Category Archives: Finance

PSU… We heard a lot about this after our PM Narendra Modi gave a green signal about it during a discussion on the motion of no-confidence in the Council of Ministers and since then it has never looked back. We are observing all the PSU stocks are reaching new heights every day.  PSU are closely linked to the core sectors of the economy and have been successfully able to build a strong industrial base in the country. These undertakings are majorly covered by the Government of India. Since most of the entities are owned or backed by the Government of India, it does not have the credit risk. PSUs have a long-lasting presence in India. The sector contributes around 15% of India’s GDP.  The current total market cap of the PSU companies is more than ₹20 lakh crore. PSU contributes a good amount of money regularly to the government in the form of dividends, excise duty, customs duty, and corporate tax. PSU is majorly impacted by any changes in government policies.  The valuation of stocks in our favorite capital goods, healthcare, QSR and real estate sectors discount growth for the next few years and leave absolutely no room for any disappointments. We would have had to remove such stocks from our portfolio as it would not be correct to keep such stocks for a healthy portfolio.  As the late ‘Big Bull’ Rakesh Jhunjhunwala had predicted, it has been tough for investors to ignore PSU stocks in 2022 as several of them, spread across industries in railways, banks, and defense have turned multi-baggers.  Is it time to pause investing in small cap funds? Why is PSU undervalued?  PSU stocks often trade at undervalued prices due to government policies prioritizing public welfare over investor attractiveness. Unlike private companies, government-run enterprises are not solely profit-driven.  In this context, the State Bank of India (SBI) stands as the largest PSU bank, closely followed by Punjab National Bank (PNB). However, it's not just banks; PSUs across various sectors have shown profitability. LIC, the second most profitable PSU, recorded a net profit of ₹35,997 crore in FY23, marking a remarkable 773% increase from the previous year. Additionally, companies like ONGC, Coal India, NTPC, PFC, Power Grid, and REC Ltd. consistently report impressive profits year after year.  In aggregate, the 55 stocks within the S&P BSE PSU Index, spanning sectors such as finance, power, oil & gas, capital goods, metals & mining, transport, telecom, agriculture, and more, collectively generated a net profit of Rs 3.40 trillion in FY23. This trend is evident in the performance of the S&P BSE PSU - Total Return Index (TRI), which has experienced significant growth, especially since August 2020.  Note: Daily chart of S&P BSE PSU  Period: 01/01/2013 to 01/01/2023 (10 years)  Source: bseindia.com Comparison of BSE Sensex and BSE PSU Period BSE Sensex BSE PSU 22-09-2022 to 22-09-2023 (1 year) 11.65% 34.95% 22-09-2020 to 22-09-2023 (3 years) 20.49% 39.09% 21-09-2018 to 22-09-2023 (5 years) 12.36% 10.76% Indices: S&P BSE Sensex, S&P BSE PSU (Source: bseindia.com) Why does PSU make sense now?  The Indian government has implemented a robust strategy known as the "4Rs" to fortify Public Sector Banks (PSBs). This strategy focuses on transparently recognizing Non-Performing Assets (NPAs), efficiently resolving and recovering value from stressed accounts using clear legal processes, infusing capital into banks, and instituting reforms through the PSB Reforms Agenda.  Thanks to this comprehensive approach of recognition, resolution, recapitalization, and reforms, the percentage of non-performing assets in banks has reached its lowest point in a decade, standing at just 3.9% of total advances.  Source: ap.data.gov.in How should an investor take exposure to the PSU theme?  To play the PSU theme, investors have an option to evaluate PSU Mutual Funds.   Thematic Public Sector Undertakings (PSU) Mutual Funds are a type of investment where your money is combined with that of other investors. These funds then use this pool of money to buy shares in companies owned by the government. The special thing about these funds is that they don't just invest in one type of industry. Instead, they spread your money across different government-backed companies. In simple words, PSU mutual funds put your money into shares of government-backed companies. This way, your investment becomes like a mixed bag of different PSUs from different areas. This helps spread out the risk and can be tailored to your risk tolerance and financial goals. As per rules by the Securities and Exchange Board of India (SEBI), these thematic PSU funds have to put at least 80% of your money into stocks from public sector companies.   There are different schemes that follow the PSU theme and are available for investors to consider  Fund Name SBI PSU Fund Aditya Birla Sun Life PSU Equity Fund ICICI Prudential PSU Equity Fund Category Equity Equity Equity Category Thematic-PSU Thematic-PSU Thematic-PSU Fund Age 10 yrs 8 m 3 yrs 9 m 1 yrs 1 m Fund Size ₹ 679 crore ₹ 1,246 crore ₹ 1,474 crore Returns       6 months 38.50% 36.23% 27.11% 1 year 49.06% 49.17% 33.20% 3 years 38.32% 42.27% NA 5 years 16.11% NA NA Risk Measures       Standard Deviation  20.42 20.32 NA Portfolio Allocation       Equity% 91.84% 97.75% 91.63% Debt% 0% 0% 2.02% Sectoral Allocation       Top 3 sectors Financial (30.62%) Financial (31.02%) Energy (50.69%) Capital Goods (19.66%) Energy (29.65%) Financial (22.82%) Energy (19.48%) Capital Goods (12.37%) Materials (7.18%) Expense Ratio 1.34% 0.75% 0.51% Exit Load 0.50% 1% 1% Lock-in No Lockin No Lockin No Lockin Benchmark Index S&P BSE PSU TRI Min. Investment SIP ₹500  Lumpsum ₹5000 SIP ₹500 Lumpsum ₹500 SIP ₹100  Lumpsum ₹5000 Investment Horizon Good for long-term Good for long-term Mittal Kalawadia Anand Sharma Managed By Richard D'souza Dhaval Gala Mittul Kalawadia Anand Sharma Link SBI PSU ABSL PSU ICICI Prudential PSU  Note: Direct Plan and Growth options are considered for Returns Source: EduFund Research Who should invest in it?  Opting for thematic mutual funds can be an excellent choice if you want exposure to a diversified portfolio of public sector enterprises spanning various industries. By doing so, you can enjoy the advantages of diversification while unlocking the potential for optimal returns. Additionally, for risk-averse investors, allocating funds to PSU companies is a prudent move, given their generally higher safety profile compared to other thematic sectors.  Conclusion  Public Sector Undertakings (PSUs) are experiencing a significant uptrend due to anticipated government disinvestments aimed at meeting fiscal goals. Notably, several PSU banks are exploring capital raising to safeguard asset quality. It will be intriguing to observe the outcome and the sustainability of stock prices at these heights. These mutual funds offer an attractive option for investors seeking secure investment avenues for surplus funds. They help preserve your entire portfolio while delivering consistent returns.   Invest for your kid's future!

Debt mutual funds make investments in fixed-income assets such as government securities, commercial paper, corporate bonds, and treasury bills, among others. Let’s examine the best debt investment options in India. What are debt mutual fund investments?  Debt mutual funds make investments in fixed interest-earning securities like certificates of deposits and treasury bills. A debt fund's principal goal is to build wealth by earning interest income and steadily increasing the invested capital. During the time that investors remain invested in the fund, the underlying assets produce a fixed rate of interest.  A debt fund's fund manager makes investments in assets depending on those assets' credit ratings. When debt security seems to have a better credit rating, it has a better possibility of making regular interest payments as well as principal repayments when the investment term expires. Additionally, the fund manager adjusts his investing strategy per the general changes in interest rates. Who should invest in the best debt mutual funds?  Investors who are risk-averse and not ready for equity exposure might choose debt funds. Debt funds generate wealth for investors with little to no risk. These funds are also focused on steady revenue. Debt funds are often held by investors for a short- to medium-term time horizon. Your investing horizon should be taken into consideration when selecting a debt fund.  For a short-term investor who often keeps their excess cash in a savings account, liquid funds might be a good option. Much like savings bank accounts, liquid funds allow withdrawals at any time and offer bigger returns in the amount of 7% to 9%. Dynamic bond funds can be the best choice if you ever need to ride the volatility of interest rates. With a medium-term investment horizon, these funds can provide more returns than a 5-year bank FD. Factors to consider for Investors  1. Fund goals Debt funds diversify their portfolio of different securities to maximize returns. They will behave predictably. Debt funds are available to conservative investors for this reason.  2. Fund Category  Further subcategories of debt funds include monthly income plans (MIPs), liquid funds, dynamic bond funds, fixed maturity plans (FMPs), GILT funds, income funds, credit opportunities funds, short-term funds, and ultra-short-term funds. 3. Risks Interest rate risk, credit risk, and liquidity risk are all factors that might affect debt funds. The movement in overall interest rates may cause changes in the fund's value. The issuer could miss a payment deadline for interest and principal. When there is no demand for the fund management to liquidate the underlying security, liquidity risk is there. 4. Cost To manage your investment, debt funds carry an expense ratio. No fund house may charge more than what the Securities and Exchange Board of India (SEBI) has determined as the maximum. 5. Investment Horizon For liquid funds, 3 months to a year investment horizon is suitable. You may want to look into short-term bond funds if you have a longer time horizon, like two to three years. 6. Financial Objectives Debt financing can be utilized for several purposes, including generating extra income or enhancing liquidity. Additional read: How does rating impact debt funds? How should best debt mutual funds be evaluated? 1. Fund returns Over the long term, such as three, five, or ten years, you need to search for stable returns. Select mutual funds that consistently outperformed benchmark and rival funds throughout a range of periods. To get results, keep in mind to evaluate the fund performance that corresponds to your investment horizon. 2. Funds history Select investment fund companies with a proven track record of reliable performance. Make sure they have a minimum of a five to ten-year history of reliability. 3. Expense ratio It displays the percentage of your money that is used to manage the fund. A larger take-home return results from a reduced spending ratio. Select a fund with a lower expense ratio that has the potential to perform better. 4. Financial ratios To analyze a fund, you can utilize financial ratios such as the standard deviation, Sharpe ratio, alpha, and beta. Compared to a fund with a lower beta and standard deviation, a greater beta and standard deviation fund are riskier. To find investments that offer larger returns for each additional unit of risk taken, search for funds that have a higher Sharpe ratio. Top 10 best debt mutual funds in India You must examine a fund from several angles before choosing it. The best debt funds can be found using a variety of quantitative and qualitative criteria depending on your needs. Your financial objectives, level of risk tolerance, and investment horizon should also be considered. Disclaimer: This is not investment advice. Please use it for education purposes only. Investing in debt funds can frequently become challenging. Before starting it’s always good to understand the financial risks and benefits involved in any investment. FAQs Which debt fund gives the highest return in India?   The return on debt funds in India can vary based on factors like interest rates and market conditions. It's challenging to pinpoint a specific fund that consistently offers the highest return, as returns fluctuate over time. Investors should consult with financial advisors and research different funds to make informed decisions.  Which type of debt fund should I invest in?   The choice of debt fund depends on your investment goals, risk tolerance, and investment horizon. Common options include liquid funds for short-term needs, ultra-short-term funds for slightly longer durations, and dynamic bond funds for more flexibility. Consult with a financial advisor to determine the most suitable debt fund for your specific requirements.  How can I get a 20 percent return on investment in India?   Achieving a consistent 20 percent return on investment in India can be challenging and typically involves higher risk. To pursue such returns, you may consider investing in equities or high-risk assets, but it's essential to have a well-structured investment plan and risk management strategy. For personalized advice, speak with a financial advisor.  Which type of debt funds give the highest return?   Debt funds' returns depend on various factors, including the type of bonds they invest in, their duration, and market conditions. Generally, longer-term and riskier debt funds, such as credit risk funds or long-term gilt funds, have the potential for higher returns but come with increased risk. 

Allocating funds to assets to improve your future is known as investing. Investments are undertaken to produce returns, which increase the initial amount invested. Top 7 types of investment options available in India There are many different investment options available to you. However, you must be sure that you are only investing in options that match your risk tolerance and fulfill your needs. 1. Direct Equity The most successful investment vehicle is probably direct equity, sometimes known as stock investing. Purchasing stock in a firm entitles you to a part of that business. The expansion and improvement of the business are directly financed by you. To profit from your investment, you must have enough time and market understanding. Stocks are made available by publicly traded firms through recognized stock exchanges. The best investments for the long run are stocks. Due to the impact of various economic and commercial factors on equities, you must actively manage your investments. Additionally, you must be aware that the returns are not ensured and be prepared to accept the risks involved. Benefits and Types of Equity Mutual Funds Read More 2. Mutual Funds The last few decades have seen the development of mutual funds. A mutual fund pools investments from different institutional and individual participants who share the same investment goal. A financial expert known as the fund manager oversees the pooled funds and makes investments in securities and other assets to maximize returns for investors. Equity, debt, and hybrid funds are the three main categories of mutual funds. Debt mutual funds invest in bonds and papers, whereas equity mutual funds invest in stocks and instruments relating to the stock market. Equities and debt instruments are both invested in by hybrid funds. Mutual funds are adjustable investment products that allow you to start and stop investing whenever you like. Since the fund manager takes care of everything, investing in mutual funds doesn't require much time or expertise. To invest in mutual funds, all you need to do is invest and the fund manager will take care of the portfolio construction. However, it is advised to only invest in funds whose risk profiles and goals align with your own. Returns are not guaranteed because they are based on market fluctuations. Please take note that a fund's previous performance does not guarantee future results. Start Investing in Mutual Funds 3. Recurring Deposits Recurring Deposit (RD) enables investors to make a fixed monthly investment and receive a fixed rate of interest. RDs are available through bank and post office branches. An RD enables investors to make small monthly investments to build capital over a predetermined time. RDs provide total capital protection in addition to returns that are ensured. 4. Fixed Deposits FDs are a type of investment that banks and other financial institutions offer. You deposit a sum of money for a set period and receive a fixed rate of interest. Fixed deposits, as opposed to mutual funds and stocks, provide total capital protection and guaranteed returns. However, since the returns stay the same, you make a compromise. The interest rate on fixed deposits varies based on the state of the economy and is set by the banks per the RBI's policy review decisions. Although fixed deposits are traditionally locked-in investments, investors are frequently permitted to use them as collateral for loans or overdraft facilities. There is also a fixed deposit with tax benefits that has a 5-year lock-in. 5. Employee Provident Fund One of the retirement-focused investment vehicles is the EPF, which enables salaried people to benefit from a tax credit under Section 80C of the Income Tax Act of 1961. EPF deductions are normally made as a percentage of an employee's monthly pay, and the employer also contributes an equal amount. The EPF withdrawal corpus is completely tax-free once it matures. Each quarter, the Indian government also sets the EPF rates and offers a guarantee on your EPF deposits. You should be aware that your EPF account matures only after you reach retirement and that you may only access your assets in the EPF if you meet certain requirements. 6. Public Provident Fund PPF is a 15-year lock-in investment vehicle that offers long-term tax savings. The Indian government is the one who is offering it, and the government guarantees back your money. The Indian government reviews the PPF interest rate every three months. After 15 years, the investor can withdraw the full corpus completely tax-free. PPF permits partial withdrawals and loans as well, provided a few requirements are satisfied. If certain requirements are met, premature withdrawals are allowed, and when your investment reaches maturity, you can prolong it for an additional 5 years. 7. National Pension System A relatively recent investment option for reducing taxes is the National Pension System (NPS). Investors who subscribe to the NPS plan must remain locked in until retirement and can expect larger returns than those from PPF or EPF. This is so because the NPS provides plan options that also invest in stocks. A portion of the NPS maturity corpus, which is not tax-free, must be used to buy an annuity that will provide the investor with a regular pension. Only 40% of the total accumulated corpus may be withdrawn as a lump sum; the remainder is invested in an annuity plan. There are some government personnel who must subscribe to NPS. FAQs What are the 3 main types of investments? Stocks, bonds, and real estate are the three basic types of investments. Stocks represent ownership in a company, bonds are debt securities, and real estate involves owning property for potential income or capital appreciation. What are the six types of investments? The six types of investments encompass stocks, bonds, real estate, mutual funds, commodities (e.g., gold or oil), and alternative investments (e.g., hedge funds or cryptocurrencies). Each type offers varying levels of risk and potential returns, catering to different investment goals and preferences. What is investment and its types? Investment refers to the allocation of capital with the expectation of generating a return or profit over time. Types of investments include financial assets like stocks and bonds, tangible assets like real estate, and alternative investments like commodities or cryptocurrencies. Conclusion You should carefully select investments after conducting a thorough study. Avoid falling into schemes that promise big profits quickly, and always periodically evaluate your mutual fund and stock investments. Take into account the tax consequences of the investment returns you receive. Maintain simplicity and stay away from complex assets that you are unfamiliar with. If you have any questions or need any advice, our team of expert financial advisors is always available to you.

Should your child opt for Health Insurance while studying abroad? Health insurance is a mandatory requirement for many colleges abroad. Every student planning to study in Australia requires a health plan to get student visa approval. But what is health insurance? Health insurance pays for doctors and additional medical expenses if you fall sick or injured. It can provide you with a financial backup in case of medical emergencies. What is Student Health Insurance? Student Health Insurance is similar to a medical insurance plan that we create for medical emergencies. It is specifically designed for students pursuing their international education and offers financial security to students in case of any medical emergency. Contrary to the belief that student health insurance is expensive, it is quite affordable and can be customized to your budget and needs. It offers a variety of benefits and covers various pre and post-hospitalization costs.  What are the benefits of Student Health Insurance? Option to customize your plan according to your needs and college requirements.  Access to top medical facilities  Access to an extensive range of hospitals and instant cashless claim settlements. Option to select an extended 2-year health insurance covering the entire period of studies.  Easy online renewals for up to 3 months without waiting for policy expiration. No health check-up is required to apply.  Features of Student Health Insurance Plan Let’s look at the features of the Student Health Insurance Plan.  Hospitalization Coverage: Some hospitals offer pre and post-hospitalization costs of up to INR 50,000 in case of any untoward accident.  Comprehensive package: You get a high coverage limit of up to INR 1,00,000 at a nominal price when you buy insurance.  Education Coverage: In the event that the parent who was funding the child’s education passes away in an accident, the policy will cover the expenses of the education. This feature is of utmost importance considering the unpredictable situations in life, especially after COVID-19.  Multiple Payment Options: You get multiple options to pay for your child’s health insurance. For example online account transfer, UPI, mobile wallets, debit card, credit card, etc.  Let’s take a look at what is included and excluded in a Student Health Insurance Plan.  Inclusions Pre and Post hospitalization expenses in case a student meets with an accident. Covers Out Patient Department (OPD) expenses which are restricted to fractures, dislocation of bones, and contused lacerated wounds.  In the event of the accidental death of the earning parent, the policy pays a substantial amount to the college/ institution ensuring continuity of the child’s education.  Exclusions The policy does not cover the treatment of sexually transmitted diseases such as HIV, or AIDS.  Pre and Postnatal care and sports injuries are not covered in the policy.  Some plans do not cover dental and vision treatments. Treatment of pre-existing illnesses and self-inflicting injuries are not covered in the policy.  How to apply for Student Health Insurance? For students studying in Canada, they can either take private insurance or their school/ institution provides insurance to cover their study period.  The Australian government has designed Overseas Student Health Cover (OSHC) for international students to cover their medical and hospital care while studying in Australia. These are provided to students who don't have access to Australian Public Health Care - Medicare.  There are 4 easy steps to get an insurance plan.  Fill out the application form on the insurer’s website. Upload the required documents. Pay the premium amount online. Download the insurance policy instantly.  How to claim Student Health Insurance? Claiming a Student Health Insurance is hassle-free as well.  Register your claim with your insurer Upload the supporting documents or medical bills.  The insurer will assess your claim. It usually takes some time to decide on your application and you can either check it online or contact your insurer for an update. Why student health insurance is essential for your child studying abroad? 1. Pays for medical emergencies  Medical treatments in foreign nations can be expensive. Apart from the cost of education, you have to bear the burden of paying for your child’s medical expenses. With a health insurance plan in place, there is no need to worry about expensive medical treatments. Even something as minor as a chipped tooth can add hundreds of dollars to the bill in countries like the USA or Canada. Thus, having proper health insurance will help your child tackle medical emergencies effectively without hurting your pockets.  2. Get financial protection from unexpected situations  Parents typically think that the premium of health insurance is an additional expense when their child studies abroad. However, in exchange for the premium, the insurance company pays for all the medical expenses. In simple words, your child is better protected from unnecessary costs with health insurance. Moreover, with health insurance, your child will get timely access to quality healthcare. There is no need to defer treatment when your child has a proper health insurance plan.  3. Get access to additional coverages  Most health insurance plans for students studying abroad offer additional coverage. Hence, your child insured by a health insurance plan will get extra coverage. For instance, they will get coverage for lost luggage, political evacuation, personal liability, etc. In most cases, your child will get financial assistance for lost passports. You should always ensure that your child is insured by a proper health plan to guard against unforeseen situations in a foreign land.  How Single Parents Can Plan Finances? Read More How to choose the best health insurance plan? Before selecting a particular policy, you should consider the scope of coverage offered by the insurance provider. This should include a waiver of tuition fees in case of long-term absence emanating from medical conditions and expenses due to unforeseen situations.  With a proper health insurance plan for your child, you’ll be able to retain your saving-corpus during any emergency. Here are some ways in which you can select the best health insurance for your child studying abroad:  1. Network Hospital  Insurance agencies offer cashless hospitalization in case your child gets admitted to any of the listed network hospitals. Hence, before applying for the health insurance plan, thoroughly check with the insurance company.  Check whether they provide cashless hospitalization in the country where your child will study. In most cases, it is always advisable to opt for a health insurance policy where the insurance company has a vast chain of networked hospitals in many foreign countries. During any type of medical emergency, it will be easier for your child to get the right treatment.   2. Waiting periods  No doubt, waiting for something is stressful. And when the context is about waiting for the benefits of a student health insurance plan, it can be annoying for your child. Note that all student health insurance policies have a specific waiting period.  The waiting period is the prohibited time when your child cannot claim any benefits. In this period, the insurer won’t settle the claim filed by your child. For instance, the initial waiting period gets activated after thirty or sixty days once you buy the insurance plan.  In this time period, your child cannot file claims, except for accidents. Hence, while choosing an insurance coverage plan for your child studying abroad, always consider the waiting period.  3. Know the sub-limits of the health insurance plan  While opting for a health insurance plan for your child studying abroad, always be aware of the sub-limits. Sub-limits are conditions where the insurer won’t offer complete coverage.  It implies that the insurer will cover expenses only up to a specific limit and the amount above this limit shall be paid by you or your child. If you don’t want your child to have unpleasant surprises while studying in a foreign land, always opt for health insurance that doesn’t contain sub-limits.  FAQs How to get Health Insurance from abroad for my child’s international education? Insurance policies cost 5 to 6 times more if purchased from abroad. They cost much cheaper in India. What is the minimum age requirement for Student Health Insurance in India? The age is generally around 18 years, however, it will depend on the insurance service provider. Can students claim Tax benefits for Student Health Insurance premiums? Yes, students can claim tax benefits under Section 80D of the Income Tax Act. Is Student Health Insurance mandatory? Yes, since it is a prerequisite in many universities. How much does a Student Health Insurance Policy cost? A Student Health Insurance in India for INR 5,00,000 coverage will cost you approximately Rs. 447 per month. The amount varies with different insurance service providers.

Investing in mutual funds is a smart way to grow your wealth and potentially beat the rising costs of college education. With a variety of top mutual funds available, it's important to choose the ones that align with your financial goals and risk tolerance. In this guide, we'll explore the top mutual funds for different investment needs, from long-term growth and SIP to high returns and dividends. We'll also answer common questions about the safety of mutual funds and how they compare to fixed deposits (FD). Top Mutual Funds to Invest Here are some of the best mutual funds to invest in 2023 for your kid’s future. Top Mutual Funds to invest in 2023Sr. No.CategoryScheme Name1Large CapCanara Robeco Bluechip Equity Fund2Mid CapAxis Mid Cap Fund3Small CapSBI Small Cap Fund4Small CapTata Small Cap Fund5Large and Mid-CapKotak Equity Opportunities Fund6Flexi CapHDFC Focused 30 Fund7Multi CapHDFC Multi Cap Fund8Aggressive HybridSBI Equity Hybrid Fund9Conservative HybridICICI Prudential Regular Savings Fund10Dynamic Asset AllocationHDFC Balanced Advantage Fund Important Note: This is not investment advice. Please do not invest in these mutual funds without proper financial consultation and review. Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. Start Investing in Mutual Funds Top Mutual Funds for SIP (Systematic Investment Plan) These are some of the top mutual funds for SIP in 2023 to consider for your kid’s future college fund: 1. HDFC Equity Fund Category: Equity Large Cap SIP Returns: This fund has a strong track record of delivering consistent returns over the long term. 2. Mirae Asset Emerging Bluechip Fund Category: Equity Mid Cap SIP Returns: Known for its potential to generate high returns over time, ideal for those with a longer investment horizon.Note: This is not an investment advisor. Please consult your financial advisor before investing in mutual funds. Mutual funds are subject to market risks. Read all scheme-related documents carefully.                               Top Mutual Funds High ReturnsSr. No.CategoryScheme Name1Small CapNippon India Small Cap Fund2Small CapAxis Small Cap Fund3Small CapTata Small Cap Fund4Mid CapPGIM India Mid Cap Opportunities Fund5Mid CapKotak Emerging Equity Fund6Mid CapSBI Magnum Midcap Fund7Flexi CapParag Parikh Flexi Cap Fund8Flexi CapCanara Robeco Flexi Cap Fund9ContraSBI Contra Fund10ValueICICI Prudential Value Discovery Fund Important Note: This is not investment advice. Please do not invest in these mutual funds without proper financial consultation and review. Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. Top Mutual Funds for High Returns  These are some top mutual funds for higher returns that parents can use to pay for their child’s future college plans. Remember staying invested for a long time can help you yield higher returns. 1. Aditya Birla Sun Life Small & Midcap Fund Category: Equity Small Cap High Returns: This fund has historically provided high returns, but it comes with higher volatility. 2. Axis Long-Term Equity Fund Category: Equity ELSS (Tax-saving) High Returns: Offers the dual benefit of potentially high returns and tax savings under Section 80C.Note: This is not an investment advisor. Please consult your financial advisor before investing in mutual funds. Mutual funds are subject to market risks. Read all scheme-related documents carefully. Top Mutual Funds with DividendsSr. No.CategoryScheme Name1Dividend Yield FundAditya Birla Sun Life Dividend Yield Fund2Dividend Yield FundHDFC Dividend Yield Fund3Dividend Yield FundICICI Prudential Dividend Yield Equity Fund4Dividend Yield FundLIC MF Dividend Yield Fund5Dividend Yield FundSBI Dividend Yield Fund6Dividend Yield FundSundaram Dividend Yield Fund7Dividend Yield FundTata Dividend Yield Fund8Dividend Yield FundTempleton India Equity Income Fund9Dividend Yield FundUTI Dividend Yield Fund Important Note: This is not investment advice. Please do not invest in these mutual funds without proper financial consultation and review. Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. Top Mutual Funds with Dividends Consider these top mutual funds that offer dividends to their investors 1. ICICI Prudential Dividend Yield Equity Fund Category: Equity Dividend Yield Dividend Focus: Seeks to provide regular dividends while aiming for capital appreciation. 2. Franklin India Equity Hybrid Fund Category: Hybrid Equity-oriented Dividend Focus: Balances equity and debt investments, making it suitable for regular income.Note: This is not an investment advisor. Please consult your financial advisor before investing in mutual funds. Mutual funds are subject to market risks. Read all scheme-related documents carefully. Top Mutual Funds for Long-Term Investment 1. SBI Bluechip Fund Category: Equity Large Cap Long-Term Potential: Known for its stability and potential for wealth creation over the long haul. 2. Kotak Standard Multicap Fund Category: Equity Multicap Long-Term Potential: Offers flexibility to invest across market caps for sustained growth. Note: This is not an investment advisor. Please consult your financial advisor before investing in mutual funds. Mutual funds are subject to market risks. Read all scheme-related documents carefully. Top Mutual Funds to invest in short termSr. No.CategoryScheme Name1Short DurationTop Mutual Funds to Invest in short term2Dynamic BondICICI Prudential All Seasons Bond Fund3Dynamic BondAditya Birla Sun Life Dynamic Bond Fund4Dynamic BondSBI Dynamic Bond Fund5Dynamic BondUTI Dynamic Bond Fund6Corporate Bond FundICICI Prudential Corporate Bond Fund7Corporate Bond FundNippon India Corporate Bond Fund8Money MarketTata Money Market Fund9Liquid FundAditya Birla Sun Life Liquid Fund10Liquid FundUTI Liquid Cash Fund Note: This is not investment advice. Please consult your financial advisor before investing in mutual funds. Mutual funds are subject to market risks. Read all scheme-related documents carefully. Top Mutual Funds for Short-Term Investment  These are some of the best mutual funds for short-term investment that parents can consider for your kid’s future college plans.  1. UTI Banking & PSU Debt Fund Category: Debt Banking & PSU Short-Term Stability: Suitable for conservative investors seeking stable returns in the short term. 2. IDFC Banking & PSU Debt Fund Category: Debt Banking & PSU Short-Term Stability: Focuses on safety and liquidity, making it ideal for short-term parking of funds.Note: This is not investment advice. Please consult your financial advisor before investing in mutual funds. Mutual funds are subject to market risks. Read all scheme-related documents carefully. FAQs Are Mutual Funds 100% Safe? Mutual funds are not risk-free. They are subject to market fluctuations, and the returns are not guaranteed. However, investing in diversified funds with a long-term horizon can mitigate risks. Are Mutual Funds Safer than FDs? Mutual funds and fixed deposits serve different purposes. FDs are considered safer but offer lower returns, while mutual funds have the potential for higher returns but come with market-related risks. What Are the Top Mutual Funds to Invest in 2023? The top mutual funds for 2023 depend on your financial goals and risk tolerance. Consider consulting a financial advisor to choose the right funds for your specific needs. Thus, to beat the rising costs of college education, investing in mutual funds can be a viable strategy. Provide your child with a better future by choosing the right mutual fund. Choose funds that align with your investment horizon and risk tolerance, and consider a diversified portfolio for better risk management. Keep in mind that mutual funds carry some level of risk, so it's essential to invest wisely and for the long term.

Incorporated in the midst of the Global Financial Crisis, Quantum Mutual Fund has been in existence for approximately two decades now. The AMC offers a variety of mutual fund schemes, including equity funds, debt funds, and hybrid funds. Quantum Mutual Fund is known for its focus on active management and its commitment to providing investors with high-quality investment products. Quantum Nifty 50 ETF Fund of Fund  Investment Objective The primary investment objective of the Scheme is to provide capital appreciation by investing in units of Quantum Nifty 50 ETF - Replicating / Tracking Nifty 50 Index.  Quantum Nifty 50 ETF Fund of Fund - Direct Plan is mandated to always invest at least 80 percent of its assets in large-cap stocks. Being a fund of funds, it invests its assets in a set of mutual fund schemes instead of the underlying securities directly.  Portfolio Composition  The portfolio is biased towards large-cap stocks, with 99.65% of the funds allocated to large-cap stocks and the remaining 0.35% to mid-cap stocks. Significant sectoral exposure is to Financials, which accounts for more than one-third of the portfolio. The top five sectors hold more than 75% of the portfolio. Note: Data as of 31st August 2023.Source: quantumamc.com and Value Research Top Holdings for Quantum Nifty 50 ETF Fund of Fund Name Weightage % Quantum Nifty 50 ETF 99.97 Tri-party repo (TREP’s) 0.03 Others 0.00 Note: Data as of 31st August 2023. Source: quantumamc.com  Performance for Quantum Nifty 50 ETF Fund of Fund Particulars Since Inception 1 Year Scheme (₹) 10.95 9.46 Nifty 50-TRI (Benchmark) 11.23 10.98 S&P BSE Sensex TRI (Additional Benchmark) 11.91 11.74 Note: Returns in % as of 31st August 2023. Source: quantumamc.com Fund Manager  The scheme is managed by Mr. Hitendra Parekh who has work experience of 29.5 years. He has been managing this fund since August 5th,2022.  Who should invest in Quantum Nifty 50 ETF Fund of Fund?  The fund is suitable for investors who are seeking.   Long-term capital appreciation.  An investment opportunity that invests primarily in units of Quantum Nifty 50 ETF – Exchange Traded Fund.  Why invest in this Fund?  The fund is a first-of-its-kind Nifty 50 ETF wrapper fund.  It can identify low-tracking errors of underlying funds.  No Demat account is required.  The fund offers investors an opportunity to diversify their portfolio across top Nifty 50 in different sectors.  It gives the opportunity to start an investment with as low as ₹500.  Time Horizon  One should look at investing for at least five years or even more.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion The Quantum Nifty 50 ETF Fund of Fund is an open-ended fund that allows investors to invest in units of Quantum Nifty 50 ETF. It’s been just a year since this fund was launched. Thus, it will be important to monitor how the fund performs in the upcoming future. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

Introduction The rising cost of education is a cause of concern for parents as everyone can't afford the hefty fee structure.  Parents should look to start saving for their child’s education, especially for college and higher studies from an early age. It helps to lower the monetary burden considerably. Education fees are like any other necessary expenses that last for a considerable time, hence, parents have to prepare for them with a proper plan. College education expenses are going to be massive and the sooner a parent starts planning, saving, and investing the chance of a better future becomes more feasible. One of the best ways to do so is through regular SIPs as it will help reduce any monetary hassles during college. What is a SIP? SIP or the Systematic Investment Plan refers to the investment tool associated with various mutual funds. SIP allows investors to invest money periodically for a long period.  Additional read: How SIP Calculator Works? What should parents do for their child’s college? Parents can explore the SIP option as it is a tried and tested method of saving for a child’s college. Financial independence will help your child to get a college education without the hassle of arranging for appropriate funds. Research the funds that are performing well for a longer time and shortlist the names that show good potential. It is important to start investing in SIP as early as possible as it will give you a longer window to save more. When parents start investing early then they have a long time in hand. For example, if Mr. Sharma has been investing in his child's education for 10 years then his investment amount will be lower with greater returns as compared to Mr. Pascal who may have invested for only six years. A more extended period means less investment and more returns. Create a rough layout of the child’s future regarding education, especially college fees as it is very expensive. Invest in mutual funds that have a diversified portfolio to reduce the risk of losing money all at once. Take the help of experts in the EduFund App to make wiser and safer investment decisions.  Consider the additional expenses the child will need besides the tuition fees and save accordingly. Tax-saving benefits are attached to several mutual fund schemes that can help parents save a considerable amount through tax exemptions. Why is SIP beneficial for saving for your child’s college and future? SIPs are based on the compounding theory and prove more advantageous at the end of a specific period. The interest rates are calculated and added based on compound interest which brings forth a better investment return than simple interest.  SIPs help parents become disciplined and regular investors who are fully involved in their child’s future. In this era, where everyone is so busy, SIPs are very easy to handle. Investors are allotted units every month based on the NAV at the time of their SIP. The amount is automatically deducted from the account of the investor. SIP helps to gain control of the finances as it is possible to start or stop a SIP at a time. It helps investors to earn greater returns compared to other investment opportunities like fixed deposits. It is possible to start an SIP investment with as low as INR 100 per month, hence anyone willing to invest in their child’s future can do so easily.  Some SIPs like ELSS funds have tax benefits, hence it is doubly advantageous for the investors to invest in such schemes. Numerous asset management houses offer SIP options to meet even the minimum criteria of an investor. The most important benefit of a SIP for regular investors is that they can buy mutual fund units at different prices. The average investment premium is much lower compared to other investments. Best SIP Mutual Funds to Invest in Read More FAQsIs SIP good for college students?  Systematic Investment Plans (SIPs) can be a good investment option for college students who want to start building wealth and saving for future goals. SIPs let you invest small amounts regularly, which can help inculcate a savings habit.  How much should I invest in a SIP for my child's education?  The amount you should invest in a SIP for your child's education depends on several factors, including the future cost of education, the time horizon until your child starts college and your financial capacity. It's wise to consult a financial advisor to determine an appropriate investment amount.  Is SIP safe for students?  SIPs are considered a relatively safe investment option, especially when investing in mutual funds. However, like all investments, they come with some level of risk. It's essential to choose SIPs that align with your risk tolerance and financial goals. The risk might be reduced by varying your investments.  What is the best investment for child education?  The best investment for child education varies depending on your financial goals and risk tolerance. Common options include SIPs in mutual funds, education savings accounts, fixed deposits, and dedicated education plans. It's crucial to consider factors like the time horizon, expected returns, and risk before choosing an investment option. Diversifying your investments can also be a prudent strategy. Consulting a financial advisor is recommended for personalised guidance.  Conclusion Doesn’t SIP sound like a good investment tool to save for your child’s education? It is one of the best and the most preferred options by parents all over the world.  The Edufund App helps Indian parents plan and save for their children’s education easily and effectively. Parents can calculate the future costs of college and save towards their goals in mutual funds with the help of the SIP Calculator available. The SEBI registered investment advisor also has financial experts to guide parents in choosing suitable savings plans. Investors can choose from 4000+ mutual funds, US stocks, and digital gold, speak to experts, and enjoy tax benefits while saving for their child’s education. TALK TO AN EXPERT

I am a father and I want to save for my child's gadgets. How do I start? We have an easy solution for it! Electronics have evolved into a vital component of our day-to-day lives. It's crucial to teach your kids how to use technology responsibly in today's digitally driven world and to develop the knowledge and behaviors that will help them succeed as digital citizens. The latest gadgets for youngsters are rarely inexpensive and often appear out of reach. Are you looking for methods to save money on your child's gadgets? This article will assist you in planning your desired gadget without trying to empty your bank account. Follow these simple recommendations to keep your child's new tech costs low. Ways to save for child's gadgets 1. Start a SIP  Start a SIP plan to meet your short-term and medium-term goals. SIP allows an investor to invest a certain amount of money in a mutual fund scheme at predetermined intervals. SIP allows you to acquire units on a set date each month in order to create a savings strategy for yourself. EduFund assists parents in budgeting for electronic gadget purchases. It has a separate section dedicated to saving children’s electronic gadgets. The app also shows you different gadget options and provides you with savings plans to start saving for the gadgets on the app.  Electronic device prices have been skyrocketing, and with the Covid-19 outbreak, electronic prices are rising even further. EduFund addresses the financial needs of parents since electronic gadgets have become essential for children’s education in today's society. Start SIP with EduFund 2. Do your research Before actually buying electronic gadgets, it is essential to research. It is a good practice to look around at wide varieties and brands. Examine both offline and online retailers to gain a comprehensive analysis.  If you wait until your old equipment cracks, you'll feel compelled to purchase a brand-new one without looking around or looking for a good deal. When you browse online, you can instantly comprehend the pricing and position yourself for a good deal when it arises. Track the progress of the valuations of the gadgets you want to buy to save money on electronics. 3. Return old gadgets The need for reconditioned technology has increased exponentially in recent years. In addition to global supply chain disruptions, customers have been convinced to buy used technology owing to price considerations, environmental considerations, and the accessibility of lifetime management solutions. While purchasing new gadgets, parents should look to return their old gadgets and concentrate on a buyback offer. They can exchange old products with the purchase of new products. Useful Gadgets for Students Read More 4. Request a price match or a discount Many retailers meet their competitors' electronics market prices on the same product. If you're loyal to a favorite retailer, find out if they can fit the competition's offer. You can also participate in a membership program that will earn you points or discounted rates once you connect.  If the seller fits a competitor's offer, you could use that membership program to get electronics at a cheaper rate. If you can't obtain a comparable object for a reduced price, it Is better to negotiate.  Most traditional retailers might not provide the same benefit; however, they might be more willing to cooperate with you to make a deal and discuss electronic purchases. 5. Warranties aren't worth it Numerous parents fear their child's new phone will end up in a pool of water or, even worse. Purchase extended warranties for their electronic gadgets. Read the fine print to avoid paying extra for something you don't need - or paying large amounts for a product that doesn't even protect against water damage.  A void warranty is a waste of money and certainly cause for concern. Choose a standard complimentary warranty over an extended warranty. The advantages of gadget use Children of all ages can benefit from technology, which offers tools that encourage learning via play, let them express their creativity, and keep them socially linked. For kids under the age of five, it serves as stimulation. It can be applied to speech as well as to encourage learning. The young ones' visual representation may help them develop their senses. The use of technology to play games fosters cognitive development and analytical abilities. This encourages the child to think more creatively, strategically, and generally to be more productive. Tech-savvy children will also be more equipped for a workforce that will be largely digital. A few fundamental parenting principles will assist you in establishing ground rules and preserving technological harmony at home. Conclusion Students nowadays rely heavily on technology. These devices are critical for children as they are required to boost their learning abilities and knowledge. Nowadays, independent learning is supported since children can study without the aid of teachers. Students use the internet for research and online libraries to complete their homework. As a result, technological devices have become unavoidable in the current world. FAQs Is it good to give gadgets to children? Yes, some gadgets are good for your children. However, you should have a time limit on how long they can use the gadgets in a day. Too much usage can affect your kid's attention span and even strain their eyes. How to save for your kid's gadgets? The best way to save for your child's gadgets is to start a goal and a SIP for it. Rather than buying or taking an EMI, you can start a SIP and save for the amount. You can do all this on the EduFund App. It helps you save for your kid's education expenses like buying a phone or a laptop. How can gadgets help children? Some gadgets are known for helping kids with motor skills, learning languages, and even sharpening their spatial knowledge.

New Zealand is a popular educational destination for studying a host of subjects from Business and Management to Tourism. As per NZ immigration info, there are over 1 lakh international students studying in New Zealand. Yet, sending your child to a foreign country is not cheap. Here are some tips on how to send your child to New Zealand debt-free. Why choose New Zealand for your child’s higher education?  Top 8 universities rank in World University Ranking Top 500 Affordable cost of studying as compared to the US, Canada, and the UK It hosts a plethora of opportunities for experimental and theoretical learning Around 97% of students get placed right after the degree completion; Students on scholarships may work 20 hours as a part-time Reasons to Study in New Zealand for Child Education Read More How to send your child to New Zealand? 1. Check education eligibility criteria  New Zealand requires Indian students to have the following requirements to study at their top universities:  Relevant 12th certificate / undergraduate degree from a recognized school/ university IELTS/ TOEFL score qualifications Statement of Purpose GRE OR GMAT scores Valid passport Bank statement as proof of financial coverage 2. Apply for Student Visa  International students wishing to study in New Zealand for more than 3 months must hold a relevant VISA. Indian students can opt for Fee Paying Student VISA. Having this VISA, an international Indian Student can learn, stay, and work part-time in the country for up to 4 years. On the flip side, students planning to land with guardians can opt for a generic Student VISA. Students must apply for the VISA 6 months earlier. Student Visa Qualification Requirements Valid passport, which must be valid for at least 6 months Age - 17-25 Student Visa Application Form and Fees ( ₹14,791) Proof of funds to cover your expenses, study, and accommodation costs Acceptance letter from the University, your child enrolled to confirm the eligibility for the particular course  Evidence of guarantor and their relationship to the child Evidence of tuition fee Duly signed and attested certificates for Health and Character IELTS Score Requirement - 6.0 Top Affordable Universities in NewZealand Read More 3. Explore the government-funded scholarships  The primary criterion to qualify for a New Zealand scholarship is MERIT. However, the cost of education depends on the location, course, university, and educational level. Some universities in New Zealand consider extra-curricular activities and volunteering experience as the base for providing scholarships. Always check the eligibility criteria before applying for New Zealand Government Scholarships. Some scholarships waive 100% of the tuition fee while others may waive a part.  Apply for Scholarship with EduFund Government Funded Scholarships:  NZIDRS (New Zealand International Doctoral Research Scholarship) for Ph.D. courses. (₹12,48,178.25) for a living stipend New Zealand Development Scholarships  New Zealand Commonwealth Scholarships for master’s degrees and PhDs (₹1,49,827.16 as Allowance) NZIUFS (New Zealand International Undergraduate Fees Scholarship).  Agatha Harrison Memorial Fellowship i) University-funded scholarships for Indian students Victoria Doctoral Scholarships It is provided to all the Doctorates studying at Victoria University of Wellington ($23000 (₹11,48,827) stipend + Fees)  Bamforth Postgraduate Scholarships Post-graduate students studying at the University of Otago are eligible for the scholarship. It waives tuition fees and provides $13000 (₹6,49,172.68.) University of Waikato International Scholarships The scholarship is for all Undergraduates and Postgraduate Indian Students. It waives off $5000 (₹2,49,704.09) tuition fees. University of Auckland Doctoral Scholarships International Students pursuing a Doctoral in the University of Auckland are eligible for it. Waives off $27,300 ((₹11,48,827) plus other compulsory costs. ii) Studentships provided by New Zealand This funding type is usually provided for a specific project, covering the cost of tuition fees and research material. It also offers stipends to students. Check for the eligibility requirement from the respective university or educational institution. Universities of Auckland, Otago, and Waikato University provide such studentships to Ph.D. students.  These are some ways to help your child study in New Zealand Debt-free. Scholarships are the best way to send your child to a foreign country without any financial stress. If you are someone who is planning to send your child to a foreign country in a few years then investing and saving early for your child’s higher education is a must! FAQsHow can I send my child to New Zealand for education without incurring debt?  To send your child to New Zealand debt-free, consider applying for scholarships and grants, researching low-cost educational institutions, and saving money in advance. Explore part-time work opportunities for your child and create a budget to manage expenses effectively.  Are there specific scholarships available for international students in New Zealand?  Yes, New Zealand offers several scholarships for international students. These scholarships may be provided by the New Zealand government, universities, or private organizations. Research and apply for scholarships that align with your child's field of study and qualifications.  What strategies can my child use to cover living expenses while studying in New Zealand?  Your child can cover living expenses by working part-time during their studies, choosing affordable accommodation options, and creating a realistic budget. Encourage them to explore on-campus employment opportunities and manage their finances responsibly.  How can I start saving early to fund my child's education in New Zealand?  Begin saving for your child's education in New Zealand by setting up a dedicated savings account or investment plan as soon as possible. Consider options like mutual funds, US ETFs or any investment vehicle that can beat education inflation. Regularly contribute to this fund and take advantage of compound interest to grow your savings over time.  TALK TO AN EXPERT

Planning to teach kids about taxes? Then this blog is for you. Taxes are an integral part of human lives and every person must be aware of how to manage them from an early age. Children can understand financial concepts quite early in life and most of their monetary habits are also developed during these times. Every person on earth knows that taxes are inevitable and you cannot escape from them. So why not take a progressive step forward and understand how to teach your kids about taxes as it will prove beneficial for them in the long run? 6 basic ways to teach kids about taxes 1. Start the lessons from home The first step in how to teach kids about taxes is becoming their teacher at home and giving them lessons relevant to taxes. Some children are aware that we pay taxes, but the majority are unaware of the fact. Remember, it is the basic responsibility of every parent to make their kids aware of all the things that are relevant in their lives. Personal finance and taxes are important topics of discussion as kids should know how and why a portion of their earnings is given to the government and how it uses the said money for the welfare of its citizens. Start Investing in TAX Saving Mutual Funds 2. Start from the basics Explain the basic concepts of taxes; for example, what are taxes, and why are taxes levied on earnings? If your child has grown up, you can also discuss the various types of taxes levied by the government and related topics like income tax, property tax, sales tax, capital gains, deductions, and tax credits. Inform the kids about why taxes are important and how levying taxes helps the community on the whole. Tax Benefits on Child Education Fees Read More 3. Make it as real as possible  Make it as real as possible with the help of real-life examples because children learn more quickly when they have live demonstrations in front of them. Parents should apply the basic concept of taxes in everyday life to make the kids understand. For example, when you take your kids shopping, show them the price tag of a commodity and the price that is shown on the bill. Explain that the difference is the tax that every person has to pay the government. Familiarise your child with deductions and tax paperwork and how it impacts the total individual income. Making it real will help the child get a better grasp of the concept. https://www.youtube.com/shorts/p2Bj4VgVHgQ Source: EduFund 4. Explain why we pay taxes Teaching the kids about taxes from an early age gives them a solid foundation in the concept of finances and how to tackle the various types of taxes later on in life. Explain to them who pays the taxes and why they have to pay them. Point out the essential infrastructure that is maintained with the help of the taxes that the government levies on its citizens. Examples include parks, schools, hospitals, roads, post offices, etc. Make sure to use simple words and common examples to explain why we pay taxes so that the kids can understand the concept of taxes and the reasons behind why we pay them. Learn about Taxation in Mutual Funds Read More 5. Make it a fun game Sometimes the best way to learn about a topic is by making it into a fun activity. Parents can take the help of a simple piggy bank to explain their point. Make it a fun game as games are effective learning tools that kids can easily relate to. Whenever you pay your child’s weekly/ monthly allowance ask them to pay specific funds on allowance and expenses as tax. For instance, the child is given INR 2000 as a monthly allowance, then levy 1% tax on their total allowance. This will amount to INR 20. Ask them to deposit it in the piggy bank. Next, whenever they make an expense that is higher than INR 200, ask them to deposit INR 5 as tax.  This is a simple method that can help the kids to grasp the concept of taxes more easily. By now you must have gained a basic understanding of how to teach your kids about taxes. Take all the related points into consideration and start talking about taxes, personal finance, and how taxes impact human lives with your kids to create an engaging environment. https://www.youtube.com/shorts/wzl2t-Czh8o Source: EduFund FAQs What is a tax? A tax is a fee paid by citizens to the government that helps fund public goods and services. Why should you teach kids about taxes? Taxes are a big part of our lives. We pay taxes on the food we eat, the services we use, and the money we make. By explaining why we as citizens are responsible for paying taxes to the kids will help them become more informed and aware of the financial responsibility of every individual. It is also a good practice to help teach kids the value of money. What is the best way to teach kids about taxes? Use everyday examples to help your kids understand taxes. The income tax you pay, the toll tax on the roads, the GST on everyday items, and much more. This is a simple start to explain why we pay taxes and helps children understand the importance of money.

What does refinancing a loan mean?   Refinancing an education loan lets a new lender take over the existing loan and pay out the old lender. The new lender typically offers a lower interest rate on your loan, may offer a refinancing bonus, and provides better pay-back terms and service, making the shift attractive.    Why do students refinance education loans?   Most education loans have a tenure ranging from 5 years to 20 years. During this tenure, the loan rates may change in the market, and the current lender may not pass on the benefits of lower interest rates to the borrowers.    To ensure your education loan has the lowest interest rates, you can monitor the education loan market closely after taking the loan. Even a slight lowering of interest rates can impact the repayment tenure or per month EMI. As your child starts their career and begins to repay the loan, every small amount saved will enable them or them to repay the loan faster.    There are usually three main reasons to refinance an education loan:    To optimize the monthly pay-outs   Lower the interest rate   To change the loan tenure   Additional read: 5 ways to make getting an education loan easier for your child What are the eligibility criteria to refinance an education loan?   To refinance an education loan in India, the student should have taken the loan to pursue graduation or post-graduation degrees from well-known institutes and colleges.      The repayment process of the education loan usually begins once the student has already started earning.   Accordingly, the student should have completed the course and either could have begun the repayment process or be in the process of starting repayment.    The borrower must have a good credit history and score, with financial resources in terms of a regular salary to pay back the EMI month after month. Most lenders will also check on the other debt that the borrower may have.    Dos and don’ts of refinancing an education loan   Apply for Education Loans While refinancing an education loan, ensure you do the following:   Do due diligence before rushing in to shift the loan to a new vendor. In India, refinancing a loan may invite charges from the old and the new lender. The Old Lender typically charges a foreclosure penalty, and the New Lender has processing charges upfront that will add to the overall payout. Before deciding to shift your lender, check on the additional costs that the refinancing will incur.   Monitor the education loan market carefully. Changing rates can impact the total amount payable by you considerably. When you find the market rates dropping, you can speak to your existing lender to refinance your existing loan at the current rate or connect with a new lender for the same.    Opt for a fixed interest rate, and explore the possibility of a student loan refinancing bonus. These amounts can considerably impact young students starting out in their careers.    If your child’s refinancing application has been rejected initially due to low salary / insufficient funds, a promotion or salary increase can make them eligible later. Ensure your child uses these career developments smartly to refinance the education loan.    Instruct your child not to default on the student loan as it impacts the individual’s credit score in the long run. Poor loan repayment habits will affect their chances of getting a refinance and even new loans in the future.    To see how a change in interest rates will affect the monthly pay-out and tenure of your education loan, check out our Loan Calculator. This will help you understand the benefits of having the education loan refinanced.    If your refinance application is rejected for any reason, you will do well to start saving money through our various investment options and build your own corpus to settle the education loan at the earliest. Early loan repayment helps you minimize the interest you are paying and keeps your overall payout under control. FAQsIs it good to refinance student loans?  Refinancing student loans can be a good financial decision if you can secure a lower interest rate than your current loans, potentially reducing monthly payments and saving money over the loan's lifetime. However, it may not be suitable for everyone, so carefully evaluate your situation before deciding.  What happens if I refinance my student loans?  When you refinance your student loans, you basically take out a new loan with different terms to pay off your existing loans. This may result in a lower interest rate, a different repayment term, and a new lender. It can lead to lower monthly payments, cost savings, or both, depending on the terms of the new loan.  What is not a good reason to refinance a student loan?  Refinancing may not be a good idea if you're relying on federal loan benefits such as income-driven repayment plans, loan forgiveness programs, or deferment/forbearance options. Refinancing federal loans into a private loan could make you ineligible for these valuable benefits. Additionally, if you have a low credit score or unstable income, refinancing may not yield favourable terms.  Is it beneficial to refinance a loan?  Refinancing a loan can be beneficial if you get lower interest rates, reduced monthly payments, or faster loan repayment. It can save you money and simplify your financial situation. However, the benefits depend on your specific circumstances, so it's essential to carefully assess the terms and compare them with your current loan before refinancing.  TALK TO AN EXPERT

Market volatility is a hard fact and investors must be aware of ways to protect portfolio funds in a falling market. It is possible to limit loss, lock in profits and provide stability to your investments in adverse conditions with help of viable strategies.  Stock gains are steady over time but declines are often unexpected, freefall, and sudden.  Investors must ensure that their portfolio is well-positioned at all times so that it does not hamper overall growth. Making the right investment decisions is as important as protecting the portfolio fund during turbulent market conditions. 8 ways to protect portfolio fund in falling market An economic meltdown is a fact of the investment market that can wipe out hard-earned returns, savings, and retirement funds in hours. Investors must take appropriate steps early on to safeguard their portfolio fund in a falling market, market crash, or an economic depression through preplanned steps.  Some important ways to protect portfolio fund in a falling market are discussed below- 1. Diversification of portfolio funds Diversification of portfolio funds and spreading your money across different investment categories is one of the surest measures for shielding the portfolio fund in a bear market. Investors often invest in mutual funds, exchange-traded funds, and individual stocks expecting good returns. They must have a proper plan in place to move a good chunk of the investment into safer options at short notices Sometimes, the market fall is sudden and it does not give the investor enough chance to move high-risk funds to safe horizons. Individuals should invest in a wide range of investment schemes with different levels of risk. These include stocks, real estate, precious metals, cash value life insurance, bonds, derivatives, annuities, alternative holdings, cash, etc. Additional read: Questions cosigners should ask before taking an education loan 2. Fine-tune the portfolio funds Reassess the asset allocation to determine whether the current portfolio matches your specific risk tolerance. Do not take on more risks than your capacity as it might trigger panic selling during adverse conditions and result in heavy losses. Investors should always be prepared to face a bear market hence they must fine-tune their funds to create a portfolio mix that will match both financial needs and risk tolerance. 3. Take the help of financial advisors Financial advisors often have a better understanding of the market trends than investors. They go through the available data and related information to make better predictions of both good and bad times in the market.  Use the financial consultants at the EduFund App as an effective tool for knowing about the market and for an ideal fund allocation. The app will help to meet your risk appetite by minimizing the risk profile eloquently. 4. Do not liquidate all the stocks In a falling market, it is easy to panic and liquidate all the stocks. It is a wrong move as doing so will lock the losses and prevent earnings when the market recovers. Maintain a portion of the funds in the stocks even in a falling market to take advantage of the subsequent recovery whenever it occurs.  5. Rebalance and reinvest Stock market returns vary on a yearly basis but in the long term, it tends to offer positive returns. Investors whose risk tolerance is high or who have a long period before retirement have the option of investing heavily in stocks but people close to retirement must consider gradual transferring of funds to short-term or cash bonds with less risk.  Consider risk-based rebalancing through the EduFund App to minimize losses and by reinvesting in mutual funds, REITs ETFs, etc.  6. Consider defensive picks Consider market volatility as an opportunity to buy REITs with stable dividends and strong cash flows. One viable option is the EduFund REIT+ portfolio that includes quality REITs 7. Sell call options Financial advisors recommend selling call options to protect portfolio funds and soften the blow of a falling market.  8. Stay the course Investors must realize that the bull market will always follow the bear market. The falling market is a concern no doubt but the slump will pass. This is not the time for panic selling instead stay the course and stick to your investment plan.  Consider speaking to the wealth advisors on our platform to create a recession-proof strategy that will make your investment portfolio resilient to the upcoming falling market. FAQsHow do I protect my portfolio from a market downturn?   To safeguard your portfolio during a market downturn:  Diversify your investments across different asset classes.  Consider holding defensive stocks, like utilities and consumer staples.  Keep a long-term view and abstain from rash choices.  Utilise stop-loss orders or put options for downside protection.  Investing and your emergency fund should not be combined.  How do you prepare a portfolio for a market crash?   Prepare for a market crash by:  Reducing exposure to high-risk assets before a crash.  Increasing allocation to safer investments, such as bonds or cash.  Ensuring your portfolio is well-diversified.  Continuously monitoring and rebalancing your portfolio.  Having a well-thought-out exit strategy and sticking to it.  What is the safest fund during a market crash?  The safest fund during a market crash is typically a money market fund or a short-term bond fund. These investments are known for stability and liquidity, making them less susceptible to significant value declines during turbulent market periods.  What to do with a falling portfolio?   When your portfolio is falling:  Avoid panic selling; stick to your long-term investment plan.  Reassess your portfolio's asset allocation and risk tolerance.  Consider buying more assets at lower prices (dollar-cost averaging).  Take a look at your investment plan and make any required adjustments.  Seek advice from a financial advisor if you're uncertain about your next steps.  Conclusion Ups and downs are an integral part of markets that investors must be prepared for at all costs. Seasoned investors try to keep strengthening their portfolio fund to make it more robust for an upcoming recession.  In this article, you have come to know about the various ways to protect portfolio funds in a falling market. These are tried and tested strategies that provide ample protection against market volatility so that investors can preserve and protect their investments. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Mutual funds, the stock market, and bank deposits are India's best beginner investment options. The majority of novice investors are young and just starting their careers. They will therefore be investing for the long term. Beginner investors should aim to maximize their investments as they have experience and time on their side. In this article, we will be discussing the following topics: Why should you begin investing right away? You may take full advantage of the benefits of a long-term investing horizon by starting to invest when you are young. You might use an aggressive approach to your investment methods because of your age. Even if something went wrong, you would still have ample time to recover and go on to make a profit. Therefore, the key to maximizing investment prospects is to start investing early. Investment options for beginners in India Here are some investment options for people with no background or experience in investing. These options have lower, moderate, and higher risks, and an investor can choose to invest in different investment vehicles based on their needs. 1. Bank deposits People who don't like taking risks should put money in a bank. Minimal-risk investments have equity runs, though. You should consider investing in fixed deposits assuming you have a lump sum available. The interest rates on fixed deposits are rather decent and, if invested for a long time, can return a large sum. You may invest in a recurring deposit if you can put aside a set amount regularly, such as monthly or quarterly. One thing to keep in mind is that the potential profits provided by mutual funds and the stock market never match those provided by bank deposits. 2. Stock markets Among all investment options, investing in stocks gives you the possibility to get the best returns. You may invest with a long-term investing horizon because time is on your side. By doing this, you will combat market volatility and gain long-term advantages. To invest in the stock market, you must have some market understanding, though. If not, you should avoid the stock market. Without market expertise investing in stocks is equivalent to gambling. Your investment would be worth Rs 4.75 crore now if you had invested Rs 55,000 in shares of Eicher Motors, the company that makes Enfield motorcycles, in the year 2001 ($17.50 per share). The stock market has that kind of power. Additional read: What is foreign direct investment? 3. Mutual funds If you have a long-term investment plan, you can invest in mutual funds and take advantage of the power of compounding. Additionally, you do not need to be market-savvy. Mutual funds are run by expert fund managers with a proven track record of running successful investment portfolios. You may invest in equity funds given that you are a young investor and that these are recognized for providing outstanding long-term returns. Although investing in hybrid and debt funds might reduce your profits, they are still attractive options. You can invest in an equity-linked savings plan to reduce your taxes (ELSS). With this money, you can defer up to Rs 46,800 in taxes each year as per Section 80C of the Income Tax Act of 1961. No other tax-saving investment provides the twin advantage of tax deductions and wealth building like ELSS mutual funds do. 4. Government schemes A few government programs are available for investment. The Public Provident Fund is the most well-liked government savings program (PPF). It has a 15-year lock-in period with returns of between 7% and 9% annually. Additionally, you can put money into a Voluntary Provident Fund (VPF) or National Savings Certificate (NSC) (VPF). Starting to invest early in life is the secret to being wealthy. This will provide you with the chance to build a significant amount over time, and you can rely on this to achieve different goals. 5. Savings Accounts and Certificates of Deposit (CDs): Savings Accounts and Certificates of Deposit offer low risk and are ideal for short-term goals or emergency funds.  6. Real Estate Investment Trusts (REITs): Real Estate Investment Trusts invest in real estate without owning physical property.  7. Robo-Advisors: Robo-advisors are automated platforms that create a diversified portfolio based on your risk tolerance. Starting your investment journey can help you build wealth, achieve financial goals, and beat inflation over time.  Important Considerations for New Investors:  Set Clear Goals: Establish your financial objectives and investment horizon.  Determine your level of comfort with risk by evaluating your risk tolerance.  Spread your investments among various asset types to lower risk through diversification.  Research: Learn about the investments you're considering and the market trends.  Costs: Be aware of fees, including management fees, commissions, and taxes.  Taking the long view: Investing is a marathon, not a race. Avoid reacting to short-term market fluctuations.  Emergency Fund: Have an emergency fund in place before investing to cover unexpected expenses.  Stay Informed: Keep up with financial news to regularly review your portfolio.  How Much Money is Needed to Begin Investing:  The amount of money needed to begin investing can vary widely depending on the investment option you choose and your financial goals. Here's a general overview of how much you might need to start investing in different asset classes in Indian Rupees (INR):  Stock Market: You can begin investing in stocks with as little as INR 500 to INR 1,000 if you choose to buy shares of individual companies. However, it's recommended to have a diversified portfolio, so having INR 5,000 to INR 10,000 or more is a better starting point. A lot of brokerage firms have no minimum investment requirements.  Mutual Funds: The minimum investment amount can vary depending on the fund and the fund house. It typically ranges from INR 500 to INR 5,000 or more. Some mutual funds offer systematic investment plans (SIPs), where you can invest smaller amounts regularly, often as low as INR 500 per month.  Index Funds: Like mutual funds, the minimum investment for index funds varies but is usually in the range of INR 1,000 to INR 5,000.  Savings Accounts and CDs: You can open a savings account with a minimal deposit, often as low as INR 1,000 or even less. Certificates of Deposit (CDs) may require larger amounts, typically starting at INR 10,000 or more.  Real Estate Investment Trusts (REITs): Investing in REITs often requires purchasing shares through a stock exchange, so the minimum investment amount would be like that of the stock market, varying from 500 to 5,000 or more Indian rupees.  Robo-Advisors: Robo-advisors typically have lower minimum investment requirements compared to traditional financial advisors. You might be able to start with as little as INR 5,000 or less.  Keep in mind that while these are general guidelines, the specific minimum investment requirements can vary among different providers and investment options. It is critical to conduct research and select assets that are compatible with your financial objectives and risk tolerance. Additionally, it's advisable to consult with a financial advisor before making any significant investment decisions to ensure they are suitable for your individual circumstances.  When deciding how much to invest, consider the following factors:    Your Financial Situation: Ensure you have an emergency fund and pay off high-interest debts before investing.  Investment Goals: Determine what you're investing in and your time horizon.  Risk Tolerance: Consider how much risk you're comfortable with; this can influence your initial investment amount.  Regular Contributions: Even if you start small, commit to regular contributions to your investments to benefit from compounding over time.  Costs and Fees: Be aware of any fees associated with your chosen investments; these can eat into your returns.  Starting with a small amount and gradually increasing your investments as your financial situation improves is a prudent approach. The key is to begin investing early, stay committed to your goals, and continuously educate yourself about investment options and strategies. Over a period of time, even small contributions can grow into a substantial portfolio.  FAQsWhat should I invest in as a beginner?  As a beginner, start with low-risk options like index funds or ETFs, offering diversification. These require minimal knowledge and provide exposure to the broader market.  How do I start investing if I don't know anything?   Start by educating yourself through books, online courses, or consulting a financial advisor. Then, open a brokerage account, begin with a small amount, and gradually increase your investments.  What is the simplest investment?   A savings account is the simplest investment. You deposit money, earn interest, and can withdraw it at any time without risk to the principal.  What is the smartest way to start investing?  The smartest way is to begin with a clear financial goal, assess your risk tolerance, diversify your investments, keep costs low, and invest consistently over time. Consider low-cost index funds or seek professional advice.  Conclusion There are various types of investment options in the market but only a few for people who don’t have enough knowledge to study their investments. Hence, you should compare the options available to know and find out the risks involved and whether they suit you. In any case, whenever you need advice or information regarding investment plans, reach out to a financial expert. TALK TO AN EXPERT