It is the measure of fluctuations in the asset price. It refers to the amount of uncertainty or risk about the size of changes in a security's value. The higher the fund’s volatility, the more vigorously its price or return fluctuates. It indicates that the change in prices of security. This means that the price of the security can change dramatically over a short time period in either direction. A lower volatility means that a security's value does not fluctuate dramatically, but changes in value at a steady pace over a period of time.