Category Archives: Finance

You have seen several different types of ETFs. There are some specialized ETFs that use complex strategies to deliver a return. Leveraged ETFs are one such type of specialized ETF.  What do leveraged ETFs mean? In layman's terms, it means exerting force. In ETF parlance, it means generating a multiple of returns given some return of the underlying index.   For instance, ProShares Ultra S&P 500 ETF is a leveraged ETF that returns twice the daily return of the S&P 500. If the S&P is up 2% daily, the ETF will be up 4% after adjusting the expense ratio. Conversely, if the S&P is down 1.5%, the ETF will be down 3%.  These leveraged ETFs rebalance their portfolio allocations daily. Thus, each day is considered a new day without any connection to the previous day.   Most investors confuse this leverage with more time-bound influence, as in if the S&P is up 10% in a year, the ETF will be up 20% if it's a 2x return ETF, which is entirely wrong! These ETFs work on a daily leverage basis, and in the long run, the fund will not exactly replicate the underlying index. The rebalancing of funds is done on a daily basis to generate an assured return. Continuing with our previous example, if the ProShares ETF is giving a 2x return, the ETF will have to acquire assets that are twice the value of the NAV of the fund.   As an illustration, if a fund has 100 units of securities, the fund will swap these with the counterparty for exposure to 200 units of the performing assets. This rebalancing is usually in the direction of the market.  Such leveraged ETFs can be shortly leveraged or long leveraged Long-leveraged ETFs will trace the market trend in the same direction. Short-leveraged ETFs will move on the contrary.   For example, the ProShares UltraShort S&P 500 ETF design is such that if the S&P rises 5% in a day, the ETF goes down 10%, i.e., a 2x return in opposite direction. Similarly, if the index value falls 5%, the ETF will be up 10%.  Since the rebalancing is on a daily basis, compounded growth, in the long run, doesn't resemble the development of the underlying index. Volatility in the market can severely dent the prospective gains of the ETFs, leading to severe underperformance compared to the underlying assets. For instance, if a triple-leveraged ETF loses 30%, the underlying index must have lost only 10%.   A leveraged ETF can lose its value in some tremendously sporadic cases, mainly when derivatives are part of the ETFs kitty.  Let's take some easy examples and understand how things pan out.  1. Let's take a scenario where the market is up 5% daily, and a 2x long leveraged ETF is traded. Days Daily market performance Expected index level Expected 2x leveraged long ETF level Daily ETF performance 0 0% 100 100   1 5% 105.00 110.00 10% 2 5% 110.25 121.00 10% 3 5% 115.76 133.10 10% 4 5% 121.55 146.41 10% 5 5% 127.63 161.05 10% 6 5% 134.01 177.16 10% 7 5% 140.71 194.87 10% 8 5% 147.75 214.36 10% 9 5% 155.13 235.79 10% 10 5% 162.89 259.37 10% 10-day cumulative change   62.89 159.37   2. Let's take a scenario where the market is down 5% daily, and a 2x long leveraged ETF is traded: Days Daily market performance Expected index level Expected 2x leveraged long ETF level Daily ETF performance 0 0% 100 100   1 -5% 95.00 90.00 -10% 2 -5% 90.25 81.00 -10% 3 -5% 85.74 72.90 -10% 4 -5% 81.45 65.61 -10% 5 -5% 77.38 59.05 -10% 6 -5% 73.51 53.14 -10% 7 -5% 69.83 47.83 -10% 8 -5% 66.34 43.05 -10% 9 -5% 63.02 38.74 -10% 10 -5% 59.87 34.87 -10% 10-day cumulative change   -40.13 -65.13   3. Let's take a scenario where the market is down 5% and up 5%, and a 2x long leveraged ETF is traded. Days Daily market performance Expected index level Expected 2x leveraged long ETF level Daily ETF performance 0 0% 100 100   1 5% 105.00 110.00 10% 2 -5% 99.75 99.00 -10% 3 5% 104.74 108.90 10% 4 -5% 99.50 98.01 -10% 5 5% 104.48 107.81 10% 6 -5% 99.25 97.03 -10% 7 5% 104.21 106.73 10% 8 -5% 99.00 96.06 -10% 9 5% 103.95 105.67 10% 10 -5% 98.76 95.10 -10% 10-day cumulative change   -1.24 -4.90   These are the types of results you can expect if you hold a leveraged ETF. So, an investor must not get deceived by the vocabulary of the ETF, i.e., 2x isn't the 2x that you think. Traders for making quick short-term gains have used leveraged ETFs.  Suppose an investor predicts that the price of natural gas will increase in the coming days or weeks, then investing in a leveraged ETF to enhance the return is sensible if the prediction is correct. However, if it's the other way around, he can buy some inverse leveraged ETFs to maximize his gains and thus act as a hedge to prevent potential losses.  If the prediction is wrong, the losses are magnified by such ETFs.  How do Leveraged ETFs Work?  Let’s say an investor buys shares of a 3 times-leveraged ETF for $200. If the underlying index rises 20% in a single session, the investor gains 60%, boosting the investment to $320.  Leveraged ETF resets every day for the next session. If the underlying index drops 10% the following day, the position's value declines 30% to $272.  As and when the stocks and market indexes fall or rise over time, longer-term positions in leveraged ETFs can become very challenging to hold, thanks to amplified gains and losses.  Who should invest in Leveraged ETFs? Leveraged ETFs are best for seasoned investors with a comprehensive understanding of the risks involved and how it works.  Leveraged ETFs offer an opportunity to add significant value to a trader's overall investment strategy who has an appetite for risk, significant experience, and wish to amplify daily returns in both uptrend and downtrend.  When volatility in the market increases, leveraged ETFs can be effectively used for hedging purposes. Leveraged ETFs can open up many new opportunities if the objective is to hedge your trades and enhanced returns.  Remember to research leveraged funds with caution, as losses can be magnified similarly to returns.  Proceeding with caution and doing due diligence before acting is the way to go. FAQs What is a leveraged ETF? Leveraged ETFs generate a multiple of returns given some return of the underlying index.   Who Should Invest in Leveraged ETFs? Leveraged ETFs are best for seasoned investors with a comprehensive understanding of the risks involved and how it works.  How Do Leveraged ETFs Work?  Leveraged ETFs offer an opportunity to add significant value to a trader's overall investment strategy who has an appetite for risk, significant experience, and wish to amplify daily returns in both uptrend and downtrend.  Consult our expert advisor to get the right plan for you TALK TO AN EXPERT

Thinking of buying Bitcoins? Maybe Bitcoin ETFs? But what is a bitcoin and what are bitcoin ETFs? How can you invest in bitcoins, what is the procedure and benefits? Lets find out! Bitcoin is a cryptocurrency founded by an unidentified person Satoshi Nakamoto, in 2009. This cryptocurrency makes blockchain principles its base, which enables a distributed network to maintain an immutable, decentralized ledger of transactions with no single-point failure.   Bitcoins are created through the "mining" process, using specialized computers to solve increasingly complicated arithmetic puzzles. Because this process is decentralized, buyers have appreciated the deflationary attraction of a limited and finite quantity of only 21 million bitcoins.   This cryptocurrency has enabled anonymous transactions, more efficient cross-border capital transfers, and the creation of a new digital store of value.  Since its inception, Bitcoin has been a disruptor, challenging the business practices of both traditional financial sector organizations and central banks. The Bitcoin economy is still in its early stages, with significant growth potential and associated hazards.   While trading in Bitcoin may offer huge profits in the short term, there is still a lot of ambiguity among authorities and various obstacles in safely keeping the asset across platforms.   Due to these risks, no ETFs that provide especially significant exposure to Bitcoin are currently available; however, numerous funds are in the plans. Investors can also have tangential access to Bitcoin by investing in Blockchain technology companies.  Trading in Cryptocurrencies such as bitcoin necessitates a little more effort than investing in equities, bonds, and other traditional assets. To trade in cryptocurrencies, you have to open a trading account with a crypto trading exchange. There's also the issue of storing cryptocurrency, which necessitates the usage of a crypto wallet.  Buying a Bitcoin ETF or fund that operates on a stock exchange as a workaround for these concerns allows you to keep your Bitcoin investment in the same account as your other stocks, bonds, and traditional financial products.  What are Bitcoin exchange-traded funds (ETFs)?  Bitcoin ETFs are stock exchange-traded funds that seek to track Bitcoin's performance. When you purchase an ETF, you are not buying the fundamental investment.   Instead, you're purchasing stocks in a fund that invests in or tries to replicate the performance of a particular security or index in this case, Bitcoin.  Bitcoin ETFs would merge the most significant aspects of the two most popular investments: the simplicity of engaging in an ETF and access to bitcoin, the popular cryptocurrency.  The ETFs will function similarly to other ETFs. On the other hand, Bitcoin ETFs will monitor the price of Bitcoin rather than a market index like the S&P 500 or the DJIA.  Who should buy Bitcoin exchange-traded funds (ETFs)?  A Bitcoin ETF could be an excellent alternative for those searching for a more conventional approach to investing in Bitcoin. Investing in Bitcoin directly can be challenging, as it requires determining how the asset will be kept and which exchange to use to make the transaction. Crypto futures contracts are packaged into ETFs, which removes some complexity.  The ETF structure may make it easier for certain institutional investors to enter the cryptocurrency market, which may help maintain the Bitcoin demand. Where can you get Bitcoin ETFs?  Most online brokers who sell traditional assets such as equities and bonds will be able to offer Bitcoin ETFs. Traditional exchanges trade ETFs, such as the New York Stock Exchange and the Nasdaq.  Are Bitcoin ETFs subject to regulation?  The establishment of any Bitcoin-related ETFs has proven to be problematic. The ProShares Bitcoin Strategy ETF was the first ETF linked to Bitcoin when it was introduced last October; rather than investing in Bitcoin directly, the fund employs futures contracts.   Due to various factors, the Securities and Exchange Commission is still yet to authorize ETFs that invest directly in Bitcoin.  While there are currently no ETFs that acquire Bitcoin directly, there are alternatives. Here are five things to think about  ETFAUMDescriptionGrayscale Bitcoin Trust (OTC: GBTC)$27.2 billionThis is an investment trust, not an ETF, but it's the first and largest fund tracking Bitcoin's performance.ProShares Bitcoin Strategy ETF (NYSEMKT: BITO)$1.41 billionA recent ETF launch attempts to track Bitcoin using Bitcoin futures contracts.Bitwise 10 Crypto Index Fund (OTC: BITW)$894 millionThis fund is 60% Bitcoin, with the balance invested in other cryptos.Bitwise Crypto Industry Innovators ETF (NYSEMKT: BITQ)$117 millionThis ETF invests in Bitcoin and crypto stocks.Valkyrie Bitcoin Strategy ETF (NASDAQ: BTF)$51 millionThis is a new ETF that invests in Bitcoin futures from a crypto investment firm. FAQs Are there any Bitcoin ETFs? Bitcoin is indeed a recent addition to the exchange-traded fund market (ETF). Investors can access the alluring possibilities of Bitcoin through Bitcoin exchange-traded funds (ETFs) without having to store it securely. Presently, Bitcoin ETFs could only hold equities of firms or other ETFs that have exposure to cryptocurrencies, along with Bitcoin futures contracts. Can one purchase Bitcoin ETF? Your choices are very constrained if you wish to purchase a Bitcoin ETF. The ProShares Bitcoin Strategy ETF ($BITO) is the only Bitcoin ETF that is accessible in the United States. You will require a foreign securities account because the Bitcoin ETF BTCE is listed outside of the Frankfurt Stock Exchange. What is an ETF for Bitcoin? An exchange-traded fund (ETF) for bitcoins maintains tabs on the currency market. Rather than using crypto exchange platforms, ETFs can be purchased, bought, and exchanged on standard stock market markets. Aside from the inherent volatility of Bitcoin investments, Bitcoin ETFs and funds aren't a great substitute if you want access to the world's largest digital currency.   However, choosing an ETF has advantages because it is useful as a workaround for tracking Bitcoin's performance. Consult our expert advisor to find the right plan for you TALK TO AN EXPERT

What financial barometer would you use to gauge the economy's health if you had to choose only one?  The S&P 500 is the de facto daily economic index in the United States. Even though the S&P 500 is given second billing in the financial press and receives little attention elsewhere, its significance is critical.   Let's learn about the S&P 500 in this article.  What is the S&P 500?  The S&P 500 is a stock market index that tracks the stock prices of 500 of the country's top publicly traded corporations. It covers corporations from 11 industries to represent the stock market's and economy's health in the United States.   The S&P 500, often known as the Standard & Poor's 500 Composite Stock Price Index – is one of the most used indices for tracking the performance of U.S. equities.  What companies make up the S&P 500, and how does the index stack up?  Companies need to meet some criteria in order to be in the index.   Have a market capitalization of at least $8.2 billion, which refers to the total value of the company's outstanding shares.  Be based in the United States.  Assume the form of a corporation and issue common stock.  Be listed on a U.S. exchange that qualifies. (REITs, or real estate investment trusts, are eligible for inclusion.)  Have positive as-reported earnings in the most recent quarter and during the last four quarters combined?  Due to this criterion, only the largest and most stable firms in the country can be included in the S&P 500. The list is re-evaluated and updated every quarter.  The index tracks the market capitalization of the businesses in the S&P 500 index. The entire value of all shares of stock issued by a corporation is its market cap.   It is calculated by multiplying the stock price by the number of shares issued. A corporation having a market capitalization of $200 billion will be represented twenty times as much as a company having a market capitalization of $10 billion.   As of January 2022, the S&P 500 had a cumulative market cap of $34 trillion.  Top 10 constituents by index weight in the S&P 500 CompanyStock TickerSectorMicrosoft Corp.MSFTInformation TechnologyApple IncAAPLInformation TechnologyAmazon.com IncAMZNConsumer DiscretionaryFacebook Inc AFBCommunication ServicesAlphabet Inc AGOOGLCommunication ServicesAlphabet Inc CGOOGCommunication ServicesJohnson & JohnsonJNJHealthcareBerkshire Hathaway BBRK.BFinancialsVISA Inc AVInformation TechnologyProctor and GamblePGConsumer Staples The S&P 500 sector breakdown as of January 2022 included  The S&P index performance  Without adjusting for inflation, the average yearly rate of return of the S&P 500 (that comprises dividends) has been around 10% for nearly a century. However, keep in mind that this does not guarantee a yearly return of 10% on an S&P 500 index fund.  S&P 500 milestones  The table below depicts several S&P 500 milestone events, including highs and lows and memorable occasions.  June 4, 1968100.38First time above 100Oct. 19, 1987224.84Black MondayMarch 24, 1995500.97First close above 500Feb. 2, 19981,001.27First close above 1,000Oct. 9, 20071,565.15Highest close before the financial crisisOct. 13, 20081,003.35Largest % gain of 11.6%Aug. 26, 20142,000.02First close above 2,000Sept. 21, 20182,929.67New record highFeb. 19, 20192,779.76New record highJuly 12, 20193,013.77First close above 3,000March 12, 20202,480.64Largest % decline since Black Monday entered bear marketMarch 23, 20202,237.40Stock crash lowAugust 18, 20203,389.78New record high end of a bear marketAugust 28, 20203,508.01Closes above 3,500April 1, 20214,019.87Closes above 4,000Oct. 13, 20214,519.63Closes above 4,500 How to invest in the S&P 500 index?  You don't have to buy all 500 stocks in the S&P 500 to invest in the index. Investors can also trade in individual equities directly.   Investors can choose from various index funds and exchange-traded funds (ETFs). These funds track the S&P 500 index's performance this is, in fact, one of the most effective strategies for novice investors to get their toes wet in the financial markets.   Some popular S&P 500 index funds Vanguard 500 Index Investor Shares (VFINX)  Fidelity 500 Index Fund (FXAIX)  Schwab S&P 500 Index Fund (SWPPX)  T. Rowe Price Equity Index 500 Fund (PREIX)  Some popular S&P 500 ETFs SPDR S&P 500 ETF (SPY)  iShares Core S&P 500 ETF (IVV)  Vanguard S&P 500 ETF (VOO)  SPDR Portfolio S&P 500 ETF (SPLG)  FAQs What is the S&P 500 in simple terms? S&P 500, or Standard and Poor’s 500, is a stock market index that tracks 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices. What is the S&P 500 and how does it work? S&P 500 is one of the most commonly followed equity indices in the United States. The index tracks 500 large companies listed on the stock exchanges. The S&P 500 is a free-floated weighted index. It is calculated by multiplying the stock price by the number of shares issued. What is the difference between S&P 500 and S&P 500 index? The S&P 500 index and the total stock market index fund represent US stocks only. While S&P 500 index tracks only large-cap stocks, the total stock market index includes small, mid and large-cap stocks. What does S&P 500 index include? The S&P 500 is a stock market index that tracks the stock prices of 500 of the country’s top publicly traded corporations. It covers corporations from 11 industries to represent the stock market’s and economy’s health in the United States. Consult an expert advisor to find the right plan for you TALK TO AN EXPERT

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant. The family behind DSP has been very influential in the growth and professionalization of capital markets and the money management business in India over the last one-and-a-half centuries. Let us talk about the flagship product – DSP Equity & Bond Fund. DSP Equity & Bond Fund  - Investment objective The primary investment objective of the Scheme is to seek to generate long-term capital appreciation and current income from a portfolio constituted of equity and equity-related securities as well as fixed-income securities (debt and money market securities).  - Investment process   The DSP Equity & Bond Fund invests in a good mix of equity & debt instruments, trying to deliver equity-like returns with a slightly lower risk profile. The equity portion is well diversified across multiple sectors & different-sized companies while the debt portion is mostly in highly rated debt instruments with shorter-term maturity profiles  - Portfolio composition  The portfolio has an equity exposure of 65%+ while debt exposure is kept at less than 35%. The major equity exposure is around 62% in a large cap. The top 5 sectors hold nearly 43% of the portfolio, with major exposure to the banking and finance sector. Note: Data as of 30th Sep 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: dspim.com  Top 5 holdings Name Sector Weightage % HDFC Bank Ltd. Bank 7.69 ICICI Bank Ltd. Bank 5.52 Bajaj Finance Ltd. Financial Services 4.34 Infosys Ltd. Information Technology 3.47 Avenue Supermarts Ltd. Retail 3.08 Note: Data as of 30th Sep 2022. Source: ICICI Pru AMC  Performance over 23 years  If you would have invested 10,000 at the inception of the fund, it would be now valued at Rs. 2.2 lakhs. This fund has outperformed the benchmark in all time horizons. Note: Performance of the fund since launch; Inception Date – May 27, 1999, as on Nov 11, 2022 Source: Moneycontrol The fund has given consistent returns and has outperformed the benchmark over the period of more than 23 years by generating a CAGR (Compounded Annual Growth Rate) of 14.36%  Fund managers  Atul Bhole – Mr. Atul is the Vice President of Investments of DSP Blackrock Investment Managers. He has been managing the fund as a Co-Manager since 2016.  Dhaval Gada – Mr. Dhaval has been managing the fund since September 2022. He is also the Vice President of Investments of DSP Mutual Fund.  Vikram Chopra – Mr. Vikram comes with an industry experience of 14 years. He has been actively managing this fund since July 2016.  Who should invest in DSP Equity & Bond Fund?  Investors  Looking to invest in the equity markets but don't know how to begin.  Have the patience & mental resilience to remain invested for a decade or more.  Why invest in DSP Equity & Bond Fund?  This fund is the simplest way to get the benefit of asset allocation with a balance of growth & stability orientation.  Potential capital preservation during falling markets due to debt allocation.  Horizon  One should look at investing for a minimum of 5 years or more.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  This DSP Equity & Bond Fund offers the potential to grow your wealth over the long term and potential capital preservation during falling markets due to debt allocation. This fund offers debt allocation to control losses during major market collections.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only

DSP Group is a 150+ years old financial entity, started back in the 1860s with its stock broking business. And gradually they entered the mutual fund industry.  DSP AMC was incorporated in 1996, and it is one of India’s leading AMC in India. DSP AMCs offer a wide range of products to meet the requirement of every investor in the best way by offering mutual funds. DSP AMC has schemes across debt, equity, hybrid, international funds, and ETFs (Exchange Traded Funds). It holds 25 years of Honest Asset Management. For over two decades, DSP has helped its investors to take responsible money decisions based on two pillars i.e., honesty & integrity.  DSP Flexi Cap Fund  Investment objective An open-ended growth scheme, seeking to generate long-term capital appreciation, from a portfolio that is substantially constituted of equity securities and equity-related securities of issuers domiciled in India. Investment process The DSP Flexi Cap Fund follows a growth style of investing which consists of growth stocks of large-, mid and small-cap companies. The investment philosophy of the fund is to buy quality businesses, stay invested, and use corrections to average down.  The portfolio construction involves investing across the market capitalization spectrum. The fund core portfolio is based on long-term themes, a core equity portfolio of 75% - 80%, and a tactical equity portfolio of 20% - 25% with a total number of stocks of 50-70. Framework to identify companies are business strength, management quality, and growth prospects. Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 61% and sectorally major exposure is to financial services that account for more than one-third of the portfolio. The top 5 sectors hold nearly 73% of the portfolio. Note: Data as of 31st Oct 2022. Source: Value Research  https://youtube.com/shorts/3iy-aCJoJmo DSP Flexi-Cap Fund - Top 5 holdings Name Sector Weightage % HDFC Bank Financial 9.96 ICICI Bank Financial 7.34 Bajaj Finance Limited Financial 5.96 Infosys Technology 4.50 Avenue Supermarts Limited Services 4.07 Note: Data as of 31st Oct 2022. Source: Value Research  Performance over 25 years  If you would have invested 10 lakhs at the inception of the DSP Flexi Cap Fund, it would be now valued at Rs 8.12 crore.  Note: Performance of the fund since launch; Inception Date – Apr 29, 1997, till Nov 14, 2022. Source: Moneycontrol  The fund has given consistent returns and has outperformed the benchmark over the period of 25 years by generating a CAGR (Compounded Annual Growth Rate) of 18.77%.  Fund manager  Atul Bhole: Prior to joining DSP Mutual Fund, he worked with Tata Mutual Fund, JP Morgan Services Pvt. Ltd., and SBI Treasury.  Who should invest in the DSP Flexi Cap Fund?  Investors looking to  Hold multi-cap companies i.e. large/mid/small cap under one umbrella  Invest in market leaders of different size  Why invest in the DSP Flexi Cap Fund?  One-stop option for equity investments, investors no need to decide on large/mid/small cap allocation  The fund owns high-quality companies with good prospects, which are good for long-term  Horizon  One should look at investing for a minimum of 5 years or more  A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility  Conclusion  The DSP Flexi Cap Fund has a well-diversified portfolio of 52 stocks that have delivered consistent returns over 25 years with a proven track record with an 18.77% CAGR consistently. The fund is suitable for investors who want to have a core equity portfolio and tactical equity portfolio under one fund. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

DSP Group is a 150+ years old financial entity, started back in the 1860s with its stock broking business. And gradually they entered the mutual fund industry.  DSP AMC was incorporated in 1996, and it is one of India’s leading AMC in India. DSP AMCs offer a wide range of products to meet the requirement of every investor in the best way by offering mutual funds. DSP AMC has schemes across debt, equity, hybrid, international funds, and ETFs (Exchange Traded Funds). It holds 25 years of Honest Asset Management. For over two decades, DSP has helped its investors to take responsible money decisions based on two pillars i.e., honesty & integrity. DSP Tax Saver Fund Investment objective   The primary investment objective of the Scheme is to seek to generate medium to long-term capital appreciation from a diversified portfolio that is substantially constituted of equity and equity-related securities of corporates and to enable investors to avail of a deduction from total income, as permitted under the Income Tax Act, 1961 from time to time. Investment process The DSP Tax Saver Fund follows a blended style of investing which consists of value and growth stocks of large-, mid, and small-cap companies. The investment philosophy of the fund is to buy fundamentally strong businesses, which are driven by growth drivers and valuation support to determine relative attractiveness.  Portfolio construction involves investing in market capitalization companies using top-down and bottom-up approaches. The fund focuses on long-term growth with a portfolio of 60-65 stocks. The fund tracks the stock performance v/s fundamental changes.  DSP Tax saver Fund portfolio composition  The portfolio holds the major exposure in large-cap stocks at 70% and sectorally major exposure is to financial services that account for more than one-third of the portfolio. The top 5 sectors hold nearly 70% of the portfolio.  Note: Data as of 31st Oct 2022. Source: Value Research Top 5 holdings Name Sector Weightage % HDFC Bank Financial 8.91 ICICI Bank Financial 8.57 Infosys Technology 7.02 Axis Bank Financial 5.02 State Bank of India Financial 3.75 Note: Data as of 31st Oct 2022. Source: Value Research  Performance over 15 years If you would have invested 10 lakhs at the inception of the DSP Tax Saver Fund, it would be now valued at Rs 83.90 lakhs.  Note: Performance of the fund since launch; Inception Date – Jan 18, 2007, till Nov 14, 2022. Source: Moneycontrol  The DSP Tax Saver Fund has given consistent returns and has outperformed the benchmark over the period of 15 years by generating a CAGR (Compounded Annual Growth Rate) of 14.38%.  Fund manager at DSP Tax saver fund direct growth Charanjit Singh  Prior to joining DSP Mutual Fund, he worked with Capital Goods, Power & Infra at B&K Securities India, Capital Goods and Infra at Axis Capital Ltd., BNP Paribas India Securities, Thomas Weisel Partners, HSBC, IDC Corp., and Frost & Sullivan.  Rohit Singhania  Prior to joining DSP AMC, he worked with HDFC Securities Ltd. and IL&FS Investsmart Limited.  Who should invest in DSP Tax Saver Fund?  Investors looking to  Save taxes by investing in an equity core portfolio  Invest in multi-cap equity allocation  Why invest in DSP Tax Saver Fund?  Strong stock selection approach using a combination of top-down and bottom-up selection criteria  Shortest lock-in period when it comes to the tax-saving asset class  Horizon  One should look at investing for a minimum of 5 years or more  A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility.  Conclusion  The fund follows a strong approach toward stock selection and tracks the performance of the same. The fund has delivered consistent returns over 15 years with a proven track record with a 14.38% CAGR consistently. The fund is suitable for investors who want to have core equity with tax benefits. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. Abhilash Anand - Equity Research Analyst Provides financial insights on publicly-traded companies and/or sectors to facilitate investment decisions.

ICICI is a leading Asset Management Company (AMC) in the country focused on bridging the gap between savings, and investments and creating long-term for investors through a range of simple and relevant investment solutions.   Let us talk about the flagship product – ICICI Prudential Long Term Equity Fund (Tax Saving). About ICICI Prudential Long Term Equity Fund  - Investment objective To generate long-term capital appreciation through investments made primarily in equity and equity-related securities of companies.   - Investment Process   Diversification across capitalizations: The scheme constitutes a portfolio, which is a blend of large, mid, and small-cap stocks. The fund manager may change the proportion of large-cap and mid/small-cap stocks in the portfolio depending on the market conditions.   Long-term focus: The three-year lock-in period in the ELSS category enables the fund manager to select stocks with a long-term view as there are no short-term redemption pressures, thus providing opportunities for potential returns.  - Portfolio Composition  The portfolio holds the major exposure in large-cap stocks at 73% and sectorally major exposure is to financial services that account for roughly one-third of the portfolio. The top 5 sectors hold nearly 67% of the portfolio. Note: Data as of 31st Oct 2022. Source: Value Research Top 5 holdings Name Sector Weightage % ICICI Bank Financial Services 9.01 Infosys Technology 6.16 Axis Bank Financial Services 5.41 Bharti Airtel Communication 5.10 HDFC Bank Financial Services 4.26 Note: Data as of 31st Oct 2022. Source: Value Research  Performance over 22 years If you would have invested 10 lakhs at the inception of the ICICI Prudential Long Term Equity Fund, it would be now valued at Rs 6.15 crore. Note: Performance of the fund since launch; Inception Date – Aug 19, 1999, till Nov 7, 2022. Source: Moneycontrol  The fund has given consistent returns and has outperformed the benchmark over the period of 22 years by generating a CAGR (Compounded Annual Growth Rate) of 19.39%. Fund manager  Prior to joining ICICI Prudential Mutual Fund, he worked with SBI Mutual Fund, Kotak Institutional Equities, CIMB Securities, RBS Equities India Pvt. Ltd., Indiabulls Securities Ltd., and Reliance Equities International Pvt. Ltd. Who should invest in ICICI Prudential Long-Term Equity Fund?  Investors looking to  Save tax by investing in an equity portfolio  Build core equity portfolio for long-term wealth creation with steady growth  Why Invest in ICICI Prudential Long-Term Equity Fund?  ICICI is a renowned name in the finance industry with a proven track record  Strong stock selection approach with a diversified portfolio reducing concentration risk.  Horizon  One should look at investing for a minimum of 5 years or more  A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility.  Conclusion  The ICICI Prudential Long Term Equity Fund is one of the best funds with a proven track record of 22 years and has delivered 20% CAGR consistently. Thus, suitable for investors who can take a little higher risk and can expect comparatively higher returns than other tax-saving options.   DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

CA, or chartered accountancy, is one of the most popular study courses chosen by students in India. Knowing “What are the total fees to become CA” is vital so that individuals can save and be prepared for it without any financial worries.  Students opting for CA exams have to pass three levels: CA Foundation (previously known as CPT), CA Intermediate, and CA Finals. Students have to focus also on practical training for three years under an authorized CA firm. This training starts after clearing the second level CA Intermediate and is generally completed before the CA Finals. Fees of CA foundation Overview of the total fees structure for CA Foundation, Intermediate, and Finals CA Course FeesCA FoundationCA IntermediateCA FinalsRegistration FeesIndian student -INR 9,000, Foreign student- $700Indian student – INR 11,000 for a single group and INR 15,000 for both groups. Foreign student -$600 for a single group and $1000 for both groupsIndian student – INR 22,000 Foreign student - $1000Examination FeesIndian student – INR 1500, Foreign student - $325Indian student – INR 1500 for single group and INR 2700 for both groups. Foreign student - $325 for a single group and $500 for both groupsIndian student - NR 1800 for single group and INR 3500 for both groups.Foreign student - $550 for both groupsLate FeesIndian student –INR 600Foreign student - $10Indian student – INR 600Foreign student - $10Indian student – INR 600Foreign student - $10 Registration fees Students aspiring to become CA have to clear the first-level CA Foundation to get entry into the study course. The registration forms are available twice a year, generally for May/June and November/December sessions.  The total fee for the CA Foundation exam for Indian Students is INR 10,900 and $ 1065 (nearly INR 87,145) for foreign students. The Break-up of the fee structure is as follows CA registration fees - INR 9,000 for Indian students and $700 (nearly INR 57,456) for international students. Journal membership fees (optional) - INR 200 for Indian students and $20 (nearly INR 1641) for international students. Examination fees - INR 1,500 for Indian students and $325 (nearly INR 26,676) for international students. Online form fees - INR 200 for Indian students and $20 (nearly INR 1,641) for international students. 1. Application/Examination fees For a centre in India - INR 1500. If the centre is Kathmandu – INR 2200. For centres in Abu Dhabi, Doha, Dubai or Muscat – 325 USD (nearly INR 26,676). 2. Late Fees  Students have to pay INR 600 for centres in India and 10 USD (nearly INR 820) for overseas centres as late fees.  3. Reappearing Exams The validity for registration fees is three years, and after this period, the students have to pay INR 500 for revalidation. Students who fail to clear the CA Foundation have to pay the application fees repeatedly before a new attempt.  Fees structure for CA Intermediate Students have two options for registration at CA Intermediate level. The first is by clearing CA Foundation and registering for the Intermediate course. The second is a direct entry where graduates, post-graduates or students at the Intermediate level of CFA or CS courses are exempted from the Foundation level and can directly register for the Intermediate exams.  1. Registration Fees The registration fees for a single group and both groups of the CA Intermediate course for Indian Students are INR 11,000 and INR 15,000, respectively. For international students, the fees for single and both groups of CA Intermediate exams are $600 (nearly INR 49,248 ) and $1000 (nearly INR 82,080), respectively.  Indian students opting for direct entry have to pay INR 15,000 for both groups.  2. Application/Examination Fees The fees for Indian students are INR 2,700 for both groups and INR 1,500 for one group. Fees for overseas students are $500 (nearly INR 41,040) for both groups and $325 (nearly INR 26,676) for a single group.  3. Late Fees Students have to pay INR 600 for centres in India and Kathmandu and 10 USD (nearly INR 820) for other overseas centres as late fees.  4. Reappearing Exams The registration fees are validated for 4 years, after which the student has to pay INR 400 for revalidation.  5. Additional fees Student activity (conferences, seminars, workshops etc.) – INR 2,000. ICITSS Fees – INR 13,500 6. Articleship Fees At the start of practical training, students have to pay INR 2000 as articles fees along with INR 500 for the assessment test.  Fees structure for CA Finals 1. Registration Fees CA Final registration fees for both groups is INR 22,000 for Indian students and $1000 (nearly INR 82,080) for overseas students.  2. Application/Examination Fees The application/examination fees for Indian students are INR 3,500 for both groups and INR 1,800 for one group, and for overseas students, it is $550 (nearly INR 45,144) for both groups.  3. AICITSS Training  AICITSS Training is conducted in two parts, where students have to pay INR 7,000 and INR 7,500 for information technology and soft skills, respectively.  CA Fees Structure Summarised Reducing the price in half. The Institute of Chartered Accountants of India must receive the first contribution, which is required, and the second portion, which is elective, is the coaching class charge.  Foundation fees is around 11,000 thousand.  Intermediate course fees are around 35,000 thousand.  Final fees are around 33,000 thousand  The total would be 78,000 thousand.  With Article ship stipend = 54000  So Rs 78,000 – Rs 54000 = rs. 24000  Thus, after adjusting for all the sums, the required contribution equals about Rs. 24000. It is also crucial to note that the ICAI enhanced this sum as a result of revisions to the syllabus at all levels. The price was previously even low!  How to save for CA?  Investing in mutual funds or SIP is one of the best ways to save for an education course like CA. You could opt to save through the goal-based saving feature on the Edufund App, as it will help achieve the desired target for, say, application fees in the near six months. Assess how much the total course will cost you and choose a suitable saving plan to achieve your goal.  Conclusion  The high salary of a CA and the growing demand for CAs have prompted students to choose this study course as their career. As you are now aware of the total fees to become CA, it will become easier to save for this course and ultimately become a part of the CA fraternity. Consult an expert advisor to get the right plan TALK TO AN EXPERT

ICICI is a leading Asset Management Company (AMC) in the country focused on bridging the gap between savings and investments and creating long-term for investors through a range of simple and relevant investment solutions.   Let us talk about the flagship product – ICICI Prudential Multi-Cap Fund. About ICICI Prudential Multi-Cap Fund  Investment objective To generate capital appreciation through investments in equity & equity-related instruments across large-cap, mid-cap and small-cap stocks of various industries.  Investment Process   The ICICI Prudential Multi Cap Fund follows a blended style of investing which consists of growth and value stocks of large-, mid and small-cap companies. The Scheme will aim to hold optimum exposure to large, mid, and small-cap stocks depending on the fund manager's view on market valuations.   The portfolio construction involves investing in high-conviction quality stocks. The Scheme will remain sector agnostic and would use a combination of top-down and bottom-up research for stock selection. A top-down approach will be based on macroeconomic conditions, and underlying trends while a bottom-up approach shall be followed for selecting stocks with growth prospects, low leverage levels, good corporate governance, robust financials, and good cash flow management.  Portfolio Composition  The portfolio holds the major exposure in large-cap stocks at 73% and sectorally major exposure is to financial services that account for roughly one-third of the portfolio. The top 5 sectors hold nearly 67% of the portfolio. Note: Data as of 31st Oct 2022. Source: Valueresearch  Top 5 Holdings  Name Sector Weightage % ICICI Bank Financial 7.86 HDFC Bank Financial 3.96 TVS Motor Automobile 3.34 Infosys Technology 3.33 Sun Pharmaceutical Healthcare 2.42 Note: Data as of 31st Oct 2022. Source: Valueresearch  Performance over 28 years If you would have invested 10 lakhs at the inception of ICICI Prudential Multi Cap Fund, it would be now valued at Rs 4.7 crore.  Note: Performance of the fund since launch; Inception Date – Oct 01, 1994 till Nov 07, 2022. Source: Moneycontrol  The ICICI Prudential Multi Cap Fund has given consistent returns and has outperformed the benchmark over the period of 28 years by generating a CAGR (Compounded Annual Growth Rate) of 14.67%. Fund manager  Anand Sharma: Prior to joining ICICI Prudential AMC, he worked with Oracle Financial Services Software Ltd.  Sankaran Naren: Prior to joining ICICI Prudential AMC, he worked with Refco Sify Securities India Pvt. Ltd., HDFC Securities Ltd., and Yoha Securities Who should invest in ICICI Prudential Multi-Cap Fund?  Investors looking to  Diversify their portfolio into multiple market capitalization company  Build core equity portfolio for long-term wealth creation with steady growth  Why invest in ICICI Prudential Multi Cap Fund?  ICICI is a renowned name in the finance industry with a proven track record  Strong stock selection approach with a top-down and bottom-up approach  Horizon  One should look at investing for a minimum of 5 years or more  A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility  Conclusion  The ICICI Prudential Multi Cap Fund has delivered consistent returns over 28 years with a proven track record and has delivered 14.67% CAGR consistently. Thus, suitable for investors who want to diversify their portfolio under one roof.   DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

Are you confused between buying digital gold vs physical gold? Gold is an extremely valuable commodity in India – in its physical form, there are jewelry, coinage, and biscuits. Gold is purchased to mark every momentous occasion. In fact, according to IGPC sponsored by the World Gold Council, more than 75% of Indian households own gold in some form or another.  But there is a new way of owning gold that is rapidly becoming popular in urban India – which is digital gold. Unlike physical gold, you can purchase digital gold at a minimal cost like Rs. 10 to Rs. 100. Let’s compare the two and find out which is the best option for you. What's Digital Gold?  Digital gold is a substitute for actual gold. Digital gold is available in India through a variety of apps and websites. A cost-effective and successful way to invest in gold is by purchasing digital gold. Digital gold is guaranteed by 24K gold that is 99.9% pure. Gold can be purchased for as little as 100 Indian rupees. Online sales and purchases take place at current market rates.   Consequently, the transaction will be completely transparent. Gold investments don't require additional transporting or storage expenses. The security of the gold kept by the businesses in a safe vault under the investor's name need not be a concern for investors.  What's Physical Gold?  One of the most popular and preferred investment choices in India is buying gold. Interest in this yellow metal has only grown over time. Gold is typically purchased for personal usage. It can be bought as jewelry, gold coins, or cookies. Without the need for a middleman, one can purchase it directly from a bank or jeweler. There isn't any counterparty risk as a result.   With actual gold, the minimum investment is considerable. For instance, there is a 10-gram minimum purchase requirement for gold cookies. As a result, purchasing physical gold requires a larger down payment than purchasing digital gold. Differences between Digital Gold vs Physical Gold  1. Digital Gold  Purity is 99.99% and guaranteed.  Prices are the same across the world.  Buy and sell at a fixed price.  3% GST is charged at digital gold.  Safe storage by the seller in a safe vault.  Gold investment profits are taxed according to the investor's income tax bracket rates if kept for much less than 3 years. Profits are subject to a 20% tax liability with an annual inflation advantage for investment holding periods longer than three years.  2. Physical Gold  Purity can’t be guaranteed. It may not be or maybe 99.05% pure.  Physical gold prices aren’t similar.  The usual gold coin or biscuit weight 10 grams is also available. As a result, purchasing actual gold involves a substantial expenditure.  When purchasing gold jewelry, making fees range from 20% to 30% of the entire cost of the gold.  The gold must be kept securely either at home or in a locker. The likelihood of loss and theft is significant.  Gold investment profits are taxed according to the investor's income tax bracket rates if held for less than three years. Gains are subject to a 20% withholding tax with an indexation advantage for investment time frames over three years.  Conclusion  There are benefits and drawbacks to both physical and digital gold. Rather than purchasing physical gold if you merely desire to use it for financial gain, you can purchase digital gold. In contrast hand, digital gold is uncontrolled and has a temporal limitation on how long it can be stored in that format.  Other digital assets, such as sovereign gold bonds and gold ETFs (Exchange Traded Funds), may be better in some circumstances (mutual funds). Physical gold, in contrast, is suited for investors' personal use.  FAQ Is digital gold worth buying?  The ease and security of digital gold's preservation is by far its greatest benefit. The business that sells digital gold will keep the gold that customers buy in safe vaults. The buyer also avoids locker fees and worries about the theft or loss of gold because he does not own the gold.  What is the disadvantage of digital gold?  Within the case of digital gold, an extra fee known as spear cost is levied against the investor. A spreading cost will be added to a number of other prices, such as storage fees and insurance premiums. Typically, the spread cost falls between 3% and 6%.  Which is better digital or physical gold?  There are benefits and drawbacks to both digital and physical gold. Instead of purchasing physical gold if you merely want to use it for financial gain, you can purchase digital gold. On the other hand, digital gold is unregulated and has a temporal limit on how long it can be stored in that format.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Saving money is tough and overwhelming. With the internet filled with different methods of saving money, it can get difficult to pick which is the best choice for you!  In this article, let’s find out what are the varied methods of saving money and where you should park your money for the best returns. Methods of saving money  Here are some methods of saving money that can help you achieve your long-term and short-term financial goals 1. Invest and Save  Investing and saving are one of the most crucial methods of saving money. It is also the most underrated method. Most Indians do not invest in the stock market or take benefit of its varied opportunities. If you want to invest and save then here are some investment options to explore 2. Direct mutual funds Direct mutual funds are a good way to start investing and saving. As there is no middleman in between, there is no extra cost.  Regular mutual funds are another type of mutual fund. These charge more in terms of expense ratio but are professionally managed and maintained by an experienced fund. This is a great investment for investors who are new to investing and need a helping hand to make the most of their investments. 3. Digital Gold Digital gold, gold bonds, or gold ETFs are also a way. There are alternatives for physical gold but it is a way of investing. You can do all of this online; there is no need to go to a jewelry store. It’s the more suitable way of buying gold. Investors who want to sell or buy gold can do it without any problems with one click in an app. The minimum cost of buying or selling gold can be as low as Rs 1. 4. US Stocks US Stocks are another method of saving money! That’s right. Suppose you plan to send your child abroad to study in USA or Canada. The currency difference between USA and India will make the education cost higher for you. Imagine if you start investing that money regularly in US dollars so that by the time your child is off to the USA, you will be able to fund his/her dream without any loss!   Real estate investment involves buying, managing, and selling a property. It’s a type of investment and has different parts. 5. ETFs ETFs (Exchange-Traded Funds) are somehow similar to mutual funds. It’s a type of pooled investment security. It can be sold and bought much like other stocks.  Daily savings and budgeting  Many people ignore saving and budgeting as a method of saving money. It can help you cut costs and recognize areas where you may be losing money.  Create a budget for the month. When there’s a fixed budget for the month, you tend to spend less. Settle everything under your budget.  Don’t just save your money, think about your future too. Set aside some money for an emergency fund. So that you are prepared for any emergency like job loss.  Start saving for your life after retirement. Make sure you have a retirement plan or fund in place way before time. This will help you amass more money over a long period of time. In fact, the sooner you think about your retirement, the more money you are likely to save up!  Save and invest your bonuses or tax refunds. Put them into your savings account and consult your financial advisor on how to make the most of it.   Manage your debts before making creating any extra costs like starting a new EMI.  Save electricity. It will also save you money. By not using unnecessary fans, lights can cost you more than you can think.  Cancel your automatic transactions, and memberships, and unsubscribe from unnecessary emails because by seeing offers you tend to make unnecessary purchases.  Decrease your mobile bills. Cut off unnecessary plans from your bill. Use free Wi-Fi instead of buying extra data plans.  Banking saving tips  Use your credit less. Pay your credit card bills timely to have less burden on your shoulder later.   Use only your ATMs or debit cards because every time you use your ATMs or debit cards, you are not charged any withdrawal charges.   Keep your monthly bills on automatic. It will free you from hassles and also pay your bills on time.  Entertaining saving If you love reading and like to have physical books then use your nearby libraries.  Watch films at home instead of going outside and spending more there. Going to a theatre means buying popcorn, seats, transportation, etc. but when you watch films at home you don’t spend extra.  Reduce your trips to coffee shops. It doesn’t cost you $2 - $3(Rs 200 - Rs 400), but it costs you more than that in long term.   Instead of eating out regularly, cook your own food at home.  Cut off your grocery expenses. Don’t shop extra from that grocery store. It helps you in saving extra money here and there. Make a budget for that too and stick to it.   Consult an expert advisor to get the right plan TALK TO AN EXPERT FAQ Are ETFs a good investment?  ETFs are actually low-risk investments because they are low-cost and hold a bag of stocks. What are the 2 methods of saving?  Cutting off extra expenses and investing money in mutual funds, digital gold, etc. Helps in saving money. How much should I save every month?  Saving 10% - 20% every month should be the goal so that in long run you will be saving more. Is investing money a good way to save more?  Investing money is a good way to save more but it’s an individual’s own choice to invest or not. But now, it’s a proven method to save money by investment.

You need to be a millionaire to invest in mutual funds! Or, mutual funds guarantee returns to all their investors. You have probably heard these myths about mutual funds every now and then.   It’s time to debunk these myths and find out what are the true facts behind mutual funds and their investments!  Myths about mutual funds 1. Mutual funds are only for long-term investment Your investment in mutual funds could be goal-based. Whether you select a short-term, long-term, or medium-term target, you are probably going to make some respectable returns. Mutual funds are regarded as suitable investment tools for exceedingly short-term investing objectives (ultra-short goals). Debt funds are how they are represented. You'll also find that many investors have a strong interest in mutual funds with the aim of building emergency cash. 2. You need an agent to understand mutual funds  The finest mutual funds to invest in are based on much the same information investors have about stocks, so this could not be more different from the truth. While it is true that investment managers work for mutual funds, as an investor you may conduct your own research on firm stocks and request that certain stocks be included in a fund of your choosing. 3. Mutual funds are similar to stock investment Numerous investment-related assets are included in mutual funds. As a result, gold, money market products, fixed deposits, debt and equity are all potential investments for the best mutual funds in India. Your contribution to a mutual fund can include any or all of these assets. What you invest in mostly relies on your tolerance for risk, financial goals, preferred tenures, etc.  4. Mutual funds that have low net asset value are the only which are good The NAV, or net asset value, is the entire value of the underlying assets that comprise the fund, whether you invest in huge or tiny mutual funds. Not the market price, but the market worth. The success of a mutual fund is revealed by the Value change between two different time periods. As a conclusion, selecting a mutual fund cannot be affected by comparing the NAVs of other mutual funds 5. Mutual funds guarantee higher returns  The investment characteristics of mutual funds determine the profits you will receive. Mutual funds are collections of assets, whose returns depend on the value of their underlying assets. These might occasionally be subject to variations. As a result, returns might not be fixed or promised. 6. Only people having demat account can go for mutual funds Apart from the Exchange Traded Funds, keeping mutual fund units in Demat form is entirely optional. The decision on whether to hold the units in a Demat mode or the existing traditional accountant account mode is fully up to the investor in all other plans, along with the close-ended listed strategies like Fixed Maturity Plans (FMPs) Types of mutual funds Money market funds have comparatively less risk. They are only permitted by law to invest in a limited group of high-quality, brief securities issued by American businesses and national, state, and municipal governments.  Bond funds have bigger risks than money market mutual funds as their primary objective is to generate better returns. The risk and benefits of bond funds can differ tremendously due to the wide range of bonds.  Stock funds purchase corporation shares. Stock funds vary widely from one another.  Growth stocks concentrate on equities with the possibility for above-average investment rewards but they may not consistently pay a dividend.  Revenue equities are purchased by income funds.  A specific market index, such as the Standard & Poor's 500 Index, is tracked by index funds.   Target date funds mix your investments across stocks, bonds, and other assets. The composition regularly shifts over time in accordance with the fund's strategy. Lifecycle funds sometimes referred to as target date funds are created for those who have certain pension plans in view.  Conclusion:  Myths about mutual funds can be common and misleading! Get to know about mutual funds more in detail and invest. When you understand mutual funds better, you can put your money to better work.  Consult an expert advisor to get the right plan TALK TO AN EXPERT FAQ What's the biggest problem with mutual funds?  High expense ratio  High sale charges  Management abuse  Tax inefficiency  Poor trade execution Can we trust mutual funds?  Mutual funds are easy and trustable if you can understand them. Investors don’t need to worry about short-term fluctuation and about risks.  Are mutual funds really beneficial?  There are too many benefits of mutual funds. Mutual funds merge the funds of many different participants and handle them as one large financial pot. Therefore, expert fund managers handle the selection of stocks and bonds for investors rather than the investors themselves. 

The Public Provident Fund is a type of investment that encourages small amounts of savings. A life insurance policy is a type of insurance that provides protection from unfortunate occurrences like death. This article compares LIC and PPF and goes into detail about each financial product's features. Life Insurance Policy (LIC): What is it?  Corporation for Life Insurance, A state-owned insurance, and investment firm, is called LIC. The Life Insurance Corporation was founded in 1956. LIC was created post the Life Insurance of India Act was passed. It provides a way for people to get insurance to safeguard their loved ones against threats. A LIC policy is a contract that requires ongoing premium payments or a one-time payment to the insurance provider. Upon the LIC policy's maturity or the unfortunate passing of the policyholder, one will receive a lump sum payment. The people who need life insurance the most are those who have dependents who depend on their income. Consequently, the nominee will get the insured sum in the terrible event that a policyholder passes away. Therefore, LIC serves as a risk cover for the family of the policyholder. The policyholder will receive a lump sum payment if the insurance expires prior to the insured person's passing. The same might be used for the policyholder's retirement.  Section 80C of the Income Tax Act of 1961 allows for the tax deduction of insurance premium payments. However, the following prerequisites must be satisfied in order to claim a deduction:  If the policy is issued after April 1, 2012, the premium cannot be greater than 10% of the amount insured.  The premium paid for life insurance plans issued prior to April 1, 2012, should not be more than 20% of the amount assured. If the premium payment does not exceed 10% of the sum assured, the maturity amount from a life insurance policy is completely excluded from tax under Section 10 (10D). The sum the policyholder gets at the conclusion of the term is completely taxable if the premium is greater than 10% of the insured amount. Additionally, a TDS of 5% is applicable to the revenue portion of the maturity value of policies not covered by Section 10 (10D). TDS is only deductible if a life insurance policy's maturity value reaches INR 1,00,000. Additional read: Lumpsum vs SIP Public Provident Fund (PPF): What is it? The Indian government launched the Public Provident Fund program. In 1968, the National Savings Institute introduced it. This long-term post office savings program is backed by the government, so the returns are assured. Every three months, the Ministry of Finance releases the PPF Interest Rate. The yearly compounded PPF rate for the latest quarter, January 2022 through March 2022, is 7.1%.  According to Section 80C of the Income Tax Act of 1961, investments up to Rs 1.5 lakh each fiscal year are totally tax-free at the disposal of investors. Additionally, the proceeds from interest and maturities are tax-free as well. As a result, a person investing in PPF to save for retirement should not be concerned about taxes. Following is the table comparing LIC vs PPF LIC vs PPF People frequently mix up investments with insurance. Investments are for a secure future, whilst insurance is for risk protection. Having sound financial standing is vital for any investment. A person needs an emergency reserve for unforeseen costs, insurance to safeguard against terrible situations, and investments to ensure a solid financial future. Therefore, if a person has dependents who depend on their income, they must have insurance. The market offers a wide variety of insurance products, including term insurance, ULIPs, and endowment plans. A term policy and PPF investments, however, are advised for investors. In the most economical manner possible, it offers investment security and insurance safety. That being the case, the question shouldn't be LIC or PPF or LIC vs PPF. Which term policy works best with PPF should be the question instead. Conclusion There are insurance programs that also provide investing alternatives, including ULIPs. However, when it comes to expense ratio, they are on the upper end of the spectrum. They also have a number of unstated fees. Therefore, it is advised that people separate their insurance needs from their investment demands and purchase term coverage while investing in PPF. If there’s any confusion regarding this or any other financial matter, EduFund’s team of efficient financial advisors is always available to help you. TALK TO AN EXPERT