff;}#sp-ea-717.sp-easy-accordion>.sp-ea-single>.sp-collapse>.ea-body {background: #fff; color: #444;}#sp-ea-717.sp-easy-accordion>.sp-ea-single {background: #7c8cff;}#sp-ea-717.sp-easy-accordion>.sp-ea-single>.ea-header a .ea-expand-icon { float: left; color: #444;font-size: 16px;}<\/style><div id=\"sp_easy_accordion-1779686458\"><div id=\"sp-ea-717\" class=\"sp-ea-one sp-easy-accordion\" data-ea-active=\"ea-click\" data-ea-mode=\"vertical\" data-preloader=\"\" data-scroll-active-item=\"\" data-offset-to-scroll=\"0\"><div class=\"ea-card ea-expand sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"What_is_market_risk\"><\/span><a class=\"collapsed\" id=\"ea-header-7170\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse7170\" aria-controls=\"collapse7170\" href=\"#\" aria-expanded=\"true\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-minus\"><\/i> What is market risk?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse collapsed show\" id=\"collapse7170\" data-parent=\"#sp-ea-717\" role=\"region\" aria-labelledby=\"ea-header-7170\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">Market risk refers to the risk that an investment&#8217;s value will decline due to\u2002factors that affect the entire market.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"What_Determines_Market%E2%80%82Risk\"><\/span><a class=\"collapsed\" id=\"ea-header-7171\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse7171\" aria-controls=\"collapse7171\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> What Determines Market\u2002Risk?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse7171\" data-parent=\"#sp-ea-717\" role=\"region\" aria-labelledby=\"ea-header-7171\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">Many\u2002factors are required to impact market risk, such as economic conditions, interest rates, inflation, political events, or global happenings.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"How_can_investors_manage_market_risk\"><\/span><a class=\"collapsed\" id=\"ea-header-7172\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse7172\" aria-controls=\"collapse7172\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> How can investors manage market risk?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse7172\" data-parent=\"#sp-ea-717\" role=\"region\" aria-labelledby=\"ea-header-7172\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">Investors can mitigate market risk through portfolio diversification and keeping abreast of market dynamics.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"What_is_investment_volatility\"><\/span><a class=\"collapsed\" id=\"ea-header-7173\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse7173\" aria-controls=\"collapse7173\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> What is investment volatility?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse7173\" data-parent=\"#sp-ea-717\" role=\"region\" aria-labelledby=\"ea-header-7173\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">Investment volatility measures the\u2002degree and speed at which the price of investment declines and rises.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"Why_is_it_important_to_understand_market%E2%80%82risk\"><\/span><a class=\"collapsed\" id=\"ea-header-7174\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse7174\" aria-controls=\"collapse7174\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> Why is it important to understand market\u2002risk?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse7174\" data-parent=\"#sp-ea-717\" role=\"region\" aria-labelledby=\"ea-header-7174\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">Investors\u2002can devise informed investment strategies and asset protection measures by studying market risk.<\/span><\/p><\/div><\/div><\/div><\/div><\/div><\/div>\n\n\n<p class=\"wp-block-paragraph\"><strong>Disclaimer: <\/strong>This article is for educational purposes only and does not intend to substitute expert guidance. Mutual fund investments are subject to market risks. Please read the scheme-related document carefully before investing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Market Risk Market risk is a critical factor affecting the value of\u2002your financial portfolio in the constantly changing world of investing. This poses the risk that the..<\/p>\n","protected":false},"author":1,"featured_media":719,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1132,1129,1130,1128,1126,342,564,1125,410,1124,329,350,375,1127,1131],"class_list":["post-718","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-beta-in-investing","tag-commodity-risk","tag-currency-risk","tag-equity-risk","tag-financial-market-risk","tag-interest-rate-risk","tag-investment-risk","tag-investment-volatility","tag-liquidity-risk","tag-market-risk","tag-market-volatility","tag-mutual-fund-risk","tag-risk-management","tag-stock-market-risk","tag-value-at-risk"],"_links":{"self":[{"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/posts\/718","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/comments?post=718"}],"version-history":[{"count":1,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/posts\/718\/revisions"}],"predecessor-version":[{"id":720,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/posts\/718\/revisions\/720"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/media\/719"}],"wp:attachment":[{"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/media?parent=718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/categories?post=718"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/tags?post=718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}