How volatility can impact investments

  • 19 June 2020 (3 min read)

Volatility describes how much the value of an investment is likely to fluctuate over time. Volatility is a type of risk but also an inevitable, even essential, part of investing as asset prices need to move in order for investment returns to be generated. Investments which are expected to experience higher volatility generally offer higher potential rewards to compensate. So rather than aiming to avoid volatility altogether, it is important to consider how much you are willing to tolerate in the context of your overall investment goals and how you can aim to potentially manage it to that level.

Find out more:

Related Articles

Equities

Emeric Oziel shares an update on the European equities market

  • by Emeric Oziel
  • 03 July 2024 (5 min read)
Equities

Biodiversity for growth: investing in transition winners is only natural

  • by Anna Väänänen
  • 03 July 2024 (5 min read)
Equities

Generative AI: The future of e-commerce is here

  • by AXA Investment Managers
  • 30 April 2024 (7 min read)

    Disclaimer

    This document is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments as per MIF Directive (2014/65/EU), nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities.

    Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.

    Back to top