How to Use the Risk-o-Meter to Evaluate Your Mutual Fund Risk?

In this episode, we uncover how the Risk-o-Meter plays a crucial role in measuring and understanding the risk associated with different mutual fund schemes. Monika breaks down the evolution of the Risk-o-Meter, starting from its inception in 2013 to the recent changes mandated by SEBI. We explore the flaws of the previous version, which failed to accurately depict the varying risk attributes within asset classes. Learn how investors and advisors can leverage this tool to make more informed decisions, especially in the realm of debt funds where portfolio quality can fluctuate significantly over time. We dissect the intricacies of mutual fund investments in this episode. We explore the debate between small-cap index funds and actively managed funds, shedding light on factors such as cost, returns, and portfolio performance. Delve into the differences between regular and direct mutual fund plans, uncovering the impact of cost differentials on long-term returns. We also unravel the concept of systematic withdrawal plans (SWP), discussing their suitability for different life stages.  Chapters: (00:31 - 05:20) Risk-O-Meter (05:34 - 08:16) Investing in Small Cap Index Funds (08:19 - 11:48) Regular Commission Based Plan vs Direct Plan (11:51 - 13:16) SIP vs SWP If you have financial questions that you’d like answers for, please email us at [email protected]  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/ Calculators https://investor.sebi.gov.in/calculators/index.html AMFI Risk-O-Meter https://www.amfiindia.com/investor-corner/online-center/riskmeterinformation You can find Monika on her social media @monikahalan.  Twitter @MonikaHalan Instagram @MonikaHalan Facebook @MonikaHalan This is a Maed In India Production; check us out at www.maedinindia.in Creative Director: Mae Mariyam Thomas Project Manager: Shaun Fanthome Head of Audio: Kartik Kulkarni Producer: Meghna Gulati  Sound Editor: Lakshman Parsuram Artwork: Alika Gupta