Volatility of the Nifty 500 Index is both a threat and an opportunity for individual investors, depending on risk appetite and investment strategy. Since the index encompasses a broad blend of large-cap, mid-cap, and small-cap shares, it comes naturally with greater variability than a narrow index such as the Nifty 50. For long-term investors, such price volatility may offer good entry points to build well-structured stocks at depressed prices. Nonetheless, with adequate research and self-control, volatility may produce psychological trading decisions and loss, whereas having insight into the bigger trend of the Nifty 500 Index allows the retail investor to make knowledgeable judgments and benefit from volatility instead of shunning it.