Category Archives: Finance

There are various methods to choose from when it comes to developing a financial plan, but the proper plan needs a few components, regardless of the process utilized for creating it. Components for financial planning   1. Your net worth statement  Every financial plan demands a baseline. So, it is worthwhile to determine the net worth before finding a financial plan. Make sure to note down all the assets and debts. This will include investment accounts, bank accounts, valuable personal property, real estate, mortgages, student loans, and credit cards.   Make sure to deduct your liabilities from your assets to find your net worth. If you find that your liabilities are outweighing the assets, make sure to not be discouraged because when people are starting to establish a solid financial plan, it is something that happens. So, it needs to be considered when looking for the components of financial planning. 2. Financial goals  You cannot consider making a financial plan until you understand what you are going to do with your money. Your plan needs to begin with a complete list of goals, both small and big.   A proper list can help you organize all the goals. Be aware that your short-term goals will be those that you are hoping to achieve in the next 2-5 years. When it comes to medium-term goals, those are the ones that you want to achieve in the next 7-8 years. Finally, your long-term goals will be those that you want to achieve in the next 10 to 50 years. Listing down financial goals is one of the primary components of financial planning.   7 Types of Financial Planning Read More 3. Debt management  Having a debt management strategy is something that can help you reach your financial goals. If there is high-interest debt, ensure creating a strategy that can assist you to pay them quickly. You can also hire a financial professional advisor if you are not certain about where to begin. They will help you determine the amount from your budget that should be spent on the debts every month.   4. Cash flow and budget planning  Your budget assists you to find out where all your money is going and it helps you cut back to meet your goals. You can make use of a proper budget calculator to be sure that you do not ignore the important expenses. While jotting down your list, make sure to separate the expenses into two categories when considering the components of financial planning.   One category will have must-have items and the other will have luxury items. When you are considering how the financial goals will fit within the budget, make sure to consider all your expenses. You can also take the help of any advisor that offers procedures and tips that enable you to adjust particular assumptions to check how they would affect the savings plan.   Financial Planning Contingencies Read More 5. Retirement plan  You are going to need 80% of the income you're earning today in your retirement. But, you can also assume that retirement can free you from taxes and other work-related expenses. You must consider that medical insurance does not cover everything. You need to keep those expenses under long-term health care expenses. Make use of a savings calculator for your retirement to help you understand what you might require during your retirement period.   6. Insurance coverage  Insurance refers to an integral part of safeguarding your financial downside. Disability insurance, health insurance, life insurance, and home insurance are some of them. When it comes to life insurance, it is a good concept for people having dependents. Make sure to talk to an insurance professional to acknowledge what kind of coverage works best for you.   When it comes to disability insurance, just like the components of financial planning, it safeguards you and your family when you are not able to work. It replaces approximately 60% of your monthly salary. If you have a home or a car and you cannot afford to pay the entire bill from your pocket, ensure that you have adequate protection. The same is true with health insurance which can get you back thousands of money during a severe injury.   Wrapping Up  These components of financial planning are growing effectively to confirm that the present plans in your life are in a positive direction.   In a nutshell, you need to -  Keep a regular check on your enrolled plans, mutual fund, and assets;   Analyze your essential expense;  Cut down excess expenses for your future investment to be more structured;  Optimize your goals.   So, follow the above-mentioned components of financial planning to make your financial goals realistic as well as achievable. It is one of the best and workable ways to help take a step toward your financial goals. FAQs How do I determine my net worth? List all assets and debts (e.g., investments, bank accounts, loans), subtract liabilities from assets to find net worth. Why is goal setting essential in financial planning? Goals provide direction. Categorize them into short-term (2-5 years), medium-term (7-8 years), and long-term (10-50 years) goals. How do I manage debt effectively? Create a strategy to pay off high-interest debt. Seek advice from a financial advisor if unsure where to start. Why is insurance coverage crucial for financial security? Insurance safeguards against financial downsides. Types include disability, health, life, and home insurance, offering protection in various situations. TALK TO AN EXPERT

In the previous article, we discussed how parents can find the best education loan. In this article, we will discuss the responsibilities of a parent in an education loan Education inflation is making things worse for parents. Let’s cite some figures to help you realize the state of education inflation in India. The education inflation rate in India was 0.63% in April 2021. But it has increased to 4.12 in the corresponding month of 2022. https://www.youtube.com/watch?v=awKjIuVlRAQ On the other hand, with the economy taking a hit due to COVID-19, many parents might find it tough to fund their child’s education. That’s when an education loan is one of the best solutions to make your child realize their dreams.   You can apply for an education loan in the public sector or a private bank. Even non-banking financial institutes nowadays offer education loans to eligible candidates. But with increasing costs, savings won’t be enough to fund your child’s education. No doubt, the best way to support your child’s higher studies is with the help of an education loan. So, what are the exact responsibilities of a parent for an education loan?   1. Always maintain a high credit score   If you are applying for a student loan for your child, the lender would ask you to act as a guarantor for the loan. It is crucial for parents to maintain a good credit score to showcase their creditworthiness to lenders.   A minimum requirement for credit score varies from lender to lender. A credit score of more than 700 is pretty good. Maintaining a good and higher credit score can help you negotiate with the lender to provide the loan at a better interest rate  https://www.youtube.com/watch?v=fufyFB9aMQI 2. You shouldn’t worry much about the collateral   Parents often hesitate to apply for education loans due to the fear of mortgaging their assets or property. However, you shouldn’t stress much about mortgages and collateral. An education loan can be collateral free. It also decreases loan sanction time and makes the overall process hassle-free.   Best way to explain child education loans Read More 3. Tax benefits on education loan  Note that tax deduction under Section 80E is one of the main advantages of an education loan. This deduction is available both to the parent and child, based on who repays the loan. Education loans offer a good tax planning opportunity. Since the complete interest can be deducted under Section 80E, the actual repayment cost becomes much lower.   https://www.youtube.com/watch?v=4gTQkdePOWM 4. Try to in still healthy financial habits with your children    As a responsible parent, your primary objective should be to instill good financial habits in your children. Good financial habits will help your child to repay the loan on time. And when your child bears the loan repayment responsibility, it is an excellent way to inculcate financial discipline. In this manner, they can build their own credit history. Building their own credit history in the early stages opens up a world of financing opportunities for them in the future.  5. Go for competitive interest rates   Interest rate is one major factor that influences the loan amount and EMIs. For instance, if the interest rate is high, the repayment amount will increase drastically. As a parent, your primary responsibility should always be to opt for education loans that come with lower interest rates.   Education loans in India don’t come affordable. Moreover, the overall NPA of educational loans is pretty high. That’s why banks charge exorbitant interest rates. As a responsible parent, you should remember that banks decrease interest rates by 1% when it is paid while the child pursues their education. Furthermore, you should repay the loan without defaulting.          6. Make use of the moratorium period  Parents typically make use of the moratorium period. Note that you cannot get a moratorium period on every education loan. Certain lenders and government-based financial companies don’t begin the loan repayment process unless the student finishes the course and completes at least six months in the professional workplace.   7. Know the significance of margin money  You should closely analyze how much the financial institution will finance and how much you need to put in. The contribution from your end is known as the margin money. The requirement of margin money usually varies from one lender to another.   For instance, the PSU banks typically charge a 5% margin money for education loans above INR 4 lakhs for candidates studying at Indian Institutes. On the other hand, they will charge 15% of the margin money if your child enrolls in a foreign university.   In most cases, private lenders typically don’t charge margin money when you apply for education loans from them. But as a responsible parent, you should make sure not to pay higher interest just to avoid margin money.     By keeping these facts in mind, you can ensure that your child can repay the loan quickly and become debt-free! Plan your finances well and educate your child wisely to help them become successful in their careers. TALK TO AN EXPERT

A bond is a debt instrument that an investor purchases from the issuer and receives interest on it periodically. Financial institutions, companies, banks, non-banking financial companies, and the government provide bonds. Bond is one of the financial instruments that help companies finance themselves; it acts as a loan for these companies that raise money directly from investors.   Bonds are ideal for investors seeking low-risk investments, and they carry lower risk than equities and help diversify the portfolio. https://www.youtube.com/watch?v=iYJzL-H5sds What are some primary differences between bonds and stocks? Bonds Stocks In bonds, you provide an amount to the lender to invest in an organization/ government In a share, you own a portion of the company equity by investing. The person who invests in a bond receives a fixed interest over time from the issuer. An individual dealing in stocks sells the shares once the price rise.    These are a debt. The long-investment bonds are riskier. These investments are long-term and short-term. Long-term offers the potential to the investor. Safer investment option than stocks Profitable investment option than bonds   However, bonds are not entirely free from risks. If the company goes bankrupt, the investors stop receiving interest payments. In many cases, individuals do not get the principal amount as well. It is thus advisable to invest in bonds in India carefully. Analyze the growth and issuer’s creditworthiness. Companies with AAA ratings like HDFC Bank Limited or Infosys are considered the best bond issuer.   How to Invest in Index Funds? Read More What are the 5 types of bonds to invest in India?   Here are the top 5 bond types of investing in India:  Government security bonds   The Government of India issues this debt instrument. These are one of the safest bonds in India, and they do not carry any credit risk and pay interest semi-annually.  Corporate Bonds   Firms provide these bonds to individuals for a fixed period, and the account holder earns consistent interest over time. However, companies use the money to fund their business requirements; hence, these are highly risky.   Zero Coupon Bond  A Zero-Coupon Bond is a pure discount bond. In this, individuals do not receive interest or any benefit until the bond’s maturity.  Convertible Bond  It is a hybrid bond that acts both as equity and bond. However, it does not happen simultaneously, allowing the investor to convert a bond into equity and qualify for shareholder benefits.  RBI Bonds  It is also known as a Floating Rate Savings Bond (RBI). Released in 2020, the government pays interest every six months on the bond, and one has to repay the bond post 7 years of expiry.   https://www.youtube.com/watch?v=_vd24QDztRo Is Investing in a Bond beneficial?   Here are some popular benefits of investing in a bond:   Provides investors with a steady income source  Flexibility to receive interest income or receive both cumulative interest and principal on maturity  Some bonds offer tax benefits on returns and interests  Investors receive benefits from preserving or increasing the investments  Investors share a higher priority claim to assets in comparison to stockholders  7 Tips to Choosing the right bond  Individuals often dwindle between the right bond and a profitable bond. Here is how you must pick the bond:  Define your investment objectives  Analyze your risk-taking abilities  Identify the bond provider rating  Expected yield on the bond  Research the bond’s strengths, weaknesses, and future scope  Read the terms in fine print carefully  Decide whether a long-term investment is ideal for you.   How to invest in bonds in India?  One can invest in bonds through a primary or secondary market. In the primary market, an investor can invest in bonds issued by big companies. In this, the companies provide bonds to build capital. They release IPO (Initial Public Offering) to raise funds for generating capital. When a company raises capital from the market to expand its business or growth, it is termed an IPO.  In contrast, a secondary market exchange refers to organizations like NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). Investors buy and sell stocks by operating in any of these organizations independently.  If you need a pre-mature exit, you can view a secondary market.  In the primary market, an individual has to undergo a documentation process to invest in bonds in the DEMAT account.   Purchasing a bond in the primary market is subjected to strict screening. The company offering securities reviews it and creates a prospectus outlining the details of the securities. In opposition, the secondary market offers more flexibility in trading.   Ways to invest:  By Connecting with a Bond Broker  Connecting with an authentic broker is one of the ways to choose and invest in the right bonds. Fees may vary from broker to broker.   Invest through Institutional Investors   In this, investors bids on government securities. The yield on the bond is less than the interest rate one receives. But a higher bid rate makes it profitable.  Purchasing Mutual Funds and ETFs   It is among the best and fastest methods for bond investing. The provider provides the best ETFs (Exchange Traded Funds) on your behalf.   Buying Bonds through RBI retail   If you are seeking government securities to invest in, you can do so through RBI retail. Register for a GILT security account under RBI. An investor needs to update the dashboard post-logging:  An investor must update details like- issue size, date of bidding, price per security, and bid value range  Place the bid by mentioning the investment value and security  Complete the payment  TALK TO AN EXPERT

Investors always look for better investment opportunities to get regular returns. It helps them save taxes and create long-term wealth. While there are many investment options generating profits, they come under taxation according to income tax laws.  But, an investor can also save income tax by investing in a tax saver mutual funds. This article will explain what a tax saver mutual fund is and what are the numerous aspects that can help you make a good decision for investment.  https://www.youtube.com/watch?v=x9stEF-4ZuY Let’s understand the tax saver mutual fund.  Tax-saver mutual funds are just like any other mutual fund scheme. But, diving further into the concept of tax-saver MFs, let’s understand mutual funds.   A mutual fund is an investment fund that is professionally managed. It takes money from various investors to buy securities. It is generally used in India, Canada, and the United States. You can consider a mutual fund as a trust that takes money from many investors sharing a common investment objective. Now let us again come to tax saver mutual funds.   A tax-saver mutual fund helps investors save taxes. This initiative qualifies for a deduction of tax of up to rupees 1.5 lacks. Through these mutual funds, one invests in growth-oriented equity markets. It helps investors to get good returns and build long-term wealth.   Let’s understand this with an example. If you want to invest rupees 60,000 in a tax-saving mutual fund, this amount will be eliminated from your entire taxable income. It will reduce your tax burden.  How does a tax saver mutual fund work?  Tax-saver mutual funds collect money from many investors. They invest the money in the equity market. The equity market is the stock market or the share market which is a combination of cells and buyers of stocks. They may also include the securities that are listed on public stocks.   A tax-saver mutual fund includes a lock-in period of 3 years. It means that you cannot withdraw your money for 3 years. When you want to invest in mutual funds through the systematic investment planning route, the lock-in period for every installment remains to be 3 years.   When you are redeeming the units of a mutual fund, you can just get the units that have finished the period of lock-in. You can also redeem them at the present net asset value. Net asset value refers to the value of the fund of the investment without its liabilities. It is further divided by the shares outstanding.   You can invest some random amount or choose options for regular installments through systematic investment planning (SIP). When you invest with the help of installments, your installment is going to mature past 3 years from the date you have made it. Tax Benefits on Child Education Fees Read More It indicates that your last installment will be kept for 3 years from the date of investment, which is different from the first installment's maturity date.   The tax-saver mutual fund is the best option if you want to save tax. It offers many advantages because it comes with the unique feature of tax exemption. If you want to invest in a tax-saving mutual fund scheme, you need to learn and research the involved risks with every scheme.   You need to know that you do not have any kind of upper limit on the investment tenure, so you can continue giving your investment in the scheme if it seems to be profitable for you. Who should invest in tax-saving funds?  Tax-saving funds come with lots of good features and have been proven to give remarkable returns, but they may not be perfect for everyone. Here's who can invest:   If you are young and are paying taxes, you can make the most out of the dual benefit of investing in a tax-saving mutual fund.   Older people need to consider other investment options that come with no or lower capital risk.   Investments need to possess a flexible long-term horizon for reaching the best benefits or assuring better returns. So, it is recommended to invest for a duration of approximately 6 to 7 years to get long-term advantages.   Investors also analyze the track record of their fund after considering their investment based on their risk appetite and financial goals. So, it is ideal for young investors who can remain invested and take the best benefits. FAQs Which SIP is good for tax savings?  ELSS is the best SIP for good tax savings.   Can mutual funds be used for tax savings?  Yes, a tax saver mutual fund can be used for saving tax to a great extent in the long run.   Which is better, SIP or ELSS?  If you want to invest at the end of a financial year, then a tax-saving mutual fund will be the best option. But, if you want to have a constant source of income then SIPs are the best option. Who should invest in tax-saving funds? If you are young and are paying taxes, you can make the most out of the dual benefit of investing in a tax-saving mutual fund.   Older people need to consider other investment options that come with no or lower capital risk.   Investments need to possess a flexible long-term horizon for reaching the best benefits or assuring better returns. So, it is recommended to invest for a duration of approximately 6 to 7 years for getting long-term advantages.   How does a tax saver mutual fund work? Tax-saver mutual funds collect money from many investors. They invest the money in the equity market. The equity market is the stock market or the share market which is a combination of cells and buyers of stocks. They may also include the securities that are listed on public stocks. TALK TO AN EXPERT

In the previous article, we discussed how much salary to invest in mutual funds. In this article, we will discuss how to invest in direct mutual funds Mutual funds are the best way to peek into different and top-performing securities without constantly researching and handpicking them. It allows individuals the flexibility to invest and maintain excellent returns. It invests in stocks, bonds, and equities by pooling money from different companies.  Under this, an investor buys shares either directly or through a broker. The price that an investor pays per share is the net asset value plus other fees. Mutual funds are redeemable, which is one of their best features. An investor can sell the securities anytime, and the fund generally transfers the payment within seven working days. Direct and regular mutual funds make investing in mutual funds easier.  The blog talks about how to invest in direct mutual funds carefully. So, if you are worried about how to buy mutual funds directly, the blog is worth a read. What do direct mutual funds imply?   Direct funds are those offered by the fund house or Asset Management Company. AMC invests funds from clients by utilizing capital by investing in liquid assets like Stocks, bonds, real estate, and partnerships.  In “Direct” mutual funds, no third party intervenes in the transaction, and the investor directly interacts with AMC regarding the funds. Since the fund eliminates any third-party interaction, there are no brokerage fees or commissions here, and it is the primary difference between direct and regular funds. SIP in Mutual Funds Read More How do direct mutual funds differ from regular funds?   Direct and Regular Funds are the two options for investors to invest in mutual funds. These two differ drastically. The table below can be useful if you're having trouble deciding which to pick.  Direct mutual fundsIndirect mutual fundsIn this, the investor directly deals with AMC to purchase funds In this, the broker connects the investor with AMCAn investor can purchase an investment plan directly from the website The broker helps investors to pick the best plans. Direct Mutual Funds do not provide any facilities. The broker helps the investor with the account setup, documentation, and other legalities. No brokerage fees.The broker charges fees for his expertise and assistance.  The Total Expense Ratio (TER) and Net Asset Value (NAV) are significant parameters that investors must check before choosing the proper funds.  What are some tangible advantages of direct funds?  These funds have a lower expense ratio that translates into higher returns.  It keeps compounding for several years   It is better than reserving funds under the same scheme  Figure out the best way to invest in a direct fund and multiply your wealth.  Source: pixabay Top 8 mutual funds to invest in India in 2022?  Are you searching for the best direct mutual funds to invest in India? Check this out!  As per Economic Times’s June 2022 research, the best mutual funds to invest in are:  Parag Parikh Long-Term Equity Fund  Axis Bluechip Fund  Mirae Asset Large Cap Fund  Kotak Emergency Equity Fund  UTI Flexi Cap Fund  SBI Small Cap Fund  SBI Equity Hybrid Fund  Axis Midcap fund  Before exploring investment schemes in direct mutual funds in India, check the category and investment objective.  What are open-ended mutual funds? Read More 3 best ways to invest in direct mutual funds  You can invest in direct Mutual Funds both ways, online and offline. Invest online if you wish to avoid the hassle of conducting physical visits.  You will need to meet the KYC eligibility before investing. You must attach the following documents to become KYC compliant:  Identity proof (Aadhaar card, driving license, or Voter ID)  A PAN Card  Address proof  A passport-size photo  https://www.youtube.com/watch?v=7hXeSyWLiZ4 You can invest in Direct funds via many options.  Investment in Direct funds through AMC To invest in this, choose the scheme you like. Post that follows the below steps:  Step 1- Make an AMC account  Step 2- By choosing Plan Type as “Direct,” select the scheme  Step 3- Choose between Dividend and Growth. Choose according to the investment objective.  Step 4- Select an investment Plan or Lumpsum  Step 5- Select between a Demat account or trading without one  Step 6- Choose the payment Mode  Step 7- Confirm the bank details- IFSC code, account number, account holder name, and account type  Verify the details, and you are all set to go! Conclude the transaction using the verified payment mode. Once done, you will receive a quick ping confirming the same.  Invest in direct funds through a broker  One of the ways to invest in direct mutual funds is through a broker.    Choose a broker or a registrar to assist you in the process. The mutual fund program you want to invest in needs to adhere to the list, and the registrar or broker must have it in their brochure.  If confused, you can invest in the Direct Mutual Fund Scheme through SEBI. It has multiple platforms for Registered Investment Advisors, and you can leverage these.  Visit CAMS and KARVY, and view the investment opportunities on the portals.    Check out the mutual fund's utility option  Mutual Funds Utility is your best option if you wish to invest and transact across multiple utilities. It is a shared platform of unique fund houses.  You can begin investing in multiple funds just by creating an account. To invest in direct funds through MFU, CAN is mandatory. CAN (Common Account Number) helps check all the mutual fund portfolios and provides a consolidated view. You can create a CAN ID in 3 easy ways:  STEP 1: Visit the official website of MFU India   STEP 2: Select the CAN criteria  STEP 3: Select the holding Type  And you are good to go!   These are some ways to invest in Direct Mutual Funds. You can choose from online and offline modes. Pick the best Direct Mutual funds scheme and invest carefully. FAQs What are direct mutual funds? Direct mutual funds are offered by the fund house or AMC, allowing investors to directly interact with the AMC without third-party intervention, resulting in no brokerage fees. How do direct mutual funds differ from regular funds? Direct funds involve direct interaction with the AMC, with no brokerage fees. Regular funds involve brokers who charge fees for assistance and account setup. What are the advantages of direct funds? Direct funds have lower expense ratios, higher returns, and better compounding over the years, making them a preferable choice for investing. What are the top direct mutual funds to invest in India? As of June 2022, some top direct mutual funds in India are the Parag Parikh Long-Term Equity Fund, Axis Bluechip Fund, Mirae Asset Large Cap Fund, and more. TALK TO AN EXPERT

In the previous article, we discussed AUM in mutual funds in this article, we will discuss what is foreign investment. Financial institutions and individuals wishing to diversify their investment portfolios seek multiple ways to earn outside income. The increasing inclination toward stocks, IPOs, and bonds investments sparked the individual’s interest. They keep up with the latest investment updates.   Apart from this, Foreign Investment is considered a growth catalyst for India. Companies exploring opportunities for business expansion internationally benefit from it the most. Goldman Sachs, J.P Morgan, and Morgan Stanley are some leading international investors.   Some businesses seek opportunities to capitalize on relatively economic labor and production costs. Likewise, Indian companies seek relaxation from a tax perspective internationally.   There is a lot to know & understand about investments. The blog discusses nearly every nut and bolt of foreign investments.   If you are an active or ambitious investor seeking opportunities to invest in foreign stocks, this blog is worth a read. Let’s begin with the first things first.  What does foreign investment imply?   Foreign investment implies an investment of a native business or a company in the assets of an international company. It generally includes long-term physical investments made by an Indian company in a foreign company, listed on the stock exchange.   Foreign investment is of two types: Direct and Indirect. It involves cash flow transactions between countries. If the investor's stake is higher in a company, he shares the right to regulate the company’s decisions. These are long-term physical investments like - bridges, damn, and infrastructure in foreign countries.    For example, if a person or a business holds (a 75%) share in the company, they share the larger portion of the company’s equities available in the market. They can regulate and dominate the company’s decisions.   So, are you now clear about – What is the foreign investment?   Let’s move on to the most asked query under this.  What are the most popular types of overseas investment opportunities?  Foreign investments have two main categories- direct and indirect investments.  Direct Investments   Foreign direct investments are the equipment, plant, or factory an investor purchases in a foreign country.  Indirect Investments   Indirect investments imply purchasing stocks and equities of foreign companies listed in their respective countries.   Direct investments are much in demand than indirect investments owing to the long-term benefit prospect. The value of these tangible assets multiplies more than liquid assets. These boost the country’s economic status over time.  In contrast, indirect investments are short-lived. These are time-sensitive investments that do not share any future scope or value.    Given this, who can legally invest in these assets? Let’s find out.  source: pixabay Who is eligible for foreign investment?   Most individuals are anxiously googling-   “What is foreign investment?”  “How does the foreign investment work?”  There is so much to explore on the topic. But before that, one should be knowledgeable about the eligibility criteria to invest internationally.   If you are considering an overseas investment, check whether you meet the below criteria set by RBI (Reserve Bank of India):  Residents, corporate entities, and partnership companies registered under the Indian Partnership Act of 1932 are eligible for foreign investments.   These individuals can invest in foreign ventures or wholly owned subsidies.   Residents may invest according to Q3 of the law.  How can residents invest in foreign companies or ventures?   Residents can invest in foreign investments without any restrictions or limits. The companies they tend to invest in must have a 10% share in an Indian company listed on a stock exchange in India. It should be listed as of 1st January as the investment year.   How are foreign investments beneficial for the Indian economy?   FDI occurs when an individual or a company holds 10% dominance in a foreign asset or company. If an individual or business owns less than that, IMF deems it as a part of the stock portfolio. It might not grant complete control over the company’s politics but a percentage to investors.   Foreign direct investment grants power and dominance to influence the foreign firm’s operations. Foreign investment can prove beneficial for the existing economy.   1. Funding and expertise   Developing nations require the apt tangent and growth momentum to utilize their potential. Corporations operating in these countries need the expertise, guidance, and funding to expand business operations. Here Foreign investment proves profitable in upscaling a brand and nurturing its prospects.   As per research, “Global FDI collapsed in 2020 and plummeted from $1.5 trillion in 2019 to $859 billion”. It is the lowest ever recorded since 2008.  However, as per recent stats by Hindustan Times, “ The FDI inflow has increased by 23% after COVID blues. March 2020-2022 recorded an inflow of $171.84 billion inflow.”  It stands in steep contrast to $141.10 billion between February 2018-and 2020.  Thus, investments in the country can prove a breakthrough in economic terms.   2. Increases employment opportunities    What follows with growth is personal development.   India is facing the harshest blow post-COVID-19, she needs a comeback. With businesses shutting down, the country is losing momentum. FDI can breathe in the needed inspiration.   However, India can prosper independently, but a mere international push can open up a wide growth arena for the country and its people. FDI help create employment opportunities, especially in the manufacturing industry. It not only boosts the economy but makes its people independent.  3. Access to leading-edge tools and technology  To compete in the international market and gain an edge, India must optimize its economic structure. Foreign investment is one of the panaceas that share the potential to rationalize it.    It can promote access to advanced tools and technology that help streamline a business process and economic growth.  These are some popular growth opportunities that foreign investment can provide.  Which country topped the FDI index of India in 2022?   Singapore topped the FDI index with a share of 27%. It is followed by big giants US (18%) and Mauritius (16%) respectively.   What does FDI cover for India in the future?   As per Business Standard, “India recorded the highest ever annual FDI of $83.57 billion in the year 2021-22.” It reveals a progressive India in the coming years.   Furthermore, the “FDI to GDP ratio may rise by 2025.” The recent shift in FDI structure and the “Atmanirbhar Bharat” policy provoked the estimation.   Conclusion  It is evident from the listed facts and figures that foreign investment can ensure a profitable shift in the Indian economy.   If you are still confused regarding “What is the foreign investment?”, detailed research and analysis will help you gauge the importance of FDI from the Indian perspective. Consult an expert advisor to get the right plan for you   TALK TO AN EXPERT

Moving to America, living in the Big Apple, and making money in US dollars – is an aspiration of millions of Indians. While moving to America may not be possible for everyone, one thing is definite, you can make money in US dollars from anywhere in the world with just one tap! How? By investing in US stock markets, you can invest in dollars and watch your money grow greener.   The US stock exchange is the world’s largest investment market in the world. It offers tremendous opportunities for growth and allows investors from across the globe to invest in selected securities, stocks, and ETFs across indices.   Indian investors who hold Indian stocks have the option to own some of the world's most extensive blue-chip reserves located in India.  Invest in US Stocks Let's look at some reasons you should invest in the US stock market while building a portfolio.  Geographic diversity  All of the key US stock exchanges have companies listed worldwide, making it a potential investment destination. Investing in the US share market diversifies your financial portfolio while investing in worldwide companies.   A national emergency could lower the rating. The effect, however, would be negligible. On the other hand, Indian firms dominate Indian indexes. Even minor unrest in the nation might send the indexes crashing.   The American stock market is varied and robust in times of adversity. However, in India, this is not the case.  Asset-based diversification, industry-based diversification, time-based diversification, and geography-based diversification are the four core tenets of diversification.   Whereas most investors are good at asset, industry, and temporal diversity, most investors' portfolios lack geographic diversification. Your holdings are not confined to a single location when you use a geography-based diversification approach.  Benefits of Investing in the US Stock Market Read More Participating in the largest stock market  The equity market in the United States is the largest in the world. The US financial markets accounted for 54.5 percent of worldwide stock market value as of December 2021.   As of March 2022, the New York Stock Exchange (NYSE), the world's largest stock exchange, had a market capitalization of about $27.69 trillion.  US Stock Market Timing Read More Being a part of global companies  Some of the brands we use daily, such as Facebook (now Meta), Apple, Google, Amazon, and others, are publicly traded in the United States.   In addition to these global giants, you can also buy shares in new firms in industries that are bound to expand across the globe, such as AI technologies, cloud-based services, and electric cars.   Investing in firms or ETFs registered on the US securities exchange can provide exposure to these areas.  Source: pixabay Better potential results  The US equity market has a higher return than the Indian share market. The NYSE lists companies from all over the world and those from the United States.   Investments in US stocks can help you get a good return on your money because global corporations are there, and the return you receive will be high due to various factors.  Explore US Market Access to fractional investing  Unlike India, you can hold US stocks in fractions. After all, buying a single Google share is out of range for most individuals.   You can own a part of the company for as little as Rs 1,000 or even less. You can acquire more or build a portfolio of US shares over time if you only have a certain amount of money.  Currency gains  According to historical data, the Indian Rupee has been losing value against the US dollar, and there is a probability that this trend may continue.   The rupee-to-dollar exchange rate influences the profit you make from foreign equities. Any weakening of the rupee helps to boost profits if dollar-denominated investments such as US shares appreciate.   Even if global markets are disappointed or remain steady, you benefit if the rupee falls against the dollar.  Apart from these worldly benefits, one also has a few psychological benefits associated with such investments. Such investments help fulfill your aspirations and goals conveniently.   We all have ambitions to study, travel, or even live overseas worldwide. When you invest in the stock markets of the United States, you are trading in US dollars, so you may effortlessly save for all of these worldwide goals without having to worry about currency risk.  Investing in US equities from India is easy, straightforward, and rapid. You can purchase Nasdaq stocks or trade thousands of ETFs and stocks on other top indexes such as the S&P 500, Nasdaq 100, Dow 30 or Russell 2000 Index from India.  The US stock market contains a diverse range of top worldwide corporations, from technology to pharmaceuticals and from large-cap to small-cap equities.   The FAANG stocks – Facebook, Apple, Amazon, Netflix, and Google – are ready to be bought now that the US share market is showing weakness. It's time to start accumulating them to build long-term riches! FAQs Why should I invest in the US stock market as an Indian investor? Investing in the US stock market offers geographic diversity, access to global companies, better potential results, fractional investing, and currency gains, providing opportunities for growth and diversification. What are the advantages of geographic diversification in the US stock market? Geographic diversification allows you to invest in companies listed worldwide, reducing risk by not being confined to a single location and providing exposure to a variety of markets and economies. How can investing in the US stock market give me exposure to global companies? Many global giants, such as Facebook (now Meta), Apple, Google, and Amazon, are publicly traded in the US. Additionally, investing in US securities exchanges allows access to emerging industries like AI technologies, cloud-based services, and electric cars.

“ETF trading at a premium?” or "What's the deal with ETF B selling at a loss?" Y. These are some questions you are likely to hear whenever advisors talk about ETFs. You can understand this better if you understand the different costs of ETF transactions.  ETFs have multiple "prices," as perplexing as they may appear. There's the actual value, determined by the net asset value (NAV) after each day and the intraday NAV (iNAV) in the midst.   The NAV of bond ETFs is set by the bid prices of the portfolio's underlying bonds. The NAV of an equity ETF is given by the most recent trading prices of the underlying stocks. The NAV is calculated based on the previous trading day's closing.  However, since ETFs are actively traded on a stock exchange, they have a current market price which may differ from their actual value. This market price will determine the premiums and discounts.   The ETF's latest traded price determines the market price of both equities and bond ETFs. For a stock ETF, that price will often fall within the bid-ask spread of the underlying basket of securities, but bond ETFs would more likely trade at a premium because the NAV is set at the lesser bid price.  If the price of an ETF is higher than its determined NAV, it trades at a "premium." In contrast, if the ETF's price is below its NAV, it trades at a "discount."  ETF prices and NAV are often closed in relatively calm markets. When stock markets become choppy, however, ETFs respond swiftly to shifts in market sentiment, whereas NAV may take longer to adjust, leading to premiums and discounts.  Let's look at it illustratively,   The market price of an equity ETF will often fluctuate within the basket's bid-ask spread. When the ETF's supply and demand are roughly balanced, trading takes place on the secondary market.   The ETF's market price may be momentarily pushed outside the limitations of the fundamental basket when there are more buyers and sellers in the market. Traders might profit from the gap between the ETF's market rate and the prices of the underlying securities if the ETF trades at a significant premium or discount.  When this occurs, the market maker can go to the primary market to deal with the ETF sponsor, issuing new ETF units when prices increase and redeeming ETF units when supply is low.   The primary market aids in re-aligning the ETF market price with the NAV. However, because the expenses are determined by the creation/redemption process, the ETF would often trade at a higher premium or discount to mirror those costs until the two-way order flow in the ETF recovers.  Since the ETF and its fundamental securities are two separate liquidity pools that are only loosely connected, this can happen at any time during the trading day.   Suppose bullish investors start bidding up an ETF more aggressively than its underlying securities. In that case, the ETF's price may climb faster than the underlying securities' price and, as a result, trade at a premium.   Similarly, if bearish investors sell an ETF aggressively, it may trade at a discount to its underlying stocks. Alternatively, premiums or discounts may develop if the ETF and its constituent stocks trade on exchanges in separate time zones.  Pricing transparency is offered through ETFs, which allow you to acquire the intraday price of any asset type. The problem is that the trade costs are explicit unlike mutual funds, they are not reduced to a single number by the end of the trading day.  It's critical to keep trading expenses in mind, especially in less liquid markets, and to resist following the herd, which can lead to acquiring at a markup and selling at a discount.   Despite their "designed for speed" nature, ETFs are still the best choice for long-term exposure to specific asset classes. FAQs What is the difference between the actual value and the market price of an ETF? ETFs have an actual value determined by the net asset value (NAV) based on the underlying securities prices. The market price, on the other hand, is influenced by supply and demand on the stock exchange and may differ from the actual value, leading to premiums or discounts. What does it mean when an ETF trades at a premium or a discount? If an ETF's market price is higher than its determined NAV, it trades at a premium. Conversely, if the ETF's market price is below its NAV, it trades at a discount. Premiums and discounts occur due to the interplay of supply and demand in the market. Why do premiums and discounts occur in ETF trading? ETFs respond swiftly to shifts in market sentiment, causing their market price to fluctuate more quickly than the NAV. In choppy markets, this can lead to premiums or discounts as the market price adjusts while the NAV may take longer to catch up. Consult an expert advisor to get the right plan for you  TALK TO AN EXPERT

Previously we discussed 5 things to consider before sending your child abroad for education. In this article, we will discuss how to plan your child's bachelors in Australia. Are you planning your child's bachelor's in Australia? Why wouldn’t you? Australia's excellent educational system, laid-back nature, with high living standards make it a perfect choice for parents and students alike. https://www.youtube.com/watch?v=MwQWKYxxJ8o How prospective is Australia in pursuing a bachelor's education?  The unique opportunities of studying bachelor's in Australia extend beyond the classroom program. It is about getting an excellent culture for study and work. There are great placement opportunities with average to good salary packages. There is also the flexibility of part or full-time study programs.   Given the job opportunities and thriving conditions in sectors like finance, tourism, education, agriculture, and construction in Australia, students have ample options to choose from for jobs.    The post-pandemic reforms introduced by the Australian government like extending student work hours, offering students to return to Australia to find work on their work permits as well as increasing the tenure of post-work visa has made Australia can an excellent place to not only study but to build a career.   https://www.youtube.com/watch?v=Ew2MC3RCo68 Let's look at some prominent reasons to choose Australia for undergraduate studies. University offers academic excellence   Australia has some of the best universities, offering top education systems for international students. The quality of education and commitment of faculty is evident in the international ranking that the universities get.     Internships and placements are advantageous   Most study programs in Australia offer internships or placement opportunities. With unique options, students get a chance to have better experiences and discover advanced jobs or career opportunities. It gives way to better understanding skills and improves communication among aspirants.   The study program with scop for an internship is beneficial as it gives students a work experience with practical experience. From this, students get an understanding of work-life culture. They can learn how to implement their study of course program into the practical field. Therefore, internships are golden scopes for students to acquire knowledge, apply it in-field, and eventually hone their skills.   That being said, choosing a bachelor's program that offers either an internship or good placement opportunities for students is better. Discover a welcoming university life   Australia is the right place to provide adequate support to international students. Be it about getting a job, finding accommodation, networking, and others, it has plenty of options.   Therefore, Australia has a welcoming environment for international students, helping them adjust to the new education system. In addition, it helps students organize and get accommodation easily.   The universities focus on a problem-based learning approach, helping students become independent learners. The class patterns are flexible, and the study approach makes it easy for the students to cope with the educational system.   source: pixabay What is the cost of living in Australia?  Before packing your child’s bags, make sure you are aware of the study program packages in Australia and the cost of living. Top-class education isn’t cheap and so check its scholarship options available for international students. There are eligibility criteria to avail of scholarships, and one should check them before applying.   1. Tuition fees   The Australian universities’ tuition fees are among the highest in the world. For a bachelor’s degree, it is 20000 and 45000 AUD yearly. The private ones are more costly and may not offer scholarship benefits.   2. Accommodation fees   The on-campus accommodation is affordable, which starts at around 440 AUD monthly than any other accommodation in Australia. The rent of a place may take around 1300 AUD to 1750 AUD. Even the monthly grocery costs are around 300 to 600 AUD. So, the overall living costs are approximately 1200 AUD monthly in some cities, which can rise to 1500 AUD in other cities.   Plan your expenses, and make sure you have some money left for monthly savings. When planning to send your child for a bachelor’s in Australia, it is important to have this in mind.   The Hidden Cost of Education in Australia Read More How do financially plan for your child’s bachelor's?  Whether you pick Australia or any other country for your child’s bachelor's, you need to start saving. The average cost of education is rising at an unprecedented rate and the only way to meet this cost is to start saving aggressively!   Today, the yearly expense to support your child in Australia can be anywhere between Rs. 10-20 lakhs. This cost greatly varies based on your child’s needs and lifestyle, however, it’s important to remember that your child may have to pay double this amount when it’s their time to study in the country due to education inflation.   So, calculate in advance how much you need to send your child to Australia, create a financial plan with the help of an expert, and start saving via SIPs to ensure you have the funds you need when it’s time to send your child to the land of opportunity!  FAQs How do I start planning my child's bachelor's degree in Australia? Start by researching universities and courses in Australia. Consider factors such as reputation, rankings, course offerings, and tuition fees. Look into admission requirements, including English language proficiency tests. Plan for accommodation, student visas, and finances. Seek guidance from education consultants or online resources. What are the steps to apply to universities in Australia? Check application deadlines and gather required documents, including academic transcripts, English language test scores, and recommendation letters. Submit online applications through the university's admission portal. Pay the application fees and monitor communication from the university regarding the application status and any additional requirements. How can I support my child's transition to studying in Australia? Help your child with pre-departure preparations, such as obtaining a student visa, booking flights, and organizing travel insurance. Familiarise them with Australian culture, lifestyle, and local customs. Connect with university orientation programs and student support services. Encourage open communication and emotional support throughout their journey. TALK TO AN EXPERT

Individuals' interest in index funds is increasing due to an overarching desire to compound and capitalize on wealth.   Amid constant volatility in markets, it has become imperative to explore investment ways that dilute any potential risks of losing on high-return investments.  This is why people are incredibly inclined toward building different buckets instead of leaving all eggs in a single basket. In investment terms, diversifying the portfolio by investing in different equities and sectors is one of the best techniques to evade market risks.  It is where investment in index funds emerges as a market dominator in the current Indian scenario.   What are Index funds?  Index funds work differently from active funds. These funds are appropriate for those wishing to evade risk and diversify investment. One can only manage the investments passively.   It implies that a person cannot invest directly in an index but through mutual funds called “Index Funds.” A manager or investor invests in the same equities as present in the index.  The market index leverages a company’s market capitalization to determine the total weightage of securities in the index. The total value of the company shares is equivalent to the number of outstanding shares.  As per Economic Times, “Since February 2020, the number of index funds has surged 144% and the assets managed by these investors grew by 590%”.   As a part of the ongoing research by the Economic Times, “The number of index funds grew from 32 in February to 78 in July 2020”. ETF draws the investor’s interest during this phase.  https://www.youtube.com/shorts/FlrxZAJjemE Who should invest in index funds?   Investments in index funds are profitable only for a selective bunch. If you meet the below investment behavior, index funds are just right for you:  You wish to evade any risks associated with investment/slash investment risks  You want to diversify your portfolio by starting and investing a low amount  You prefer to invest only a fixed amount in a particular index fund  You would like to invest in multiple investment forms – like real estate, gold, equities  Early savings help in child's future Read More How to invest in index funds?   Index Funds are a type of investment vehicle like mutual funds and exchange-traded funds that help achieve results on specific indexes. Here is how you can invest in index funds:   1. Figure out your investment goals  Before investing, it is important to ensure clarity over the present and future financial goals.   When do you want to retire?   How long till you achieve your financial goals?   What do your risk appetite and budget look like?   2. Pick one index to invest in  Index Funds, apart from helping diversify the investment, track broad sectors like large capitals and emerging markets. Different index types serve different purposes.   While deciding on the index to invest in, analyze the below parameter:   Which industry do you share knowledge in and is growing lately?   How much is your risk tolerance?   What are the company size and market capitalization?  What index fund would you find comfortable investing in (stocks, bonds, or commodities)?   Highlighting and improvising on these parameters will help you choose the right index fund. It will help build a growth foundation.   3. Decide the index funds to invest in  Each fund and company has different marketing capital, growth potential, and shares available to invest in. The best research method is by researching Asset Under Management (AUM). It is the total investment value that an expert manages on the client's behalf. Analyze the AUM index of a given fund and the ease of trading.  Here are some best index funds for 2022:  IDBI Nifty Junior Index Fund Growth  ICICI Prudential Nifty 50 Index Plan Direct-Growth  UTI Nifty Next 50 Index Fund Direct-Growth  As per ClearTax - “IDBI Nifty Junior Index Fund Direct Plan-Growth, is one of the most profitable index funds in India."  Index funds companies can vary in their short and long-term costs.  4. Sign up for a brokerage account   After signing up for a brokerage account, utilize the above points to figure out the best index funds to invest in. Here, an investment expert may help you meet the purpose according to your financial goals.   In the initial stage, having expert backing works well. An expert can help you develop an investment strategy that aligns with personalized financial goals. It makes investment in index funds a smooth journey.   5. Manage investments cautiously   It is important to manage and check potential opportunities for growth. Start with small investments and set up automatic monthly deductions. Monitor the fluctuations and returns throughout the year. Modify the strategy if the market demands.  While Index funds are a great way to start investing, it's good to remember no market is without risks. FAQs What are the benefits of investing in index funds in India? Index funds offer benefits such as broad market exposure, diversification, low costs, and simplicity. They track a specific index, like the Nifty 50 or BSE Sensex, providing exposure to multiple stocks. Their passive nature keeps costs lower compared to actively managed funds. Index funds are easy to understand and suitable for long-term investors seeking market returns. How can I choose the right index fund in India? Consider factors like the index being tracked, fund performance, expense ratio, and fund house reputation. Look for funds with a low tracking error and a consistent track record. Evaluate the fund's size and liquidity. Read the scheme's offer documents, prospectus, and seek expert opinions to make an informed decision. What are the risks associated with investing in index funds in India? Index funds are subject to market risks and fluctuations. Their returns are influenced by the performance of the underlying index. If the index experiences a downturn, the fund's value will also decline. Additionally, tracking errors may occur, resulting in deviations from the index's performance. It's important to understand these risks and have a long-term investment horizon when investing in index funds. Consult an expert advisor to get the right plan for you  TALK TO AN EXPERT

ETFs (exchange-traded funds) give investors access to a diverse portfolio of equities and bonds.   They're versatile investment vehicles employed in various ways within a portfolio to fulfill different investment requirements and objectives. ETFs, like stocks, can be traded on an exchange at any time of day.  An advantage associated with the ETFs compared to their mutual fund counterpart is the liquidity related to the ETFs. ETFs are a substitute for holding several stocks.   However, unlike stocks, ETFs have a very different connotation associated with liquidity.  ParameterETFSharePriceBased on underlying securitiesBased on the supply and demand metrics of the shareSupplyOpen-ended i.e. can be created and redeemed as per needClosed-endedPrimary Source of liquidityLiquidity of underlying securitiesThe trading activity of the sharesThe best measure of liquidityThe trading volume of underlying securitiesThe trading volume of share What are E-Retail ETFs? Read More Two different types of allied ETFs liquidities - Primary and Secondary Liquidity.  Primary liquidity  The primary market is where the process of creation and redemption takes place. If a designated broker or market maker sees a demand for a specific ETF, they can issue new units by delivering a basket of assets to the ETF sponsor.   In exchange, the ETF sponsor provides the market maker with ETF units of equal value, which the market maker subsequently sells publicly on the business to meet investor demand. In the event of redemption, the process can be reversed when the supply of units exceeds demand.   The primary market is concerned with the high demand and supply of institutional or non-institutional investors who buy and sell ETF shares in bulk in tandem with the Authorized Participant.   In the primary market, investors utilize an "authorized participant" (AP) to adjust the supply of ETP shares available either to sell a large basket of shares ("redeem") or to buy a large basket of shares ("create").  Primary Liquidity is the liquidity associated with the ease of creating and redeeming ETF shares with the help of underlying securities. The liquidity of the underlying securities plays a significant role in determining the liquidity of the ETF shares in the primary market.  Source: freepik Secondary liquidity  Secondary Liquidity is the liquidity associated with the already created ETF shares in the stock market. This liquidity is generally the visible liquidity on the market.   The non-institutional investors or investors with a smaller scale of operations generally are concerned with this type of liquidity. Investors buy and sell ETF units on the secondary market without the involvement of the ETF issuer.   Individual investor transactions take place at market prices throughout the trading day. The determinants of the liquidity of Primary and Secondary Liquidity of ETFs are very different.   Liquidity in the primary market depends upon the value of the underlying shares that back up the ETF. While liquidity in the secondary market depends upon the weight of ETF shares traded.   When executing a large trade that runs into thousands of ETF shares, investors can circumvent an illiquid secondary market by directly engaging with the AP to create new shares in the primary market.   The liquidity of the underlying securities and the liquidity of the ETF in the primary market share a direct relationship. The more efficiently an AP can access the underlying market, the more ETF shares it can create and redeem.  Unfortunately, most retail or small-scale institutional investors rely on secondary markets for their portfolio allocation. The liquidity in the secondary market can be judged by various statistics such as average spreads, average trading volume, and premiums or discounts, i.e., the value of the ETF (is it near the NAV).  The volume of an ETF is often seen as a measure of liquidity, which is incorrect. The liquidity of an ETF is influenced by the liquidity of the underlying securities, whereas trading volume is affected by investor activity.  Suppose an ETF invests in securities with limited supply or that are difficult to trade. In that case, market makers may be unable to create or redeem units of the ETF, affecting the portfolio's liquidity FAQs What is ETF liquidity and why is it important for investors? ETF liquidity refers to the ease with which an ETF (Exchange-Traded Fund) can be bought or sold in the market without significantly impacting its price. Liquidity is crucial for investors as it ensures that they can enter or exit their ETF positions swiftly and at a fair market price. How is ETF liquidity determined? ETF liquidity is primarily determined by the trading volume and the presence of active market makers. Higher trading volume indicates greater liquidity, as it implies a larger number of buyers and sellers. Additionally, the involvement of market makers, who provide continuous bid and ask prices, enhances liquidity by facilitating smooth transactions. What are the advantages of investing in highly liquid ETFs? Investing in highly liquid ETFs offers several advantages. Firstly, it ensures ease of buying and selling, allowing investors to enter or exit positions promptly. Secondly, high liquidity reduces the bid-ask spread, resulting in lower transaction costs. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

‘Har Rishta Bola, Mere Naam Ki Coca-Cola' - is one of the most successful marketing strategies and ads India has ever seen. Every Indian has had Coca-Cola in his life and gone back for more!   This MNC has been present worldwide and has been doing great business since its inception and launch on 29th January 1892. The Coca-Cola Company (KO) is the most valuable soft drink brand in the world, with worldwide revenues touching 38.66 billion US dollars!  Coca-Cola is also available in nearly every country on the earth. Primarily due to its broad and comprehensive distribution system that ensures that the company's products reach their end customers quickly and efficiently.   It is also a brand with a high level of worldwide brand awareness. Customers worldwide trust the company and are more likely to choose it over its competitors like Pepsi, Keurig Dr. Pepper, or Red Bull. A highly successful marketing campaign has bolstered Coca-Cola.  While Coca-Cola continues to be the most common choice, the company also owns other well-known products and brands such as Sprite, Fanta, and Minute Maid which have been a huge success in the Indian subcontinent.   The company has experimented with minimal sugar and nil sugar products like Coke-Zero, and created beverages like iced teas and flavored water, in response to the rising demand for healthier beverages.  The Coca-Cola Company's shares (KO) are available for investment on the New York Stock Exchange, with all values in US dollars. Let's first look at some basic stuff associated with the company.  Latest market close$62.5752-week range50.17 - 63.02Dividend yield 2.81%Earnings per share$2.25Beta0.66Market Capitalization$ 272 billionAverage Volume (3m)19,665,333PE ratio 27.75 There are three ways in which you can invest in Coca-Cola from India  1. The direct way  You can trade in Coca-Cola from India by registering on a US brokerage account using apps that offer US stocks or foreign investment opportunities. You can either invest directly through its apps through a minimal brokerage or zero brokerage. All you need is a bank account, your Aadhar card/proof of address and your PAN card to get started.    2. The ETF way  Investing via ETFs in Coca-Cola is another way to invest in the company from India. ETF stands for Exchange-traded fund. It is a group of stocks and bonds compiled by ETF managers to help you invest more efficiently.    ETFs are similar to Mutual Funds and they are managed differently. ETFs are traded on a stock exchange like stocks and are a more efficient way to buy shares of big companies and an affordable way to enter a highly competitive market.   Some ETFs like Consumer Staples Select Sector SPDR Fund ETF, contain Coca-Cola as one of its top holdings. The ETF's holdings include food & essentials, retail, household items, food products, and other industries. You can easily invest in these through different investment platforms from the comfort of your home with no physical paperwork.    Another option for investing in Coca-Cola through investing in S&P 500. For instance, Coca-Cola is a part of the Motilal Oswal S&P 500 Index Fund; by investing in this fund, you can be a shareholder of Coca-Cola!  An exciting fact is that in order to invest in the above ETFs, you don’t need to create a US account! However, if you are planning on investing in MNCs, there are some benefits of creating a USA brokerage account so that you can track errors that directly affect your returns.   3. The Mutual Fund way  Mutual Fund is the third way to invest in Coca-Cola from India! There are various mutual funds that invest in a large set of companies. You can choose the kind you wish to profit from. There are no caps on investment in Indian rupees, there is no investment restriction.   Coca-Cola is included in several mutual funds, such as the ICICI Prudential US Bluechip Equity Fund but the exposure to this company is largely limited and the expense ratio can affect your returns.  The expense ratio is problematic because investors have to pay an additional expense charged by core global schemes in addition to the administration fee charged by Indian fund houses.      These are some ways to invest in Coca-Cola from India! The company is a global mammoth and being an investor with them comes with its own highs and lows. So, before you start investing your money, understand the risks involved before jumping the gun. FAQs How can I stay updated on Coca-Cola's performance and financial news? To stay updated on Coca-Cola's performance and financial news, you can utilize various sources. These include official company announcements, investor relations websites, financial news portals, business news channels, and reputable financial publications. Regularly monitoring these sources will provide you with valuable insights into Coca-Cola's financial health, strategic developments, and market trends, allowing you to make informed investment decisions. Are there any risks associated with investing in Coca-Cola from India? Like any investment, investing in Coca-Cola from India carries certain risks. These risks include fluctuations in the stock market, changes in consumer preferences, competitive pressures, currency exchange rate risks, and geopolitical factors. It's important to conduct thorough research, diversify your investment portfolio, and consider your risk tolerance before investing in any company, including Coca-Cola. Can I directly purchase Coca-Cola stocks on the Indian stock market? No, you cannot directly purchase Coca-Cola stocks on the Indian stock market. Coca-Cola is a multinational company, and its stocks are listed on foreign stock exchanges like the New York Stock Exchange (NYSE). However, you can invest in Coca-Cola indirectly through mutual funds or ETFs that include Coca-Cola stocks or by considering international investment platforms like EduFund that allow Indian investors to trade in foreign markets.

In the previous article, we discussed how to save your child from a student debt trap. In this article, we will discuss whether should you take a loan for a child's education. The cost of education has been steadily rising. Many parents struggle to provide for their children's educational expenses. Today, the price of an MBA ranges from Rs 10 lacs to Rs 25 lacs.   If you want your child to attend top-tier universities abroad, then the cost automatically multiplies!   Given the exorbitant price of college and the innate desire to give your child the best education possible, you may think about either saving money or borrowing money. Let us examine these two choices in more detail:   Education loan Access to education loans is simple and is given by all of India's leading financial institutions. An advantage of an education loan is that it is readily available.   You don't need to spend years building up a corpus. You can pay for your child's education in a few short weeks. Of course, the interest rate is a major drawback.   An education loan typically has an interest rate between 10% and 13%. Of course, this increases the price of schooling overall, which is already relatively high. Education loans have the drawback that your child will be responsible for paying them back once they are old and working.   Education loan puts undue pressure on your child. They may not be able to pursue a career that aligns with their interests because of the pressure of large repayments. This kind of debt may unnecessarily burden the family finances in the long run.   Thus, taking on an education loan is efficient yet the interest rates and pressure of repayment can be mentally and financially stressful for the family and your child. Let's look at investment as a means of paying for your child's education.   source: pixabay https://www.youtube.com/watch?v=tdwqQH0xkFw Investment Investment is an underutilized way of paying for your child's education. Many parents turn to loans rather than saving for their child's educational needs. Investment requires time and depends upon your child's age and the kind of education they want to pursue in the future. By utilizing a strategy for systematic investment in an equity mutual fund scheme, you can leverage the power of compounding to accumulate a sizable corpus by setting aside a manageable sum each month to pay for your child's education. There are no interest charges or payback obligations. Although you can immediately support your children's education with an education loan, it might not be the most excellent choice.   Your children will eventually be required to contribute a portion of their future income to the debt repayment. The repayment burden frequently emerges as a crucial factor when assessing employment alternatives.  The best way to save for your child's education is through a SIP. Your initial investment and monthly payments are not only considerably less, but you can take care of this significant expense relatively easily compared to taking a loan.  It is important to note that tax exemptions for education loans are allowed only for up to eight years. In contrast, the tax benefits to mutual funds apply even if you invest in equity-linked saving schemes (ELSS) that come with a lock-in period of 3 years.   Coming to the comparison, it seems that equity investments offer more advantages overall than student loans. However, you don't need to pick one; you can combine the two to achieve your objectives efficiently.   Utilizing both will ensure lower interest costs and leave money for unexpected requirements. Perhaps employ more investments rather than loans to fund your children's education. But ultimately, the choice is yours. TALK TO AN EXPERT