June 19, 2021

BOI AXA Mutual Fund: NAV, Performance & Latest MF Schemes

BOI AXA Mutual Fund

BOI AXA Investment Managers Private Limited is a joint venture between Bank of India and AXA Investment Managers, a part of AXA Group, one of the world’s largest players in the Financial Protection industry.

Bank of India was founded on 7th September 1906 by a group of eminent businessmen from Mumbai. The Bank was under private ownership and control till July 1969 before being nationalized along with 13 other leading banks in India.

Bank of India has over 5,000 branches across India. Presently Bank of India has an overseas presence in 22 countries spread over 5 continents with 60 offices, including 5 Subsidiaries, 5 Representative Offices, and 1 Joint Venture.

AXA Investment Managers (AXA IM) is one of the world’s leading asset managers, backed by the strength of the AXA Group with assets under management (AUM) of EUR 830 billion as of 30/09/2020.

AXA IM employs over 2,389 employees that operate across 20 countries in Europe, the Americas, Asia, and the Middle East (as of 30/09/2020). 

On May 7, 2012, the Bank of India (BOI) acquired a 51% stake in the then Bharti AXA Investment Managers Private Limited (BAIM) and Bharti AXA Trustee Services Private Limited (BATS).

Consequent to this change in JV Partnership, BOI became a Co-Sponsor along with the existing Sponsor, AXA Investment Managers (AXA IM), and the Fund was renamed as BOI AXA Mutual Fund, and BAIM was renamed as BOI AXA Investment Managers Private Limited, and BATS was renamed as BOI AXA Trustee Services Private Limited. 

The partnership brings together the Bank of India’s massive network and experience in the Indian market and AXA’s global expertise in financial management.

At AXA Investment Managers (AXA IM), they define their purpose as being to act for human progress by investing in what matters, which is central to every action they take as a business.

As responsible investors, businesses and employers, seek to actively invest for the long term so that their clients, their people, and their communities can move forward.

The combination of responsible, active, and long-term defines their investment philosophy, but also how they run their business, what underpins their clients’ partnerships with them, and what drives their people. The fund house claims that its ambition is to be the world’s leading responsible investor.

After seeing the signs that the global economy is starting to move to a more sustainable and equitable model over the next decade, they want to take an active role in powering that transition.

As committed, active investors are led by their conviction. With fundamental research at the core of their process, their global team seeks out and develops one of the most efficient and robust sources of performance across equities, fixed income, multi-asset, and alternative strategies.

With conviction, they advance and best serve the interests of their clients.

Their heritage within AXA Group, a recognized innovator, has hard-wired their business for continual improvement. They recognize that their most demanding and challenging clientele helps them to achieve excellence. Their relationship with their parent company also means protection and stability are part of their heritage.

With the investment landscape becoming increasingly challenging, they believe that fresh thinking is needed to manage it. They say that technology is rapidly advancing, and people are living longer than ever before, shifting global demographics significantly.

Their team aims to generate absolute returns through a diversified set of investment strategies that are grounded in behavioral finance – offering clients a differentiated proposition with a low correlation to traditional assets. 

BOI remains one of the foremost financial institutions across the world, too. It has a decent presence across the pre-eminent financial capitals of the world, including Berlin, Paris, Tokyo, and London. 

BOI AXA has an AUM of INR 2349.96 Cr (31 December 2020), an increase of INR279.80 Cr from September 2020. They offer 16 funds under different categories.

Important information about BOI AXA Mutual Fund

Name of the AMCBOI AXA Investment Managers Private Limited
Incorporation Date31 March 2008
SponsorsBank Of India and AXA Investment Managers, Asia Holdings Private Limited.
TrusteeBOI AXA Trustee Services Private Limited.
Trustees’ NameMr. Ashok K Pathak- Associate Director Mr. A K Bhargava- Independent Director Mr. Himanshu Joshi- Independent Director  
MD/CEOMr. Sandeep Dasgupta
CIOMr. Alok Singh
Compliance OfficerMr. Harish Kumar
Registrar and Transfer agentKFIN Technologies Private Limited Shop No 21, Osia Mall, First Floor, Near KTC Bus Stand SGDPA Market Complex, Margao-403601 Phone: 0832-2731823, Email:  mfsmargoa@Kfintech.com.
Toll-free Number (Toll-Free) 1800 – 266 – 2676 / 1800 – 103 – 2263
Email Addressservice@boiaxa-im.com
Registered AddressBOI AXA Investment Managers Private Limited, B/204, Tower 1, Peninsula Corporate Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400013. Website:www.boiaxamf.com

Ten top-performing BOI AXA Mutual Fund Schemes

  1. BOI AXA Tax Advantage Fund (Category- Equity: ELSS)
  2. BOI AXA Manufacturing and Infrastructure Fund (Category – Equity: Sectoral)
  3. BOI AXA Ultra Short Duration Fund (Category – Debt: Ultrashort Bond)
  4. BOI AXA Liquid Fund (Category – Debt: Liquid)
  5. BOI AXA Small Cap Fund (Category – Equity: Small Cap)
  6. BOI AXA Large & Mid Cap Equity Fund (Category – Equity: Large and Mid Cap)
  7. BOI AXA Mid & Small Cap Equity & Debt Fund (Category – Hybrid: Aggressive)
  8. BOI AXA Conservative Hybrid Fund (Category – Hybrid: Conservative)
  9. BOI AXA Equity Debt Rebalancer Fund (Category – Debt: Dynamic Asset Allocation)
  10. BOI AXA Short-Term Income Fund (Category – Debt: Short Term)

1. BOI AXA Tax Advantage Fund (Category- Equity: ELSS)

This fund is suitable for investors who are looking to invest money for at least 3 years and looking for additional benefits of income tax saving apart from higher returns expectations.

The scheme seeks to generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities across all market capitalizations. This scheme is suitable for long-term capital growth.

Key information

Minimum InvestmentINR 500  
Minimum Additional Investment INR 500
Minimum SIP InvestmentINR 500
Entry LoadNil 
Exit Load1% for redemption within 365 days
If redeemed after 1 year (365 days) from the date of allotment: NIL
Return Since Inception
13.1% ( Regular-Growth) (Date of Inception: February 25, 2009) 18.54% ( Direct-Growth) (Date of Inception: February 25, 2009)



NAVINR 79.13 (April 23, 2021) (Regular Growth) INR 88 (April 23, 2021)  (Direct-Growth)


AUMINR 417 Cr (As on March 31, 2021)

2. BOI AXA Manufacturing and Infrastructure Fund (Category – Equity: Sectoral) 

This is an open-ended equity sectoral scheme investing solely in companies belonging to manufacturing and infrastructure-related sectors.

This is suitable for the more experienced equity investor who wants to take specific exposure to these specific sectors. Investors who have advanced knowledge of macro trends and prefer to bet for higher returns compared to other Equity funds often choose this fund.

Key information

Minimum InvestmentINR 500  
Minimum Additional Investment INR 500
Minimum SIP InvestmentINR 500
Entry LoadNil 
Exit LoadFor redemption/switch out up to 10% of the initial units allotted -within 1 year from the date of allotment: “NIL”
Return Since Inception
7.3% ( Regular-Growth) (Date of Inception: March 5, 2010) 13.24% ( Direct-Growth) (Date of Inception: March 5, 2010)



NAVINR 21.76 (April 23, 2021) (Regular Growth) INR 24.05 (April 23, 2021)  (Direct-Growth)


AUMINR 46 Cr (As on March 31, 2021)

3. BOI AXA Ultra Short Duration Fund

This scheme seeks to deliver reasonable market-related returns with lower risk and higher liquidity through a portfolio of debt and money market instruments.

Investors who want to invest for the very short term and are looking for an alternative to bank accounts/deposits find this scheme suitable for them.

Key information

Minimum InvestmentINR 5000  
Minimum Additional Investment INR 1000
Minimum SIP InvestmentINR 5000
Entry LoadNil 
Exit LoadNil
Return Since Inception
8.2% ( Regular-Growth) (Date of Inception: July 16, 2008) 8.09% ( Direct-Growth) (Date of Inception: July 16, 2008)



NAVINR 2526.5327 (April 23, 2021) (Regular Growth) INR 2575.26 (April 23, 2021)  (Direct-Growth)


AUMINR 294  Cr (As on March 31, 2021)

4. BOI AXA Liquid Fund (Category – Debt: Liquid)

The scheme seeks to deliver reasonable market-related returns with lower risk and higher liquidity through a portfolio of debt and money market instruments.

Investors who want to invest for the very short term and are looking for an alternative to bank accounts/deposits find this scheme suitable for them.

Key information

Minimum InvestmentINR 1000  
Minimum Additional Investment INR 1000
Minimum SIP InvestmentINR 1000
Entry LoadNil 
Exit LoadNil
Return Since Inception
7.3% ( Regular-Growth) (Date of Inception: July 16, 2008)


NAVINR 2353.5975 (April 23, 2021) (Regular Growth) INR 2372.0066 (April 23, 2021)  (Direct-Growth)


AUMINR 235   Cr (As on March 31, 2021)

5. BOI AXA Small Cap Fund (Category – Equity: Small Cap):

The investment objective of the scheme is to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of small-cap companies.

This scheme is suitable for investors who are looking to invest money for at least 3-4 years and looking for very high returns

Key information

Minimum InvestmentINR 5000  
Minimum Additional Investment INR 1000
Minimum SIP InvestmentINR 5000
Entry LoadNil 
Exit LoadNil
Return Since Inception
33% ( Regular-Growth) (Date of Inception: December 19, 2018) 34.9% ( Direct-Growth) (Date of Inception: December 19, 2018)



NAVINR 18.71 (April 23, 2021) (Regular Growth) INR 19.54 (April 23, 2021)  (Direct-Growth)


AUMINR 119   Cr (As on March 31, 2021)

6. BOI AXA Large & Mid Cap Equity Fund (Category – Equity: Large and Mid Cap)

The scheme seeks to generate income and long-term capital appreciation by investing through a diversified portfolio of predominantly large-cap and mid-cap equity and equity-related securities including equity derivatives.

Investors who are looking to invest money for at least 3-4 years and looking for high returns often find this scheme suitable for them.

Key information

Minimum InvestmentINR 5000  
Minimum Additional Investment INR 1000
Minimum SIP InvestmentINR 1000
Entry LoadNil 
Exit LoadFor redemption/switch out up to 10% of the initial units allotted -within 1 year from the date of allotment: “NIL”
Return Since Inception
12.47% (Regular-Growth) (Date of Inception: October 21, 2008)  
NAVINR 43.5 (April 23, 2021) (Regular Growth) INR 47.8 (April 23, 2021)  (Direct Growth)


AUMINR 181.18   Cr (As on March 31, 2021)

7. BOI AXA Mid & Small Cap Equity & Debt Fund (Category – Hybrid: Aggressive)

The scheme’s objective is to provide capital appreciation and income distribution to investors from a portfolio constituting mid and small-cap equity and equity-related securities as well as fixed-income securities.

This is suitable for investors who want to invest for 5 years or more. The returns may be slightly lower than those of pure equity funds and they do not fall sharply when the market changes.

This makes the scheme suitable for conservative equity investors or first-time equity investors who are not used to sharp ups and downs.

Key information

Minimum InvestmentINR 5000  
Minimum Additional Investment INR 1000
Minimum SIP InvestmentINR 1000
Entry LoadNil 
Exit LoadFor redemption/switch out up to 10% of the initial units allotted -within 1 year from the date of allotment: “NIL”
Return Since Inception
12.53% (Regular-Growth) (Date of Inception: July 20, 2016) 13-51% ( Direct-Growth) (Date of Inception: July 20, 2016)



NAVINR 17.54 (April 23, 2021) (Regular Growth) INR 18.28 (April 23, 2021)  (Direct-Growth)


AUMINR 303 Cr (As on March 31, 2021)

8. BOI AXA Conservative Hybrid Fund (Category – Hybrid: Conservative)

The scheme seeks to generate regular income through investments in fixed-income securities and also to generate long-term capital appreciation by investing a portion in equity and equity-related instruments.

Conservative hybrid funds invest nearly a quarter of your money in equity shares and the rest in bonds. These funds are suitable for those who are not comfortable with too much volatility in the value of their investments and are content with moderate returns which are slightly higher than returns from fixed-income options. This scheme is suitable for those looking for a regular income from their asset accumulation.

Key information

Minimum InvestmentINR 10000  
Minimum Additional Investment INR 1000
Minimum SIP InvestmentINR 1000
Entry LoadNil 
Exit LoadFor redemption/switch out of upto10% of the initial units allotted within 1 year from the date of allotment: Nil
Return Since Inception
6.46% (Regular-Growth) (Date of Inception: March 18, 2009) 6.71% ( Direct-Growth) (Date of Inception: March 18, 2009)



NAVINR 21.3439 (April 23, 2021) (Regular Growth) INR 22.2377 (April 23, 2021)  (Direct-Growth)


AUMINR 59 Cr (As on March 31, 2021)

9. BOI AXA Equity Debt Rebalancer Fund (Category – Debt: Dynamic Asset Allocation)

The scheme aims at generating long-term returns with lower volatility by following a disciplined allocation between equity and debt securities. The equity allocation will be determined based on the month-end P/E ratio of the Nifty 50 Index.

This type of fund invests your money in equity shares and bonds though their proportions are not fixed. These funds tend to fall less than pure equity funds when the stock markets decline because of their debt allocation.

This makes them suitable for conservative equity investors. But do not choose this fund if you are not in a position to invest for at least 5 years.

Key information

Minimum InvestmentINR 5000  
Minimum Additional Investment INR 1000
Minimum SIP InvestmentINR 1000
Entry LoadNil 
Exit LoadFor redemption/switch out of upto10% of the initial units allotted within 1 year from the date of allotment: Nil
Return Since Inception

6.44%% (Regular-Growth) (Date of Inception: March 14, 2014) 7.02% ( Direct-Growth) (Date of Inception: March 14, 2014)



NAVINR 15.5881 (April 23, 2021) (Regular Growth) INR 16.2051 (April 23, 2021)  (Direct-Growth)


AUMINR 71 Cr (As on March 31, 2021)

10. BOI AXA Short-Term Income Fund (Category – Debt: Short Term)

The scheme seeks to generate income and capital appreciation by investing in a diversified portfolio of debt and money market securities.

This fund is suitable for investors who want to invest for 1-3 years and are looking for an alternative to bank deposits. 

Key information

Minimum InvestmentINR 5000  
Minimum Additional Investment INR 1000
Minimum SIP InvestmentINR 1000
Entry LoadNil 
Exit LoadNil
Return Since Inception4.48%  (Regular-Growth) (Date of Inception: December 18, 2008) 4.67% ( Direct-Growth) (Date of Inception: December 18, 2008)



NAVINR 17.1766 (April 23, 2021) (Regular Growth) INR 18.3323 (April 23, 2021)  (Direct-Growth)


AUMINR 26 Cr (As on March 31, 2021)

How can you invest in BOI AXA Mutual Fund Via EduFund?

Step 1 – Download the EduFund App from Google Play Store or Apple App Store and create an online account.

Step 2 – Select a Scheme – Browse a wide range of BOI AXA Mutual Fund schemes and choose the right scheme suiting your financial goals. You may invest in a Systematic Investment Plan (SIP) or a lump sum. The inbuilt recommendation engine suggests the best scheme for your financial objectives.

Step 3 – View and Track Your Transaction(s) – The amount you have invested will reflect in your EduFund account within four working days. You can track the BOI AXA Mutual Fund NAV, account balance, statement, and other information in the app. Alternatively, you can purchase, redeem, or switch BOI AXA Mutual Fund units.

Step 4 – Speak with a Mutual Fund Counsellor – You can connect with a mutual fund consultant to share your goals and get personalized advice. 

EduFund uses top-class authentication and encryption technologies to ensure bank-like secured transactions and safeguard your investments.  

Fund managers at BOI AXA Mutual Fund 

It is the fund managers who play a prominent role in driving value and generating growth. The following are the four best-performing fund managers in BOI AXA Mutual Fund whose funds have consistently performed the best returns. 

1. Mr. Alok Singh – Chief Investment Officer

Mr. Singh is a CFA and PGDBA from ICFAI Business School. Before joining BOI AXA AMC, he worked with BNP Paribas Asset Management and Axis Bank. He has an AUM of INR 745Cr and handles 28 schemes.

2. Mr. Ajay Khandelwal – Fund Manager – Equity

Mr. Khandelwal is an MBA & Bachelor of Engineering. Before joining BOI AXA Mutual Fund, he worked with B&K Securities & Infosys. He has an AUM of INR585 Cr and handles 16 schemes.

3. Mr. Akash Manghani – Fund Manager – Equity

Mr. Manghani has a Bachelor’s in Engineering. Before joining BOI AXA Mutual Fund, he worked with Pioneer Investcorp Ltd., Girik Capital, and Amdocs Ltd. His AUM is INR 495Cr and handles 2 schemes. 

4. Mr. Amit Modani – Fund Manager – Fixed income

Mr. Modani is a Chartered Accountant. Before joining BOI AXA Mutual Fund, he worked with Quantum Asset Management Company Private Limited and Pramerica Asset Managers Pvt. Ltd. His AUM is INR805Cr and handles 18 schemes.

BOI AXA Mutual Fund

Why should you invest in BOI AXA Mutual Fund? 

The BOI AXA Mutual Fund is one of India’s largest mutual fund houses. Although smaller in Assets under Management or AUM, BOI AXA Mutual Fund has grown from strength to strength over the past few years.   

The BOI AXA Mutual Fund is known for its wide range of packages and superior returns. Their investment capabilities are designed to offer the greatest flexibility to their clients for both core and specialist asset classes. 

In Equity, they have more than four decades of active investment experience, underpinned by fundamental research and a long-term approach, designed to capture future trends.

Backed by fully integrated risk controls, they offer a broad suite of solutions designed to meet a wide range of client outcomes. With more than four decades of active equity investment experience, their experts employ a bottom-up investment approach to help clients successfully navigate the changing investment landscape and capture the growth drivers of tomorrow. 

Equity funds are sometimes also called stock funds. The primary objective of these funds is to facilitate capital appreciation by investing a major portion of the funds in stocks, while a smaller portion may be in bonds, notes, and other debt-related securities.

An Equity fund can be an open-ended or a closed-ended fund that allows the investor to invest a small amount of money in a diversified portfolio. Experienced fund managers often do this to minimize the risk associated with investing in equity markets. 

BOI AXA Mutual Fund offers BOI AXA Large & Mid Cap Equity Fund, BOI AXA Tax Advantage Fund, BOI AXA Manufacturing & Infrastructure Fund, BOI AXA Small Cap Fund, and BOI AXA Flexi Cap Fund in the Equity category. 

Hybrid Funds of BOI AXA Mutual Funds seek to balance the risk and high capital appreciation of equity investments with the lower risk and more consistent returns provided by debt investments. Under the Hybrid category, they offer BOI AXA Conservative Hybrid Fund, BOI AXA Equity Debt Balancer Fund, BOI AXA Mid & Small Cap Equity & Debt Fund, and BOI AXA Arbitrage Fund.  

Debt funds are usually preferred by risk-averse individuals who seek to generate returns at rates that are higher than those offered by investment options such as fixed deposits.

BOI AXA mutual funds offer BOI AXA Liquid Fund, BOI AXA Ultra Short Duration Fund, BOI AXA Short Term Income Fund, BOI AXA Credit Risk Fund and BOI AXA Overnight Fund in the debt category. 

To identify investment opportunities, their quantitative investing pioneers use technology and modeling to deliver fundamental strategies underpinned by environmental, social, and governance (ESG) principles. 

Through bottom-up credit analysis and top-down macroeconomic research, their specialists aim to deliver outcome-oriented solutions for their clients via a suite of products that span the fixed-income spectrum.  

Their well-established team targets stable, predictable income arising from a diversified risk exposure that complements traditional allocations. They draw on their size and experience to source opportunities across the alternative credit spectrum, adapted to the specific needs of their clients. 

Their diverse team of investment professionals and researchers share a common goal – to responsibly design the best combination of asset classes and investment management techniques according to clients’ needs. They combine in-depth, in-country knowledge with longstanding experience, strong convictions, and a thorough understanding of capital structures. 

100 % of core managers have access to ESG (Environmental, Social, and Governance) scores and research, which enable them to integrate their ESG fundamentals and apply these non-financial factors as part of their analysis process to identify material risks and growth opportunities.

Investing and redeeming BOI AXA Mutual Fund is a very easy and hassle-free task. The portfolio maintained by the BOI AXA Mutual Funds is always maintained by averaging the risk and the return, and investors can expect a good rate of return while featuring a balanced risk.

An investor can also choose Systematic Investment Planning by which he can save some part of his monthly income in mutual funds, and in the long term, can make more money for his future goals. 

BOI AXA Mutual Funds believes in complete transparency and publishes regular reports regarding the status of its various investments, and an investor can view this portfolio at any time.

Select EduFund for investing in BOI AXA Mutual Fund 

EduFund makes the process of investing in BOI AXA Mutual Fund convenient. 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 screens 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 a finance expert 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. 

FAQ

What is the full form of BOI AXA?  

BOI AXA Investment Managers Private Limited is a joint venture between Bank of India and AXA Investment Managers, a part of AXA Group, one of the world’s largest players in the Financial Protection industry.  

Who is the registrar of BOI AXA mutual fund?  

KFIN Technologies Private Limited Shop No 21, Osia Mall, First Floor, Near KTC Bus Stand SGDPA Market Complex, Margao-403601 Phone: 0832-2731823, Email: mfsmargoa@Kfintech.com.  

What is the BOI AXA tax advantage fund?  

This fund is suitable for investors who are looking to invest money for at least 3 years and looking for additional benefits of income tax saving apart from higher returns expectations.  

Can I withdraw from ELSS after 1 year?  

Equity Linked Savings Schemes, also known as ELSS, are mutual fund investment plans that enable income tax reduction.

They are also referred to be tax-saving funds for this reason. They all have mandatory lock-in periods, although theirs is the shortest at only three years.

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    4 W’s of Balanced Advantage Funds

    4 W’s of Balanced Advantage Funds

    What is 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 towards the debt market. Likewise, if the equity market trades at a discount, then the fund manager can tilt/shift the portfolio towards 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 and 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 all season fund. Consult an expert advisor to get the right plan TALK TO AN EXPERT
    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 their 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. 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. Additional read: Money management tips for homemakers 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 pay 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 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!  Consult an expert advisor to get the right plan TALK TO AN EXPERT
    5 Pro tips on creating your child's education fund

    5 Pro tips on creating your child's education fund

    Everyone speaks about the rewards of preparing early for education funds and securing them as soon as possible. What they forget to explain is how to reach that goal. Fear not, for we have prepared a list of things you might want to tick off if you want to secure your child’s education.  1. Choosing the right platform is important There are a number of investment platforms available for investors. As an investor with a goal in mind (the education fund for your child), it is important to choose a platform that is built for that purpose or has certain advantages in the pursuit of your goal. There are two great advantages of choosing a goal-specific platform - one, you separate your investments in a way that you know how much amount is set aside for that particular goal every month, and second, you get the added goal-related benefits that the platform could offer. In the case of EduFund, a platform built for parents to save for their children's education fund, you have added advantages like readily available education loans if you fall short, or free counseling if your child needs it. 2. Investing in the right mutual funds  Once you decide to invest in mutual funds to achieve higher returns than Fixed Deposits, you also need to do your research to find which investment schemes are best suited for you. Many factors play crucial roles in this procedure. For example, one of the first things you need to consider is the balance between your monetary goals and the level to which these will be fulfilled by the fund returns and the risk associated.  Time is another important factor that will shape your decision in this matter. You also need to consider what exactly you want out of your investment whether it is tax reductions or high returns with high risks or more stabilized returns with low risks. To indulge in smart investments, stay aware of the best investment schemes currently trending in the stock market. 3. Investing in international stocks Parents who like to stay alert about the current trends related to the education system and finances must be well aware of the phenomenon called education inflation. This is what makes a global education exponentially more expensive than one attained within India.  The value of the Indian Rupee has depreciated over the years against foreign currencies like the American dollar. This means that the cost of a course pursued in a foreign land like the US or the UK will be tenfold compared to the same course pursued in this country. The cost of living will be equally high overseas. A smart way to deal with this problem is to invest in international equity funds. This means higher returns because if you invest in US stocks, you will be earning in dollars, not rupees. Moreover, if your investments in Indian stocks get affected by market fluctuations, you can still depend upon your foreign stock investments which will remain relatively more stable.  4. Consider the availability of education loans  Sometimes your life savings and your investment returns are not enough to fund your child’s education. Do not worry. Education loans can take care of your child’s aspirations in such situations. Even if you are in a position to be able to afford your kid’s dream college, student loans are still a healthy way to teach your kid the value of money and how to build credit.   Creditworthiness is a virtue that will financially discipline your child so that they can take monetary decisions in your absence. It will also ensure that they can take future loans as part of their education fund at low-interest rates. Only loans exceeding a very high amount of money require collateral or a security deposit, which means you can easily avail of student loans.  5. The right guidance for your children Career and academic counseling sessions are crucial for your kid if they are going through a transition phase in their lives. As their primary caregiver, you are entitled to guide their way but sometimes what might be required is professional help. You are longer required to pay for these counseling sessions. A platform like EduFund offers them the best education counseling services in India for free of cost. Let nothing stop your child from achieving their goals.  6. Expert advice to get you to your goal EduFund believes in helping you attain as much clarity on financial affairs as possible. In case of expert advice on investment, you can rely on the world-class experts from EduFund. The Edufund app provides you with all the useful tools to attain the best from your child’s education fund.  For example, it comes with a calculator that helps you calculate the education cost. This is a smart calculator developed to give you inflation-adjusted rates. This is the first step toward getting an idea of how much you will need to invest or save up as an education fund.  FAQs How do I plan my child education fund? Starting early is key to building your child's education fund. You can start saving with mutual funds, PPF, US stocks, Indian stocks, fixed deposit and much more. Before starting it is important to consult a financial advisor and figure out the cost of education before starting an SIP. Which fund is best for child education? Here are some of the best funds for your child's education fund: Axis Long-Term Equity FundSBI Equity Hybrid FundParag Parikh Flexi Cap FundAditya Birla Sun Life Tax Relief 96 Fund Growth Aditya Birla Sun Life Tax Plan-GrowthDSP BlackRock Tax Saver Fund Growth Axis Long-Term Equity Fund Growth How do you build a corpus for child education? The first step to building a corpus for child education fund is to figure out the cost using the College Cost Calculator. Knowing the financial goal you need to invest in before starting an SIP helps you remain focused and know the exact amount you need to save monthly to get started. Conclusion What seems like a mammoth task can be easily managed by diving it into smaller tasks and simplifying it. Each small step is quite crucial in itself. But once you have the checklist ready, you can be sure if not losing sight of things. DisclaimerMutual fund investments are subject to market risks. The previous performance of a fund or scheme is no guarantee of future success. Please read the offer document carefully before investing.
    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 a 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. 5 Reasons why you should invest via SIP 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 which 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 growth of your corpus and one of the reasons why experts advice 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. Consult an expert advisor to get the right plan TALK TO AN EXPERT
    SIP
    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. Additional read: Taxation 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. 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 your investments that are most suitable to your goals and objectives and your risk appetite. Consult an expert advisor to get the right plan for you 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 on investing 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. 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.   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.   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 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.
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