Category Archives: Finance

The S&P 500 index is the most widely followed of the major U.S. stock indexes as a gauge of the general stock market's performance and a measure of how significant firms are performing. What is S&P? How does it work?   The S&P 500 (sometimes referred to as the Standard & Poor's 500) is a trademark of the S&P Dow Jones Indices joint venture. It is a stock market index that includes the 500 largest firms in the United States and is often regarded as the most significant predictor of how the stock market in the United States is performing overall.   From a different perspective, the S&P 500 is a statistical measure of the quality of America's 500 largest stocks as an index. The S&P 500 is a standard baseline against whom portfolio success is measured in this context.   Market capitalization is used to weight the S&P 500 index. The value of a company decides how much of an impact it has on the index's performance.   One essential item to note is that, even though these are 500 huge enterprises, there is a vast variation in prices. Several of the index's top companies have over $1 trillion in market capitalizations. This is much more than 200 times the size of the S&P 500's smallest businesses, which have a market capitalization of $6 billion to $7 billion.   Depending on performance-weighted market information for the underlying firms, the value of the S&P 500 index swings during the trading day.   How to invest in the S&P 500? 1. The direct way   By opening a US brokerage account through technology platforms or a foreign brokerage with a direct presence in India, you can invest directly in the world's leading technology businesses like Apple, Tesla, P&G, Visa, NVIDIA, Berkshire Hathaway, etc. listed on S&P 500.   You must send funds to the United States to invest in US stocks. You can do this as an Indian resident under the RBI's Liberalized Remittance Scheme, which allows you to send up to US $250,000 per person per year. Stocks are intrinsically expensive because their prices are denominated in dollars. However, you can acquire fractional shares, so you can start investing in your favorite firms with as little as $1.   2. The ETF way   ETFs are another option for investing in the S&P 500 from India. One approach is to purchase an ETF through a brokerage platform. One example is index ETFs, such as the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500 100 index. Companies including Amazon, Apple, Microsoft, Meta (Facebook), Netflix, Google (Alphabet), and Tesla are among the ETFs' top holdings.   Another method to engage in the S&P 500 from India is to buy ETFs like the Mirae Asset S&P ETF, which invests in US indices. You can trade in these ETFs without opening a new brokerage account in the United States. However, tracking errors in these ETFs may negatively influence your gains.   3. The mutual fund way   In this situation, you'll most likely be investing in funds of funds or a domestic mutual fund that invests in a US mutual fund that invests in the S&P 500. Since the investment would be made in Indian rupees, there is no investment restriction. This strategy, though, may prove to be more expensive. These funds' expenditure ratios are often higher. Motilal Oswal S&P 500 Index Fund is one such Mutual Fund.   As we've seen, there are numerous ways to invest in the S&P 500 and join the world's largest stock market from India. FAQs What is S&P 500? It is a stock market index that includes the 500 largest firms in the United States and is often regarded as the most significant predictor of how the stock market in the United States is performing overall.   How can I invest in S&P 500 through mutual funds in India? You can invest in mutual funds using the EduFund App in India. Here some easy it is to get started: Download the EduFund App from playstore or Apple store. Set up your account by providing Aadhar, PAN card and your bank details. That’s it! You can start investing and explore thousands of mutual funds for a lumpsum or SIP option. Can I start investing with Rs. 1000? Yes, it is possible to invest with Rs. 1000 in mutual funds. There are thousands of mutual funds on the EduFund that offer minimum investment amount as RS. 1000 and even Rs. 500! Another amazing benefit is that there are no hidden charges or fees involved. Using the EduFu,d you can directly invest in the fund. You can also opt for a lumpsum or a SIP option for mutual funds. The main difference is SIP is a recurring monthly investment and lumspum is a one time investment. Start small, start early with EduFund! How can I start a SIP? You can start a SIP on the EduFund. Simplify download the EduFund App, set up your investment account using your Aadhar, PAN card and bank account details. After your account is ready, you can explore all the top mutual funds from top AMCs and start a SIP with just Rs. 500! You can increase your investments periodically with no hidden charges.

As the Indian market is witnessing continuous withdrawals of foreign investments, the USD/INR hit its record low of Rs.80.23 on the 14th of July. As the experts predicted, the rupee hit 80 levels against the U.S. dollar in July 2022, causing a significant shock among investors. Are you worried about saving for your kid's education abroad when the rupee is falling significantly? In this article, let's see how you can hedge over the rising USD rate to save up for a child's higher education. Why has the rupee depreciated? The intrinsic value of the Indian rupee to the U.S. Dollar works on a demand-supply basis. With a higher demand for the U.S. Dollar, the value of the Indian rupee depreciates and vice-versa. The rupee's fall these days is mainly due to high crude oil prices, a strong dollar overseas, and foreign capital outflows. The rupee has declined since early this year, especially after supply chain disruptions because of the Russia-Ukraine war, global economic challenges, inflation, and high crude oil prices, among other issues. Besides, there have been heavy foreign fund outflows from the domestic markets as foreign institutional investors (FIIs) have sold shares worth Rs.2.84 lakh crores this year compared to the withdrawal of Rs. 552 crores in the initial eight months of 2021. As money flows out of India, the rupee-dollar exchange rate gets impacted, depreciating the rupee. Such depreciation puts considerable pressure on the high import prices of crude and raw materials, paving the path for higher imported inflation and production costs besides higher retail inflation What opportunity does this USD appreciation give you? The U.S. Dollar Index has touched levels it hadn’t reached in 10 years. Since the beginning of this year, it has gained 8 percent in value. The main reasons for the rise in the USD rate are an increase in the Fed rate, the Russia-Ukraine war, global sanctions on Russia, soaring commodity prices, China's lockdowns due to covid 19, and Europe's and Japan's economic slowdowns. International investment acts as a hedge against rupee depreciation, also known as currency risk. With the recent rupee fall, Indian investors should take advantage of this opportunity by investing in the U.S. market. Your Indian stock market investments are in INR. However, when you invest overseas (in the U.S. stock markets), it is denoted in dollars. You first convert your money into USD as per the exchange rate to invest and then back to rupee terms during redemption. Whenever the rupee depreciates against the dollar, it means that you earn an additional return on your U.S. investments. You can see how much the USD has appreciated over the past year. In July 2021, the USD to INR rate was recorded at 74.33. On 14th July 2022, the USD to INR was at a record high of Rs. 80.23. After this, the dollar attained a rate of Rs. 79.85 on 24th August 2022. What would this mean for your investment? Overall, the USD has seen a 7.43% increase in its value in INR terms. Let’s understand this with an illustration. If you invest Rs. 10000 in any fund in July 2021 when USD/INR was Rs. 74.33, the investment in Dollar terms is $134. Let’s assume the investments have earned a net return of 0%. Even then, if you redeem it on 24th August 2022, when the USD/INR rate was at Rs. 79.85 compared to the previous rate, your investments are valued at Rs. 10742.63, giving you a gain of Rs.742.63 in a year. Thus, a rupee depreciation results in gains for owners of assets and receivers of income in USD. Saving for your child’s future education amidst this situation When you plan to send your child abroad, for their higher education, as a parent, you are prepared to bear the expenses in that country's currency. Let's take the U.S. in this case. When you send your kid to a renowned college or university in the U.S., you have to pay the tuition fees, living expenses, and other miscellaneous expenses in dollars. As a typical Indian, we always convert Dollars to INR, which we should also do since the income is INR. Now imagine, when you are saving up in INR, is it possible for you to bridge the gap between the two currencies? There would be a significant mismatch in what you're saving vs what you would be spending in dollar terms. But, when you invest in global markets, the U.S. market, in this case, gives you an upper hand to beat inflation and your domestic currency depreciation. If you want to spend in dollars, it is always better to invest in dollars. Now, how is this possible? The significant modes of investment in the U.S. market would be direct stocks, mutual funds, U.S. ETFs, Options, Forex, etc. The most optimum modes of investment in these options would be direct stocks in the U.S. stock market and U.S. ETFs. ETFs are a basket of securities traded on the stock market. ETFs are always a good choice for beginners and investors who do not have much time to invest and manage their investments actively. This investment mode is less time-consuming and offers exposure to every sector and segment of the market, dependent on the investment style of the investors. Conclusion The trade deficits will continue for quite some time, and the rupee is likely to reach 82 levels against the dollar in the third quarter, as per the analysts at Nomura. The rupee might already touch 80 levels before this month's end since there are no positive movements from the MPC committee to tackle the soaring inflation in India or the depreciating rupee value. Moreover, heavy FII inflow in the U.S. market has increased the dollar demand significantly, increasing the USD value. To prepare for your child's higher education, investing in the global markets provides a hedge over currency risk and prepares you for the expenses in that country's currency. With the rising USD rates, you can also see a fundamental value rise in your investment in the dollar. FAQs Why is the rupee depreciating? With a higher demand for the U.S. Dollar, the value of the Indian rupee depreciates and vice-versa. How can you protect your child's savings from currency depreciation in India? A common method to protect your child's savings from currency depreciation is to invest in global markets. Choose US stocks and US ETFs, diversify your portfolio, and invest directly in US dollars so that your child's education savings grow along with the strongest currency. Are international investments a good option? Yes, global investments are good. International investment acts as a hedge against rupee depreciation, also known as currency risk. With the recent rupee fall, Indian investors should take advantage of this opportunity by investing in the U.S. market.

Investing in your child's future is a priority for every parent. The good news is that there are some fixed deposit plans designed for children in India that offer a secure and steady way to save and grow funds for their education, marriage, or other future endeavors. Let’s explore some of the top fixed deposit plans for children in India for education. Use this article as a comprehensive guide to make wise financial choices for their little ones!  Top Fixed Deposit Plans for Children in India Here are some of the best-fixed deposit plans for a child’s education in India that parents should consider!  1. HDFC Bank Kids Advantage Fixed Deposit  Interest Rate: HDFC Bank offers competitive interest rates, currently ranging from 3.50% to 6.25%.  Special Features: This scheme allows parents to invest in their child's name, with a minimum deposit amount of ₹5,000. There's also a facility for monthly interest payouts, which can be beneficial for children's expenses.  2. ICICI Bank Young Stars Fixed Deposit  Interest Rate: ICICI Bank provides attractive interest rates on its Young Stars Fixed Deposit, currently ranging from 4.50% to 6.00%.  Special Features: Parents can open this FD on behalf of their child with a minimum deposit amount of ₹5,000. The scheme also offers flexible tenure options.  3. Axis Bank Future Stars Savings Account  Interest Rate: Axis Bank offers interest rates ranging from 3.50% to 6.25%.  Special Features: The Future Stars Savings Account is designed for children, providing them with a dedicated account to save for their future. This account also offers a personalized debit card for the child.  4. IDFC FIRST Bank Kids' Dream Plan  Interest Rate: IDFC FIRST Bank offers competitive interest rates for its Kids' Dream Plan, which vary depending on the tenure.  Special Features: Parents can open this fixed deposit plan for their children with a minimum deposit of ₹10,000. The scheme is designed to help parents build a corpus for their child's dreams, such as education or a grand wedding.  5. SBI Multi Option Deposit Scheme (MODS)  Interest Rate: SBI offers interest rates varying from 3.00% to 5.40%.  Special Features: Although the interest rates may not be the highest, SBI's MODS allows parents to create a linked fixed deposit with a savings account for their child. This provides easy access to funds when needed. https://www.youtube.com/watch?v=bfDZQ9S_ybQ&t=13s Fixed Deposit Plans in India with the Highest Interest Rates Here are some fixed deposit plans in India with the highest interest rates:  1. IDFC FIRST Bank Fixed Deposit  Interest Rate: IDFC FIRST Bank offers competitive interest rates, with rates for regular customers starting at 5.75% and going up to 6.75%. Senior citizens are offered an even more attractive rate of up to 7.25%.  2. Mahindra Finance Fixed Deposit  Interest Rate: Mahindra Finance provides interest rates ranging from 6.75% to 7.50%. Senior citizens receive a higher rate of up to 7.75%.  3. Bajaj Finance Fixed Deposit  Interest Rate: Bajaj Finance offers one of the highest interest rates, ranging from 6.85% to 7.20%. Senior citizens can enjoy even higher rates of up to 7.35%.  4. HDFC Fixed Deposit  Interest Rate: HDFC offers competitive interest rates on fixed deposits, starting from 5.40% and going up to 6.25%. Senior citizens receive an additional interest rate benefit.  5. ICICI Bank Fixed Deposit  Interest Rate: ICICI Bank provides attractive rates on fixed deposits, ranging from 5.50% to 6.00%. Senior citizens enjoy higher interest rates.  6. Kotak Mahindra Bank Fixed Deposit  Interest Rate: Kotak Mahindra Bank offers competitive interest rates, ranging from 4.50% to 5.80%. Senior citizens receive an extra boost to their interest rates.  7. PNB Housing Finance Fixed Deposit  Interest Rate: PNB Housing Finance offers interest rates that start from 6.00% and go up to 6.50%. Senior citizens are entitled to a higher rate of up to 6.75%. Conclusion  Investing in your child's future through fixed deposit plans is a wise financial move. The top fixed deposit plans for children in India offer parents a secure and reliable means to save and grow their funds. By selecting the right plan based on interest rates, flexibility, and other features, parents can take important steps toward ensuring their child's financial security and well-being in the years to come. These plans not only provide financial growth but also teach children the value of saving and investing for their future. 

What is SIP? Before we get into SIP investment myths in India, let's look at what is SIP.? SIP (Systematic Investment Plan) is a disciplined way of investing. In this, the investor makes periodical payments to create a corpus at the end of the investment horizon. SIP mode is one of the effective ways for retail investors to generate wealth over a long period. SIP has become a prevalent mode of investment as you can start as low as Rs.100 depending on the fund. Some advantages of investing via SIP They offer your portfolio the power of compounding. In this, the returns you earn with your existing sip investments get reinvested, and you generate returns on that too. SIPs have a low initial cost; you do not have to start with high amounts and are the best option for retail investors. It offers you the advantage of rupee cost averaging. It is a concept where you acquire more units of the investment when the fund's NAV – Net Asset Value is low. It creates a disciplined way of investing in every investor. This helps the individual to achieve their investment goals and objectives. Start Investing Busting the common SIP investments myths 1. SIP is an investment instrument The common misconception that people have when they start their investment journey is that SIP in itself is an investment product. The common question is, how much will the SIP generate? But one thing to remember is that SIP is not an investment instrument. It is an investment mode through which you can invest in mutual funds. 2. Only small investors should take the SIP route SIP is the best way for a retail investor to start with smaller amounts, but it is not confined to just too small investors. Even investors with higher periodical investments can use SIP to generate wealth. For example, an investor can invest through SIP mode with Rs. 500 or even Rs. 20000 depending on their savings. 3. SIP amount or tenure cannot be modified Investments are meant to be flexible to help smooth an individual's investment journey. People often assume that the SIP tenure and amount cannot be changed, which adds pressure on the investor. This is not the case. SIP tenure and amount can be modified with some conditions involved. In the case of equity funds, there is an exit load if the fund is exited before the one-year tenure is complete. Moreover, ELSS or tax saving schemes have a lock-in of 3 years. But other than this, SIP investments are very flexible to fit the investor’s requirements. Additional read: Is SIP a good way to save for your child’s college? 4. SIP is only for Equity funds SIP investments are recommended more in equity funds as such funds are more exposed to market volatility. However, investing in debt-based mutual funds via SIP mode is equally beneficial. They almost replicate the way recurring deposits (RDs) work but with the potential of better returns. Moreover, you have a variety of debt funds to choose from while making your investment. Understanding SIP investment Read More 5. SIP investments should not be made when the market is booming During a bull run, when the markets are continuously rising, people always think it is not the right time to invest. But this is not correct in the case of SIP investments. When you invest in a SIP mode, the number of units purchased will be less due to the high Net Asset Value (NAV), but SIP is a long-term process. The markets will change and not stay the same due to fluctuations and volatility. When the market falls, SIP investment acquires more units at a discounted NAV, averaging out the overall NAV of the Mutual fund holding in the portfolio. 6. SIP means guaranteed returns SIP investments help you invest in any fund at periodic intervals. They're considered a safer option as you don't have to time the market as in the case of lumpsum investments. But still, Mutual funds are also subjected to market risks and volatility. In the short term, SIPs do not generate guaranteed returns. Instead, SIP helps an investor with long-term capital appreciation. Therefore, every investor should be prepared for market volatility and have a risk appetite before investing. If you are looking to invest in a Mutual fund through the SIP route, be prepared to be invested for a long time with a wealth creation perspective. 7. SIP is a Product SIP is not a product. It is an investment tool. As an investor, you can use it to invest via SIP in stocks, mutual funds, index funds, and even in recurring deposits or PPF. SIP is an excellent investment tool that helps one become a disciplined and consistent investor for the long haul. FAQs Is it worth investing in SIP? Yes, investing in SIP is worth it. SIP (Systematic Investment Plan) is a disciplined way of investing. The investor makes periodical payments to create a corpus at the end of the investment horizon. Is there any chance of loss in SIP? Yes, there can be losses in SIP. SIP is a means of investing in mutual funds, stocks and other investment products. These products are subject to market risk and can fall & rise as a result of market changes. Is investing in SIP profitable? Yes, SIP is profitable. It allows you to invest small sums of money for a long duration and grow it into a sizable corpus. Does SIP have market risk? Yes, SIP does carry market risk especially if you are investing in mutual funds. This is because the latter is subject to market risks. SIPs guarantee profits. Is that true? No, SIPs don't guarantee profits. They're subject to market fluctuations; returns depend on the performance of the underlying investments. SIPs are only for the wealthy. Can anyone invest in SIPs? SIPs are affordable, allowing people with modest incomes to start investing and benefit from compounding over time. SIPs are only for stocks. Can I use SIPs for other assets? Yes, SIPs can be used for various assets like mutual funds, gold, bonds, and more, not just stocks. How to start a SIP? You can start a SIP on the EduFund App to save for your kid's college, school fees, education expenses like uniform, laptop and much more. All you need is a bank account, PAN card and your adhar card to get started. Download the App today and start investing in over 5000 funds from all the top mutual fund companies in India.

Incorporated during the Global Financial Crisis, Quantum Mutual Fund has been in existence for approximately two decades now. The AMC offers a variety of mutual fund schemes, including equity funds, debt funds, and hybrid funds. Quantum Mutual Fund is known for its focus on active management and its commitment to providing investors with high-quality investment products. Quantum Dynamic Bond Fund Investment Objective The primary investment objective of the scheme is to generate long-term capital appreciation through active interest rate management of a portfolio consisting of short-term, and long-term debt and money market instruments. Investing in a dynamic bond fund can help manage interest risk as it rebalances the debt portfolio in line with the changing interest rates.  Investment Options The scheme provides various investment options like Growth Option, Monthly Payout of Income Distribution Cum Capital Withdrawal (IDCW) Option and Monthly Reinvestment of Income Distribution Cum Capital Withdrawal (IDCW) Option Portfolio Composition The portfolio consists of 98.23% allocation in debt and the remaining 1.77% is allocated in Cash and Cash Equivalent. Note: Data as of 31st August 2023. Source: quantumamc.com & Value Research Top 5 Holdings for Quantum Dynamic Bond Fund NameWeightage %9.09% IRFC NCD (MD 31/03/2026)5.787.58% NABARD Sr 23H NCD (MD 31/07/2026)5.557.26% GOI (MD 06/02/2033)39.167.38% GOI (MD 20/06/2027)33.594.04% GOI FRB (MD 04/10/2028)11.08Note: Data as of 31st August 2023.Source: quantumamc.com Performance for Quantum Dynamic Bond Fund The fund has performed as below table with respect to benchmarks.   CRISIL 10-Year Gilt IndexCRISIL 10 Year Gilt IndexPeriodScheme (₹)BenchmarkAdditional BenchmarkSince Inception7.69%  7.53%  6.16%  5 years7.34%7.99%6.65%3 years5.15%4.80%3.27%CRISIL Dynamic Bond Fund AI Index7.85%7.62%8.09%Note: Returns in % as of 30th September 2023.Source: quantumamc.com Fund Manager This fund is managed by Mr. Pankaj Pathak, who has 12 years of experience in the research and investment functions. He has been managing this fund since 1st March 2017.   Who Should Invest in Quantum Dynamic Bond Fund? The fund is suitable for investors who are seeking. Regular income over short to medium term and capital appreciation. Investments in Debt / Money Market Instruments / Government Securities. Why Invest in this Fund? The fund focuses on the principles of Safety, Liquidity, and Returns. It minimizes credit risk by investing primarily in Government securities or PSU bonds which are rated as AAA/AA. It also helps in controlling interest rate risk by active interest rate management. The fund also offers a solution for investors' long-term debt investment needs. Time Horizon The ideal holding period for the dynamic bond fund should be more than 3 years. Dynamic Bond funds or any other debt fund which invests in long-term debt instruments, are highly sensitive to interest rate movements. Thus, in a short period of time, returns could be highly volatile and can even be negative. However, over a longer time frame of 2-3 years period, returns tend to normalize along with the interest rate cycles. Conclusion The Quantum Dynamic Bond Fund is an open-ended Dynamic Debt Scheme Investing Across Duration. A relatively high-interest rate risk and relatively low credit risk. If an investor has an investment horizon of 3 years or longer, and they want to avoid the hassle of tracking the interest rate movement and worry about the credit quality, they may consider adding or switching to a debt fund like the Quantum Dynamic Bond Fund. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

Incorporated during the Global Financial Crisis, Quantum Mutual Fund has been in existence for approximately two decades now. The AMC offers a variety of mutual fund schemes, including equity funds, debt funds, and hybrid funds. Quantum Mutual Fund is known for its focus on active management and its commitment to providing investors with high-quality investment products. Quantum Nifty 50 ETF Investment Objective The primary objective of this fund is to provide capital appreciation by predominantly investing in units of Quantum Gold Fund Replicating/Tracking Gold and Exchange Traded Fund. The performance of the Scheme may differ from that of Quantum Gold Fund and the domestic prices of gold due to expenses and certain other factors. There can be no assurance or guarantee that the investment objective of the Scheme will be achieved. Investment Options The Quantum Gold Savings Fund (QGSF) invests in units of Quantum Gold Fund – an Exchange Traded Fund (QGF), which in turn invests in physical gold. Thus, enabling investors to invest in a Gold ETF using the SIP mode and without a demat account. Portfolio Composition The portfolio is biased towards commodities as the name itself indicates the same Note: Data as of 31st August 2023. Source: quantumamc.com & Value Research Holding of Quantum Gold Savings Fund NameWeightage %Quantum Gold Fund -Exchange Traded Fund (ETF)100.00Data as of 31st August 2023.Source: quantumamc.com Performance for Quantum Gold Savings Fund The fund has performed as below table with respect to benchmarks   Domestic price of GoldPeriodScheme (₹)BenchmarkSince Inception6.85%  8.07%  10 years5.55%6.69%5 years12.55%13.57%3 years3.63%4.52%1 year14.09%15.86%Quantum Gold Saving Fund Performance as of September 30, 2023Source: quantumamc.com Fund Manager This fund is managed by Mr. Chirag Mehta, who has 19 years of experience in the research and investment functions in the field of commodities and alternative investment strategies. He has been managing this fund since May 19, 2011.   Who Should Invest in Quantum Gold Savings Fund? The fund is suitable for investors who are seeking. Long-term capital appreciation. Investments in units of Quantum Gold Fund – Exchange Traded Fund whose underlying investments are in physical gold. Why Invest in this Fund? It helps in diversifying money in gold, an important tool for diversification. The fund enables investments in gold through an SIP or STP of as little as Rs 500/month. An investor does not need to open a demat account when they are investing with Gold ETFs. The fund takes care of all risks of storage and safety for a minimal expense ratio. The fund ensures that the quality of gold in which investors are investing is up to the mark. Time Horizon One should look at investing for at least five years or even more.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion The Quantum Gold Savings Fund is an open-ended fund of funds scheme investing in the Quantum Gold Fund. This fund aims to provide investors with a convenient and cost-effective way to invest in gold, without the need to hold physical gold. Investors can buy and sell units of the fund at the net asset value (NAV) of the fund. Investors who want to build their gold allocation with QGSF can consider this fund. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

Based on global standards, India is considered one of the most affordable countries in the world, but ever wondered which are the cheapest city in India? Most Indian cities offer optimal value for life at nominal expenses.  Raising a child involves paying for grocery items, vaccinations or medical expenses, school fees, uniforms and textbooks, transport costs, daycare, extra-curricular activities, vacations, etc.  There are several cheap cities in India where raising your child is a piece of cake. The low cost of living and schooling in these cities makes it easy to lead a life of contentment. 10 cheapest cities in India to raise your child 1. Udaipur Udaipur is known for its scenic beauty, peaceful environment, and historical sites. Rent, traveling, education, food, and clothing are available at affordable rates.  Despite being a major tourist destination, Udaipur is one of the cheapest Indian cities where parents can easily maintain a good living standard. The average cost of living is just INR 28,300 per month, and parents can afford to send their children to good schools and pay for other expenses without stretching their budgets.  2. Ahmedabad Ahmedabad is emerging as one of the fastest-growing Indian cities because of its industrial, educational, and economic centers. The average cost of living is INR 35,000 per month as accommodation, transportation, food, and related expenses are all cheap.  Ahmedabad caters to the section of people who are looking for a convenient living experience. It retains the charm in terms of simple living, and this is why the highly developed city remains a top choice for parents who want to raise their children in a cheaper city. 3. Chennai Chennai, the social capital of South India, is one of the safest and cheapest cities that boasts of people with warm and welcoming nature. The economically sound metropolitan city has beautiful beaches, incredible temples, amazing churches, and some of the finest schools and colleges in India.   The average cost of living in Chennai is INR 35,000 per month, out of which average rent costs as little as INR 6,000/ month and average school fees INR 5,000/month. Transport cost in the city is also affordable.  Cheap house rent, low cost of grocery items, reasonable transportation rates, excellent job openings, and a rich educational heritage encourages parents with young children to reside here and take advantage of available opportunities.  4. Hyderabad Innumerable families have relocated to Hyderabad in recent years not just because of the job opportunities but because it is one of the cheapest cities in India where parents can raise their children easily.  The average cost of living in Hyderabad is estimated at INR 37,500 per month, and folks with decent jobs can provide a lavish life to their dependents.  Along with the IT industry, Hyderabad is also known for its historical sites, upscale restaurants, malls, and educational institutions. The city offers numerous options to people who want to live within their means and raise their children without worrying about expenses.  Most expensive colleges in India Read More 5. Kolkata Kolkata, the capital of West Bengal, is one of the cheapest cities in India based on variables like rent, travel, and food expenses. The metropolitan city is an important cultural and educational hub and hence is considered a favorite of parents who want to raise their children in an affordable environment.  Kolkata is a safe city with a low crime rate, proper transportation facilities, good schools, and lots of recreational centers. The average cost of living in Kolkata is around INR 40,000 per month, and the average fee structure of schools is INR 4000/per month.  There are good schools at reasonable distances so that the transportation cost is also low. It becomes easy for parents to send their children to a respectable school with a lower fee structure.  Kolkata is one of the cities that ensures a perfect balance of school activities and studies and hence is a preferred location for parents who want to provide better education to their children at reasonable rates.  Additional read: Top 5 business schools in the world 6. Bengaluru Besides being the corporate hub, Bengaluru is surprisingly one of the cheapest cities in India to live in. The cost of living in the capital city of Karnataka is quite low (INR 40,000/month) as the rent, grocery expenses, and transportation costs are also less.  Bengaluru is a city with lots of schools for young children and universities for students who want to pursue higher education. The reasonable fee structure (INR 5,000 to INR 7,000 per month) and numerous career opportunities make it an ideal location for parents to raise their children. 7. Jaipur India's pink palace is not only a beautiful city to live in but also inexpensive. The average monthly cost of living for a family in Jaipur is INR 37,000 - INR 1,00,000. As a student or working professional, it can be cheaper and more cost-efficient. Jaipur is one of the cheapest cities in India. The everyday expenses are fairly priced, the city is well-connected with tons of cheap transportation alternatives and there are many affordable apartments with an average rent of Rs. 16, 000 to 17,000 for a single person. 8. Kochi Kochi is a beautiful coastal city located in the God's state of Kerala. The average cost of living in the city is INR 26,000 to INR 30,000 for a single person. It is an amazing city to live in for nature lovers and a great blend of nature & modernity. Kochi is a great place to raise your children as Kerala is ranked highest in terms of education and healthcare. The state prioritizes good quality education and affordable healthcare in terms of development. 9. Kanpur Kanpur is a city located in Uttar Pradesh. Popularly known for its academic excellence and housing India's most popular academic institute - Indian Institute of Technology, Kanpur. It is one of the cheapest cities in India with an average cost of living at INR 20000 to INR 30000. The city is home to engineering students from all over the country and has a beautiful culture of academic pursuit and history. This small city is well-connected with big cities like Delhi, Lucknow, and Agra and is ranked one of the most inexpensive cities as well. 10. Indore Indore is a city located in Madhya Pradesh and is known for its temples, lakes, and culture. The monthly cost of living in this city is INR 20,000 to INR 30, 000 for an individual. The city is located in the heart of the state and is extremely well-connected with the rest of India. It is one of the fastest-growing economies in India and you can rent a single-bedroom apartment for INR 10,000. It is a student paradise due to its affordability, charm, and cuisine. Conclusion The average cost of living in Indian cities is substantially lower compared to other global cities. Parents can afford to send their children to good schools because of affordable fee structures. Moreover, they can maintain a good standard of living without compromising on reasonable luxuries. FAQs What is the cheapest city to live in in India? The cheapest city in India is Kolkata, Kochi, Kanpur, Indore, and many more. What are the 10 cheapest cities to live? Udaipur Ahmedabad Chennai Hyderabad Kolkata Bengaluru Jaipur Kochi Kanpur Indore Which state in India has the lowest cost of living? Uttar Pradesh in India has the lowest cost of living in the subcontinent. Which Indian city is costly? Mumbai is the most costly city in India. The average rent for a shared room in the city is INR 25,000 and more. What is the cheapest city to live in India? Based on last update in September 2021, cities like Patna, Bhubaneswar, and Guwahati were known for lower living costs. Can living costs change over time? Yes, living costs can change due to various factors, so it's essential to check the most recent data and cost-of-living indices for updated information. What factors make a city cheap to live in? Lower housing costs, affordable food, and transportation options often contribute to a city's affordability.

For parents who desire to send their children to continue higher education but cannot financially do so on their own, an education loan is certainly a blessing. Many people eventually sell off family belongings, including gold, to pay for their children's further education. With the aid of an education loan, you may preserve these priceless possessions while paying for your child’s education. Few loans for higher education may need collateral, and few won’t. Many education loans from the country’s top lenders are available to pay for different courses. Whatever form of student loan you decide to take out, you must have a reliable repayment schedule in place. By doing this, you or your child will be able to pay the monthly payments without going into default. You've come to the right place if you need assistance managing student loans. Apply for Education Loan Tips to repay education loans faster 1. Advice for managing student loan debt Are you soon to take out a student loan? Continue reading for some practical advice on managing student loans. 2. Select a loan with a shorter term A brief tenure is a fantastic choice for managing student loans. While a shorter loan term can result in higher EMI payments, it will also enable you to save significantly on interest payments. Now, this does not imply that you choose EMIs that are too expensive for you to afford. Instead, go with the shortest tenure you can handle. To figure out how much you can afford to pay each month for your student loan, use an EMI calculator. How Does Education Loan Work? Read More 3. Pick a suitable repayment strategy Choosing the appropriate repayment option is the best method to manage student loans. You will have several repayment choices from your lender. Pick the option that fits your budget the best. You must be mindful of the duration of your moratorium. You will then be aware of how much time your child has left to obtain employment and save funds before the first EMI is due. Do not forget to consider how much they can expect to make in their first job. You can determine the appropriate tenure and EMI with the help of all of this. Without such careful planning, you can end up selecting an EMI that would be very expensive for both of you. https://www.youtube.com/watch?v=9EAyvncisU4 4. Set up automatic payments Missing loan installments might seriously harm your child's financial situation. Their credit score may be impacted, and they may incur late fees as a result. Just ask them to set up automatic withdrawals from their savings account so you won't have to worry about missing payments. They won't incur any missed EMI charges because these payments will be made on time. They will be able to retain a good credit score with regular payments. In turn, a good credit score is beneficial for making future loan applications. Education Loan Repayment Strategy Read More 5. Pay off interest during the moratorium Your payments don't start right away when you take out an education loan. They start after the moratorium has ended. The moratorium is a six-month or one-year period that starts when you finish your course. The interest on your child’s school loan starts to build the instant they receive the funding, even if your payments won't start until the moratorium is over. Therefore, it would be good to begin paying this interest while your child is still attending school. The best student loan advice you will likely receive is this. While still in college, your child might want to think about having a part-time job. The money they make from this job can be used to pay off their student loans. Either of you will significantly reduce the total amount that must be paid if you pay off this simple interest before it accumulates. 6. Make additional loan repayments Did you get a pay raise at work? Or perhaps your relatives gave you some cash as a gift. You might want to think about increasing your student loan payments if you get some extra money. This is a fantastic strategy to reduce the overall payback burden. Making larger payments on your student loan may enable you to pay it off earlier. One of the best pieces of advice for properly managing student loans is this. Check with your lender to see if there are any prepayment charges, though. Before going through your loan application process, you can check the fine print or ask your lender whether there are any penalties. https://www.youtube.com/watch?v=fufyFB9aMQI Conclusion The repayments of a loan can be very stressful. You and your child should do whatever you can to make it easier. These points will help reduce the burden on them and help them go through the process. If after this there are any questions, advice, or information you need, EduFund’s team of financial advisors is available to talk to you FAQs Can I repay my education loans before the scheduled time? Yes, most education loans allow early repayment without penalties. Check with your lender for specific terms. Are there benefits to repaying education loans early? Yes, early repayment can save you on interest costs and improve your credit score faster. What should I consider before repaying my education loans early? Ensure there are no prepayment penalties, evaluate your financial situation, and prioritize higher-interest debts first. Is there an option to repay your education loan before time in India? There are NO penalty charges for prepayment. You can prepay your education loan anytime. Can we close the education loan before tenure? Before prepaying your education loan, you should consult your lender to understand whether they will levy any kind of prepayment penalty. In India, there are no penalties on prepayment but it's important to consult and check to avoid extra payments. Connect with our Loan Experts

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

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

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

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

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