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June 19, 2021

Baroda Mutual Fund: NAV, Performance & Latest MF Schemes

baroda mutual fund

Baroda Asset Management India AMC is the Baroda Mutual Fund’s investment manager, which was launched in 2008. It is a completely owned subsidiary of the Bank of Baroda.  Baroda AMC was established in 1992. 

Baroda Pioneer Asset Management Company is a collaboration between Pioneer Investments and the Bank of Baroda.  Pioneer Global Asset Management S.p.A was the Asset Manager of an Italian Multinational Banking and Financial Services Company – UniCredit S.p.A. It was set up in 1928 in Milano, Italy.

In 2008, Pioneer Global Asset Management S.p. An acquired a 51% stake in Baroda Asset Management Company Ltd and formed Baroda Pioneer Asset Management Company Limited.

Baroda Pioneer Asset Management Company Limited is a Trust which is registered with SEBI as per the SEBI (MF) Regulations, vide registration number MF/018/94/2, and is also registered under the Indian Trusts Act. It received endorsement for name change BOB Mutual Fund to Baroda Pioneer Mutual Fund vide SEBI letter no. IMD/RB/134922/08, dated August 12, 2008.

As of 31st March 2021, the total number of schemes under the AMC is 75 bifurcated as Balanced (9), Equity (13), Fixed Maturity Plans (2), Gilt Funds (2), Income Funds (5), Liquid Funds (13), Short Term Income Funds (6), and Ultra Short Term Funds (11). The corpus under management is Rs. 9641.0917 crores. (as of 31-Mar-2021)

It serves the various management needs of its investors in India. The Company offers its service through 54 distribution centers in India in various schemes.

Baroda AMC comprises a team of highly qualified fund managers who provide valuable insights into various schemes that include direct dividend plans, direct dividend plans, direct growth plans, regular growth plans, regular dividend plans, etc.

The fund house has offices in 40 cities across India Bank of Baroda and Pioneer Global Asset Management SpA, which has experience of 80 years in the industry, agreed on 5th October 2007.


Bank of Baroda, the AMC has a widely spread branch network and has a strong investor base in the country. 

  • The AMC offers a range of equity, debt, and money market instruments to meet the financial needs and goals of investors in every segment it can be.  
  • Baroda Pioneer AMC enhances the existing product range and focuses on the overall customer experience.
  • It has a rich investment history and market experience.
  • It dedicates its work to creating a unique servicing platform to meet the investment needs of existing and future customers in India and abroad. 
  • Currently, Baroda AMC is functioning in 40 locations in India with an AUM of Rs 9130.22 Cr.  

Important information about Baroda Mutual Fund

SponsorPioneer Global Asset Management S.p.A. and Bank of Baroda
TrusteeBoard of Trustees
Investment ManagerBaroda Pioneer Asset Management Company Limited
Statutory DetailsBaroda Pioneer Mutual Fund (Formerly known as BOB Mutual Fund), being a Trust registered under the Indian Trusts Act and registered with SEBI under the SEBI (MF) Regulations,
Vide registration numberMF/018/94/2
Endorsement for the change of its nameEndorsement for a name change to Baroda Pioneer Mutual Fund from BOB Mutual Fund vides SEBI letter no. IMD/RB/134922/08, dated August 12, 2008
No of schemes75  
CEOAnthony Heredia
CIOSanjay Chawla
Investor Relations OfficeKishore Kumar
Registrar and Transfer AgentKFin Technologies Pvt Ltd.
CustodianDeutsche Bank
Quarterly AUM8285.75
AddressHead Office: 501 titanium, 5th floor, Western express highway, Goregaon (e), Mumbai – 400063 
Service Centre201-203, Shaili Building, Opp. Madhusudhan House, Off C.G Road, Ahmedabad-380006
Baroda mutual fund customer care number+91 22 6848 1000, +91 22-3074 1000, 66668819, 079-26400527/528
Emailinfo@barodamf.com or info@barodapioneer.in
Websitewww.barodamf.com, www.barodapioneer.in

Ten performing Baroda mutual fund schemes

Baroda has mutual funds in almost all categories permitted by the Securities and Exchange Board of India or SEBI. Here is a list of the ten best-performing Baroda mutual fund schemes in India.

1. Baroda Pioneer Treasury Advantage Fund (Category – Debt – Low Duration fund)

The main objective of the scheme is to provide liquidity and optimal returns and liquidity through a portfolio that consists of money market instruments and debt securities.

The Baroda Pioneer Treasury Advantage Fund, with a NAV of 1560.49 (as of 30th April 2021), belongs to the Debt – Low Duration fund, ranked 4 in the category.

This open-ended fund was launched on 24 Jun 09 and has given trailing returns of 27.8% in one year (as of 30th April 2021), and -8.5% in 3 years. The fund manager is Mr. Alok Sahoo.

Key information

Minimum InvestmentINR 5,000
Minimum SIP InvestmentINR 500
Exit LoadNIL
Return Since Inception (24 Jun 09):3.8% (as of 30th April 2021)
AssetsINR 34 Crore (as of 31st March 2021)
Expense Ratio0.9% (as of 31st March 2021)

2. Baroda Pioneer Liquid Fund (Category – Debt – Liquid Fund)

The main objective of the scheme is to produce income by investing in a portfolio of debt securities and money market with a high level of liquidity

The Baroda Pioneer Liquid Fund, with a NAV of 2357.14 (as of 30th April 2021), belongs to the Debt-Liquid Fund, ranked 22 in the category.

This open-ended fund was launched on 5 Feb 09 and has given trailing returns of 3.3% in one year (as of 30th April 2021), and 5.6% in 3 years. The fund manager is Mr. Alok Sahoo.

Key Information

Minimum InvestmentINR 5,000
Minimum SIP InvestmentINR 500
Exit LoadNIL
Return Since Inception (5 Feb 09):7.3% (as of 30th April 2021)
AssetsINR 4798 Crore (as of 31st March 2021)
Expense Ratio0.22% (as of 31st March 2021)

3. Baroda Pioneer Multi-Cap Fund (Category – Equity – Multi-Cap fund)

The main objective of the scheme is to create long-term capital appreciation from a well-managed portfolio of equity and related instruments.

The Baroda Pioneer Multi-Cap Fund, with a NAV of 132.87 (as of 30th April 2021), belongs to the Equity – Multi-Cap Fund, ranked 37 in the category.

This fund was launched on 12 Sep 03 and has given trailing returns of 55.7% in one year (as of 30th April 2021), and 9.2% in 3 years. The fund manager is Mr. Sanjay Chawla.

Key Information

Minimum InvestmentINR 5,000
Minimum SIP InvestmentINR 500
Exit Load0-365 Days (1%),365 Days and above (NIL).
Return Since Inception (12 Sep 03):15.8% (as of 30th April 2021)
AssetsINR 972 Crore (as of 31st March 2021)
Expense Ratio2.54% (as of 31st March 2021)

4. Baroda Pioneer Hybrid Equity Fund (Category – Hybrid – Hybrid Equity fund)

The objective of the scheme is stability through a well-balanced portfolio and long-term capital appreciation that comprises equity, money market instrument, equity-related instruments, and debt securities.

The Baroda Pioneer Hybrid Equity Fund, with a NAV of Rs. 69 (as of 30th April 2021), belongs to the Hybrid Equity fund, ranked 21 in the category.

This fund was launched on 12 Sep 03 and has given trailing returns of 42.2% in one year (as of 30th April 2021), and 6.2% in 3 years. The fund manager is Mr. Sanjay Chawla.

Key information

Minimum InvestmentINR 5,000
Minimum SIP InvestmentINR 500
Exit Load0-12 Months (1%),12 Months and above (NIL)
Return Since Inception (12 Sep 03):11.6% (as of 30th April 2021)
AssetsINR 403 Crore (as of 31st March 2021)
Expense Ratio2.45% (as of 31st March 2021)

5. Baroda Pioneer Short Term Bond Fund (Category – Debt – Short term Bond fund)

The aim of the Scheme is to create income from a portfolio constituted of money market securities and short-term debt.

The Baroda Pioneer Short-Term Bond Fund, with a NAV of Rs. 22.949 (as of 30th April 2021), belongs to the Hybrid – Short-term Bond fund, ranked 21 in the category.

This fund was launched on 30 Jun 10 and has given trailing returns of 7.3% in one year (as of 30th April 2021), and 7.5% in 3 years. The fund manager is Mr. Alok Sahoo.

Key Information

Minimum InvestmentINR 5,000
Minimum SIP InvestmentINR 500
Exit Load0-15 Days (0.25%),15 Days and above (NIL)
Return Since Inception (30 Jun 10):8% (as of 30th April 2021)
AssetsINR 360 Crore (as of 31st March 2021)
Expense Ratio1.31% (as of 31st March 2021)

6. Baroda Pioneer Banking and Financial Services Fund (Category – Equity – Sectoral fund)

The investment aim is to create a long-term capital appreciation for stakeholders from a portfolio invested in equity and related securities of companies invested in the Banking & Financial Services Sector.

The Baroda Pioneer Banking and Financial Services Fund, with a NAV of Rs. 26.52 (as of 30th April 2021), belongs to the Equity – Sectoral fund, ranked 32 in the category.

This fund was launched on 22 Jun 12 and has given trailing returns of 43.9% in one year (as of 30th April 2021), and 7.8% in 3 years. The fund manager is Mr. Sanjay Chawla.

Key Information

Minimum InvestmentINR 5,000
Minimum SIP InvestmentINR 500
Exit Load0-365 Days (1%),365 Days and above (NIL)
Return Since Inception (22 Jun 12):11.6% (as of 30th April 2021)
AssetsINR 54 Crore (as of 31st March 2021)
Expense Ratio2.61% (as of 31st March 2021)

7. Baroda Pioneer Large Cap Fund (Category – Equity – Large Cap fund)

The primary goal of the Scheme is to create capital appreciation by investing in a diversified portfolio of equity and equity-related securities of large-cap companies.

The Scheme may also invest in money market securities and debt. But, there is no guarantee that the investment aim of the Scheme will be achieved.

The Baroda Pioneer Large Cap Fund, with a NAV of Rs. 18.54 (as of 30th April 2021), belongs to the Equity – Large Cap fund, ranked 59 in the category.

This fund was launched on 22 Jun 10 and has given trailing returns of 43.2% in one year (as of 30th April 2021), and 10% in 3 years. The fund manager is Mr. Sanjay Chawla.

Key Information

Minimum InvestmentINR 5,000
Minimum SIP InvestmentINR 500
Exit Load0-365 Days (1%),365 Days and above (NIL)
Return Since Inception (22 Jun 10):5.8% (as of 30th April 2021)
AssetsINR 41 Crore (as of 31st March 2021)
Expense Ratio2.59% (as of 31st March 2021)

8. Baroda Pioneer Conservative Hybrid Fund (Category – Hybrid – Hybrid Debt fund)

The primary goal of the Scheme is to generate long-term capital appreciation by investing a portion in equity and equity-related instruments and to generate regular income through investment in debt and money market instruments.

The Baroda Pioneer Conservative Hybrid Fund, with a NAV of Rs. 29.0339 (as of 30th April 2021), belongs to the Hybrid – Hybrid Debt fund, ranked 44 in the category.

This fund was launched on 8 Sep 04 and has given trailing returns of 10% in one year (as of 30th April 2021), and 9.4% in 3 years. The fund manager is Mr. Alok Sahoo.

Key Information

Minimum InvestmentINR 5,000
Minimum SIP InvestmentINR 500
Exit LoadNIL
Return Since Inception (8 Sep 04):6.6% (as of 30th April 2021)
AssetsINR 34 Crore (as of 31st March 2021)
Expense Ratio2.07% (as of 31st March 2021)

9. Baroda Pioneer Mid-Cap Fund (Category – Equity – Mid Cap)

The primary goal of the Scheme is to create capital appreciation by investing in a diversified portfolio of equity and equity-related securities of growth-oriented mid-cap stocks. But, there is no guarantee that the investment goal of the Scheme will be achieved.

The Baroda Pioneer Mid-Cap Fund, with a NAV of Rs. 12.99 (as of 30th April 2021), belongs to the Equity – Mid Cap fund, ranked 42 in the category. This fund was launched on 4 Oct 10 and has given trailing returns of 66.1% in one year (as of 30th April 2021), and 7.6% in 3 years. The fund manager is Mr. Sanjay Chawla.

Key Information

Minimum InvestmentINR 5,000
Minimum SIP InvestmentINR 500
Exit Load0-365 Days (1%),365 Days and above (NIL)
Return Since Inception (4 Oct 10):2.5% (as of 30th April 2021)
AssetsINR 55 Crore (as of 31st March 2021)
Expense Ratio2.6% (as of 31st March 2021)

10. Baroda Pioneer ELSS 96 (Category – Equity – ELSS fund)

The main aim of the scheme is to provide the investor with long-term capital growth and also tax benefit under section 80C of the Income Tax Act, 1961.

Baroda Pioneer ELSS 96, with a NAV of Rs. 57.22 (as of 30th April 2021), belongs to the Equity – ELSS fund. This fund was launched on 2 Mar 15 and has given trailing returns of 54.3% in one year (as of 30th April 2021), and 6% in 3 years. The fund manager is Mr. Sanjay Chawla

Key Information

Minimum InvestmentINR 5,00
Minimum SIP InvestmentINR 500
Exit LoadNIL
Return Since Inception (2 Mar 15):6.5% (as of 30th April 2021)
AssetsINR 187 Crore (as of 31st March 2021)
Expense Ratio2 % (as of 31st March 2021)

How to invest in Baroda Mutual Fund using EduFund?

Investing in Bank of Baroda Mutual Fund AMC’s mutual funds is a preferred and recommended way to create wealth for meeting financial goals. The procedure to invest in these funds is quite simple and convenient using the company’s official website or through EduFund. 

EduFund is a renowned portal registered with AMFI, BSE, and SEBI with zero fees to sign up. The investment logged in by the individual will reflect in his EduFund account within 3-5 business days.

Here are a few steps that need to be followed to invest in Baroda AMC mutual funds:

Step 1: The investor needs to visit the official website of Baroda AMC or use a Baroda AMC login to register at EduFund to complete his KYC & become investment-ready within minutes

Step 2: On the home screen, he should search and type the name of the respective AMC in the search bar and select the relevant mutual fund he wants to invest in,

Step 3: On the AMC page, after selecting the relevant Mutual Fund, he should click on ‘Invest Now’.

Step 4: He should then select the mode of payment if it would be a one-time lump sum payment, or select SIP, after which he needs to click on ‘Proceed to Payment’.

Step 5: He can make an online payment using his debit/credit card or use his net banking details to complete the transaction.

baroda mutual fund in India

Documents required to invest in Bank of Baroda Mutual Fund

It is mandatory to have KYC details and other proofs verified to invest in mutual funds, which can be done in a fully digital and hassle-free manner.

A regular investor simply needs to log in and start investing in mutual funds. For a first-time investor, the following documents are required:

  • Application Form
  • Photographs of the investor
  • Identity Proof
  • Income Proof
  • PAN Card Details
  • Personal Details
  • Address Proof
  • Bank Account Details
  • Nominee & FATCA Declarations

Baroda AMC Tax Saving Mutual Funds (ELSS)

Baroda ELSS Funds are diversified equity funds that offer tax savings under section 80C of the Income Tax Act, 1961, and give the investor an opportunity for long-term wealth creation.

These funds are ideal for investors who have a higher risk appetite and have a lock-in period of 3 years.

NameType of FundMinimum InvestmentCategory Returns3-year returns
Baroda Equity Linked Saving Scheme 96 Direct-Growth  ELSSRs. 5003.10% – 22.28%  9.30
Baroda Equity Linked Saving Scheme 96 Direct-Dividend Pay-outELSSRs. 5003.10% – 22.28%  9.30

Using the Baroda Mutual Fund Calculator 

Investments in Baroda Mutual Funds help achieve long-term goals by investing in various equity, debt, and liquid mutual funds within the AMC.

Baroda Mutual Fund Calculator helps the investor assess the amount of his present savings and shows how the savings amount can grow over a period.

To use the Baroda Mutual Fund Calculator, the investor should input data on the calculator like income, age, amount to be invested, expected rate of returns, etc.

Fund Managers of Baroda Mutual Fund AMC

Fund Managers are the assets of any AMC who are experts providing professional guidance to investors to manage various assets, direct the fund management decisions, and achieve their financial goals.

It is one of the most crucial considerations before investing to opt for the best and most active fund manager to manage the investments.

Top-performing Fund Managers of Baroda Mutual Fund

Baroda AMC – Equity Fund Managers

  1. Mr. Sanjay Chawla – Chief Investment Officer at Baroda Pioneer Asset Management Company

Mr. Chawla has over 30 years of experience in Equity Research, Fund Management, and Management Consultancy. He has contributed to the Indian Finance Industry for over 35 years, wherein he is presently employed as the Chief Investment Officer of Baroda Pioneer Mutual Funds. 

Mr. Sanjay Chawla completed his MMS from BITS Pilani before he joined the financial market industry. He had worked in a foray of MNCs and other established financial companies before he ventured into Baroda AMC. He was employed as Senior Fund Manager of Equity Schemes with Birla Sunlife AMC.

He has also worked as Head of Research with SBI Capital Market, then with Motilal Oswal Securities, IDBI Capital Markets, IIT Invest Trust and Lloyd Securities, and SMIFS Securities where he was making strategies and handling different equity schemes.

  1. Mr. Dipak K Acharya – Fund Manager- Equity at Baroda Pioneer Asset Management Company

Mr. Acharya has been associated with Baroda AMC since September 2009, and it has been over 9 years now that he has been working in the investment area as a diligent Fund Manager in the asset management industry.

Before he joined Baroda AMC, he was the Fund Manager at BoB Mutual Fund from August 2003. Before he became a fund manager, he was working in the Treasury Department and Credit Department for 10 years at the Bank of Baroda. Academically, Mr. Acharya is an M. Com with other additional qualifications to his academic supremacy like AICWA, CAIIB, and PGPMS.

  1. Mr. Pratish Krishnan – Equity and Senior Analyst at Baroda AMC

Mr. Krishnan has over 15 years of experience in Equity Research, and currently, he is a Fund Manager and an Equity and Senior Analyst at Baroda Pioneer Asset Management Company.

He. Earlier, he worked with famous institutional brokerage houses like Antique Finance for two years, till 2014, and Bank of America Merrill Lynch for 6 years till 2012. Academically, Mr. Krishnan has done his MMS in Finance and is a B. Com Graduate. 

Debt Fund Managers – Head of Fixed income at Baroda Pioneer Asset Management Company

  1. Alok Sahoo

Mr. Sahoo is the Head of Fixed income at Baroda Pioneer Asset Management Company and has about 13 years of experience in the asset management industry. He has relevant experience in the credit research of companies. Before working for Baroda AMC, he worked with other giants like UTI Mutual Fund and HSBC Mutual Fund as Fixed Income Fund Manager.

He was also a Fund Manager at HBC Asset Management in the Employee Provident Fund department. Academically. Mr. Sahoo is a Management Graduate in Finance from Xavier’s Institute of Management, Bhubaneshwar, with a Bachelor of Engineering Degree from NIT Rourkela. He has also done FRM – Financial Risk Management conducted by the Global Association of Risk Professionals. Additionally, he has passed three levels of CFA, which was conducted by the CFA Institute (AIMR).

  1. Ms. Hetal P. Shah – Fund Manager- Debt at Baroda Pioneer Asset Management Company

Ms. Shah has been associated with the Company since December 2006 and has about 14 years of experience in treasury and fund management. She has been working at Baroda AMC for 10 years now, and earlier, she worked in the Treasury Department of Bank of India from May 1999. Academically, Ms. Shah has done her B.Com., MBA in Finance and JAIIB.

  1. Mr. Karn Kumar – Fund Manager-Debt and Senior Credit Analyst at Baroda Pioneer Asset Management Company

Mr. Kumar has over 13 years of experience in Credit Research, Fixed Income, and Corporate Finance. Before joining Baroda AMC, he was associated with CRISIL Limited and ICICI Bank in credit research and structure finance. He has also worked with Sterlite Industries Limited in the Corporate Finance Team. Academically, Mr. Kumar is a qualified Chartered Accountant and is also a B. Com (Hons) Graduate.

Why should you Invest in Baroda Mutual Fund using EduFund?

Baroda Mutual Funds AMC is a SEBI-regulated investment securities organization that helps investors earn financial gains over an extended period. Most of the Open-Ended Schemes provide easy liquidation.

Baroda Pioneer Mutual Funds further provides easy investing and redemption in a mutual fund. Through EduFund, it aims at increasing returns, minimizing risk, and offering the best-diversified portfolio in the interest of the investor. 

The Baroda AMC fund house also gives investors access to opt for SIPs – Systematic Investment Plans through which they can invest a part of their monthly income.

Baroda Mutual funds AMC keeps updating the latest NAV and portfolio and offers complete transparency to its investors, and is one of the largest platforms to invest in.

Select EduFund for investing in Baroda Mutual Fund

EduFund’s experienced consultants give you customized solutions for all your financial goals. You can start investing from a lowly INR 5,000 and grow your capital comfortably.

With EduFund, you get the following benefits:

  • Customized Research-Based Financial Plan –  EduFund’s scientific fund tracker screen over 1 lakh data points and 400 financial scenarios to recommend you the best mutual funds. 
  • Customer-Friendly Counsellors Help You Create a Financial Plan – EduFund’s counselors are trained to handle all kinds of queries from customers. They spend as much time with you as you need and resolve all your issues to help you create a robust financial plan.
  • Invest Less, Earn More – Not only the best Indian mutual funds, but EduFund also offers you the facility to invest in US Dollar ETFs and international mutual funds.
  • Use Free Tools – EduFund offers various free tools for its customers, including College Savings Calculator, SIP calculator, etc. 
  • No Technical Expertise Required – You do not need to be an expert in finance to understand which mutual fund is the best for you. EduFund does it for you.
  • Value-Added Benefits – You may get value-added benefits like no commission, free advisory, and nil-hidden charges.
  • Secure Transactions – EduFund is RIA-registered and uses top-class 128-SSL security to enable safe transactions.
  • Special Support for Children’s Education – EduFund has a dedicated team of experts who help you fulfill your children’s educational goals. 
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4 W’s of Balanced Advantage Funds

4 W’s of Balanced Advantage Funds

What is a Balanced Advantage Fund? A balanced advantage fund is a fund that can invest 0-100% in the equity market or 0-100% in the debt market dynamically as per the prevailing market condition. For example - If a fund manager finds that the price of the equity market has gone up, he will tilt the portfolio more toward the debt market. Likewise, if the equity market trades at a discount, then the fund manager can tilt/shift the portfolio toward the equity market.  The valuation is the internal process of the fund. Based on valuation, the fund manager can take the call. This way, the fund manager can take the opportunity and change the asset allocation. The fund manager can go aggressive in the equity market or can also decide to play conservatively to reduce the portfolio's volatility. The aim is to minimize the portfolio's downside risk and maximize the returns.  Who should invest? Investors who are looking for long-term wealth creation. Investors who are not comfortable with the market volatility. Investors who do not want to face high volatility and looking for equity-like returns. Investors who are unsure which type of fund they should invest in, whether in the equity or debt-oriented fund. Risk-averse equity investors with an investment horizon of more than three years. Additional read: Financial mistakes to avoid Why should you invest? A balanced advantage fund is a dynamically rebalancing fund between two asset classes, i.e. equity and debt. It has the complete flexibility of rebalancing from 0-100% in both asset classes. It provides you with better risk-adjusted returns. It manages the equity market volatility and provides stability in the portfolio by diversifying the portfolio into the debt market. It offers you equity-like returns, which help your portfolio to grow at a much faster rate than debt funds and also helps you to beat inflation. Minimizes the downside risk and provides scope for growth by investing in the equity market. When should you invest? When the volatility in the equity market increases you do not want to have such high exposure to the prevailing volatility. When you want equity-like returns but do not want to face high liquidity. First-time mutual fund investor looking for long-term wealth creation. Conclusion Try to allocate some portion of your portfolio towards a balanced advantage fund if you want to reduce the portfolio's volatility. A balanced advantage fund is like a season fund. FAQs What is a Balanced Advantage Fund? A Balanced Advantage Fund can dynamically invest 0-100% in either the equity or debt market, depending on market conditions. Who should consider investing in Balanced Advantage Funds? Investors seeking long-term wealth creation, those uncomfortable with market volatility, and those unsure about equity or debt-oriented funds can benefit. Why invest in Balanced Advantage Funds? These funds offer flexible asset allocation, better risk-adjusted returns, and stability by diversifying into the debt market. They provide equity-like returns, growth potential, and risk mitigation. When is the ideal time to invest in Balanced Advantage Funds? Consider these funds when equity market volatility increases, and you want equity-like returns without excessive risk. What is the aim of Balanced Advantage Funds? The aim is to minimize portfolio downside risk, maximize returns, and adapt to market conditions, providing both stability and growth.
5 financial things to consider before child planning.

5 financial things to consider before child planning.

Both life and wallet will never be the same once you decide to have a baby. No event in your life will signify financial change quite the way this one does, from the first prenatal appointment to the day of college graduation (and beyond). 5 financial things to consider before child planning 1. Create a budget Before you start child planning, you need to have a budget in place. You and your partner may need to create a realistic budget based on your expenses and your streams of income. Once you know how much you can afford to spend, you will be able to tackle the costs easily. A new child is a new family member that needs space! So if you need extra space once the baby is born, figure out what kind of home you can afford, whether it's a slightly larger apartment, a warm cottage, or a pricey house. Will you want the latest baby things or your sister’s passed-on ones? Think about what sort of child care would you require and get candid with your expenses before you start making any purchases. Money Management Tips for Homemakers Read More 2. Costs associated with birth As new parents, you need prenatal vitamins, alternative therapies, labor and delivery alternatives, and screening tests. Give yourself enough time to change or upgrade insurance plans should you need more comprehensive coverage. Good health insurance is vital in this economy. Hospital bills, medical fees, and maternity costs can be high. According to estimates from the industry, a straightforward delivery could cost between Rs 50,000 and Rs 70,000, but a private specialty hospital could charge up to Rs 2-3 lakh. A cesarean delivery could result in a cost rise of up to Rs 4-5 lakh. Before having a kid, you should make financial arrangements for the costs associated with the delivery and child care. 3. Consider maternity leave The vast majority of Indian employees are not entitled to paid family leave. If the mother is employed, you might need to think about taking a lengthier (unpaid) maternity leave or a sabbatical for a year or two. This can be a huge financial loss for families that rely on both streams of income. Paid parental leave is not always an option. Find out if your workplace offers paid leave for new parents and if there are any policies in your favor that you can utilize. Determine the number of weeks covered and the proportion of your salary that is used. Do you have to use your sick and vacation days first? If you don't have access to paid time off or you're going to take more unpaid time off, you might want to cut costs or rely on your savings. 4. Purchase life and health insurance You'll want your child to be stable financially if something were to happen to you or your partner. A life insurance policy can assist in paying for things like child care, housekeeping, cooking, and more. Purchasing maternity insurance is the first action you can take to cover maternity costs. When purchasing health insurance, (even for a couple), it is important to confirm that the policy includes coverage for maternity costs and, if applicable, any applicable waiting periods. Additionally, by paying a larger rate, you might add pregnancy coverage to a current insurance policy. Buying health insurance is most important when considering having a child. Get your health covered in your plan so that you are not financially burdened in case of a health emergency. 5. Plan for the child’s education Just like the prices of lemons and oranges are growing, the cost of education is skyrocketing. Saving for your child’s college is a necessity. When it comes to saving money for college, time and compound interest are your best friends. Even while inflation is an unavoidable fact, keep in mind that education inflation is far higher. Utilizing the force of compounding is one approach to combat this, but it will only be effective if you have a long-term strategy in place. You indeed have no idea what career path your child will take, but you still need to put aside a portion of capital that can be utilized when the time comes. Right now, you need to think about the type of education you would like to offer because the practical costs of studying engineering in India vs. the US would be very different. From giving birth to seeing them off to college, watching your child grow and thrive is every parent’s dream! So give those dreams wings by planning ahead and investing for their bright future!  TALK TO AN EXPERT
5 investment plans every parent should have

5 investment plans every parent should have

As parents, we have a profound responsibility to ensure a bright and secure future for our children. While providing love, care, and education are crucial aspects, financial planning plays a pivotal role in setting the stage for their success. Investing wisely is key to securing their future aspirations and safeguarding against unforeseen circumstances. Let's explore five essential investment plans that every parent should consider, ranging from mutual funds and US ETFs to US stocks and insurance. So, we will dive in and discover the strategies that can pave the way for your child's financial well-being. Education Fund: The Power of Mutual Funds One of the most crucial investments you can make as a parent is in your children's education. Start by setting up an education fund that specifically caters to their academic pursuits. Consider tax-efficient options like a 529 plan, which allows you to invest in a variety of mutual funds, ensuring growth potential while enjoying tax benefits. Platforms like EduFund (www.edufund.in) offer valuable guidance and tools to help you plan and manage your child's education fund effectively. investment plans US ETFs: Diversification Made Easy 1. Exchange Traded Funds Exchange-Traded Funds (ETFs) have gained significant popularity in recent years due to their flexibility and global exposure. Just like mutual funds, ETFs represent a basket of securities, including stocks, bonds, commodities, or a combination thereof. However, unlike mutual funds, ETFs are traded on stock exchanges throughout the trading day at market prices. ETFs offer several benefits, including transparency, liquidity, and cost-effectiveness. Parents can buy and sell ETFs at any time during market hours, allowing for more flexibility in managing their investments. Additionally, ETFs disclose their holdings daily, ensuring transparency in the investment portfolio. With generally lower expense ratios compared to mutual funds, ETFs offer a cost-effective investment option for parents. 2. USA Stocks For parents who are comfortable with taking on more active roles in their investment journey, investing in individual stocks can be an exciting avenue. Owning shares of well-established companies can offer substantial returns over time. While investing in individual stocks requires careful research and monitoring, it can provide the potential for higher growth compared to mutual funds or ETFs. EduFund's resources can assist you in understanding stock investing basics and identifying companies with strong fundamentals. To mitigate risk, parents can consider diversifying their stock portfolios across different sectors and industries. This diversification helps reduce the impact of a single stock's performance on the overall portfolio. In addition, parents should adopt a long-term investment mindset and focus on the fundamentals of the companies they invest in rather than short-term market fluctuations. Investment Tips for Dad's in India Read More Insurance - Protecting Your Family's Future Insurance is a pivotal component of any comprehensive financial plan, especially for parents. Life insurance provides financial protection to your family in the event of your untimely demise. It ensures that your children's education, living expenses, and future aspirations are secure, even in your absence. Term life insurance offers coverage for a specified period, providing a higher coverage amount at an affordable premium. Additionally, health insurance safeguards against unexpected medical expenses, offering peace of mind during uncertain times. By securing adequate insurance coverage, parents can safeguard their family's financial well-being and ensure a secure future. Investment Tips for Mom's in India Read More Mutual Funds - Diversify and Grow Your Wealth Mutual funds are an excellent choice for parents seeking diversification in their investment portfolios. These funds pool money from several investors to invest in a variety of asset classes, including stocks, bonds, and money market instruments. Managed by professional fund managers, mutual funds allow parents to benefit from their expertise and experience in making investment decisions. By spreading investments across different sectors and markets, mutual funds help reduce the risk associated with investing in individual stocks. Parents can choose from many types of mutual funds on the basis of their risk appetite and financial goals. For those seeking stability, bond funds can offer a regular income with lower volatility. On the other hand, equity funds offer an opportunity for capital appreciation through investments in stocks. Balanced funds offer a blend of both equity and bond investments, providing a balanced risk-return profile. By investing in mutual funds, parents can access professional investment management and enjoy the benefits of diversification. You can lay a strong foundation for your family's future by incorporating these investment plans into your financial strategy. Remember that investment decisions should align with your risk tolerance, financial goals, and time horizon. It's always suggested as advice to seek guidance from financial advisors who can provide personalized advice based on your specific circumstances. Conclusion  Investing wisely is an integral part of parental responsibility. By incorporating these five investment plans into your financial strategy, you can take proactive steps toward securing your child's future while also protecting your own financial well-being. Remember to conduct thorough research, seek professional advice, and regularly review your investment portfolio to adapt to changing circumstances. By combining long-term vision with disciplined investment practices, you can build a strong financial foundation for your children, allowing them to chase their dreams with confidence. Start planning today and pave the way for a prosperous future for your family. Consult an Expert Advisor
5 reasons why SIP is the best investment choice?

5 reasons why SIP is the best investment choice?

A systematic investment plan or SIP is the best plan that helps you invest in mutual funds on a regular basis.  You can choose to invest weekly, monthly or even quarterly – the most popular choice being monthly. There are multiple reasons why SIPs are the best way to grow your money especially when you have a goal to plan – e.g. your child’s education. SIPs can be bought easily and you can start with a very low amount - Rs. 500 per month. In this blog, we will talk about the ‘Big 5 advantages’ that SIPs offer to you as a parent. But before that, let's understand what a SIP is What is SIP? A SIP or systematic investment plan is an investment mode through which an investor can create a regular mechanism of investment for themselves. Let's take the example of investor X. Investor X wishes to invest Rs. 10,000 every month in a mutual fund. In this case, investor X can create a SIP for a fund they want to invest in and the money will be deducted every month automatically (the deduction can be weekly, monthly, or even quarterly, depending on the investor's choice). Think of it as a recurring deposit, with better returns. Now that we know what a SIP is, let's get to know why investing via SIP is the best choice you can make to enlarge your corpus. CALCULATE MONTHLY SIP 5 Reasons SIP is the best These are the 5 main reasons why you should invest via a systematic investment plan to reach your financial goals 1. Suitable for Long-Term Investment Any financial advisor will tell you that if you want to invest long-term, SIP is the way to go. The reason is simple, regular investing and automatic deductions keep investors motivated to stay invested and reach their investment goals quicker. During the 2008 financial recession, many people withdrew money from mutual funds. However, the ones that remained invested via SIP, attained a huge profit once the markets rose. Long-term investing makes sure that even if the market is down at the moment, once the markets rise, the investor will make profits. 2. Goal-planning ‍SIPs are good tools to plan for a future goal – to buy a 4-wheeler or to pay for college tuition fees maybe 10-15 years from now. When you determine the amount required to achieve your goal, you will know how much you should invest and how long it will take to reach your goal. This will help in planning effectively. Having financial goals is very important to creating a financially secure future. One must have a defined idea about what financial goal one wants to reach by the age of 30, 40, 50, and so on. 3. Effect of Compounding Compounding is one of the biggest advantages of a SIP. Over time your investments grow because you start earning returns not on your principal amount, but on the interest that keeps getting added to it. Let's take an example. Suppose you invest Rs.1,000 in a mutual fund that gives you a yearly return of 10% p.a. Your amount becomes 1,100. at the end of the first year. At the end of the second year, the rate of return is 11%, this time the returns will be calculated on Rs. 1,100 and not the principal amount, which is, Rs. 1,000. ‍This ensures the growth of your corpus and is one of the reasons why experts advise you to not withdraw your investments when the market is down. 4. Curated by Experts With the increasing number of fund types like equity, debt, mixed, gold-based, etc. there is a wide variety to choose from based on your risk appetite and preferred investment duration. This has led to customized offerings based on individual needs, supervised by experts in the SIP domain. All you need is to specify your goal and timeline and you are provided with the best possible funds that can meet your future goals. ‍SIPs have become popular over the past few years, because of the ease of investing and the flexibility provided in terms of the amount of money that can be invested. You can stay invested as long as you want, although average returns have been higher when invested in the long term. Research also shows that the returns offered by SIPs are more than recurring deposits in banks, in the long term. 5. Automates Your Investment Experience SIPs automate your investment experience, which makes you a regular investor. It is easy and convenient and because of the online surge, today, it is super easy to invest via SIP. If you choose the lump sum method, you will have to manually invest an amount and there may be times when you can miss an installment. ‍With automated installments and a streamlined process, investing via SIP has now become an extremely popular method, to reach long-term goals like saving up for your child's education. FAQs Why is SIP investment good? By investing through SIPs, you will do away with the burden of timing the market as you could then avail the benefit of Rupee Cost Averaging. By investing through SIP, you will tend to invest in the up and down markets. This helps you shy away from the volatility of the market. Additionally, you will benefit from the power of compounding, which fundamentally generates returns not only on capital but also on returns. Is SIP good for students? Investing in SIP can be a huge benefit for students. It cultivates a healthy investment habit, and they can invest a small amount to start their journey. SIP is best for beginners and a comparatively safe investment vehicle. What are the features of SIP? A SIP offers the following features: It is best for long-term investment, brings financial discipline, allows small investment amounts, benefits from the power of compounding, and is a comparatively safer investment tool. Why do people prefer SIP? A systematic investment plan helps bring discipline to an individual’s investment habits. A SIP will automatically deduct a pre-decided amount periodically. Investors also do not need to worry about timing the market while investing via SIP. It is one of the best investment vehicles for beginners. Consult an expert advisor to get the right plan TALK TO AN EXPERT
5 tips to know before investing in US stocks

5 tips to know before investing in US stocks

If you want to invest in the US stock market to benefit from US stocks, you may start by opening an international trading account in India. But before investing in US equities, here are the 5 important things to know before investing in US stocks. 1. Regulatory framework One of the oldest, most effective, transparent, and well-regulated stock markets in the world is the one in the United States. On US stock markets are listed some of the largest businesses in terms of market capitalization, sales, and profitability. The worldwide exposure and flavor that US markets offer are crucial since many of these listed firms have a significant global presence, scale, and operational structure. The regulatory body that monitors the operation of the US stock markets is the Securities and Exchange Commission (SEC), which was founded in 1934. It guarantees the strict application of laws and rules that establish the highest standards of openness and integrity—essential for stock markets as well as for the safety and trust of investors. 2. Impact of Foreign Exchange  The volatility in the value of the US and other currencies should be taken into account while investing in US equities. This is because before any gain (or loss) for an Indian investment is realized, it would be converted using the appropriate exchange rate in the Indian rupee. The gains (or losses) will fluctuate in lockstep with changes in the exchange rate. An Indian investor must be aware that the exchange rate can be unpredictable and is influenced by a wide range of political, economic, and supply and demand variables. 3. Liberalized Remittance Scheme According to the Reserve Bank of India's Liberalized Remittance Scheme, an individual may invest up to $ 250000 per year in US equities from India (LRS). The cap covers any money sent abroad for purchases, travel, education, or other international transactions during the year. The investor's brokerage account has to be filled before making any investments in US equities. Investors must complete Form A-2, which is available from RBI-authorized dealers. Any sum over the $250000 cap requires RBI approval. Additional read: US stocks for investing in child education 4. Taxation To make your efforts worthwhile, it is crucial to take into account the tax consequences of your international assets. Due to the Double Tax Avoidance Agreement (DTAA) between the US and India, the same income cannot be taxed twice on investments made in the US stock market. 5. Dividend tax The dividends from US stocks are taxed at a fixed rate of 30% for overseas investors. However, as a result of the tax agreement between the US and India, citizens of India pay a 25% tax rate (deducted before distribution). However, because of the double tax avoidance agreement between the US and India, the tax paid in the US may be claimed as a foreign tax credit in your domestic filing. 6. Capital gains tax Your assets in the US are not subject to capital gains tax. However, India requires you to pay tax on your overseas capital gains. This may be divided into two groups.: Long-term capital gain (LTCG)If you keep the equities for more than 24 months before realizing capital gains, you will be subject to indexation advantages and a 20% tax rate in addition to any relevant fees and other surcharges. Short-term capital gain (STCG)Standard income-tax regulations apply to any gains from assets held for less than 24 months, and they are added to your ordinary taxable income. You must also take into account the recently implemented Tax Credited at Source or TCS. Under the new regulations, a 5% TCS will be applied to all international transfers over INR 7 Lakhs in a fiscal year. It is not an additional expenditure to deduct this advance tax when submitting your taxes each year. Charges on US stock-broking account  Using an Indian stock brokerage account to invest in the US stock market is prohibited. You would need to create one with a US stock brokerage company instead. To provide this service, the majority of Indian stock brokers who allow you to invest in US equities typically collaborate with a US stockbroker. You would also be required to pay certain fees for a US stock broking account, just like you would for an Indian trading account. This is something you should also take into consideration when you buy US stocks because these fees can reduce your earnings. These fees include Annual Maintenance Costs, brokerage charges, bank charges, transaction charges, and more. Invest in the US stocks with EduFund  Download the EduFund app and create an account to start investing in US stocks. With zero charges and no hassle account opening process from the comfort of your home, you can start investing in FAANG stocks in your portfolio to geographically diversify your portfolio!! Thus, investing in US firms and equities may give investors access to the worldwide market, credibility, and an opportunity to increase their wealth. Consult an expert advisor to get the right plan TALK TO AN EXPERT
5 top investments for risk-averse investors

5 top investments for risk-averse investors

All investments are associated with risks. Yet, the risk is not uniform, and it's essential to be aware of the different levels of risks linked with all types of investment instruments. This is why the first thing to consider before investing is how much of a risk appetite has – how much risk one is willing to take. Want to know the best investment options for risk-averse investors but still generate good returns? Continue reading this article to know more! What is risk averse? Risk-averse refers to an investor who chooses to preserve the capital over and above its potential to generate returns that are higher than the average. Risk can refer to many factors – volatility, currency, market, credit rating, etc. Risk-averse can also refer to a conservative investor. Low risk symbolizes stability in investments. A low-risk investment generates guaranteed reasonable returns, if not outstanding, above benchmark returns. But chances are near zero that the principal investment amount will be lost. Whereas a high-risk investment option may gain or lose money over time. Risk-averse investors are unwilling to accept market volatility. They prefer their investments to be highly liquid - readily available to be withdrawn. Such investors usually include old investors or retired individuals who depend on their savings for their daily expenses. Start Investing in Mutual Funds Is FD a good option for risk-averse investors? One should constantly adjust their returns against the current inflation rate. The current Fixed Deposit interest rates are 5-7% p.a. on average. But the current inflation rates are around 6-8% p.a. Give these figures a thought. The price you pay for your everyday goods and services is rising at 6-8%, whereas your FD investments are growing at only 5-7%. FDs do not increase the value of your money over time. In fact, you actually lose money or its purchasing power over time. Do you think FDs are the safest investment option? Banks defaulting on payments is rare but definitely possible. The Deposit Insurance and Credit Guarantee Corporation (DICGC) guarantees Rs. 5 lakhs per person per bank if the bank defaults. Let's not forget the liquidity part of this instrument. Fixed deposits can have a lock-in ranging from 3-5 years. Banks penalize the investors for withdrawing money before the lock-in is over. This penalty is in the form of a reduction of interest rate by a certain percentage. Download App and Start Saving for Child Education What are the best investment options for risk-averse investors? The market is filled with many investment options for investors with varying risk appetites. Let's look at some of the best investment options for risk-averse investors: 1. Short-term bond fund The best alternative for investors who do not want exposure to FDs or volatile instruments. Short-term bond funds – bond funds with low maturity and a high potential to offer better returns. Debt Funds with longer maturity are subjected to interest rate risk. But short-term bonds have a lower interest rate risk as their maturity period is much lower. 2. Municipal and Corporate Bonds State and local governments and companies usually raise money by issuing bonds to the public. Bonds offer lower risk than stocks. When a company is winding up, the bondholders are given first preference in the payment and settlement order. 3. Other debt funds Other debt funds include banking and PSU Funds, ultra-short duration funds, Dynamic Bonds, etc. You could always invest a lump sum in these debt-based mutual funds and opt for a Systematic Withdrawal Plan (SWP). This would ensure that along with the returns being generated on your investments, you would also get a monthly income from these investments. This investment option is one of the best options for older people who want a monthly income. 4. Liquid funds Invest in top-rated liquid funds to avoid loss of capital with a higher degree of safety for your primary investment. Also, when the market moves up, your investment performs better and generates higher returns in line with the market. 5. Dividend growth stocks Stocks are not as safe as cash, savings, or other debt-based instruments. But they are safer than options and futures. Dividend-paying stocks are considered safer than high-growth ones as they minimize volatility, if not eliminate it. You don't depend on the value of the stock as you get a dividend as a regular income on your investment. Apart from debt-based investments, you could also apply a staggered investment approach in equity-based mutual funds for a long-time horizon. A periodically rebalanced portfolio helps you minimize your portfolio volatility and ensures efficient capture of up-market and down-market movements even with equity exposure.  Take the help of an Investment Advisor who will guide you through goal-based planning and help you choose the investments that are most suitable to your goals and objectives and your risk appetite. FAQsWhat type of investments do risk-averse investors prefer?  Risk-averse investors typically prefer conservative investments with lower volatility and more predictable returns. These may include government bonds, high-quality corporate bonds, certificates of deposit (CDs), and stable dividend-paying stocks. These options aim to preserve capital while providing modest growth, aligning with the risk tolerance of such investors.   What are 3 high-risk investments?  Three high-risk investments include investing in individual stocks of volatile and speculative companies, trading in cryptocurrencies known for their price volatility, and investing in startups or early-stage ventures that have higher failure rates. These investments offer the potential for significant returns but also carry a substantial risk of loss.   Which investment is the riskiest for investors?  Investing in highly speculative and unproven assets like cryptocurrencies, especially in lesser-known or new coins, can be among the riskiest options for investors. The volatile nature of these assets can lead to substantial financial losses due to sudden price fluctuations and lack of regulation.   Which investment has the highest return without risk?  No investment offers guaranteed high returns without any risk. Investments with potentially higher returns often come with varying degrees of risk. While some low-risk options like government bonds or savings accounts provide stability, they usually offer lower returns. Diversification and a clear understanding of risk are important for any investment strategy.  TALK TO AN EXPERT
5 types of mutual funds

5 types of mutual funds

Investing in mutual funds for your child’s education is always advisable. First of all, it is a less stressful option than investing in direct equity stocks because that requires you to have in-depth knowledge of market trends and fluctuations. Secondly, with mutual funds, there are a variety of schemes you can opt for depending on a range of factors. These factors could include the time period for which you can invest before liquidating, the amount of money you can invest, the amount you require to secure the education fund, the level of risk you can take, and so on.  When it comes to building an education fund, here are the top 5 types of mutual funds you can choose from. 1. Large-cap mutual funds The defining characteristic of large-cap equity funds is the fact that these funds invest in the top 100 Indian companies that have the highest market value. Large-cap mutual funds can bring in impressive returns if you remain invested for a long period. If you are a person who wants to avoid taking very high risks with your investments and has decided to invest early for your child’s education, this is the way to go. The average returns rate has historically beaten that of Fixed Deposits and similar investment alternatives. SIP Mutual Fund Investment Read More 2. Mid-cap mutual funds Mid-cap funds invest in Indian companies that come in the next best 250 in terms of market value. These funds are for you if you are ready to take on a higher level of risk. Justifiably, the return rates also tend to get higher. One way to satiate the risk appetite of mid-cap equity funds is to let them season for at least 7-10 years. If your child is in primary or middle school, investing in such a scheme will generate a wholesome amount of wealth by the time they are ready to pursue a college education.   How to track Mutual Funds? Read More 3. Equity-linked saving schemes  Among the various perks of investing in mutual funds is the tax deduction benefit. Equity Linked Saving Schemes are devoted to enabling investors to save taxes, as the name also indicates.  The only catch here is that it has a compulsory lock-in period of at least 3 years. The aim here is to keep you invested longer to counter the risk level. If you can spare that amount of time, then ELSS is definitely a go-to. An added benefit is the historically high level of returns.   Mutual Funds to invest in Child Education Read More 4. Low-risk options  There is this whole myth surrounding mutual funds that they only come with a high-risk factor. On the contrary, a debt fund is also a kind of mutual fund that comes with low risk, so much so that it remains undisturbed by market fluctuations.  Debt funds are still a better option than Fixed Deposits because they can generate a higher percentage of returns. So, if you are not in favor of taking high risks, debt funds are a go-to.  5. Hybrid mutual funds  If you are confused about your investment options or even hesitant about risking too much, the answer to your problems is a hybrid mutual fund. This kind of fund is a mixture of equity as well as debt.  Hybrid mutual funds bring in the best of both worlds. They tend to generate good returns at low risk. FAQs What are the different types of mutual funds? Large-cap mutual funds Mid-cap mutual funds Equity-linked saving schemes Low-risk options Hybrid mutual funds Which type of MF is best? The best type of mutual fund is the Hybrid mutual fund. Which MF gives the highest return? Equity-linked mutual funds are considered the mutual funds with the highest returns. Conclusion There will be miscellaneous financial goals you will be required to set if you are a family person. One among these might be to straighten up the roadmap to your child’s academic and career aspirations. The first step is calculating your expected expenses with the help of an education cost calculator. The calculator will help you draw your investment map to fulfill your child's aspirations. The earlier you invest, the more prepared you will be to make critical decisions as the moment arrives. DisclaimerMutual funds are subject to market risks. The previous performance of a fund is no guarantee of future success. Please reach out to an expert to know more about the schemes before investing.