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In the previous article, we discussed, how to plan for your child's bachelor's in Australia. In this article, we will discuss how to plan your child's bachelor's in engineering Raising a child involves both, financial and emotional considerations. Along with retail inflation, education inflation is constantly rising.   Once you've determined the potential cost of Engineering education and which university to enroll in, the next question is how much you'll have to pay each semester.  You may relieve your concerns about your children's academic expenditures by taking a few simple actions like -  Being specific with your goals,   Calculating the cost of a bachelor's in Engineering across universities, and  Choosing an investment option.  Now, let’s explore them in detail.  Why is it necessary to have an early financial plan for education?  Per an ASSOCHAM analysis, the cost of primary education has increased by 150% in the past 10 years. Regarding professional education, the average rise in tuition costs at the top three IIMs has been roughly 242% in the past 5 years. Parenthood in the twenty-first century is not an easy task. Education inflation is constantly increasing by more than 10% each year. Consequently, managing educational fees for children is becoming a huge financial concern for parents.   Therefore, if parents plan and take the appropriate measures slightly earlier in a child's life, covering his or her higher education expenditures will not be a difficult challenge.  How to calculate the future potential engineering course cost?  It is definitely required to calculate the future potential cost of the present Engineering tuition fees.   The compound interest method computes the future rate of the present educational tuition expenses. For example, suppose the present course price for a Bachelor in Engineering degree is Rs 10 lakh and the inflation rate is 10%.   In that case, the prospective cost after 15 years may be calculated as Target so, you can concentrate on savings accordingly. Here’s how you can calculate -  Current Amount * (1 + inflation rate) Tenure = 10,00,000*(1+0.10) ^15 = 55,00, 000 (approximately).   Now that the target amount has been established, it is easy to select the types of financial products that would assist you in building a repository of Rs 55 lakh.  Infographic to show calculations of future potential education costs. Estimate future education costs   Today, diverse educational websites assist in calculating or categorizing the cost of a bachelor's in Engineering degree. Create a record of the current cost of the Bachelor in Engineering degree. At this phase, it is important to pick whether the child will study in their home country or abroad.  As a result, when estimating the Bachelor's in Engineering degree fees, one must also consider the currency component. Only after the present cost is known, determining the probable future cost of the degree on the projected timeline will be easy. This will assist in determining an acceptable savings goal.   Another factor to consider at this stage is inflation. This is because, with education inflation growing at a rate of 10% or higher, inflation is likely to eat into your funds. First-year total course expenses at the world's top engineering colleges. World's Top Engineering Colleges City/ State Course expenses  Massachusetts Institute of Technology  Cambridge, USA  $ 69,000 Stanford University  Stanford, USA  $ 63,000 University of California - Berkeley Campus  Berkeley, USA  $ 48,000 University of Cambridge Cambridge, UK  $ 68,000 National University of Singapore  Singapore $ 30,000 Nanyang Technological University  Singapore $ 33,000 The University of Melbourne  Melbourne, Australia  $ 50,000 University of Toronto  Toronto, Canada  $ 57,000 McGill University Montreal, Canada  $ 32,000 HECTOR School of Engineering and Management, Karlsruhe Institute of Technology Karlsruhe, Germany  $ 20,000   Course expenses at India’s top engineering colleges: India’s Top Engineering Colleges Course expenses  IIT Kanpur  Rs 8.38 lakh IIT Kharagpur Rs 10.46 lakh IIT Roorkee  Rs 8.58 lakh IIT Guwahati  Rs 8.56 lakh IIT Madras  Rs 8.19 lakh IIT Delhi  Rs 8.66 lakh IIT Bombay  Rs 11.51 lakh IIT Indore  Rs 8.75 lakh IIT Varanasi  Rs 10.41 lakh VIT Vellore Rs 7.83 lakh   Plan an early investment option  According to anyone's financial product expertise and risk tolerance, one can choose equities, borrowing, or a combination of products, including a diversified portfolio, which includes both equity and debt elements.  A child's education requires a minimum of 15 years to invest. And, for extensive goals, equities are the ideal asset type to concentrate on. If you started saving early, in about 15 years, the multiplier impact in the power of compounding kicks in; the longer the planning range, the greater the multiplier advantage. To combat excessive inflation, it is critical to employ a multi-asset financial strategy as education expenses have soared.  Education costs have gone up during the previous ten years: How to plan your child's Bachelor in Engineering?  Going by the increase in education costs might be alarming. After all, they are not insignificant quantities. The goal should be to participate in a proper instrument regularly and in the appropriate amount, and then you'll be capable of building this portfolio.  Traditional products, such as fixed deposits, may not be sufficient to cover your child's educational needs. Other products, such as equities funds, stocks, and balanced funds, should be considered. You can pick the investing programs based on your investment horizon and timelines. Before establishing an education fund, you should carefully consider the characteristics, dangers, and terms and conditions.  The number of students enrolled for various disciplines of Bachelors In Engineering is increasing every year. It's becoming a definite need for the parent to start an early investment strategy.  Number of undergraduate engineering students enrolled in India in 2020, by discipline (in 1,000s) Conclusion  Education expenses are rising, and if you don't start saving early, supporting your child's Bachelor's in Engineering education may become difficult. You must begin by outlining specific goals, like the child's desired schooling and the associated fees.   This can assist you in determining how much you can set aside for savings after paying all of your monthly expenses. As the objective financial approach, it is prudent to limit your stock exposure to mitigate the risk of adverse market fluctuations. TALK TO AN EXPERT

Changing courses after admission is fairly common! In fact, US's National Center for Education Statistics shows that 80% of college students end up changing their majors. So, what should you do when your child changes their education dream?  Discussing the matter with your child is a great start. But the first step is helping them understand their new goals and preventing them from panicking. For instance, if your child does not want to pursue an engineering career in India and instead wants to opt for graphic design from a foreign country, then there are a lot of financial parameters you as a parent must consider.  First, switching from engineering in India to graphic designing abroad will increase the cost of education you have anticipated. It increases the educational budget dramatically, forcing you to evaluate the best course of action to help them achieve their dreams. Making the switch easy on your child for the future involves financial and emotional support! How do switch educational courses?  Many students switch their majors and courses after and before joining colleges. This is why there are many colleges that allow you to transfer from a course and college. Every college has its own procedure to help students follow their passion. Once your child has decided to change their subject, they can speak to the student services offers, fill out forms and start the application process for the new course. Transferring to a new course is like applying from the start and involves the same type of effort and motivation. How should parents support their children during the change of course?  Allowing your child to transfer or change their career is not easy but in the long, highly beneficial. Even if they think of re-enrolling their name in a different education course, consider the bigger picture. Here are the things you can do as a parent:  1. Have faith in them  A progressive educational dream enables them to serve on high versions of life. Besides, it lets them think out of the box. At times, a dream makes your child stronger. Thus, encouraging them is the beginning step to helping them accomplish their career goals.  One quick note: Allowing your child to fulfill their educational dream helps them discover hidden talents, thereby exploring more skills. So, if your youngster has rediscovered the ultimate dream career, have faith in them. 2. Show them your support  Spend time with them to figure out their career path. Always retain trust & lend your helping hand whenever possible. For instance, if your child wants to pursue music instead of engineering, ask them why. If you get a valid reason, show your support.   3. Encourage them  Even if they have been admitted to a course recently, what matters the most is their interest. So, you must encourage your youngster to learn about the course they want to pursue Source: pixabay What steps should you take for your child's promising career?  After communicating with your child regarding the shift in education, you must take some crucial steps:  Look for internal transfers where your child can change their course yet stay at that same institution  Help them look for affordable universities that offer the same course if your budget is restricted  Your child may opt for deferring for one or two semesters if they think they need time to process the next move  Consider checking the costs involved with the transfer fees (note that transfer fees might be hefty, and if your child wants to pursue a course from abroad, it becomes more expensive)  One quick note: Early saving can help parents to afford the expense. If you are not ready with early savings, you can always opt for education loans. What is Re-Balancing? Read More Why would your child wish to change their course?  Each parent wants their child to get into a prestigious university. But if your kid has switched to another educational domain, you must not show your disappointment. Each individual has a specific preference, and undermining their area of interest puts them in a burdensome situation.  If your child opts for a different education path, it should not dishearten you. Instead, always try and analyze what made them prepare for another field.   As a parent, understanding why they wish to change their career is your prime responsibility. Endless reasons lead scholars to change their educational paths. The wrong course selection may end their career growth. So, if your child wishes to change their education dream, it might be because:   They cannot see themselves pursuing a career in that area after acquiring admittance  They are wondering where the course will take them to  They want to pursue a different career opportunity  Upon enrolling the name in that particular course, they have discovered an area of their choice  After outlining the reason, you must guide your child in changing their educational path accordingly.  You cannot predict if your child will change their career, but you can save for it! Start a college fund regardless of what your child hopes to study today and enable their tomorrow with healthy savings. TALK TO AN EXPERT

School fees have experienced multiple hikes in the past two decades in India. Did you know that private schools in India raised the price of tuition fees by 10% during the coronavirus pandemic? Shocking, isn’t it?   But the tuition fees aren’t entirely responsible for the increased cost. Just as inflation affects the cost of tuition; it affects the costs of additional school fees that parents have to pay. What are these additional school fees? Let’s find out!  Additional school fees that parents must save for Tuition fees are the basic amount you need to pay for your education. As your child moves to the senior class, this amount tends to increase. Schools usually charge this amount once every three months. Although it is the most significant chunk of the total amount, it still doesn’t equal half of the total amount paid. It can be somewhere around 50% to 60% of the total fees being paid. https://www.youtube.com/watch?v=VJ0F69KTZgs Academic books and school uniforms  When your child goes to school for the first day, they are asked to get certain books by the prescribed authors. Most of the time, schools collaborate with a shop that provides all these requirements. Parents and students tend to buy these necessities from the prescribed store. Similarly, school uniforms can be expensive and can add to the total cost of sending your child to a good school.  Transportation costs  Transportation is the next area where you have to pay a lot. Fuel prices have been rising every single day. In India, most parents prefer sending their children to school on public transport such as vans, buses, etc. According to a survey conducted recently, transportation cost is the third-largest contributor to the overall educational expenses of your child. It can go 12% to 15% of the total fees.  Tips to avoid overspending Read More Infrastructure costs  Every parent wishes to send their child to a school that provides good learning and has a good infrastructure. All the schools’ primary goal is to build new buildings in the first 20 years of their establishment. The infrastructure would include new facilities, science labs, computer labs, games room, auditorium, etc. These infrastructure setups are some of the most vital parts of an educational institution. Schools charge parents maintenance and accessibility fees for these. It is usually taken once every year at the beginning of the session accounting for almost 10% to 12% of the total fees paid in the year’s first half.  Admission fees  When your child is new to a school, you should pay an additional amount in the name of admission fees. This amount accounts for a significant chunk of the total cost. According to a survey, it accounts for the fifth largest head regarding school fees. Furthermore, when your child moves from primary to senior classes, you are supposed to pay the re-admission fees for your child. This amount varies significantly from one school to the other. Usually, it accounts for 8% to 10% of the total fees paid.  Tax Benefits on Child Education Fees Read More Activity and laboratory fees  Schools try to make learning interactive for your child. For this purpose, they conduct various activities which can help your child learn in a better manner. There are certain activity rooms constructed in the building where children go to perform different actions. Also, schools conduct various activities, including school trips, sports days, annual functions, science days, etc. This amount is usually asked at the beginning of a session. Some schools also ask for the required amount right before conducting the activity.   The strategy differs from one school to the other. Laboratories are an integral component of a school. Every school has numerous labs, including computer, physics, chemistry, biology, etc. Students go to these labs to conduct experiments and learn in the process.   These were some of the additional fees that add up to the total fees paid by the parents. We cannot deny that all of these components are extremely important. But simultaneously, it gets heavy on the pocket of the parents who are tight on budget.   You may not be able to stop costs from rising but you can save for this cost. Save today and give your child the future they dream of!  FAQs What are the additional school fees parents need to save for? Additional fees include academic books, school uniforms, transportation costs, infrastructure fees, admission fees, activity, and laboratory fees. How much do academic books and school uniforms contribute to the total fees? Academic books and uniforms add to the total cost of sending a child to school, and their expenses vary depending on the prescribed requirements. What percentage of the total fees does transportation cost contribute to? Transportation costs typically account for 12% to 15% of the overall educational expenses for a child. What are infrastructure costs, and how much do they contribute to the total fees? Infrastructure costs cover maintenance and accessibility fees for school facilities, and they usually make up around 10% to 12% of the total fees.

In the previous article, we discussed AUM in mutual funds in this article, we will discuss what is foreign investment. Financial institutions and individuals wishing to diversify their investment portfolios seek multiple ways to earn outside income. The increasing inclination toward stocks, IPOs, and bonds investments sparked the individual’s interest. They keep up with the latest investment updates.   Apart from this, Foreign Investment is considered a growth catalyst for India. Companies exploring opportunities for business expansion internationally benefit from it the most. Goldman Sachs, J.P Morgan, and Morgan Stanley are some leading international investors.   Some businesses seek opportunities to capitalize on relatively economic labor and production costs. Likewise, Indian companies seek relaxation from a tax perspective internationally.   There is a lot to know & understand about investments. The blog discusses nearly every nut and bolt of foreign investments.   If you are an active or ambitious investor seeking opportunities to invest in foreign stocks, this blog is worth a read. Let’s begin with the first things first.  What does foreign investment imply?   Foreign investment implies an investment of a native business or a company in the assets of an international company. It generally includes long-term physical investments made by an Indian company in a foreign company, listed on the stock exchange.   Foreign investment is of two types: Direct and Indirect. It involves cash flow transactions between countries. If the investor's stake is higher in a company, he shares the right to regulate the company’s decisions. These are long-term physical investments like - bridges, damn, and infrastructure in foreign countries.    For example, if a person or a business holds (a 75%) share in the company, they share the larger portion of the company’s equities available in the market. They can regulate and dominate the company’s decisions.   So, are you now clear about – What is the foreign investment?   Let’s move on to the most asked query under this.  What are the most popular types of overseas investment opportunities?  Foreign investments have two main categories- direct and indirect investments.  Direct Investments   Foreign direct investments are the equipment, plant, or factory an investor purchases in a foreign country.  Indirect Investments   Indirect investments imply purchasing stocks and equities of foreign companies listed in their respective countries.   Direct investments are much in demand than indirect investments owing to the long-term benefit prospect. The value of these tangible assets multiplies more than liquid assets. These boost the country’s economic status over time.  In contrast, indirect investments are short-lived. These are time-sensitive investments that do not share any future scope or value.    Given this, who can legally invest in these assets? Let’s find out.  source: pixabay Who is eligible for foreign investment?   Most individuals are anxiously googling-   “What is foreign investment?”  “How does the foreign investment work?”  There is so much to explore on the topic. But before that, one should be knowledgeable about the eligibility criteria to invest internationally.   If you are considering an overseas investment, check whether you meet the below criteria set by RBI (Reserve Bank of India):  Residents, corporate entities, and partnership companies registered under the Indian Partnership Act of 1932 are eligible for foreign investments.   These individuals can invest in foreign ventures or wholly owned subsidies.   Residents may invest according to Q3 of the law.  How can residents invest in foreign companies or ventures?   Residents can invest in foreign investments without any restrictions or limits. The companies they tend to invest in must have a 10% share in an Indian company listed on a stock exchange in India. It should be listed as of 1st January as the investment year.   How are foreign investments beneficial for the Indian economy?   FDI occurs when an individual or a company holds 10% dominance in a foreign asset or company. If an individual or business owns less than that, IMF deems it as a part of the stock portfolio. It might not grant complete control over the company’s politics but a percentage to investors.   Foreign direct investment grants power and dominance to influence the foreign firm’s operations. Foreign investment can prove beneficial for the existing economy.   1. Funding and expertise   Developing nations require the apt tangent and growth momentum to utilize their potential. Corporations operating in these countries need the expertise, guidance, and funding to expand business operations. Here Foreign investment proves profitable in upscaling a brand and nurturing its prospects.   As per research, “Global FDI collapsed in 2020 and plummeted from $1.5 trillion in 2019 to $859 billion”. It is the lowest ever recorded since 2008.  However, as per recent stats by Hindustan Times, “ The FDI inflow has increased by 23% after COVID blues. March 2020-2022 recorded an inflow of $171.84 billion inflow.”  It stands in steep contrast to $141.10 billion between February 2018-and 2020.  Thus, investments in the country can prove a breakthrough in economic terms.   2. Increases employment opportunities    What follows with growth is personal development.   India is facing the harshest blow post-COVID-19, she needs a comeback. With businesses shutting down, the country is losing momentum. FDI can breathe in the needed inspiration.   However, India can prosper independently, but a mere international push can open up a wide growth arena for the country and its people. FDI help create employment opportunities, especially in the manufacturing industry. It not only boosts the economy but makes its people independent.  3. Access to leading-edge tools and technology  To compete in the international market and gain an edge, India must optimize its economic structure. Foreign investment is one of the panaceas that share the potential to rationalize it.    It can promote access to advanced tools and technology that help streamline a business process and economic growth.  These are some popular growth opportunities that foreign investment can provide.  Which country topped the FDI index of India in 2022?   Singapore topped the FDI index with a share of 27%. It is followed by big giants US (18%) and Mauritius (16%) respectively.   What does FDI cover for India in the future?   As per Business Standard, “India recorded the highest ever annual FDI of $83.57 billion in the year 2021-22.” It reveals a progressive India in the coming years.   Furthermore, the “FDI to GDP ratio may rise by 2025.” The recent shift in FDI structure and the “Atmanirbhar Bharat” policy provoked the estimation.   Conclusion  It is evident from the listed facts and figures that foreign investment can ensure a profitable shift in the Indian economy.   If you are still confused regarding “What is the foreign investment?”, detailed research and analysis will help you gauge the importance of FDI from the Indian perspective. Consult an expert advisor to get the right plan for you   TALK TO AN EXPERT

“ETF trading at a premium?” or "What's the deal with ETF B selling at a loss?" Y. These are some questions you are likely to hear whenever advisors talk about ETFs. You can understand this better if you understand the different costs of ETF transactions.  ETFs have multiple "prices," as perplexing as they may appear. There's the actual value, determined by the net asset value (NAV) after each day and the intraday NAV (iNAV) in the midst.   The NAV of bond ETFs is set by the bid prices of the portfolio's underlying bonds. The NAV of an equity ETF is given by the most recent trading prices of the underlying stocks. The NAV is calculated based on the previous trading day's closing.  However, since ETFs are actively traded on a stock exchange, they have a current market price which may differ from their actual value. This market price will determine the premiums and discounts.   The ETF's latest traded price determines the market price of both equities and bond ETFs. For a stock ETF, that price will often fall within the bid-ask spread of the underlying basket of securities, but bond ETFs would more likely trade at a premium because the NAV is set at the lesser bid price.  If the price of an ETF is higher than its determined NAV, it trades at a "premium." In contrast, if the ETF's price is below its NAV, it trades at a "discount."  ETF prices and NAV are often closed in relatively calm markets. When stock markets become choppy, however, ETFs respond swiftly to shifts in market sentiment, whereas NAV may take longer to adjust, leading to premiums and discounts.  Let's look at it illustratively,   The market price of an equity ETF will often fluctuate within the basket's bid-ask spread. When the ETF's supply and demand are roughly balanced, trading takes place on the secondary market.   The ETF's market price may be momentarily pushed outside the limitations of the fundamental basket when there are more buyers and sellers in the market. Traders might profit from the gap between the ETF's market rate and the prices of the underlying securities if the ETF trades at a significant premium or discount.  When this occurs, the market maker can go to the primary market to deal with the ETF sponsor, issuing new ETF units when prices increase and redeeming ETF units when supply is low.   The primary market aids in re-aligning the ETF market price with the NAV. However, because the expenses are determined by the creation/redemption process, the ETF would often trade at a higher premium or discount to mirror those costs until the two-way order flow in the ETF recovers.  Since the ETF and its fundamental securities are two separate liquidity pools that are only loosely connected, this can happen at any time during the trading day.   Suppose bullish investors start bidding up an ETF more aggressively than its underlying securities. In that case, the ETF's price may climb faster than the underlying securities' price and, as a result, trade at a premium.   Similarly, if bearish investors sell an ETF aggressively, it may trade at a discount to its underlying stocks. Alternatively, premiums or discounts may develop if the ETF and its constituent stocks trade on exchanges in separate time zones.  Pricing transparency is offered through ETFs, which allow you to acquire the intraday price of any asset type. The problem is that the trade costs are explicit unlike mutual funds, they are not reduced to a single number by the end of the trading day.  It's critical to keep trading expenses in mind, especially in less liquid markets, and to resist following the herd, which can lead to acquiring at a markup and selling at a discount.   Despite their "designed for speed" nature, ETFs are still the best choice for long-term exposure to specific asset classes. FAQs What is the difference between the actual value and the market price of an ETF? ETFs have an actual value determined by the net asset value (NAV) based on the underlying securities prices. The market price, on the other hand, is influenced by supply and demand on the stock exchange and may differ from the actual value, leading to premiums or discounts. What does it mean when an ETF trades at a premium or a discount? If an ETF's market price is higher than its determined NAV, it trades at a premium. Conversely, if the ETF's market price is below its NAV, it trades at a discount. Premiums and discounts occur due to the interplay of supply and demand in the market. Why do premiums and discounts occur in ETF trading? ETFs respond swiftly to shifts in market sentiment, causing their market price to fluctuate more quickly than the NAV. In choppy markets, this can lead to premiums or discounts as the market price adjusts while the NAV may take longer to catch up. Consult an expert advisor to get the right plan for you  TALK TO AN EXPERT

Previously we discussed 5 things to consider before sending your child abroad for education. In this article, we will discuss how to plan your child's bachelors in Australia. Are you planning your child's bachelor's in Australia? Why wouldn’t you? Australia's excellent educational system, laid-back nature, with high living standards make it a perfect choice for parents and students alike. https://www.youtube.com/watch?v=MwQWKYxxJ8o How prospective is Australia in pursuing a bachelor's education?  The unique opportunities of studying bachelor's in Australia extend beyond the classroom program. It is about getting an excellent culture for study and work. There are great placement opportunities with average to good salary packages. There is also the flexibility of part or full-time study programs.   Given the job opportunities and thriving conditions in sectors like finance, tourism, education, agriculture, and construction in Australia, students have ample options to choose from for jobs.    The post-pandemic reforms introduced by the Australian government like extending student work hours, offering students to return to Australia to find work on their work permits as well as increasing the tenure of post-work visa has made Australia can an excellent place to not only study but to build a career.   https://www.youtube.com/watch?v=Ew2MC3RCo68 Let's look at some prominent reasons to choose Australia for undergraduate studies. University offers academic excellence   Australia has some of the best universities, offering top education systems for international students. The quality of education and commitment of faculty is evident in the international ranking that the universities get.     Internships and placements are advantageous   Most study programs in Australia offer internships or placement opportunities. With unique options, students get a chance to have better experiences and discover advanced jobs or career opportunities. It gives way to better understanding skills and improves communication among aspirants.   The study program with scop for an internship is beneficial as it gives students a work experience with practical experience. From this, students get an understanding of work-life culture. They can learn how to implement their study of course program into the practical field. Therefore, internships are golden scopes for students to acquire knowledge, apply it in-field, and eventually hone their skills.   That being said, choosing a bachelor's program that offers either an internship or good placement opportunities for students is better. Discover a welcoming university life   Australia is the right place to provide adequate support to international students. Be it about getting a job, finding accommodation, networking, and others, it has plenty of options.   Therefore, Australia has a welcoming environment for international students, helping them adjust to the new education system. In addition, it helps students organize and get accommodation easily.   The universities focus on a problem-based learning approach, helping students become independent learners. The class patterns are flexible, and the study approach makes it easy for the students to cope with the educational system.   source: pixabay What is the cost of living in Australia?  Before packing your child’s bags, make sure you are aware of the study program packages in Australia and the cost of living. Top-class education isn’t cheap and so check its scholarship options available for international students. There are eligibility criteria to avail of scholarships, and one should check them before applying.   1. Tuition fees   The Australian universities’ tuition fees are among the highest in the world. For a bachelor’s degree, it is 20000 and 45000 AUD yearly. The private ones are more costly and may not offer scholarship benefits.   2. Accommodation fees   The on-campus accommodation is affordable, which starts at around 440 AUD monthly than any other accommodation in Australia. The rent of a place may take around 1300 AUD to 1750 AUD. Even the monthly grocery costs are around 300 to 600 AUD. So, the overall living costs are approximately 1200 AUD monthly in some cities, which can rise to 1500 AUD in other cities.   Plan your expenses, and make sure you have some money left for monthly savings. When planning to send your child for a bachelor’s in Australia, it is important to have this in mind.   The Hidden Cost of Education in Australia Read More How do financially plan for your child’s bachelor's?  Whether you pick Australia or any other country for your child’s bachelor's, you need to start saving. The average cost of education is rising at an unprecedented rate and the only way to meet this cost is to start saving aggressively!   Today, the yearly expense to support your child in Australia can be anywhere between Rs. 10-20 lakhs. This cost greatly varies based on your child’s needs and lifestyle, however, it’s important to remember that your child may have to pay double this amount when it’s their time to study in the country due to education inflation.   So, calculate in advance how much you need to send your child to Australia, create a financial plan with the help of an expert, and start saving via SIPs to ensure you have the funds you need when it’s time to send your child to the land of opportunity!  FAQs How do I start planning my child's bachelor's degree in Australia? Start by researching universities and courses in Australia. Consider factors such as reputation, rankings, course offerings, and tuition fees. Look into admission requirements, including English language proficiency tests. Plan for accommodation, student visas, and finances. Seek guidance from education consultants or online resources. What are the steps to apply to universities in Australia? Check application deadlines and gather required documents, including academic transcripts, English language test scores, and recommendation letters. Submit online applications through the university's admission portal. Pay the application fees and monitor communication from the university regarding the application status and any additional requirements. How can I support my child's transition to studying in Australia? Help your child with pre-departure preparations, such as obtaining a student visa, booking flights, and organizing travel insurance. Familiarise them with Australian culture, lifestyle, and local customs. Connect with university orientation programs and student support services. Encourage open communication and emotional support throughout their journey. TALK TO AN EXPERT

Individuals' interest in index funds is increasing due to an overarching desire to compound and capitalize on wealth.   Amid constant volatility in markets, it has become imperative to explore investment ways that dilute any potential risks of losing on high-return investments.  This is why people are incredibly inclined toward building different buckets instead of leaving all eggs in a single basket. In investment terms, diversifying the portfolio by investing in different equities and sectors is one of the best techniques to evade market risks.  It is where investment in index funds emerges as a market dominator in the current Indian scenario.   What are Index funds?  Index funds work differently from active funds. These funds are appropriate for those wishing to evade risk and diversify investment. One can only manage the investments passively.   It implies that a person cannot invest directly in an index but through mutual funds called “Index Funds.” A manager or investor invests in the same equities as present in the index.  The market index leverages a company’s market capitalization to determine the total weightage of securities in the index. The total value of the company shares is equivalent to the number of outstanding shares.  As per Economic Times, “Since February 2020, the number of index funds has surged 144% and the assets managed by these investors grew by 590%”.   As a part of the ongoing research by the Economic Times, “The number of index funds grew from 32 in February to 78 in July 2020”. ETF draws the investor’s interest during this phase.  https://www.youtube.com/shorts/FlrxZAJjemE Who should invest in index funds?   Investments in index funds are profitable only for a selective bunch. If you meet the below investment behavior, index funds are just right for you:  You wish to evade any risks associated with investment/slash investment risks  You want to diversify your portfolio by starting and investing a low amount  You prefer to invest only a fixed amount in a particular index fund  You would like to invest in multiple investment forms – like real estate, gold, equities  Early savings help in child's future Read More How to invest in index funds?   Index Funds are a type of investment vehicle like mutual funds and exchange-traded funds that help achieve results on specific indexes. Here is how you can invest in index funds:   1. Figure out your investment goals  Before investing, it is important to ensure clarity over the present and future financial goals.   When do you want to retire?   How long till you achieve your financial goals?   What do your risk appetite and budget look like?   2. Pick one index to invest in  Index Funds, apart from helping diversify the investment, track broad sectors like large capitals and emerging markets. Different index types serve different purposes.   While deciding on the index to invest in, analyze the below parameter:   Which industry do you share knowledge in and is growing lately?   How much is your risk tolerance?   What are the company size and market capitalization?  What index fund would you find comfortable investing in (stocks, bonds, or commodities)?   Highlighting and improvising on these parameters will help you choose the right index fund. It will help build a growth foundation.   3. Decide the index funds to invest in  Each fund and company has different marketing capital, growth potential, and shares available to invest in. The best research method is by researching Asset Under Management (AUM). It is the total investment value that an expert manages on the client's behalf. Analyze the AUM index of a given fund and the ease of trading.  Here are some best index funds for 2022:  IDBI Nifty Junior Index Fund Growth  ICICI Prudential Nifty 50 Index Plan Direct-Growth  UTI Nifty Next 50 Index Fund Direct-Growth  As per ClearTax - “IDBI Nifty Junior Index Fund Direct Plan-Growth, is one of the most profitable index funds in India."  Index funds companies can vary in their short and long-term costs.  4. Sign up for a brokerage account   After signing up for a brokerage account, utilize the above points to figure out the best index funds to invest in. Here, an investment expert may help you meet the purpose according to your financial goals.   In the initial stage, having expert backing works well. An expert can help you develop an investment strategy that aligns with personalized financial goals. It makes investment in index funds a smooth journey.   5. Manage investments cautiously   It is important to manage and check potential opportunities for growth. Start with small investments and set up automatic monthly deductions. Monitor the fluctuations and returns throughout the year. Modify the strategy if the market demands.  While Index funds are a great way to start investing, it's good to remember no market is without risks. FAQs What are the benefits of investing in index funds in India? Index funds offer benefits such as broad market exposure, diversification, low costs, and simplicity. They track a specific index, like the Nifty 50 or BSE Sensex, providing exposure to multiple stocks. Their passive nature keeps costs lower compared to actively managed funds. Index funds are easy to understand and suitable for long-term investors seeking market returns. How can I choose the right index fund in India? Consider factors like the index being tracked, fund performance, expense ratio, and fund house reputation. Look for funds with a low tracking error and a consistent track record. Evaluate the fund's size and liquidity. Read the scheme's offer documents, prospectus, and seek expert opinions to make an informed decision. What are the risks associated with investing in index funds in India? Index funds are subject to market risks and fluctuations. Their returns are influenced by the performance of the underlying index. If the index experiences a downturn, the fund's value will also decline. Additionally, tracking errors may occur, resulting in deviations from the index's performance. It's important to understand these risks and have a long-term investment horizon when investing in index funds. Consult an expert advisor to get the right plan for you  TALK TO AN EXPERT

‘Har Rishta Bola, Mere Naam Ki Coca-Cola' - is one of the most successful marketing strategies and ads India has ever seen. Every Indian has had Coca-Cola in his life and gone back for more!   This MNC has been present worldwide and has been doing great business since its inception and launch on 29th January 1892. The Coca-Cola Company (KO) is the most valuable soft drink brand in the world, with worldwide revenues touching 38.66 billion US dollars!  Coca-Cola is also available in nearly every country on the earth. Primarily due to its broad and comprehensive distribution system that ensures that the company's products reach their end customers quickly and efficiently.   It is also a brand with a high level of worldwide brand awareness. Customers worldwide trust the company and are more likely to choose it over its competitors like Pepsi, Keurig Dr. Pepper, or Red Bull. A highly successful marketing campaign has bolstered Coca-Cola.  While Coca-Cola continues to be the most common choice, the company also owns other well-known products and brands such as Sprite, Fanta, and Minute Maid which have been a huge success in the Indian subcontinent.   The company has experimented with minimal sugar and nil sugar products like Coke-Zero, and created beverages like iced teas and flavored water, in response to the rising demand for healthier beverages.  The Coca-Cola Company's shares (KO) are available for investment on the New York Stock Exchange, with all values in US dollars. Let's first look at some basic stuff associated with the company.  Latest market close$62.5752-week range50.17 - 63.02Dividend yield 2.81%Earnings per share$2.25Beta0.66Market Capitalization$ 272 billionAverage Volume (3m)19,665,333PE ratio 27.75 There are three ways in which you can invest in Coca-Cola from India  1. The direct way  You can trade in Coca-Cola from India by registering on a US brokerage account using apps that offer US stocks or foreign investment opportunities. You can either invest directly through its apps through a minimal brokerage or zero brokerage. All you need is a bank account, your Aadhar card/proof of address and your PAN card to get started.    2. The ETF way  Investing via ETFs in Coca-Cola is another way to invest in the company from India. ETF stands for Exchange-traded fund. It is a group of stocks and bonds compiled by ETF managers to help you invest more efficiently.    ETFs are similar to Mutual Funds and they are managed differently. ETFs are traded on a stock exchange like stocks and are a more efficient way to buy shares of big companies and an affordable way to enter a highly competitive market.   Some ETFs like Consumer Staples Select Sector SPDR Fund ETF, contain Coca-Cola as one of its top holdings. The ETF's holdings include food & essentials, retail, household items, food products, and other industries. You can easily invest in these through different investment platforms from the comfort of your home with no physical paperwork.    Another option for investing in Coca-Cola through investing in S&P 500. For instance, Coca-Cola is a part of the Motilal Oswal S&P 500 Index Fund; by investing in this fund, you can be a shareholder of Coca-Cola!  An exciting fact is that in order to invest in the above ETFs, you don’t need to create a US account! However, if you are planning on investing in MNCs, there are some benefits of creating a USA brokerage account so that you can track errors that directly affect your returns.   3. The Mutual Fund way  Mutual Fund is the third way to invest in Coca-Cola from India! There are various mutual funds that invest in a large set of companies. You can choose the kind you wish to profit from. There are no caps on investment in Indian rupees, there is no investment restriction.   Coca-Cola is included in several mutual funds, such as the ICICI Prudential US Bluechip Equity Fund but the exposure to this company is largely limited and the expense ratio can affect your returns.  The expense ratio is problematic because investors have to pay an additional expense charged by core global schemes in addition to the administration fee charged by Indian fund houses.      These are some ways to invest in Coca-Cola from India! The company is a global mammoth and being an investor with them comes with its own highs and lows. So, before you start investing your money, understand the risks involved before jumping the gun. FAQs How can I stay updated on Coca-Cola's performance and financial news? To stay updated on Coca-Cola's performance and financial news, you can utilize various sources. These include official company announcements, investor relations websites, financial news portals, business news channels, and reputable financial publications. Regularly monitoring these sources will provide you with valuable insights into Coca-Cola's financial health, strategic developments, and market trends, allowing you to make informed investment decisions. Are there any risks associated with investing in Coca-Cola from India? Like any investment, investing in Coca-Cola from India carries certain risks. These risks include fluctuations in the stock market, changes in consumer preferences, competitive pressures, currency exchange rate risks, and geopolitical factors. It's important to conduct thorough research, diversify your investment portfolio, and consider your risk tolerance before investing in any company, including Coca-Cola. Can I directly purchase Coca-Cola stocks on the Indian stock market? No, you cannot directly purchase Coca-Cola stocks on the Indian stock market. Coca-Cola is a multinational company, and its stocks are listed on foreign stock exchanges like the New York Stock Exchange (NYSE). However, you can invest in Coca-Cola indirectly through mutual funds or ETFs that include Coca-Cola stocks or by considering international investment platforms like EduFund that allow Indian investors to trade in foreign markets.

44% of Indian parents wish to send their kids abroad for further studies. This is a life-changing decision that should not be taken lightly. Here are five things to consider before sending your child abroad. 1. Finding a right course  Numerous universities offer a wide range of courses that have a high demand in the professional world. It is a daunting task to find the perfect course for your child. You must understand what your child wants to pursue in such a situation.   Once you are clear with your child’s wish, start searching for universities that are known for that program. Make a list of it, and understand the ROI and the level of exposure. There are specific points that you must keep in mind while choosing the course, which is:  Subject covered in the particular course  Campus Location of the Institute  Career Prospects of the Course  Demand in the Industry  Try to ensure that these points align to improve your child's career growth and environment.   2. Comparing and choosing the right university  Once you have a list of universities, you should shortlist the college that fits perfectly with your child’s interest and growth. For proper analysis, you must keep a tab on your budget and the university’s location. Furthermore, analyze the faculty qualifications, student-teacher ratio, number of students in a class, and so on.  Although it may seem to be a challenging task, make sure you adhere to all of them. You can always reach out to experts who can guide you in your quest!   Source: pixabay 3. Selecting the right country  The selection of the correct country is made based on various factors. It is usually challenging to list a particular country’s pros and cons. Some of the significant factors that you need to keep in mind while selecting the country are:  Types of Universities  Lifestyle and Culture  City of Town of the Country  Job Opportunities  Safety  Budget  Quite often, parents ignore the cost aspect when deciding which country is the best place for their child. This is a huge foresight because it can throw you off budget and increase your spending by lakhs!   4. Know all deadlines and costs of applying   The application process can be daunting for first-timers. Every university has its own criteria for admissions. Ideally, the application process takes six to eight months to complete and requires the candidate to pay for application fees, exam fees, student stay deposits as well as fulfill visa requirements, etc. These require thorough planning and spending so it’s always good to prepare for every expense in advance to help your child.   To understand the different costs involved in the application process, you can always reach out to professionals and get details of the actual breakup of the total amount required. This can help you can manage your funds.  Source: Pixabay 5. Safety of your child  The safety of your child holds paramount importance. Ukraine - Russian war and its spread of COVID-19 have severely impacted the way we think of medical emergencies. As a parent, you have the right to ensure your child lives in a safe environment. So do your due research on the country, your child’s accommodation facilities, healthcare facilities, town or city area, and the cost required for an average lifestyle, and buy health insurance to secure your child’s needs.    Reputed institutions have strict guidelines and protocols for the safety of their students. Another primary concern revolves around robbery and theft. You must train your children about safety measures and digital payments. Always invest some amount of money in travel insurance. Countries have different levels of crime rates. Read the statistics given online and choose wisely.   From selecting the right course to safety, parents need to consider all these factors before sending their child to a foreign land. Not considering these things can increase your financial as well as mental stress so try to prepare for every eventuality to give your child the best study abroad ever! FAQs How can I financially plan for my child's education abroad? Financial planning is crucial when sending your child abroad. Research the cost of tuition, accommodation, and living expenses in the chosen destination. You can use the EduFund Cost Calculator for that. Explore scholarships, grants, and financial aid options available for international students. Set a budget and encourage your child to manage their finances responsibly. Consider opening a bank account in the host country for easier transactions. Look into education loans specifically designed for studying abroad. You can explore EduFund Scholarships for the same. Consult with a financial advisor to understand the tax implications and any additional financial considerations when sending money abroad. What factors should I consider when sending my child abroad? Consider the destination's safety and security, the quality of education, cultural and language differences, the cost of living, and the support available for international students. Research the country's crime rates, political stability, and the healthcare system. Evaluate the reputation and ranking of universities, available scholarships, and career prospects. Understand the cultural norms, language barriers, and the support services offered by the institution for international students. Lastly, calculate the cost of tuition, accommodation, and living expenses to ensure it is affordable for your family. What steps should I take to ensure my child's academic success while studying abroad? Emphasize the importance of effective time management and organization skills. Encourage them to familiarize themselves with the curriculum, course requirements, and assignment deadlines. Advise them to actively participate in class, ask questions, and seek clarification when needed. Help them create a study routine and find suitable study environments.

The cost of education increases every year but this cost is not uniform; there are some degrees that cost more than others. Some expensive degrees like MBBS, MBA, Psychology, Law, and Dental cost up to a crore; this includes tuition costs, living expenses as well as miscellaneous costs. This is because of the popularity, high competition, limited seats, university ranking and location as well as the tremendous ROI attached to the courses. Pursuing these degrees from top-tier universities and countries like the US or the UK can cost you almost a crore of rupees!   So how should you as parents plan to fund these expensive degrees? Here are a few financial planning tips that will help you take charge of your funds and help your child pursue her dream career without any stress! https://www.youtube.com/watch?v=tdwqQH0xkFw Financial planning tips Tip 1. Start early! While a corpus of Rs. 1 Cr. can sound daunting, it is achievable if you have 15 to 18 years in hand. That’s right. If you have big professional career dreams for your children, you must start saving for their education as soon as they are born. Some couples start even before the child arrives. After all, the earlier you start, the easier it will be to put the funds together.   Investment Plan for Girl Child Read More Tip 2. Define your corpus  Always work on your goals on the higher side. The cost of education is going up by almost 10-12% a year, so allow for these growth rates, and for fluctuations in currency rates. It is difficult to predict international situations two decades from now, so you must prepare for the worst, and work with higher numbers. This will save you from having to dip into your retirement savings at the time of your child’s education.   Tip 3. Do the number-crunching  This is part that most people who are uncomfortable with finance dislike. Once you have fixed the financial goal, break it down into years and months. That is the only way you will be able to build that corpus. Define how much money you will need and explore the returns options like equities that can over time give you up to 15% returns. Also, understand the risks involved. Be warned: stay away from get-rich-quick schemes, most people lose even their capital in such experiments.   Source: pixabay Tip 4: Be consistent  Remember, Rome was not built in a day. It took centuries. Luckily, you will have to work consistently only for a couple of decades. Just set up your SIPs in mutual funds, and equities, and start putting money away in Provident Funds and Bonds. While the returns on the latter are lower, these investments add stability to your portfolio. And do it month after month for the entire duration. Do not stop, do not opt out, and do not withdraw these funds for unplanned expenses like a foreign trip or a big-ticket vehicle. Stay focused on your corpus goal.   Tip 5. Go for high-return investments  The longer your investment horizon, the greater the risk appetite you can have. You can consider a 65/35 mix or even a 70/30 mix with a higher percentage being invested in equities and other high-return instruments. Do keep in mind that higher returns are usually coupled with high risk, and you must regularly balance your portfolio to avoid losing your capital.   Tip 6. Monitor your investments  All investments must be regularly monitored. Anything that is underperforming, you must get rid of and replace it with a better-performing option. But don’t try to time the market, keep your parameters clearly defined when you start your investments. This will keep you from making unnecessary mistakes in the market.   Source: pixabay Tip 7. Seek help with your investments   As the time for your child’s college admission comes closer, there are a lot of decisions you have to make to secure your child’s funds. Like turning your high-risk, high-return investment into safer options to protect your investments and corpus from any sudden market downturns, closer to the time of admission. This is an important aspect to consider as you cannot shift the time of admission. Though before taking any of these decisions, it is wise to consult a financial planner to safeguard your interests.  What we have shared here is a broad roadmap that will enable you to build the Rs. 1 Cr. corpus and fund any of the 5 expensive degrees your child may choose to pursue. While doing your initial calculations, also keep in mind that most of these courses also have entrance exams.   Preparation for these exams can start 2-3 years in advance and the coaching for the same is also expensive. You must consider having access to your funds well in time, to avoid financial stress at the last minute.   With planning, discipline, and consistency, you will be able to achieve almost any financial goal that you set for yourself. The key is to get your plans down on paper/on the computer and start working on them. So go ahead and start planning today! FAQs How can I start financial planning as a parent? Start by setting financial goals, creating a budget, and tracking expenses. Build an emergency fund and prioritize saving for your child's education and future expenses. Consider life and health insurance coverage. Consult a financial advisor for personalized guidance. How can I teach my child about money management? Introduce age-appropriate financial concepts. Encourage saving, budgeting, and goal-setting. Involve them in family financial discussions and let them earn and manage their own money. Model responsible financial behaviors and provide guidance along the way. What are some ways for me to save for my child's education? Explore education-specific investment options like Sukanya Samriddhi Yojana (SSY) for girls, 529 plans, and education loans. Start early, contribute regularly, and consider inflation. Research scholarships and grants. Consult a financial advisor for tailored strategies. Consult an expert advisor to get the right plan for you  TALK TO AN EXPERT

61% of Indian parents regret not saving sooner for their child’s education according to the HSBC Value of Education Report. So that you don’t have to shoulder this guilt, here are some of the key dos and don'ts of saving for child education. Do’s of saving for your child’s education 1. Find out how much higher education costs Before you start saving, know what and where your child wants to study. When you are planning to send your child overseas, you must be fairly certain of the choices being made in terms of a stream of study and the preferred country. The cost of education in Germany, for instance, is very low, as university courses are often government-funded. On the other hand, a 4-year undergrad course in the US can easily cost you Rs. 1 crore, depending on the college and its location. Getting an accurate assessment of the school can help you define your actual savings. Find the best education loan for a child's education Read More 2. Speak to counselors to better understand all the expenses involved When you make plans to send your child overseas, you are heading into a phase of your life that demands substantial funds and even some unplanned expenses. Find a counselor whom you trust, and spend time understanding all that goes into sending your child overseas. Also, keep in mind, that the expenses for higher education overseas begin long before your child even fills out the application form. So, make sure your account for all of that. 3. Starting early is the key to good savings Truth be told, the best time to start putting money away for your child’s education is as soon as the little bundle arrives. While most new parents are in a bubble of happiness when a baby is born, it is important to keep your financial head on your shoulders and plan out a saving mechanism that will put your money away automatically. The less you have to think about it, the more effectively you will do it. Also review your education fund every couple of years, tracking the current college rates, inflation, and your own life situations. This will help in recalibrating your savings procedures. https://www.youtube.com/watch?v=sNqwEZbjEvc 4. Put your money in high-growth investment options if you have the time If you are looking at a 15–20-year horizon, you should consider investing in Equities for the high growth that capital markets offer over the long term. The shorter your term, the lesser risk you will have to take for your investments. In the case of a 5–9-year duration, Mutual Funds are a good option and in the case of 4-5 years, you must ensure the safety of your capital. Debt Funds are your safest option. While the risk is low, you must remember that the returns also are low in these instruments. 5. Prepare for the rising cost of education Higher education rates operate independently of the consumer index and are usually higher than the standard inflation. When you define your value goal, keep this in mind. And regularly cross-check the laws for international and Indian students in the countries of your interest. Source: pixabay Don’ts of saving for your child’s education 1. Don’t select the wrong educational goal for your child This is key, constantly check on your child’s interests and capabilities. Just because you have been planning to have your child study Computer Science or Medicine at some Ivy League university, your child does not have to fall in line. Ensure the child is passionate about the course s/he is selecting. Sending your child to another country to do something s/he is not particularly fond of, is stressful emotionally and can result in a huge financial waste. So, think well before you start pushing your child towards any particular stream. https://www.youtube.com/watch?v=_8N_u4C2rFU 2. Do not assume the education loan is easily available As the competition for overseas studies grows, the demand for education loans has bloomed. This simply means you are in the seller’s market, with not very extensive bargaining powers. Your loan application will have to meet several parameters before it is actually sanctioned. And at times, once the papers are processed, the institute may opt not to fund your entire expense. So do not blindly assume that you can always borrow this money. 3. Do not put all your money in one investment Don’t put all your eggs in one basket! This saying is a sworn truth in the investment sphere. Diversify your portfolio and back up your investments in the stock markets with sufficient insurance coverage. Plan for worst-case scenarios and revisit them often. Calculate College Cost 4. Don’t ignore the foreign currency changes International education is heavily dependent on foreign currency exchange. Track it carefully and update your plans on a regular basis. These days several global universities allow their students to do the initial semesters here in India and call the children over only for the last two or three semesters. This is a good option to consider if the foreign exchange rate is not in your favor. 5. Don’t use the education corpus for other emergency expenses Most of us are happy to see the money grow. But if you are investing in instruments that are easy to liquidate, you may often be tempted to encash this money in cases of emergency. Avoid doing it as much as you can. Higher education is an unavoidable and inevitable expense that every parent has to bear at some point in their life so why not prepare well for it? FAQs How do I save for my child's education? One of the most common questions among parents is how to save for their child's education. The best and most effective way is to invest in mutual funds, US ETFs, US stocks, etc. Within mutual funds, parents who have kids between the ages of 1-5 years should opt for equity-based mutual funds. These funds are great for long-term investors who are looking at 10-15 years of investment horizon. However, each plan depends on the parent's risk appetite, time horizon, and the final amount needed for their goal. How much money do I need for my kid's education? An easier way to find how much money you need is through the EduFund College Cost Calculator. The calculator helps you in 2 pertinent ways: It estimates the final cost of any course and college after adjusting it for inflation It customizes a plan based on when and where your child wants to study It suggests investment plans and even scholarships + education loans that can assist you in paying for the amount Why is it important to save money for my child's education? The average cost of education is increasing rapidly. Certain courses like medicine in private universities in India can cost you nearly 1 crore. If you are planning to send your child abroad then need to think of currency exchanges, LRS limits on spending, accommodation costs, and even expensive flight tickets. All these factors are important to consider while creating a corpus. TALK TO AN EXPERT

In the previous article, we read about why choose SIP to save for your child’s higher education. In this article, we will read the best time to start investing in your child’s education.  As an Indian parent, you aim to prioritize your child’s needs before yourself and strive to provide them with all the comfort and luxury in the world. Eventually, all the comfort you bring to your child’s life exemplifies how protective you are of them. And, out of all the beautiful things that you do for them, education is the greatest gift you give.   Yet quality education comes at a high cost, especially in an economic climate that is affected by the global economic crisis and political turmoil. These events affect your purchasing power, devalue your savings and affect your lifestyle and future needs. The only way to escape this vicious cycle is through smart planning and saving on time.   Why is it important to save and invest early in your child’s education?   The simple answer is inflation. Inflation in the education sector is escalating at a scary rate. It is painful to see that your hard-earned money will likely lose its value over time and may not suffice to protect your child’s future. Thus, the earlier you start planning your child’s education journey, the better it will be for their bright future.  In other words, it's time to not only save but grow your money to meet the needs of the future. Investing enables you to increase your money and retain your purchasing power. However, you must invest smartly.  There are several aspects associated with investing. The two main factors that affect your investment strategy are Risk and Return. The general rule of investing is higher risk and higher return. Based on your risk appetite, and short-term and long-term needs, you can accumulate your desired corpus over time. Another powerful rule of investing lies in longevity; the longer you stay invested, the greater your reward.  Here is how investing early can yield greater returns  Kartik is blessed with a baby girl. After a month of her birth, he chooses to invest a monthly SIP of Rs. 5,000 at 10% for 20 years. This way, he makes a total investment of Rs. 12,00,000 over the said period.   On the other hand, his friend Pratyush waits for his son to reach the age of 10 to start investing. He invests the same amount at the same rate of return but for a smaller period. He makes a total investment of Rs. 6,00,000 over ten years.   When their kids attain the age of 20, Kartik receives an accumulated corpus of Rs. 38,28,485. Whereas, Pratyush receives Rs. 10,32,760 as a return on investment. The growth rate for Kartik has been 3.2 times the investment, whereas Pratyush could receive only 1.72 times. But why is there a vast disparity despite the same amount of investment?   The disparity is a result of time. The longer your money stays invested, the more you get in return. That’s the magic of compounding! So, the best time to invest in your child’s higher education is NOW!  The longer your money stays invested, the more rewards you yield. Let’s find out what are the benefits of early investing.   4 benefits of early investing   1. Time Value of Money  When we talk of money and investing, time is an invaluable asset. The amount and the duration for which your money stays invested contribute significantly to the education corpus. The longer it stays invested, the higher return you get.   2. Acceleration through Compounding  Compounding is the return that you get on your return. It means you don’t just get the return on what you spend out of your pocket but also what you earn from it. As a result, your corpus gets richer with time.   3. Manageable Sums  You can start your investment journey early with a manageable sum. A delay would put an unnecessary burden on your pocket. Whether you start early or later, you need to save to meet the growing cost of education. Why put yourself into unnecessary trouble?  4. Higher scope for modification  In the above example, Kartik had assumed Rs. 40,00,000 to be the cost of his daughter’s higher education. However, when her daughter is ten years old, he realizes that the price may rise to Rs. 50,00,000. This situation will not bother him much because he can quickly meet the increased requirements. But things would not go the same way for Pratyush because he will have a considerable gap to fill just because he started late.  The education industry is highly competitive; over the last three decades, the cost of higher education jumped more than 500%.To ensure your child has all the amenities and a bright education, you need to start working on your savings. Our advice is to start easy, start small, but start early! Consult an advisor to get the right plan for you TALK TO AN EXPERT

As a parent, it is essential to consider the benefits of providing your child a high-quality education. Enrolling your child in a distinguished university increases the returns on their schooling and distinguishes their career.   At the same time, choosing an institute that aligns with your child’s profile is a task of utmost importance. Some would even call it the make-or-break decision.   A review by Matthew Mayhew and his co-authors of 1800 research studies reflects on how the selected college could affect your child in various ways economically, socially, psychologically, and intellectually.   In a world of IIMs and IITs, it would be wise to know: If these are suitable options for your child Are these your only options?   To ensure that your child is part of an academic environment that nurtures their unique faculties, take note of the following.  Top-ranked colleges are not necessarily the best-fit college  There is a widely-held misconception that top-ranked colleges are the absolute best. While there is merit in these famous universities being labeled as great institutions; the rank may not be the best metric of “fit.”   Popular websites that rank colleges have a set of parameters that they consider while ranking them from top to bottom. The criteria considered can vary from website to website, and these are not specific to the individual preferences of each student and, therefore, can be highly generalized.   Brand value is another main factor that plays a significant role in deciding between different universities for parents and students. The brand value varies from region to region.   It depends on the portrayal of a college to a specific audience. Having alumni from a particular university in a social circle can also influence the decision to pick a university for many parents and students. So, parents and students may choose which is the best university rather than the best-fit university for them. Source: Pexels What is the best-fit college?   The best-fit college for one student is hardly ever the best-fit college for another, even if the course of study is ordinary for them both. Two top colleges that offer the same principle can be completely different choices for these students.   While one college could provide a great deal of work experience while studying, the other can be a traditional college that entirely focuses on academics.   It is significant for every student and parent to understand which environment will work best in the future. Thus, a parent can choose the best-fit college for their child only after they know what their child expects from a college, especially as a contribution to their future career.     What to consider while choosing the best-fit college?   Before shortlisting options, parents and students need to discuss what they’re expecting out of a university. If flexibility in courses is a choice for the students in, then the UK may not be the best place.   Most UK colleges demand students choose the course they want to study before admission and continue to learn the subject throughout their period in college. However, many colleges in the US offer students more flexibility when choosing their courses.   Students should also account for the teaching methodology of colleges. Some colleges offer one on one attention to students and demand they work on each chapter after a few lectures and discuss it with their tutors weekly or regularly.   Such colleges may work for students who like to be regularly taken care of. However, if a student prefers to attend large lectures, conduct their research, and prepare for exams on their own, these colleges that offer special attention to each student may not be the best fit for them.   Students should also look beyond academics while zeroing in on a college. Some of the main factors that should be studied are opportunities for internships, extra-curricular activities, the scope for exploring sports and the infrastructure to support it, and community involvement. These days universities also look beyond students' academic achievements while screening their applications. They look at their interests, how they perceive the world, why, and more.  A few colleges also expect essays about how students plan to explore different campus facilities.     Most importantly, how your budget accommodates the best fit is a significant factor to consider before sending out applications. Know the total cost of education over the usual academic costs. Consider expenses related to accommodation, food, commute, outside campus activities, internship costs, etc. Parents should assess if their family can afford these fees and if they need a scholarship or loan to lighten the loan on their finances. FAQs What factors should I consider to find the best-fit college? To ensure that you've chosen the best-fit college for yourself, check if the college's ranking, location, ROI, curriculum, faculty, crowd, fees, scholarships, and other facilities match your preference. If it does, then you have landed on the right choice. If not, do more research. How do I start looking for the best-fit college? First and foremost, decide on a subject that you want to pursue and a country you want to study in. Then, make a list of colleges and put them into different categories based on affordability, admission difficulty, ranking, ROI, housing facilities, location, etc. Once done, start applying. Consult an expert advisor to get the right plan TALK TO AN EXPERT