Category Archives: SIP

According to a Times of India survey, single mothers head 4.5% of Indian households. Moreover, over 7% of parents are single and solely responsible for their child’s expenses. With education inflation pushing the cost of education over the roof, here is how single parents can save for higher education so that their child’s future is secure.   1. Proper budgeting  First tip on how single parents can save for higher education is Budgeting! It is extremely important for both the parent and the child. Your finances may suffer if you do not keep a track of when and where are you spending. Moreover, if you follow proper budgeting then it will help you track your monthly cash flow and analyze where you need to spend less.   You should set aside money for all your necessities as soon as you get your monthly amount. You must remember that if you follow proper budgeting and start saving early, it will help you gather a good corpus for your child.  2. Budget child expenses  The second tip is a tip on how single parents can save for higher education by budgeting child expenses! It’s important to track your child’s expenses as well. As a parent, you want to give the best to your child but it should not be beyond your monetary means. If you are a single parent responsible for pick and drop then try carpooling! Try to cut back on expenses where you can save and ensure your child gets the best of opportunities!    If you are choosing a school for your child, make sure that you make a list of them and then choose the one which provides good education and which fits your budget. Do not go for high-end schools just for the sake of the name. Make sure it’s in the neighborhood so that you don’t have to spend more money on transportation and your child can get home sooner to relax!  3. Create an emergency fund  The third tip is tip of how single parents can save for higher education is by creating an emergency fund! Emergency funds prove to be extremely handy in certain situations. If an unexpected circumstance comes up, it might as well take away all your savings which will be detrimental to your financial planning. Hence, you should focus on gathering an emergency fund for you and your child which should cover 12 to 24 months of living expenditure. It should also include loan EMIs. You have to be vigilant enough regarding any event which may come up and suck your savings. Make sure that you use this amount wisely and constructively.  You can build up an emergency fund in just three steps:  Decide the Size of the Emergency Fund  The thumb rule to generate an emergency fund is to focus on saving a corpus amount that can cover your expenses for more than 6 to 12 months.  Identify Highly Liquid Savings Product  Some of the common options for creating a contingency fund will include liquid or money market funds, short-term debt funds, savings bank accounts, floating rate funds, and so on.  Proper Financial Planning  In the final step, you have to make sure that you set aside a portion of your monthly income for generating this emergency fund. You should go for an automated procedure by setting up a SIP in a liquid fund or alternative debt fund.  4. Establish bank limits  Another tip is to set bank and credit card limits! Avoiding debt is the initial basic step that is crucial for saving up for your child. Next, you need to make sure that you are not spending more than what is required. For this purpose, you can set a limitation on your bank account. In such a scenario, you need to have a proper discussion with your child over the needs and the expenses involved.   The discussion should be candid or transparent with proper financial concerns, boundaries, and needs.   5. Invest wisely  The last tip is a tip on how single parents can save for higher education is to invest wisely. Investing in wise options is quite essential for single parents. Risk factors can lead to the demolishment of the generated corpus for your child’s education. Hence, you should invest in equity and mutual funds only if you have 10 to 15 years left for your child’s higher education. You can go for public provident funds which assure you a basic amount of interest for the amount that you put in.   There are recurring and fixed deposits in which you will get an interest based on what has been fixed by the bank. Moreover, you have options such as gold ETF where you can invest in gold.   While investing in gold ETF, make sure that you do not invest in the physical form of gold. These investment options will work really well if start with them as early as possible.  FAQs What are some practical strategies for single parents to save for their child's higher education? Single parents can save for higher education by creating a budget, exploring government aid, starting a monthly SIP to save for their child's education, and seeking scholarships and grants. How can single parents balance saving for education with other financial responsibilities? Single parents can strike a balance by setting clear financial goals, creating a budget, and prioritizing saving for education alongside other essential expenses. Can single parents benefit from education-focused scholarships and grants? Yes, many scholarships and grants are available specifically for single parents. Research and apply for these opportunities to help reduce the financial burden of education. How can single parents involve their children in the process of saving for higher education? Single parents can teach their children about financial responsibility and the importance of education by involving them in discussions about saving, setting financial goals, and exploring scholarship opportunities together. Are there community resources or organizations that provide support for single parents saving for higher education? Yes, some community organizations and non-profits offer financial literacy programs and support for single parents seeking to save for their child's education. Research local resources for assistance.

We are always prepared for when the markets are correct. As rational investors, we know we should invest more in equity-based investments when the markets are low. But, do you know the right action to take when the markets are at a high? Traditional investor mentality Whenever the markets witness sharp extremes of high or low, investors become cautious about their next move. However, being extra cautious can often reduce the potential of the investments and make the investors take decisions that do not serve their best interests. Traditional investors usually see the market high as the perfect moment to stop their ongoing investments and sell their holdings. They then wait for market corrections to re-invest this money. This can be the right decision for investors who require money at that point in time. But liquidating your assets can create a huge speed breaker in your wealth creation journey. Investment strategies during the market boom 1. Review your portfolio This is the first step before you take any decisions related to your investments during extreme market movements. Do a thorough analysis and review of your portfolio. In this review, make sure you go fund by fund to check the performance. A detailed portfolio review will help you know what has changed in your investments from the time you invested in those market conditions. 2. Rebalance your portfolio The market volatility directly impacts your portfolio's asset allocation. E.g., when you would have begun your investment journey, your portfolio's equity: debt ratio would have been, let's take, 50:50. But when the markets boomed, the equity: debt would have increased to 70:30. This causes over-exposure to equity, which thereby increases the risk component of your portfolio. As an investor, you should periodically rebalance your portfolio or as and when the market demands so that your portfolio still performs optimally and you are way ahead of the market curve. 3. Invest in dynamic asset allocation funds A DAAF follows an intelligent asset allocation strategy depending on the market conditions. It works this way – When the markets are overvalued, this fund cuts down on its equity exposure and increases the debt allocation. In contrast, when the market is undervalued and has the potential to grow, this fund increases its asset allocation towards equity and reduces the debt exposure in its portfolio. Such funds provide the investors with the best of both worlds, that is, equity and debt, and generate steady returns regardless of market movements. This balanced fund investment is best for investors with a low to moderate risk appetite. Additional read: Importance of starting investment early 4. Give importance to value investing Even when the markets hit record highs, some stocks or shares are valued way below what they are worth. Value investing is an investment strategy that invests in stocks that are trading way below their intrinsic value and have a much higher potential for growth in the future. Investing in such stocks or funds providing exposure to such stocks helps the investor gain growth opportunities in their portfolios. 5. Avoid lump sum investments in equities The worst time to make lumpsum investments in equities is when the market is already booming and has a high P/E ratio. This means that the markets are already overvalued, and a correction is coming soon. The market movements follow a wave pattern, where every time the market goes up, it corrects to a certain level. Instead, you could make SIP investments in equities, which captures all market movements and also gives you an additional benefit of rupee cost averaging. 6. Goal-based investing Make a detailed investment plan to efficiently and effectively allocate your income. Make a set of objectives that you want to achieve with your investments. It may include buying a house, purchasing a car, planning an international holiday, or your child’s higher education abroad. When you know what you are investing for, you know what corpus you want to end up with. This helps you make your investment journey as smooth and straightforward as possible. The bottom line is, that when the markets are at a high, do not sell your investments hurriedly and re-invest entirely in the debt market. Also, putting your investments on hold can hurt your long-term goals and objectives. Follow the proper steps into rebalancing and diversifying your portfolio to ensure you are always in a comfortable position regarding your investments. Moreover, short-term volatility is not harmful to long-term investors. Always keep your goals in mind and invest systematically. FAQs What investment strategies are advisable during a market boom? The best strategy is to maintain a diversified portfolio, regularly rebalance your investments, and focus on long-term goals rather than short-term market fluctuations. Is it wise to invest aggressively during a market upswing? While it's tempting, avoid excessive risk. Stick to your risk tolerance, and consider gradual increases in equity exposure rather than abrupt shifts. How can I protect my investments during a market boom? Review and update your asset allocation, set realistic profit-taking goals, and stay informed about market trends to make informed decisions during periods of growth.

Kings College London is one of the most reputed colleges in the whole world. The cost of attendance varies significantly based on your child’s course and can go up to 48 - 50 lakhs in total. Let’s find out how you need to save to send your child to King’s College London.   Tuition fees for courses in King's College, London  The tuition fees for the courses offered at Kings College London are quite high compared to the adjacent colleges. Let’s look at some of the popular courses chosen by students and their corresponding tuition fees.  MBBS: Rs 41 to Rs 43 lakhs per annum  MIM: Rs 23 Rs 36 lakhs per annum  BE: Rs 27 to Rs 29 lakhs per annum  MA: Rs 19 to Rs 28 lakhs per annum  BBA: Rs 21 to Rs 28 lakhs per annum  With the data mentioned above, we can conclude that getting a degree from Kings College London can be heavy on your pocket. Hence, if you would want your child to get admission here, you must start preparing for it early on.  Saving and Investment Options for a Child’s College Education  1. Find out the Cost of Attendance  Suppose you want to buy a house in 10 years, what is the first thing you do? You will find the house you like and the cost of buying it. Similarly, before you start saving to send your child to King’s College London, you need to figure out what will be the cost of attendance in the next 10 years of your child’s course and figure out the solution.   You can look at the past and data to estimate the average tuition fees or simply use the College Cost Calculator to find out how much you need to save after putting in just a few details. The calculator tells you precisely how much it can cost to send your child to a college anywhere in the world.   On average, it costs Rs. 48-50 lakhs to study master's while the cost of attendance for a bachelor is Rs.70-80 lakhs in total.   2. Mutual Funds  Mutual funds are considered to be one of the best options to invest in if you have a child who is still quite young.  You can start a SIP for Rs. 1000 or more and scale your child’s education fund by the time they are ready to fly off to college. Mutual funds offer professional investment management, diversification, and liquidity. At a nominal price, you get access to different industries, companies as well as different markets. Always check with a professional financial advisor before pooling your money in any investments and read the fine print to stay updated.   Start Investing in Mutual Funds 3. Public Provident Fund  Public Provident Fund is a tried and tested way to save to send your child to Kings College London. PPF is one of the most reliable savings schemes opted for by parents for their child’s education. This scheme requires a 15-year-long commitment for the corpus. As of now, the interest rate offered here is 7.1% which is more than what is offered by banks. Presently, banks offer an interest rate of around 5% per annum. Parents can choose to increase the tenure of investment in blocks of five years. After the extension of the PPF account, the subscriber is allowed to make one partial withdrawal every year. However, a restriction is imposed here which says that the total withdrawals during those particular five years should not be more than 60% of the total account balance.  4. Gold Savings  Gold savings is one such option that has existed for so long now. Gold is said to have an ever-increasing value. While investing in gold savings, you should make sure that you do not invest in physical gold. As a parent, it would be best if you invest in Gold ETFs and Digital Gold.   You can follow a strategy where you can buy a small amount of gold every month. Once you have collected enough, you can build up a sizeable one with those small amounts. It has been observed that investing in gold has provided much better returns when compared to other assets.   Gold is a hedge against inflation and works with it. In times when the prices of all goods rise due to high inflation, gold also rises, making your investments diversified and inflation-proof!   Additional read: Why should you consider the UK for your child's higher education? 5. US Stocks  Investing in US stocks to send your child to King’s College London is an underutilized tool! Saving in dollars has dual benefits, you not only benefit from your initial investment as the US market grows but also when the rupee falls against the dollar. Investing in US stocks also increases your purchasing power abroad, it helps you tackle the increasing costs and not lose out more money in currency exchange.    6. Unit Linked Insurance Plan  The Unit Linked Insurance Plan is said to be the best fit for individuals who are looking for both investment returns and insurance protection. It has been observed that ULIPs have been able to provide better returns than many traditional investment options. It helps to beat education inflation and save up effectively for your child’s college education. In this scenario, the chance of getting better returns is higher because a portion of the premium that is being paid is invested in the funds operated in the capital market.   These are some ways to save to send your child to King’s College London. TALK TO AN EXPERT FAQs What are the estimated tuition fees for courses at King's College London? Tuition fees vary based on the course, ranging from approximately Rs 19 lakhs to Rs 43 lakhs per annum. The total cost of attendance can be substantial. How can I estimate the future cost of my child's education at King's College London? You can use a College Cost Calculator or refer to historical data to estimate the average tuition fees for the next 10 years. On average, it costs Rs. 48-50 lakhs for a master's degree and Rs. 70-80 lakhs for a bachelor's degree. What are some investment options for saving for a child's education? Investment options include Mutual Funds, Public Provident Funds (PPF), Gold Savings (Gold ETFs and Digital Gold), US Stocks, and Unit Linked Insurance Plans (ULIPs). Each option offers unique benefits and should be considered based on your financial goals and risk tolerance. Are there any recommended investment strategies for saving for education at King's College London? Starting a SIP (Systematic Investment Plan) in Mutual Funds is a popular strategy for long-term savings. Diversification, professional management, and liquidity are some advantages. Additionally, consider PPF for a reliable and tax-efficient savings option. How can investing in US stocks benefit saving for education abroad? Investing in US stocks can offer dual benefits. As the US market grows, you can benefit from investment returns. Additionally, when the rupee falls against the dollar, your investments gain value. This strategy can help you manage increasing costs and currency exchange risks when sending your child to King's College London.

Both life and wallet will never be the same once you decide to have a baby. No event in your life will signify financial change quite the way this one does, from the first prenatal appointment to the day of college graduation (and beyond). 5 financial things to consider before child planning 1. Create a budget Before you start child planning, you need to have a budget in place. You and your partner may need to create a realistic budget based on your expenses and your streams of income. Once you know how much you can afford to spend, you will be able to tackle the costs easily. A new child is a new family member that needs space! So if you need extra space once the baby is born, figure out what kind of home you can afford, whether it's a slightly larger apartment, a warm cottage, or a pricey house. Will you want the latest baby things or your sister’s passed-on ones? Think about what sort of child care would you require and get candid with your expenses before you start making any purchases. Money Management Tips for Homemakers Read More 2. Costs associated with birth As new parents, you need prenatal vitamins, alternative therapies, labor and delivery alternatives, and screening tests. Give yourself enough time to change or upgrade insurance plans should you need more comprehensive coverage. Good health insurance is vital in this economy. Hospital bills, medical fees, and maternity costs can be high. According to estimates from the industry, a straightforward delivery could cost between Rs 50,000 and Rs 70,000, but a private specialty hospital could charge up to Rs 2-3 lakh. A cesarean delivery could result in a cost rise of up to Rs 4-5 lakh. Before having a kid, you should make financial arrangements for the costs associated with the delivery and child care. 3. Consider maternity leave The vast majority of Indian employees are not entitled to paid family leave. If the mother is employed, you might need to think about taking a lengthier (unpaid) maternity leave or a sabbatical for a year or two. This can be a huge financial loss for families that rely on both streams of income. Paid parental leave is not always an option. Find out if your workplace offers paid leave for new parents and if there are any policies in your favor that you can utilize. Determine the number of weeks covered and the proportion of your salary that is used. Do you have to use your sick and vacation days first? If you don't have access to paid time off or you're going to take more unpaid time off, you might want to cut costs or rely on your savings. 4. Purchase life and health insurance You'll want your child to be stable financially if something were to happen to you or your partner. A life insurance policy can assist in paying for things like child care, housekeeping, cooking, and more. Purchasing maternity insurance is the first action you can take to cover maternity costs. When purchasing health insurance, (even for a couple), it is important to confirm that the policy includes coverage for maternity costs and, if applicable, any applicable waiting periods. Additionally, by paying a larger rate, you might add pregnancy coverage to a current insurance policy. Buying health insurance is most important when considering having a child. Get your health covered in your plan so that you are not financially burdened in case of a health emergency. 5. Plan for the child’s education Just like the prices of lemons and oranges are growing, the cost of education is skyrocketing. Saving for your child’s college is a necessity. When it comes to saving money for college, time and compound interest are your best friends. Even while inflation is an unavoidable fact, keep in mind that education inflation is far higher. Utilizing the force of compounding is one approach to combat this, but it will only be effective if you have a long-term strategy in place. You indeed have no idea what career path your child will take, but you still need to put aside a portion of capital that can be utilized when the time comes. Right now, you need to think about the type of education you would like to offer because the practical costs of studying engineering in India vs. the US would be very different. From giving birth to seeing them off to college, watching your child grow and thrive is every parent’s dream! So give those dreams wings by planning ahead and investing for their bright future!  TALK TO AN EXPERT

How much I need to save to send my child to Harvard University is one of the top queries of a parent who wants to send his child abroad. Harvard is considered one of the best universities in the world, offering varied graduate and undergraduate programs like business administration, business management, bioengineering, law, economics, arts and science, sociology, etc.  Students dream of studying at this university but only a few with academic excellence are given the chance to step onto the campus to study and fulfill their heart’s desire.  Imagine if your child is one of the selected few who have managed to gain entrance to this top university. But what happens if they are unable to enroll just because they do not have the required funds?  At such times the first thought that crosses the mind of a parent is that it is necessary to plan and save to send my child to Harvard University from an early age. Start Investing in Mutual Funds Steps required to plan and save for sending a child to Harvard University How much I need to save to send my child to Harvard University is a question that can be answered by following the subsequent steps: Know about the current cost of education at Harvard University When your child starts showing an affinity for a specific course it is the right time to start planning and saving for his further studies. Be aware of the cost of studying at Harvard University, for example, on average the fee structure of most of the 3-year and four-year academic courses varies between $50,000 - $70,000 (Rs. 40 to 55 lakhs). Factor in the expected expenses  Tuition Fees:  Identify the tuition fees and the other mandatory fees  Room and board: Most of the students prefer to live on campus as it is less expensive compared to outside accommodations. It also offers easy access to meals, classes, and extracurricular activities which is a blessing for students who have traveled from different parts of the world to this esteemed university Transportation costs: If the student is living out of campus then the transportation cost should also be added to the total cost Food expenses: Factor in the food expense for both on-campus and off-campus scenarios Education inflation: You need to add the inflation rate (minimum 7%) to the total cost. You don’t need to guess - you can calculate this cost by using the College Cost Calculator for Free!  Calculate Cost of studying in College Calculate the average costs Calculate the average costs of studying at Harvard and identify how much money you need to save to send (\your child to Harvard University.  Go through all the expected costs and identify an average amount that you need to shelve out for instance 60,000 dollars (Rs. 47 to 48 lakhs). Now calculate how much time you have before sending your child abroad. Get a rough estimate about the amount you need to save every year, for instance, 60,000 dollars/8 years which amounts to 7500 dollars per year (Rs. 5- 6 lakhs) Effect of compounding Make the most of the compounding as it will reduce the principal amount to a great extent and magnify your returns. If a parent wants to save 60,000+ dollars, she will have to shelve only an average of an estimated 5,500 dollars instead of 7,500 dollars @ 5% interest per annum for eight years. Research the best available saving option that will help to save with better interest rates. Or you can talk to an expert to understand how much I need to save to send my child to Harvard University. It is a step in the right direction as it helps parents to plan and save effectively within their budget with the help of India’s first college cost calculator and with a curated plan to achieve that target.  Plan and start investing Parents who start planning for their child’s future from the very beginning have an additional advantage over parents who realize the importance of saving at a later stage. If you are one of the late investors do not panic, you can still make some well-advised investments that can help you make up for the lost time and get the required help in the planning and saving process for the child’s brighter future at Harvard University. Start Investing in US Market FAQs How much does it cost to send your kid to Harvard? The total annual cost to attend Harvard University, including tuition, fees, room, and board, was approximately $76,000. How much do you need to donate to get into Harvard? Donations to Harvard University, while they can have an impact on the institution, are not a direct means of securing admission. Harvard, like other reputable universities, has a competitive admissions process based on academic excellence, personal achievements, and other factors. Admission cannot be guaranteed solely through donations. Is Harvard expensive for Indian students? Yes, Harvard University's tuition and living expenses can be relatively expensive for Indian students due to currency exchange rates and the overall cost of living in the United States. However, Harvard does offer financial aid and scholarships to international students, which can significantly offset the costs for those who qualify. How do I raise my child to go to Harvard? Raising a child with a strong foundation for potential admission to Harvard involves fostering a love of learning, encouraging curiosity, developing leadership and community involvement, and maintaining excellent academic performance. Focus on their interests, extracurriculars, and character development while also allowing them to explore and pursue their passions.

If you consider Tier 1 cities, then families of these cities spend almost an average of Rs 43,000 annually on the school education of their children. Tier 4 cities spend nearly Rs. 29,000 annually on children's education. In after-school education, an average parent spends 16,000 a year.   If you want to send your child to a quality university, you need to save money regularly for this goal for at least 8 years. Parents have to consider the rising education costs of education, and a suitable university, whether it is foreign or local. You also have to start saving towards living expenses like accommodation, food, transport, etc.  Applying for an education loan is the first option many parents consider when their child is ready for college. While you can opt for an education loan, it is advisable that you start saving money early in different investment schemes so that after 15-20 years, when your child is ready for college, the loan amount is reduced.  Ways to save for child education:  1. PPF Public Provident Fund is considered one of the safe investment options while investing for the long term where the funds are locked for at least 15 years. You can create a PPF account with any bank or post office and start saving your income for a good future return in the coming years. It has the ability to grow your money. The rate of interest of PPF in 2012 was 8.80 % which is now 7.60% in the year 2022.   2. Mutual Fund The fund grows when the market rises. The overall return after a long period comes through stocks, equity, debt, and even from money market funds. You can invest in a (systematic investment plan) SIP for both the short-term and long-term, and it is an efficient tool to save money.  Equity and debt are some securities where investors’ money is invested in mutual funds.  3. Fixed deposit A fixed Deposit is considered a safe investment option though the returns are comparatively low. If you invest a lumpsum amount through FD, you will get a fixed percentage on the amount. The interest rate ranges from 5.75% for regular investors and 7% for senior citizens for 1 year.  4. NPS National Pension System is a government-based savings option. The fund invests in government securities, bonds, and even equity. It provides investors with two options to invest in active and a default auto. In the auto option, the funds are invested in an automatic way. In the active option, the investor invests in the assets of their choice. It matures when the investor turns 60 years. The overall pension withdrawal amount is tax-free as per the scheme.  5. RBI bonds Taxable RBI bonds have a tenure of almost 6 years, and it gives an interest rate of 7.75% per year. It is available in the Demat mode, and it gets credited in the BLA( Bond Ledger Account) of the investor. For proof of investment, the bond is issued at Rs. 1000, and investors even get certificates of holding.  6. Direct equity Direct equity is another investment option to consider while investing in the long term. Though investors find it a risky option, the return is much higher compared to other investments. For 1, 3, and 5 years of investment, the return is 8,13, and 12.5 percent, respectively. source: pexels Hire a financial advisor  If you are still confused about the best savings option for your child’s education, then you can consider talking to the best financial advisors on the EduFund app. The financial advisor will guide you as per your financial needs and risk profile.    The upside is that all this can happen in a matter of minutes and a few taps without any hassle. Parents can take the expert's suggestion and invest the money accordingly to minimize risk and find a way to get a better return on investment. The financial advisors help you rebalance your portfolio on a regular basis to give your funds a better chance of growth when the market sees drastic changes.    Conclusion  As a parent, it is very important to start saving for your child’s education as early as possible to fight the rising costs of education. While applying for a loan is an option, it is wise to reduce the loan amount and save for most of the cost through investment to minimize or avoid the financial burden. FAQs How much do families spend on school education in Tier 1 and Tier 4 cities? Families in Tier 1 cities spend around ₹43,000 annually on school education, while Tier 4 cities spend about ₹29,000 per year. What's the importance of saving for education if you want to send your child to a quality university? To send your child to a quality university, regular savings for at least 8 years are crucial. Rising education costs and living expenses need to be considered. Should parents rely solely on education loans for college funding? While education loans are an option, it's advisable to start saving early through investment schemes. This approach reduces the need for larger loans in the future. Disclaimer:Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

There are many roadblocks to investing as a woman – unequal pay, lack of financial knowledge, lack of personal finance help, the burden of the pink tax, feelings of intimidation and confusion, etc.   But the winds are changing, and more and more women are taking charge of investing their money in personal goals, family, and their child’s education.   The conversation about money, wealth generation and the need to start investing early is finally brewing – let’s see how women can start their investment journey.  Why should women start investing?  Investments are the key to a brighter and financially independent future – whether it's early retirement or financing your child’s Oxford education in 10 years. Investment can help you attain these goals.   In India, the percentage of women investors is very low. According to Financial Express, only 14% of women are investing in mutual funds and 10% in stocks.  Women in India make the mistake of only investing in Gold or Fixed Deposits. The rationale that these investments are safe and secure prevents them from taking risks and aiming for wealth generation.   With the inflation soaring high, women investors who are earning can start investing as low as Rs. 100 every month. This small amount can benefit from the power of compounding and help them save for different goals like a holiday, a degree, a car, or an emergency fund!  Homemakers who have saved up some money can also invest! Starting an SIP for a mutual fund can help you save for different financial needs and get a greater interest rate than any savings account or FD investment. This can go towards their child’s education or a home. The great thing about starting a SIP is that you can pause as well as increase the base sum based on your income and savings! Create Goals before Investing Source: pexels When should women start investing?  ‘Right now,’- is the best time to start. Whether you are 18 or 40, investing can start at any time. Starting early does have its set of benefits but that should not stop you from saving right now. Most young investors enter the market in their 20s and 30s.    If you are new to investing, consult a financial advisor. Talk money with your accountant and understand what are your future goals and what is the best route to achieving them. They can help you invest in a bunch of tools that will not any diversify your wealth generation but also make it less risk-prone.   Consult an expert advisr before investing What kind of investments work better for women and why?  Investments are not gendered; anyone can invest in any investment tool. What matters is your risk profile, investment capacity, and goals. Here are some investments that women can explore:  1. Mutual funds   Mutual funds are a great way to start investing. You can simply begin with a SIP in your favorite fund. This allows you to invest a certain amount of savings every month, this amount is auto-debited from your account every month without the stress of manually investing the sum. Mutual funds are easier to manage than stocks because there is a fund manager to help protect your savings and investments.  2. Exchange-traded funds (ETFs)  An ETF is primarily a basket of assets and securities such as equity, debt, stocks, bonds, commodities, or currencies. You can purchase a unit of these securities, just like buying shares of a company. ETFs are like a cross between stocks and mutual funds, they are traded on the stock exchange and offer the diversification benefits of mutual funds.  3. Stocks  Stocks, known as equities, allow you to own a part of a company. There are shares for TATA, Reliance, Unilever, Nykaa, and thousands more available for investors to pool their money in. You can pick the company you believe will grow in the years to come. Buying stocks is more volatile and riskier in nature. The decision to buy and sell resides with you.     4. US Market  Investing in US Markets is possible for every investor and a great way to add geographical diversification to your portfolio. There are two ways to invest in US markets direct stocks or ETFs. This is an opportunity to make the most of the falling rupee and gain returns in dollars. US markets allow you to do rupee hedging; which means you will have more funds by allocating the same amount of money in dollars than in rupee because of the greater value of US dollars.   If you want to make wise investments then get in touch with a professional financial advisor. They can help you understand the value of choosing investments based on your goals, and risk appetite as well as how to shift your funds from one basket to another when the market fluctuates!   Invest in US Market 5. Investment mistakes to avoid   The biggest mistake a woman can make is not investing! Many women in India shy away from the market because of the fear of risk or knowledge. This decision can be detrimental in the long run and will be a huge hindrance in the face of wealth generation!   6. Fearing loss and not taking risks  Many women and men hurt their chances of wealth generation by playing it safe. They are too cautious and do not allocate enough funds to different assets and lose out on the money they could have accumulated over the years. Thus, don’t be averse to taking risks especially if you have time on your hands.    7. Allowing your partner to make an investment decision  Indian women rely on their partners to make investment decisions for them. To be truly independent, you have to manage your own wealth generation and investment portfolio. Try to be aware of the investments you make and whether they will help you achieve your goals in the future.  8. Putting their money in only physical gold   Gold is a great investment but it should not be your only investment. Indian women spend lakhs of rupees buying gold jewelry as a form of investment but they forget that there are maker charges, storage issues as well as the possibility of loss when reselling the items. Instead, if you are a gold-lover then look at Digital Gold, Gold ETFs, or Bonds to invest. It’s important to only keep some portion of your portfolio dedicated to gold.   9. Keeping cash in savings accounts or fixed deposits  Saving money in accounts or fixed deposits beyond a limit is counterproductive. Banks do not offer a great interest rate, which means your money is losing value against the rate of inflation in the country. Try keeping some money in the bank while a majority in growth-oriented investments like MFs, PPFs, ETFs, Bonds, etc.   Women in India are gradually catching up! With thousands of investment options, young women and men find it hard to remain neutral on the benefits and risks of investments. The only way to make money is to invest money. Investing can not only secure your future, but it can enable you. Enable you to send your child to the best schools or enable you to take that Europe trip. Big or small, investing can help you actualize your dreams faster than any form of wealth creation tool. FAQs Why should women start investing? Investments empower financial independence. In India, only 14% of women invest in mutual funds and 10% in stocks. Diversify from traditional investments to grow wealth. What investment mistakes to avoid? Avoid not investing out of fear. Don't rely solely on partners' decisions. Diversify beyond gold, move beyond savings accounts, and understand that caution can hinder growth. When should women start investing? Start now, regardless of age. Consult financial advisors for personalized plans aligning with goals. Begin with SIPs, mutual funds, and equities, and explore US markets. What investments work better for women? Investments aren't gender-specific. Consider mutual funds for steady growth, ETFs for diversification, stocks for ownership, and US markets for currency gains.

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

Earlier we discussed the cookie jar investment method. In this article, we will discuss more investing options. Every investor wants to put their money into the best investment alternatives to get the best returns. Some people invest for financial security, while others meet their investment objectives.   Your investing alternatives are dependent on your risk tolerance, investment horizon, financial goals, and liquidity requirements.  In reality, risks and returns are precisely proportionate. That means the greater the risk, the greater the likelihood of returns will be. There are primarily two kinds of investment opportunities in the country.   That is financial and non-financial assets. We can further split financial assets into market-linked assets such as mutual funds, stocks, and ETFs. Some fixed-income products are bank FDs, PPFs, and Bank RDs.   Gold investments, real estate, Treasury bills, and other non-financial assets are also examples.   Let us now see which of these different investment options is suitable for India's various categories of investors.   Source: pexels Investment Options for Housewives   Housewives are often left behind in the race to make investments. However, there are many options in which a housewife can put her savings to grow her money.   Some of the best options are investments in direct equity (if they have a relative level of experience) and mutual funds. By investing in mutual funds, they can reap the benefits of professional management of their money and diversification of investment.   Investment in ETFs, bonds, and even PPFs are viable options to grow their savings over time steadily.  Investment options for salaried people  Salaried people often struggle with managing their expenses. As a salaried employee in India, you will have various investment opportunities to invest and increase your hard-earned money wisely.  Different instruments are available for investing ranging from traditional investment options like fixed deposits, recurring deposits, national pension schemes, and ULIPs to modern investment options such as investing in shares, cryptocurrencies, etc.   Investments in stocks and cryptocurrencies can provide returns as high as 10 to 15% per annum. At the same time, safer investment options include mutual investment in mutual funds like equity mutual funds and debt mutual funds.   Most risk-free investment options are bank fixed deposits, government bonds, etc. Salaried people have great potential to create wealth if they budget their expenses and investments.   Investment options for senior citizens  In old age, the thirst for returns is not as high as in youth. So, senior citizens usually need investment alternatives that mainly protect their money rather than growing it.   So, the need is for safe investment options. For elderly people over the age of 60, the Senior Citizens' Savings Scheme. It is one of the risk-free tax-saving investing choices available in the country.   It is one of the most significant investment ideas for seniors because they get a steady income in the form of a competitive interest rate of 8.6% per annum, making it a highly profitable investment option.  Another viable option is the Pradhan Mantri Vaya Vandana Yojana. It is for elderly adults aged 60 and up and provides them with a guaranteed return of 7.4% p.a.; pension income is payable monthly, quarterly, semiannually, or yearly depending upon the option selected.   Some other instruments include the Post Office Monthly Income Scheme and National Pension Scheme.   Low-risk investment options  Investments with low risk are always popular because they do not exhibit unnecessary volatility, so investors have less worry about the undertaking.   Low-risk investment options include Fixed Deposits, National Savings Certificates, Public Provident Funds, National Pension Schemes, and Gold. All these investment options are primarily fixed-income type investments – guaranteeing a particular level of return.   Gold has historically risen in value through tough times and often proves to be a hedge against inflationary pressure in the economy.   Investment options for students   As a student, you usually do not have too much money, but the biggest thing you have is time – which you can use to your advantage. Also, as a young investor, you have the option to take a significantly higher risk in terms of your investment options.   Students can invest even fundamental amounts through Systematic Investment Plans (SIPs) every month in mutual funds, index funds, and ETFs. Acquiring knowledge about bond investment will also be beneficial.   Since students have a higher risk appetite, they can also mobilize a small part of their investment amounts into cryptocurrencies after thorough research. Since there is less expendable money, choosing free brokers or low-cost brokers is essential.   Using simple rules of spending, students can save and invest small amounts over a long period and thus, grow their wealth. Investing Options - Summarised 1. Equity Shares Direct equity investment, out of all the investment options covered here, delivers the best combination of stock appreciation and dividends.   When a long-time horizon (10 years or more) is taken into account, equity markets can be somewhat unpredictable in the short run, but they provide greater inflation-adjusted returns.   You can diversify your portfolio by purchasing stocks from companies in different industries, allowing you to account for economic growth in other sectors.   Equity is the riskiest asset class due to the unpredictability of global markets and the probability of sectoral instability. When markets crash during difficult economic circumstances, there is always the risk of significant capital wipe-out.   2. Equity Mutual Funds Mutual funds that invest in equities are known as equity mutual funds. Instead of buying individual stocks in a specific industry, you can buy a mutual fund that encompasses that industry's growth. These are less hazardous due to their diversified nature.   An equities mutual fund invests more than 65 percent of its assets in the stock market (according to SEBI rules). An equity mutual fund can be active or passive.   Fund management's expertise also influences these mutual funds' performance.   3. Debt Mutual Funds Debt mutual funds, as the name implies, invest most of their assets in debt instruments. These funds are appropriate for investors with a moderate risk appetite and desire for consistent returns.   Government bonds, corporate bonds, treasury bills, and other money market instruments are also in the portfolio of debt mutual funds. Low risk does not imply that there is no risk.   Credit risk and interest rate risk are two risks that you should be aware of before investing in debt mutual funds.   4. Fixed Deposits (FD) A bank FD is safer than practically every other investment choice. With a high level of safety comes a poor rate of return.   FDs are a method to maintain your money where it is (returns are often so low that they don't even keep up with inflation), not a strategy to increase it.   Depositors have protected up to a maximum of Rs 5 lakh apiece in the event of a bank failure (under the Deposit Insurance and Credit Guarantee Corporation).   Bonds: Bonds are fixed-income securities representing a loan a borrower advanced to the investor. When governments or even listed companies want to raise money in the form of debt, they issue bonds to the public.   You can purchase these bonds in the bond market. Bonds offer fixed interest payments to the bondholders (a variable interest payment system is also there).   Bond prices and interest rates move in the opposite direction. At the time of maturity, the total principal has to be returned. There are different types of bonds, like government, corporate, and municipality bonds.    The risk of investment in bonds also arises from the possibility of potential inflation outstripping the rate of interest on the bonds.   Furthermore, when you buy bonds that are not well-rated, there remains a chance of default, wherein you might lose out on what you lent out.   5. National Pension Scheme (NPS) This investment vehicle is for people over 60. PMVVY offers a 7.4% annual guarantee.   Pension income, payable monthly, quarterly, bi-annually, or annually, with pension sums ranging from Rs 1000 to Rs 9250, is available. With a 10-year duration, the maximum investment amount is Rs 15 lakh.   The senior citizen, or their nominee in the event of the senior citizen's death, receives the maturity amount.   6. Public Provident Fund (PPF) PPF is a tax-free (interest) investment that lasts for 15 years. The government reviews the interest in PPF accounts every quarter.   A PPF account can also be opened with a monthly contribution of Rs 500. PPF is a remarkably safe investment because the interest received is covered by a national guarantee.   7. Gold Gold is often known to be a safe haven for investors. In your portfolio, gold will operate as a hedge.   In the past, gold has proven to be a winner when the economy has been in the doldrums. Gold is an attractive investment in the long run because of its rising price.   Digital gold, sovereign gold bonds, gold ETFs, and physical gold are options for purchasing gold. It's also a highly liquid asset to own. FAQs What are some low-risk investment options? Some low-risk investment options include Fixed Deposits, National Savings Certificates, Public Provident Funds, National Pension Schemes, and Gold. These options offer a relatively stable return on investment and are less volatile. Which investment options are suitable for senior citizens? Senior citizens can consider investment options such as the Senior Citizens' Savings Scheme, Pradhan Mantri Vaya Vandana Yojana, Post Office Monthly Income Scheme, and National Pension Scheme. These options provide steady income and are designed to protect their money. What investment options are suitable for salaried individuals? Salaried individuals have a range of investment options, including traditional options like fixed deposits, recurring deposits, national pension schemes, and ULIPs. They can also consider investing in stocks, cryptocurrencies, and mutual funds like equity and debt funds. What are the recommended investment options for students? Students with a higher risk appetite can consider investing in Systematic Investment Plans (SIPs) in mutual funds, index funds, and ETFs. They can also explore bond investments and allocate a small portion of their investment amount to cryptocurrencies. Using low-cost or free brokers is recommended for students with limited funds. TALK TO AN EXPERT

SIP stands for Systematic Investment Plan; It is an ideal way to invest in your child’s higher education because it allows you as a parent to stay invested for the long term in a disciplined fashion and reap the benefits of compounding.   A SIP helps you set aside a fixed amount (weekly, monthly, or quarterly) based on your goals and make timely investments without feeling overwhelmed.       Why should you save for your child’s education?  Education is expensive more than ever before. The average cost of education has jumped more than 500% in the last 3 decades due to a myriad of reasons like inflation, greater demand, infusion of technology to education, and improved infrastructure.   According to the National Sample Survey Office (NSSO) report, the annual cost of education in 2014 increased 2.75 times while the per-capita income had only increased by 2.49 times. Showcasing the great disparity between cost in education cost as compared to growth in household income.  Conducted in 2017-18, NSSO’s 75th round survey of “Household Social Consumption of Education in India” stated that a majority of Indian families find it exceedingly difficult to afford tertiary education due to the rising school fees, and secondary costs like uniforms, transport, and school supplies.  This increase is reflected in annual fees across Indian educational institutions. An engineering degree, for example, can cost up to Rs. 4 lakhs per year at some universities. If this continues, in the next 15 years, the same degree can cost up to Rs. 15 lakhs per annum.  The  increasing cost of education is a huge financial burden on many parents; a medical degree from a private college in India can easily cost up to Rs. 1 crore. In fact, a majority of Indian parents have to send their children to study medicine abroad due to the inability to pay for private college fees in India.   Another factor that affects education costs is the depreciating value of the Indian rupee against the dollar. The weakening of the rupee can increase the overall cost of education for parents whose children are studying and living abroad.    Let’s consider how you can rise above this expanding cost of education.    What should a parent do amidst rising costs?  Careful and early financial planning strategies are the  key to beating inflation.  There are two facts that all parents should consider- starting early and staying consistent.   Early investing is the best way to prepare for future costs. It helps in developing the healthy habit of saving for their higher education when they are young. The sooner you start saving the better. The perfect time to start saving for your child’s education can and should start before she/he is even born.   Consistency is the key! It is extremely important to be disciplined and consistent with the contributions to your child’s education fund. Whether you invest in Mutual Funds, ETFs, or Equity, the best and only way to approach the giant cost of education is through diligent financial planning. Source: Pexels What is the best way to start saving?   For long-term investments pertaining to higher education, systematic investment plans (SIP) in Mutual Funds are the ideal choice. A SIP is a recurring monthly investment in a Mutual Fund that is automatically debited from the listed bank account.  If you start investing while your child is young, a 10 to 15-year time frame has the potential to help you generate significant returns. A SIP of Rs. 15,000 a month for 15 years can help you save up to Rs. 1 crore.   A SIP gives you the freedom to increase the fixed amount as well. This technique is called the step-up SIP strategy. It can help you in the long run, as an investor because your income is likely to increase as you progress in your career or have a windfall.    Are mutual funds safe?  Mutual Funds are risky yet transparent products. This means that you can study and evaluate the performance of the fund before investing your money. Each Mutual Fund includes a factsheet and its financial performance is available to every potential investor.   Every Mutual Fund comes with a factsheet that includes pointers like the fund manager’s name, the fund’s objective, starting date, benchmark index, and corpus size. This allows you as an investor to analyze its performance over the years and compare its progress with other mutual funds. While it does not guarantee 100% returns, it is a profitable investment choice for those who wish to invest in the long run.   If you are someone who is planning to build a healthy college fund for your child then a SIP is the most effective way to save up and diversify your investments against inflation.  

As a parent, no doubt you want the best for your kids. Global education can open doors and create opportunities for your child like nothing else can. However, the expenses involved in going to study abroad can be intimidating and discouraging for many people. Education loans are always an option, but debt is a big long-term liability and is not exactly an exciting prospect, is it? So, how can you raise funds for your child’s education without having to resort to education loans and other forms of debt? Well, that requires a bit of foresight and planning.  Saving is always an option but is it the best option? After all, you can save what you have but you cannot use your savings to generate more wealth. And with rising inflation, investing may be the better option in the long run. How is investing different from saving? Saving money is not a very complicated concept. We all save money, either for future purchases, emergencies, or other causes. Saving money typically involves putting aside money from your income in a safe place, like a bank account or a locker. Savings can accrue a small amount of interest, especially when you are using a bank account. However, in general, your savings do not compound or generate profit through interest or appreciation in any significant way. Investing money involves buying and holding an asset for a period of time with the intention of generating profits from it. When you invest money in the stock market, in bonds, or in real estate or jewelry, you do it with the intention of eventually selling the asset after a period of time and gaining profit. This profit is gained from the value of your assets changing and appreciating over a period of time due to inflation and/or other factors. 1. Investment generates wealth This is an important distinction between savings and investment. Investment is a tool for wealth generation. You are not simply setting aside money when you invest, instead, you are using it in a very specific way to generate more money. While you can earn a small amount of interest on a savings account, this is still minimal compared to the profits that can be gained through strategic investment. Savings is an instrument of wealth preservation. By keeping your money idle and parked in a bank account, you ensure that it remains safe. It is not exposed to the market or its constant fluctuations, it stays as it is. This makes savings a low-risk option as compared to investment. However, remember, the lower the risk the lower the returns. You don’t make any gains or profits from a savings account. When you have long-term goals like a child education plan to work towards, simply saving is not enough. You need to look for ways to actively generate wealth to counter the ever-rising costs of global education.  2. Investment helps you beat inflation With inflation, the value of money decreases. Think about it this way, a commodity worth Rs. 500 in 1980 would have been considered fairly expensive. Today, we can easily spend that amount of money in a single day and not even think twice about it. This is because, with inflation, the value of Rs. 500 has decreased.  So, even if you save a fairly significant sum of money, it may end up becoming insignificant over time as inflation eats its value. Investment helps you beat these odds. When you invest in some asset, its value keeps appreciating over time with inflation. Therefore, the money that you have invested in the asset appreciates with it. Instead of eating away at the value of your money, inflation helps you generate more wealth. 3. Investment helps you realize your goals Because investment is an instrument of wealth generation and because it helps you beat inflation, it is also a better way of realizing your financial goals. Saving does not play out well in the long term for expensive goals. These goals require you to accrue money that may be in excess of what you can reasonably or realistically save. Investing that money is a more reliable way of achieving your goal amount. Keeping your money idle makes it liable to depreciation due to inflation. Investing helps you generate wealth. This is why, when you have long-term goals on the horizon, it is better to invest. Such investment obviously requires a strategy. Markets always carry risk and your investments can succeed or they may fail and leave you at a loss. To counter that, one must always try to invest intelligently and strategically to balance out the risk. Mutual funds and ETFs which are professionally managed investment funds are a good way of doing this for beginner investors. Then why save at all? If investing is better in all these ways, then why save at all? Isn’t it better to simply invest all of your extra money? Well, let's not get ahead of ourselves. All investment carries risk. Markets can be volatile and unpredictable. The price of your assets may go up in the long term, or they may fall and leave you at a loss. Savings, on the other hand, ensure that your money doesn’t go anywhere. Keeping your money idle is not always a bad thing. By doing so you ensure that no matter what happens, you have some money kept secure for rainy days. Savings can provide you with a much-needed cushion in case your investments fail or fall prey to a market slump. Savings are also a good way to collect money for short-term financial goals. When it comes to short-term or less expensive goals, inflation is less likely to be a factor. For example, if you are planning on buying a new refrigerator next year, inflation is likely not going to make big problems for you when it comes to costs or the value of your saved money.   Savings are a good way of ensuring you have a safety cushion or emergency fund. It is also good for short-term financial goals. It is always wise to have at least some savings on hand. Conclusion Savings and investments are both important ways of preparing yourself for the future. While investment is riskier, it is the best way of ensuring long-term capital gains and wealth generation. Saving for a rainy day is a wise and responsible thing to do. However, to beat rising inflation and ensure the best education possible for your child, investment is the smart way to go. Investing your money through a service like EduFund can help you fulfill your child’s study abroad dreams. You don't always have to work hard. Work smart. FAQs Will my bank FDs help me beat education inflation? Regular bank FDs usually provide up to 7 or 7.5% returns. Education inflation, on the other hand, increases at the rate of 10% every year. This means that FDs do increase your money but do not increase the value of your money; hence, they fail to beat education inflation. Is it more important to save or invest? Savings are Important, of course. However, savings don't necessarily increase the value of your money with time due to inflation. You need a plan that gives your returns higher than inflation. And that solution is an investment. Which is easier: Saving or investing? To a beginner, investing may seem like a complicated domain to enter, but with some basic research and through easy-to-access tools like the EduFund app, investment can be as easy as having a savings bank account. Consult an expert advisor to get the right plan TALK TO AN EXPERT