Great question!
📉 What is Low-Volatility?
Low-volatility means an investment’s price does
not change much over time. It tends to stay stable and predictable,
without big ups or downs.
🧠 Simple Definition:
Low-volatility = Low risk of sudden price movement
If an asset is low-volatility:
- It
moves slowly or slightly day by day
- It
doesn’t go up and down wildly
- It's
often seen as safer, especially for long-term or conservative
investors
📊 Example Comparison:
|
Investment |
Volatility Type |
Price Behavior |
|
Government Bonds |
Low Volatility |
Stays stable |
|
Big ETFs (like VOO or SCHD) |
Low Volatility |
Slow, steady changes |
|
Crypto (like Bitcoin) |
High Volatility |
Big price swings daily |
|
Small Tech Stock |
High Volatility |
Can rise or fall fast |
💡 Why It Matters:
- 👍
Good for beginners or retirees
- 📆
Less stress watching the market
- ✅
Fits goals like steady income, long-term growth, or capital
preservation
Would you like the Khmer translation too?
Tags:
invest