Fall 2024 Scholarship: Get Up to $10K for Your Master's Abroad! Fall 2024 Scholarship: Get Up to $10K for Your Master's Abroad!

Apply now
April 19, 2023

Franklin Templeton Mutual Fund: NAV, Performance, Latest MF Schemes.

Franklin Templeton Mutual Fund

Franklin Templeton Investments was established in 1947. The organization, since its launch, has provided services for managing assets for institutional, retail, and high-profile clients.

Apart from offering mutual funds, the firm provides several other investment options like private funds, exchange-traded funds (ETF), and accounts that are managed separately.

Franklin Templeton Mutual Fund in India

The company offers schemes such as fixed income, equity, multi-asset, and other alternatives. 

Franklin Templeton Investments serves as a platform for trading, portfolio, and research. It also deals with investment risk management.

Presently, Franklin Templeton has branches in over thirty-four countries. It has employed over six hundred professionals and recruits more than 9500 salaried individuals.

Franklin Templeton Mutual Fund in India

The company started functioning in India in 1996 under the name Templeton Asset Management India Pvt. Ltd. The Franklin Templeton Mutual Fund is authorized by SEBI to offer its services under the registration number MF/026/96/8. 

The company provided its first-ever mutual fund service in September 1996 under the name of Templeton India Growth Fund. The company has been operating twenty-one funds for ten years and various others that have exceeded the twenty-year mark. 

The company bought the stakes of PIONEER ITI AMC Ltd. in 2002 to become the second-largest mutual fund after UTI. 

Franklin Templeton Investments is among the few companies dealing in asset management with in-house registrars for providing efficient service management for its clients. 

The organization offers loyalty programs where the customers can interact with the fund management team, and get exposure to external management development schemes, yearly leadership events for the exchange of ideas, and several elaborate engagement programs.

Templeton Asset Management India Pvt. Ltd. has committed itself to several CSR programs:

  • Installation of four water purifier plants for supporting six thousand families in collaboration with the Bala Vikasa Social Service Society.
  • Aiding the process of supplying five thousand rickshaws in association with the American India Foundation Trust.
  • Setting up fifty camps to train two thousand youth in vocational skills in collaboration with the Kherwadi Social Welfare Association.
  • Providing assistance and support to in and around 2353 girl children in Chennai in association with the K. C. Mahindra Educational Trust.
  • Establishing the Abhudaya English Medium School in Mumbai in collaboration with The Akanksha Foundation.

The Statement of Additional Information (SAI) provided by SEBI states that Franklin Templeton Investments’ total income is $6,392.2 million, profit after tax of $1,696.7 million, and a gross worth of $14877.7 million in 2017.

Templeton Asset Management India Pvt. Ltd. offers approximately 197 schemes with assets under management (AuM) amounting to roughly INR 1.19 Lakh Crore as of 31st March 2017.

Important Information about Franklin Templeton Mutual Fund

Franklin Templeton Mutual Fund

Ten Top-Performing Franklin Templeton Mutual Fund Schemes

Franklin Templeton comprises almost all types of mutual funds permitted by the Securities and Exchange Board of India or SEBI. The ten most viable Franklin Templeton mutual fund schemes in India are mentioned below. 

1. Franklin Asian Equity Fund (Category – Equity: International)

This open-ended fund has a NAV of 32.5721 (Regular Growth) (as of 16th April 2021), and is one of the top-performing funds in the ‘Equity: International’ category.

The fund was launched on 16th January 2008 and has given trailing returns of 50.57% in one year (as of 16th April 2021). The fund considers the MSCI Asia (Ex-Japan) Standard TRI as its benchmark.  

Key Information

Minimum InvestmentINR 5,000
Minimum Additional InvestmentINR 1,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 1,000
Exit Load1% for withdrawals before 365 days
Return Since Inception (16th January 2008):2.66% (as of 31st March 2021)
AssetsINR 261 Crore (as of 31st March 2021)
Expense Ratio2.66% (as on 31st March, 2021)

2. Franklin Build India Fund (Category – Equity: Sectoral-Infrastructure)

This open-ended fund has a NAV of 48.7310 (Regular Growth) (as of 16th April 2021) and is one of the top-performing funds in the ‘Equity: Sectoral – Infrastructure’ category.

The fund was launched on 4th September 2009 and has given trailing returns of 63.13% in one year (as of 16th April 2021). The fund considers the S&P BSE India Infrastructure TRI as its benchmark.  

Key Information

Minimum InvestmentINR 5,000
Minimum Additional InvestmentINR 1,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 1,000
Exit Load1% for withdrawals before 365 days
Return Since Inception (4th September 2009):2.40% (as of 31st March 2021)
Assets2.40% (as on 31st March 2021)
Expense RatioINR 954 Crore (as of 31st March 2021)

3. Franklin India Banking & PSU Debt Fund (Category – Debt: Banking and PSU)

This open-ended fund has a NAV of 17.5362 (Regular Growth) (as of 16th April 2021) and is one of the top-performing funds in the ‘Debt: Banking and PSU’ category.

The fund was launched on 25th April 2014 and has given trailing returns of 7.41% in one year (as of 16th April 2021). The fund considers the NIFTY Banking and PSU Debt TRI as its benchmark.  

Key Information

Minimum InvestmentINR 5,000
Minimum Additional InvestmentINR 1,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 1,000
Exit LoadNil
Return Since Inception (25th April 2014):0.52% (as on 31st March 2021)
AssetsINR 971 Crore (as of 31st March 2021)
Expense Ratio0.52% (as of 31st March 2021)

4. Franklin India Bluechip Fund (Category – Equity: Large Cap)

This open-ended fund has a NAV of 589.7367 (Regular Growth) (as of 16th April 2021), and is one of the best-performing funds in the ‘Equity: Large Cap’ category.

The fund was launched on 1st December 1993 and has given trailing returns of 59.97% in one year (as of 16th April 2021). The fund considers the NIFTY 100 TRI as its benchmark.  

Key Information

Minimum InvestmentINR 5,000
Minimum Additional InvestmentINR 1,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 1,000
Exit Load1% for withdrawals before 365 days
Return Since Inception (1st December 1993):INR 5,927 Crore (as of 31st March, 2021)
AssetsINR 5,927 Crore (as of 31st March 2021)
Expense Ratio1.93% (as of 31st March 2021)

5. Franklin India Corporate Debt Fund (Category – Debt: Corporate Bond)

This open-ended fund has a NAV of 77.3349 (Regular Growth) (as of 16th April 2021), and is one of the top-performing funds in the ‘Debt: Corporate Bond’ category.

The fund was launched on 23rd June 1997 and has given trailing returns of 8.71% in one year (as of 16th April 2021). The fund considers the NIFTY Corporate Bond TRI as its benchmark.  

Key Information

Minimum InvestmentINR 10,000
Minimum Additional InvestmentINR 1,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 1,000
Exit LoadNil
Return Since Inception (23rd June 1997):INR 855 Crore (as of 31st March 2021)
Assets0.89% (as of 31st March 2021)
Expense Ratio0.89% (as of 31st March, 2021)

6. Franklin India Credit Risk Fund (Category – Credit Risk)

This open-ended fund has a NAV of 20.8784 (Regular Growth) (as of 16th April 2021), and is one of the top-performing funds in the ‘Debt: Credit Risk’ category.

The fund was launched on 7th December 2011 and has given trailing returns of 12.41% in one year (as of 16th April 2021). The fund considers the NIFTY Credit Risk Bond TRI as its benchmark.  

Key Information

Minimum InvestmentINR 5,000
Minimum Additional InvestmentINR 1,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 1,000
Exit Load3% for withdrawals before 365 days
Return Since Inception (7th December 2011):INR 2,831 Crore (as of 31st March, 2021)
AssetsINR 2,831 Crore (as of 31st March 2021)
Expense Ratio0.06% (as of 31st March 2021)

7. Franklin India Debt Hybrid Fund (Category – Hybrid: Conservative Hybrid)

This open-ended fund has a NAV of 64.1426 (Regular Growth) (as of 16th April 2021) and is one of the top-performing funds in the ‘Hybrid: Conservative Hybrid’ category.

The fund was launched on 28th September 2000 and has given trailing returns of 15.97% in one year (as of 16th April 2021). The fund considers the CRISIL Hybrid 85+15 Conservative TRI as its benchmark.  

Key Information

Minimum InvestmentINR 10,000
Minimum Additional InvestmentINR 1,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 1,000
Exit Load1% for withdrawals before 365 days
Return Since Inception (28th September 2000):2.30% (as of 31st March 2021)
Assets2.30% (as of 31st March, 2021)
Expense RatioINR 189 Crore (as of 31st March 2021)

8. Franklin India Dynamic Accrual Fund (Category – Dynamic Bond)

This open-ended fund has a NAV of 71.2946 (Regular Growth) (as of 16th April 2021) and is one of the best-performing funds in the ‘Debt: Dynamic Bond’ category.

The fund was launched on 5th March 1997 and has given trailing returns of 7.07% in one year (as of 16th April 2021). The fund considers the CRISIL Composite Bond TRI as its benchmark.  

Key Information

Minimum InvestmentINR 10,000
Minimum Additional InvestmentINR 1,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 1,000
Exit Load3% for withdrawals before 365 days
Return Since Inception (5th March 1997):0.06% (as of 31st March 2021)
Assets0.06% (as of 31st March, 2021)
Expense RatioINR 1,599 Crore (as of 31st March 2021)

9. Franklin India Dynamic Asset Allocation Fund of Funds (Category – Dynamic Asset Allocation)

This open-ended fund has a NAV of 87.1332 (Regular Growth) (as of 16th April 2021), and is one of the top-performing funds in the ‘Dynamic Asset Allocation’ category.

The fund was launched on 16th January 2008 and has given trailing returns of 18.91% in one year (as of 16th April 2021). The fund considers the CRISIL Hybrid 35+65 Aggressive TRI as its benchmark.  

Key Information

Minimum InvestmentINR 5,000
Minimum Additional InvestmentINR 1,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 1,000
Exit Load1% for withdrawals before 365 days
Return Since Inception (16th January 2008):1.74% (as of 31st March 2021)
Assets1.74% (as of 31st March, 2021)
Expense RatioINR 922 Crore (as of 31st March 2021)

10. Franklin India Equity Advantage Fund (Category -Large and MidCap)

This open-ended fund has a NAV of 96.9132 (Regular Growth) (as of 16th April 2021), and is one of the top-performing funds in the ‘Equity: Large & MidCap’ category.

The fund was launched on 2nd March 2005 and has given trailing returns of 70.05% in one year (as of 16th April 2021). The fund considers the NIFTY Large Midcap 250 TRI as its benchmark.  

Key Information

Minimum InvestmentINR 5,000
Minimum Additional InvestmentINR 1,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 1,000
Exit Load1% for withdrawals before 365 days
Return Since Inception (2nd March 2005):INR 2,459 Crore (as of 31st March, 2021)
AssetsINR 2,459 Crore (as of 31st March 2021)
Expense Ratio2.38% (as of 31st March 2021)

How can you invest in Franklin Templeton Mutual Fund via EduFund?

Investing in Franklin Templeton Mutual Fund through Edufund is an easy, seven-step process.

Step 1: Create an online account on EduFund by downloading the EduFund App from Apple Store or Play Store 

Step 2: Choose a Scheme: Look through several Franklin Templeton Mutual Fund schemes and choose the best scheme for your financial situation. You can invest in a Systematic Investment Plan (SIP) or a total sum. The inbuilt recommendation mechanism suggests the scheme that is best suited for your financial goals.

Step 3: View and Track Your Transaction(s) – Your EduFund account will reflect the amount you have laid out on a specific scheme within four working days. You can track the Mutual Fund NAV, statement, account balance, and other vital information in the app. You can buy, redeem, or switch between Franklin Templeton Mutual Fund units.

Step 4: Consult a Mutual Fund Counsellor – You can get in touch with a mutual fund consultant to discuss your targets and get personal guidance. 

EduFund uses premium encryption and authentication technologies akin to a bank to safeguard your transactions and investments.

Five Best Performing Fund Managers at Franklin Templeton Mutual Fund 

A Fund Manager plays a decisive role in instilling values and steering growth. The top-performing fund managers at Franklin Templeton Mutual Fund, whose stellar performance has steadily generated the best dividends, have been mentioned below. 

1. Mr. Anand Vasudevan

Mr. Vasudevan earned his B.Tech from the Indian Institute of Technology, Madras, and a PGDM from IIM Calcutta. He post-graduated with a Master’s in Finance from the London Business School. Presently, he is the Senior Vice President of the Franklin Templeton Mutual Fund and heads the Equity operations in India. 

He was associated as an Equity Research Analyst with the Dresdner Kleinwort Wasserstein and Bruyette and Woods, Keefe in 2001 and 2004, respectively. Then he joined Franklin Templeton.

Anand Vasudevan teamed up with Templeton Asset Management Private Limited in 2007. He has operated as the Head of Research since 2008. Currently, he is in charge of the Franklin India Flexi-cap Fund and Franklin India Bluechip Fund.

Mr. Anand Radhakrishnan 

Mr. Radhakrishnan graduated with a B.Tech degree in Chemical Engineering from Anna University, Chennai. He earned a PGDM from IIM Ahmedabad. Mr. Radhakrishnan is also a certified Chartered Financial Analyst. 

He has been working in the sector of Investment Management since 1994. In the initial days of his career, he was the Deputy Manager of Equity Research at SBI Mutual Funds Management.

He was associated with Sundaram Mutual Funds for eight years in a row. 

Radhakrishnan is presently the Chief Investment Officer at Franklin Templeton. Before it, he was the Senior Vice President, Head of Portfolio Analytics, and the Portfolio Manager of the said organization.

Mr. Radhakrishnan handles the operations at the Franklin India Infotech Fund, Franklin India Bluechip Fund, Franklin India Taxshield, FT Dynamic PE Ratio of Funds, Franklin India Prima Plus, and FT India Life Stage Fund of Funds. He also spearheads the equity sector of all types of hybrid funds.

Ms. Roshi Jain

Ms. Roshi Jain is a Chartered Accountant and a Chartered Financial Analyst. She earned her PGDM from IIM Ahmedabad.

She inaugurated her career at SR Batliboi. She was a part of the Research Wing of the Goldman Sachs Group Inc. Hong Kong / Singapore in 2002. She relocated to the London branch of Goldman Sachs two years later.

Presently, Ms. Jain is the Assistant Vice President of the Franklin Templeton Mutual Fund. She doubles up as the Co-Portfolio Manager and Equity Research Analyst at Franklin Templeton.

She specializes in engineering, retail, power, cement, and construction in India and the ASEAN region.

Mr. Anil Prabhudas

Mr. Prabhudas is a B.Com from the University of Mumbai. He is also a certified Chartered Accountant from ICAI. In 1994, he was associated with Pioneer ITI before being roped in by Templeton Asset Management India Pvt. Ltd.

He is entrusted with the responsibility of providing research-oriented data on hotels, packaging, metals, sugar, and FMCG industries. 

He has held several key positions at Franklin Templeton. He was the ex-Assistant Vice President and the Portfolio Manager at Franklin India Index Tax Fund, FT India Index Tax Shield 99, FT India Index Fund – Franklin FMCG Fund, Franklin India Index Fund, NSE Nifty Plan, and BSE Sensex Plan.

Mr. Prabhudas is presently acting as the Fund Manager of Franklin India Taxshield Fund, Franklin India Opportunities Fund, FT India Monthly Income Plan, Templeton India Pension Plan, FT India Balanced Fund, and Templeton India Children’s Asset Plan.  

Mr Janakiraman Rengaraju 

Mr. Rengaraju graduated from the Government College of Technology, Coimbatore, with a B.Tech degree. He also earned a PGDM from IIM Bangalore. Apart from having a B.Tech and a PGDM degree, he is a Chartered Financial Analyst too.

He was associated with UTI Securities, Mumbai previously. He was in charge of the investment corpus management while he was with the Indian Syntans Group. 

Currently, Mr. Rengaraju is the Assistant Vice President, Senior Research Analyst of Equities, and the Portfolio Manager at Franklin India. He specializes in media, telecommunications, and automobiles.

He is also responsible for managing some of the mutual funds of the organization, such as the Franklin India Prima Fund and Franklin India Prima Plus. 

Why should you invest in Franklin Templeton Mutual Fund?

Franklin Templeton Mutual Fund is one of the top-performing AMC in India. It has more than a hundred schemes to select from.

The AMC has a legacy of over seventy years and manages assets of over INR 1.19 Lakh Crore. It has a vast network of impaneled distributors who provide its financial services to its investors.

The fund firm has 1300 branches in total with outreach in over 32 Indian states, which offers its services to all ranks of investors.

Whatever your investment target, you can get a Franklin Templeton mutual fund scheme to achieve your financial goals.

Experienced fund managers at Franklin Templeton Mutual Fund simplify the process of investing in the stock market and secondary market for you.

Select EduFund for investing in Franklin Templeton mutual fund 

EduFund simplifies the process of investing in Franklin Templeton mutual funds. Experienced consultants at EduFund offer you personalized solutions for your financial ambitions.

You can begin by investing from a meager INR 5,000 and increase your capital conveniently. 

Benefits with Edufund

  • Customized Research-Based Financial Plan – EduFund’s scientific fund tracker monitors over 1 lakh data points and 400 financial situations to suggest the best mutual funds.
  • Customer-Friendly Counsellors Help You Create a Financial Plan – EduFund’s counselors are equipped to manage all kinds of questions from customers. They spend as much time with you as you need and solve all your queries to help you create a healthy financial plan.
  • Invest Less, Earn More – Just not the best Indian mutual fund, EduFund provides you with the opportunity to invest in US Dollar ETFs and international mutual funds.
  • Use Tools Free of Cost – EduFund offers several free tools for its clients, including SIP Calculator, College Savings Calculator, etc.
  • No Technical Skill Needed– You need not be a pro in finance to understand which mutual fund is perfect for you. EduFund does the job for you.
  • Value-Added Benefits – You may get value-added benefits like free advisory, zero commission, and zero hidden charges.
  • Safeguards Transactions – EduFund is RIA-registered and uses top-class 128-SSL security to ensure safe transactions.
  • Special Support for Children’s Education – EduFund has a team of experts committed to helping you fulfill your children’s educational goals.  

FAQs

Is Franklin Templeton a good mutual fund?

Franklin Templeton Mutual Fund is one of the top-performing AMCs in India. It has more than a hundred schemes to select from.

The fund firm has 1300 branches in total with outreach in over 32 Indian states, which offers its services to all ranks of investors.

What type of fund is Franklin Templeton?

The company provided its first-ever mutual fund service in September 1996 under the name of Templeton India Growth Fund. The company has been operating twenty-one funds for ten years and various others that have exceeded the twenty-year mark.

Franklin Templeton Investments is among the few companies dealing in asset management with in-house registrars for providing efficient service management for its clients. The organization offers loyalty programs where the customers can interact with the fund management team and get exposure to external management development schemes, yearly leadership events for the exchange of ideas, and several elaborate engagement programs.

Is Franklin Templeton a good company?

Franklin Templeton Investments serves as a platform for trading, portfolio, and research. It also deals with investment risk management.

Presently, Franklin Templeton has branches in over thirty-four countries. It has employed over six hundred professionals and recruits more than 9500 salaried individuals.

What is the name of Franklin mutual fund?

Franklin Templeton Investments was established in 1947. The organization, since its launch, has provided services for managing assets for institutional, retail, and high-profile clients.

Franklin Templeton Investments serves as a platform for trading, portfolio, and research. It also deals with investment risk management.

Consult an expert advisor to get the right plan for you

Want to invest?

Want to invest?

Open a Edufund account & start investing. It's fast & 100% free.

GET STARTED
US Stocks Bannar
Scholarships Bannar

recommended reading

4 essential tips on investing in your child's education

4 essential tips on investing in your child's education

Life becomes easier and more manageable with planning. A very important part of a happy and balanced life is managing your finances well. This responsibility becomes manifold if you have a family to provide for. Prioritizing the prior planning of your child’s college education can make your retirement life effortless and stress-free. Put away savings to preserve wealth. Invest money to generate more wealth. At the end of the day, gaining that fine balance between your savings, investments, and spending habits is what will secure a beautiful future for you as well as your family. Here are some pro tips on how to invest and save for your children’s college education. 1. When to start? Timing is everything. The logic is simple - the earlier you start, the more wealth you can generate and accumulate. You may begin as early as the family planning stage itself. Even if you do not have a clear sight of the stream of academics your child might pursue later in life, it does not hurt to put away money. As your child grows up, they might decide upon what line of academics they want depending on their career goals. Your savings will come in handy in reassuring your child that you are perfectly prepared to back them in realizing their dreams as there will already be a considerable amount of funds they can count on. 2. Compartmentalise your savings The habit of saving money regularly is one of the healthiest habits one can inculcate. But mastering the art of saving requires self-regulation and a sense of organization. Putting away a bulk of money indiscriminately is not the most effective way of saving. Keep track of your expenses and your income; device upon an amount you can afford to put away as savings. Make a list of all the things you need to save for - emergencies, education, health, housing, and so on. Divide your savings accordingly. The act of compartmentalizing savings can also be effective in regulating your spending habits. You can also inculcate this healthy habit in your child from an early age by encouraging them to save money from their monthly allowances. 3. Consider different investment options Investing is always an improvement upon saving because investments can generate new wealth. Thus, it is not enough to just put away money as savings; you also need to allocate funds to certain investments that suit your monetary goals. There are different kinds of investment channels you can opt for. Some of us prefer fixed or recurring deposits while others want to generate more returns and go for mutual funds. Mutual funds can be of different types depending on the factors like the amount of risk, duration, return rates, etc. The mode of payment can also vary. For example, you can go for a one-time investment or you can choose monthly SIPs. Be well aware of all kinds of investment plans available so that you can choose the best one for yourself. 4. Invest in a global education Your savings and money made from investments will be especially useful when you send your child abroad to pursue a college education. Even if you are not sure about the possibility of global education in the future, it is always advisable to remain prepared for the same. Simply saving money is not enough. Investing is a better idea and in the case of global education, it can be beneficial to invest in foreign stocks. This is because the value of the Indian currency is forecasted to fall in comparison to other stable currencies in the world. This means that the cost of living and studying abroad will be way higher than the cost of living and studying in a new city within India. Once you set your financial goals, find out about investment schemes with international equity funds from countries like the US, so that you can make money in a more stable currency. Conclusion There can be several investment goals relating to different parts of your life like yourself, your spouse, relatives, housing and accommodation, health, gadgets, and emergencies. Mixing these up will only cause chaos and distress. Hence, it is important to think separately about saving for your children’s college education and indulge in smart investments. Consult an expert advisor to get the right plan TALK TO AN EXPERT
4 W’s of Balanced Advantage Funds

4 W’s of Balanced Advantage Funds

What is a Balanced Advantage Fund? A balanced advantage fund is a fund that can invest 0-100% in the equity market or 0-100% in the debt market dynamically as per the prevailing market condition. For example - If a fund manager finds that the price of the equity market has gone up, he will tilt the portfolio more toward the debt market. Likewise, if the equity market trades at a discount, then the fund manager can tilt/shift the portfolio toward the equity market.  The valuation is the internal process of the fund. Based on valuation, the fund manager can take the call. This way, the fund manager can take the opportunity and change the asset allocation. The fund manager can go aggressive in the equity market or can also decide to play conservatively to reduce the portfolio's volatility. The aim is to minimize the portfolio's downside risk and maximize the returns.  Who should invest? Investors who are looking for long-term wealth creation. Investors who are not comfortable with the market volatility. Investors who do not want to face high volatility and looking for equity-like returns. Investors who are unsure which type of fund they should invest in, whether in the equity or debt-oriented fund. Risk-averse equity investors with an investment horizon of more than three years. Additional read: Financial mistakes to avoid Why should you invest? A balanced advantage fund is a dynamically rebalancing fund between two asset classes, i.e. equity and debt. It has the complete flexibility of rebalancing from 0-100% in both asset classes. It provides you with better risk-adjusted returns. It manages the equity market volatility and provides stability in the portfolio by diversifying the portfolio into the debt market. It offers you equity-like returns, which help your portfolio to grow at a much faster rate than debt funds and also helps you to beat inflation. Minimizes the downside risk and provides scope for growth by investing in the equity market. When should you invest? When the volatility in the equity market increases you do not want to have such high exposure to the prevailing volatility. When you want equity-like returns but do not want to face high liquidity. First-time mutual fund investor looking for long-term wealth creation. Conclusion Try to allocate some portion of your portfolio towards a balanced advantage fund if you want to reduce the portfolio's volatility. A balanced advantage fund is like a season fund. FAQs What is a Balanced Advantage Fund? A Balanced Advantage Fund can dynamically invest 0-100% in either the equity or debt market, depending on market conditions. Who should consider investing in Balanced Advantage Funds? Investors seeking long-term wealth creation, those uncomfortable with market volatility, and those unsure about equity or debt-oriented funds can benefit. Why invest in Balanced Advantage Funds? These funds offer flexible asset allocation, better risk-adjusted returns, and stability by diversifying into the debt market. They provide equity-like returns, growth potential, and risk mitigation. When is the ideal time to invest in Balanced Advantage Funds? Consider these funds when equity market volatility increases, and you want equity-like returns without excessive risk. What is the aim of Balanced Advantage Funds? The aim is to minimize portfolio downside risk, maximize returns, and adapt to market conditions, providing both stability and growth.
5 financial things to consider before child planning.

5 financial things to consider before child planning.

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
5 investment plans every parent should have

5 investment plans every parent should have

As parents, we have a profound responsibility to ensure a bright and secure future for our children. While providing love, care, and education are crucial aspects, financial planning plays a pivotal role in setting the stage for their success. Investing wisely is key to securing their future aspirations and safeguarding against unforeseen circumstances. Let's explore five essential investment plans that every parent should consider, ranging from mutual funds and US ETFs to US stocks and insurance. So, we will dive in and discover the strategies that can pave the way for your child's financial well-being. Education Fund: The Power of Mutual Funds One of the most crucial investments you can make as a parent is in your children's education. Start by setting up an education fund that specifically caters to their academic pursuits. Consider tax-efficient options like a 529 plan, which allows you to invest in a variety of mutual funds, ensuring growth potential while enjoying tax benefits. Platforms like EduFund (www.edufund.in) offer valuable guidance and tools to help you plan and manage your child's education fund effectively. investment plans US ETFs: Diversification Made Easy 1. Exchange Traded Funds Exchange-Traded Funds (ETFs) have gained significant popularity in recent years due to their flexibility and global exposure. Just like mutual funds, ETFs represent a basket of securities, including stocks, bonds, commodities, or a combination thereof. However, unlike mutual funds, ETFs are traded on stock exchanges throughout the trading day at market prices. ETFs offer several benefits, including transparency, liquidity, and cost-effectiveness. Parents can buy and sell ETFs at any time during market hours, allowing for more flexibility in managing their investments. Additionally, ETFs disclose their holdings daily, ensuring transparency in the investment portfolio. With generally lower expense ratios compared to mutual funds, ETFs offer a cost-effective investment option for parents. 2. USA Stocks For parents who are comfortable with taking on more active roles in their investment journey, investing in individual stocks can be an exciting avenue. Owning shares of well-established companies can offer substantial returns over time. While investing in individual stocks requires careful research and monitoring, it can provide the potential for higher growth compared to mutual funds or ETFs. EduFund's resources can assist you in understanding stock investing basics and identifying companies with strong fundamentals. To mitigate risk, parents can consider diversifying their stock portfolios across different sectors and industries. This diversification helps reduce the impact of a single stock's performance on the overall portfolio. In addition, parents should adopt a long-term investment mindset and focus on the fundamentals of the companies they invest in rather than short-term market fluctuations. Investment Tips for Dad's in India Read More Insurance - Protecting Your Family's Future Insurance is a pivotal component of any comprehensive financial plan, especially for parents. Life insurance provides financial protection to your family in the event of your untimely demise. It ensures that your children's education, living expenses, and future aspirations are secure, even in your absence. Term life insurance offers coverage for a specified period, providing a higher coverage amount at an affordable premium. Additionally, health insurance safeguards against unexpected medical expenses, offering peace of mind during uncertain times. By securing adequate insurance coverage, parents can safeguard their family's financial well-being and ensure a secure future. Investment Tips for Mom's in India Read More Mutual Funds - Diversify and Grow Your Wealth Mutual funds are an excellent choice for parents seeking diversification in their investment portfolios. These funds pool money from several investors to invest in a variety of asset classes, including stocks, bonds, and money market instruments. Managed by professional fund managers, mutual funds allow parents to benefit from their expertise and experience in making investment decisions. By spreading investments across different sectors and markets, mutual funds help reduce the risk associated with investing in individual stocks. Parents can choose from many types of mutual funds on the basis of their risk appetite and financial goals. For those seeking stability, bond funds can offer a regular income with lower volatility. On the other hand, equity funds offer an opportunity for capital appreciation through investments in stocks. Balanced funds offer a blend of both equity and bond investments, providing a balanced risk-return profile. By investing in mutual funds, parents can access professional investment management and enjoy the benefits of diversification. You can lay a strong foundation for your family's future by incorporating these investment plans into your financial strategy. Remember that investment decisions should align with your risk tolerance, financial goals, and time horizon. It's always suggested as advice to seek guidance from financial advisors who can provide personalized advice based on your specific circumstances. Conclusion  Investing wisely is an integral part of parental responsibility. By incorporating these five investment plans into your financial strategy, you can take proactive steps toward securing your child's future while also protecting your own financial well-being. Remember to conduct thorough research, seek professional advice, and regularly review your investment portfolio to adapt to changing circumstances. By combining long-term vision with disciplined investment practices, you can build a strong financial foundation for your children, allowing them to chase their dreams with confidence. Start planning today and pave the way for a prosperous future for your family. Consult an Expert Advisor
5 reasons why SIP is the best investment choice?

5 reasons why SIP is the best investment choice?

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

5 tips to know before investing in US stocks

If you want to invest in the US stock market to benefit from US stocks, you may start by opening an international trading account in India. But before investing in US equities, here are the 5 important things to know before investing in US stocks. 1. Regulatory framework One of the oldest, most effective, transparent, and well-regulated stock markets in the world is the one in the United States. On US stock markets are listed some of the largest businesses in terms of market capitalization, sales, and profitability. The worldwide exposure and flavor that US markets offer are crucial since many of these listed firms have a significant global presence, scale, and operational structure. The regulatory body that monitors the operation of the US stock markets is the Securities and Exchange Commission (SEC), which was founded in 1934. It guarantees the strict application of laws and rules that establish the highest standards of openness and integrity—essential for stock markets as well as for the safety and trust of investors. 2. Impact of Foreign Exchange  The volatility in the value of the US and other currencies should be taken into account while investing in US equities. This is because before any gain (or loss) for an Indian investment is realized, it would be converted using the appropriate exchange rate in the Indian rupee. The gains (or losses) will fluctuate in lockstep with changes in the exchange rate. An Indian investor must be aware that the exchange rate can be unpredictable and is influenced by a wide range of political, economic, and supply and demand variables. 3. Liberalized Remittance Scheme According to the Reserve Bank of India's Liberalized Remittance Scheme, an individual may invest up to $ 250000 per year in US equities from India (LRS). The cap covers any money sent abroad for purchases, travel, education, or other international transactions during the year. The investor's brokerage account has to be filled before making any investments in US equities. Investors must complete Form A-2, which is available from RBI-authorized dealers. Any sum over the $250000 cap requires RBI approval. Additional read: US stocks for investing in child education 4. Taxation To make your efforts worthwhile, it is crucial to take into account the tax consequences of your international assets. Due to the Double Tax Avoidance Agreement (DTAA) between the US and India, the same income cannot be taxed twice on investments made in the US stock market. 5. Dividend tax The dividends from US stocks are taxed at a fixed rate of 30% for overseas investors. However, as a result of the tax agreement between the US and India, citizens of India pay a 25% tax rate (deducted before distribution). However, because of the double tax avoidance agreement between the US and India, the tax paid in the US may be claimed as a foreign tax credit in your domestic filing. 6. Capital gains tax Your assets in the US are not subject to capital gains tax. However, India requires you to pay tax on your overseas capital gains. This may be divided into two groups.: Long-term capital gain (LTCG)If you keep the equities for more than 24 months before realizing capital gains, you will be subject to indexation advantages and a 20% tax rate in addition to any relevant fees and other surcharges. Short-term capital gain (STCG)Standard income-tax regulations apply to any gains from assets held for less than 24 months, and they are added to your ordinary taxable income. You must also take into account the recently implemented Tax Credited at Source or TCS. Under the new regulations, a 5% TCS will be applied to all international transfers over INR 7 Lakhs in a fiscal year. It is not an additional expenditure to deduct this advance tax when submitting your taxes each year. Charges on US stock-broking account  Using an Indian stock brokerage account to invest in the US stock market is prohibited. You would need to create one with a US stock brokerage company instead. To provide this service, the majority of Indian stock brokers who allow you to invest in US equities typically collaborate with a US stockbroker. You would also be required to pay certain fees for a US stock broking account, just like you would for an Indian trading account. This is something you should also take into consideration when you buy US stocks because these fees can reduce your earnings. These fees include Annual Maintenance Costs, brokerage charges, bank charges, transaction charges, and more. Invest in the US stocks with EduFund  Download the EduFund app and create an account to start investing in US stocks. With zero charges and no hassle account opening process from the comfort of your home, you can start investing in FAANG stocks in your portfolio to geographically diversify your portfolio!! Thus, investing in US firms and equities may give investors access to the worldwide market, credibility, and an opportunity to increase their wealth. Consult an expert advisor to get the right plan TALK TO AN EXPERT
5 top investments for risk-averse investors

5 top investments for risk-averse investors

All investments are associated with risks. Yet, the risk is not uniform, and it's essential to be aware of the different levels of risks linked with all types of investment instruments. This is why the first thing to consider before investing is how much of a risk appetite has – how much risk one is willing to take. Want to know the best investment options for risk-averse investors but still generate good returns? Continue reading this article to know more! What is risk averse? Risk-averse refers to an investor who chooses to preserve the capital over and above its potential to generate returns that are higher than the average. Risk can refer to many factors – volatility, currency, market, credit rating, etc. Risk-averse can also refer to a conservative investor. Low risk symbolizes stability in investments. A low-risk investment generates guaranteed reasonable returns, if not outstanding, above benchmark returns. But chances are near zero that the principal investment amount will be lost. Whereas a high-risk investment option may gain or lose money over time. Risk-averse investors are unwilling to accept market volatility. They prefer their investments to be highly liquid - readily available to be withdrawn. Such investors usually include old investors or retired individuals who depend on their savings for their daily expenses. Start Investing in Mutual Funds Is FD a good option for risk-averse investors? One should constantly adjust their returns against the current inflation rate. The current Fixed Deposit interest rates are 5-7% p.a. on average. But the current inflation rates are around 6-8% p.a. Give these figures a thought. The price you pay for your everyday goods and services is rising at 6-8%, whereas your FD investments are growing at only 5-7%. FDs do not increase the value of your money over time. In fact, you actually lose money or its purchasing power over time. Do you think FDs are the safest investment option? Banks defaulting on payments is rare but definitely possible. The Deposit Insurance and Credit Guarantee Corporation (DICGC) guarantees Rs. 5 lakhs per person per bank if the bank defaults. Let's not forget the liquidity part of this instrument. Fixed deposits can have a lock-in ranging from 3-5 years. Banks penalize the investors for withdrawing money before the lock-in is over. This penalty is in the form of a reduction of interest rate by a certain percentage. Download App and Start Saving for Child Education What are the best investment options for risk-averse investors? The market is filled with many investment options for investors with varying risk appetites. Let's look at some of the best investment options for risk-averse investors: 1. Short-term bond fund The best alternative for investors who do not want exposure to FDs or volatile instruments. Short-term bond funds – bond funds with low maturity and a high potential to offer better returns. Debt Funds with longer maturity are subjected to interest rate risk. But short-term bonds have a lower interest rate risk as their maturity period is much lower. 2. Municipal and Corporate Bonds State and local governments and companies usually raise money by issuing bonds to the public. Bonds offer lower risk than stocks. When a company is winding up, the bondholders are given first preference in the payment and settlement order. 3. Other debt funds Other debt funds include banking and PSU Funds, ultra-short duration funds, Dynamic Bonds, etc. You could always invest a lump sum in these debt-based mutual funds and opt for a Systematic Withdrawal Plan (SWP). This would ensure that along with the returns being generated on your investments, you would also get a monthly income from these investments. This investment option is one of the best options for older people who want a monthly income. 4. Liquid funds Invest in top-rated liquid funds to avoid loss of capital with a higher degree of safety for your primary investment. Also, when the market moves up, your investment performs better and generates higher returns in line with the market. 5. Dividend growth stocks Stocks are not as safe as cash, savings, or other debt-based instruments. But they are safer than options and futures. Dividend-paying stocks are considered safer than high-growth ones as they minimize volatility, if not eliminate it. You don't depend on the value of the stock as you get a dividend as a regular income on your investment. Apart from debt-based investments, you could also apply a staggered investment approach in equity-based mutual funds for a long-time horizon. A periodically rebalanced portfolio helps you minimize your portfolio volatility and ensures efficient capture of up-market and down-market movements even with equity exposure.  Take the help of an Investment Advisor who will guide you through goal-based planning and help you choose the investments that are most suitable to your goals and objectives and your risk appetite. FAQsWhat type of investments do risk-averse investors prefer?  Risk-averse investors typically prefer conservative investments with lower volatility and more predictable returns. These may include government bonds, high-quality corporate bonds, certificates of deposit (CDs), and stable dividend-paying stocks. These options aim to preserve capital while providing modest growth, aligning with the risk tolerance of such investors.   What are 3 high-risk investments?  Three high-risk investments include investing in individual stocks of volatile and speculative companies, trading in cryptocurrencies known for their price volatility, and investing in startups or early-stage ventures that have higher failure rates. These investments offer the potential for significant returns but also carry a substantial risk of loss.   Which investment is the riskiest for investors?  Investing in highly speculative and unproven assets like cryptocurrencies, especially in lesser-known or new coins, can be among the riskiest options for investors. The volatile nature of these assets can lead to substantial financial losses due to sudden price fluctuations and lack of regulation.   Which investment has the highest return without risk?  No investment offers guaranteed high returns without any risk. Investments with potentially higher returns often come with varying degrees of risk. While some low-risk options like government bonds or savings accounts provide stability, they usually offer lower returns. Diversification and a clear understanding of risk are important for any investment strategy.  TALK TO AN EXPERT
5 types of mutual funds

5 types of mutual funds

Investing in mutual funds for your child’s education is always advisable. First of all, it is a less stressful option than investing in direct equity stocks because that requires you to have in-depth knowledge of market trends and fluctuations. Secondly, with mutual funds, there are a variety of schemes you can opt for depending on a range of factors. These factors could include the time period for which you can invest before liquidating, the amount of money you can invest, the amount you require to secure the education fund, the level of risk you can take, and so on.  When it comes to building an education fund, here are the top 5 types of mutual funds you can choose from. 1. Large-cap mutual funds The defining characteristic of large-cap equity funds is the fact that these funds invest in the top 100 Indian companies that have the highest market value. Large-cap mutual funds can bring in impressive returns if you remain invested for a long period. If you are a person who wants to avoid taking very high risks with your investments and has decided to invest early for your child’s education, this is the way to go. The average returns rate has historically beaten that of Fixed Deposits and similar investment alternatives. SIP Mutual Fund Investment Read More 2. Mid-cap mutual funds Mid-cap funds invest in Indian companies that come in the next best 250 in terms of market value. These funds are for you if you are ready to take on a higher level of risk. Justifiably, the return rates also tend to get higher. One way to satiate the risk appetite of mid-cap equity funds is to let them season for at least 7-10 years. If your child is in primary or middle school, investing in such a scheme will generate a wholesome amount of wealth by the time they are ready to pursue a college education.   How to track Mutual Funds? Read More 3. Equity-linked saving schemes  Among the various perks of investing in mutual funds is the tax deduction benefit. Equity Linked Saving Schemes are devoted to enabling investors to save taxes, as the name also indicates.  The only catch here is that it has a compulsory lock-in period of at least 3 years. The aim here is to keep you invested longer to counter the risk level. If you can spare that amount of time, then ELSS is definitely a go-to. An added benefit is the historically high level of returns.   Mutual Funds to invest in Child Education Read More 4. Low-risk options  There is this whole myth surrounding mutual funds that they only come with a high-risk factor. On the contrary, a debt fund is also a kind of mutual fund that comes with low risk, so much so that it remains undisturbed by market fluctuations.  Debt funds are still a better option than Fixed Deposits because they can generate a higher percentage of returns. So, if you are not in favor of taking high risks, debt funds are a go-to.  5. Hybrid mutual funds  If you are confused about your investment options or even hesitant about risking too much, the answer to your problems is a hybrid mutual fund. This kind of fund is a mixture of equity as well as debt.  Hybrid mutual funds bring in the best of both worlds. They tend to generate good returns at low risk. FAQs What are the different types of mutual funds? Large-cap mutual funds Mid-cap mutual funds Equity-linked saving schemes Low-risk options Hybrid mutual funds Which type of MF is best? The best type of mutual fund is the Hybrid mutual fund. Which MF gives the highest return? Equity-linked mutual funds are considered the mutual funds with the highest returns. Conclusion There will be miscellaneous financial goals you will be required to set if you are a family person. One among these might be to straighten up the roadmap to your child’s academic and career aspirations. The first step is calculating your expected expenses with the help of an education cost calculator. The calculator will help you draw your investment map to fulfill your child's aspirations. The earlier you invest, the more prepared you will be to make critical decisions as the moment arrives. DisclaimerMutual funds are subject to market risks. The previous performance of a fund is no guarantee of future success. Please reach out to an expert to know more about the schemes before investing.
5 ways you can save up for your child’s education

5 ways you can save up for your child’s education

In this blog, we will explore the best ways to save for your child's education! Education in India is viewed as a stepping stone to a good future. ‍The race to get children into the best colleges is so keenly fought that every Indian parent can qualify for a role of an expert counselor. The “padhai karo, nahi tho achchi Naukri kaise lagegi” line is so often heard that it could very well replace the “so jao, varna gabbar aa jayega” line. ‍The belief that a good education will provide for a good life, is entrenched in the way we think. Indian parents are willing to go to lengths to provide their children with the best education and are ready to spend as much as it takes. Many parents start saving when their child is very young, to prepare for future college-related expenses. ‍In this blog, we will look at 5 avenues where Indian parents can consider investing their hard-earned money. 5 Best ways to save for your child's education Your child's education does not deserve to be compromised and here are some ways in which you can plan ahead and start taking small steps toward your child's college fund. ‍Let's get started. ‍1. Investing in Mutual Funds We're sure you have heard of the phrase 'mutual funds' Sahi hai! And when it comes to saving up for long-term investments, mutual funds definitely Sahi hai! ‍Investing in mutual funds as a way to build a corpus fund for a particular goal has gained a lot of interest in the past decade or so. Building a retirement fund or a home purchase fund is very common and a small percentage of investors are also parents keen on saving up for their child’s education. Investing in mutual funds is viewed as a potentially high-return investment with the risk involved since the returns on mutual funds are market-related. Markets have been extremely volatile in the recent past, but mutual funds should still form a large part of an education fund, considering the longer time horizon involved. It is possible to invest as per your risk preference and redemption is far easier when you need the money. With Systematic Investment Plans (SIPs) that give you the option of investing monthly, there is a possibility of better returns compared to one-time/lumpsum investment mutual funds, especially over longer investment periods.   INVEST IN MUTUAL FUNDS 2. Exchange Traded Funds (ETFs) ‍For those of you who are unfamiliar with the concept of ETF, it is basically a basket of securities that is traded on an exchange. They are similar to mutual funds. ‍Investing in ETFs can prove to be a successful investment option when saving up for your child's education. The reason is, that you will be investing your money in dollars, therefore, if your child aspires to pursue his/ her education abroad, the dollar holds more value than many other currencies. INVEST IN ETFs 3. Buying Insurance Plans Buying an insurance plan to provide income security to your child is also an option. Many of these so-called child plans provide insurance cover and also market-linked returns after a fixed tenure. ‍However, returns on these plans have been volatile and impacted by frequent regulatory changes. Also, child insurance policies may not be the best investment option, because they are bound by various terms and conditions. 4. Buying Real-Estate Yes, this holds true for parents trying to save up for their children even today. Real Estate is considered by many, to be a good long-term investment. Since the time horizon that parents should consider is 15-20 years, real estate investments are good to maintain a diversified portfolio. But, real estate has lost its sheen as an attractive investment option over the past decade or so, due to excess inventory and regulatory impacts. ‍There are a number of hassles when investing in real estate. Other than the declining returns – unreliable deals, possible legal tangles, and a high wait time when one wants to sell are some of the factors to consider if this is an investment option for you. 5. Investing in PPF In India, the Public Provident Fund, or PPF is the go-to option for many parents when investing in their child’s future. It is a low-risk option that is exempt from tax on the withdrawal. The returns are lower but predictable. However, there is a limit to the amount of money one can invest through this route – the upper limit is Rs. 1,50,000, annually. PPFs are also less suited when an investor is ready to take more risk and willing to invest in market-linked funds. FAQs How can we save for children's education? Ans. Investing in mutual funds, exchange-traded funds, buying insurance plans, buying real estate, investing in PPF.  What is a good educational plan? A solid educational plan will give your family and you a road map for your future educational and professional objectives. Although parents and kids are free to start as early as they'd like, planning for college and technical training at the middle school level is not too early.  What is the best savings plan for a child? Ans. Sukanya Samriddhi Scheme, Make Investments in Gold, Invest in Equity Mutual Funds, Investments via Recurring Deposits.   Why save for your child's education? Ans. You can avoid taking on significant debt to pay for your child's higher education by starting a savings plan early, even before they enter kindergarten.  What is the right time to start saving for your child's education? The right to start saving for your child's education is as early as possible. The earlier you begin, the better it will be for your investments, as you'll be able to take advantage of the power of compounding. Conclusion We hope now you have a decent idea of what investment options you could consider, as well as the pros and cons of each. In our next post, we will look at why we think mutual funds - through SIP mode - are a good way to build a corpus fund with the goal of educating your child. With this kind of education fund, you can stop worrying about the finances that are required to send your child to the college of her dreams. ‍Your investment today will gift your child a good life, tomorrow. Consult an expert advisor to get the right plan TALK TO AN EXPERT
whatsapp