InvestmentFinancial Glossary
Beta
Definition
A measure of a stock or fund's volatility relative to the overall market (usually the Nifty 50 in India). A beta of 1.0 means the asset moves in line with the market. Above 1.0 means more volatile; below 1.0 means less volatile.
Why It Matters
Beta helps you understand how much additional risk you are taking compared to a simple index fund. A high-beta stock can amplify both gains and losses, making it unsuitable for conservative investors or those near retirement.