Category Archives: Education

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

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

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

Can US inflation affect your INR Savings? We know inflation causes the rise in the prices of vegetables, fruits, cars, houses, and even education.   Education inflation is not the sole factor affecting the rising cost of education. Other factors like cost of living, transportation cost, and dollar appreciation affect the cost of education.  Let’s find out the answer!   The rising cost of foreign education  Countries like US & UK are the most preferred countries among Indian parents and students. After China, India is the second largest source of international students. With a growing demand for foreign education and inflation, these universities have increased their tuition fees.  Over the years, the average cost of studying higher education in the United States rose by 1200% (from 1980-2020); which is far more than the rate of normal inflation in the same period.  In fact, numerous overseas universities have hiked their college tuition fees for 2022-2023. The University of Pennsylvania announced a 2.9% increase in its tuition fees, while Arizona State University announced that tuition fees would increase by 5% for international students.  Impact of Dollar Appreciation on INR Savings  When you plan to send your child to pursue higher education overseas, you should be aware of currency depreciation and appreciation. The planning to pursue higher education from abroad must consist of saving in dollar value So that you don’t lose out on the value of dollar appreciation. Let’s understand it in detail.  Suppose you are required to pay $1,00,000 dollar as tuition fees for your child's higher education. And currently $1=82INR, then you need to save INR 82,00,000. But, let’s say, the dollar appreciated and now trades at $1=85INR, in that case, you need to save INR 85,00,000. If you had saved in dollar values then, you would not have needed any extra penny to pay. But, if you have saved it in INR values, then you need an extra INR 3,00,000 to pay. So, if you are planning to send your kids abroad to study then, you should start saving in dollar value. Impact of US Inflation on INR Savings  Studying abroad not only means paying tuition fees, it means paying for other expenses as well like living costs, the cost of books, the cost of stationary, and the cost of transportation, etc. If inflation in the US is rising then the cost of other things will become costly as well. US inflation and dollar appreciation will have a direct impact on your INR savings. Suppose, the living cost in the US is $1000 per month currently and the dollar is trading at $ 1=82 INR. Then you need Rs 82,000 per month as living expenses. But let’s say inflation in the US has caused an impact on living expenses by 5%, then the cost of living will be $1050. At the same time, the dollar has also appreciated and now one dollar is trading at 90 INR. So, the overall impact on INR savings will be 15.24%. Now, you need to pay 94,500 INR per month as living expenses.  How can you protect your savings from US inflation?  Most parents do not realize the rising cost of higher education until it’s too late. They have little option left at the end – either to compromise on the quality of education or opt for education loans that take years to pay off. Both these options can drastically impact your child’s future and potentially risk their careers  Saving and investing early is the right way to protect your child’s higher education. The sooner you start saving and investing, the better it is. The time horizon will help you to determine when you need the money, how much you need it, and how to reach the goal.   The country you desire to send your child to can determine which asset class you should be investing in. If you are planning to send them abroad, then considering US ETFs and US equities is highly beneficial as this will provide you with geographical diversification in terms of investing, which will also cover the purchasing power parity in the future when your child starts spending in dollars or pounds.     Conclusion  If you are planning to send your child abroad start saving and investing in dollar value, and also start as early as possible.  TALK TO AN EXPERT

The affordable living expenses in Germany, a stable economy, high-class living, and numerous job opportunities make the country one of the premier destinations for quality education and successful careers.  The cost of living in Germany depends on the location of the university because some cities are relatively more expensive than others. It is important to be flexible if a student wants to thrive on a limited amount. The average living expenses in Germany for Indian students vary between 10,200 EUR – 12,000 EUR (nearly INR 8.1 lakhs – INR 9.5 lakhs) every year.  Students should be aware of their living expenses before traveling abroad as it is helpful in creating a budget for living expenses. The college cost calculator on the Edufund app is a blessing as it helps to get an estimate about the future living expenses besides the education costs and create a personalized financial budget based on needs and requirements. Semester contributions Most of the universities in Germany are state-run; hence the education cost is a bare minimum. Students, however, have to contribute between EUR 175 – EUR 250 (nearly INR 13,993 – INR 19,990) per semester for administrative fees and student amenities.  Students can also apply for a public transport pass or a semester ticket that costs between EUR 25 – EUR 200 (nearly INR 1,999 – INR 15,992) for six months, based on the type and location of the university. They will not have to pay for transport for the next six months.   Private institutions in Germany charge tuition fees, especially for non-EU citizens. Additional read: Education loan process for Germany Living expenses in Germany for Indian Students 1. Accommodation (average monthly cost) An important chunk of the living expenses goes towards accommodation costs, which depend on the location of the university and the type of accommodation the student prefers.  The preferred accommodations and their average cost per month are. 2. Food (average monthly cost) Students have access to restaurants and cafes on the university campus, where they can eat at discounted prices. For students that live off-campus, local street vendors and food trucks are an option.  The living expenses in Germany are manageable for Indian students as there are Indian stores that can provide ingredients to cook authentic food items. Students who have to rely on restaurants need to remember that eating out on a regular basis will prove expensive.  Self-cooking is the best way to manage funds because the cost of basic food and beverages is affordable.  Average costs on some of the common food items include. 3. Transportation  The daily public transport facilities in Germany cost around EUR 20 (nearly INR 1,599) and a monthly pass will cost EUR 200 (nearly INR 15,992). Students can apply for student passes or choose to move around via rented bicycles at a nominal fee. 4. Health insurance International students must have health insurance in Germany. Students who are studying degree programs are eligible for a public health insurance plan that costs between EUR 70 – EUR 80 (nearly INR 5,597 – INR 6396) per month. Whereas students above 30+ should have private health insurance that costs between EUR 400 – EUR 500 ((nearly INR 31,984 – INR 39,980) per month. 5. Utilities and Bills Students living off-campus have to pay for water, electricity, garbage, and heating. In some cases, the bill is included with rent, otherwise; it costs nearly EUR 29.42 ((nearly INR 2,352) for a kilowatt-hour. How to save more as an international student in Germany?  Keep a fixed budget for the month Studying abroad means, you will be away from your parent and you’ll be alone so you need to have a budget for everything.  Talk to locals  Talk to locals around you because they know that place more than you. They will tell you the best deals around you in restaurants, cafes, and all.  Cook for yourself Go to the local grocery market and cook for yourself. Eating outside daily can cost you way more than cooking for yourself.  Get a flatmate/roommate Sharing space and your accommodation mean that you will be able to cut costs. It will save you money. Staying alone in a flat or room means you will spend more. If you get a flatmate/roommate, the price of that place will be half. You will end up splitting utility costs as well.   Do a side hustle Earn money by doing some part-time jobs or a side hustle. By doing that you will learn and also earn extra for you.   Use public transportation or a bicycle Using public transport daily is the best way to save money in countries like Germany. Private cabs and rentals can be very expensive for students. If you live in a small town, then opting for a bicycle to roam the city is the most cost-effective method.   Go secondhand Cut costs wherever you can and the best way to do this is by opting for second-hand products. Suppose you need a bicycle, no need to get a new one! Buy it from a second-hand market or from someone who doesn’t want his/her bicycle anymore.  Save money wherever you can Cut off your unnecessary plans. There is Wi-Fi everywhere so instead of buying data plans use them. You should also unsubscribe from OTT subscriptions you are not using anymore. Or any auto-debit subscription that is not in active use.  FAQs How can international students save money in Germany? Here are some tips on how to save money in Germany: keep a maintained budget  Talk to locals  Cook for yourself   Get a flatmate/roommate  Do a side hustle  Get a bicycle  Go for secondhand  Save on your mobile bills  Is it expensive to live and study in Germany as an international student? In comparison to other countries and cities, Germany is one of the places which is less expensive. How much money can international students earn in Germany? You can earn around 450 euros (Rs 37,000) per month by doing part-time jobs. How much money do I need as a student in Germany? On average around 870 euros (Rs 71,000) for a month is all you need for your expenses. Conclusion Prestigious universities and reasonable living expenses in Germany make the country an excellent choice for studying abroad. If you are in a dilemma about the cost of living, then consult with the counselors on the Edufund app to know more about it in detail. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Living expenses in Canada for Indian students are very high and aspiring applicants need to be aware of them before traveling abroad for the desired study course. Canada is the preferred study hub because of its growing economy, cultural diversity, access to seamless medical care, and unlimited job opportunities.  The country is known for its excellent education system, distinctive curriculum, numerous study courses, and reputed colleges and universities. A promising future encourages Indian students to travel to Canada for higher studies but what about the living expenses?  There has been a lot of speculation about the living cost in Canada hence let us find the answers to the queries related to the cost of essential expenses. Living expenses in Canada for Indian students The average living expenses in Canada for Indian students vary between 15,000 CAD (nearly INR 8.9 lakhs) – 20,000 CAD (nearly INR 11.9 lakhs) every year based on individual lifestyles and different cities across the country.  The essential living expenses that an Indian student has to incur include- 1. Accommodation (average monthly cost) The most popular options for accommodation are dormitories which house many students and townhouses which house three to six students. Both on-campus accommodations have several facilities like hot water, internet, and heat. Other popular choices are shared apartments and unfurnished rental apartments. The average monthly living cost of the accommodations is-  Dormitories 350 CAD – 600 CAD (nearly INR 20,958 INR 35,928)Townhouses 250 CAD – 650 CAD (nearly INR 14,970 - INR 38,922)Shared Apartments 400 CAD – 800 CAD (nearly INR 23,942 – INR 47,904)Unfurnished Rental Apartments300 CAD – 500 CAD (nearly INR 17,964 – INR 29,940) Master's vs. PGDM in Canada? Read More 2. Food (average monthly cost) It is easy to get an estimate of food expenses by going through the rates of some of the most common food items. Water (1.5 liters)1.84 CAD (nearly INR 110)Rice (1kg)3.74 CAD (nearly INR 224)Apple (1 kg) 4.24 CAD (nearly INR 254)Cheese (1kg)12.99 CAD (nearly INR 778 )Milk (1 Liter)2.46 CAD (nearly INR 147)Eggs (12)3.63 CAD (nearly INR 217) How to finance a child's master's in Canada? Read More 3. Transportation (average monthly costs) Students use public transport in Canada as it is quite safe and easy to navigate. You can get student discounts by showing your student ID card. The average monthly costs of using some of the common modes of transportation are –  Bus 100 CAD – 150 CAD (nearly INR 5,988 – INR 8,982)Subway65 CAD – 99 CAD (nearly INR 3,892 – INR 5,928)Taxis per km40 CAD -50 CAD (nearly INR 2,395 – INR 2,994) Canada University Fee Structure Read More 4. Health Insurance (average annual premium) Every international student must have a health insurance policy in Canada. The coverage depends upon the province where one lives. Some popular medical insurance plans with their costs are BC MSP Program74 CAD/month (nearly INR 4431)iMED 225 CAD for 3 months (nearly INR 13,473) 5. Miscellaneous (average monthly cost) It is important to factor in personal expenses like clothing, laundry, toiletries, etc. which are part of everyday spending and depend upon an individual’s lifestyle.  Other important expenses include Electricity (average monthly costs) – 50 CAD (nearly INR 2,994) Phone bill - (average monthly costs) – 40 CAD – 100 CAD (nearly INR 2,395 – INR 5,988) Internet (average monthly costs) – 30 CAD – 50 CAD (nearly INR 1,796 – INR 2,994) Tenant’s Insurance (average monthly costs) – 15 CAD – 30 CAD (nearly INR 898 - INR 1,796) Cost of living in some of the cities of Canada The cost of living for Indian students depends upon their lifestyle and the city they live in. Some of the popular and most costly destinations for students and the average cost of living in that city are mentioned below- City The average cost of living every yearToronto37,000 CAD (nearly INR 22 lakhs)Montreal 25,000 CAD (nearly INR 14.9 lakhs)Ottawa20,000 CAD (nearly INR 11.9 lakhs)Calgary26,904 CAD (nearly INR 16.1 lakhs)Vancouver38,484 CAD (nearly INR 23.08 lakhs) 10 Tips to save money in Canada 1. Try to save money Save money whenever you can. If you find alternatives to doing something on your own then instead of spending it, save the money.   2. Apply for scholarships Every college has scholarships. Canadian universities offer amazing scholarships to potential students, so take advantage of them.     3. Keep a budget To save money as a student, you need to keep a budget for everything. When there’s no budget maintenance, people tend to spend more. Have a fixed budget for the month and don’t spend more than it.  4. Cook your meals University campuses are filled with food stalls and fast food joints and when you are hungry, you buy them, and then your bank balance drops.  So cook for yourself.    5. Claim student bank discounts and offers All bank in Canada has offers for students. Take advantage of them. Save every penny.   6. Buy second-hand stuff if you can You might need something but you don’t need to buy everything new. You can buy them in any second-hand marketplace and you can find anything there.  So instead of buying everything new or on amazon search it in these marketplaces.  7. Don’t use credit cards Credit users tend to spend more as they think they have enough money but you spend more than they need.  So cut them off.  8. Start doing a side hustle  Start earning!   Start doing a hustle so that you can earn more. Then you don’t have to worry much about your expenses. There are too many ways to earn more.   9. Use a bicycle If you need to travel daily and it’s a short distance then buy a bicycle instead of using public transport and spending more money.  10. Lower your party days Party is okay, everyone loves to party but don’t do too much of it too. Set a monthly budget for it.   FAQs How can I earn money in Canada? Students can work up to 20 hours per week off-campus in Canada. You can take up some internships or part-time jobs or start a side hustle. International students on a student permit are legally allowed to work and earn a living in Canada to help with finances.   What is the average living cost in Canada? The average living expenses in Canada for Indian students vary between 15,000 CAD (nearly INR 8.9 lakhs) – 20,000 CAD (nearly INR 11.9 lakhs) every year based on individual lifestyles and different cities across the country.  Is living in Canada expensive? Canada is considered one of the most expensive countries to live in. The most expensive city in the country is Toronto. How much money do you need to live in Canada comfortably? As a student, you need roughly 15,000 CAD (nearly INR 8.9 lakhs) – 20,000 CAD (nearly INR 11.9 lakhs) every year. What problem an International student can face? Problems like cultural shock, new language, new people, accommodation, money management, etc. There are many student accommodation scams and foreigner scams that you need to be aware of so that you do not end up losing your hard-earned money. Conclusion Canada is no doubt an expensive country and it is challenging to manage the education and living costs simultaneously. A well-structured financial plan can be a blessing in disguise but you need an expert who can formulate such an organized plan for you.  Knowing about the living expenses in Canada for Indian students is important especially when they are preparing for overseas education. The college cost calculator on the Edufund app takes into account the future living costs so that the students can be aware of the average total cost of studying abroad and plan accordingly. 

In the previous article, we talked about the difference between IELTS and TOEFL. In this article, we will learn about the difference between IELTS and PTE. English proficiency exams like IELTS and PTE and the GRE and GMAT also form part of the requirements for university applications in English-speaking countries.   In many cases, all applicants with a non-English speaking background must submit their IELTS/PTE scores to the university to which they are applying. What is IELTS?  The International English Language Testing System (IELTS) is made to let you work, study or move to a country without worrying about your English which can be the native language. This includes countries like Australia, Canada, The UK, New Zealand, and the USA.  Your capacity to listen, read, write, and talk in English could be assessed in the course of the test. IELTS is marked on a scale of 1-9. IELTS is collectively owned by the British Council, IDP: IELTS Australia, and Cambridge English.   What is PTE?  PTE is the Pearson Test of English. It is a worldwide totally computer-based English Competency check. To get a seat down the check, candidates need to sign in online and get a seat down their check in a licensed PTE check center.   Difference between IELTS and PTE Basis of DistinctionIELTS (Academic)PTE (Academic)NameInternational English Language Testing SystemPearson Test of EnglishConducting BodyBritish Council and IDP Education LtdPearson PLC groupDuration2 hours 45 minutes145 minutes to 190 minutes to finish fullySectionsReading, writing, listening and speakingReading, writing, listening and speakingMedium of conductComputer-based and Paper-basedComputer-basedScore rangeBand 0 to 9Band 10 to 90No. of timesCandidates can take this exam 48 times a yearCandidates can take this exam for more than 360 days a yearCountry of PreferenceAll UK universities accept IELTS academic test scores as a certification of English language abilityUsually accepted by universities in the UK, Australia, and New ZealandCost (Usual)$225$150 - $210Validity of scores2 years2 years IELTS vs PTE: Deep understanding 1. Speaking   The IELTS speaking test is given face-to-face and lasts 10-15 minutes. Students must speak at length about a familiar topic and answer questions.   PTE requires you to make a personal introduction, read aloud, repeat sentences, describe the visual, retell the lecture, and answer a question.  2. Writing In IELTS writing test is to explain a graph or diagram, and the second is to write an essay on a given topic or the evaluation of an argument.  PTE, you must summarize a text in one sentence and then write an essay based on it.  3. Reading The IELTS test includes questions based on the reading of three long passages; students must answer questions in various formats such as gap fillings, short answers, and so on after reading.   The PTE exam consists of five academic passages with questions designed to assess various skills. The student must respond to inquiries by filling in the blanks, rearranging paragraphs, and answering multiple-choice questions (MCQs).  4. Listening In the IELTS listening section, students must answer questions based on four monologues that as played for them.  PTE, this section includes questions such as summarizing the spoken text, highlighting the correct summary, selecting a missing word, writing from dictation, etc. Score report: IELTS and PTE  1. Marking system Overall scoring is between 10-90 for PTE.  Overall scoring is between 0-9 for IELTS.  2. Subjects-related Communicative skills (includes reading, speaking, and writing). A score for each section for PTE.  Communicative skills (includes listening, reading, writing, and speaking). A score for each section for IELTS.  3. Overall scoring Not an average score calculation for PTE.   Average score calculation for all sections for IELTS.  4. Global Acceptance Selected universities but popular in many countries in PTE.   A lot of universities accept IELTS.   FAQs Which is much easier to crack; IELTS OR PTE?  The IELTS exam is much easier to crack than PTE because the grading process is better than PTE’s grading process.  Why PTE and IELTS are important to pass?  PTE & IELTS both exams are both important because it helps in checking if someone is fluent in English or not for attending college abroad.  What’s a good score to obtain for PTE exams?  On average around 75-85.  Are 12th/10th marks important for giving any of these exams?  No, your 12th/10th doesn’t matter for giving these exams. Also, there are no minimum marks given to give these exams.  What happens if I pass IELTS?  If you can pass IELTS then it opens different choices of career opportunities in English as a native language.   Looking for more information? Talk to a professional! Consult an expert advisor to get the right plan TALK TO AN EXPERT

Along with the GRE and GMAT exams, English proficiency exams like IELTS and TOEFL are essential for university applications to English-speaking countries.   Usually, all applicants having non-English speaking backgrounds have to report their IELTS/TOEFL scores to the university they apply to.   Difference between IELTS and TOEFL IELTS and TOEFL test format Difference between the exams of IELTS and TOEFL 1. IELTS and TOEFL: Writing section In IELTS, students have to answer two writing questions First question requires students to examine and explain a picture or a chart. Second question, the student has to write 200-250 words on a given argument.   For the TOEFL, First question’s answer is a 5-paragraph essay. In the second question, the students have to write notes (150-225 words) from a given text.  2. IELTS and TOEFL: Speaking section The IELTS test is conducted face to face, for 10 - 15 minutes students need to talk at length about a familiar topic and answer questions.   In TOEFL, the duration of the section is 20 minutes the speaking assessment is recorded through a microphone, then sent to the examiners.  3. IELTS and TOEFL: Reading section IELTS test includes three questions in this section, and the students have to answer questions in different formats like gap fillings, short answers, etc., after reading three long passages.   For TOEFL, the reading consists of 36-56 tasks based on reading academic texts and answering them through your lens of understanding.  4. IELTS and TOEFL: Listening section In the listening section of IELTS, students will have to answer questions based on four monologues that will be played for them, whereas the TOEFL test will be on classroom lectures and applicants taking notes while listening to the audio.   Students have to solve MCQs in a given duration of 40-60 minutes in the TOEFL listening component. Source: pexels.com What are the main differences between IELTS and TOEFL? Category IELTS TOEFL Mode of Conducting Computer-based exam Paper-based exam Computer-based  Time duration 2 hours, 45 mins 4 hours Types of Questions Variety of questions MCQs in reading and listening Score chart  Scores are from 0-9 Scores are from 0-120 Accepted by UK, Canada, New Zealand, Australia, etc USA universities  Which universities accept IELTS vs TOEFL?  IELTS exam score is accepted by around 9000 institutions and a lot of countries like the US, UK, Australia, Canada, and New Zealand.  TOEFL exam scores are accepted in more than 10,000 institutions and a lot of countries like the US, UK, Canada, Australia, New Zealand, France, and Germany.  Score Comparison IELTSTOEFL9118 - 1208.5    115 - 117 8110 - 114794 -1016.579 - 93 5.546 - 595 35 - 45 4.5  32 - 340 - 40-31 Major factors to consider  Check if the universities you want to go to accept IELTS or TOEFL because if don’t then nothing else matters.  TOEFL is preferred in most American universities whereas IELTS is accepted in universities in other countries.  If your university accepts both tests then pick one which is more suitable for you as both tests are different. Such as TOEFL has MCQs while IELTS has varieties of questions.   TOEFL is a computer-based test while IELTS is a pen-paper test so if you prefer a computer because you can type faster or your handwriting is not that good then you can go for TOEFL.  The cost is different for both of the tests but depends on the exam location.  Which exam should you take?  The above question depends on the country and the institute you want to study in. Some universities accept either of these tests with individual score requirements.   However, we recommend you think closely about the question types and formats that suit you and then decide. After the university’s requirements, it boils down to your needs. FAQs What’s the full form of TOEFL?  Test of English as a foreign language.  How many times can I give IELTS?  As many times as you like to.  Is 7 a good score for IELTS?  If you have scored 7, then 7 is definitely a good score.  Is TOEFL easier to pass?  In comparison to other tests, TOEFL is considered easier to pass. Consult an expert advisor to get the right plan TALK TO AN EXPERT

So what do you do if you are enrolled in a medical degree in India and want to study abroad after MBBS? Or if you want to practice law in the United States? The GRE is a broad general-purpose aptitude test that is accepted by a wide range of postgraduate programs. However, if you want to study abroad for a professional degree like medicine or law, you will have to take specific aptitude tests for those disciplines.  MCAT vs LSAT MCAT The Medical College Admission Test is conducted by the Association of American Medical Colleges. It is a standardized computer-based test for admission into medical programs that test the aptitude of students who have already completed basic pre-medical training at the university level. 1. Eligibility In order to be eligible for the MCAT, you have to be planning to apply to medical school and not currently be enrolled in any professional health courses. These include MD programs, DO programs, and Podiatry or Veterinary medicine programs. For Indian students looking to study abroad, if you are enrolled in or have graduated with an MBBS degree, you are eligible to sit for an MCAT. If you don’t fulfill the above criteria, you may have to take special permission before sitting for the MCAT. 2. Format Unlike the GRE and GMAT, the MCAT is not computer-adaptive. This means, the questions are standardized and do not get automatically adjusted to the difficulty level as you answer. The MCAT has four sections: chemical and physical foundations of biological systems, critical analysis and reasoning skills, biological and biochemical foundations of living systems, and psychological social, and biological foundations of behaviors. The exam tests students' broad and specific knowledge of biology, chemistry, organic chemistry, physics, psychology, and sociology as well as critical reasoning, research methodology, and scientific reasoning and inquiry.  The entire test is around 7 and a half hours long, including optional breaks: a 10-minute break after each section and a 30-minute mid-exam break after the first two sections. Each section is 95 minutes long, except the critical reasoning section which is 90 minutes long. There are also a few ‘void’ questions that are not scored but are used for experimental or research purposes. Additionally, there is an end-of-the-exam survey which is optional.  3. Scoring The MCAT is scored on a scaled and equated scale of 118-132 with 125 being the median. Your raw scores will not be revealed on test day or mentioned on your score report. Candidates also receive a percentile score. 4. Validity MCAT scores are accepted and required by all US medical schools and all Canadian medical schools. The scores are valid for three years from the date of taking the exam. 5. Registration and Fees You can register for the MCAT through their website and book an appropriate test date and center according to the MCAT schedule.  If you register for the test at least 29 days before the date, you will be charged $320. This number is for Indian nationals looking to study abroad after MBBS. MCAT Syllabus About physics, chemistry, and biology,  Social demographics,  About behavioral science,  Critical reasoning,  Problem-solving knowledge in the medical sciences  Prevalent lifestyle trends,  The role of a physician  How do I prepare for the MCAT?  Try to understand what’s MCAT: Learn about the MCAT exam. It has MCQs, and it is a computer-based exam. This exam is for the medical school selection process.  Think before selecting your undergraduate course:   Don’t overload yourself with too many science subjects. The MCAT itself has too many subjects to learn. Learn about humanities, accounting, and literature, which are going to help you in your MCAT preparations.  Start your preparations as early as you can:   If you start early, you will have plenty of time to prepare for the exam. At least keep three months on your hand.  Make a study schedule that suits you:  Prepare a timetable so that you can work accordingly.  Take mock tests yourself:   After completing your preparations, take mock tests to prepare yourself more.  LSAT The Law School Admission Test (LSAT) is administered by the Law School Admission Council (LSAC) for admissions to Juris Doctor (JD) and LLM programs in the USA, Canada, and some Australian universities. The LSAC also conducts LSAT India which is for admission to LLM programs in certain law schools in India. 1. Eligibility There are no specific criteria for taking the LSAT as determined by the LSAC. Legal degree-granting programs and law schools that accept the LSAT may have specific criteria. However, most US law schools require an undergraduate degree in any discipline as a prerequisite for admissions. Law schools in the US generally don’t prevent international students from applying to legal programs in the US. However, it is always a good idea to check the eligibility requirements of the program you are applying to before registering for the LSAT. 2. Format The LSAT consists of five sections: logical reasoning, reading comprehension, analytical reasoning, writing sample, and an unscored experimental section that is indistinguishable from the rest. The logical reasoning section asks students to analyze logical arguments to identify assumptions, alternate conclusions, errors, or logical omissions. The reading comprehension section involves reading a particular passage and analyzing it to interpret meaning, draw inferences, determine the structure of the passage, etc. It also often includes a comparative reading question that involves reading, analyzing, and comparing two passages. Analytical reasoning tests a candidate through 'logic game' based questions that test the candidate's ability to analyze a range of possibilities within a given set of rules. The writing sample involves writing an argumentative essay based on a given writing prompt. The unscored section consists of questions being used by the LSAC for experimental purposes and is not counted toward the final score. However, it is indistinguishable from regular, scored sections. Any of the sections can be used for the experimental section The LSAT is 3 hours long excluding an optional 15-minute break that is offered in between. Each individual section is 35 minutes long. In light of COVID, the LSAC now offers the LSAT-Flex and LSAT-Writing. The LSAT-Flex is a 2-hour long, remote-proctored, at-home, computer-based test. This includes the logical reasoning, reading comprehension, and analytical reasoning sections. The writing sample will need to be submitted by taking a separate remote proctored, at-home test, the LSAT-Writing. This is a 35-minute long test taken at a later date. 3. Scoring The LSAT is a scaled, standardized test like the MCAT. Scores are distributed on a scale of 120-180. They also receive a percentile score. 4. Validity LSAT scores are recognized and required by law schools across the USA, Canada, and some Australian universities. The scores are valid for 5 years following the date of taking the test. 5. Registration & Fees Indian students looking to study abroad for legal studies can register for the LSAT through the LSAC website. You will be required to use your passport as an ID document for registration.  The basic fees for LSAT are $200 plus an additional fee of $195 and $45 for the Credential Assembly Service (CAS), and Law School Report respectively. The Law School Report is a streamlined compilation of all your law school application documents like scorecards, transcripts, letters of recommendation, etc. The CAS is a centralized service used by law schools to access the Law School Report. Extra charges may be levied for test date changes, score previews, etc. FAQs How hard is the LSAT exam? It’s generally hard, but if you have done your preparations nicely, then you can pass it.  I study for just one month and clear the MCAT exam? Studying just for 1 month is risky, but if you’re already good at science or the humanities, then you may clear the exam.  Is studying for 3 hours a day enough for the MCAT?  You can study 3-6 hours a day or whatever suits you for MCAT. What is the lowest mark accepted in the MCAT exam?  If you score as low as 508, then you might get accepted.  Is it possible to study for the MCAT exam on my own?  Yes, you can study on your own if you think you can do it efficiently.  Conclusion A professional degree is a great option for those who have specific goals that they want to commit to. While degrees like law and medicine are very intensive, sometimes expensive and require a lot of hard work, they are equally rewarding. If you are willing to put in the time and effort required for these degrees and entrances, you can look forward to a bright future! Consult an expert advisor to get the right plan TALK TO AN EXPERT

What is AUM in mutual funds? What does it stand for or how is it calculate? Let's answer what does it mean when investors talk about AUM in mutual funds! The aggregate market value of the investments held by a mutual fund is known as its Assets Under Management (AUM). On behalf of the investors, the fund manager handles these assets and makes all investment-related decisions. AUM is a measure of a fund house's size and performance. The assets managed by a fund can be easily compared with other similar funds' performance over time.  The returns a mutual fund receives are also factored into the AUM value. This can be used to purchase securities, hold them as specified by the investing mandate, or distribute dividends to investors.  Things to consider in AUM before investing?  Investors in mutual funds frequently evaluate the fund's AUM and are impressed if it is on the higher side. People assume that a fund must be good if so many investors have previously contributed to it. However, there are a lot of reasons why this number shouldn't matter when selecting a fund.  Some of the most crucial elements to consider are the expense ratio, the fund manager's reputation, and compliance with the investing mandate. Let's examine the significance of AUM in relation to various fund types.  1. Large-cap funds  Let's examine an example of how AUM affects large-cap mutual funds. Two large-cap equities funds are HDFC Top 200 and Mirae Asset India Opportunities. The former's AUM is Rs.14,655 crore compared to the latter’s just Rs.4,738 crore. Most investors may choose to invest in HDFC Top 200 for this reason. However, the Mirae has historically earned higher returns over various periods.  2. Small-cap funds  Small-cap funds typically limit the inflow of cash after a specific threshold. A well-known case of this is the DSP BlackRock Micro Cap Fund. This typically happens when a mutual fund's assets exceed a certain threshold. When the market fluctuates, the fund might not be able to quickly trade its shares if it becomes a major stakeholder in a company. Due to this, small-cap funds frequently stay away from lump-sum investments and instead opt for SIPs.  3. Debt funds  If you’re considering investing in debt funds, AUM is an important factor to consider. The fixed fund costs might be split among more investors in a debt fund with higher capital. This can lower the cost per individual and hence boost fund returns. Additionally, more assets under management assist the fund organization in securing fair interest rates from debt issuers.  4. Equity funds  Here, stability in returns and commitment to the investing mandate by the fund company is more important than AUM. By stability, we mean surpassing the benchmark during both the highs and lows of the market. As a result, rather than popularity or size, an equity fund depends on the asset manager's ability to produce strong returns consistently.  How to calculate AUM in mutual funds?  Fund houses use different techniques to determine assets under management. When a fund continuously generates positive returns, its total investment value will increase. Growth in AUM might result from the attraction of new assets and investors due to strong performance.  Similarly, assets may drop if the market value or investment performance declines. The same applies to sudden fund closures and share redemptions by investors. Capital that has been invested in the firm's goods is included in its assets under management, which also includes the stock of the company's executives.  Formula to calculate AUM: "AUM = Net Asset Value (NAV) * Total number of units.”  AUM's impact on the expense ratio or fee  Every fund house charges a fee called a management fee that is based on the size of the fund. Investors are charged based on the number of units they own at a single cost for the entire fund. The fees are unaffected by the performance of the fund. It just pays for administrative costs and establishes the asset manager's pay for his work. The annual costs to run a mutual fund are measured by the total expense ratio (TER). According to SEBI, the AUM must always be more than the TER.  source: pixabay High AUM's effects on mutual funds  AUM growth can occasionally hurt an equity fund's performance. However, there is hardly any data to suggest that a bigger AUM either helps or hurts the fund's performance. The fund manager is the one who should seize market opportunities and buy or sell a stock at the appropriate moment. Larger assets under management have frequently made it more difficult for the manager to make rapid judgments regarding investments. Before investing, evaluate the fund's performance in relation to the benchmark and its rivals. Higher AUM means the manager needs to be on point and well-experienced. Check the experience of the manager in handling high assets before investing in such funds.   AUM and market fluctuations  Market movements have a significant impact on the assets managed. The assets of the fund will increase when it generates returns and decrease when it suffers losses. This impacts the mutual fund fee as well. Lower expenses typically equate to lower value. For instance, imagine that a mutual fund that has produced 10% returns has received a total investment of Rs. 10,000 from 100 investors. If so, Rs. 11,000 would be the fund's AUM. After all, businesses determine the worth of their assets under management using a variety of techniques.  AUM is a great way to evaluate a fund's popularity and performance. However, it should not influence your decision to invest in that fund. Should you consider AUM before investing? AUM is an essential factor that helps you in shortlisting the funds. The higher the AUM, the more stable the fund could be. Often you will see Analysts mentioning AUM > Rs 1000 crore is a good benchmark as it defines the fund's stability.  Also, the expense incurred to manage the fund gets spread, and the expense ratio reduces with rising AUM. Let us see the impact of AUM on equity funds and debt funds -  1. Equity funds In equity funds, consistency and sustenance of returns are more critical than AUM. Thus, the investment process and philosophy should be given more importance.  2. Debt funds In debt funds where the investment is in different fixed-income instruments, it is critical to consider AUM. While benefits such as expense ratio and reputation are one thing, the essential thing in debt funds is getting reasonable rates with debt issuers. With higher AUM, the fund manager tends to get better rates which add to the performance. Also, higher AUM in debt funds for retail investors adds to the fund's stability. Impact of high AUM in mutual funds While a high AUM is good for the stability of the fund but huge AUM often impacts your performance. For example - in the case of Large Cap Equity funds, if a fund reaches are very high AUM, the performance is likely to get impacted as the universe of stocks in which the money can be deployed is minimal and beyond a point outperforming the benchmark in large-cap space (where information inefficiency is negligible) is often tricky.  Thus, while AUM is necessary for the stability of a fund, it is not the only and single most critical factor on which the decision to buy or sell a fund should be dependent. FAQs What is a good AUM in mutual fund? AUM is a measure of a fund house's size and performance. AUM size only matters in certain funds. What is AUM vs NAV? NAV refers to the prices of shares in a fund while AUM refers to the value of assets managed by the advisor. How is AUM calculated? Here is the formula to calculate AUM: "AUM = Net Asset Value (NAV) * Total number of units.”  Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Even if studying abroad is pricey, there are still ways to get a top education from foreign universities for a lot less money. In this blog, we have discussed the cheapest cities in the world that are great for studying abroad. Need help funding for dreams? Connect with our loan experts! Cheapest cities in the world Following are the top cheapest cities in the world. 1. Kuala Lumpur Malaysia's capital and largest city, Kuala Lumpur, is ranked second in the world for affordability for the second year in a row. International students will pay an average of just USD 2,500 per year in tuition at one of Kuala Lumpur's five top-ranked colleges, placing the city in equal 29th place overall among the world's best student cities this year according to QS rankings 2022. A one-bedroom apartment in the city center will typically cost US$568 a month for those looking to reside there (according to Numbeo). According to the Mercer Cost of Living Survey, Kuala Lumpur ranks 141st out of 209 nations for affordability. 2. Hsinchu Hsinchu, the second city to call itself "The Windy City," can astound those of you looking for an excellent spot to study abroad (the first, of course, being Chicago). Hsinchu is a great choice for students who want to study in Taiwan but don't want to deal with the commotion of a large city, ranking 10th for affordability this year and joint 68th overall in the QS Best Student Cities rankings. With a population of 435,000, Hsinchu is one of Taiwan's lesser-known, smaller cities (as opposed to its capital, Taipei, which has over 8.6 million inhabitants). Tuition costs for international students are equal US$2,900 annually. National Tsing Hua University and National Chiao Tung University are two highly regarded universities in Hsinchu that are both listed in the top 250 of the QS World University Rankings 2022. 3. Johannesburg, South Africa South Africa's largest city, Johannesburg, also serves as the nation's financial and commercial hub. There are 11 official languages in the nation, and English is typically used to teach university courses. Johannesburg is home to two of the top universities in the nation, each of which is ranked among the top 450 worldwide. The average annual cost of tuition is $4,200 USD. A student only needs about USD 664 per month for living expenses, plus USD 465 for rent in the city center. With an annual average temperature of 21C, Johannesburg experiences warm weather all year long. There is a lot to see and do in the city, including festivals and concerts, markets for shopping, galleries, and museums to explore. Beautiful natural areas, such as Lion Park, are close to the city. 4. Budapest The capital of Hungary, with three of the world's top institutions and a population of over three million, tops the list for affordability. Budapest also ranks 43rd overall in the QS Best Student cities 2O22. Budapest will have an average annual tuition cost for out-of-country students of US$1400 (much lower than many other study destinations). In the Mercer Cost of Living Survey, the city comes in at 164th place out of 209 nations.  5. St. Petersburg There are more than five million people living in St. Petersburg, which is the second-largest city in Russia (after Moscow, of course). The city, which in 2019 was ranked 66th overall, has moved up four spots in the affordability indicator to tie for fourth place, with an average annual tuition of US$2,600 at its three top universities. According to Numbeo, this amazing city's cost of living is 28.2 percent less expensive than Moscow, the capital of Russia, which will excite students wishing to study there. Even though St. Petersburg's affordability receives the highest overall rating, the student view indicator, which shows how well-liked it is among students, has seen the most improvement this year, climbing 16 spots. Cheapest universities in the world  Following is the list of the cheapest universities in the world for international students: University of Wuerzburg Brigham Young University Florida State University University of Central Arkansas Brandon University Bucks New University Bucks New University Osaka University FAQ Can underprivileged students travel and study abroad? You can always apply for international scholarships if money is tight. Additionally, you want to submit applications to several economically sound or cost-effective nations, including Germany and Canada, which feature colleges with cheaper tuition rates. What nation offers free education? Many nations, including Denmark, Iceland, Finland, Norway, and Sweden, have possibilities for a free or discounted education Is college in the USA affordable? The United States has long been regarded as one of the most expensive places for overseas students to pursue higher education. However, students can locate colleges that provide high-quality instruction at reasonable costs. We hope that this blog gave you some insight into the most affordable cities in the world for foreign students.

A beginner's guide to education inflation is a stepping stone in saving and investing for your child's education. With children come specific and inescapable responsibilities. It starts with providing your child with a safe home, loving and nurturing space, and quality education to help them grow and become their better selves. Yet all these needs come at a high cost.  The average inflation rate across sectors is rocketing beyond belief and has bypassed the rate of household inflation. From basic needs to luxury, the average cost of different items has increased manifold.   College is a lifetime experience; it offers quality education, changes one’s mindset, and opens up a vast network of opportunities. Generally, the chance to better oneself is why Indian parents and students work hard to get into some of the world's most significant educational institutions, not just India. Yet, this access to quality education comes at a great price. Consider the example of IITs in India; despite the devastating pandemic, the tuition fees for undergraduate courses jumped from Rs. 90,000 to 2 lakhs! Similarly, top universities in the USA in 2022, announced tuition fee hikes while Canada increased its international tuition fees by nearly 5% annually across all provinces.  The increase in tuition fees and other consequential education expenses results from inflation; Education inflation is a real threat to your savings. The hard truth is that it will rise even higher in the years to come.  It has become imperative for parents to understand how Education inflation can affect their savings. And why it is essential to protect their savings via investment.  Before we talk more about why parents should be protecting their savings from Education Inflation, let us look at some of the factors responsible for the rise in education costs.  https://www.youtube.com/watch?v=F9WG4-C_1Jk YouTube: EduFund Factors responsible for the rise 1. The rising cost of amenities The tuition fees don’t comprise the entire cost of education. It is also the amenities that come along with it. Food, accommodation, extracurricular, commutation, and other living expenses contribute significantly to the cost of education.  2. The rise in the number of educators With more universities and the expansion of different courses, the demand for educators has increased as well. And this contributes notably to the overall cost of education.  3. Increased demand for higher education Higher education has upgraded to be a necessity from the space of mere desire. A University degree is a means to financial success and prestige in the modern world.  4. Lower public funding The public sector's investment in the field of higher education is much lower than the other segments. Universities rely on tuition fees as their primary source of income which means that the burden of the cost falls on the shoulders of parents and guardians. While you cannot control this financial phenomenon, you can strive to understand why you need to protect your savings from it.  https://www.youtube.com/shorts/jPHG8h87Dzo YouTube: EduFund Why do parents need to protect their savings from Education inflation? 1. Preserve your purchasing power The value of money depreciates with time. Even though you might earn some extra currency over time, the real value matters the value of the Indian rupee depreciating against the dollar and pound over the years. And you need to check whether you’ll be able to retain your present purchasing power after a certain number of years.  Consider ensuring that your return on savings is higher than the rate at which the value of money depreciates. The consistently soaring education Inflation is one of the significant factors affecting such depreciation. 2. Shield your child’s future  With a world full of information and opportunities, your child should be free to dream about their future. And to make this happen, it is essential to shield their future against all the odds. With proper planning and strategic allocation of your funds, it is possible to compete with the rising cost of education.  3. Maintain your standard of living  To lead a happy and healthy life, look at the practical aspects of things. Your savings must consider your living standard. Your funds should be able to balance between needs and wants.  4. Make harmony with your retirement plans You are to retire and there is no denying that. Are you willing to work this hard all your life? or, would you like to grow old sipping your coffee and relaxing while watching the rain? Life has its phases and you need to enjoy them the way they are meant to be enjoyed.  While taking the cost of your child’s higher education into account, it is so important to take your retirement into consideration. 5. Take your health into account Physical and mental health are pertinent to your well-being and your family’s bright future. A financially secure plan can protect you from avoidable stress, and various lifestyle diseases and prepare you for certain unavoidable medical expenses.  Only when you are healthy will you be able to enjoy the money you are saving. Thus, your health is another reason to protect your savings from Education inflation.  Education inflation is rising at 10-12% in India which makes protecting your savings essential to retain your purchasing power in the future. Give your child the future they deserve by keeping up with the times and saving in advance. How to build an education corpus?   1. Calculate the total cost  Plan the total cost to get an approximate amount that you need to save. Setting the target will create a goal and make the journey easy. The education cost varies from course to course so take the help of professional experts to chart an education corpus plan.    A unique college cost calculator can do wonders for parents. The College Cost Calculator on the Edufund app takes into account various factors and calculates the future cost of college, which makes it easy for parents to set a goal.   2. Start investing as early as possible  Parents who can start saving and investing early manage to create a substantial amount of education corpus. The longer time you have in your hands, the more interest you can accumulate.   3. Choose the right investment tools Know your investment options and invest in the right funds to get maximum returns. The financial plan must include the right methods and investment vehicles to accumulate funds. Savings accounts with 3% to 4% per year and FDs with 5% to 7% per year are safe and secure ways to save. Traditional life insurance policies offer 5% – 6% interest per year.    Invest in equities at the beginning as they yield inflation-beating returns in the long run. Investors prefer SIPs in mutual funds for wealth creation. Scroll through the Edufund app to know your savings option as it provides access to 4000+ direct mutual funds, SIPs as low as INR 100, US stocks and ETFs, ELSS funds, and digital gold.   4. Protect your investment Aggressive investments will accumulate the desired funds, but it is vital to protect the investment from eroding because of adverse market conditions.   Remember the reason why you need an education corpus and shift the corpus to debt instruments as the goal nears to keep it safe and secure.    Start withdrawing two to three years before you will need the money and then shift it to bank fixed deposits or debt funds, as it will give fixed and safe returns.   5. Track your investment   Keep track of the investments regularly and finetune them based on the need of the hour. Creating a plan is easy but sticking to it is a bit difficult. Don’t divert funds for non-essential needs, as building an education corpus is vital for the child’s future.   Education inflation over the years and in the future Here is a look at the cost of popular courses in the past and the expected costs of the courses in the future. These costs are for one year of college.  Course Cost in 2015 2020 Expected cost in 2025 Expected cost in 2030 Engineering 145000 171374 202545 239386 Hotel Management 77000 98200 128205 159636 MBBS 800000 1000000 1250000 1562500 MBA 1140000 1586000 2206126 3068721  FAQs Why education is becoming expensive:   There are many factors responsible for the rising cost of education. A few factors could be- the rising cost of amenities, the rise in the number of educators, the increased demand for higher education and lower public funding.   How do you calculate the future cost of education?   There is a formula to calculate the future cost of education. It is calculated with the formula Future value = Present value (Expected returns + Rate of interest)  What is the rate of inflation for college?   The cost of education has been increasing by 10% every year in India. Between 2012 and 2020, the cost of education rose in the range of 10- 12% every year.   How does inflation affect students?   As education costs go up, it becomes increasingly tough for students to get into their dream universities. This further affects their employment prospect.   TALK TO AN EXPERT

The benefits of long-term goals are that it helps individuals to realize their dreams over time. Sometimes you need to prioritize and work things out. Setting long-term goals gives people the opportunity to achieve desired results eventually. What are long term goals? Long-term goals are the desires, visions, or ambitions that people know will take some time to achieve. These goals are generally accomplished in the future. The timeline varies from a few years to several years as the long-term goals cannot be achieved in a day, month, or even one year.  Long-term goals can be professional or personal goals like a young man of 20 wanting to become a manager at the age of 30, marrying and settling down by the age of 35, taking a break and traveling for six months by the age of 40, setting up an education corpus for a child or planning the retirement fund. Benefits of long term goals 1. Gives direction Without long-term goals, individuals will only think about the present and not think about the future, which as everyone knows is quite unpredictable. Suppose an individual is earning INR 40,000 per month and does not have any long-term goals. He will then spend most of his salary without worrying about future consequences. What happens if he suddenly falls ill or he requires a lump sum amount in the future? Long-term goals give direction, help people to think ahead, and make provisions accordingly hence they are beneficial in both personal and professional life.  2. Key to changing your life Long-term goals act as a key to changing your life. Every person has a vision for a bright future. The benefit of long-term goals is that it works as the inspiration behind the goals that motivate and urge to make dreams a reality. Once the goals are set people often are encouraged to reach the end of the road by any means. They are no longer afraid of the difficulties in their path instead are driven to reach their goals.  3. Motivational tools  A long-term goal is an important motivational tool that gives the individual a focus point. When you have set a long-term goal then you have a target to achieve and it becomes easy to work for and towards it with complete dedication and determination.  4. Increases self-confidence Long-term goals inspire a better future and help you to see what you want and what you can achieve in the long run. Measurable and specific long-term goals encourage a positive mindset, help to avoid procrastination, and increase productivity. All these factors at the end of the day boost the self-confidence of a person.  5. Gives purpose to everyday actions Setting up goals is not an easy task nor is moving towards it with complete dedication but once you set up long-term goals they can persuade a person towards his end goal. Long-term goals give purpose to everyday actions and urge an individual to move forward even if the daily activities seem boring.  6. Encourages organized behavior Breaking your goals into medium, short and long-term goals encourages organized behavior. It shows that the individual is capable of handling complex processes and prioritizing his objectives. Long-term goals look scary at the beginning but with time it has the power to transform your way of thinking. Individuals who set up long-term goals are seen to be more organized in their behavior and actions than people without any goals in their lives.  7. Take advantage of the full potential Setting goals requires proper planning and when a person tries to set long-term goals he has to utilize his full potential. He will have to find out his actual objective and research the best available means to reach the desired goals.  8. Helps in self-improvement One of the important benefits of long-term goals is that it helps in self-improvement. People who set up these goals have to maintain their focus if they want to achieve such goals. Long-term goals shape the direction of the thinking process and encourage people to move toward it diligently. It keeps on reminding you that you have done the hard work and only a little work remains. The scope for self-improvement is immense as you have to improve your habits and move towards the goal somehow or the other to achieve them at any cost.  9. Achieve success Long-term goals give people the time to align the necessary resources with the objectives in an effective manner. It keeps you accountable, ensures better handling, and ultimately increases the chances of success.  INVEST NOW Conclusion The benefits of long-term goals are that it gives individuals the time to get a grasp on things and achieve them at a steady pace. There is no need to overwork yourself instead people have the time to set a comfortable pace that is also achievable. Consult an expert advisor to get the right plan TALK TO AN EXPERT