Category Archives: Mutual Fund

Managing finances as a single parent could be challenging in today's changing environment if not appropriately planned. Things could get out of control if not managed adequately. The child/children could be deprived of basic needs like education, clothing, etc. How single parents can plan finances? 1. Get rid of debt The first step is to get rid of debt. If you have any, try to pay off all the debt to reduce liability. And there is no stress about paying the EMIs. Education planning advice for new parents Read More 2. Emergency corpus The next step is creating an emergency corpus for yourself and your child to remain protected in uncertain events like job loss. The ideal way of making an emergency corpus is to put aside 6 months of your expenses. For example: if you have monthly expenses of Rs. 30,000, then you should put Rs.1,80,000 in a liquid fund or fixed deposit. 3. Life Insurance If something wrong happens to you, how or who will care for your child's expenses? For such a situation, consider having life insurance, preferably Term insurance. Calculating the amount of life insurance can be calculated in many ways. One could be 25 times your CTC. Suppose you have a CTC of 6 Lacs. The ideal life insurance cover you should consider is 1.5 crore. How Single Women can Start Investment Journey? Read More 4. Medical insurance Anyone can face health issues at any point in time. So, it is better to be well prepared by buying medical insurance. 5. Make a budget After having all these things in place, make a monthly budget. Calculate all your inflows and outflows, and categorize them into different categories Start SIP for child education savings 6. Define short-term & long-term goals Now, you need to prioritize your goals based on their importance and the time left to achieve them. Suppose you have to buy a house and a car and pay your child higher education fees. Now, you need to define which one is a short-term goal or which one is a long-term goal. Buying a house or car can come under long-term goals, but paying for your child's education could be short-term or long-term, but it needs to be prioritized at the top of your goals. Define the goals and prioritize them so that you achieve all your goal in time.  7. Make a financial plan Create a financial plan to achieve your goals which will define the time to achieve it, your risk appetite, and how much amount will be required to achieve that goal. Draw your investment strategy to help you achieve your goals effectively and efficiently. Conclusion When you are the only person to take care of your child, you should try to plan everything well in advance to provide a quality of living for your child. Having a sound financial plan will also help you ease your financial journey during the downturn. Talk To an Expert FAQs What are some financial tips for single parents? Here are some financial tips that all single parents must follow: Get rid of debt Emergency corpus Life Insurance Medical insurance Make a budget Define short-term & long-term goals Make a financial plan How important is it to save for parents? Education inflation is the reason why every parent needs to save for their child’s future! The cost of tuition is increasing every year. The education inflation rate is 11-12 percent; double of CPI which is at 6%. This means that the costs of education are growing faster than consumer price inflation as well. Fees for prominent courses and colleges are likely to reach 1 crore in the next 15 years. Parents need to be prepared for hefty fees in the future. Why should parents save money?   Financial security for emergencies and unexpected expenses.  Funding their child’s education and future endeavors.  Building wealth and assets for retirement.  Preparing for major life events like buying a house or starting a business.  Leaving a financial legacy for their family. 

Incorporated in the midst of the Global Financial Crisis, Quantum Mutual Fund has been in existence for approximately two decades now. The AMC offers a variety of mutual fund schemes, including equity funds, debt funds, and hybrid funds. Quantum Mutual Fund is known for its focus on active management and its commitment to providing investors with high-quality investment products.  In this blog, we will explore its flagship product – Quantum Long Term Equity Value Fund. Quantum Long-Term Equity Value Fund Investment Objective The primary investment objective of the scheme is to achieve long-term capital appreciation by investing primarily in shares of companies that will typically be included in the S&P BSE 200 Index and are in a position to benefit from the anticipated growth and development of the Indian economy and its markets.  Investment Process  The scheme follows a bottom-up approach for stock selection with disciplined research and investment process.  The scheme follows the thought process of investing in high-conviction stocks with long-term time horizons and hence has a lower portfolio turnover ratio.    Portfolio Composition The portfolio is biased towards large-cap stocks, with 86.49% of the funds allocated to large-cap stocks and the remaining 13.51% to mid-cap stocks. Significant sectoral exposure is to Financials, which accounts for more than one-third of the portfolio. The top five sectors hold more than 82% of the portfolio.  Data as of 31st July 2023Source: Value Research  Top 5 Holdings for Quantum Long-Term Equity Value Fund Name Weightage % HDFC Bank Limited 9.62 ICICI Bank Limited 6.80 Infosys Limited 4.78 State Bank of India Limited 4.73 Eicher Motors Limited 4.34 Note: Data as of 31st July 2023. Source: Value Research  Performance for Quantum Long-Term Equity Value Fund Particulars 1 Year 3 Year 5 Year 7 Year 10 Years Quantum Long Term Equity Value Fund 16.78 23.68 11.13 10.96 14.60 S&P BSE 100 TRI 13.08 22.20 12.76 13.94 15.21 Equity: Value Oriented 22.04 28.41 14.25 14.68 19.06 Note: Returns in % as of 10th August 2023. Source: Value Research  Since its inception, the fund has generated a CAGR (Compounded Annual Growth Rate) of 13.56%. Talk to an expert Fund Manager The scheme is co-managed by Mr. George Thomas & Mr. Christy Mathai.  Mr. George Thomas has more than six years of experience and has been managing this fund with effect from 01st April 2022.  Mr. Christy Mathai has approximately seven years of experience and has been managing this fund with effect from 23rd November 2022.  Who Should Invest in Quantum Long-Term Equity Value Fund?  The fund is suitable for investors who are seeking   Long-term capital appreciation.  An investment opportunity that invests primarily in equity and equity-related securities of companies in the S&P BSE 200 index.  Why Invest in this Fund? The fund uses the bottom-up approach for stock selection to minimize risk.  It follows disciplined research and investment process.  It has a low portfolio turnover.  It holds cash when stocks are overvalued and does not expose itself to derivatives.  It has one of the lowest expense ratios in the industry.  Time Horizon One should look at investing for at least five years or even more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion: The Quantum Long-Term Equity Value Fund is an open-ended fund that allows investors to invest in undervalued equities. Although it has underperformed its benchmark over the long term, the fund has shown outperformance in the recent past. Thus, it will be important to monitor how the fund performs in the upcoming future. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

As per SEBI regulations, a liquid fund is one that invests in debt and money market instruments with a maturity of up to 91 days only, such as Certificate of Deposits, Treasury Bills (T-bills), Commercial Paper (CP), etc. The aim of these funds is to provide capital preservation/safety along with reasonable returns. Advantages: High Liquidity: The main aim of such funds is to provide liquidity for their investors. So, investors can redeem their units at any time. Low Exit Loads: These funds have exit loads of less than 7 days. So, you can redeem your funds after 7 days without any penalties. Indexation Benefit: Long-term taxation will be calculated based on inflation. Only returns over inflation will be taxable. Better Returns: Investors can enjoy better returns than their regular savings bank account by investing in these funds. Top 5 liquid mutual funds S.No.Fund Name3-Yr Annualized Performance1Quant Liquid Plan Growth Option Direct Plan5.01 %2IDBI Liquid Fund Direct-Growth4.27 %3Mahindra Manulife Liquid Fund Direct Plan-Growth4.23 %4Edelweiss Liquid Fund Direct-Growth4.23 %5Franklin India Liquid Super Institutional Plan Fund Direct-Growth4.22 %Note: Data as of July 25, 2022Source: Morningstar 1. Quant Liquid Plan Fund analysis: The fund is the top-performing fund in its category. The fund has a low-risk profile. The fund has outperformed the category and the benchmark. The fund has invested in high-quality bonds i.e., AAA-rated. The fund can be used to park your emergency funds. ProsConsHigh liquidity. Invested in AAA quality bonds.High expense ratio.Note: CRISIL Liquid Fund BI Index Start Investing 2. IDBI Liquid Fund Fund analysis: The investment objective of the Scheme will be to provide investors with a high level of liquidity along with regular income for their investment. The Scheme will endeavor to achieve this objective through an allocation of the investment corpus in a low-risk portfolio of money market and debt instruments with a maturity of up to 91 days. The fund has outperformed the category over the period. The fund has invested 100% in AAA-rated bonds. The fund is a good alternative to fixed deposits (F.D.) ProsConsLow Expense Ratio.Attractive risk-to-reward ratio.Fund has underperformed the benchmark over 5-Yr trailing returns.Note: CRISIL Liquid Fund BI Index Start Investing 3. Mahindra Manulife Liquid Fund Fund analysis: The Scheme seeks to deliver reasonable market-related returns with lower risk and higher liquidity through a portfolio of money market and debt instruments. The fund has outperformed the category average over different trailing periods. The fund holds high-quality debt and money market instruments. ProsConsFund has outperformed the category average over different trailing periods. Low expense ratio.Fund has underperformed the benchmark over 5-Yr trailing returns.Note: CRISIL Liquid Fund BI Index Start Investing 4. Edelweiss Liquid Fund Fund analysis: The fund’s objective is to provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through a portfolio of money market and debt securities. The fund has invested 100% in debt and money market instruments that have the highest rating i.e., AAA-rated bonds. The fund has delivered consistently better returns than the category average. ProsConsHigh liquidity. Invested in AAA quality bonds.Fund has underperformed the benchmark over 3-Yr & 5-Yr trailing returns.Note: CRISIL Liquid Fund BI Index Start Investing 5. Franklin India Liquid Fund Fund analysis: The fund’s objective is to provide current income along with high liquidity. The fund has relatively high volatility. The fund is a good alternative to bank accounts along with high liquidity. The fund has invested in AAA-rated bonds and money market securities. ProsConsInvested in AAA quality bonds. High liquidity.Relatively high volatility.Note: CRISIL Liquid Fund BI Index Start Investing Features of Liquid Mutual Funds Liquid mutual funds are a type of mutual fund that primarily invests in short-term, highly liquid money market instruments such as government securities, certificates of deposit, commercial paper, and treasury bills. They are designed to provide investors with a safe and convenient avenue to park surplus funds for the short term. Here are some key features:  Liquidity: Liquid funds offer high liquidity, allowing investors to redeem their units quickly with minimal impact on the net asset value (NAV).  Low Risk: These funds invest in low-risk securities, making them relatively safer compared to other mutual fund categories. However, they may not offer high returns.  Low Investment Minimums: Many liquid funds have low investment minimums, making them accessible for both individual and institutional investors.  Steady Returns: While liquid funds aim to generate steady returns, the focus is on capital preservation and liquidity rather than aggressive growth.  Taxability: The gains from liquid mutual funds are subject to taxation based on the investor's holding period. If the investment is held for up to three years, the gains are treated as short-term capital gains and taxed at the investor's applicable income tax rate. If held for more than three years, they are considered long-term capital gains and taxed at a flat rate with indexation benefits. Who are these Funds suited for? Corporates: Businesses often use liquid funds to manage short-term cash surpluses efficiently, earning a return on excess funds.  Individuals: Liquid funds are suitable for individuals who want a safe alternative to traditional savings accounts and are willing to compromise slightly higher returns for greater liquidity.  Emergency Funds: They can serve as a part of an individual's emergency fund, providing quick access to funds without the risk associated with other investments.  Major Advantages Safety and Liquidity: Liquid funds offer a balance between safety and liquidity, making them an excellent choice for short-term goals and funds you may need at short notice.  Better Returns Than Savings Accounts: While liquid funds might not offer the same interest as savings accounts, they generally provide better returns due to their investments in higher-yielding money market instruments.  No Exit Load: Most liquid funds have no exit load, allowing investors to redeem their units without incurring any additional charges.  Tax Efficiency: The tax treatment for gains from liquid funds can be more favorable than other fixed-income investments, especially for investors in higher tax brackets.  Professional Management: Liquid funds are managed by professional fund managers who have expertise in managing short-term investments, enhancing the chances of achieving consistent returns.  Conclusion: Liquid funds are a good alternative to bank accounts. Investors can also park their emergency funds in these mutual funds because of their high liquidity. This results in better returns than a regular savings bank account as the exit load is maximum for 7 days only. Talk To An Expert FAQs Which mutual fund scheme is highly liquid? Liquid mutual funds are highly liquid as they primarily invest in short-term money market instruments. They offer quick and easy redemptions with minimal impact on the fund's net asset value (NAV). Which is the safest liquid fund? Liquid funds, by nature, aim for safety and stability. Funds from reputable asset management companies like HDFC Liquid Fund, ICICI Prudential Liquid Fund, and SBI Liquid Fund are generally considered safe due to their investments in high-quality, short-term instruments. However, no investment is entirely risk-free, so research and diversification are still important. What liquid fund is best? Determining the best liquid fund depends on your specific financial goals, risk tolerance, and investment horizon. Some reputable options included ICICI Prudential Liquid Fund, Aditya Birla Sun Life Liquid Fund, and Nippon India Liquid Fund. However, it's crucial to research the latest performance, expense ratios, and other factors, and consider consulting a financial advisor before making a decision. Disclaimer:This is not recommendation advice, use it for educational purposes only. Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of the future performance of the schemes

Best dividend-paying mutual funds are one of the types of mutual funds in India that invest in equity and equity-related instruments that can yield a high dividend to its shareholders. These companies have strong fundamentals as they are profit-making companies. Only profit-making companies can distribute dividends to their shareholders. Having said that the primary intention of these companies is to provide regular income and capital appreciation to their investors. As per SEBI (Securities and Exchange Board of India) norms, a dividend yield fund invests at least 65% of its portfolio in dividend-yielding instruments. Features of Dividend-Paying Mutual Funds  Dividend-paying mutual funds offer several features that make them distinct from other types of funds:  1. Income Generation: These funds focus on stocks or securities of companies known for consistent dividend payments, aiming to provide a steady income stream to investors.  2. Diversification: Dividend-paying mutual funds typically invest in a diversified portfolio of dividend-yielding stocks, reducing the risk associated with relying on the performance of a single company. 3. Reinvestment Options: Investors can opt for dividend reinvestment plans (DRIPs), where the dividends received are automatically reinvested to purchase additional fund shares, potentially compounding returns over time.  Start Investing in Mutual Funds Taxability  Dividend income from mutual funds can have tax implications:  1. Taxation of Dividends: Dividend income received from mutual funds is generally taxable as per the investor's income tax slab. However, dividends from equity-oriented funds might be tax-free up to a certain limit due to the Dividend Distribution Tax (DDT) paid by the fund.  2. Dividend Distribution Tax (DDT): Prior to Budget 2020, mutual funds were subject to DDT before distributing dividends. Now, investors are liable to pay tax on the dividend income received as per their tax slab.  Who are these funds suited for?  Dividend-paying mutual funds can be suitable for:  Income-Oriented Investors: Individuals seeking regular income from their investments, such as retirees or those looking for a supplementary income source.  Conservative Investors: Those who prefer a lower-risk investment option with potentially stable returns, as dividend stocks tend to be established companies.  Major Advantages of Dividend-Paying Mutual Funds Steady Income: Dividend-paying funds can offer a reliable income stream, making them appealing to investors who rely on investment income.  Potential for Growth: Some dividend-paying companies might also experience capital appreciation, providing growth potential alongside regular income.  Diversification: By investing in a range of dividend stocks, these funds offer diversification benefits, spreading risk across various industries and sectors.  Compounding Effect: Dividend reinvestment can harness the power of compounding, where dividends are reinvested to potentially generate higher returns over time.  Advantages of the best dividend-paying mutual funds These funds have the potential to regular income through dividends. These funds invest majorly in strong companies having strong fundamentals. These funds provide equity exposure with lower risk. 5 High Dividend Mutual Funds S.No.Fund Name3-Yr Annualized Performance1Templeton India Equity Income Fund Direct Payout of Inc Dist cum Cap Wdrl22.43 %2IDBI Dividend Yield Fund Direct Payout of Income Distribution cum Cap Wdrl18.83 %3Sundaram Dividend Yield Fund – Direct Plan Half Yearly Payout of Income Dis cum Cap Wdrl18.59 %4Aditya Birla Sun Life Dividend Yield Fund Direct Plan Payout Inc Dist cum Cap Wdrl17.44 %5ICICI Prudential Dividend Yield Equity Fund Direct Payout Inc Dist cum Cap Wdrl17.30 %Note: Data as of July 26, 2022Source: Morningstar 1. Franklin Mutual Fund The scheme seeks to provide a combination of regular income and long-term capital appreciation by investing primarily in stocks that have a current or potentially attractive dividend yield, by using a value strategy. The fund has outperformed the category average over different tailing period returns. The fund has invested majorly in large-cap companies (81.41%) followed by mid-cap (17.77%) and small-cap companies (0.82%). ProsConsAttractive risk-to-reward ratio. The fund outperformed the category average when the market was falling & rising.High volatility than the category average. Invest Now 2. IDBI Mutual Fund Fund analysis: The fund’s aim is to provide capital appreciation and/or dividend distribution by investing predominantly in dividend-yielding equity and equity-related instruments. The fund has a beta of 0.78 indicating that the fund performance is less relative to the market. The fund follows a blended style of investing which means that the fund has invested in both value and growth stocks. The fund has outperformed the category average marginally. ProsConsLess volatile than the category average. Fund has outperformed the category average when the market was falling.Fund has underperformed the category average when the market was rising. Invest Now 3. Sundaram Mutual Fund Fund analysis: The fund has given consistent performance over the long-term period. The fund has a well-diversified portfolio, spread across sectors except for real estate. The fund has invested across market capitalization companies i.e., large-cap (84.79%), mid-cap (13.42%), and small-cap (1.79%) companies. The fund has also invested some portion in the debt category also. ProsConsFund has outperformed the category average when the market was falling. Well-diversified portfolio.High expense ratio. Invest Now 4. Aditya Birla Mutual Fund Fund analysis: The fund has a beta of 0.91 indicating that the fund’s performance is closely related to the performance of the market. The fund has invested across market capitalization, but the major investments are in large-cap (60.07%) followed by mid-cap (26.37%) and small-cap (13.55%) companies. The fund has a high risk (measured by standard deviation) than the category average. ProsConsWell-diversified portfolio. Fund has outperformed the category average when the market was rising.High expense ratio. Invest Now 5. ICICI Prudential Mutual Fund Fund analysis: The fund’s objective is to provide medium to long-term capital gains and/or dividend distribution by predominantly investing in a well-diversified portfolio of equity and equity-related instruments of dividend-yielding companies. The fund has given reasonably good performance over the period. The fund follows a blended style of investing, which means that the fund has invested in both value and growth stocks, and has invested across market capitalization companies. The fund has a higher risk (measured by standard deviation) than the category average. ProsConsLow expense ratio. Fund has outperformed the category average when the market was rising.The fund underperformed the category average when the market was falling. Invest Now Conclusion: Investors looking for regular income and capital appreciation from the stock market should consider such funds as part of their portfolios. FAQs Which mutual fund gives monthly dividends?  Ans. Sundaram Dividend mutual funds – Direct Plan-Growth - NAV: INR 91.29 Expense Ratio: 2% AUM: INR 321.27 Cr  Aditya Birla Sun Life Dividend Yield Fund – Direct Plan-Growth - NAV: INR 280.57 Expense Ratio: 1.85% AUM: INR 810.28 Cr  Which 5 mutual fund is best? Ans. Tata Digital India Fund Direct-Growth   ICICI Prudential Technology Direct Plan-Growth  Quant Small Cap Fund Direct Plan-Growth  SBI Technology Opportunities Fund Direct-Growth  Aditya Birla Sun Life Digital India Fund Direct-Growth  Which dividend yield fund is best?  Ans. Templeton India Equity Income Fund, ICICI Prudential Dividend Yield Equity Fund, IDBI Dividend Yield Fund.  What are the 5 highest dividend-paying stocks? Ans. V.F. Corporation (VFC), Devon Energy (DVN), Dow Inc. (DOW), International Business Machines (IBM), and Verizon Communications (VZ).  Which mutual fund gives the highest dividend?  Ans. It's important to note that mutual fund returns can vary over time. Funds that focus on high dividends might sacrifice growth potential. Some funds known for higher dividends include Vanguard Dividend Appreciation Index Fund, Fidelity Equity Income Fund, and T. Rowe Price Dividend Growth Fund. Research and professional advice are recommended before investing.   Which top 5 companies give dividends?  The top dividend-paying companies included Apple Inc., Microsoft Corporation, Johnson & Johnson, JPMorgan Chase & Co., and Procter & Gamble.    What are the highest-yielding monthly dividend funds?   Some of the highest-yielding monthly dividend funds included Global X SuperDividend ETF, AGFiQ U.S. Market Neutral Anti-Beta Fund, and PIMCO Monthly Income Fund. However, yield and performance can change, so ensure you research and verify the status before making any investment decisions.  Disclaimer:This is not recommendation advice, use it for educational purposes only. Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of the future performance of the schemes

In the previous article, we discussed NFO in mutual funds. In this article, we will discuss CAGR in mutual funds CAGR or Compound Annual Growth Rate refers to the mean annual growth of any investment over a period usually longer than a year. It is an accurate way to calculate and determine the return for investment portfolios, and individual assets that may rise or fall in value with time.  Investment consultants who boast about their market knowledge and funds advertising their returns use the phrase CAGR. What is CAGR?  The compound annual growth rate, or CAGR, measures your investments' yearly compounding rate. Let's spend some time considering the word compounding. Imagine you put Rs 1,000 into stock and received a 10% return. In the first year, the stock price will have increased by Rs. 100. Now that we are in the second year, the price has risen by 10% once again.  Will the cost increase by Rs 1,200 after two years? The answer is no. After a year, your initial investment of Rs. 1,000 has increased to Rs. 1,100. At this point, a 10% growth of Rs. 1,100 increases the investment's worth to Rs. 1,210 after two years. The fundamental idea behind CAGR, or compound annual growth rate, is compounding. https://youtube.com/shorts/HMvmvNppjtk?feature=share How does the compound annual growth rate work?  Several restrictions are associated with calculating the mean or arithmetic average of results. Because it offers a rate of return that is smoothed, CAGR aids in overcoming them. It may be used to compare the success of various assets over time and provides a reasonable prediction of the yields from an investment when compounded yearly.  Most of the time, when we evaluate the success of our assets, we are just interested in the total return. However, we frequently fail to consider the temporal worth of money. CAGR differs in this manner. In actuality, CAGR prefers taking the time value of money. CAGR calculator and mutual funds  Mutual fund investors can benefit significantly from the CAGR calculator. This can help you find out how good-performing your fund is for helping you take the required investment decisions. Uses of a CAGR in Mutual fund  Compare returns between different funds and benchmarks  The CAGR calculator may also be used to contrast the returns you receive from one fund with those of other funds of a similar type. This might help you understand the mutual fund's performance compared to its competitors. For further clarity, you may also evaluate against the benchmark indexes.  How should investors interpret the compound annual growth rate over a period of time?  As we previously mentioned, CAGR displays the average annual rate of return on your assets. CAGR accurately gauges an investment's growth (or decline) over time. A typical rule of thumb is that stocks generally favor firms with CAGR growth over 4-5-year intervals.  Profits are expected to be reinvested after each year of the time horizon for calculating CAGR. The CAGR is illustrative and inaccurate. This is so that people understand that when you state something like "CAGR has risen 15% over five years," it does not always indicate that it did so continuously over the five years. It may have fluctuated between positive, flat, and even negative growth during this time. Tax Saver Mutual Funds Read More Advantages of CAGR  It enables investors to evaluate the returns in various situations. For instance, you may model different CAGR scenarios to see how much your original investment would increase over time. It helps with financial planning.  It is simple to use and comprehend. Only the beginning value, the end transaction, and the preferred investment time must be entered. You may simplify the calculation using Internet calculators, excel spreadsheets, or scientific calculators.  Absolute returns over a longer time horizon may be deceptive. In these situations, the CAGR can assist you in comparing with other comparable instruments to see whether you outperform the market. For instance, if you previously bought units of an equity fund and their value has since grown, you can efficiently utilize the CAGR to evaluate the average yearly gains you have achieved.  When comparing CAGR to the cost of funds, it is essential to remember that CAGR is a return on the capital metric. For instance, to make a spread, you would need to look at an investment with a CAGR return of above 12% of your cost of funds was 9%.  Small Cap Mutual Funds Read More CAGR and mutual fund returns While investing in mutual funds, you need to know if it’s worthy of an investment. You need to measure the performance of a mutual fund over a period of time. Mutual fund fact sheets usually give you growth rates across various time horizons of a fund, which makes it difficult to understand the performance of a fund based on multiple rates. If you knew how it grew gradually over a specific period of time, it would get easier. CAGR does that, and it gives the investor the single annual growth of a fund. CAGR is one of the effective ways to calculate fund performance.   Limitations of CAGR CAGR doesn’t take into account the volatility of investment since it gives you a smoothed rate of return over a period of time. CAGR calculations will be accurate only if you don’t withdraw your initial investment and reinvest the returns you gained out of an investment. In case you withdraw or add funds to the investment, the calculation may not be accurate. CAGR can also be used to compare funds that have similar investment periods. CAGR is usually used to calculate returns for extended periods, and it may not help in calculating the rate of returns over small investment tenure.     Points to remember about CAGR The compound Annual Growth Rate assumes compounded growth, which basically means any returns you gain on the investment are reinvested. If you had invested Rs. 200 and earned a return of Rs. 30 after one year of investment, your gain of Rs. 30 gets reinvested. If you plan to use CAGR for two different investments, you need to make sure to keep the same time period for both investments because CAGR offers a rate of return over a specific time period. You may not be able to know the risks involved in the investment and the volatility of an investment with the help of CAGR.   FAQs What is a good CAGR for mutual funds?   An ideal compound annual growth rate can be between 8% and 12% for a long-term investment.   What does a 10% CAGR mean?   CAGR is the average rate at which a fund moves from one value to another within a specific period. Imagine you put Rs 1,000 into stock and received a 10% return. In the first year, the stock price will have increased by Rs. 100. Now that we are in the second year, the price has risen by 10% once again.    Will the cost increase by Rs 1,200 after two years? The answer is no. After a year, your initial investment of Rs. 1,000 has increased to Rs. 1,100.   At this point, a 10% growth of Rs. 1,100 increases the investment’s worth to Rs. 1,210 after two years. The fundamental idea behind CAGR, or compound annual growth rate, is compounding.      Is a CAGR of 5% good?   For large-cap companies, the compound annual growth rate of 5 – 12% is considered good.   What does 5-year CAGR mean?   CAGR, or Compound Annual Growth Rate, refers to the mean annual growth of any investment over a period usually longer than a year. It is an accurate way to calculate and determine the return for investment portfolios and individual assets that may rise or fall in value with time.  CAGR is a beneficial formula for estimating an investment's growth rate. It can help enhance the returns on the assets or evaluate historical profits as well. How much CAGR is considered good?  A good CAGR for mutual funds depends on the investor's financial goals and risk tolerance. Generally, a CAGR of 12-15% is considered good for equity mutual funds, while a CAGR of 8-10% is considered good for debt mutual funds. It is important to note that these figures are not guaranteed and can vary depending on market conditions and the specific mutual fund in question. Investors should consider their investment objectives, time horizon, and risk appetite when evaluating the potential returns of mutual funds.  How is CAGR calculated in mutual funds?  CAGR, or Compound Annual Growth Rate, is a measure of the annualized rate of return of an investment over a specific period of time. In mutual funds, CAGR is calculated using the formula: [(Ending value/Beginning value)^(1/number of years)] - 1. The beginning value is the value of the investment at the start of the period being measured, while the ending value is the value of the investment at the end of the period. The number of years is the length of the investment period. By using this formula, investors can assess the average annual growth rate of their mutual fund investment.  How can I use CAGR to compare mutual funds?  CAGR can be a useful tool for comparing the returns of different mutual funds over the same investment period. By calculating the CAGR for each fund, investors can get a sense of the average annual growth rate and compare the performance of different funds. However, it is important to compare funds with similar investment objectives and risk profiles. For example, comparing the CAGR of an equity mutual fund with a bond mutual fund may not provide meaningful insights due to the different risk-return characteristics of these asset classes. Additionally, CAGR should not be the only factor considered when selecting a mutual fund, as past performance does not guarantee future results. Investors should also consider other factors such as fund expenses, investment strategy, and the expertise of the fund manager.  What are the limitations of using CAGR to evaluate mutual funds?  While CAGR is a useful metric for evaluating the performance of mutual funds, it does have certain limitations. One limitation is that CAGR assumes a steady rate of growth over the investment period and ignores volatility. In reality, mutual fund returns can fluctuate significantly from year to year. Additionally, CAGR does not account for when an investor adds or withdraws funds from the portfolio over the period being measured. This can impact the overall return and may not be accurately reflected by the CAGR. Lastly, CAGR may not be representative of the fund's performance if the investment period is short. It is important for investors to consider other factors such as risk-adjusted returns, expense ratios, and fund manager track record when evaluating mutual funds.  TALK TO AN EXPERT

As per SEBI regulations, an ELSS fund has to invest a minimum of 80% of its assets in equity and equity-related instruments. It is a savings scheme that comes with tax benefits. An individual can claim a tax rebate of an amount up to Rs. 1.50 lakh and save up to Rs. 46,800/- in a financial year. Advantages: Tax Deduction: Any investor investing in an ELSS fund can claim the tax benefit of an amount up to Rs. 1.5 Lakh under Section 80C of the Income Tax Act and save up to Rs. 46,800/- a year. Shortest Lock-in Period: Only the ELSS fund is the scheme that comes with the shortest lock-in period when compared to other tax savings options available. Higher Returns: ELSS is the only scheme among other options available that have delivered higher returns. The habit of Savings: An individual can develop the habit of savings by investing in these funds through SIP (Systematic Investment Plan) with as low as Rs. 500. Top 10 ELSS mutual funds S.No.Fund Name3-Yr Annualized Performance1Quant Tax Plan Direct Option Growth Plan36.22 %2Bank of India Tax Advantage Fund Direct Plan-Growth25.13 %3IDFC Tax Advantage (ELSS) Fund Direct Plan-Growth22.18 %4Canara Robeco Equity Taxsaver Fund Direct Plan Growth Option21.59 %5Mirae Asset Taxsaver Fund Direct Plan-Growth20.94 %6UTI Long-Term Equity Fund Growth Option Direct19.99 %7Mahindra Manulife ELSS kar Bachat Yojana Direct Plan-Growth19.91 %8DSP Tax Saver Fund Direct Plan-Growth19.61 %9PGIM India ELSS Tax Saver Fund Direct Plan-Growth19.32 %10UTI Long Term Equity Fund Growth Option Direct18.87 %Note: Data as of July 24, 2022Source: Morningstar 1. Quant Tax Plan Direct Option Growth Plan Fund analysis: The fund’s objective is to generate Capital Appreciation by investing predominantly in a well-diversified portfolio of Equity Shares with growth potential. The risk grade is high and the return grade is high. The fund has a beta of 0.99 which means that the fund movement is very much relative to the market movement. The fund has a high risk (measured by standard deviation) than the category average. ProsConsWell-diversified portfolio.Tax benefit.Highly volatile. 2. Bank of India Tax Advantage Fund Direct Plan-Growth Fund analysis: The fund has outperformed the category average over the long-term period. The risk grade is below average and whereas the return grade is high. The fund has invested majorly in large-cap growth companies with 83.14% of its assets. The fund has low risk (measured by standard deviation) than the category average. ProsConsMajor holding is in Bluechip companies. Tax benefit.Fund has underperformed the category average in 1-Yr trailing returns. 3. IDFC Tax Advantage (ELSS) Fund Direct Plan-Growth Fund analysis: The fund is a consistent performer and has been rated 4 stars by Morningstar. The risk grade is high, and the return grade is high. The fund has a beta of 1.16 indicating an aggressive approach toward the stock selection. Along with investing in large-cap companies, the fund has exposure to mid-cap (19.32%) & small-cap (13.60%) companies. The fund has a high risk (measured by standard deviation) than the category average. ProsConsFund has outperformed the category average when the market was rising. Tax benefit.Fund has underperformed the category average when the market was falling. 4. Canara Robeco Equity Taxsaver Fund Direct Plan Growth Option Fund analysis: The fund has given consistent performance over the period. The risk grade is below average, and the return grade is high. The fund flows growth style of investing and the majority of holding is in large-cap companies. The fund holds a well-diversified portfolio. The fund has invested across market capitalization and sectors. The fund has low risk (measured by standard deviation) than the category average. ProsConsFund has outperformed the category average when the market was falling. Tax benefit.Fund has underperformed the category average when the market was rising. 5. Mirae Asset Tax Saver Fund Direct Plan-Growth Fund analysis: The fund is one of the top-performing funds in its category. It has outperformed the category average over the long-term period. The fund is rated 5-star by Morningstar. The risk grade is average, and the return grade is high. The fund follows a blended style of investing which indicates that the fund is holding both value and growth stock in the portfolio. The fund has good assets under the management of Rs. 11,494.59 crore, which shows the reliability of investors. The fund has a high risk (measured by standard deviation) than the category average. ProsConsFund has outperformed the category average when the market was falling. Tax benefit.Assets Under Management are high. 6. Union Long-Term Equity Fund Direct Plan Growth Option Fund analysis: The fund has outperformed the category average over the long term. The risk grade is average, and the return grade is high. The fund has a low beta of 0.95 indicating that the movement of the fund is less relative to the market movement. The fund has invested 85.27% in large-cap companies and the rest is in mid-cap (13.13%) & small-cap (1.60%) companies. The fund has invested across sectors. The fund has low risk (measured by standard deviation) than the category average. ProsConsWell-diversified.Tax benefit.The fund has a high expense ratio. 7. Mahindra Manulife ELSS Kar Bachat Yojana Direct Plan-Growth Fund analysis: The fund has given stable returns over the different trailing time periods. The risk grade is average, and the return grade is average The fund has a well-diversified portfolio of 49 holdings spread across sectors. The fund has majorly growth stocks in its portfolio. The fund has low risk (measured by standard deviation) than the category average. ProsConsFund has outperformed the category average when the market was rising. Tax benefit.Low Assets Under Management. 8. DSP Tax Saver Fund Direct Plan-Growth Fund Analysis: The fund’s objective is to generate medium to long-term capital appreciation from a diversified portfolio that is substantially constituted of equity and equity-related securities of corporates and to enable investors to avail of a deduction from total income, as permitted under the Income Tax Act, 1961 from time to time. The risk grade is above average, and the return grade is above average. The fund has a beta of 1.01 indicating fund movement is very much related to the market movement. The fund is rated 4-star by Morningstar. The fund has a relatively high risk (measured by standard deviation) than the category average. ProsConsFund has outperformed the category average when the market was falling. Tax benefit.The return grade is above average. 9. PGIM India ELSS Tax Saver Fund Direct Plan-Growth Fund analysis: The fund has outperformed the benchmark and the category marginally over the long-term period. The fund is rated 5-star by Morningstar. The risk grade is average, and the return grade is above average. The fund follows a blended style of investing, which means it has both value and growth stocks in its portfolio. The fund has low risk (measured by standard deviation) than the category average. ProsConsConsistent performer.Tax benefit.The fund has a high expense ratio. 10. UTI Long-Term Equity Fund Growth Option Direct Fund analysis: The fund has a well-diversified portfolio of 59 stocks, investing in growth stocks across market capitalization except for the energy sector, with major holdings in large-cap (69.73%) companies and the rest in mid-cap (24.14%) & small-cap (6.12%) companies. The risk grade is average, and the return grade is above average. The fund is rated 4-star by Morningstar and the fund has given satisfactory returns over the long term. The fund has low risk (measured by standard deviation) than the category average. ProsConsFund has outperformed the category average when the market was rising. Tax benefit.The fund has a high expense ratio. What are the features of ELSS Funds?  Here are some of the features of ELSS Funds to help you become an educated investor:  1. Lock-in period  ELSS Mutual funds have a lock-in period of 3 years. You can keep your money in the fund for longer than the given period but the 3-year period is mandatory. You cannot take the money out before this period ends.    2. Equity-based investment  One of the features of ELSS is that it is an equity-based investment. About 80% of investment is equity while 20% is invested in debt and hybrid funds. The portfolio is well-diversified and helps you as an investor beat the odds in the long run with sufficient exposure and risk management.  3. Portfolio Manager  ELSS mutual funds are managed by fund managers who have years of experience and adequate financial knowledge to make sound financial decisions. Your money is protected and managed by the best professionals.  4. Different ways to invest  When it comes to ELSS investments, you can either place a lump sum order or a SIP order. Some lumpsum amounts as little as Rs. 500 while some SIP investments start at Rs. 500 to Rs. 1000. You can invest more and build a bigger corpus by the end of the 3-year period to meet your financial goals.   5. Tax benefits   You can have up on taxes with ELSS mutual funds. This investment is covered under Section 80c of the Indian Income Tax Act, 1961. You can claim a tax refund of Rs. 1.5 Lakhs in a financial year. Thus a tool to save money and build a sizeable corpus for your financial goals.   What are the advantages of investing in ELSS Funds?  Some advantages of ELSS Funds:  1. Disciplined Investor  ELSS mutual funds have a lock-in period of 3 years which means that you will automatically become a disciplined and long-term investor. This helps you create a list of goals and manage your funds accordingly. If you invest via SIP, then making regular investments to this ELSS mutual fund plan is a great way to start.   2. Benefits of savings   ELSS Funds gives the opportunity to create wealth and save on taxes. The ELSS funds generate a minimum of 10%* investment (This is subject to change with market risks) and is considered tax deductible.   3. Tax Benefit  As per Section 80C of the Indian Income Tax Act, 1961, you can claim a tax rebate of INR 1.5 Lakh of your ELSS Fund investment. The gains from ELSS funds up to INR 1 lakh is not taxable by law, while above the set limit of INR 1 Lakh is taxable at 10%.  4. Lower lock-in period  ELSS Mutual Funds have a lock-in period. It is shorter than that of other investment tools like the National Pension Scheme (NPS), the Provident Pension Fund (PPF Scheme), and tax-saving Fixed Deposits. Your money is locked in for 3 years only.   5. Tax Savings   ELSS can save taxes and claim up to Rs. 1.5 lakhs under Section 80c of the Indian Income Tax Act.   Whom the funds are suited for?   ELSS are tax-saving funds that every investor should have in their portfolio. This fund adds value to your overall investment plan, helps you stay invested without any breaks, and saves you money in taxes. Whether you are a risk-loving or risk-averse investor, this type of investment is stable, managed by professionals, and has the dual benefit of creating wealth as well as saving your money in taxes.   Conclusion ELSS is the only equity-linked mutual fund scheme that provides Tax Benefits to its investors under Section 80 C of the Income Tax Act for an amount up to Rs. 1.5 Lac. And has the shortest lock-in period. There are two ways to invest in this scheme i.e., SIP (Systematic Investment Plan) or Lumpsum. The preferable mode of investing is Lumpsum as funds will be locked for 3 years. FAQs Is ELSS taxable after 3 years? ELSS has a lock-in period of three years. The gains generated up to Rs 1 lakh are tax-free, and any gains above this limit attract a long-term capital gains tax at 10% What ELSS means? ELSS stands for Equity Linked Savings Schemes. These are Mutual fund investment schemes that help you save tax and create wealth. It has a lock-in period of 3 years. Is ELSS better than PPF? Both ELSS and PPF are tax-saving investments. These investments allow you to create wealth while saving your current income tax. The former has a lock-in period of 3 years while the latter has 15 years. Are ELSS and SIP the same? No, SIP is a medium of investment while ELSS is an investment tool. You can start a SIP for an ELSS mutual fund. What are ELSS mutual funds?   ELSS mutual funds are equity-linked savings schemes that invest primarily in equity and equity-related instruments. They offer tax benefits under Section 80C of the Income Tax Act, making them an attractive investment option for those looking to save taxes while generating wealth in the long run. ELSS funds invest 80% of their corpus in equity-oriented instruments, which have the potential to generate inflation-beating returns.    What is the minimum and maximum investment amount for ELSS mutual funds?   The minimum investment amount for ELSS mutual funds varies from fund to fund and can range from Rs. 500 to Rs. 5,000. There is no maximum limit on the investment amount, but tax benefits are available only up to Rs. 1.5 lakh per financial year. This means that you can invest more than Rs. 1.5 lakh in ELSS funds, but you will not get any additional tax benefits on the excess amount.  What is the lock-in period for ELSS mutual funds?   ELSS mutual funds have a lock-in period of three years, which is the shortest among all tax-saving investment options under Section 80C of the Income Tax Act. This means that you cannot redeem your ELSS investment three years from the date of investment. However, after the completion of the lock-in period, you can redeem your investment or continue to hold it for the long term.   How to invest in ELSS mutual funds online?   You can invest in ELSS mutual funds online through various platforms such as the fund house website, online brokers, and mutual fund aggregators. You need to complete the KYC process and have a bank account to invest in mutual funds online. KYC stands for "Know Your Customer," which is a process of verifying the identity and address of an investor. You can complete the KYC process online or offline by submitting the required documents.   Disclaimer:This is not recommendation advice, use it for educational purposes only. Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of the future performance of the schemes.

Investing 10 lakhs for one year can be a challenging task that requires careful consideration of various factors, such as risk appetite, investment goals, and expected returns. It's crucial to make informed investment decisions that align with your financial objectives and tolerance for risk. In this comprehensive article, we will delve deep into the world of investment options available in India and explore the best ways to invest 10 lakhs for a one-year period. By understanding the pros and cons of each option, you can make well-informed decisions that optimize your investment potential while mitigating risks. https://www.youtube.com/watch?v=l8Hyb77tkM8 INR 10 Lakhs Investment Plan | 1-Year Guide 1. Fixed Deposits (FDs) Fixed deposits are a reliable and widely popular investment option due to their safety and stability. With FDs, you can deposit a lump sum amount for a fixed tenure and earn a predetermined interest rate. The interest rates offered by banks typically range from 4% to 6%, providing a predictable return on your investment. FDs are an ideal choice for conservative investors who prioritize capital preservation and a guaranteed return on their investment. Furthermore, they offer the convenience of easy liquidity, allowing you to access your funds when needed. How to Invest INR 500 for Child Education every month? Read More 2. Recurring Deposits (RDs) Similar to fixed deposits, recurring deposits allow you to invest a fixed amount every month for a predetermined period. RDs offer similar interest rates as FDs, making them suitable for individuals who want to build a habit of regular savings. This investment option is particularly appealing to those with a steady income who prefer a disciplined approach to investment. By contributing a fixed amount regularly, you can accumulate a sizeable corpus over time while enjoying the benefits of compounded returns. 3. Public Provident Fund (PPF) The Public Provident Fund (PPF) is a long-term investment option that not only offers attractive interest rates but also provides tax benefits under Section 80C of the Income Tax Act. Currently offering an interest rate of 7.1%, the PPF comes with a lock-in period of 15 years. It is an excellent choice for investors seeking a safe and secure investment avenue that can also help in building a retirement corpus. The PPF provides the advantages of compounding and tax-free returns, making it an appealing option for long-term wealth creation. https://www.youtube.com/watch?v=tdwqQH0xkFw 4. Equity-Linked Savings Scheme (ELSS) The Equity-Linked Savings Scheme (ELSS) is a tax-saving mutual fund that primarily invests in equities. ELSS offers investors the dual benefit of potential capital appreciation and tax deductions under Section 80C. However, it is important to note that ELSS comes with a lock-in period of three years, making it suitable for individuals with a higher risk appetite and a long-term investment horizon. ELSS investments expose you to the volatility of equity markets, but historically, they have delivered attractive returns over the long run. Careful selection of ELSS funds and a systematic investment approach can help you navigate market fluctuations effectively. 5. Mutual Funds Mutual funds have gained significant popularity in recent years due to their ability to provide diversification and professional management. Mutual fund investments help you gain exposure to a portfolio of stocks, other securities, and bonds, which decrease the risk associated with investing in individual assets. Mutual funds offer various categories, such as large-cap, mid-cap, small-cap, debt, and hybrid funds, catering to different risk profiles and investment objectives. Mutual fund investments allow you to benefit from the expertise of professional fund managers and leverage their in-depth market research. 6. Gold Gold has long been considered a traditional safe-haven investment option, providing a hedge against inflation and economic uncertainties. Investors can choose to invest in gold exchange-traded funds (ETFs), physical gold,  or sovereign gold bonds. The returns on gold are influenced by international gold prices, making it subject to price fluctuations. Gold serves as a diversification tool in an investment portfolio and is suitable for those seeking stability and protection against market volatility. Additionally, gold investments offer the flexibility to convert your holdings into cash easily when required. 7. Real Estate Real estate investments offer the potential for long-term returns and act as tangible assets. Investing in residential or commercial properties can provide rental income and capital appreciation over time. However, real estate investments require significant capital and can be illiquid. It is essential to carefully evaluate factors such as location, market conditions, and legal compliance before venturing into real estate. Real estate can be a viable option for investors seeking a long-term investment avenue and are willing to take on the responsibilities associated with property ownership. Talk To An Expert

Inflation affects the cost of everything, from basic goods like edible oil, crude oil, and vegetables to big events like education, foreign trips, or property rates.    This year, inflation reached its all-time high at 7% and has maintained that record over the past 3 months. This means your savings need to beat the rising inflation rate before inflation beats your savings.   To protect your savings from inflation, you need to consider multiple investment instruments. Relying on fixed deposits, land or gold alone is not enough. Beating inflation requires a financial plan that distributes your money wisely across different saving and investing options. It allows your money to work in different areas – like mutual funds, bonds, PPF, Digital Gold, ETFs, and much more.   How can the average Indian investor beat inflation?  By gaining financial knowledge and opening up to investment, risk, and newer opportunities, the average Indian can beat inflation. If you are a young adult in your 20s, then saving in FDs or stashing your money in a savings account is not enough. You need to start exploring different alternatives that can benefit from the power of compounding and help you create a corpus for future needs.   Savings accounts in most banks offer a 2% annual rate while 5-6% interest rates on fixed deposits. These interest rates fail to compete with the growing inflation rate of 7%. Thus, by saving on these instruments, you are likely to reduce your purchasing power and lose money rather than gain from them!  Ways to protect your savings from inflation   1. Manage your expenses  Budgeting is the only way to ensure you don’t overspend or live paycheck to paycheck. Your cost of living should be less than your monthly income so that you can invest or save a part of your income. By budgeting, you may be able to spare a bigger portion for this cause. Tips to manage your expenses-   Follow your expenses carefully   Pay bills and EMIs on time to avoid penalties  Go for cheaper alternatives for food, clothes, and gadgets  Cutback on eating out, unnecessary subscriptions   Develop productive habits   2. Look for long-term investing options  Domestic and international stocks, bonds, and equity funds offer great returns on your initial investment. Sometimes double the returns as opposed to FDs, gold, and even property. These investments are great for those who wish to remain invested for 10-15 years, maximize their gains, and allow the market to average out the risk and loss. The beauty of the share market is that in the long run, it corrects itself and rewards its oldest members.  3. Go beyond PPFs and FDs   Beating inflation means looking past PPFs and FDs, stocks, gold, and exchange-traded funds (ETFs), mutual funds can help you diversify your investment and savings. This does not mean that you need to break your FD or PPF plan, it means starting a small SIP for Rs. 1000 or more for mutual funds or ETF can help you save better and reap the benefits of compounding.   4. Invest in gold and real estate  Gold is a natural deterrent against inflation; the rise of gold rises with inflation which means gold will remain an ever-green investment as long as inflation is here. But don’t restrict yourself to physical gold, invest in digital gold, gold ETFs, and sovereign gold bonds.  Similarly, in real estate, the cost of the property rises as well as rent with inflation Thus, invest in property or through real estate investment trust (REITs).  5. Mutual funds and ETFs  A SIP as low as INR 500 can help you stay financially secure in the near future. There is a good reason behind the popularity of mutual funds and ETFs, these are great instruments for beginners as well as professionals. Mutual funds are managed by a fund manager who invests on your behalf. This means you get to protect your savings from inflation without any effort.   Don’t let inflation eat at your savings. Invest wisely and remember that the cost of commodities is only going to increase so should your savings. FAQs How do you stay ahead of inflation?   To stay ahead of inflation, consider investing in assets with returns that outpace inflation, such as stocks, real estate, or commodities. Diversify your portfolio to spread risk. Focus on long-term investments, maintain a budget, and periodically reassess your financial strategy to adapt to changing economic conditions.  How do you manage inflation times?  During inflation times, manage by diversifying investments, focusing on assets with historically inflation-resistant returns, and avoiding excessive cash holdings.  Where do I put my money during inflation?   During inflation, consider allocating your money to assets that historically perform well in such conditions, like equities, real estate, commodities, and Treasury Inflation-Protected Securities (TIPS). Diversify your investments to spread risk and preserve purchasing power. Avoid keeping excessive cash, as it may lose value during inflationary periods. 

Australian universities are a dream for many students aspiring to do higher education overseas. According to QS world rankings 2022, Australia’s 7 universities make it to the list.   As per Top University’s stats, “A 4-year degree in Australia costs up to $ 45000.”   The tuition fee varies between 30000 AUD - 50000 AUD a year, which is the average cost. Depending on the course and the university, tuition fees may differ. However, the tuition and living costs are comparatively high depending on individual circumstances.  As a parent, you must worry about overseas study costs. Here are the best ways to save and finance your child's Australian dream.  What are the estimated costs for studying a course in Australia? Degrees in Australia Approximate costsEnglish Language Study AUD 18,240/YearVocational Education Up to AUD 28,500/YearUG (Undergraduate Degree) Up to AUD 45,000/YearPG (Post-Graduation) Around AUD 48,000/Year Doctoral DegreeAround AUD 48,000/Year  How to plan finances for your child’s education in Australia?  So, these are some estimated costs of studying in Australia. The expenses differ according to the course chosen. Given the cost, here is how you can finance the child’s tuition fee and living expenses in Australia.  1. Applying for a scholarship  Every university aspires to nurture talents from around the world and to encourage students; universities offer scholarships based on merit. Students should keep a keen eye on such scholarships and apply for them. An eligible student may be able to cover their tuition fees throughout the course by getting the scholarship.  2. Applying for personal loans  The parent can apply for personal loans if a student does not qualify for funds, scholarships, or grants through different sources. Personal loans are easy to prepare for and have competitive interest rates. You can manage it feasibly by splitting the repayments. Such loans may be a good option for average students pursuing higher education at Australian universities.  Bachelor's for Australia Read More 3. Work while studying  In Australia, one can quickly get a part-time job that pays hourly. It will help the student financially but also help gain exposure to the different industries and how they function.  Students can work for different paid internships, apprenticeships, and as a trainee for other firms to fund their daily expenses and tuition fees.   4. Check out student loans   Student loans are high-interest loans taken for the specific purpose of funding overseas education. You can apply for these loans through lenders, the government, or financial institutions.  Eligibility criteria for student loans:  The applicant must be an Indian citizen.  The age must be 18 years, or their parents will have to take the loan on their behalf.  Admission confirmation from an Australian university is required.  The candidate must enroll in a course recognized by the funding institution, such as a job-oriented degree, diploma courses, etc.  The student/parent should keep up with the terms of the loan/loans and their tenure. They must assess the best option available. One can take student loans for a longer duration ranging from 10-20 years.  Expenses covered under the student loan include:  Tuition fees for the course.  Cost of accommodation of student.  Purchase books, laptops, and stationery as needed.  Other such expenses as required to complete the course.  Cost of study tours, project work, etc  5. Minimize the risk of investments  If you have been investing in your child's Australian dream for a long time, safeguard it. Shift these investments to a minimal-risk fund like an FD (Fixed Deposit) towards the last stages of the investment horizon. You can also switch to a savings account. It ensures safety and provides interest in your money.  How do I apply for an education loan? What documents do you need?  If you want to finance your child's education, make sure you have these documents:  Admission letter from the university  Study-related documents  Candidate's PAN number  Statements of the guarantor, borrower, or student's account  A copy of the income proof of the parent or guarantor  Proof of assets  FAQs How can I fund my studies in Australia?   You can fund your studies in Australia through various means such as scholarships, grants, part-time work, student loans, and financial aid. Research available scholarships and grants, explore part-time job opportunities, and inquire about student loan options to cover tuition fees and living expenses during your study period.  Do I need proof of funds to study in Australia?   Yes, international students typically need to show proof of sufficient funds to cover tuition and living expenses in Australia.  How many funds required for Australia?  The funds required for studying in Australia vary depending on the course, location, and duration of study. Generally, you'll need to show sufficient funds to cover tuition fees and living expenses.  Conclusion These are some ways to finance your child's Australian dream. What is the best option for you? TALK TO AN EXPERT

Equity Linked Savings Schemes, also known as ELSS, are mutual fund investment plans that enable income tax reduction. They are also referred to be tax-saving funds for this reason. According to section 80c of the Income Tax Act, taxpayers may invest up to INR 1.5 lakh in certain stocks and deduct that amount from their taxable income. ELSS is one of the securities that has been legalized; other securities include PPF, postal savings such as NSC, tax-saving FDs, NPS, etc.  Features of ELSS mutual funds  Equity makes up a huge part of the portfolio of ELSS funds.  They all have mandatory lock-in periods, although theirs is the shortest at only three years.  You profit from tax savings in addition to capital growth from equity investment.  If you want a consistent income, you can choose dividend payouts, or you can choose growth for capital growth.  Entry or exit loads are not present in ELSS Mutual Funds.  Long-term returns from good ELSS Funds are in the 10 – 12% range, among the greatest of all financial vehicles in the tax-saving category. ELSS does, however, carry some risk.  Advantages of best ELSS mutual funds  Only 10% of the gains are taxed on earnings.  There is no upper investment limit.  The three-year lock-in period is the shortest of all Section 80C options.  Investors are not required to have extensive market understanding. The return on your investment is maximized by expert fund managers who have exceptional experience managing mutual funds.  The potential returns are significantly larger when comparing ELSS mutual funds to other tax-saving options like PPF or NPS Top 10 ELSS Mutual Funds Read More Who should invest in ELSS mutual funds?  A Hindu Undivided Family (HUF) or any individual may invest in ELSS. It is only appropriate for individuals who are knowledgeable enough, have the capacity for risk, and are committed to their investments over the long term. Young investors who are just starting their professional careers can make long-term investments. Young investors are the best candidates for ELSS since they have the time to fully harness the power of compounding and earn significant profits while saving up to Rs 46,800 in annual taxes. Options for investing in the best ELSS Mutual Funds  1. Growth Option  The holder won't get any benefits in the form of dividends under the growth option. Gains are received by the investor during redemption, which increases the profits by increasing the entire NAV. The one word of caution is that there is a market risk associated with the returns. It's possible that markets don't always favor investors.  2. Dividend reinvestments option  This is a choice whereby the investor reinvests dividends to raise the NAV. This is a wise move, especially if the market is performing well and is expected to do so in the future.  3. Dividend option  An investor who chooses this option receives timely advantages in the form of fully tax-free dividends. Only when there are excessive profits over and above are dividends issued.  Source: Pexels How to evaluate the best ELSS mutual funds  1. Fund returns  To check that the fund has remained stable over the years, compare its performance to that of its peer competitors. An investor can invest in the suggested funds based on these criteria.  2. Expense ratio  The expense ratio shows how much of your investment is used to manage the fund. Higher take-home returns were the result of a decreased expense ratio. It goes without saying that you should select the fund with the lower expense ratio.  3. Fund History  Select investment companies with a track record of steady performance over a lengthy period, such as five to ten years. Based on its benchmark and the caliber of the equities in its portfolio, a fund's performance is represented. A fund will provide significant returns if it outperforms its benchmark or if the stocks perform better.  4. Financial Parameters  To analyze a fund’s performance, consider a number of criteria, including Standard Deviation, Sharpe ratio, Sortino ratio, Alpha, and Beta. A fund that has a higher beta and standard deviation is riskier than one that has a lower beta and deviation. Because they give better returns for each additional risk you take, choose funds with a higher Sharpe ratio.  Building trust in the fund is mostly dependent on the fund manager. The fund manager is crucial because choosing the right stocks and building a solid portfolio are what enable the fund to generate high returns. Their competency skills and experience help to build confidence in this regard. Why do you invest in ELSS Funds? Read More Best ELSS Funds to Invest in 2023 Fund Name and their 3-Year Compound Annual Growth Rate (3Y CAGR) Fund Name 3-Y CAGR Quant Tax Plan 33.6% Bank of India Tax Advantage Fund Eco 24.4% Bank of India Tax Advantage Fund 23.8% Union Long-Term Equity Fund 20.6% Canara Robeco Equity Tax Saver fund 20.2% UTI Long-Term Equity Fund 19.3% Mirae Asset Tax Saver Fund 19.2% DSP Tax Saver Fund 18.5% UTI Long Term Equity Fund 17.8% Kotak Tax Saver Scheme 17.1% Principal Personal Tax Saver Fund 16.8% Baroda ELSS 96 Plan A 16.3% SBI Magnum Long Term Equity Scheme 16.3% ICICI Prudential Long Term Equity Fund Tax Saving 15.5% Invesco India Tax Plan 15.1% Tata India Tax Savings Fund 15% Baroda BNP Paribas ELSS Fund 13.8% SBI Magnum Long-Term Equity Scheme 12.9% Nippon India Tax Saver ELSS Fund 12.7%  FAQs Are ELSS funds better than mutual funds?   ELSS funds are a type of mutual fund that invests primarily in equity, providing the potential for higher returns and tax benefits.  What are the advantages of ELSS over the tax-saver FD?  The advantages of ELSS (Equity Linked Savings Scheme) over tax saver Fixed Deposits (FDs) include the potential for higher returns due to equity investments, tax benefits under Section 80C with a limit of 1.5 lakh INR, and the opportunity for wealth creation through long-term equity market exposure.  What are the advantages of ELSS funds?   The advantages of ELSS (Equity Linked Savings Scheme) funds include the potential for higher returns due to equity investments, tax benefits under Section 80C of the Income Tax Act, and a lock-in period of three years, which encourages long-term investment.  TALK TO AN EXPERT

ICICI Prudential Mutual Fund is the second-largest asset management company in India. With over Rs 5 Lakh crore, the AMC is among the most trusted names in the mutual fund space. ICICI offers products across asset classes. https://www.youtube.com/watch?v=tdwqQH0xkFw ICICI Prudential India Opportunities Fund Investment Objective The scheme's primary objective is to generate long-term capital appreciation by investing in opportunities presented by special situations such as corporate restructuring, Government policy and/or regulatory changes, companies going through temporary unique challenges, and other similar instances.  Investment Process   Concentrated portfolio: The scheme would take concentrated exposure to high-conviction stocks.  Market cap and sector Agnostic: The scheme has the flexibility to invest across market caps. Also, the scheme may take aggressive sectoral positions.  Bottom-up Approach: The investing style is a bottom-up stock picking style because the core of its investment strategy is identifying companies in special situations requiring rigorous 360-degree stock research.  Portfolio Composition  The fund had invested more than 66.49% of the funds in large-cap companies, 28.94% in mid-cap companies, and the remaining 4.57% in small-cap companies. Also, the fund is diversified across various sectors such as Pharma & Biotechnology, Automobiles, Banks, Telecom-Services, Finance, etc. The top five sectors hold approximately half of the portfolio. Note: Data as of 30th June. 2023. Source: ICICI Pru AMC, Value Research  Top 5 Holdings Name Sector Weightage % Oil and Natural Gas Corporation Ltd. Oil 9.03 Sun Pharmaceutical Industries Ltd. Pharma and Biotech 7.76 Bharti Airtel Ltd. Telecom Services 6.76 NTPC Ltd. Energy 6.40 Infosys Ltd. Information Technology 5.40 Note: Data as of 30th June 2023. Source: ICICI Pru AMC Performance Since Inception  If you had invested 10,000 at the fund's inception, it would now be valued at Rs 22,240. Note: Fund performance as of 30th June 2023 since launch; Inception Date:15th January 2019.  Source: icicipruamc.com  The fund has performed consistently and has generated an annualized return of 19.64% since inception. The fund has outperformed both benchmarks consistently.  Invest in Fund Fund Manager  Mr. Sankaran Naren and Mr. Roshan Chutkey ably manage the fund. Mr. Sankaran Naren has over 31 years of experience, and Mr. Roshan Chutkey has over 14 years of experience.  Who Should Invest?  The scheme is suitable for investors with an appetite for volatility and who would like to benefit from taking concentrated stock bets. Investors looking to benefit from investment opportunities presented by special situations such as corporate restructuring, Government policy and/or regulatory changes, companies going through temporary unique challenges, or other similar instances face time to time may consider investing in the scheme.  Why Invest in ICICI Prudential India Opportunities Fund?  Special situations are unique situations that companies may face from time to time.   These situations present an investment opportunity to a fund manager who can foresee and interpret the implications of that opportunity.  ICICI Prudential India Opportunities Fund has performed consistently following this investment strategy.    Ideal Time Horizon  One should look at investing for a minimum of five years or more.  Investment through Systematic Investment Plan (SIP) may help tackle broader equity market volatility.  Conclusion  The scheme provides access to well-researched companies currently undergoing special situations and provides a higher return potential. This allows investors to generate high returns over the long term by taking aggressive risks. Also, the fund has consistently outperformed its benchmark. Hence, investors seeking to invest for a long-term time horizon to generate high returns with higher risk through exposure to the banking and financial sector can consider this fund.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

NAV or Net Asset Value refers to the price of the mutual fund at which an investor can buy or sell units of the mutual fund. The NAV of a mutual fund indicates its market value. Hence, one can view NAV and its current performance to assess the mutual fund's current performance to a certain extent. An investor can determine the fund value by identifying the percentage fluctuation in the mutual fund’s NAV.   A mutual fund house hires an accounting firm that calculates the net asset value of the mutual fund. According to the SEBI guidelines, mutual funds must display their NAV publicly by regularly updating them on the AMFI and AMC websites on business days.  How to calculate NAV for a mutual fund?  The formula to calculate the NAV of a mutual fund is:   Net Asset Value = [Total Asset Value— Expense Ratio] / Number of Outstanding units  In the above formula, the TAV refers to the mutual fund investment's market value and the accrued income, receivables less accrued expense, outstanding creditor debts, liabilities, etc.  The expense ratio refers to the fee you pay to the AMC for managing your investments. The expense ratio directly impacts the investors' returns. Direct plans offer a lower expense ratio while regular plans have a higher ratio. In direct plans, the investors manage their own investments by eliminating the middleman!  https://www.youtube.com/watch?v=6_0eNgRHRho Generally, there are two categories of mutual fund assets:  Scheme with fundamental liquid funds like cash  Securities which include bonds and stocks  When you subtract, you will get the net asset value when you subtract the overall expense ratio from its asset value. You can standardize the asset value for each unit by dividing it by the total outstanding units. This will give you the NAV. So, this is important to learn before calculating the mutual NAV using the given formula.  There is a difference between the total and net asset value of any mutual fund. The total asset value includes stocks, bonds, and cash. All of this is considered at the market value or the mutual fund's closing price. The total interest obtained from the fund, its dividends, and liquid assets includes the total asset value. Moreover, the outstanding debt to creditors, expenditures, or other liabilities is essential to the total asset value.  A mutual fund involves a variety of costs. The overall annual expenditures incurred by the mutual fund scheme are included in the expense ratio, which is deducted from the total asset value to determine NAV. Its management fees, operating costs, transfer agent fees, custodian and audit fees, as well as distribution and marketing expenditures, are all included in the expense ratio.  When is NAV calculated?  Since the price of the security, such as stock or bonds, fluctuates often, the NAV of a mutual fund cannot be determined during stock market hours. NAV can be determined after the trading day has ended and the closing bell has rung. It is determined using the fund's shares' daily closing prices. What do high and low NAV indicate?  The NAV of a fund does not indicate how costly or inexpensive it is. The NAV only informs you of a mutual fund scheme's current worth per unit. A high NAV could merely represent a mutual fund scheme's successful performance. It also suggests that the strategy has been in existence for a while.  Few distributors highlight the low NAV when offering new fund offers. They make the investors believe that a low NAV will give them a high return. But that’s where they mistake the NAV of the mutual fund with the company’s stock price. The low stock price indicates that it is available for a bargain price. However the same rule cannot be applied to the NAV of the mutual fund. So, basically, you cannot judge how cheap or expensive a fund is by its NAV value.   NAV impacts only the quantity of units you receive. You receive fewer units from a mutual fund scheme with a high NAV, but the value of your investment stays the same. The mutual fund's performance and your returns hold more value. Difference between NAV and stock price  Many investors tend to confuse the mutual fund's NAV with the stock market price. So, while you are investing in a mutual fund, you may think that a low net asset value would mean a low price; hence, it can be an excellent investment. But that's precisely where you can get wrong.  The market price of a company's stock and the NAV of a mutual fund is very different. Investors can purchase a firm's shares once it is listed on the stock market. The stock exchange lists the price of the company's shares. This indicates the price of the stock market price. The price of the company's shares is influenced by variables, including the demand-supply situation and the company's potential. As a result, the stock market price and book value are different. The market price of a unit does not exist for mutual funds. Units of mutual funds are purchased at book value. Thus, the book value of a unit equals the mutual fund's NAV. Misunderstanding about NAV  Needless to mention that quite a few investors fail to understand the working of NAV. Thus, there could be a high chance of making the wrong investment choices. Being an investor in a mutual fund, you need to properly understand how the NAV is connected to the fund's performance. Some of the common myths associated with NAV:  1. Schemes with low NAVs fall cheaper  Let's say you put the same amount of money into two mutual fund plans with the same portfolios. You will receive more mutual fund units from the plan with the lower NAV. However, this does not imply that it is less expensive.  So, when you want to get more units, it may not always get you the highest returns. Therefore, the net asset value is not the best measure to identify whether or not the funds are expensive or cheap.   2. Funds with higher NAVs are better investments  The example above demonstrates that whether the NAV is high or low doesn't matter. The returns of two mutual funds with the same portfolio will be the same.  The NAV on any particular day won't provide any information on a mutual fund's potential for growth. Instead, it would help if you researched the fund's NAV from recent times. You can predict how a fund will perform in the future by comparing these previous data points.  3. Book profits when the NAV rises  The NAV of a mutual fund should not be confused with the share price. When shares' prices increase, a stock trader sells them to make a profit. Mutual funds don't operate that way, though.  When the NAV rises, you can redeem fund units to leave an investment with promising long-term prospects. Additionally, you can keep hanging onto fund units whose NAVs are dropping or staying the same. Before redeeming any units, consider the fund's performance rather than just the NAV. It could be wise to keep investing in a fund if it performs well.  A mutual fund's book value is its NAV. When making a mutual fund investment, you should focus on the fund's performance rather than just its NAV. This may be accomplished by examining the fund's historical results.  FAQs How is NAV calculated with example?  Net Asset Value (NAV) of a mutual fund is calculated by dividing the total assets minus liabilities by the total outstanding units. For example, if a mutual fund's total assets are $10 million and it has 1 million outstanding units, the NAV would be $10 per unit ($10 million / 1 million units).  How is NAV per share calculated?   To calculate the Net Asset Value (NAV) per share of a mutual fund, divide the total net assets (assets minus liabilities) by the total number of outstanding shares or units of the mutual fund. The formula is: NAV per Share = (Total Net Assets) / (Total Outstanding Shares or Units)  What is the formula for calculating NAV?   The formula for calculating Net Asset Value (NAV) of a mutual fund is: NAV = (Total Assets - Total Liabilities) / Total Outstanding Units.  What is a good NAV for a mutual fund?  Suppose you are ready to invest in mutual funds and see that one has a NAV of 10 and another at 20. While you may want to opt for the former, it is good practice to consider factors like previous performance, AUM size, alpha, and beta.  How often is a NAV calculated?  After each trading day, an investment fund's NAV is determined using the closing market values of the securities in its portfolio. NAV for companies might be seen as being close to book value. Shares of a company or fund may trade in the market at prices that differ from its NAV.  Is low NAV better than high NAV?  NAV will only affect the number of units you will receive. High NAV may give you fewer units but the investment value remains unchanged. Therefore, a high or low NAV reveals nothing about your investment's future.  TALK TO AN EXPERT

Incorporated on December 10, 1999, HDFC Asset Management Company Ltd. is among India's most popular fund houses. HDFC Mutual Fund launched its first scheme in July 2000, and ever since it has been ambitious about offering a stable performance of funds across all the variants of schemes it offers. The HDFC Mutual Fund is managed by HDFC Asset Management Company (HDFC AMC) Limited.  Let us talk about the consumer product – HDFC Mid-Cap Opportunities Fund  https://www.youtube.com/watch?v=h0xun9aaj9s HDFC Mid-Cap Opportunities Fund  Investment Objective The primary objective is to provide long-term capital appreciation/income by investing predominantly in mid-cap companies.   Investment Process  To follow a stock-specific approach  Construct the portfolio on a bottom-up basis  Focus on good quality companies at acceptable valuations  Long-term orientation (resulting in low portfolio turnover)   Stick to the circle of competence  Portfolio Composition  The fund had invested 92.54% of its assets in equity & equity-related stocks, and significant sectoral exposure is to Finance, which accounts for roughly 11.89% of the portfolio. Note: Data as of June 30, 2023 Source: HDFC MF https://www.youtube.com/watch?v=UHYimOpW9Pw Top 5 Holdings  Name Weightage % Indian Hotels Company Ltd. 4.39 Cholamandalam Investment & Finance Co. Ltd. 3.66 Max Healthcare Institute Ltd. 3.65 Tata Communications Ltd. 3.58 Apollo Tyres Ltd.  3.30 Note: Data as of June 30, 2023. Source: HDFC MF  Performance    This Fund S&P BSE 150 MidCap TRI Equity: Mid Cap 1 Year 34.64% 24.82% 23.13% 3 Years 36.45% 33.34% 31.71% 5 Years 18.04% 16.83% 17.05% 10 Years 22.38% 20.17% 21.05% Note: Data as of June 30, 2023. Source: Value Research  Invest In Fund Fund Manager  Mr. Chirag Setalvad (Since June 28, 2014) has over 25 years of experience, of which 18 years in Fund Management and Equity Research and three years in Investment Banking. Before HDFC, he worked at New Vernon Advisory Services and started his career at ING Barings in India.   Who Should Invest in HDFC Mid-Cap Opportunities Fund?  Investors looking to generate higher returns by taking exposure to mid-cap equities can consider this fund. However, investors need to understand the aggressive risk exposure of this fund.  Why Invest in this Fund?  Opportunity to invest in a portfolio of predominantly mid-sized companies.  Aims to provide diversification to an investor’s overall equity mutual fund portfolio.  Experienced fund management and research teams with a track record of managing equity assets across market cycles.  Emphasis on risk management – portfolio diversification across stocks and sectors; focus on good quality businesses.  One of the largest funds in the mid-cap category with a track record of more than 15 years.  Time Horizon  One should look at investing for at least three years or even more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The HDFC Mid-Cap Opportunities Fund has a proven track record of over 15 years, with an Asset Under Management of ₹42,731.64 Cr as on  June 30, 2023. The fund has consistently outperformed both the benchmarks and the category average also. Therefore, investors looking to generate wealth over the long term can consider this fund with an understanding of high risk.   DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.