This week, Monika talks about the rising global war anxiety and how it’s triggering panic among investors. As conflicts erupt across the globe, the instinct to pull money out of the markets is growing—but is that the right move? With fears of nuclear escalation, many are tempted to book profits and flee to cash. But Monika explains why the better approach is to stay calm, focus on asset allocation, and avoid impulsive financial decisions driven by headlines. India, despite external threats, remains on a strong economic footing—with 6.5% GDP growth, healthy macro indicators, and strategic restraint. While we cannot control global turmoil, we can build resilient portfolios that are better prepared for long-term uncertainty.

She then explains what a "risk asset" really is—investments like stocks or real estate whose prices fluctuate and that carry a risk of capital loss. These stand in contrast to low-risk assets like PPF or fixed deposits, which offer capital protection but lower returns. Monika lays out why investors choose risk assets in the first place: for higher returns over the long term. But she also emphasizes that this risk must be balanced with an appropriate time horizon and the right mix of stable, low-risk assets for peace of mind.

In listener questions, Samparth asks whether his ₹50 lakh upfront investment for his child's education is enough and seeks advice on raising financially aware children. Amit wonders why the total expense ratio matters when mutual fund returns are already reported post-cost. Dr. Jayesh Waghulde asks whether he should move from mutual funds to high dividend-yield stocks or stick to a mutual fund strategy after receiving a lump sum.

Chapters:

(00:31 – 07:33) War clouds, worried investors: What to do when conflict scares you out of the market

(07:34 – 08:23) What is a risk asset and why do we choose them anyway?

(08:24 – 13:15) Children’s education and values: Planning, protecting, and parenting with money

(13:16 – 16:13) Do expense ratios matter when returns are already declared?

(16:14 – 18:14) Trading vs mutual funds: A reminder to avoid fake profiles and risky shortcuts

https://www.amfiindia.com/investor-corner/knowledge-center/Expense-Ratio.html

If you have financial questions that you’d like answers for, please email us at ⁠mailme@monikahalan.com⁠

Monika’s book on basic money management

⁠⁠https://www.monikahalan.com/lets-talk-money-english/⁠⁠

Monika’s book on mutual funds

⁠https://www.monikahalan.com/lets-talk-mutual-funds/⁠