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Saving money is tough and overwhelming. With the internet filled with different methods of saving money, it can get difficult to pick which is the best choice for you!  In this article, let’s find out what are the varied methods of saving money and where you should park your money for the best returns. Methods of saving money  Here are some methods of saving money that can help you achieve your long-term and short-term financial goals 1. Invest and Save  Investing and saving are one of the most crucial methods of saving money. It is also the most underrated method. Most Indians do not invest in the stock market or take benefit of its varied opportunities. If you want to invest and save then here are some investment options to explore 2. Direct mutual funds Direct mutual funds are a good way to start investing and saving. As there is no middleman in between, there is no extra cost.  Regular mutual funds are another type of mutual fund. These charge more in terms of expense ratio but are professionally managed and maintained by an experienced fund. This is a great investment for investors who are new to investing and need a helping hand to make the most of their investments. 3. Digital Gold Digital gold, gold bonds, or gold ETFs are also a way. There are alternatives for physical gold but it is a way of investing. You can do all of this online; there is no need to go to a jewelry store. It’s the more suitable way of buying gold. Investors who want to sell or buy gold can do it without any problems with one click in an app. The minimum cost of buying or selling gold can be as low as Rs 1. 4. US Stocks US Stocks are another method of saving money! That’s right. Suppose you plan to send your child abroad to study in USA or Canada. The currency difference between USA and India will make the education cost higher for you. Imagine if you start investing that money regularly in US dollars so that by the time your child is off to the USA, you will be able to fund his/her dream without any loss!   Real estate investment involves buying, managing, and selling a property. It’s a type of investment and has different parts. 5. ETFs ETFs (Exchange-Traded Funds) are somehow similar to mutual funds. It’s a type of pooled investment security. It can be sold and bought much like other stocks.  Daily savings and budgeting  Many people ignore saving and budgeting as a method of saving money. It can help you cut costs and recognize areas where you may be losing money.  Create a budget for the month. When there’s a fixed budget for the month, you tend to spend less. Settle everything under your budget.  Don’t just save your money, think about your future too. Set aside some money for an emergency fund. So that you are prepared for any emergency like job loss.  Start saving for your life after retirement. Make sure you have a retirement plan or fund in place way before time. This will help you amass more money over a long period of time. In fact, the sooner you think about your retirement, the more money you are likely to save up!  Save and invest your bonuses or tax refunds. Put them into your savings account and consult your financial advisor on how to make the most of it.   Manage your debts before making creating any extra costs like starting a new EMI.  Save electricity. It will also save you money. By not using unnecessary fans, lights can cost you more than you can think.  Cancel your automatic transactions, and memberships, and unsubscribe from unnecessary emails because by seeing offers you tend to make unnecessary purchases.  Decrease your mobile bills. Cut off unnecessary plans from your bill. Use free Wi-Fi instead of buying extra data plans.  Banking saving tips  Use your credit less. Pay your credit card bills timely to have less burden on your shoulder later.   Use only your ATMs or debit cards because every time you use your ATMs or debit cards, you are not charged any withdrawal charges.   Keep your monthly bills on automatic. It will free you from hassles and also pay your bills on time.  Entertaining saving If you love reading and like to have physical books then use your nearby libraries.  Watch films at home instead of going outside and spending more there. Going to a theatre means buying popcorn, seats, transportation, etc. but when you watch films at home you don’t spend extra.  Reduce your trips to coffee shops. It doesn’t cost you $2 - $3(Rs 200 - Rs 400), but it costs you more than that in long term.   Instead of eating out regularly, cook your own food at home.  Cut off your grocery expenses. Don’t shop extra from that grocery store. It helps you in saving extra money here and there. Make a budget for that too and stick to it.   Consult an expert advisor to get the right plan TALK TO AN EXPERT FAQ Are ETFs a good investment?  ETFs are actually low-risk investments because they are low-cost and hold a bag of stocks. What are the 2 methods of saving?  Cutting off extra expenses and investing money in mutual funds, digital gold, etc. Helps in saving money. How much should I save every month?  Saving 10% - 20% every month should be the goal so that in long run you will be saving more. Is investing money a good way to save more?  Investing money is a good way to save more but it’s an individual’s own choice to invest or not. But now, it’s a proven method to save money by investment.

You need to be a millionaire to invest in mutual funds! Or, mutual funds guarantee returns to all their investors. You have probably heard these myths about mutual funds every now and then.   It’s time to debunk these myths and find out what are the true facts behind mutual funds and their investments!  Myths about mutual funds 1. Mutual funds are only for long-term investment Your investment in mutual funds could be goal-based. Whether you select a short-term, long-term, or medium-term target, you are probably going to make some respectable returns. Mutual funds are regarded as suitable investment tools for exceedingly short-term investing objectives (ultra-short goals). Debt funds are how they are represented. You'll also find that many investors have a strong interest in mutual funds with the aim of building emergency cash. 2. You need an agent to understand mutual funds  The finest mutual funds to invest in are based on much the same information investors have about stocks, so this could not be more different from the truth. While it is true that investment managers work for mutual funds, as an investor you may conduct your own research on firm stocks and request that certain stocks be included in a fund of your choosing. 3. Mutual funds are similar to stock investment Numerous investment-related assets are included in mutual funds. As a result, gold, money market products, fixed deposits, debt and equity are all potential investments for the best mutual funds in India. Your contribution to a mutual fund can include any or all of these assets. What you invest in mostly relies on your tolerance for risk, financial goals, preferred tenures, etc.  4. Mutual funds that have low net asset value are the only which are good The NAV, or net asset value, is the entire value of the underlying assets that comprise the fund, whether you invest in huge or tiny mutual funds. Not the market price, but the market worth. The success of a mutual fund is revealed by the Value change between two different time periods. As a conclusion, selecting a mutual fund cannot be affected by comparing the NAVs of other mutual funds 5. Mutual funds guarantee higher returns  The investment characteristics of mutual funds determine the profits you will receive. Mutual funds are collections of assets, whose returns depend on the value of their underlying assets. These might occasionally be subject to variations. As a result, returns might not be fixed or promised. 6. Only people having demat account can go for mutual funds Apart from the Exchange Traded Funds, keeping mutual fund units in Demat form is entirely optional. The decision on whether to hold the units in a Demat mode or the existing traditional accountant account mode is fully up to the investor in all other plans, along with the close-ended listed strategies like Fixed Maturity Plans (FMPs) Types of mutual funds Money market funds have comparatively less risk. They are only permitted by law to invest in a limited group of high-quality, brief securities issued by American businesses and national, state, and municipal governments.  Bond funds have bigger risks than money market mutual funds as their primary objective is to generate better returns. The risk and benefits of bond funds can differ tremendously due to the wide range of bonds.  Stock funds purchase corporation shares. Stock funds vary widely from one another.  Growth stocks concentrate on equities with the possibility for above-average investment rewards but they may not consistently pay a dividend.  Revenue equities are purchased by income funds.  A specific market index, such as the Standard & Poor's 500 Index, is tracked by index funds.   Target date funds mix your investments across stocks, bonds, and other assets. The composition regularly shifts over time in accordance with the fund's strategy. Lifecycle funds sometimes referred to as target date funds are created for those who have certain pension plans in view.  Conclusion:  Myths about mutual funds can be common and misleading! Get to know about mutual funds more in detail and invest. When you understand mutual funds better, you can put your money to better work.  Consult an expert advisor to get the right plan TALK TO AN EXPERT FAQ What's the biggest problem with mutual funds?  High expense ratio  High sale charges  Management abuse  Tax inefficiency  Poor trade execution Can we trust mutual funds?  Mutual funds are easy and trustable if you can understand them. Investors don’t need to worry about short-term fluctuation and about risks.  Are mutual funds really beneficial?  There are too many benefits of mutual funds. Mutual funds merge the funds of many different participants and handle them as one large financial pot. Therefore, expert fund managers handle the selection of stocks and bonds for investors rather than the investors themselves. 

The Public Provident Fund is a type of investment that encourages small amounts of savings. A life insurance policy is a type of insurance that provides protection from unfortunate occurrences like death. This article compares LIC and PPF and goes into detail about each financial product's features. Life Insurance Policy (LIC): What is it?  Corporation for Life Insurance, A state-owned insurance, and investment firm, is called LIC. The Life Insurance Corporation was founded in 1956. LIC was created post the Life Insurance of India Act was passed. It provides a way for people to get insurance to safeguard their loved ones against threats. A LIC policy is a contract that requires ongoing premium payments or a one-time payment to the insurance provider. Upon the LIC policy's maturity or the unfortunate passing of the policyholder, one will receive a lump sum payment. The people who need life insurance the most are those who have dependents who depend on their income. Consequently, the nominee will get the insured sum in the terrible event that a policyholder passes away. Therefore, LIC serves as a risk cover for the family of the policyholder. The policyholder will receive a lump sum payment if the insurance expires prior to the insured person's passing. The same might be used for the policyholder's retirement.  Section 80C of the Income Tax Act of 1961 allows for the tax deduction of insurance premium payments. However, the following prerequisites must be satisfied in order to claim a deduction:  If the policy is issued after April 1, 2012, the premium cannot be greater than 10% of the amount insured.  The premium paid for life insurance plans issued prior to April 1, 2012, should not be more than 20% of the amount assured. If the premium payment does not exceed 10% of the sum assured, the maturity amount from a life insurance policy is completely excluded from tax under Section 10 (10D). The sum the policyholder gets at the conclusion of the term is completely taxable if the premium is greater than 10% of the insured amount. Additionally, a TDS of 5% is applicable to the revenue portion of the maturity value of policies not covered by Section 10 (10D). TDS is only deductible if a life insurance policy's maturity value reaches INR 1,00,000. Additional read: Lumpsum vs SIP Public Provident Fund (PPF): What is it? The Indian government launched the Public Provident Fund program. In 1968, the National Savings Institute introduced it. This long-term post office savings program is backed by the government, so the returns are assured. Every three months, the Ministry of Finance releases the PPF Interest Rate. The yearly compounded PPF rate for the latest quarter, January 2022 through March 2022, is 7.1%.  According to Section 80C of the Income Tax Act of 1961, investments up to Rs 1.5 lakh each fiscal year are totally tax-free at the disposal of investors. Additionally, the proceeds from interest and maturities are tax-free as well. As a result, a person investing in PPF to save for retirement should not be concerned about taxes. Following is the table comparing LIC vs PPF LIC vs PPF People frequently mix up investments with insurance. Investments are for a secure future, whilst insurance is for risk protection. Having sound financial standing is vital for any investment. A person needs an emergency reserve for unforeseen costs, insurance to safeguard against terrible situations, and investments to ensure a solid financial future. Therefore, if a person has dependents who depend on their income, they must have insurance. The market offers a wide variety of insurance products, including term insurance, ULIPs, and endowment plans. A term policy and PPF investments, however, are advised for investors. In the most economical manner possible, it offers investment security and insurance safety. That being the case, the question shouldn't be LIC or PPF or LIC vs PPF. Which term policy works best with PPF should be the question instead. Conclusion There are insurance programs that also provide investing alternatives, including ULIPs. However, when it comes to expense ratio, they are on the upper end of the spectrum. They also have a number of unstated fees. Therefore, it is advised that people separate their insurance needs from their investment demands and purchase term coverage while investing in PPF. If there’s any confusion regarding this or any other financial matter, EduFund’s team of efficient financial advisors is always available to help you. TALK TO AN EXPERT

GRE and GMAT are considered two of the many pathways to study at top colleges and universities across the globe.  Students clearing the Graduate Record Examination (GRE) with a good score (we will discuss this later in this article) become eligible for admission to graduate study programs. On the other hand, the Graduate Management Admission Test (GMAT) is an undisputed road toward admission to top MBA programs all over the globe. Students often find themselves at a crossroads when choosing which exam to prepare for. Start Investing in Mutual Funds GRE vs GMAT: What are the Exam sections? Verbal Quantitative aptitude (including integrated reasoning in GMAT) Analytical writing Let us compare between GRE and GMAT in a summarized table below Basis of DistinctionGREGMATBody of governanceEducation testing servicesGraduate management admission councilExam duration3.75 hours3.5 hoursTest structure60 minutes: Analytical writing section. 2 essays with 30 mins each.2 sections of 30 minutes (20 questions) each for verbal reasoning.2 sections of 35 minutes (20 questions) each for quantitative reasoning.1 experimental section (30 - 35 minutes) each verbal or quant.30 minutes: Analytical writing section.30 minutes: 1 section for integrated reasoning (12 sections).Quantitative section: 62 minutes (31 questions).Verbal section: 65 minutes ( 36 questions) Cost of exam$205$250Validity of scores5 years5 years Composition of the sections 1. Analytical writing section The GRE Analytical section has two essays, one needs an analysis of an issue, and the other one requires an analysis of an argument. The GMAT Analytical section has one essay requiring critical analysis of an argument. 2. Verbal section The GRE verbal section has questions of three types, namely, reading comprehension, test completion, and sentence equivalence. Reading comprehension requires questions to be answered based on given passages, text completion is synonymous with fill-in-the-blanks, and the sentence equivalence parts have questions having sentences with one blank. The examinee has to choose two options (from six) that fit the sentence similarly. GMAT verbal section consists of questions on reading comprehension, critical reading of passages, and sentence correction questions. The questions test the student's understanding, reasoning, critical analysis, and grammar skills. 3. Quantitative section The GRE quantitative reasoning section comprises questions from topics like algebra, geometry, numbers, and data interpretation. Question types include numeric value entry questions, MCQs, and comparison questions. This section of the GMAT exam has questions on problem-solving and data sufficiency. In addition, integrated reasoning includes questions on data interpretation involving graphs, charts, and tables. Which exam is easier? A significant query in the test-taker's mind is the difficulty of the two exams. No exact answer to this because both these are aptitude exams – to test various capabilities of a student on a subjective basis. On average, the GMAT has a more challenging Quantitative section, whereas the verbal section in the GRE is a challenging game because of the need for a vast vocabulary and two types of essay Who should take the exam? GRE is for students of almost all backgrounds looking to study a masters-level program or a Ph.D. program from some of the best universities in the world – it is a trendy exam among STEM students and economics students. GMAT is the go-to exam for students with the big B-School dream as almost all top business schools have this exam mandatory under normal circumstances. Difference between GMAT and GRE:  GMAT:  MCQs math questions  Accepted by most graduate business programs  Test is online at a test center  $250 fees (approx. Rs 21,000 in India)  3 hours a long test.  Scores good for 5 years   4 sections in the syllabus  GRE:  MCQs math questions  Accepted by most graduate programs  Online test  $205 fees (approx. Rs 17,000 in India)  3 hours 45 minutes long test  Score well for 5 years  3 sections in the syllabus  Should you take the GMAT or the GRE?  It's customary for business schools to take GRE results as part of their admissions criteria, despite the fact that the overwhelming majority of applicants to business schools opt to take the GMAT rather than the GRE. This implies that you can select the test that best demonstrates your academic strengths. Here are a few things to think about as you decide what is best for you.  Academic objectives: The GRE is accepted in a wider range of degree programs, so if you're thinking about different graduate schools or just want to keep your options open, you should consider taking it. Taking the GMAT will show your dedication if you're confident you want to attend business school, taking the GMAT will show your dedication.   School: Many colleges accept either score, but it's a good idea to double-check the admissions requirements in advance. Ask an admissions counselor if they have a choice between the two exams if at all possible.  Academic talents: The GMAT may provide a better opportunity to showcase your skills if your arithmetic abilities seem to be better than your verbal abilities. If you're a good writer, think about taking the GRE. For non-native English speakers, the GRE might occasionally be more difficult due to the vocabulary required.  Testing method: The GRE format enables you to jump around and review your responses if you choose. This could boost the confidence of some test-takers.  Performance on practice exams: Taking a practice test for each examination is one technique to figure out which one you're best suited for. Take them individually under conditions that are as real-world as possible. You'll have a better notion of that which you feel more often at ease with when you take and grade your examinations.   Score reporting: If you sit the GRE more than once, you have the option of sending different scores to different schools. Schools receive all of your GMAT results. Many programmers just take the highest score into account.  Career aspirations: Some employers, especially investment and business consulting businesses, need GMAT scores as a part of the hiring process. Do your homework on these needs in advance if you have particular target employers in mind. You might avoid having to take the GMAT throughout your job hunt if you take it before applying to business school.  FAQs Which is easier GMAT or GRE? According to experts, the GMAT's quantitative problems are typically more challenging than the GRE's. Thus, Dan Edmonds, a test-prep tutor with Ivy Wise, noted in an email, "Students with higher math skills may prefer taking the GMAT in order to exhibit those talents. Which is more valuable GRE or GMAT? Clearly said, the GMAT is a more trustworthy test for determining an MBA applicant's likelihood of academic achievement, so the admissions process will value your GMAT scores much more than your GRE scores. Do colleges prefer the GMAT or GRE? For MBA applications, almost 90% of business schools accept GRE results. You will only be at a loss if the business school explicitly declares that it favors the GMAT over the GRE if you take the GRE for MBA admission. Nevertheless, the GMAT still retains an edge over the GRE for MBA admissions. Is GMAT or GRE better for an MBA? The GRE is an exam that students may take to obtain admission to graduate programmers across practically all subjects, such as the MBA, while the GMAT is a test that is exclusively created for applicants to business schools. The GMAT has typically been given preference over the GRE.

What is financial planning? Financial planning refers to acquiring information about your financial needs and then making a comprehensive plan to reach your financial goals with as much certainty as possible.   Financial planning considers the following factors: your current financial situation, what you wish to do with the money you will acquire, and how you are willing to invest your money to achieve your goal.   Thus, to define it in a sentence, we can say that financial planning is a means to achieve your future goals through proper development and implementation in accordance with some general guidelines.  Financial planning includes applying globally accepted management principles like planning, directing, organizing, and procurement of funds to invest and generate the maximum possible returns.   It helps you prioritize your investment decisions based on the urgency of your goals. People have both short-term and long-term goals.   For example, a short-term goal like buying a car in two years requires a much different planning approach than a long-term goal like buying a house in 10 years.   Both these aims have entirely different capital, returns, and financing requirements.  We can say that financial planning will lead to asset management and not the other way around. Once a plan is laid out, the implementation requires proper management of the available assets to generate maximum returns to fulfill your goals. Source: pexels Importance of financial planning  A significant advantage of a financial plan is that it helps you build financial security for yourself and your family as well can grow your assets and prepare for financial emergencies.   It helps you fulfill your dreams. Some reasons why you should consider building a financial plan:  1. Give a perspective on your financial goals Once you have a clear goal in mind, you will be able to employ financial literacy in a well-defined direction to achieve your goals.   With a plan, you also employ popular money-management techniques like the 50/30/20 rule (See here: Tips to follow for 50/30/20 Money Management Rule) and the (15-15-15 rule of investing), according to your needs.  2. Income management Through financial planning, you can prioritize monitoring a fixed budget for your expenses and moving towards investing a chunk of your income.  3. Growth of assets The ultimate purpose of a financial plan is to increase your asset base. By investing intelligently (with proper diversification and allocation), you will earn high returns and preserve your wealth, thus extending your investments and increasing your net worth.  Start your financial planning journey now so that you don't miss your goals by the margin.  Steps to follow when creating a financial plan 1. Create an emergency fund The first and foremost step towards saving is to create an emergency fund so that you do not want to disturb your financial routine if any emergency arises. There are many formulas to create an emergency fund. One way is to create an emergency fund for six months of your expenses. So, in situations like job loss, your emergency fund can take care of your expenses until you find another job. You can park your emergency fund in liquid funds to maintain liquidity.  2. Make a monthly budget Making a monthly budget will help you save money better, as you will be able to identify and analyze your income and expenses better. In this step, identify all your income first and then expenses, where you spend most of your money. Making a monthly budget will assist you in segregating income and expenses into different categories. To create a proper budget, you can follow the 50-30-20 rule. It says that 50% of your income should go towards your needs, 30% toward wants, and 20% for saving and investing. By following this rule, you can manage your monthly budget.  3. Spend wisely Spending wisely is as critical as making a budget. After making a budget, you can evaluate where to cut down your unnecessary expenses. And where you do not need to spend your hard-earned money. For example, you may have bought a monthly subscription to some adventure park, but you may not be utilizing it. So, you can cancel your subscription and save a lot of bucks. Also, don’t make quick decisions in buying things. Evaluate its cost and usage, then make a thoughtful decision. If you spend wisely, you can make a huge difference in future savings.  4. Set goals The next step is to set your short-term and long-term goals. Categorize your short-term and long-term goals based on their priority. And start saving for them. For example, sending your child for higher education after ten years is an example of a long-term goal, but paying for the school fees in the next 11 months is an example of a short-term goal. Identifying and prioritizing your goals is very crucial. Some parents could have a short-term goal to pay for a child’s higher education. So, it is essential to prioritize your goals based on time availability to achieve them.   5. Create a savings plan After deciding on your goals, create a savings plan for each goal. Try to save a fixed amount for each specific goal. Evaluate the cost of your goals; save and invest some money to quickly achieve your target. For example, if you want to send your child for higher education in the future, and the cost of IIM Ahmedabad in 2030 may cost Rs 60 lakhs, to save Rs 60 lakhs in the next eight years, you need to save and invest Rs 34000 every month in such asset class which can generate 14% annualized returns over the period. So, creating a savings plan for each of your targets is vital, such that you know how much you need to save and for how long. Before investing your money in any of the asset classes, please do thorough research on it.  6. Review the plan After creating the savings plan, try to review the same yearly and see whether the savings and investment are on track. If they are not aligned with your goals, review your savings plan and make the changes accordingly. FAQs What is the meaning of financial planning? Financial planning refers to acquiring information about your financial needs and then making a comprehensive plan to reach your financial goals with as much certainty as possible.   What is financial planning and why? Financial planning is a means to achieve your future goals through proper development and implementation in accordance with some general guidelines.  What are financial planning and its types? Financial planning is a means to achieve your future goals through proper development and implementation in accordance with some general guidelines.  There are three types of financial planning - cash flow planning, investment, and insurance planning. What are the steps in the financial planning process? Here are the steps in the financial planning process: Give a perspective on your financial goals Income management Growth of assets What is the main benefit of financial planning? The main benefit of financial planning is the ability to meet your short-term and long-term goals while building wealth for your future retirement. A good financial plan helps you achieve your goals with ease and gives you financial stability for the future. TALK TO AN EXPERT

Vanguard is an American registered investment advisor based out of Pennsylvania. It was established in the year 1975 by John Bogle. As stated by the company, the core purpose is, 'To take a stand for all investors, treat them fairly, and give them the best chance for investment success.'   This investment company offers a varied range of investment products to a varied clientele. Since then, the company has shown unbelievable growth in the assets under management (AUM). From 1975 to 2021, the AUM has increased from 1.7 billion USD to 7300 billion USD. It is the world's largest mutual fund provider and second-largest ETF provider, just second to BlackRock's iShares. It is to the credit of Vanguard that index investing and indirectly cheaper investing came to focus and rescue smaller retail investors.   Vanguard, unlike other investment companies, offers a unique governance and ownership structure.   The company is indirectly owned by fundholders, generating a feeling of oneness between the investors and the company.    The company bagged several accolades. To name a few  September 2021, Morningstar rated eight Vanguard ETFs as 5-star ETFs with risk-adjusted returns in the top 10% of their peer groups and 36 as 4-star ETFs with risk-adjusted returns in the top third.  In May 2021, Vanguard found itself on the list of top Roth IRA providers, according to Money magazine.  In March 2021, Thirteen Vanguard funds received Refinitiv Lipper Fund Awards. The awards honor mutual funds and firms with the best risk-adjusted performance over three-, five-, and 10-year horizons.  September 2020, Ten Vanguard funds were there in Morningstar's Thrilling 36 list.  According to the company, its investment strategy is as follows:  1. Investment Merit Avoid short-term fads and speculative investments. Instead, concentrate on asset classes that generate positive actual returns from dividends, interest, and other recurring cash flows.  2. Client needs The company bases its products on the client's needs for the short term and the long term.  3. Competitive advantage The company aims to outperform its peers through credible investment strategies.  4. Feasibility All products come outpost a feasibility study based on regulatory needs, risk constraints, etc.  5. Vanguard offers various services like Mutual funds ETFs Brokerage services Asset Management services Advisory services Retirement services Vanguard currently provides around 417 funds across the globe, out of which 210 are available in the United States and 207 are outside the U.S. market.  The company offers advisory services tailored to meet the client's needs. Vanguard offers personal advisory services to clients to better settle their obligations and increase wealth - mainly aimed toward HNIs (High Net Worth Individuals). Moreover, Vanguard offers automated advisory services powered by proven investment methodologies for providing investment advice. State-of-the-art Robo-advisors run it. Employees who invest through employer-sponsored retirement plans may benefit from Vanguard Participant Advice Services. Vanguard also offers institutional advisory services.    Vanguard offers two asset classes: Namely investor shares Admiral shares. Admiral shares are the asset classes with lower expense ratios but higher minimum investment requirements between $ 3000 to $ 10,000 per fund. Investor shares have higher expense ratios and minimum investment requirements.    Vanguard also provides quality investment options in active and passively managed funds. Vanguard actively managed funds have an AUM of 1.7$ Trillion, and 87% of their funds have outperformed peer funds. They also offer a meager average expense ratio of 0.18%. Some of the actively managed Vanguard funds are Fund NameTickerAsset ClassAverage annual return (5 years)Expense RatioU.S. Growth Fund Admiral Shares  VWUAXDomestic Stock - General21.61%0.28%Emerging Markets Select Stock Fund  VMMSXInternational8.74%0.85%Diversified Equity Fund  VDEQXStock - Large-Cap Blend  16.91%0.35%Long-Term Treasury Fund Admiral SharesVUSUXMoney Market  5.67%0.10% Vanguard pioneered the index investment funds   69% of their index investment funds outperformed their peer funds over the last ten years.   The AUM under index funds is around 6.3 $ trillion.   On average, the expense ratio of an index fund is approximately 0.07%.  Some examples of index funds are  Fund NameTickerAsset ClassAverage annual return (5 years)Expense Ratio500 Index Fund Admiral SharesVFIAXStock - Large-Cap Blend16.74%0.04Balanced Index Fund Admiral Shares  VBIAXBalanced  11.06%0.07%Vanguard Consumer Discretionary Index Fund Admiral Shares  VCDAXStock - Sector  19.17%0.10%Vanguard Developed Markets Index Fund Admiral Shares  VTMGX  International  8.48%0.07% Several of their mutual fund choices are available in ETFs, traded freely on the U.S. stock exchange.  The bottom line is that Vanguard has been an industry leader and has showcased top-notch corporate governance standards, which has pitched the IRA as a very trusted partner in investing.  FAQs What is Vanguard and how does it work? Vanguard is an American registered investment advisor based out of Pennsylvania. It was established in the year 1975 by John Bogle. What is the purpose of Vanguard? Vanguard is an investment company that offers a varied range of investment products to a varied clientele. Since then, the company has shown unbelievable growth in the assets under management (AUM). From 1975 to 2021, the AUM has increased from 1.7 billion USD to 7300 billion USD. How many funds does Vanguard have? Vanguard currently provides around 417 funds across the globe, out of which 210 are available in the United States and 207 are outside the U.S. market. 

ICICI Prudential Mutual Fund is the second-largest asset management company in India. With over Rs 3 lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMF offers products across asset classes.   Let us talk about the flagship product – ICICI Prudential Multi-Asset Fund. ICICI Prudential Multi-Asset Fund  1. Investment objective To generate capital appreciation for investors by investing predominantly in equity and equity-related instruments and income by investing across other asset classes.  2. Investment process   The Scheme proposes to invest across asset classes, in line with the asset allocation mentioned in the SID, with the aim of generating capital appreciation and income for investors. With this aim, the Investment Manager allocates the assets of the Scheme predominantly in Equity and equity-related instruments, and the remaining portion of the corpus in Debt, units of Gold ETFs/ETCDs/units of REITs & InvITs/preference shares.  3. Portfolio composition  The equity exposure is majorly in large-cap stocks at 54% and sectoral major exposure is to financial services and software. The top 5 sectors hold nearly 40% of the portfolio. The major exposure in the Debt sector is to Government backed securities like Government Bonds and T-Bills. Note: Data as of 30th Sep 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: ICICI Pru AMC  Top 5 Holdings ICICI pru multi-asset fund growth Name Sector Weightage % NTPC Ltd.  Public Sector Undertaking 8.29 Gold – 1kg - 1000gms Commodity 7.98 ICICI Bank Ltd. Financial Services 7.38 Bharti Airtel Ltd. Telecommunications 5.82 Oil and Natural Gas Corporation Ltd. Energy 4.89 Note: Data as of 30th Sep 2022. Source: ICICI Pru AMC  Performance over 20 years If you would have invested 10,000 at the inception of the fund, it would be now valued at Rs 4.69 lakhs. This fund has outperformed the benchmark in all time horizons.  Note: Performance of the fund since launch; Inception Date – Oct 31, 2002. Source: icicipruamc.com  The fund has given consistent returns and has outperformed the benchmark over the period of 20 years by generating a CAGR (Compounded Annual Growth Rate) of 21.40%  Fund Manager at ICICI Prudential Multi-Asset Fund Mr. Sankaran Naren, Mr. Ihab Dalwai, Mr. Anuj Tagra, Mr. Gaurav Chikane, and Ms. Sri Sharma are the fund managers of the Scheme. Mr. Sankaran Naren has been managing this scheme for 10 years and 8 months i.e., since February 2012. Mr. Ihab Dalwai has been managing this scheme for 5 years and 4 months i.e., since June 2017. Mr. Anuj Tagra has been managing this Scheme for 4 years and 5 months i.e., since May 2018. Mr. Gaurav Chikane (for ETCDs) Managing this fund for 1 year and 2 months since August 2021. Ms. Sri Sharma has been managing the scheme for around 1 year and 2 months i.e., since August 2021 Who should invest in ICICI Prudential Multi-Asset Fund?  Investors looking for  Long-term wealth creation solution.  Looking for portfolio exposure in multiple asset classes within the same fund.  Why invest in ICICI Prudential Multi-Asset Fund?  The scheme is suitable for investors who are looking for diversified exposure across asset classes  The portfolio works in a three-fold manner providing the agility of equity stock, regular income through debt instruments, and gold acts as a good hedge against inflation.  Horizon  One should look at investing for a minimum of 5 years or more  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The ICICI Prudential Multi-Asset Fund has a multi-asset allocation strategy that helps in portfolio diversification for an investor by providing the wealth creation potential through equity, regular income through debt, and gold acts as a hedge against inflation and market volatility. Disclaimer:This is not recommendation advice. All information in this blog is for educational purposes only. 

ICICI Prudential Mutual Fund is the second-largest asset management company in India. With over Rs 3 Lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMF offers products across asset classes.   Let us talk about the flagship product – ICICI Prudential Balanced Advantage Fund.  ICICI Prudential Balanced Advantage Fund  1. Investment objective To provide capital appreciation and income distribution to the investors by using equity derivatives strategies, arbitrage opportunities, and pure equity investments.  2. Investment process    The scheme uses an in-house asset allocation model to maintain an effective equity investment level to be above 65%. However, the actual equity level may go below 65% after considering the derivative exposure.  3. Portfolio Composition  The equity exposure is majorly in large-cap stocks at 67% and sectoral major exposure is to financial services that account for roughly one-third of the portfolio. The top 5 sectors hold nearly 40% of the portfolio.  Note: Data as of 30th Sep 2022. Source: ICICI Pru AMC  Top 5 holdings Name Sector Weightage % Reliance Industries Conglomerate 5.96 ICICI Bank Ltd Financial Services 5.00 Infosys Ltd. Information Technology 4.28 HDFC Bank Ltd Financial Services 3.72 Bharti Airtel Ltd. Telecommunications 3.19 Note: Data as of 30th Sep 2022. Source: ICICI Pru AMC Performance over 16 years If you would have invested 10,000 at the inception of the fund, it would be now valued at Rs 52,450. Note: Performance of the fund since launch; Inception. Date – Dec 29, 2006. The investment horizon is from 30th Dec 2006 to 10th Nov 2022. Source: icicipruamc.com  The ICICI Prudential Balanced Advantage Fund has given consistent returns and has outperformed the benchmark over the period of 16 years generating a CAGR (Compounded Annual Growth Rate) of 11.03%. Fund manager  The fund is ably managed by   Ihab Dalwai – is a Chartered Accountant and has been associated with ICICI Prudential since 2011.  Rajat Chandak – has completed his BCom (H) and is an MBA. has been associated with ICICI Prudential since 2008.  Sankaran Naren - is a B.Tech from IIT Chennai and MBA (Finance)from IIM Kolkata. He has been with ICICI Prudential since 2012.  Who should invest in ICICI Prudential Balanced Advantage Fund?  Investors looking for  Long-term wealth creation solution.  Looking for a dynamically managed portfolio.  Why invest in ICICI Prudential's balanced advantage fund?  This equity fund aims for growth by investing in equity and derivatives.  Get a smartly allocated portfolio according to market conditions.  Horizon  One should look at investing for a minimum of 5 years or more  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The ICICI Prudential Balanced Advantage Fund has a smart asset allocation strategy that helps in portfolio diversification for an investor. The Scheme is suitable for investors who are seeking to benefit from market volatility while maintaining fair equity allocation levels based on market valuations.  Disclaimer:This is not recommendation advice. All information in this blog is for educational purposes only. 

Earlier, we saw some of the best investment plans in India for five years. In this article, we will learn about some of the best investment plans in India for one year.   The investment options for periods as small as 1 year are largely restricted, mainly because the equity exposure has to be reduced considerably because of the volatility factor.   Given the short duration, choosing an investment with no risk is preferable. Here are some options to invest in. Best investment plans in India for one year 1. Debt funds  A debt fund is a mutual fund, an exchange-traded fund (ETF), or any other pooled investment product with fixed-income securities as the majority of the underlying investments.   Because debt funds have lower managing costs, their fees are lower than equity funds. Debt fund investors have the option to choose between passive and active products.   Debt funds are often known as credit funds or fixed-income funds. Investors seeking to conserve their capital and achieve low-risk income frequently invest in these funds.   Debt funds invest in a wide range of securities, each with its own set of risks the safest is the debt of the United States. Companies with a steady outlook and high credit quality issue investment-grade debt. High-yield debt, which lowers credit-quality enterprises mainly issues with good growth prospects, delivers higher returns but also carries a higher risk profile.   Debt funds are appropriate for people with short to medium-term investment horizons, where “short-term” refers to a period of 3 months to one year (this is the period we are talking about in this article) and “medium-term” refers to a period of 3 to 5 years.  2. Short-term funds   These are open-ended mutual funds with a maturity duration of 15 to 91 days depending upon the underlying instruments’ maturity period. These funds primarily invest in high-quality, low-risk assets. Liquid funds are an amazing choice for risk-averse investors and a great way to park your surplus money.   If you have a longer time horizon, say 2 to 4 months, you can invest in ultra-short-term funds. Short-term funds give higher returns than bank deposits, along with the provision of liquidity. Returns on these funds have historically ranged between 6 to 8%.  3. Low-risk funds  Low-risk mutual funds are those funds that have a small number of risk elements. These funds have a greater return guarantee since they primarily invest in government bonds for infrastructure, real estate, and other uses.   The low-risk investment portfolios of these funds ensure that the inflation rate is taken care of. The investment horizon is short because these funds invest many of their assets in debt securities.   Investors wishing to put their money in tax-efficient schemes other than fixed deposits can choose low-risk mutual funds.  4. Money market instruments  For the short term, money market instruments are great investment options. The main feature of these kinds of securities is that they can be converted to cash with ease, thereby preserving the cash requirements of an investor.   Trading of money market instruments is through certified brokers or a money market mutual fund. Some funds aim to keep their portfolio as diverse as possible via a good combination of various money market products to maximize the yield.   Some money market instruments are treasury bills, certificates of deposit, commercial paper, and banker’s acceptance. Source: Pexels Some funds available in India  1. ICICI Prudential Medium Term Bond Fund - Direct Plan The plan aims to maximize income while preserving the best possible return of yield, safety, and liquidity by investing in various debt and money market securities with varying maturities.  2. Nippon India Short-Term Fund - Direct Plan The fund invests in debt and money market instruments to shell out reliable returns for clients with a short investment horizon.   3. Aditya Birla Sun Life Low Duration Fund - Direct Plan Seeks to invest in high credit quality debt and money market instruments of short maturities.  4. Tata Money Market Fund - Direct Plan Investors looking for a safer alternative to liquid funds can invest in this fund. It has a moderate risk profile and invests in short-term money market instruments.  5. Aditya Birla Sun Life Corporate Bond Fund - Direct Plan The scheme’s investment goal is to create optimal returns while maintaining high liquidity by actively managing the portfolio and investing in high-quality debt and money market instruments.  6. ICICI Prudential All Seasons Bond Fund - Direct Plan Invests in various debt and money market securities with different maturities to achieve a balance of return and safety. FAQs Which SIP is best for 1 year? Debt funds Short-term funds Low-risk funds How can I grow my money in one year? There are many ways to grow and invest your money for one year. You can consider the following types of investments: Debt funds Short-term funds Low-risk funds Money market instruments Can I withdraw SIP anytime? Yes, investors can withdraw the amount or stop their SIP whenever they want. Does SIP have risk? Yes, investing in mutual funds via SIP does involve some level of market risk. Risk differs based on the type of investment. Connect with an expert advisor to get the right plan for you  TALK TO AN EXPERT

Education is critical to the economic prosperity of every economy. With increased urbanization, there has been significant growth in urban slums. The majority of the urban poor are unskilled or semi-skilled workers. The plight of the urban poor in slum regions stems mostly from their inability to keep up with the skilled workforce class and afford a respectable level of living.  It is essential to raise the educational levels of the urban poor for higher economic growth because slum dwellers in India have very low levels of education. To do this, the government has launched a number of programs. Importance of education in slums in India Educating the child group of semi-skilled and unskilled workers is an urgent requirement. Education is an important component of the development of human resources and is necessary for the country's economic success. All the key indicators of socioeconomic development include the economy's growth rate, fertility rate, fatality rate, infant mortality, and literacy rate. Everything is interrelated.  Only the literacy rate has historically been the major predictor of the other indicators' increase or decline. Recognizing this reality has raised awareness about the need to focus on literacy and primary education, not just for social fairness but also to promote economic growth, societal well-being, and societal cohesion. India's slum education level Slums in India have a low educational level. Various evaluations of slum regions suggest that slightly more than half of the children attend school. It also states that slum children have a significant over-age and dropout rate. Overage is frequently the result of late enrolment in school. Late admission is caused by demand (migration from rural regions to slums) and supply (lack of educational facilities for all children, short admission period, birth certificate need, etc.). One of the primary reasons why children do not receive a basic education is also financial difficulties. Savings is possible for all Save as much as you can. Saving as a technique is not affected by your income. All you are required to do is decide to save anything, whether it's 300/- or 500/- from your salary. When you develop the practice of trying to save money, no matter how tiny, it will not seem strange when you start to earn more. Whether you are a single parent or a family with many incomes, you should change your attention to saving for anybody who looks to you as a source and role model. Save as much money as possible into a savings account each week and maintain it there for unexpected situations and future educational expenses. 10 investment ideas for child education Read More Major problems   1. Schools The condition of the facilities themselves is among the main issues slum education in India faces. These schools frequently have too many students and not enough supplies or infrastructure. Children struggle to study and achieve as a result. Additionally, a lot of the teachers in the slums lack the necessary training and credentials. As a consequence, they are unable to give their kids a quality education. In addition, tuition might be prohibitively expensive for families with low incomes, preventing many kids from attending school at all. And last, discrimination against underprivileged families and children continues to be a serious issue in India. For those attempting to enhance education, all of these elements come together to form a perfect storm of difficulties.  Poor Indian children frequently skip school because they have to work to provide for their families. And when they attend school, the education they receive is frequently inadequate. Each class has an excessive number of pupils, and the instructors lack adequate training. As a result, a large number of kids in slums do not receive the education they require.  2. Teachers Kids in Varanasi's slums are frequently left on their own. Undernourished and ill-healthier youngsters are much more likely to live in poverty. In India, slum living standards are frequently hazardous and unhygienic. Slum teachers frequently lack the tools and education necessary to educate kids effectively. As a result, a large number of kids in slums do not obtain a quality education. One issue with schooling in slums is that teachers there are frequently unqualified. They might not have a college degree or a teaching certification. This implies that they may not be able to successfully teach the kids in their care since they are unfamiliar with the most recent teaching techniques. In addition, many teachers in slums work excessive hours for low pay.  This may cause kids to get exhausted and less productive in the classroom. Another issue is that slum schools frequently have too many students and are short on supplies like textbooks and school supplies. Children find it challenging to learn properly as a result of this. Last but not least, many kids in slums lack access to transportation, which prevents them from regularly attending school.  3. Government Lack of facilities, a lack of qualified teachers, and a lack of management are a few issues slum education in Varanasi, India, is dealing with. Children who live in poverty experience low educational achievements as a result of these issues. As a result, these kids frequently get left behind and miss out on opportunities to better their life. India's slum education has to be improved, and the government must do more. In Varanasi, the government has not provided enough funding for slum education. They assert that they lack the resources to raise academic standards or hire more credentialed teachers. The classrooms are also frequently overcrowded and lacking in essential supplies like textbooks and chalkboards.  Kids in these institutions receive a poor level of instruction and do not gain fundamental abilities like reading and writing.  A significant issue is India's slum situation. The issues with Varanasi's slum schooling have not been resolved by the Indian government. The most vulnerable children are those who live in poverty. They are compelled to live in slums and lack access to quality education. They are unable to pay for private education. The government must take action to solve this issue.  Steps to save money on a low income 1. Concentrate on savings first Set aside 5% to 10% of your earnings for savings each time you get paid before doing anything else. With this approach, you'll save money every month and know how much you will have at the close of the year. Even if you have obligations to pay, ensure you save something for yourself since emergencies usually arrive at the worst possible time. This is essential for understanding how to allocate money on a limited salary since it emphasizes forward-thinking. 2. Plan on a budget Establishing a budget is an excellent strategy to save money regardless of income level. Set a budget for food, bills, personal care, and so on, and make sure you don't overdo it. When creating a budget, be practical. First, research your family's food and spending patterns and devise a financial strategy to stiffen things up without attacking everyone. You may also think of deploying automatic budget dashboards and spending forecasting. Use them to plan your costs for a few months so you may create a budget that will help you save in the future. 3. Investments to protect the family's future Investing in avenues such as life insurance, mutual funds, and savings programs offers you a safety net and an excellent savings instrument. When used properly, you may develop your wealth to fulfill your monetary goals and future needs, like a kid's education. Investment programs assist you in meeting your savings needs by preparing you for the future and effortlessly building your wealth. FAQs How is education in slums? In India, slum living conditions are frequently hazardous and unhygienic. Slum teachers frequently lack the tools and education necessary to educate kids effectively. Because of this, many kids in slums need not obtain a quality education. The teachers in slums are frequently unqualified, which is one of the issues with the system. How right to education benefited the slum children? The right to education has aided in the education of slum children. They have benefited from this by being given a variety of chances. They can increase their income because education enables them to pursue better careers. This enables them to support their split families as well as oneself. What role education can play in the life of slum dwellers?  Education promotes the economic, moral, and intellectual development of people and, by extension, of the community. Not everyone, though, has been able to benefit from the current educational system.  Why are slum children deprived of education? One of the primary causes of children's absence from school was financial difficulties. Recent research suggests that the service charge for private education that was previously common in slum regions has risen and now serves "low-income" families' needs. Conclusion People with low incomes find it difficult to save because they either do not have enough money after regular expenses or aren't in the practice of saving. Nobody can deny the significance of saving, regardless of how they handle their finances. So, gather your thoughts, prepare carefully, and plan for your future needs. It may appear complex at first, but with a few modifications in your style of living and thinking, you'll be well on your way to a financially rewarding existence. Consult an expert advisor to get the right plan TALK TO AN EXPERT

In the previous article, we learned about the difference between debt funds vs hybrid funds. In this article, we will look into the difference between ETF vs FOF ETF (Exchange-traded funds) An ETF (Exchange-traded fund) is a collection or portfolio of stocks. It aims to track market indices and thus imitate at least the same returns.  They are the choice of those people who wish to trade in open-ended funds. Like stocks, ETFs are also listed and traded on the stock exchanges.   Since trading happens on the stock exchanges, the value of the ETFs depends upon the demand and supply the price fluctuates during trading hours and can be less or more than the NAV (Net Asset value).  ETFs are of various types, like Bond ETFs, Industry-specific ETFs, Commodity ETFs, Currency ETFs, etc. The taxability of ETFs is dependent upon the holding period LTCG (Long-term capital gains tax) is applicable if the holding period exceeds one year. Gains up to Rs 1,00,000 are not taxed and for gains above Rs 1,00,000, LTCG is suitable at 10% without indexation benefits. For a holding period of fewer than 12 months, an STCG (Short term capital gains tax) of 15% is applicable.  For Gold ETFs, STCG is applicable if the ETF’s holding period is less than 36 months; and LTCG post that period. The applicable STCG is in accordance with your income-tax slab, and the LTCG is 20% with indexation benefits. Source: Pexels FOF (Fund of Fund)  A Fund of Fund (FOF) is a fund that invests in various mutual fund schemes from either the same or different fund houses. FOFs are personalizable to cater to the investment goals and appetite of the investors.   In other words, FOFs are open-ended mutual funds that contain different types of mutual funds. Unlike ETFs, FOFs are not tradeable on the stock exchanges. FOFs’ trading happens once per day; hence they are less liquid than ETFs; The price of FOFs is calculated at the end of the trading day.   The different types of FOFs are international FOFs, gold funds, and asset allocation funds. For Funds of Funds, STCG is applicable if the ETF’s holding period is less than 36 months; and LTCG is suitable for a holding period exceeding 36 months.   The applicable STCG is per your income-tax slab, and the LTCG is 20% with indexation benefits.  In cost terms, ETFs are cheaper than mutual funds as they are passively managed; thus, their expense ratio is usually less than 0.5%. On the other hand, FOFs are a bit costly in that they are actively managed funds, and thus the management costs are added to the usual fee. ParameterETFFOFStructureETF is a basket of instruments (stocks, bonds, etc.) that tracks an index. For example – An ETF may track the Nifty 50 Index.FOF is a collection of mutual funds. May or may not track an index.PriceETFs trade like stocks on the exchange and thus they have a price and not NAV.Do not trade on an exchange and are available at NAV (Net Asset Value) as applicable. The NAV can be computed either daily, weekly, or as may be decided by the AMC in the prospectus of the fund.LiquiditySince it is traded like a stock, it has high liquidity. Thus, trading volume is a key indicator here.Low liquidity than ETF.ExpenseThe cheapest form of investment as the expense ratio is very low (generally less than 0.5%)Costlier than ETFs and also actively managed mutual funds. TaxesThe taxation for different ETFs is different which are Gold ETFs, Equity ETFs, and others.FOFs are taxed as debt funds despite the asset class they hold i.e. equity or debt. Taxation For Equity Exchange Traded Funds – Tax implications are dependent on the number of years an investor holds the ETFs. If –Holding period <1 year - capital gains earned will be considered short-term capital gains (STCG) and tax will be 15% Holding period >1 year - capital gains earned will be considered long-term capital gains (LTCG) and tax will be 10% after a 1 lakh exemption. For Gold and other Traded Funds - Tax implications are dependent on the number of years an investor holds the ETFs. If –Holding period <3 years - capital gains earned will be considered short-term capital gains (STCG). Gains will be added to the investor's income and will be taxed as per the slab. Holding period >3 years - Capital gains earned will be considered long-term capital gains (LTCG) and tax will be 20% after indexation benefits. FOFs - Tax implications are dependent on the number of years an investor holds the ETFs. If - Holding period <3 years - capital gains earned will be considered short-term capital gains (STCG). Gains will be added to the investor's income and will be taxed as per the slab. Holding period >3 years - capital gains earned will be considered long-term capital gains (LTCG) and tax will be 20% after indexation benefits FAQs Is ETF and FOF are same? ETFs are a set of securities much like mutual funds. While FOF is a Fund of Fund (FOF) that invests in various mutual fund schemes from either the same or different fund houses. Is investing in FOF good? Investing in FoF can help you save tax. Investors pay no capital gains tax at the time of rebalancing by the fund manager. Is ETF tax-free? No, Tax implications on ETFs are dependent on the number of years an investor holds the ETFs. If –o Holding period <1 year - capital gains earned will be considered short-term capital gains (STCG) and tax will be 15% o Holding period >1 year - capital gains earned will be considered long-term capital gains (LTCG) and tax will be 10% after 1 lakh exemption. TALK TO AN EXPERT

Business Insider reports that “Indian household savings fell to the lowest level in 5 years. With inflation eroding the purchasing power, individuals tap their savings for survival after the pandemic.” Furthermore, "gross financial savings in FY22 stood at 10.8% compared to 15.9% in FY21." It demonstrates a clear saving pattern during the pandemic and erodes it soon after the ban was lifted. The importance of saving money aligns with the lifestyle and the goals you want to achieve within the decided time frame. 6 reasons to save money wisely From blowing off emergency cash requirements to ensuring financial freedom, there are plenty of reasons to save money. 1. Live a debt-free lifestyle Business Insider news says, “ An average Indian spends ₹14,500 a month on average on credit cards."  As per Statista, “In June 2022, nearly 121 million points of sale transactions were made via credit card in India.” It was pretty low in 2019-2020, owing to pandemic blues. Relying on credit cards for every big and small purchase may impact your savings. A credit card is a high-interest debt that one must pay monthly. Instead, save a portion of your income to savings. It will help meet discretionary expenses. 2. Budgeting for retirement As per the Financial Express report, “A survey by PGIM Mutual Fund and Nielson reveals more than 51% of the Indians participants have not planned retirement savings yet. “  Shockingly, children’s spousal security and lifestyle emerged as primary concerns rather than retirement.  The allocation of household income fell from 34% to 30% over the past two years. It impacted the saving corpus and budgeting. Around 89% of respondents living in Joint families find themselves more financially secure than nuclear families in India.  The report reveals that 42% of Indians lack any secondary income source or have any thoughts about it. One must consider inflation and market conditions before choosing a retirement saving plan to counter this. Employers must work towards awakening employees on saving more towards PF or separate retirement accounts. The key aim here is to push the employees towards ensuring financial freedom. 3. Paying effortlessly toward a child’s education dreams As per the Economic Times, “the average yearly fee for middle school is around ₹1.6 lakhs to ₹1.8 lakh/year. It totals up to ₹9.5 lakh to 12 lakh for Higher Secondary Education.” Parents must ensure nearly 10 lakhs for legal education in India.   Parents pay ₹25000/year towards sports, extracurriculars, and school transport alone. The education expenditure graph goes up to ₹20 lakhs after including general education for up to college years. EduFund lets parents plan and save for their child’s education with the help of financial experts. 4. Attending Medical Emergencies However, there are other emergencies too, like - urgent cash needs, cash to suffice sudden job loss and fulfill a time-sensitive requirement, and medical tops them all.   It is the worst situation to encounter when one goes cashless in medical emergencies. Illness does not wait. Thus, it is ideal to invest at least 30% of your income in medical insurance and savings. However, the statistics are good regarding health insurance coverage awareness. The Times of India says, “Every 3 in 5 Indians saw their health insurance premiums shoot by 25% or more in 2022.” It impacts savings and discourages one from taking life for granted. 5. Leaving behind a legacy Financial freedom must travel from generation to generation. “Around 72% of Indians do not know the potential ways to save and invest money.” They encounter confusion while walking up to the aim of financial freedom If you are a first-time investor, you can begin by investing in low-risk instruments. Dedicate only a small and comfortable income portion to long-term investments. Go for fixed-income generating opportunities that reduce the risk of losing your wealth. It will help you analyze the importance of saving money as a source of multiplying wealth sources. 6. Purchasing big-ticket items and investments Big-ticket items or lifestyle-enhancing instruments like- car and home investments require significant savings. Buying a home is one of the common dreams that Indians share. As per Indian Housing Report, “Only 69% of urban households have their own home. Rest are migrants.” It is far lower than in rural areas (95%). The reason is – Affordability. For a mortgage, you must ensure at least a 20% deposit. For that, you must save. If you could provide a 20% deposit for the mortgage, you could fetch affordable interest rates and use the rest of the savings for renovation or cover moving costs. Conclusion Saving is crucial for every life goal. EduFund is an ideal platform to save for your child and family’s future: Financial planning and goal management assistance College Cost Calculator to find future costs Variety of savings plans - mutual funds, US ETFs, and digital gold Educational counseling and financial guidance Consult an expert advisor to get the right plan TALK TO AN EXPERT

What are the advantages of investing in emerging markets? What do you mean by emerging markets? Let’s figure it out in this blog. What is an Emerging Market Fund? A country that is rapidly expanding in size and scope and is anticipated to be a developed country is called an emerging market. Around 25 economies across the globe have been labeled as emerging markets by the main index provider in the world, MSCI.  The four biggest emerging markets worldwide are, however, Brazil, Russia, China, and India. These markets have stronger growth rates, but there is also a bigger risk involved. For investors looking to invest in a single nation or through a diversified portfolio, there are also a lot of possibilities accessible. So by restricting exposure to a single stock or nation, investing in an emerging market fund enables investors to spread the risk. An investment vehicle known as an emerging market fund puts the majority of its money into securities from developing nations. These funds, which invest in emerging market debt or equities to create a diversified portfolio, are equity funds, debt funds, or exchange-traded funds (ETFs).  These funds provide growth investors with a variety of appealing and risky investment possibilities. In other words, emerging market funds look to take advantage of the chance for return presented by these economies. Investors will have the choice of both passive and active mutual funds that offer exposure across nations, industries, and market capitalization in the emerging markets category. An emerging market fund, for instance, might opt to allocate 20% of its resources to Russia.  Additionally, it might extend this to the banking, auto, petroleum, power, etc. sectors and concentrate more on large-cap firms in these industries. It can also decide which option is chosen for each nation. As a result, this fund provides diversity as well as a chance to profit from the expansion of the economy. Features of Emerging Market Funds The characteristics of emerging market funds include the following:  1. Diversification  Emerging market funds give investors a fantastic chance to expand their investment portfolio because they invest in equity and debt instruments across developing nations. This also makes it possible for investors to profit from the dynamics of emerging market markets.  2. Risk  It is always challenging to monitor the social and economic aspects of rising nations because the investment portfolio consists of securities from those nations. Acquiring accurate technical understanding regarding their market movements is likewise challenging. This increases the risk that developing market funds face. 3. Money management  Real-time market monitoring is necessary since it is critical to keep tabs on the developments in rising markets. Therefore, these investments are handled by fund managers, who are experts with years of experience.  4. Exposure  Emerging market funds invest in equities and debt instruments of different nations, allowing them to profit from their investment by adjusting to changing market conditions. This enables them to profit from the expansion of these nations' economies. Advantages of Investing in Emerging Market Funds 1. Geographical Expansion  The success of the Indian markets has an impact on the returns on an investor's portfolio which includes Indian stocks. However, including exposure to these funds broadens the investor's portfolio's geographic diversification. Additionally, it enables investors to profit from the economic cycles of developing nations.  2. Diversification of holdings  The secret to a successful investment portfolio is diversification. For investors with a higher risk tolerance who want to diversify their portfolios by investing in various emerging markets, there are emerging market funds. 3. Professional Management  A fund manager can invest an investor's money wisely with the aid of precise data, technical know-how, and international investing experience. Any new investor can use an emerging market fund to take advantage of this opportunity in emerging markets.  Disadvantages of Investing in Emerging Market Funds 1. Risk Inflation Risk: In emerging markets, rapid economic expansion frequently causes inflation.  Currency Risk: If investments are held in other nations whose currencies fluctuate against the US dollar, those investments will likewise vary.  Liquidity Risk: Securities trade less frequently in many international marketplaces. In such circumstances, it becomes challenging to acquire or sell a few particular shares. In other words, these markets lack the developed economies' levels of liquidity.  Political Risk: Political unrest and wars are more common in emerging nations, which puts pressure on the stock and bond markets. 2. Constant Surveillance  Investors must monitor a variety of market trends. Any country's market performance may be impacted by political, social, or economic changes. The performance of funds may be impacted as a result.  3. Lack of information  Fund managers might not consistently follow a foreign company. Investors consequently frequently make decisions based on incomplete information. Who should invest in funds for Emerging Markets?  Investors must feel at ease with the dangers of investing in emerging markets. By utilizing overseas markets, investing in this fund allows for portfolio diversification. Investors might also think about investing in these funds if they have the time to research international markets and have a working knowledge of financial instruments and their components. For growth investors looking for long-term investment opportunities across international markets, these products are excellent. Conclusion  Emerging markets are quite risky and take a long time to grow. For long-term investors with a high-risk tolerance, this fund is a good choice. But these don’t come without their limitations, so read the terms and risks involved before investing in any funds.  If you are still confused or need information regarding this, our team of efficient financial advisors is constantly available to guide and help you through the process. Consult an expert advisor to get the right plan TALK TO AN EXPERT