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June 19, 2021

Quantum Mutual Fund: Invest in High-Performing Funds

Quantum Mutual Fund

Quantum Mutual Fund’s sponsor is Quantum Advisors Private Company, an institutional equity research firm founded by Mr. Ajit Dayal in January 1990. Quantum Advisors is also the first institutional equity research firm in India.

The firm played a pioneering role in introducing qualitative, quantitative, and analytical approaches to India’s stock market investments. Quantum Advisors devised a strategy that evaluated valuation metrics to identify investment opportunities in the resurgent Indian stock market.

The firm provided investment advice to various renowned institutions and famous investors like Jardine Fleming (whose investments in the Indian stock market exceed US$ 1 billion), Walden Nikko India Ventures Fund, Prolific India Opportunities Fund, and Hansberger Global Investors, Inc.

Over time, the firm expanded its business and evolved as an asset manager and investment advisor, managing equities, debt, fixed income, and real estate.

In December 2005, Mr. Dayal got the license for Quantum Asset Management Company Private Limited or Quantum AMC, the asset manager of Quantum Mutual Fund.

It is the 29th mutual fund company in India. The company functions as a trust as per the provisions of the Indian Trusts Act, of 1882. At present, the AMC manages ten funds across fund categories like equity, debt, commodity, and fund of funds. The timeline for launching each of the ten funds is as follows:

  • March 2006 – Quantum Long Term Equity Fund (later renamed to Quantum Long Term Equity Value Fund)
  • April 2006 – Quantum Liquid Fund
  • February 2008 – Quantum Gold Fund ETF 
  • July 2008 – Quantum Index Fund ETF (later renamed to Quantum NIFTY ETF)
  • December 2008 – Quantum Tax Saving Fund
  • July 2009 – Quantum Equity Fund of Funds
  • May 2011 – Quantum Gold Savings Fund
  • July 2012 – Quantum Multi Asset Fund of Funds (later renamed to Quantum Multi Asset Fund of Funds)
  • May 2015 – Quantum Dynamic Bond Fund
  • July 2019 – Quantum India ESG Equity Fund

Quantum AMC was perhaps the only such financial institution in India to have increased their employees’ salaries by 15% during the early lockdown period, on the condition that they would give half of the extra money to someone who lost their income due to the economic disruption.

In the financial year 2005-06, Quantum AMC had an Asset Under Management (AUM) of INR 11.26 Crore, and the total folios were 798.

The figure has steadily grown ever since. And in the financial year 2019-20, the AUM increased to INR 1,119.24 Crore and the number of folios to 69,100.

From the financial year 2005-06 to 2016-17, the AMC did not spend anything on distributor commission, as it was a direct-to-investor mutual fund.

Quantum Mutual Fund in India

Important information about Quantum Mutual Fund

Mutual Fund NameQuantum Mutual Fund
Established2nd December 2005
Date of Incorporation19th September 2005
TrusteeQuantum Trustee Company Private Limited 7th Floor,
Hoechst House, Nariman Point,
Mumbai – 400 021
Tel. No.: 022-6144 7800
SponsorQuantum Advisors Private Limited Registered Office:
6th Floor, Hoechst House,
Nariman Point,
Mumbai – 400 021
Board of Directors, Trustee CompanyMr Surjit Banga, Director  Mr Kaiwan Kalyaniwalla, Director Mr Subramanian Ganapathy, Director Ms Nalini Kak, Director
Board of Directors, AMCMr Jimmy A Patel, Managing Director & CEO Mr S.R. Balasubramanian, Director

Mr I. V. Subramaniam, Director Mr Kamal Pande, Director Ms Uma Mandavgane, Director
Registered AddressQuantum Mutual Fund
7th Floor, Hoechst House, Nariman Point, Mumbai – 400021, India
Mr. Jimmy PatelMr. Malay Vora
Managing Director & CEO, Quantum Asset Management Company Pvt. Ltd.Mrs. Meera Shetty
Phone and Fax Toll-Free No.:1800-209-3863 / 1800-22-3863, Telephone No.:91-22-61447800, Toll-Free Fax no.:1800-22-3864
Website / 
Compliance OfficerMrs. Meera Shetty
Investor Service OfficerMrs Meera Shetty
Registrar and Transfer AgentKarvy Fintech Private Limited
Unit: Quantum Mutual Fund
Karvy Selenium Tower-B,
Plot No. 31&32, Financial District,
Nanakramguda Serilingampally Mandal,
Hyderabad – 500032
CustodianDeutsche Bank AG
Nirlon Knowledge Park, Block 1,
4th Floor, Western ExpressHighway
Goregaon (East), Mumbai – 400 063
Main BankersHDFC Bank Limited
Manecji Wadia Bldg., Gr. Floor,
Nanik Motwani Marg, Fort, Mumbai – 400 023. Deutsche Bank AG
Nirlon Knowledge Park, Block 1, 4th Floor, Western
Goregaon (East), Mumbai – 400 063
Statutory AuditorsM/s. S. R. Batliboi & Co. LLP
14th Floor, The Ruby, 29,
Senapati Bapat Marg,
Dadar (West),
Mumbai – 400028

Six top-performing Quantum Mutual Fund Schemes

1. Quantum India ESG Equity Fund (Category – Equity: Thematic – ESG)

The Quantum India ESG Equity Fund, with a NAV of 14.3300 (Regular Growth) (as of 15th April 2021), is one of the top-performing funds in the ‘Equity: Thematic – ESG’ category.

This open-ended fund was launched on 12th July 2019 and has given trailing returns of 69.79% in one year (as of 15th April 2021). The fund considers the NIFTY 100 ESG TRI as its benchmark. 

Key Information

Minimum InvestmentINR 500
Minimum Additional InvestmentINR 500
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 500
Exit Load1% for withdrawals before 365 days
Return Since Inception (12th July 2019 ):INR 38 Crore (as of 31st March 2021)
Assets1.65% (as on 28th February 2021)
Expense Ratio1.65% (as of 28th February 2021)

2. Quantum Long-Term Equity Value Fund (Category – Equity: Value Oriented)

The Quantum Long Term Equity Value Fund, with a NAV of 65.1200 (Regular Growth) (as of 15th April 2021), is one of the best-performing funds in the ‘Equity: Value Oriented’ category.

This open-ended fund was launched on 1st April 2017 and has given trailing returns of 66.89% in one year (as of 15th April 2021). The fund considers the S&P BSE 2000 TRI as its benchmark. 

Key Information

Minimum InvestmentINR 500
Minimum Additional InvestmentINR 500
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 500
Exit Load2% for withdrawals before 365 days and 1% for withdrawals between 366 and 730 days
Return Since Inception (1st April 2017):13.00% (as of 15th April 2021)
Assets13.00% (as on 15th April 2021)
Expense Ratio1.79% (as of 28th February 2021)

3. Quantum Nifty ETF (Category – Equity: Large Cap)

The Quantum Nifty ETF, with a NAV of 149.3135 (Regular Growth) (as of 15th April 2021), is the best fund in the ‘Equity: Large Cap category.

This open-ended fund was launched on 10th July 2008 and has given trailing returns of 64.72% in one year (as of 15th April 2021). The fund considers the NIFTY 50 TRI as its benchmark. 

Key Information

Minimum InvestmentINR 500
Minimum Additional InvestmentINR 500
Minimum SIP Investment
Minimum WithdrawalINR 500
Exit LoadNil
Return Since Inception (10th July 2008):0.09% (as on 28th February 2021)
Assets0.09% (as of 28th February 2021)
Expense Ratio11.59% (as of 15th April 2021)

4. Quantum Equity Fund of Funds (Category – Equity: Flexi Cap)

The Quantum Equity Fund of Funds, with a NAV of 44.0450 (Regular Growth) (as of 15th April 2021), is one of the top-performing funds in the ‘Equity: Flexi Cap category.

This open-ended fund was launched on 1st April 2017 and has given trailing returns of 56.01% in one year (as of 15th April 2021). The fund considers the S&P BSE 200 TRI as its benchmark. 

Key Information

Minimum InvestmentINR 500
Minimum Additional InvestmentINR 500
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 500
Exit Load1% for withdrawals before 365 days
Return Since Inception (1st April 2017):0.75% (as of 28th February 2021)
AssetsINR 62 Crore (as of 31st March 2021)
Expense Ratio0.75% (as on 28th February 2021)

5. Quantum Multi Asset Fund of Funds (Category – Hybrid: Multi Asset Allocation)

The Quantum Multi Asset Fund of Funds, with a NAV of 21.9742 (Regular Growth) (as of 15th April 2021), is the top-performing fund in the ‘Hybrid: Multi-Asset Allocation’ category.

This open-ended fund was launched on 1st April 2017 and has given trailing returns of 19.70% in one year (as of 15th April 2021). The fund considers the CRISIL Composite Bond TRI, S&P BSE Sensex TRI, and the Domestic Price of Gold as its benchmark. 

Key Information

Minimum InvestmentINR 500
Minimum Additional InvestmentINR 500
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 500
Exit Load1% for withdrawals before 90 days
Return Since Inception (1st April 2017):9.34% (as of 15th April 2021)
AssetsINR 33 Crore (as of 31st March 2021)
Expense RatioINR 33 Crore (as on 31st March 2021)

6. Quantum Tax Saving Fund (Category – Equity: ELSS)

The Quantum Tax Saving Fund, with a NAV of 149.3135 (Regular Growth) (as of 15th April 2021), is one the best-performing funds in the ‘Equity: ELSS’ category.

This open-ended fund was launched on 1st April 2017 and has given trailing returns of 66.16% in one year (as of 15th April 2021). The fund considers the S&P BSE 200 TRI as its benchmark. 

Key Information

Minimum InvestmentINR 500
Minimum Additional InvestmentINR 500
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 500
Exit LoadNil (Lock-in period – 3 years)
Return Since Inception (1st April 2017):1.79% (as of 28th February 2021)
Assets1.79% (as of 28th February, 2021)
Expense RatioINR 89 Crore (as of 31st March, 2021)

How can you invest in Quantum Mutual Fund Via EduFund?

EduFund provides you with a simple interface to invest in one or more Quantum mutual fund schemes and reap rich dividends.

You can invest in a growth scheme or dividend scheme. The growth scheme does not pay any dividends. Any dividend paid by a company in the fund’s portfolio is adjusted in the NAV.

In contrast, if you choose the dividend option, you can get extra income when the company pays a dividend.

The following are the steps you can take to invest in a Quantum Mutual Fund scheme:

Step 1 – Download the EduFund App from Google Play Store or Apple App Store.

Step 2 – Create an account on EduFund by entering details like name, mobile phone number, email address, etc. 

Step 3 – Browse all Quantum Mutual Fund schemes and choose the suitable scheme suiting your financial goals. EduFund provides the option to invest a lump sum or open a SIP (Systematic Investment Plan) account. 

Step 4 – At any point, you may take free advice from an expert mutual fund counselor for free. The counselor will ask you questions concerning your financial goals and suggest a suitable scheme for you.

Step 5 – Once you invest in a scheme, EduFund will give you access to your personalized mutual fund account. You can also invest in other mutual fund schemes that generate high returns.

Moreover, you can track your portfolio, view the account balance and NAV, download account statements, buy or sell mutual fund units, and do other things. 

Step 6 – You are ready to experience safe and secure investing. EduFund uses top-class security parameters and authentication technologies to ensure safe transactions.

Five best-performing fund managers at UTI Mutual Fund

The fund manager is a key resource person whose timely actions determine the fund’s growth. Quantum Mutual Fund’s managers are some of the best in the industry and have consistently delivered inflation and benchmark-beating returns to its clients.

Top five fund managers are Quantum Mutual Fund:

1. Mr. Nilesh Shetty

Mr. Nilesh Shetty, Fund Manager, Quantum Asset Management Company Private Limited, joined the company in December 2009. He joined the AMC as a Senior Manager and was promoted to the position of Associate Fund Manager in April 2011.

In September 2020, he was appointed as a fund manager. He is currently working as the Co-Fund Manager – Equity at Quantum AMC. Before joining Quantum AMC, he served Edelweiss Securities Ltd. as the Manager of Research, Pranav Securities Private Limited as the Senior Manager of Research, and ICICI Bank as Officer, RCLG.

Mr. Shetty’s educational qualifications include a Master in Management Studies (Finance) (Mumbai University), CFA (CFA Institute), CGMA (The Chartered Institute of Management Accountants), and CPA – Accounting, and Finance (Association of International Certified Professional Accountants).

He manages the Quantum Long Term Equity Value Fund and Quantum Multi Asset Fund of Funds. 

2. Mr. Pankaj Pathak

Mr Pankaj Pathak, Fund Manager, of Quantum Asset Management Company Private Limited, joined the company in August 2013 as Senior Manager – Fixed Income and was promoted to Fund Manager – Fixed Income in March 2017.

Before joining Quantum AMC, he worked with the Bank of Maharashtra as Senior Manager – Foreign Exchange. He has over 12 years of experience in Investment, Treasury, Capital Markets, and Trading.

His specialties include Portfolio Management, Financial and Economic Research, Securities Analysis, Investments, and Funds and Liquidity Management. Mr. Pathak did B.Sc. in Electronics (University of Lucknow), Post Graduate Diploma in Banking & Finance (National Institute of Bank Management, Pune), and CFA, Investments, and Securities (CFA Institute, USA).

He also possesses the CAIIB (Treasury Management) certification from the Indian Institute of Banking & Finance. He manages the Quantum Dynamic Bond Fund and Quantum Liquid Fund for Quantum AMC. 

3. Mr. Chirag Mehta

Mr. Chirag Mehta, Senior Fund Manager – Alternative Investments, Quantum Asset Management Company Private Limited, joined the company in February 2006.

In 2017, Citywire chose him as the fourth (4th) best Fund Manager globally under forty (40).  He has over eighteen (18) years of experience in Investments, Alternative Investments, Portfolio Management, Research, Asset Management, Capital Markets, and Commodity Markets.

Mr. Mehta’s educational qualifications include a Master in Management Studies (Finance) (Mumbai University) and Chartered Alternative Investment Analyst, Alternative Investments.

He looks after five funds, including Quantum Gold Fund, Quantum Equity Fund of Funds, Quantum India ESG Equity Fund, and Quantum Multi Asset Fund. 

4. Mr. Sorbh Gupta

Mr. Sorbh Gupta, Co-Fund Manager – Equity, Quantum Asset Management Company Private Limited, joined the company in March 2011.

Before joining Quantum AMC, he worked with Narotam Sekhsaria Family Office as a Senior Equity Analyst and Pranav Securities Private Limited as an Investment Analyst.

His educational qualifications include CA, Accounting, and Finance (The Institute of Chartered Accountants of India) and CFA (CFA Institute, USA). He manages Quantum Tax Saving Fund and Quantum Long Term Equity Value Fund. 

5. Ms. Sneha Joshi

Ms. Sneha Joshi, Associate Fund Manager – Alternative Investment, Quantum Asset Management Company Private Limited, joined the company in August 2015 as a Quantitative and Credit Analyst.

In May 2017, she got promoted to Sr. Quantitative and Credit Analyst, and since January 2019, she has been working in her current position. She has over nine (9) years of experience in quantitative modeling, insights modeling using R and Python, fixed-income research, data science, economic research, ETFs, and asset allocation.

Before joining Quantum AMC, she worked as an Economic Analyst at Credit Capital Research. She also worked as an Intern at NABARD.

She did her schooling at Modern High School Pune and Fergusson College. Subsequently, she did B.A. Economics (Fergusson College), Post Graduate Diploma in Foreign Trade, International Business/Trade/Commerce (University of Pune), M.A. Economics (Gokhale Institute of Politics and Economics), and Ph.D. Economics (Gokhale Institute of Politics and Economics).

She has also done various certification courses from Coursera. She manages the Quantum India ESG Equity Regular Growth Fund. 

Why should you invest in Quantum Mutual Fund?

Quantum mutual fund is one of the newest AMCs in India. It provides investment solutions for investors’ financial goals like wealth creation, vacation, child’s education, child’s marriage, and retirement.

Whether you want long-term growth or short-term capital appreciation, Quantum Mutual Fund has a scheme suiting your requirements. Since 2006, most of its funds have consistently beaten the benchmark.

Hence, you should invest in a scheme offered by Quantum Mutual Fund if you are a patient investor willing to profit from the opportunities in capital and commodity markets. 

Select EduFund for investing in Quantum Mutual Fund 

With EduFund at your fingertips, you can conveniently invest in one or multiple Quantum mutual fund schemes from the convenience of your office or home.

You can also get personalized guidance from EduFund’s seasoned mutual fund counselors, who assist you in choosing the best fund.

EduFund provides you with a top-class recommendation engine that browses more than one lakh data points and 400 financial situations to recommend the best plan for you. You can start your investment journey by investing as little as INR 500 every month. 

In addition to Indian funds, EduFund also offers you the facility to invest in international mutual funds and US Dollar ETFs.

You may use several free tools like College Savings Calculator, SIP Calculator, etc., to calculate the amount you need to save every month for reaching your financial goals.

EduFund is RIA-registered, and its world-class 128-SSL security safeguards your investments like a bank. 


What are some top Quantum Mutual Fund schemes?

Some of the top-performing Quantum Mutual Fund schemes are Quantum India ESG Equity Fund (Category – Equity: Thematic – ESG), Quantum Long-Term Equity Value Fund (Category – Equity: Value Oriented), Quantum Nifty ETF (Category – Equity: Large Cap), Quantum Equity Fund of Funds (Category – Equity: Flexi Cap), etc.

Can I invest in Quantum Mutual Funds online?

Yes, you can invest in Quantum Mutual Funds online through the EduFund App. Just download the app, create an investor account, explore your options, finalize one, and begin investing.

Is investing in Quantum Mutual Funds a good decision?

Whether you want long-term growth or short-term capital appreciation, Quantum Mutual Fund has a scheme suiting your requirements. Since 2006, most of its funds have consistently beaten the benchmark.

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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
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