Skip to main content

What is NSE India VIX ?

volatilityNSE India VIX - Volatility Index.

Volatility Index is a calculation of markets expectation of volatility over the short term. India VIX is a volatility index based on the Nifty 50 Index Option prices. From the best bid-ask prices of Nifty 50 Options contracts, a volatility figure (%) is calculated which provides an indication of the expected market volatility over the next 30 days.

Volatility is described as the “rate and magnitude of changes in prices” and commonly referred to as “risk”. Volatility index is a tool aimed to help traders understand market risks better and take decisions accordingly.

Such indexes have been used widely and relied upon by investors in developed markets. The Chicago Board Options Exchange launched such an index, CBOE VIX, in 1993.

The NSE, does not intend to introduce tradable products based on the India VIX. Many market participants have been calling for tradable products which they would find it useful in hedging their portfolios.

Meanwhile, India VIX closed at 51, which is a 2-month high, indicating high volatility in the short term. If you want the historical data of India VIX, you can download it from here.
Labels:

Popular posts from this blog

Historical Sensex Returns Updated - 2024

Historically Sensex has given returns of about 15% per year, despite volatility and price fluctuations of about -20% to +60%. The following table shows S&P BSE Sensex historical data - start  & close values and the yearly returns of the sensex from 2000 to 2024. So far during the year the   index has hit an all-time high of  75,124   and despite markets hitting all time highs not all stocks make all-time highs. There are many stocks still below their highs. Stocks like HDFC Bank, ITC, Asian paints are still well below their highs and some of them have given low returns over last 3-5 years. Individual or Retail investors can achieve consistent returns through investing via mutual funds , whether it be active or passive. Chasing returns from individual stocks is futile. Be a wise investor !
Read more

What is Specialized Investment Fund (SIF)

What is Specialized Investment Fund (SIF) SEBI rolls out Specialized Investment Fund with Rs.10 lakh minimum investment. What is Specialized Investment Fund? This newly launched class aims to fill the space between mutual funds and PMS, offering a flexible and specialized option for investors who are willing to make riskier bets and seek higher returns. Why the Need for SIFs? Mutual funds, by nature, attract a wide range of investors and are governed by strict regulations to ensure broad accessibility and safety. They are more suitable for conservative investors or those with a lower risk appetite.   On the flip side, PMS offers tailored strategies but typically requires a significant minimum investment (Rs.50 lakhs and above) often too large for smaller investors, and with a complexity that may seem daunting for those without deep financial expertise.  This is where the SIF comes in. SIFs are designed for those who are more informed about the market, willing to take on a hig...
Read more