Category Archives: Finance

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.

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.

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

In June 2023, the USA was teetering on the edge of a debt default. Yep, you heard it right – the land of burgers and baseball almost stumbled into a financial abyss. With a debt mountain that could make your head spin ($32.7 trillion, a whopping 121.2% of GDP), the US barely scraped by, lifting the debt ceiling just in the nick of time.  But hold onto your hats, the story didn’t end here.  Fitch, the global ratings agency, downgraded the US credit rating from AAA to AA+ on August 2nd, 2023. Now, I know what you're thinking - did this downgrade have the stock market shaking like a leaf? Yes, this news sent shockwaves through global markets, reminding us that when the US catches a cold, the world sneezes. But guess who's shrugging off this chilly breeze? India, my friends!   Here's the cool part: India isn't bothered by all this chaos. In fact, it's thriving! Morgan Stanley says India is doing great and upgraded its rating to 'Overweight'. These folks reckon India's rocking economic growth, fueled by big investments and fatter profits. The same Morgan Stanley nudged India up from 'underweight' to 'equal weight' four months back. The twist is that not too long ago, these same experts called India part of the "Fragile Five" because they thought it was a risky place to invest. So, what changed?  India is undergoing a massive transformation. It's moving from being known for things like spices and beautiful sarees to becoming a middle-class powerhouse. This kind of transformation is super rare.  In the past, countries like Europe and the USA had their moments of amazing growth after big events like World War II. That's when famous brands like Chanel, Volkswagen, and Gucci became a big deal. Now, it's India's turn to shine.  So what changed for India? Let's talk about four exciting things happening in India: More Manufacturing  India's making more stuff, and that's going to boost its economy. It might even double its share of the global market for exports.  India's Share of Manufacturing is expected to increase to 21% of GDP by 2031 Source: Morgan Stanley Growing Middle Class  More people in India are joining the middle class, which means they have more money to spend. This is going to make India's economy grow even faster.  By 2047, if political and economic reforms have their desired effect, the Indian income pyramid will have a smallish layer at the bottom comprising the Destitute and Aspirer groups, a huge bulge of the middle class, and a big creamy ‘rich’ layer on top.  Note: Population in Million; Source: PRICE’s ICE 3600 Pan India Surveys India's Income Pyramid Note: Figures in percent, 2020-21Source: PRICE’s ICE 3600 Pan India Surveys Middle-class is the country’s biggest contributor in terms of income, spending, and savings Indian consumers are also likely to have more disposable income. India’s income distribution could flip over the next decade, and consequently, overall consumption in the country could more than double from $2 trillion in 2022 to $4.9 trillion by the end of the decade with the greatest gains going to non-grocery retail, including apparel and accessories, leisure and recreation, and household goods and services, among other categories.  Going Digital  India is getting super high-tech. They've been working on a digital identity system, and this is making things like payments and healthcare more accessible and affordable for everyone.  Over ten years ago, India started a cool project called Aadhaar. It's like a super secure ID card that uses your unique body features to prove who you are and where you live. Now, we have something called IndiaStack which is like a toolbox for all things digital. This toolbox helps people in India do things like spending money, getting loans, and even accessing healthcare more efficiently. IndiaStack is like a magic wand that's making digital life in India more convenient and affordable for everyone.   Energy  India is improving its energy system, and a lot of it will come from clean sources like wind and solar power. This is not only good for the environment but also helps create new jobs and opportunities.  So, why should you care? Well, if you're thinking about the ongoing volatility in the Indian market, think again. We believe the markets are as usual, and there will be risks like anywhere else, but India's growth story is looking exciting. So, keep an eye on India's journey!  Should you wish to start your journey now, feel free to connect with us at research@edufund.in

ICICI Prudential Mutual Fund is the second-largest asset management company in India. With over Rs 5 Lakh crore, the AMC is among the most trusted names in the mutual fund space. AMC offers products across asset classes. Let us talk about the flagship product of ICICI Prudential MNC Fund. ICICI Prudential MNC Fund Investment Objective The scheme primarily aims to provide capital appreciation by investing predominantly in equity and equity-related securities within the MNC space. Investment Process This is an open-ended equity scheme that follows an MNC theme, which falls under the thematic category. It invests in growing company stocks, which are selected based on extensive research and screening. Stocks selected for investment are reviewed periodically. ICICI Prudential MNC Fund broadly focuses on three approaches: 1. Indian Multi-national Companies - Companies incorporated in India with business operations across the globe. 2. Multi-national Companies listed in India - Foreign Companies having business operations in India and listed on Indian Stock exchanges. 3. Global Multi-national Companies - Foreign Companies having business operations across the globe but not listed on Indian Stock exchanges. Portfolio Composition The equity exposure is majorly in large-cap securities at 55%, followed by mid-cap and small-cap at 34% and 11%, respectively. The funds are invested across all the sectors without any specific sector being given more importance. The top 5 sectors hold nearly 53% of the portfolio. Note: 31st July 2023 Source: ICICI Pru Top 5 Holdings for ICICI Prudential MNC Fund NameSectorWeightage %Maruti Suzuki India LtdAutomobile8.70%Sun Pharmaceutical Ltd.Healthcare5.76%Infosys Ltd.Technology4.67%Hindustan Unilever LtdFMCG4.64%Bharti Airtel LtdTelecom Services4.12Note: Fund Performance since launch. Date: 17th June 2019Source: icicipruamc.com Invest in ICICI Mutual Fund Performance Since Inception Returns of ICICI Prudential MNC fund-Growth Option as of 30th June 2023. Particulars1 Year3 YearSince InceptionScheme20.4628.7920.20Nifty MNC TRI25.3419.8315.55Nifty 50 TRI 222.9124.5414.47Note: Fund performance since launch; Inception Date:17th June 2019.Source: icicipruamc.com The fund has given consistent returns and has outperformed both the benchmarks over the longer time horizon. If a person had invested Rs. 10,000 at the scheme's inception, it would now be valued at Rs. 21,020 against Rs. 17,923.78 in the NIFTY MNC TRI. Fund Manager The fund is ably managed by Roshan Chutkey, who has 28 years of experience and manages five funds in total. Who should invest in ICICI Prudential MNC Fund? Investors who aim to invest in a portfolio that invests primarily in securities within the MNC space and achieve goals like Wealth Creation. Why invest in ICICI Prudential MNC Fund? · High Quality & diversified portfolio: The scheme provides endeavors to invest in high-quality multi-national companies. · Flexibility: The scheme has the flexibility to invest across market caps and follow a sector-agnostic approach. · Bottom-up stock selection: The scheme follows a bottom-up approach while selecting stocks. Time Horizon · One should look at investing for a minimum of five years or more. · Investment through a Systematic Investment Plan (SIP) may help tackle broader equity market volatility. Conclusion ICICI Prudential MNC Fund provides access to well-researched multi-national companies, which are an integral part of the global economy and can navigate challenging market conditions with relative ease. The fund has consistently performed and has outperformed its benchmarks in the long run. Hence, investors seeking to invest for a long-term time horizon to generate high returns with higher risk can consider this fund

HDFC Asset Management Company Ltd. (HDFC AMC) is one of India's largest mutual fund companies. It is among one of the most profitable asset management companies (AMC) in the country. The company manages assets of over Rs. 4.8 Lakh crores (excluding domestic fund of funds) as of 30th June 2023. https://www.youtube.com/watch?v=qy_EsYNTJU4 HDFC Multi-Asset Fund Investment Objective The objective of the Scheme is to generate long-term capital appreciation/income by investing in a diversified portfolio of equity & equity-related instruments, debt & money market instruments, and gold-related instruments. Investment Strategy Equity - The Fund follows a model whereby equity allocation is decided by factors such as TTM P/E, 1 Year Forward P/E, TTM PB, Earnings Yield/ G-Sec Yield, etc., with monthly rebalancing. Arbitrage - The Fund seeks to generate income through arbitrage opportunities. The arbitrage allocation ensures the fund is equity-oriented. Arbitrage allocation reduces the impact of equity drawdown. Debt - The Fund seeks to generate income by investing in debt securities based on credit quality, liquidity, interest rate, and outlook. Portfolio Composition The fund holds 54.07% equity, 13.29% debt, 13% commodities, 3.31% real estate, and 16.8% in Cash and cash equivalents. The significant sectoral exposure is to Financials, which account for over 16.68% of the equity portfolio. The top five sectors hold more than 34% of the equity portfolio. Date: 31st July 2023 Source: Value Research HDFC SIP Calculator Top 5 Holdings for HDFC Multi-Asset Fund NameWeightage %HDFC Gold ETF12.76%HDFC Bank6.26%ICICI Bank4.29%Axis Bank4.2%Bharti Airtel2.26%Date: 31st July 2023 Source: Value Research Invest in HDFC Mutual Fund Fund Managers for HDFC Multi-Asset Fund Currently, the HDFC Multi-Asset Fund is managed by the following fund managers. Mr Bhagyesh Kagalkar (Since 2nd February 2022): Collectively over 28 years of experience in Equity Research, investments, and Finance. Mr Srinivasan Ramamurthy (Since 13th January 2022): Collectively over 15 years of experience in equity research and fund management. Mr Anil Bamboli (Since 17th August 2005): Collectively over 28 years of experience in Equity Research, investments, and Finance Mr Arun Agarwal (Since 24 August 2020): Collectively over 23 years of experience in equity, debt, and derivative dealing, fund management, internal audit, and treasury operations. Mr Nirman Morakhia (Since 15th February 2023): Fund Manager and Dealer – Equities. Mr Priya Ranjan (Since 15th February 2023): Collectively, over 15 years of experience. Senior Equity Analyst and Fund Manager for Overseas Investments. Who Should Invest in HDFC Multi-Asset Fund? Investors looking to diversify their portfolio by gaining exposure to an actively managed portfolio across a variety of asset classes (like equity, gold, debt, etc.) under a single unified scheme may consider multi-asset allocation funds as a good option. However, investors should remain invested long-term to witness wealth creation. Past Performance of Regular Plan as of 31st July 2023. Full Name1Y3Y5Y10YSince InceptionHDFC Multi-Asset Fund (%)1416.0911.2911.179.89Benchmark Returns (%)14.1116.3812.4412.66NAAdditional Benchmark Returns (%)16.1822.7113.0214.5113.83 Conclusion The HDFC Multi-Asset Fund has been in existence for nearly two decades. It provides an opportunity to invest across various asset classes with the benefit of true diversification. So, investors looking to diversify their investments across various asset classes can consider this fund. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

UTI is one of the pioneers of the Indian Mutual Fund Industry. With an AUM of approximately Rs 2.4 Lakh crore, the AMC is among the most trusted names in the mutual fund space. The UTI Mutual Fund offers products across asset classes. Let us discuss the flagship product – UTI Nifty 500 Value 50 Index Fund. UTI Nifty 500 Value 50 Index Fund Investment Objective: The investment objective of the scheme is to provide returns that, before expenses, correspond to the total return of the securities as represented by the underlying index, subject to tracking error. Investment Process: UTI Nifty 500 Value 50 Index Fund follows a passive style of investing; that is, it invests in all the companies forming part of the Nifty 500 Value 50 Total Return Index (the underlying index) in the same proportion of the underlying index to earn a return as much as the underlying index, before expenses. Portfolio Composition The portfolio is biased towards large-cap stocks, with 56.21% of the fund allocation in large-cap stocks and the remaining 31.43% and 12.36% in mid-cap and small-cap, respectively. The scheme had significant exposure to the Financial Services sector, followed by Oil, Gas and consumables, and Metals & mining. Note: Data as of July 31, 2023.Source: UTI MF Invest in Mutual Fund Top 5 Holdings for UTI Nifty 500 Value 50 Index Fund NameSectorWeightage %Power Finance Corporation Ltd.Financial5.78NTPC Ltd.Energy5.42Oil & Natural Gas CorporationLtd.Energy5.18Tata Steel Ltd.Metals & Mining5.15Hindalco Industries Ltd.Metals & Mining5.12Note: Data as of July 31, 2023.Source: UTI MF Performance since Inception If you had invested 10,000 at the fund's inception, it would now be valued at Rs. 11,479, whereas the benchmark (Nifty 500 Value 50 TRI) would have fetched Rs. 11,503. Note: Performance of the fund since launch; Inception Date: July 31, 2023. Source: utimf.com Fund Manager Sharwan Goyal is the Fund Manager and Head of Passive, Arbitrage, and Quantum strategies at UTI AMC. He is a CFA Charter holder from CFA Institute, USA, and holds a post-graduate degree in Management (MMS) from Welingkar Institute of Management, Mumbai. He has over 16 years of experience in Risk Management, Equity Research, Portfolio Analysis, and Fund Management at UTI AMC. Who Should Invest in UTI Nifty 500 Value 50 Index Fund? · This fund is suitable for Investors looking for returns that are commensurate with the performance of the Nifty 500 Value 50 Index over the long term. Ideal Time to Stay Invested · Ideal for investment with a time horizon of, preferably, five years or above. · Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market. Conclusion UTI Nifty 500 Values 50 index fund is an open-ended fund that allows investors to invest in diversified companies with good growth potential. However, the fund was launched approximately three months ago, so it will be essential to monitor how the fund performs in the future. UTI Nifty 500 Value 50 Index Fund has been classified as having very high risk. Investors willing to invest passively for long-term growth and want to save on expense ratio can consider this fund. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

Introduction New Zealand boasts of a top-notch education system that is preferred by many students in the world. The world-renowned universities, unique learning environment, and academic reputation especially for bachelor’s degrees are revered by the global faculty as simply the best. Parents from all over the world, especially in developing countries like India, want to send their children to get a bachelor’s degree in New Zealand. The only roadblock to this dream is the high fee structure that most middle-class families cannot afford. Parents who are serious in their desire to send their child to New Zealand for a bachelor’s degree must try to save at least 50 lakhs so that their dream of a better future can prove fruitful. Parents who do not save for their child’s education have to take on education loans which put a lot of mental stress on the student as well as the parents. The pressure of keeping everything afloat can prove harmful in the long run hence it is better to save and invest in safeguarding your child’s future. Start Saving with EduFund Top bachelor’s degrees in New Zealand  New Zealand is a hub of an entire range of bachelor courses for both domestic and international students. Some of the best bachelor’s in New Zealand include Bachelor of Business  Bachelor of Nursing  Bachelor of Advanced Science Bachelor of Agriculture Bachelor of Law Bachelor in Arts Top Scholarships in the USA for your child Read More Cost of studying in New Zealand The cost of a bachelor's degree in New Zealand for overseas applicants is affordable compared to some of the other countries in the world. The cost of a Bachelor in Nursing degree is an estimated 51 lakhs whereas a Bachelor of Information Technology costs nearly 10.1 lakhs. Bachelor's in Law degree costs nearly 19.80 lakhs whereas a Bachelor's in Journalism degree costs INR 13 lakhs for online programs Besides the fee structure, there are also related expenses like accommodation (8,000 INR to 13,000 INR per week), traveling, food, books and study materials, etc. You can calculate the total cost that the student will have to incur after adding all the relevant expenses with the College Cost Calculator.  There are hidden expenses like health insurance, travel insurance, visa fees, and security deposit that you may have to consider before planning your child’s journey. Although the country is not as expensive as some of the other countries like the USA, UK, and Australia, compared to India it will seem highly expensive. As the course lasts from two to three years the total amount becomes considerably higher. Students can apply for scholarships but not every student desiring to get a bachelor’s degree in New Zealand can benefit from it.  Save 50 lakhs for a child’s bachelor in New Zealand Parents who are interested in saving 50 lakhs for their child’s bachelor’s in New Zealand have to take some concrete steps. These include: Start planning as early as possible as it will give you a large window to plan, invest, and save at least 50 lakhs for your child’s bachelor’s in New Zealand. It is important to set goals and keep a specific sum of money aside for your child’s education because the fee structure of reputed universities abroad is quite high. Do not get fixated on only one plan instead take the help of financial experts to know more about how, when, and where to invest for higher returns.  Look at various investment opportunities like mutual funds, fixed deposits, government-backed schemes, specially designed child endowment schemes, term plans, etc.  SIPs are the most preferred investment options in recent times as they help regular investors to accumulate funds quickly. Consult reputed investment advisors who are adept at handling the planning and investing stage. Edufund is the best platform that has reputed analysts and investment advisors attached to the platform. They help parents to plan and invest so that they can easily save at least 50 lakhs for their child’s bachelor's in New Zealand. Remember to build a portfolio of several schemes so that the money is evenly distributed and you are not dependent on any one plan.   Remember you are investing for a longer period and the compounding factor will help to gain interest on interest over time and ultimately give you more returns down the line. Choose and create a plan that you consider will reap the maximum benefit. Conclusion New Zealand boasts of a high influx of international applicants every year interested in the various bachelor courses provided by the top universities. The benefit of studying at such highly acclaimed universities and getting a bachelor’s in New Zealand is immense as they open innumerable doors of opportunities in a person’s career path. FAQs How to afford to study in NZ? There are many ways to finance your foreign studies: You can opt for scholarships, financial aid, and education loans and if you have time, you can start investing so that you have an education fund. The best way to achieve an education corpus is mutual funds. They offer amazing returns and are managed by experts so you don't have to worry about an investment strategy. If you are a parent, you can start an SIP for your child and give them enough funds to study anywhere in the world. Is New Zealand good for Indian students? Yes, New Zealand is a friendly and well-developed country with plenty of opportunities for Indian students. The country has a limited number of universities but all these offer amazing programmes and courses that can build your career. How much does MS cost in New Zealand in Indian rupees? On average, studying MS in New Zealand will cost between INR 24,00,000 to INR 35,00,000. The cost also depends on the university and program. However, there are scholarship programs available for meritorious students that can offer partial and full funding. DisclaimerMutual funds are subject to market risks, read all scheme-related documents carefully.

Mutual funds are one of the most preferred avenues for multiplying investments over the years. Hence it is important to track the performance of mutual funds for that you must understand the necessary risk elements associated with it. Mutual fund houses release the performance sheet of the funds every month. Investors should track performance by multiplying the fund units with the current NAV and adding the received dividends. Comparing this amount with initial projections helps to identify whether the ongoing mutual fund is in alignment with the set financial goals or not.  Investing in a mutual fund scheme is not the end game as it will not ensure the achievement of your investment goals. Investors must track performance and review regularly to determine whether that specific scheme can meet their investment needs adequately. Track the performances of mutual funds Different parameters and tools to track the performance of mutual fund schemes include- 1. Mutual fund ratios Mutual fund ratios like standard deviation, Sharpe ratio, alpha, beta, and concentration ratio are primary tools to assess, analyze, and track the performance of mutual funds. The numerical figures help to identify and compare vital information in simple terms so that the investors can understand the overall scheme. For example, a positive alpha means that the scheme is profitable as it has surpassed the benchmark index. Similarly, a higher Sharpe ratio signifies the potential for higher returns and encourages investors to opt for the scheme. Start Investing in Mutual Funds 2. Fund fact sheet A fund fact sheet is published by the AMC every month to show the growth of the investments. Keeping track of this report card helps investors to know how the money is allotted in different schemes, the size of the investment, and overall fund performance in terms of standard deviation, beta, CAGR, and Sharpe ratio.  The fund fact sheet lists all the schemes in an easy-to-read manner and compares the mutual funds in the same category. Investors can know about the fund’s performance and turnover compared to other schemes.  3. Historical returns One of the simplest ways to track performance is by comparing and checking the historical returns for at least 5 – 15 years. These act as viable scorecards and allow investors to check the returns over a specific period.  Investors must treat historical returns as performance indicators to look for consistency and solid fundamentals in the schemes.  A regular spike in returns shows that it is the right mutual fund for investing and a one-time occurrence acts as a red flag and urges investors to stay away from it.  How to Start Investing in Mutual Funds? Read More 4. Portfolio composition Tracking mutual funds through portfolio composition helps to check the portfolio holdings. It also helps to verify whether the stocks included in the portfolio can generate higher returns and comply with the risk profile that the investor had foreseen at the time of investing.  Portfolio composition is used to understand whether the scheme is made of quality assets and whether it can handle short-term market volatility.  https://www.youtube.com/watch?v=uYlrsx9_yog&pp=ygUHZWR1ZnVuZA%3D%3D 5. Expense ratio The expense ratio is the overall expenses incurred in the mutual fund schemes charged to the investor. It minimizes the NAV and thus has a direct impact on the returns.  A lower expense ratio means higher returns because of minimum commission or intermediary fees. Using this tracker helps to choose the funds that will give the highest possible returns.  5. Peer factor One of the simplest ways to track the performance of your mutual fund is by comparing it against peer performance.  Investors must compare the scheme in the same category to get accurate results, for example, compare a blue-chip fund like Axis Blue Chip Fund with SBI Blue Chip Fund to know which one is showing better results.   6. Benchmark performance Keep track of the investment by comparing it with the benchmark performance. Investors can know whether the fund is showing a good performance by outperforming the benchmark index or if it is a below-par investment. A higher benchmark index means lower returns and vice-versa. When a mutual fund generates more returns than the benchmark index then it is the right fund for investing.  7. Risk-adjusted returns Track performance by comparing two funds with similar returns. The risk-adjusted returns help to identify and choose the fund with less risk option. Investors should be aware that funds with low risk than the benchmark will yield low returns and more risk will generate higher returns.  8. Rolling returns Checking the average of rolling returns helps to maintain the consistency of the mutual funds. It tracks the fund’s behavior in terms of volatility, loss proportion, and outperformance.  When the rolling returns are higher than the benchmark, it means that the investment will yield better results.  9. Online portfolio trackers Online portfolio trackers help to track and monitor mutual fund investments in a hassle-free way. The online platforms provide an updated value of all the investor’s funds.  A perfect example is EduFund’s scientific fund tracker which helps to track and monitor more than one lakh data points and 400+ financial situations. The RIA-registered app uses 128-SSL security for tracking transactions in a safe environment.  Advantages of tracking the performance of mutual funds Both new and seasoned investors should track the performance of mutual fund schemes for the following reasons- The mutual fund industry assures good returns but every scheme will not give high returns. Tracking performance and comparing the different schemes help to identify and choose the best scheme with consistent returns. Tracking performance regularly helps to stay in the loop and determine whether the funds are giving the expected returns. Investors can either add more units, stay invested, or switch to profitable funds based on the performance of the fund. Understanding key investment Metrics for Mutual Funds When considering mutual funds for your child's education, it's important to assess various metrics that provide insights into the fund's performance, risk, and suitability. Here are key factors to consider:  1. Alpha: Alpha measures a fund's performance relative to its benchmark after accounting for market risk. A positive alpha indicates the fund has outperformed the benchmark, potentially adding value to your investment.  2. Beta: Beta quantifies a fund's sensitivity to market movements. A beta of 1 suggests the fund moves in line with the market, while a beta greater than 1 indicates higher volatility and less than 1 suggests lower volatility.  3. Expense Ratio: The expense ratio represents the annual fee charged by the fund to manage your investment. Lower expense ratios are generally preferable as they impact your returns over time.  4. Do a Comparison of Similar Funds: Comparing similar funds helps you identify top performers within the same category. Analyze factors such as historical returns, risk measures, and fund manager track records.  5. Rolling Returns: Rolling returns provide insights into a fund's consistency over different time periods. Look for funds with consistently positive rolling returns, indicating sustained performance.  6. Sharpe Ratio: The Sharpe ratio assesses a fund's risk-adjusted returns. Higher Sharpe ratios imply better returns for the level of risk taken. Consider funds with higher Sharpe ratios within their category.  7. Consider Market and Economic Cycles: Understand that markets and economies go through cycles. Choose funds that have shown resilience across different cycles. Funds that perform well in various market conditions might provide better stability for long-term goals.  8. Risk Tolerance: Evaluate your risk tolerance. For long-term goals like funding education, you might accept a slightly higher risk for potentially higher returns. However, ensure the risk aligns with your comfort level.  9. Investment Horizon: The time until your child's education is a crucial factor. Longer horizons can accommodate more volatility, allowing for potential recovery from market downturns.  10. Diversification: Consider funds that offer diversification across sectors and asset classes. Diversification can help mitigate risk and enhance the potential for stable returns.  11. Past Performance vs. Future Outlook: While past performance provides insights, remember that it's not a guarantee of future success. Analyze a fund's strategy, manager's approach, and economic trends.  12. Professional Advice: Consult a financial advisor who can assess your financial situation, goals, and risk appetite. They can recommend suitable funds and help tailor a portfolio to your child's education needs.  Incorporating metrics into investment decisions When selecting mutual funds for your child's education, utilize these metrics collectively. Prioritize funds with favorable alphas, lower expense ratios, and consistent rolling returns. Balance risk and reward by considering beta and Sharpe ratios. Conduct thorough research perform due diligence, and consult a financial advisor to make informed decisions that align with your child's education goals. Remember that investments carry inherent risks, and diversification is essential for managing these risks effectively.  Conclusion Investors can use the above-mentioned tools to track the performance of their mutual fund schemes. Due diligence helps to measure the profitability of the fund, conduct informed decisions, and keep hard-earned money safe. TALK TO AN EXPERT

Did you know that international students have to pay college fees on top of tuition fees to study at Cambridge University? This is why you need to save to send your child to Cambridge University. UK’s oldest and top institute with the lowest acceptance rate and skyrocketing tuition fees – getting admission at this college is not enough. From expensive tuition costs to living expenses costing £12,400 on average (11-12 lakhs yearly), the need to invest and save is urgent! Suppose, if your child goes for an MBA in this university, he or she will have to pay Rs 58 to 59 lakhs per year for tuition fees. Similarly, if your child is going for BTech or MBBS here, he or she will have to pay somewhere around Rs 33 – 58 lakhs per year for tuition fees. How do you need to save to send your child to Cambridge?  1. Preparing an education fund  Preparing an education fund helps in growing your financial corpus. You can do this by investing in financial assets which have a longer-term plan. These plans include mutual funds, ETFs, and so on. Start by deciding your monthly budget. Choose an investment plan which suits your need and budget. Make sure that you do not invest in a plan which offers low returns. ULIPs are a really good option if you are saving up for your child’s education at the University of Cambridge.   Public Provident Fund is another great option that you can go for. Parents prefer going for PPF because it provides a specific interest rate and is extremely secure. Apart from this, you must always prepare a long-term investment option.   Start Investing in Mutual Funds 2. Balanced investment options  Fixed deposits are great ways to invest but do not beat inflation. You cannot rely on them for the long term since they provide fixed returns of 5-6% while inflation in the current economy averages around 7-8%. The chances are that as an investor, you will lose the opportunity to gain from the markets.   Equity funds will be a good option for you if you start early as a parent. Around eight to ten years are required for you to build the right amount of corpus. You can go for SIPs in equity funds because they have a good return value and do not require heavy sums of money in one go.   Equity exposure until five years to the date of maturity can prove to be extremely beneficial. In the last decade, equity mutual funds have delivered an average return of 15%.   If you consider yourself a moderate-risk investor, you can still invest 60% to 70% of your total investment amount in equities. Make sure that you have a sufficiently long investing horizon so that you can counter crashes and volatility. Remember investing is risky but a good plan and a great advisor can help you manage your money better even in the worst climate.    Start Investing in US Market 3. Aggressive investment options  Equity investment leads to higher risk but also good returns. If you want to add more options to your portfolio, you can go for aggressive investments. In such a type of investment option, the investor takes on more risk to that he or she can achieve a higher potential return. Investing in stocks is a way of doing so. Although it is quite volatile and requires daily inspection, it has the potential to offer a chance for greater gains when compared to other types of investment.   Some other types of aggressive investment options are stock mutual funds, real estate investment trusts, hedge funds, emerging markets, small-cap stock funds, private equity, foreign stocks, global funds, and so on.  There are many ways to save to send your child to Cambridge but all start with smart planning for the right cost with the right experts. If you want the best for your child’s education, connect with us!  FAQs What are the fees of the University of Cambridge in Indian rupees? Tuition fees - 21.57 - 56.31 lakhs. Is Cambridge expensive for students? Ans. Yes, the University of Cambridge is generally considered expensive for students due to tuition fees, living costs, and other associated expenses. However, scholarships, grants, and financial aid options are available to help mitigate the costs for eligible students. How much does it cost to go to Cambridge for 4 years? Ans. The expected four-year cost of tuition for members of the class of 2026 who were admitted in the fall of 2022 is $71,364. The anticipated four-year cost of enrollment, including living expenses and personal fees, is $132,625.

Investment is extremely important for your child’s future. But deciding the best investment tool is tough. Let’s look at Recurring deposits (RD) vs Mutual Funds to find out which tool can safeguard the future financial needs of your child.  Both Recurring deposits and Mutual Funds have their pros and cons. Let’s understand both of them in detail. What are Recurring deposits? Recurring deposits are a monthly financial commitment that provides customers with the flexibility to invest a specific amount. It follows a proper flow of saving money with ease. This facility is provided by most of the banks and NBFCs in India whose period can range somewhere between 6 months to 10 years. Key features of recurring deposits The schemes offering recurring deposits aim to habituate people to a regular saving pattern. The amount that can be saved depends from one bank to the other and it can be as small as rs 10. The minimum period for which you can avail of the scheme is 6 months and the maximum goes up to 10 years. The interest rate will the same as that of fixed deposits offered in the same bank. Interest rates vary from 5.8% to 7.8%. It provides an additional benefit of taking a loan against the deposit which acts as collateral. You can open an RD with your bank but remember that all RDs offer a fixed interest rate and are free of risk! Start Saving with EduFund What are Mutual funds?  Mutual Fund is a popular form of investment that acts as a financial tool that collects assets from different shareholders to invest in securities like bonds, debt, equity, stocks, and so on.   Each fund has a fund manager who looks after the performance, manages the risk, and allocates the fund’s assets.   Mutual funds are great for investors who cannot actively follow market performance and manage their investments on a daily basis. The fund manager acts as a custodian of your investments and takes calculated risks to provide maximum benefits! Key features of mutual funds Mutual funds manage a portfolio that contains stocks, bonds, and other types of securities. Mutual funds invest in different markets, industries, and companies. They offer market exposure to new investors who can reap the benefits of various professionally managed portfolios at a very low cost. There are different types of mutual funds such as equity, debt, hybrid, and gift funds. Mutual funds charge annual fees and a commission for managing the portfolio which might affect your overall returns. Debt funds are relatively safer than equity funds or hybrid funds. Invest in Mutual Funds Difference between recurring deposits and mutual funds  Frequency of Investment: Recurring Deposits require the investor to be regular and pay at fixed intervals of time whereas mutual funds involve frequencies like weekly, monthly, quarterly, and so on.  Returns: The returns in recurring deposits are based on the interest rate provided by the bank. In the case of mutual funds, the returns are variable and depend on the scheme which is opted by the investor.  Investment Schemes: There exists no schemes or options in the case of recurring deposits whereas there are various schemes available if you go for mutual funds.  Market Linked: Recurring deposits offer fixed interests at regular intervals of time because they are not affected by market performance. In the case of mutual funds, lumpsum, and SIP are subject to market risks. Hence, the returns are not guaranteed or fixed. How can these financial commitments be useful for your child? If your child is young and you have a low-risk appetite, then recurring deposits can be safe play for you. You can deposit a specific amount every month in his or her name which can be helpful for their higher education. It has no risk which assures that you will receive a good corpus at the end of your savings tenure. On the contrary, mutual funds are very effective if you consider the increasing rate of inflation in the domain of education. Equity is also a good option that you can go for. However, it is advised that you start these schemes well in advance so that you can counter volatility or crashes that may arise. Talk to an Expert FAQs Are mutual funds good for child education?  Yes, mutual funds can be a suitable investment option for funding a child's education due to their potential for growth over time. However, it's important to choose funds based on your risk tolerance and investment horizon.   Which mutual fund is best for child education?  To find out the best mutual funds for your child's education savings, you need to visit EduFund. You can find class-wise mutual funds for your child's future savings. For instance, if your child is in 1st grade then there are plenty of mutual funds selected by our experts that you can invest in for their college! What is the best way to invest in a child's education?  Investing in a mix of diversified mutual funds, specifically those with a long-term growth focus, can be a strong approach to funding a child's education. Regular contributions through SIPs, starting early, and adjusting risk as the child grows older are key considerations. Consulting a financial advisor is recommended.  

The Indian government offers tax benefits on child education fees to encourage a higher literacy rate and child education in India. The tuition fees paid by a parent for their children are excluded from income tax and are subject to various benefits that you can avail of. Parents can enjoy tax benefits on their child’s education fees and additional deductions that are permitted for the same under section 80C of the Income Tax Act. Deduction for tuition payments received under section 80C The tuition fees paid to a university, college, school, or other educational institution may be claimed by parents. Transport and development fees, among other fee components, are not deductible under Section 80C. Together with the deduction for insurance, provident fund, pension, etc., the maximum deduction for payments made toward tuition fees can be recorded for up to Rs 1.5 lakh in a fiscal year. Eligibility of tuition fees for Section 80C deductions People who pay any amount or fees for their children's education may be eligible for a tax deduction under Section 80C if they meet the requirements listed below: Only an individual parent, guardian, or sponsor is qualified for this deduction. A limit of 2 children per person is eligible for the deduction. Therefore, a maximum of 4 children's deductions, or 2 for each parent, may be claimed. Every financial year, each parent may deduct up to Rs. 1.50 lakh individually. Please be aware that the parent's total deductions under Sections 80C, 80CCC, and 80CCD cannot exceed INR 1,50,000. Regardless of the class the child attends, a deduction is possible. Even if it is partnered with a foreign university, the institution, college, or university must be located in India. Only full-time education programs that have a nursery school, creche, or play school are eligible for the deduction. As an illustration, the amount that the parent pays in April 2021 for the quarter ending in March 2021 will be eligible for a deduction in the fiscal years 2021–22. A parent who is divorced or unmarried may also claim tax benefits. School costs for an adopted child are also deductible. Non-eligibility of payments toward tuition fees Payments made for development fees, charitable contributions, private coaching centers, or other expenses like mess fees, library fines, or similar payments are not eligible for the deduction. Paid tuition for part-time courses is not eligible for the deduction. The deduction cannot be used to pay for the education of yourself, your spouse, your brother or sister, your mother or father, or any other relative. This deduction does not apply to tuition fees paid to foreign universities that are located outside of India. Additional School Fees Parents Must Save For Read More Exemption for hostel and education expenses for children Employees in India are given the following exemptions*: Children's Education Allowance: Up to two children are eligible for a monthly allowance of ₹100 each. Allowance for Hostel Expenditure: ₹300 per month for each child, up to a maximum of 2. (*Only in cases when expenses are made in India following Section 10(14) of the Income Tax Act.) The Income Tax Act of many countries offers exemptions for certain expenses related to children's education and hostel expenditures. These exemptions aim to alleviate the financial burden on parents while promoting education. Taxpayers can often claim deductions for tuition fees paid for up to two children, and in some cases, for hostel expenses as well. Specific limits and eligibility criteria vary by jurisdiction. It's crucial to understand local tax laws, keep proper documentation, and consult tax professionals to ensure you're accurately availing of these exemptions within legal boundaries.  Deduction on Tuition Fees under Section 80C  Section 80C of the Income Tax Act in many countries provides taxpayers with the opportunity to claim deductions on specified investments and expenses, including tuition fees. While section 80C is commonly associated with investments like Provident Fund contributions and life insurance premiums, it also includes deductions for tuition fees paid for the education of children.  Taxpayers can claim deductions for tuition fees paid to educational institutions for up to two children. The deduction is available for full-time education, including any fees paid for play school, primary school, secondary school, and higher education courses. However, the deduction does not extend to coaching classes, development fees, donations, or other similar expenses. It's important to note that the tuition fee deduction under section 80C is part of an overall limit, which can vary by jurisdiction. Taxpayers need to be mindful of this limit and any other deductions they claim under section 80C. To avail of this deduction, individuals should ensure that they have proper receipts or evidence of payment from the educational institution. This documentation is crucial in case of any scrutiny by tax authorities. While claiming deductions can help reduce taxable income and the overall tax liability, it's recommended to thoroughly understand the provisions of section 80C and other relevant tax laws. Consulting a tax professional or financial advisor can provide guidance tailored to individual circumstances and ensure compliance with legal requirements.  https://www.youtube.com/watch?v=q_aEt61HEuk Eligibility for Tuition Fee Deduction under Section 80C:  To be eligible for the tuition fee deduction under Section 80C, taxpayers must fulfill certain criteria:  Parent-Child Relationship: The deduction is applicable to individual taxpayers who are parents or legal guardians of the child for whom the tuition fees are being paid.  Full-Time Education: The deduction is available for tuition fees paid for the full-time education of up to two children. This includes expenses for education from play school to higher education courses.  Recognized Institutions: The tuition fees must be paid to a recognized educational institution, whether in India or abroad. This typically includes schools, colleges, universities, and educational boards.  Restricted to Tuition Fees: The deduction is specifically for tuition fees and does not cover other expenses such as development fees, transport charges, or hostel fees.  Total Deduction Limit: The tuition fee deduction falls within the overall limit of deductions allowed under section 80C, which can vary by jurisdiction.  Taxpayers should ensure that they retain proper documentation such as fee receipts, admission letters, and any other relevant proof of payment. This documentation is essential in case of any tax assessment or audit. Before claiming the deduction, it's advisable to understand the provisions of section 80C and consult a tax professional or financial advisor to ensure accurate compliance with tax regulations.  Non-eligibility for Tuition Fees Deduction under Section 80C:  While Section 80C offers a deduction for tuition fees, there are certain situations where taxpayers might not be eligible to claim this benefit:  Not a Parent or Legal Guardian: Taxpayers who are not parents or legal guardians of the student for whom the tuition fees are being paid cannot claim this deduction.  Other Expenses: The deduction is specifically meant for tuition fees and does not cover expenses like development fees, transport charges, or hostel fees.  Not Recognized Institutions: If the tuition fees are paid to an institution that is not recognized as an educational institution by relevant authorities, the deduction may not be applicable.  Part-Time Education: The deduction is applicable only for full-time education. Part-time courses or self-study programs are generally not covered.  Exceeding Limit: The tuition fee deduction is part of the overall limit of deductions under section 80C. If the total of all deductions under this section exceeds the prescribed limit, the taxpayer may not be able to claim the full deduction.  It's essential to thoroughly understand the eligibility criteria and limitations of section 80C before claiming any deductions. Consulting a tax professional or financial advisor can provide accurate guidance based on individual circumstances and help ensure proper compliance with tax laws.  How to claim tax exemption for Children’s education allowance and tuition fee deductions?  To claim tax exemptions for Children’s Education Allowance and tuition fee deductions, follow these steps:  Collect Documentation: Gather receipts, fee payment proofs, and any necessary documents from the educational institution for both allowances and tuition fee payments.  Calculate Eligibility: Determine the eligible amount for Children’s Education Allowance and tuition fee deductions based on the relevant tax laws and your expenses.  Fill in the Income Tax Return (ITR): While filing your ITR, look for sections related to these deductions. In some jurisdictions, Children’s Education Allowance might be under "Other Allowances" and tuition fee deductions under "Deductions."  Enter Details: Provide accurate details of the expenses, allowances, and deductions as required in the ITR form. Double-check the information to ensure accuracy.  Attach Documents: Attach supporting documents like fee receipts and proofs along with your ITR filing. Many jurisdictions allow for electronic submission of documents.  Review and Submit: Review your ITR form to make sure all information is correct. Submit the ITR with the attached documents through the designated online portal or via your tax consultant.  Keep Records: Maintain copies of all submitted documents and ITR for future reference in case of any audit or inquiries.  Remember, tax laws and procedures can vary by jurisdiction. It's advisable to consult a tax professional or refer to the official tax authority website for specific guidelines and regulations relevant to your region.  How to claim the tax benefits on your child’s education fees? Parents can submit the school's receipt for the fee paid throughout the fiscal year to their employer. Before filing the investment proofs at the close of the financial year, parents must additionally demonstrate it in form 12BB. You must prove the number of fees paid under section 80C on the income tax return to claim the deduction for a person who is not a salaried employee under the VI-A schedule. The children's education allowance, which is a part of the wage structure, and the fees paid for the children's tuition are both separate deductions, it is vital to note this. As a result, these may be claimed individually up to the permitted maximum (given above) by the rules of the Indian Income Tax Act, 1961. You should utilize these tax benefits to reduce the cost of your children's education and lower your overall tax burden. By taking advantage of these exemptions, you can lower your tax liability and use the money you save to invest further and create a fund for your children's higher education. Therefore, as a way of increasing literacy rate and awareness, the Indian government has provided an opportunity for everyone to educate our children by exempting parents from paying taxes when it comes to our children’s tuition fees, but of course, it has its limitations. This is an attempt at national development and for us to reach new successes and explore what we can do with education. FAQs Can an unmarried person claim a deduction u/s 80C of the Income Tax Act, 1961 for school fees paid for 2 children? Yes, taxpayers can enjoy tax benefits on their child’s education fees and additional deductions that are permitted for the same under section 80C of the Income Tax Act. Is school fees eligible for an 80C deduction? Yes, school fees are eligible for tax benefits under Section 80C deduction. The amount of tax benefit is within the overall limit of the section of Rs 1.5 lakh a year. Can we get tax exemption on school fees? Yes, school fees are eligible for tax exemption under Section 80C deduction. The amount of tax benefit is within the overall limit of the section of Rs 1.5 lakh a year. How much I can claim for tuition fees? The amount of tax benefit is within the overall limit of the section of Rs 1.5 lakh a year. How do I fill my tuition fee in ITR? Salaried employees need Form 12BB to claim tax deductions for tuition expenses along with the necessary documents in support of the declaration. Self-employed or non-salaried professionals can claim tax benefits under Section 6 of the Income Tax Return (ITR) form. Can I claim a deduction u/s 80C of the Income Tax Act, 1961 for my adopted child’s school fees? Yes, it is possible to claim a deduction for adopted kids as well under Section 80c of the Income Tax Act. Can I claim a deduction under section 80C for tuition fees paid to an Indian institution for my wife’s education? No, you cannot claim a school fees deduction for your spouse under section 80c of the Income Tax Act. I and my wife both paid for the education of our one child. My wife paid 70,000 and I paid 1,10,000/- can we both claim a deduction? Yes, both parents can claim a deduction on your income tax return for the amount you paid. I am a working woman and I am paying the education fees for my husband's education. Can I claim the deduction for this? No, it is not possible to claim a deduction for your husband's education fees under section 80c.