Category Archives: SIP

Investment advisors say this all the time - Save smartly, Save for your child's college. Saving for your child’s college education is a financial project in its own right. It requires planning, research, investing, and consistency. There are several things you need to do to ensure you have the necessary funds when you need them. Let’s understand why you need to save before understanding where, how, and how much! Why saving for your child’s college is important? The reason why you need to save is education inflation. Just to give you a heads up on the costs, as of 2022, a four-year undergrad course in the US can cost you anywhere from Rs. 70 lakhs to Rs. 1 crore, while a 2 year's master will cost you Rs. 60-70 lakhs. Other countries are comparatively cheaper. So, if you start working with the US figures, you are fairly well taken care of for the other countries. Yes, the amount may seem huge and it will keep going up over the years, but if you start well in advance, you will have the power of compounding working for you. And with the right investment strategies, putting together the corpus you need is quite achievable. Source: Pixabay How to start saving? 1. Collect information · Start Early: Your kid is bound to go to college, whether in India or abroad so start early! · Select the country: Pick a country that you know you will be comfortable sending your child to when the time comes. · Identify the universities: Get a handle on the kind of universities you would like to send your child to, and work out ballpark numbers in terms of fees, years of study, etc. · Talk to your friends: Even if your child is really young yet, start speaking to parents who have recently sent their children overseas. There are several insights that you will get when you speak to someone who has actually walked the path you wish to traverse. 2. Chat with a financial planner · Talk to experts: Once you have a fix on the funds you need to accumulate to send your child overseas, have a serious chat with your financial planner. · Set your goals: Define your goals, and strategies that will help you put together the corpus you will need and exceed it by a bit as well. · Plan your funds: Take inflation, currency exchange rate, and rising education, and travel costs into consideration. 3. Choose your investment instruments carefully 1. Long-Term Investments: (12 – 15-year horizon) You can consider investing in equities, and stocks. These instruments can give you high returns as the stock market grows over the decade. But these are also high-risk investments. You must have the patience to stay invested even when the market indices fall, for ultimately, they do go up. That is why you need a longer horizon to invest in these instruments: so, you can wait for the markets to correct and get the best return on investment. You can also balance the risk with investment in a provident fund, which gives one of the highest rates of return in the fixed-return market. 2. Mid-Term Investments: (7–11-year horizon) If this is your investment horizon, Mutual funds are your best bet. You can choose a basket of mutual fund schemes that are best suited for your kind of risk appetite: there are funds that invest in equities, small-cap, mid-cap, and blue-chip companies, and also debt funds. The last two are quite safe and give you better returns than the standard savings or Fixed deposit options. You must note that mutual fund investments are dependent on the market movement and will be impacted by the rise and drop in the indices. But compared to Equities, they are less volatile and the good ones are known to outperform the market index over a long period of time. 3. Short-Term Investments: (4 – 7 years) If you will be requiring the funds within the next few years, you must invest carefully ensuring your capital is protected at all times and the investment can earn you some additional benefits beyond the Fixed deposit rates. You can invest in debt instruments and bonds directly or invest in debt mutual fund schemes. These are quite safe and can earn you better interest than your regular savings options. But do keep in mind, that most of these also come with a lock-in period, so check that out before you commit your money. Apart from the capital market instruments, families also look at the traditional avenues of investment to block their monies. Real estate, gold purchases, gold bonds, and real estate mutual fund schemes are some of the other options that can be considered for long-term investments. Financial planning can be tricky if you are just starting out. With so many saving and investment opportunities, it's important to understand which ones will help you get to your goals faster. So, don’t shy away from seeking help and building a strong saving plan! FAQs Why saving for your child’s college is important? The reason why you need to save is education inflation. Just to give you a heads up on the costs, as of 2022, a four-year undergrad course in the US can cost you anywhere from Rs. 70 lakhs to Rs. 1 crore, while a 2 year's masters will cost you Rs. 60-70 lakhs. The cost of education is rapidly increasing in India - it takes roughly Rs. 30 lakhs to raise a child in India till the age of 18 years. This cost is likely to increase and investments can help you keep up with the fees and other expenses. What is the best way to invest for your child's college? The best way is to invest via equity based mutual funds if you have a long-time horizon like 12 to 15 years. Based on your investment period, you can choose an investment plan that can get you closer to your financial goal and send your child to a college of their choice. How to start saving for your child's college? · Start Early: Your kid is bound to go to college, whether in India or abroad so start early! · Select the country: Pick a country that you know you will be comfortable sending your child to when the time comes. · Identify the universities: Get a handle on the kind of universities you would like to send your child to, and work out ballpark numbers in terms of fees, years of study, etc. · Talk to your friends: Even if your child is really young yet, start speaking to parents who have recently sent their children overseas. There are several insights that you will get when you speak to someone who has actually walked the path you wish to traverse. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

In the previous article, we discussed what is a better asset to invest in a child's future. It is common knowledge that parents should start investing in a child's education. But when should you start? How do you start? In this article, we will talk about when to start investing in a child's education. Saving up for children's education is a daunting task for parents. The question "When should you start to save for your child/children's education has a universal answer. The answer is "as early as possible".   Every parent aspires to provide their child with the most extraordinary life possible. Parents, particularly when it comes to their children's education, are always looking for methods to stay one step ahead.   Parents who take a proactive approach and invest methodically from an early age can protect their children's futures. As a result, financial planning is critical for achieving a goal as important as supporting a child's education.   https://www.youtube.com/watch?v=wUiUws6L2aY Time is the most critical component. The powerful notion of compound interest benefits you more the longer you invest.   Education costs are rising faster than inflation. As a result, the expense of sending your child to a university or college will almost certainly double every six to seven years.  Tax Benefits of Investing in Child's Education Read More An undergraduate course at the Indian Institute of Technology (IIT) costs around 2 Lac per year. The IIM charges roughly 20 lakhs for a two-year diploma program.   Starting investing early is the only way to protect your wealth against inflation and save enough money to send your child to a prestigious college.   While the annual rate of return and the original investments are essential, the length of time you invest the money is the most crucial element. So, if you want to put money aside for your child's education, get started immediately.  Example   Let us take an example to understand why you should not delay the investments for your child's future education:   Two mothers, Anita and Archana, want to save for their respective daughter's education. Both intend to save money and invest a lump sum of Rs 2,00,000 in equity-focused mutual funds (offering 12% per annum yearly returns).   However, the difference is that Archana made the lumpsum investment when her daughter turned ten years old, while Anita invested as soon as her daughter was born.   So, the time horizon for Archana is eight years and the time horizon for Anita is 18 years. Let us see the difference between the accumulated amount at the end for both mothers.    Anita will have Rs 15.3 lakhs for her daughter's college by the time she is 18, while Archana will have only approx. Of Rs 4.9 lakhs. In other words, by investing ten years sooner, Anita could save over three times as much as Archana.  The visual below gives a good representation of the example:  In the above example, Archana and Anita put money into the same mutual fund. The amount they invested and the rate of return were identical.   The only variation was the investment period. Anita continued to save for another ten years, but her final corpus was three times that of Archan.    For savers hoping to build money through compounding, time is everything. FAQs When to start investing in a child's education? Ideally, parents should start investing in their child's education before they are born. This can help them keep up with the rising costs of education which is growing at a faster rate of inflation than income. Planning, investing, and saving for a long duration allows one to take advantage of compounding. Why parents should invest early in their child's education? Parents should invest early in their child's education because education is costly. The cost is increasing every year due to high competition and education inflation. Saving and investing early on can help them take advantage of investment assets like mutual funds, ETFs, and stocks that can beat inflation and help them preserve the value of their money. What age is too late to start investing in your child's education? It's never too late to start investing. You can start with low-risk investments that can help you save up more in a short duration. You can consult a financial advisor to figure out your options based on your risk appetite. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Why invest early? - is a question that plagues most young adults. Many research and polls demonstrate that the sooner you invest, the better off you are. The best time to invest is during or after college when you are in your early 20s.   Investing early in life teaches you financial independence and discipline. Early investment explains the proper distinction between investing and saving.   Never consider your age to be a barrier to investing. You are never too young to do so. You will have more money in your pocket in the future if you invest a tiny bit of money from today onwards.   Investing early is advantageous because you can plan your investments and give them enough time to grow into a corpus that can meet your financial goals.   If you are a young investor looking for inspiration or wondering if it is a good idea to start investing early, here are some of the best reasons.   Reasons to start investing early 1. Save more Starting early, you will acquire the habit of saving more when you start investing at a young age. The more you invest now, the more you will receive in the future.   As a result of that cognitive process, you tend to save more by reducing unnecessary expenses on your part and investing the money you save.   2. More recovery time If you invest early, even if you lose money, you will have more time to recover your losses.   An investor who begins investing later in life, on the other hand, has less time to recuperate for his losses. As a result, if you invest earlier, money has more time to rise in value.   3. Time value of money Compounding gains arise from early investments. Money has a temporal value that increases with time. Regular savings started at a young age can pay off handsomely when it comes time to retire.   Furthermore, early investing allows you to enter the world of finance sooner. With time, your money will increase in value. You can buy items that others may not be able to afford at that age because of early investments - putting you ahead of those who would instead invest later in life.   Source: Pexels 4. Polished risk-taking ability Young investors are more capable of taking risks than older investors. Adult investors, on the whole, are conservative and desire stability.   Therefore, they reject high-risk investing opportunities. The more the risk, the greater the gain; as the old saying goes, with a tremendous risk-taking attitude, the likelihood of making substantial returns at an early age increases.   5. Not becoming a debtor Investments made young can be pretty beneficial. Whenever you need money, you will have it in surplus. You will never need to borrow money or become someone's debtor if you have enough money invested with you.   When you have money parked in the correct investment channels at the right age, you can lend it to others; that is, you can instead become a creditor.   6. Solid corpus for achieving the big dream Early-age investments enhance the probability of reaching financial stability at a very young age.   If you start your saving and investing journey at the age of 20, you will have a perfect corpus by the age of 40 to 50, and you will also have a better idea of how your investments worked out.   Post that, you will have a corpus big enough that you will be able to take care of that dream house of yours or have a good retirement life. With technology at a younger age, you invest in avenues that can give high returns.   Investment in self-research will give you confidence and help you make many bold decisions in life. So, the earlier you start, the easier it is to build wealth.  The example below shows how beneficial it is to embark on your investing journey early in life.  Example:   Ram invested Rs 2,000 per year in balanced mutual funds between the ages of 24 and 30; he earned a 12 percent after-tax return, and he continued to make 12 percent per year until he retired at age 65.   Shyam also invested Rs 2,000 per year and earned the same return, but he waited until he was 30 to start and continued to invest Rs 2,000 per year until he retired at age 65.   It is difficult to imagine at the end of the age of 65; both would end up having 10 Lakhs. But Ram had to invest only Rs 12,000 (i.e., Rs 2,000 for six years), while Shyam had to invest Rs 72,000 (Rs 2,000 for 36 years) or six times the amount that Ram invested to delay his investment by six years.   If you expect an annualized return of 18% on your investments, it means that after four years, your money will double, your investment will multiply four times in the next four years, and so on.   This shows how compounding has a significant positive impact in the later stages of the investing cycle. As a result, you must keep your money invested for longer so that the force of compounding can help you become wealthy.   There is a significant difference between investing from the age of 18 and starting to invest at the age of 28. The gap of 10 years between these two starting points will have a tremendous impact on the wealth corpus you will have at the end of your investment period.   The more you can compound interest on your investment, the faster investment will accumulate and the better off you will be when you retire and start enjoying your savings. So early investments in your career will help you build a secure future.  FAQs Why is it beneficial to start saving and investing early on in life? Save more More recovery time Time value of money Polished risk-taking ability Not becoming a debtor Solid corpus for achieving the big dream Why is it important to invest early on? It is important to invest early on because it is the best way to meet your financial goals on time. Investing early gives you benefits like the ability to stay invested for a long time, mitigate risk over a period of time, and even expand your investments as you grow old. Is 25 too old to start investing? No, it is not too old to start investing. You can start investing in different equities classes whenever you have the money and financial expertise to start. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

In the previous article, we discussed Mutual funds vs. FD to find out which is a better asset for your child's future. In this article, we will talk about Saving vs. Investing. Savings and investing involve different goals and functions in your financial strategy.   Saving money entails depositing money in secure, liquid accounts, whereas investing entails purchasing assets, such as stocks, to make a profit.   Before you start your journey to riches and financial independence, you must understand this fundamental difference.   Difference between Saving vs Investing   Saving money implies putting away money by depositing it in highly secure securities or accounts. The money is also liquid, which means it can be turned into cash quickly.   Above all, your cash reserves must be there when you need them. They must be ready for use to meet all your immediate needs and wants. Some examples are: keeping money in cash form, in a savings account, etc.  Investing money refers to utilizing your cash or capital to purchase an item you believe has a fair chance of creating an acceptable return over time.   Investing is to increase your wealth, even if it means going through significant volatility for months or even years. Actual investments have the backing of a margin of safety, usually in assets or earnings from the owner.  Stocks, bonds, and real estate are some of the best investment instruments.   Basis of Distinction Investing  Saving Definition The exercise involves investing the money saved so as to generate profits and capital appreciation The income or money left at hand after meeting all expenses Purpose The purpose of investing is capital appreciation and wealth creation. Investing in your alpha tool, which fights increasing inflation and helps you create wealth. The purpose of saving is to meet short-term and long-term requirements. And also, to tackle unforeseen events. Saving is the foundation of your investment portfolio. Returns The biggest advantage of investing in high returns is that it provides some exposure to market volatility as well. If you are a risk-averse investor or have a little risk appetite, you can choose to invest in debt funds. Saving is not done with the view to generating returns. Since there is negligible or little risk involved with the money, there is very little return - generally, a percentage or two on the instruments where you save your money. Risk Investing has its fair share of risks involved because of the market volatility, the risk and return depend on the mood of the market in general. Saving money has no volatility risk. The thing that can possibly happen with your money is that it can diminish in value owing to rising inflation. Liquidity Investments vary in liquidity depending upon the instruments.  Liquidity is the primary purpose of saving.  An important difference   The most significant distinction between saving and investing is the Risk Factor. When you place your money into a savings account, such as a money market account or a certificate of deposit, you are saving.  It has a very low danger of losing money but has very little chance of making money. When you save money, you have access to it as and when you need it.   When you invest money, you have the chance to make higher long-term profits or rewards. But you also have an opportunity to lose money. You can take on more risk for a higher return, but your potential loss is also more significant.   It is critical to assess your objectives to determine which alternative is ideal.    Making the wrong decision can cost you a lot of money in fees or even result in a loss of future investment revenue. Another distinction is interest or profit.   The primary purpose of investing is to make money, whereas the motive of saving is to keep money secure while earning relatively little.  Saving vs. Invest: Which comes first?   Almost often, saving money comes before investing money. Saving is the foundation upon which your financial dreams are based.  The logic is simple - unless you possess a certain sum of money, you will need to rely on your savings to fund your investments.   In rough times when you need money, you'll probably have to sell your investments at bad possible times, and that is not a prescription for financial success.  As a rule of thumb, your savings should be able to cover at least three to six months of your expenses - usually known as an emergency fund.   You can start investing until you have things in place, such as an emergency fund, health insurance, and life insurance.   You will benefit from significant tax cuts with the help of these instruments like insurance. You will also have a safety net to bear volatility even in your investments.   Which one is for you?   There is no particular answer to this question because saving is a means to your investment journey. If you have good savings and if you can generate a safety net around your wealth, you can start investing that day itself.   It all depends on your planning, your needs, and your future goals. Make your decision wisely and choose the instruments carefully. FAQs Which is better, investing or saving? Savings and investing involve different goals and functions in your financial strategy. There is no particular answer to this question because saving is a means to your investment journey. If you have good savings and if you can generate a safety net around your wealth, you can start investing that day itself. What are the benefits of investing? Investing money refers to utilizing your cash or capital to purchase an item you believe has a fair chance of creating an acceptable return over time. The returns an investment generates are the biggest advantage of investing, but investing involves some amount of risk. Which comes first, investing or saving? Almost often, saving money comes before investing money. Saving is the foundation upon which your financial dreams are based. The logic is simple – unless you possess a certain sum of money, you will need to rely on your savings to fund your investments. What is the difference between saving and investing? The most significant distinction between saving and investing is the Risk Factor. When you place your money into a savings account, such as a money market account or a certificate of deposit, you are saving. It has a very low danger of losing money but has very little chance of making money. When you save money, you have access to it as and when you need it. When you invest money, you have the chance to make higher long-term profits or rewards. But you also have an opportunity to lose money. You can take on more risk for a higher return, but your potential loss is also more significant. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

In the previous article, we discussed investing in the 30s. In this article, we will discuss how long should you invest in SIP. SIP (Systematic Investment Plan) is a method of investing that requires consistency in investments, even if the amount is small. It focuses on time and requires the compounding cycle to continue without any breaks. If the investment is made in a SIP format, the investor can take advantage of rupee-cost averaging over the long term to gain better returns on average.   Periodic investment also reduces volatility and can help in accumulating a sizeable corpus. SIPs usually allow you to invest weekly, quarterly or monthly.  An important question that plagues the topic of discussion is the duration of your SIP. Though it is a subjective question that depends on person to person, is there some ideal duration for running your SIP?  To answer the above question, we must understand that SIP is not an investment instrument, but it is a way to invest your money, opposite to a lumpsum investment.   Source: Pexels What is the ideal duration to invest in SIP? Ideally, the longer you stay invested, the better it will be to grow your wealth because of the cost of investment averaging out in the long term.   Another essential thing to keep in mind is that the period of your SIP can be different from your holding period. For example, you might stop your SIP after five years but remain invested for 10-15 years.   Investments in mutual funds, stocks, etc., do not require you to pull out your capital from the market immediately after your tentative investment period is over. The investment period will depend upon the goals and objectives that you aim to fulfill.  For example, if you are investing to buy a car, you may need to save for 3-4 years depending upon the monthly payment you plan to make. Your retirement planning needs more careful consideration, given that a considerable amount is required compared to usual expenses.  Benefits of long-term SIP investment strategy According to the Value Research team, SIPs can be said to be truly safe for close to 4 years and above. The study found that, on average, the risk of loss when an investment is undertaken for more than four years (investment done with due diligence) is negligible. Interestingly, the risk of loss and the chance of a high windfall gain is higher in the short run.   Over long periods, the maxima and the minima get averaged out. For example, consider the following fund with a multi-decade history; overall possible one-year periods, the maximum and minimum returns are 160% and 57%, respectively.   For two years, it is 82% and 34%. Over five years, 54% and 4%, never meaning a loss. Over ten years, the maximum is 30%, and the minimum is 13% (all annualized figures).   Thus, the comparison is obvious – the shorter the period, the higher the potential gain, but the worse the possible risk.  We get a good answer from the above data: we must carry on our SIPs for at least 3 to 4 years; some lumpsum additions in between can be beneficial for your portfolio.  It is vital to keep your investment objective in mind while deciding how long you wish to run your SIP. FAQs Is it good to invest in SIP for 20 years? Yes, 20 years is a good long-term horizon to stay invested in SIP. The longer you stay invested, the better the returns on your initial investment. When should I quit SIP? If a fund is consistently underperforming, it might be a good reason to stop investing. Another reason could be that the mutual fund and its performance no longer meet your financial goals. This is why it's important to revisit your portfolio and update it so that it can align better with your financial goals. Is it OK to start investing at 30? Yes, it is a good idea to start investing at 30 years of age. It is never to late to start investing your money towards your financial goals. You can consult a SEBI- registered financial advisor and get the best advice to make a success. How can I build my wealth at 30? Here are some ways to build your wealth at the age of 30- Create an emergency fund Become debt-free Align investments with life goals Beating inflation Do not fear risk Do not disregard liquidity Invest continuously Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

In the earlier article, we discussed the Step-up SIP calculator. In this article, we will talk about the SIP calculator. SIP stands for Systematic Investment Plan. It is a method of investing that requires consistency in investments, even if the amount is small. It focuses on time and needs the compounding cycle not to break.   The amount invested in an SIP format allows the investor can take advantage of rupee cost averaging over the long term and thus, get better returns on average.   Periodic investment also reduces volatility, and you can accumulate a sizeable corpus. SIPs usually allow you to invest weekly, quarterly, or monthly. What is a SIP calculator?  A SIP calculator is a tool that will help you to get a basic idea about the returns that you can generate through your investments.   It provides you with a rough estimate and a road ahead to achieve your financial goals based on a projected annual rate of return. With the help of a few numerical inputs, a SIP calculator makes your work easier by solving complex financial problems in no time. The calculator will calculate the increase in wealth and the expected return for your SIP investment.  How does a SIP calculator work?  The SIP calculator calculates the potential return with the help of the compound interest formula.   The working formula is as follows: M = P x ({[1 + i] n - 1} / i) x (1 + i) To calculate your SIP returns, you need to input the following values:  Monthly investment amount (that you wish to invest consistently)  Expected rate of return The investment periods The formula mentioned above has the following components  M = Total Amount you will receive on maturity.   P = Amount of money that you will invest periodically (at consistent time intervals)   n = Number of payments you make as an investment   i = Periodic expected rate of interest on your investment  Let us see the working of the above formula through an example  For example, you want to invest Rs 10,000 monthly for seven years with an expected rate of return equaling 12% per annum (so, the monthly return will be 12%/12 = 0.01).  Plugging these values in the formula, we get M =10,000({[1+0.01]  {84}-1}/0.01) x (1+0.01) = Rs. 13.19 lakhs.   The best thing about this calculator is changing the variables' values according to your investment goals and requirements. Source: EduFund How will a SIP calculator help you?   Trying to estimate what you wish to receive at the end of your investment tenure is an essential task. It depends upon how much return you expect on your investment and how much are you willing to invest.  The SIP calculator helps you to  Get instant results about your investment scenario with a single click   It tells you the estimated potential returns   Allows you to compare various SIP options by varying the inputs in the formula  Assists you in making well-informed and calculative decisions regarding your investments   Free-of-cost calculation   You can use a SIP calculator in multiple ways. It can be used backward to obtain the periodic investment amount, given your final wealth requirement, investment period, and expected return rate. Thus, a SIP calculator is a helpful tool for taking your investment journey a step ahead. FAQs What is a SIP calculator? A SIP calculator is a tool that will help you to get a basic idea about the returns that you can generate through your investments.   It provides you with a rough estimate and a road ahead to achieve your financial goals based on a projected annual rate of return. How will a SIP calculator help you? Trying to estimate what you wish to receive at the end of your investment tenure is an essential task. It depends upon how much return you expect on your investment and how much are you willing to invest. What are the benefits of a SIP calculator? Get instant results about your investment scenario with a single click   It tells you the estimated potential returns   Allows you to compare various SIP options by varying the inputs in the formula  Assists you in making well-informed and calculative decisions regarding your investments   Free-of-cost calculation Are SIP calculators correct? A SIP calculator is a tool that will help you to get a basic idea about the returns that you can generate through your investments.    It provides you with a rough estimate and a road ahead to achieve your financial goals based on a projected annual rate of return.   Can I withdraw SIP anytime? You can withdraw your SIP amount anytime you feel like funding the financial needs for which you were investing in the first place. Is SIP 100% safe? SIP is one of the best investment tools to invest in the long term. SIP is the best tool for beginners to invest. Like any other investment, SIP also carries some amount of risk. How do you calculate SIP with an example? The SIP calculator calculates the potential return with the help of the compound interest formula.    The working formula is as follows: M = P x ({[1 + i] n – 1} / i) x (1 + i)   To calculate your SIP returns, you need to input the following values:    Monthly investment amount (that you wish to invest consistently)    Expected rate of return   The investment periods   The formula mentioned above has the following components    M = Total Amount you will receive on maturity.    P = Amount of money that you will invest periodically (at consistent time intervals)    n = Number of payments you make as an investment    i = Periodic expected rate of interest on your investment    Let’s see how the formula works via an example    For example, you want to invest Rs 10,000 monthly for seven years with an expected rate of return equaling 12% per annum (so, the monthly return will be 12%/12 = 0.01).    Plugging these values in the formula, we get M =10,000({[1+0.01]    {84}-1}/0.01) x (1+0.01) = Rs. 13.19 lakhs. 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The 30s are very crucial for you as an investor. In this article, we will try to understand the best way to start investing in the 30s.   Steps to take before investing   1. Create an emergency fund The first and foremost thing you need to do is create an emergency fund that will assist you in times of urgent need. Ideally, the emergency fund should be equivalent to 6- 8 times your monthly expenses.    2. Become debt-free Tension-free and full-fledged investments are possible when you are not reeling under your loans. In the case of personal loans like credit card bills, try to clear them off on or before the due dates.  What should be your investment strategy?   1. Align investments with life goals The 30s is that juncture of life where you have a lot to do ahead –in terms of responsibility and achievement. For this reason, you need a detailed time log of what you intend to do in the upcoming decades before you define your investment strategy. In general, some big-ticket expenses are your marriage, your kids’ future studies (maybe 15 years later), and planning your retirement. At this age, your portfolio should have a subtle combination of equity and debt to suit your long-term goals.   2. Beating inflation In your 30s, you still have time to get rich and enjoy the luxuries of life. So, you should put the investible money into assets that will beat inflation. Inflation is your enemy so treat it like one, and thus, do not invest your money (for growth purposes) into assets that do not even match inflation such as FDs and savings bank accounts. You should aim at investing in stocks and mutual funds or even real estate (if you have the proper knowledge and guidance).   3. Do not fear risk At this time of life, the risk is synonymous with living in terms of a career or investments. Risks depend on your appetite; if you wish to obtain asymmetric returns, you have to take asymmetric risks. However, you must have the potential to manage the risk (an emergency fund). Managing risk implies diversifying your investment portfolio by placing your money into various asset classes and reviewing your portfolio to check for risks.   3. Do not disregard liquidity Liquidity is a vital factor to consider. While investing, you must ensure that your investments are not tied entirely to illiquid assets, which might create problems in times of distress.   4. Invest continuously Continuity and patience will reap the highest benefits in your investments. The longer you remain invested, the more you can benefit from the power of compounding and through the systematic accumulation of stocks/mutual fund units over a long period.  FAQs Is it OK to start investing at 30? Yes, it is a good idea to start investing at 30 years of age. It is never too late to start investing your money toward your financial goals. You can consult a SEBI-registered financial advisor and get the best advice to make a success. How can I build my wealth at 30? Here are some ways to build your wealth at the age of 30- Create an emergency fund Become debt-free Align investments with life goals Beating inflation Do not fear risk Do not disregard liquidity Invest continuously Is 32 too late to invest? No, 32 is not too late to invest. Be sure to connect with an expert who is SEBI-registered with ample finance experience to guide you on how to invest properly. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

A systematic investment plan or SIP is the best plan that helps you invest in mutual funds on a regular basis.  You can choose to invest weekly, monthly or even quarterly – the most popular choice being monthly. There are multiple reasons why SIPs are the best way to grow your money especially when you have a goal to plan – e.g. your child’s education. SIPs can be bought easily and you can start with a very low amount - Rs. 500 per month. In this blog, we will talk about the ‘Big 5 advantages’ that SIPs offer to you as a parent. But before that, let's understand what a SIP is What is SIP? A SIP or systematic investment plan is an investment mode through which an investor can create a regular mechanism of investment for themselves. Let's take the example of investor X. Investor X wishes to invest Rs. 10,000 every month in a mutual fund. In this case, investor X can create a SIP for a fund they want to invest in and the money will be deducted every month automatically (the deduction can be weekly, monthly, or even quarterly, depending on the investor's choice). Think of it as a recurring deposit, with better returns. Now that we know what a SIP is, let's get to know why investing via SIP is the best choice you can make to enlarge your corpus. CALCULATE MONTHLY SIP 5 Reasons SIP is the best These are the 5 main reasons why you should invest via a systematic investment plan to reach your financial goals 1. Suitable for Long-Term Investment Any financial advisor will tell you that if you want to invest long-term, SIP is the way to go. The reason is simple, regular investing and automatic deductions keep investors motivated to stay invested and reach their investment goals quicker. During the 2008 financial recession, many people withdrew money from mutual funds. However, the ones that remained invested via SIP, attained a huge profit once the markets rose. Long-term investing makes sure that even if the market is down at the moment, once the markets rise, the investor will make profits. 2. Goal-planning ‍SIPs are good tools to plan for a future goal – to buy a 4-wheeler or to pay for college tuition fees maybe 10-15 years from now. When you determine the amount required to achieve your goal, you will know how much you should invest and how long it will take to reach your goal. This will help in planning effectively. Having financial goals is very important to creating a financially secure future. One must have a defined idea about what financial goal one wants to reach by the age of 30, 40, 50, and so on. 3. Effect of Compounding Compounding is one of the biggest advantages of a SIP. Over time your investments grow because you start earning returns not on your principal amount, but on the interest that keeps getting added to it. Let's take an example. Suppose you invest Rs.1,000 in a mutual fund that gives you a yearly return of 10% p.a. Your amount becomes 1,100. at the end of the first year. At the end of the second year, the rate of return is 11%, this time the returns will be calculated on Rs. 1,100 and not the principal amount, which is, Rs. 1,000. ‍This ensures the growth of your corpus and is one of the reasons why experts advise you to not withdraw your investments when the market is down. 4. Curated by Experts With the increasing number of fund types like equity, debt, mixed, gold-based, etc. there is a wide variety to choose from based on your risk appetite and preferred investment duration. This has led to customized offerings based on individual needs, supervised by experts in the SIP domain. All you need is to specify your goal and timeline and you are provided with the best possible funds that can meet your future goals. ‍SIPs have become popular over the past few years, because of the ease of investing and the flexibility provided in terms of the amount of money that can be invested. You can stay invested as long as you want, although average returns have been higher when invested in the long term. Research also shows that the returns offered by SIPs are more than recurring deposits in banks, in the long term. 5. Automates Your Investment Experience SIPs automate your investment experience, which makes you a regular investor. It is easy and convenient and because of the online surge, today, it is super easy to invest via SIP. If you choose the lump sum method, you will have to manually invest an amount and there may be times when you can miss an installment. ‍With automated installments and a streamlined process, investing via SIP has now become an extremely popular method, to reach long-term goals like saving up for your child's education. FAQs Why is SIP investment good? By investing through SIPs, you will do away with the burden of timing the market as you could then avail the benefit of Rupee Cost Averaging. By investing through SIP, you will tend to invest in the up and down markets. This helps you shy away from the volatility of the market. Additionally, you will benefit from the power of compounding, which fundamentally generates returns not only on capital but also on returns. Is SIP good for students? Investing in SIP can be a huge benefit for students. It cultivates a healthy investment habit, and they can invest a small amount to start their journey. SIP is best for beginners and a comparatively safe investment vehicle. What are the features of SIP? A SIP offers the following features: It is best for long-term investment, brings financial discipline, allows small investment amounts, benefits from the power of compounding, and is a comparatively safer investment tool. Why do people prefer SIP? A systematic investment plan helps bring discipline to an individual’s investment habits. A SIP will automatically deduct a pre-decided amount periodically. Investors also do not need to worry about timing the market while investing via SIP. It is one of the best investment vehicles for beginners. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Every year, schools increase their annual fees in India. The average school fees in India range between Rs. 50,000 to 1,00,000 per annum. The increase in response to the rising cost of all goods and services (that is the result of education inflation!). It’s tough to keep up with these costs, especially in a competitive world where your child deserves all the advantages they can amass. Since education is unavoidable and an integral aspect of a child’s development, here are some tips to save for your child’s school fees. 5 ways to save for your kid's dream college! https://www.youtube.com/shorts/N6RKPu_zoY8 1. Cut costs and budget Cost cutting and budgeting is the first step to saving. Create a monthly budget, and find out how much you need to cover your major expenses like rent, utilities, emails, travel, and food. Once you know where your money is going, you will be able to control your expenses and figure out the areas where you overspend and where you can cut costs! Removing small expenses from your budget can make a huge difference in your overall budget. Cost of School Education in India Read More 2. Government schemes and scholarships Another way to deal with the rising school fees is to make use of government scholarships and schemes. Schemes like the PM Young Achievers Scholarship Award Scheme (Yasasvi), Beti Bachao Beti Padhao schemes, and Girls Hostel Scheme for available for young children and encourage them to access quality education. There are other schemes like sibling discounts that private schools may offer if you enroll more than one child at their schools, this can either be in the form of fee waivers or concessions. Apply for Scholarships 3. Passive income Creating passive income is a great way to save up for your child’s school fees. Passive incomes can help you take care of small and big expenses Some quick ways to generate a passive income stream is by renting a spare room, apartment floor, or your car. Take up consultancy jobs or freelancing to create a secondary income that can over time become a passive income for you and your family. 4. Stocks: Indian and US Investing is another option for parents whose children are in school. Investing in stocks can help you expand your savings and beat inflation. Investing in us stocks offers even more benefits – it is an opportunity to invest in big companies with global reach and get returns in dollars. Stocks are risky instruments and the potential to gain is as high as loss – understand the risk and consult professionals before investing your life savings. 5. Mutual Funds Mutual funds are a great way to save up for the future education is a definite event and you need to save for a child’s fees. Mutual funds offer great returns and are highly liquid-able which means you can withdraw your money whenever you want but be aware of the exit fees that may be charged on premature exit. Consult a professional to find out the best mutual funds, and explain your time horizon, risk appetite, and how much you can spare monthly. Once you know these answers, you can invest in the funds based on your financial goals! Start Investing in Mutual Funds 6. Public provident funds It's always good to balance your portfolio. If you are investing in risky instruments then consider tools like PPF, FDs, or RDs to save up some school fees or other expenses. You can use the interest generated on these instruments to pay for certain expenses. These are risk-free investments with fixed interest rates which makes them ideal for long-term risk-averse individuals! To avoid financial worries later, start saving sooner! Connect with the best advisors from EduFund to make saving and investing easier for your child’s higher education. https://www.youtube.com/watch?v=OQlg-E5rhBM&t=4s FAQs How to save for your kid's school fees? There are many ways to save for your kid's school fees. Some of them are investing for your child's education expenses, you can use mutual funds, US stocks, and Indian stocks, and even opt for FDs and PPF schemes. Another is to look for schemes and scholarships that can help you reduce the cost of studying at schools and colleges. Why are school fees increasing rapidly? The reason why school fees are rising is due to education inflation, privatization, lack of government control, demand for private schools, and high competition. As Ashneer Grover said, the demand for coveted schools is higher than the current supply, which gives existing schools an advantage in terms of raising their fees and demanding high annual tuition every year. What is the best way to save for your child's school? The best way is to start a SIP in a mutual fund that can help you manage the costs of your child's education. EduFund offers class-wise buckets for saving for school fees. So if your child is in 5th grade and you want to invest then you can choose the 5th grade investment bucket designed by experts and start saving.

Education has become very expensive in India. SIP plans for child education are the solution! Statistics show that educational inflation is around 11% in the country today, and the cost of education is expected to soar in the future. A report by the National Sample Survey Office (NSSO) during the period of 2008-14 stated that the annual cost of education burgeoned by 2.75 times when compared to 2008, whereas the per-capita income had only increased by 2.49 times, indicating the mismatch in the income growth and the increase in the cost of education. High tuition fees coupled with the difficulty of paying bills and staying independent cause highly qualified and bright minds to even refrain from applying to colleges. Tuition rates are increasing all over the world and are rising faster than the growth in per capita income. Looking at these expenses from an exchange rate perspective, rupee owners will always have a disadvantage in terms of the cost of overseas education due to our country’s current account balance, relative interest rates, and inflation which cause a weakening of the Rupee. In the near future, the trend would continue hence ballooning the fees even further. Investing is a mantra that can be followed to rise above the tide of this soaring educational inflation. A wealthy corpus is accumulated and the effects are more prominent when the investor starts saving at an earlier stage owing to the compounding effect. What is SIP?  SIP is a Systematic Investment Plan. It is a facility offered by mutual funds to investors to invest in a fund properly. With a SIP facility, investors can invest a fixed amount of money in pre-defined intervals.  SIP is the perfect method of investment for newcomers and risk-averse investors – it allows you to participate in the market without timing it or worrying about its highs & lows.   Note that the fixed amount of money can be as low as INR 500. The SIP route to investment is necessary as it helps you to invest in a time-bound manner. There is no need to worry about market dynamics when you are investing via SIPs.  Calculate Investment using SIP Calculator Reason to invest in Mutual Fund Scheme for child education 1. Reduce the financial burden This forms a habit of investment discipline by debiting a fixed amount from your bank account at every periodic interval. This also prevents a lump sum or a sudden outflow of money from your pocket, hence maintaining financial stability. 2. Start investing in small amounts Most SIPs start at a minimal amount of Rs 500, which enables the investors to save for their child’s future – one penny at a time. 3. Rupee cost averaging By investing through SIP, one can also benefit from rupee cost averaging – where the cost of purchasing a unit of the fund is averaged over the time horizon thus protecting its investors from volatile market conditions and price fluctuations. 4. Compounding effect Investors also benefit from the compounding of returns, where the returns earned on the invested capital are re-invested into the fund. Best SIP Mutual Funds Read More 5 Benefits of SIP Plans for Child Education   1. Compounding can help you become financially stable  SIP helps everyone make the best of their savings and lets one make the most of compounding. Compounding is when the initial interest earned on your investment starts earning interest over the years. It helps people with small sums of money generate a sizeable amount over the years. Compounding is a great way to meet your financial goals and retire with a healthy sum of money in your pocket.   2. Make the most of rupee cost averaging  Staying invested for long and consistently have its benefits. This benefit is called rupee cost averaging when your overall investment is protected from market fluctuations.   3. A common’s man way of investing  SIP is a method that is suitable for every investor. Whether you are a seasoned or a new investor, you can start a SIP and invest in funds that can help you with your financial goals. It is a common’s way of ensuring their future and helps them invest small sums of money.   4. SIP can help you stay financially disciplined  SIP makes investing easier and affordable for everyone. It is an EMI for your future funds and helps you consistently contribute to it. You can set up an auto-debit from your account so that you continue to invest. SIPs can be paused and even stopped based on your needs. It is a great way to contribute towards your financial goals without worrying yourself out.  5. SIP can be as little as Rs. 100  You can start a SIP for Rs. 100 or even Rs. 500. The choice is yours! Based on your needs and financial goals, your investment can be as little or as big as you want. You can gradually increase your SIP investments. Some mutual funds offer a Step-up option above a certain investment amount which means that as your salary grows, you can increase your investments as well.   How does the SIP calculator work? Read More Tax benefits of Mutual Fund Scheme for a child's future There are certain benefits when you invest via SIP. Starting a SIP in a tax saving like ELSS. This tax-saving fund has certain tax benefits. It also has a lock-in period of three years.   SIP plans in an ELSS fund from April to March (financial year) are eligible for Section 80C benefits for that fiscal year up to Rs.1.50 lakhs.  Top 10 SIP plans (mutual fund scheme) for child education Scheme Name1-Yr ReturnAUMProsConsAditya Birla Sun Life Frontline Equity FundExpense Ratio: 1.08%Min SIP Amount: Rs 10014.85% Rs 18,897.76 CrLower expense ratioAssets Under Management (AUM) of the fund are greater than Rs 15,000 Cr. When a fund crosses a certain AUM threshold, the returns from the fund tend to decrease or stagnate. The investors should monitor the performanceAxis Long Term Equity Fund Expense Ratio:0.72%Min SIP Amount: Rs 50014.85% Rs 28,556.83 CrFund has higher 3-year and 5-year returns as compared to the category average.ELSS fund – Tax haven for 80CAssets Under Management (AUM) of the fund are greater than Rs 20,000 Cr. When a fund crosses a certain AUM threshold, the returns from the fund tend to decrease or stagnate. Investors should monitor their performance.Parag Parikh Flexi Cap FundExpense Ratio: 0.96%Min SIP Amount: Rs 100021.11%Rs 8,701.65 CrFund has higher 1-year, 3 years, and 5-year returns as compared to the category average.Low expense ratio.NoneSBI Equity Hybrid FundExpense Ratio: 0.97%Min SIP Amount: Rs 50012.20%Rs 38,080.12 CrFund has higher 1year, 3-year, and 5-year returns as compared to the category average.Low expense ratio.Assets Under Management (AUM) of the fund is greater than Rs 20,000 Cr. When a fund crosses a certain AUM threshold, the returns from the fund tend to decrease or stagnate. Investors should monitor their performance.SBI Focused Equity FundExpense Ratio: 0.97%Min SIP Amount: Rs 50013.08%Rs 14,533.37 CrFund has higher 3-year 5 year and 10-year returns as compared to the category average.The fund has been in the market for over 10 years.High expense ratioAxis Bluechip FundExpense Ratio: 0.55%Min SIP Amount: Rs 500Rs 25,134.85 CrFund has higher 1-year 3-year and 5-year returns as compared to the category average.The expense ratio is on the lower end and the fund has no lock-in period.Assets Under Management (AUM) of the fund are greater than Rs 20,000 Cr. When a fund crosses a certain AUM threshold, the returns from the fund tend to decrease or stagnate. Investors should monitor their performance.L&T Midcap FundExpense Ratio: 0.77%Min SIP Amount:Rs 50067.18% ( 3 year = 7.25%)Rs 6,258.04 CrFund has higher 5-year returns as compared to the category average.The expense ratio is on the lower end.Assets Under Management (AUM) of the fund are greater than Rs 5,000 Cr.When a fund crosses a certain AUM threshold, the returns from the fund tend to decrease or stagnate. Investors should monitor the performance.HDFC Mid-Cap Opportunities FundExpense Ratio: 1.04%Min SIP Amount: Rs 50075.85% ( 3 year = 7.94%)Rs 25,779 CrFund has higher 5-year returns as compared to the category average.The expense ratio is on the lower endAssets Under Management (AUM) of the fund are greater than Rs 5,000 Cr. When a fund crosses a certain AUM threshold, the returns from the fund tend to decrease or stagnate. Investors should monitor their performance. Axis Small Cap FundExpense Ratio: 0.38% Min SIP Amount: Rs 50074.30% (3 year = 17.37%)Rs 4,724.14 CrFund has higher 3-year and 5-year returns as compared to the category average.The expense ratio is on the lower endNoneHDFC Small Cap FundExpense Ratio: 0.95%Min SIP Amount: Rs 50094.91% (3 year = 5.88%)Rs 10,024.44 CrFund has higher 3-year and 5-year returns as compared to the category average.The expense ratio is on the lower end.Assets Under Management (AUM) of the fund are greater than Rs 5,000 Cr. When a fund crosses a certain AUM threshold, the returns from the fund tend to decrease or stagnate. Investors should monitor their performance. Mistakes to avoid while investing in SIP plans  Here are some SIP plan mistakes that you should avoid as a new investor:  1. Investing in the wrong fund The most basic mistake in picking SIP plans is to invest in the wrong fund. This usually occurs when an investor is new and invests based on a friend’s advice or hearsay. It's important to do your own research, find out the fund house's previous performance, and the companies listed in the fund, and study its overall progress before starting any SIP plans. It's best to consult a professional before starting on this journey.    2. Investing a huge amount Many investors start strong but end up regretting it. Entering the market can be exciting and thrilling but you have to be careful where you are investing your hard-earned money towards. When picking up SIP plans, it is important to choose an amount you are comfortable spending and can consistently pay over the next couple of years to get the best returns possible.  3. Only for small investors or new investors This is a huge mistake while investing in SIP plans. Anyone can invest in SIP plans. Whether you are a financial advisor or a risk-averse investor, you can start a SIP for any amount and invest regularly. That is the beauty of SIP, it allows you to stay invested for a long at your own terms.   4. It is considered a short-term Investment SIP is not a short-term investment or a purely long-term investment method. It acts as both, the investor can decide how long they wish to stay invested, increase or decrease their SIP amount and even aim for big financial goals like a child’s education or retirement via SIP plans.   5. Not using the step-up SIP option Many investors do not increase their SIP amount and continue to invest at the same pace for a long duration. This is a huge mistake when selecting SIP plans and investing in them. As your income increases, it is important to increase your investments and SIP plan amount so that your financial goals are met in time and smoothly.  Which mutual fund scheme should you choose? Selecting the funds that are tailored to your investment requirement time horizon, income, target corpus, and risk appetite is the first critical step that you should take as a parent investing in your child’s education. One could start by investing in one fund and then diversifying to 2 or 3 funds by proportionately investing across the schemes. You should ideally aim for a smaller proportion of investments in small and mid-cap funds which bring in high returns (along with high volatility) and balance them with large-cap funds that have stable returns (lower than small and mid-cap). SIP calculator online for child education plans SIP calculator allows users to calculate and plan for child education. Users can calculate SIP over a period of time even before they start the investment process. SIP interest is based on compound interest. Just enter the amount you wish to invest and calculate your SIP. How to choose a mutual fund scheme for child education?  Choosing SIP plans depends on your financial goals. Ask yourself certain questions:   What are your long-term goals?  What are your short-term goals?  How much money do you wish to save for your retirement?  How much money can you save monthly and invest?  You can also consult a financial advisor who can help you create a financial plan to save for multiple goals and that can help you meet your daily wants and needs.   How to invest in SIP plans for child education on the EduFund App?  Step 1: Download and Sign up with EduFund  Go online with SIP plans with EduFund. Download the application and sign up with personal details. The whole signup process takes just 3 seconds.   Step 2: Identify your financial goals   The application provides a gamut of options for your child’s education. Evaluate the goal. You can save for short-term or long-term goals such as saving for school fees and saving for higher education in India or overseas. You can save for both simultaneously as well!   Step 3: Calculate the total cost with a FREE calculator  After identifying the goals, calculate the total costs of higher education for undergraduate or postgraduate studies.  You could calculate basing National or International academic education expectations. Select the specialization and the country you are seeking higher education.  Step 4: Get your investment map and invest  Soon after filing the details, you will get how much you could get after investing for the respective number of years. You will get a number of SIP plan suggestions that you could compare with yours.  You could increase or decrease the sum to invest monthly as per financials.  We provide an overview of your savings transitioning into returns until you get the investment sum. You could go for a lump sum payment if you are an entrepreneur with unstable finances.  Place the order as a secured investment through UPI or other methods. You could start with just ₹100 in Edufund SIP investments.  Step 5: Track, revisit and reset goals anytime  Once you set up a SIP plan, you can edit goals according to the revised economic situation. Edufund captures the sensitivity that comes with finances.  Revisit the plan and modify it as per goals and finances. You will get a new investment plan with new goals. Plan your savings accordingly.  Conclusion A financial strategy for your child’s education is an absolute necessity, given the high educational inflation that is prevailing in the world today. The strategy should factor in your income, target corpus, investment horizon, and risk appetite. Starting early in terms of investments lowers the financial burden in the future and helps you pave the path for your child’s dream career. There is no appropriate or right time to start investing in your child’s education because the right time is now. Note - The past track record of a fund is no guarantee of its future performance. FAQs Is SIP good for child education?  A SIP is a great way to save for your child’s education. You have the flexibility to select the amount and invest regularly in your chosen funds. You can also redraw the money when you need it or pause the SIP if you wish to do so. SIP is a systematic and disciplined way to save for your child’s future education.  Which mutual fund is best for child education?  Here are the top mutual funds that offer SIP for your child’s education:  Aditya Birla Sun Life Frontline Equity Fund  Axis Long-Term Equity Fund  Parag Parikh Flexi Cap Fund  SBI Equity Hybrid Fund  SBI Focused Equity Fund  Can I open a SIP for my child?  Yes, you can start a SIP for your child. Download the EduFund App and select the funds you like and start investing. How can invest in SIP for kids?  Explore several saving options on the EduFund app to save for your child’s future. Select the funds that suit your risk appetite and your goals. Invest an amount you are comfortable with and start saving!   Which SIP is best for kids?  Here are some mutual funds that offer SIP investments starting at Rs. 100 or Rs. 500:   Aditya Birla Sun Life Frontline Equity Fund   Axis Long-Term Equity Fund   Parag Parikh Flexi Cap Fund   SBI Equity Hybrid Fund   SBI Focused Equity Fund  Is a long-term SIP risky? Investing in SIP for the long term is highly effective and has lesser risk compared to making a lumpsum investment in mutual funds.  What is the best age to start a SIP? There is no right age to start a SIP. A systematic investment plan is a great tool to save for your child’s education. As many experts suggest, it is always beneficial when you have a long investment horizon, as it reduces the SIP amount needed to reach your goal. You need to invest early to have a long investment tenure. Investing early also may increase your returns on investment. TALK TO AN EXPERT DisclaimerMutual fund investments are subject to market risks and EduFund does not endorse any fund over another in this blog.

If you want to make the life of your child safe, secure, and rewarding, start investing INR 500 every month for the child as early as possible, say financial experts. Even a small amount of INR 500 will go a long way in creating a solid financial corpus if it is backed by good planning and a strong investment vehicle.  The right kind of investment is of utmost importance because it will safeguard the future interest of the child and lessen his financial burden. Best investment plan to invest INR 500 every month for the child Planning an investment of INR 500 every month for a child is a huge thing; hence investors need to consider many factors before finalizing the perfect investment vehicle.  1. Systematic Investment Plan or SIP Invest INR 500 every month for the child in mutual funds with the help of SIP, as the small amount will keep on adding and compounding to create a very large financial corpus. SIPs are one of the best vehicles because it encourages investing and saving consistently in a disciplined manner.  Start as early as possible because it will provide a large window for the fund to accumulate. For example, if the investment period is 20 years and the expected rate of return is 10% per annum, then a monthly sum of INR 500 can result in nearly INR 3,82,848.  Invest through the Edufund App, as it offers a choice from 4000+ direct mutual funds. It is easy to start and stop a SIP anytime you desire.  2. Direct Equity For investors who are not afraid to take high risks, the amount of INR 500 can be used to buy direct equity. Choose growth stocks as they will yield better returns (in the average range of 50%) than average equity, which is expected to yield a return between 13% - 15%. Remember, patience is the key to growth equity, and you have to remain invested for the long term to get solid returns.  3. Public Provident Fund (PPF) The PPF investments are for investors that do not want to take risks and are looking for safe investment vehicles. With a 7.1% interest rate, PPF is a long-term tax-saving investment scheme that can be opened in a bank or a post office.  4. Recurring Deposit Account The interest rate on recurring deposits is nearly 6.5% to 6.9% depending on the bank. The RD account can be opened in a bank or a post office where an investment of INR 500 will keep on accumulating and earning interest throughout the investment period. The RD account is for investors who want to keep their money in a safe environment and simultaneously earn some money. 5. Child Insurance Plans  Child Insurance Plans are some of the best vehicles to invest INR 500 every month for a child. There are child life insurance plans that can be paid on a monthly basis.  With an amount of INR 500, you can buy a term insurance plan that offers high death benefits.  Child investment plans are very advantageous because if in some cases the policyholder dies then the future premiums are waived. The insurance company then keeps on investing the premium amount on behalf of the policyholder, and the amount is given to the child as per the terms and conditions of the policy. Examples of child insurance policies with a premium under INR 500 per month are SBI Life’s Term Insurance Plan, where the minimum premium is only INR 365 per month, and the ABSLI DigiShield Plan, with a minimum premium of INR 477 per month.  If you have a girl child, then there are also several investment schemes just for the girl child. The government-backed scheme Sukanya Samriddhi Yojana was introduced specially to save the future of a girl child. You can invest INR 500 per month and the amount is payable after the maturity period of 21 years.  6. Stocks & ETFs Although stocks are considered risky, they have an advantage over some of the investment options, like recurring deposit accounts, because of high returns over a long period. ETFs are also high return cost-effective investment vehicles through which the investor can invest in entire sectors.  Conclusion Take a leap of faith and start the journey to invest INR 500 every month for the child because it will go a long way in creating a lump sum amount in later years.  Take the help of the investment experts on the Edufund app to create the best possible personalized financial plan for your child with an amount of INR 500. The strategies are backed by data, research, and appropriate tools like the investment calculator so that you will get better returns on your investment, and that too in a secure and transparent environment. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Goals that individuals plan for themselves before marriage can vary from person to person. Sometimes the goal is to have a fit body that looks amazing in a wedding dress and at other times, the goals are more long term like buying a house of their own or a car.  Marriage is a big event in anybody’s life and it is normal to divide your goals into pre and post-marriage. However, it is not enough to just have goals. You should plan out how you are going to lead your life post-wedding to achieve these goals While money is not the only important factor in a marriage, setting concrete and judicious financial goals becomes crucial to leading a happy married life.  Below is a list of things that you can do as a married person to lead a better financial life after marriage. 1. Open a separate bank account You might already have a joint account with your spouse but that is not enough. It is always advisable to get another bank account that will be solely devoted to your monetary expenses as an individual. Having a bank account exclusively for this purpose serves many purposes other than keeping you from mixing up your finances.  It might bear witness to how independent and responsible you and your partner are. Offering each other time and space can be as important as contributing to your relationship, financial or otherwise. In the long run, it bears testimony to how invested you are in your marriage.  Moreover, being in a marriage does not have to mean that you don’t have any personal goals anymore. These individual goals can be for yourself, your parents, your child, and so on. Having a separate bank account will also prove how invested you are in yourself despite being married.  2. Talk about finances  It goes without saying that in any relationship, communication is key. In a marriage, too, it is important to keep your partner in the loop, as you have decided to live your life together. Among other things that partners should talk about, money is one of the most significant. Being actively involved in marriage also means that partners should stay aware of each other’s monetary difficulties like debts. If your partner is trying hard to pay off debts, home loans, education loans, and the like, it should be a priority to help them overcome it. Romantic gestures need not just be about taking your partner out on dates or handing them a bunch of flowers. Being the person they can depend on in times of adversity can strengthen your bond tenfold.  3. Make a priority list  One of the most important steps in navigating finances is to make lists that state your financial priorities in order. Sit down with your partner and discuss at length if rent should come first or debts, or retirement savings.  Financial planning takes into account things like emergency funds and the first step to start planning these is to place them on your priority list. Ideally, emergency funds should come before investment plans. You should also start clearing up your debts as soon as you can. This way your EMI money will be ready to be spent whenever you need it.  4. Get started with budgeting immediately  Budgeting is indispensable if you are looking to manage your finances effectively. In marriage, you need to go about every step of budgeting along with your partner as you are managing a household together. Budgeting includes your daily expenses and putting away a part of your income as savings every month.  Planning is key, be it for expected or unexpected expenses. Put aside money on regular intervals for expenses you are expecting - those can be a phone or car upgrades or even getting a new house. For unexpected expenses, save money every month as part of an emergency fund. Be in constant touch with your partner about their financial goals so that you can find out how to be compatible.    Surveys often indicate that couples might face stress in their married lives over their unregulated spending habits. Creating separate buckets of savings for different expenses is the healthiest and most systematic way of budgeting. It saves you and your partner the extra tension and ensures happy married life.  FAQs How finances are best handled in marriage? The best way to handle finances is to have an open discussion around money and expenses. Talk about the shared expenses and individual expenses. Whether you have dependents like children, siblings and parents? Try to have two separate accounts for personal expense and a joint account for shared expenses. Plan and save for major events like raising a child, their education, buying a house and trip. What is the best way to budget in a marriage? The right way to budget in a marriage is to discuss the income resources and expenses with each other. Divide the expenses, find out how much you and your partner can contribute and follow the 50-30- 20 rule. Herein you can dedicate 50% of your shared income towards household needs, 30% towards wants and 20% towards savings. Who should be in charge of the finances in a marriage? Both partners should be equally in-charge and responsible for finances in a marriage. Its important to budget, save and investment as partners and discuss the well of contribution towards shared expenses openly. Conclusion Managing finances together with your spouse might not always be easy because as individuals you might have different monetary goals and spending habits. Nevertheless, keeping judgments at bay and instead, helping each other overcome their unhealthy lifestyles and financial adversities can go a long way in securing your marriage.  You can start your investment journey right away with your partner by downloading the EduFund app. Consult an expert advisor to get the right plan TALK TO AN EXPERT

To get started with family investments, you need to make a list of goals you want to invest towards. These will create different funds that can be utilized for your family's needs when those moments arrive. This might be your first time as an investor. Worry not for it is always a good time to start investing - be it as a collective unit or individually. However, if you are investing as a family, there will be some added responsibilities.  You can follow a few pro tips so as not to get confused when you have more than one investment to deal with.  Separate investments from savings  Investments are a lot like savings. We invest or save money for future use. But investments are a better method of securing your future because, unlike your savings, investments can generate more wealth by themselves. Thus, to enjoy the blessings of compounding, you are advised to separate your savings and investment. This means that you are required to not mix them up. It also means that you can have separate saving goals and investment goals. List down your saving goals and investment goals so that you do not lose sight of them. Keeping track of this will also help you decide how much money you can afford to invest depending on your income and expenditures.  Fixing your investment goals Once you can tell your investments apart from your savings, the next step is to compartmentalize your investments. Like savings, investments must also be divided according to different financial goals. That is to say, do not put all your money in one place with just one goal in mind. Divide your priorities and list them down. It is advisable to separate your personal financial goals from your family goals. Your investments can be directed towards creating funds for emergencies, healthcare, childcare, education, housing, retirement, and so on. These are the common needs of a family unit but you might have special requirements. Prepare your list of priorities accordingly.  Creating diverse investments  Simply compartmentalizing your investments is not enough; you are also required to diversify your investments. The trick is to invest in different places instead of investing in the same company stock or fund.  You must remember that, as a family, your investment goals can be quite distinct and miscellaneous. They vary not only in terms of the time you can give for the money to grow but also in terms of the amount you can invest in the first place. There are other factors like the level of risk involved and the percentage of returns you will enjoy in the long run. There are various kinds of mutual fund schemes you can opt for - large-cap equity funds, small-cap equity funds, mid-cap funds, debt funds, taxing saving schemes, and so on.  When you diversify investments, you play safe by ensuring that if you incur a loss on one investment, it will be balanced by the profits earned on another. Moreover, you can invest in International Equity funds to satiate goals like your child’s education abroad. This will ensure that you do not get affected by the market fluctuations of the Indian stock market. Also, your returns will have more value because a foreign currency like the US dollar is more stable. FAQs What should a family invest in? Investing as a family is important, from starting a PPF to SIP for mutual funds, you can explore a huge set of diverse options. Remember, investing is different from savings so make sure you do both as a family because there are many expenses to care for. What is the number 1 rule of investing? The number 1 rule of investing is to start early and never lose money. The power of compounding helps you save money and generate wealth for big goals like education, buying a house or starting a fund for travelling. What do 30 year olds invest in? There are many investment options for 30 year olds such as stocks, ETFs, mutual funds, etc. What are 3 good investments? Stocks, index funds, mutual funds and ETFs are 3 categories of investments that are considered good. Conclusion When you make investment decisions as a family, your kids learn from you. Thus, as a financial role model, your responsibility increases. As a married person, sharing investment goals with your partner as well as having separate individual funds is an example of healthy investing. This is the most organized way to make sure that one fund does not get compromised to fulfill a goal it was not originally meant for.  Similarly, try not to use up your life savings or retirement fund to send your kids abroad for a college education. Only prior well-planned investments can prevent such bewilderment from occurring. Investing systematically also means zero stress in your retirement life. Consult an expert advisor to get the right plan TALK TO AN EXPERT