Market volatility refers to the speed and extent to which market prices—such as stocks, indices, or mutual fund NAVs—move up or down. When markets fluctuate frequently within short periods, volatility is considered high. It is a natural part of equity investing and is influenced by economic news, global events, interest rates, and investor sentiment.

Volatility is not always bad. In fact:

• For long-term investors, volatility creates opportunities to accumulate more units at lower prices through SIPs, enhancing long-term wealth creation.
• Short-term traders, however, may find high volatility challenging because prices move unpredictably.
• For goal-based investors, volatility is manageable when the portfolio is diversified and aligned with their risk profile.

In simple terms:
Volatility is normal, manageable, and often beneficial for disciplined investors.