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May 24, 2021

SBI Mutual Fund: NAV, performance & latest MF schemes

SBI Mutual Fund

SBI Mutual Fund was set up on June 29, 1987, and was incorporated on February 7, 1992, and is the first non-UTI Mutual Fund which is a joint venture between the largest bank in India State Bank of India, and the leading global AMC – Asset Management Company in France – AMUNDI.

The SBI Mutual Fund Trustee Company Private Limited which regulates the SBI Mutual Fund was set up as a trust under the Trust Act of 1882.  

SBI Mutual Fund (SBIMF) offers various solution-oriented financial goals in the form of child education, planning of retirement, etc.

SBI Mutual Fund in India

Besides long-term investments, SBIMF caters to a myriad of other investment criteria like ETFs, equity schemes, Index Funds, hybrid plans, debt plans, and much more.

SBI AMC became the biggest AMC AUM wise in January from the 3rd position. As of July 2020,  SBI mutual fund house manages average assets worth Rs. 3,64,916 crores.

The biggest and the best equity schemes of SBI Mutual Fund are SBI ETF Nifty 50 (with assets worth Rs. 67,765 crores) and SBI ETF Sensex ((with assets worth Rs. 26,642 crores).

The third biggest fund of the AMC is SBI Bluechip, which is their large-cap fund. The scheme has an AUM of Rs. 20,783 crores as of July 2020.

As of 31-Mar-2021the Corpus under management is Rs. 505373.4637 crores and the number of SBI Mutual Fund schemes is 322.

In 20 years of operation, the mutual fund has rewarded its investors beneficially with consistent returns.

It has launched 38 schemes and successfully redeemed 15 of them. A total of over 5.8 million investors have invested their faith in the fund and its schemes are consistently outperforming benchmark indices.

The Fund manages over Rs. 42,100 crores of assets reaching out to a vast family of investors through a network of over 130 points of acceptance, 59 investor service desks, 29 investor service centers, and 6 Investor Service Points.

SBI Mutual Fund is one of the most revered and trusted AMC – asset management companies, with a consistent track record, in India for the last three decades.

Its diligent team of experts and professionals provides the most prudent advice on research, risk management, and stock selection.

Important information about SBI Mutual Fund

TrusteeSBI Mutual Fund Trustee Company Private Limited
MD and CEOMrs. Anuradha Rao
CIOMr. Navneet Munot
Compliance OfficerMs. Vinaya Datar
SBIMF Acceptance centers in India222
Number of Investors (approx.)5.8 million investors
Deals in Assets worthRs. 373000 crores
RecognitionSBIMF is the first to launch a ‘Contra’ fund, called the SBI Contra Fund. SBI Mutual Fund is the first in India to launch an Environment, Social, and Governance – ESG Fund that acts as a sustainable investment. In 2015, for the first time, the EPF department – Employees’ Provident Fund of India trusted SBIMF Sensex ETFs (Exchange Traded Funds) with Rs. 5,000 Crore
Address9th Floor, Crescenzo, C-38 and 39, G, Block Bandra – Kurla Complex, Mumbai, Maharashtra – 400051.
Telephone NumberSBI mutual fund customer care number and SBI mutual fund toll-free number – 1800 209 3333, 1800 425 5425, 91-22-62511600 (from outside India)
Email idcustomer.delight@sbimf.com
SMSSBI mutual fund helpline number – ‘SBIMF’ to 7065611100
WhatsApp service of SBIMFThe applicant needs to save the SBI mutual fund WhatsApp number 7208017353 on his contact list and just send a ‘Hi’ to the Distributor from the relevant mobile number that is linked to his Investment number to resolve queries on a real-time basis.

Top-performing SBI mutual fund schemes

Some of the best SBI Mutual Fund Schemes are available on EduFund, and after thorough research on the available plans of investment, the applicant can make the right choice of where and how he wants to put his hard-earned capital.

1. SBI Magnum Mid Cap Fund (Category – Equity – Mid-Cap fund)

This open-ended fund has a NAV of ₹106.498 (Growth) (as of 23rd April 2021) and is one of the top-performing funds in the ‘Equity: Mid Cap category.

The fund was launched on 29th March 2005 and has given trailing returns of 30.4% in one year (as of 2020).

Key information

Minimum InvestmentINR 5,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 1,000
Exit Load0 -1 Year (1%),1 Year and above (NIL).
Return Since Inception (29th March 2005):15.9% (as of 23rd April 2021)
AssetsINR 4887 Crore (as of 31st March 2021)
Expense Ratio2.17% (as on 31st March 2021)

2. SBI Contra Fund (Category – Equity – Contra fund)

Its aim is to provide investors with maximum growth opportunities through equity investments in stocks of growth-oriented sectors of the economy.  

It is a fund with Moderately High Risk that has a NAV of Rs. 150.287 (Growth) (as of 23rd April 2021), and is one of the top-performing funds in the ‘Equity: Contra category.

The fund was launched on 6th May 2005 and has given trailing returns of 30.6% in one year (as of 2020).

Key information

Minimum InvestmentINR 5,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 1,000
Exit Load0-1 Year (1%),1 Year and above (NIL).
Return Since Inception (6th May 2005)14.9% (as of 23rd April 2021)
AssetsINR 1856 Crore (as of 31st March 2021)
Expense Ratio2.29% (as of 31st March 2021)

3. SBI Technology Opportunities Fund (Erstwhile SBI IT Fund – Equity – Sectoral fund)

Its aim is to provide investors with maximum growth opportunities through equity investments in stocks of growth-oriented sectors of the economy.

It is a fund with High Risk and is ranked 42 in the Sectoral category that has a NAV of Rs. 108.207 (Growth) (as of 23rd April 2021), and is one of the top-performing funds in the ‘Equity: Sectoral category.

The fund was launched on 9th Jan 2013 and has given trailing returns of 47.3% in one year (as of 2020).

Key information

Minimum InvestmentINR 5,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 1,000
Exit Load0-15 Days (0.5%),15 Days and above (NIL).
Return Since Inception (9th Jan 2013)20.6% (as of 23rd April 2021)
AssetsINR 595 Crore (as of 31st March 2021)
Expense Ratio2.62% (as of 31st March 2021)

4. SBI Magnum COMMA Fund (Category – Equity – Sectoral fund)

Its aim is to generate opportunities for growth along with the possibility of consistent returns by investing predominantly in a portfolio of stocks of companies engaged in the commodity business within the following sectors – Oil & Gas, Metals, Materials & Agriculture, and debt & money market instruments.

It is a fund with High Risk and is ranked 9 in the Sectoral category that has a NAV of Rs. 56.2233 (as of 23rd April 2021). The fund was launched on 8th August 2005 and has given trailing returns of 23.9% in one year (as of 2020).

Key information

Minimum InvestmentINR 5,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 1,000
Exit Load0-1 Year (1%),1 Year and above (NIL).
Return Since Inception (8th August 2005):11.6% (as of 23rd April 2021)
AssetsINR 320 Crore (as of 31st March 2021)
Expense Ratio2.6% (as of 31st March 2021)

5. SBI Small Cap Fund (Category – Equity – Small Cap fund)

The Scheme seeks to generate income and long-term capital appreciation by investing in a diversified portfolio predominantly equity and equity-related securities of small & midcap companies.

It is a fund with Moderately High Risk and is ranked 4 in the small-cap category that has a NAV of Rs. 80.1244 (as of 23rd April 2021).

The fund was launched on 9th Sep 2009 and has given trailing returns of 33.6% in one year (as of 2020).

Key information

Minimum InvestmentINR 5,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 1,000
Exit Load0-1 Year (1%),1 Year and above (NIL).
Return Since Inception (9th Sep 2009):19.6% (as of 23rd April 2021)
AssetsINR 7570 Crore (as of 31st March 2021)
Expense Ratio2.29% (as of 31st March 2021)

6. SBI Large and Midcap Fund (Category – Equity – Large & Mid Cap fund)

Its aim is to provide investors with long-term capital appreciation/dividends along with the liquidity of an open-ended scheme.

It is a fund with Moderately High Risk and is ranked 20 in the large and mid-cap category that has a NAV of Rs. 284.904 (as of 23rd April 2021).

The fund was launched on 25th May 2005 and has given trailing returns of 15.8% in one year (as of 2020).

Key information

Minimum InvestmentINR 5,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 1,000
Exit Load0-12 Months (1%),12 Months and above (NIL)
Return Since Inception (25th May 2005):17% (as of 23rd April 2021)
AssetsINR 3629 Crore (as of 31st March 2021)
Expense Ratio2.21% (as of 31st March 2021)

7. SBI Bluechip Fund (Category – Equity – Large Cap fund)

Its aim is to provide investors with opportunities for long-term growth in capital through active management of investments in a diversified basket of equity stocks of companies whose market capitalization is at least equal to or more than the least market capitalized stock of the S&P BSE 100 Index.

It is a fund with Moderately High Risk and is ranked 9 in the Large Cap category that has a NAV of Rs. 50.5466 (as of 23rd April 2021). The fund was launched on 14th Feb 2006 and has given trailing returns of 16.3% in one year (as of 2020).

Key information

Minimum InvestmentINR 5,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 1,000
Exit Load0 -1 Year (1%),1 Year and above (NIL)
Return Since Inception (14th Feb 2006):11.3% (as of 23rd April 2021)
AssetsINR 26838 Crore (as of 31st March 2021)
Expense Ratio1.84% (as of 31st March 2021)

8. SBI Banking and Financial Services Fund (Category – Equity – Sectoral fund)

The investment objective of the scheme is to generate long-term capital appreciation for unit holders from a portfolio that is invested predominantly in equity and equity-related securities of companies engaged in banking and financial services.

However, there can be no assurance that the investment objective of the Scheme will be realized. It is a fund with High Risk that has a NAV of Rs. 21.7274 (as of 23rd April 2021).

The fund was launched on 26th Feb 2015 and has given trailing returns of 4.8% in one year (as of 2020).

Key information

Minimum InvestmentINR 5,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 1,000
Exit Load0-12 Months (1%),12 Months and above (NIL)
Return Since Inception (26th Feb 2015):13.4% (as of 23rd April 2021)
AssetsINR 2371 Crore (as of 31st March 2021)
Expense Ratio2.44% (as of 31st March 2021)

9. SBI Magnum tax Gain Fund (Category – Equity – ELSS fund)

To deliver the benefit of investment in a portfolio of equity shares, while offering deduction on such investment made in the scheme under section 80C of the Income-tax Act, 1961.

It also seeks to distribute income periodically depending on distributable surplus. Investments in this scheme would be subject to a statutory lock-in of 3 years from the date of allotment to avail of Section 80C benefits.

It is a fund with Moderately High Risk and is ranked 31 in the ELSS Category that has a NAV of Rs. 179.609 (as of 23rd April 2021). The fund was launched on 7th May 2007 and has given trailing returns of 18.9% in one year (as of 2020).

Key information

Minimum InvestmentINR 5,00
Minimum SIP InvestmentINR 500
Minimum Withdrawal
Exit LoadNIL
Return Since Inception (7th May 2007):10.4% (as of 23rd April 2021)
AssetsINR 9258 Crore (as of 31st March 2021)
Expense Ratio2.22% (as of 31st March 2021)

10. SBI Nifty Index Fund (Category – Others – Index fund)

The scheme will adopt a passive investment strategy. The scheme will invest in stocks comprising the Nifty 50 Index in the same proportion as in the index with the objective of achieving returns equivalent to the Total Returns Index of the Nifty 50 Index by minimizing the performance difference between the benchmark index and the scheme.

The Total Returns Index is an index that reflects the returns on the index from index gain/loss plus dividend payments by the constituent stocks.

This open-ended fund has a NAV of ₹122.988 (as of 23rd April 2021) and is ranked 75 in Index Fund Category. It comes with a Moderately High risk.

The fund was launched on 17th Jan 2002 and has given trailing returns of 14.6% in one year (as of 2020).

Key information

Minimum InvestmentINR 5,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 1,000
Exit Load0-15 Days (0.2%),15 Days and above (NIL).
Return Since Inception (17th Jan 2002):11.1% (as of 23rd April 2021)
AssetsINR 1032 Crore (as of 31st March 2021)
Expense Ratio0.68% (as of 31st March 2021)

The best-performing SBI tax-saving mutual fund

SBI Tax Saving Mutual Funds provide dual benefits to its investors – one in the form of capital appreciation through equity investments and the other through income tax savings under section 80C.

There is a mandatory lock-in period of three years and has the potential for higher returns. The minimum investment is Rs. 500. These are Multi-cap Equity funds with a diversified portfolio.

How can you invest in SBI mutual via EduFund?

It is a simple, convenient, and easy process through EduFund to invest in some of the most profitable SBI Mutual Fund Schemes, which involves a hassle-free process. Let us look at the details of the process:

Step 1: The first step is to log in using your SBI mutual fund login Id or your EduFund account. The applicant can also download and install the SBI mutual fund app to start investing. If the applicant does not own an account, he would need to create a username password by registering on to the portal.

Step 2: The second step is for the applicant to scan and upload identification documents and proofs like Aadhar Card, PAN Card, Passport, Driving License, Voter ID Card or any other ID that is issued by the Central or State Government.

Step 3: Further, the applicant must upload his address proof using any legal document that carries the permanent address of the investor. This proof again could be an Aadhar Card, Passport, Bank statement, rent agreement, Phone or Gas Bill, etc.

Step 4: Next, he should identify the duration of investment he is interested in and apply it accordingly on the portal.

Step 5: After the tenure, the risk undertaking should be determined, whether the applicant wants to opt for a low, medium, or high-risk investment.

Step 6: As per the choice and market feedback, he can opt for the best SBI Mutual Fund, which is most suitable to his individual choice and criteria.

Step 7: The individual has the option to go for a one-time investment or installment. If he wishes to pay the investment amount in a lump sum, he should select the “Invest One Time” button else can click on the “Start SIP” to enable investment which allows monthly/quarterly/bi-annual or annual payments.

EduFund is a renowned portal that is registered with AMFI, BSE, and SEBI with zero fees to sign up. The investment logged in by the individual will reflect in his EduFund account within 3-5 business days.

Using the SBI Mutual Fund Calculator 

The mutual fund calculator SBI helps you estimate the returns which can be expected from the invested capital.

The exact amount cannot be guaranteed, but an estimated amount can be calculated using the SBI mutual fund calculator for both Lumpsum and SBI mutual fund SIP payments to get an appropriate view of the SBI mutual fund statement.

Leading fund managers at SBI Mutual Fund 

The SBI Mutual Fund Investment team is well-equipped with stalwarts of the Finance Sector who have professional experience, qualifications, and knowledge of investment.

Some of the leading Fund Managers at SBI Mutual Fund are:

1. Navneet Munot: Executive Director & Chief Investment Officer

Mr. Munot was the Chief Investment Officer in 2008 when he joined SBI Fund House. Currently, he is the Executive Director and Chief Investment Officer, taking care of investments of more than USD 54 billion.

He is a veteran with experience working with Giants as the former Chief Investment Officer of Birla Sun Life Mutual Funds and as the Executive Director and the Head of the Multi-Strategy Boutique at Morgan Stanley Investment Management.

He has given 25 years to the Finance Sector and is a Chartered Accountant and a Charter Holder of the CAIA and CFA Institute. His expertise lies in various sectors of investment, like fixed income, foreign exchange, and hybrid funds.

He is an asset to SBI Mutual Funds

2. Ashwani Bhatia: Deputy Managing Director

Mr. Bhatia started his career at the entry level as a Probationary Officer in 1985 with the State Bank of India.

Currently, he is the Deputy Managing Director of the SBI, and since July 2018, he is on loan to the SBI Mutual Funds Management Board. He is also the MD and CEO of SBI Mutual Funds.

Before Corporate Credit Structures were revamped, he was also the Chief General Manager of SBI and was also appointed as the Chief General Manager of the Small and Medium Enterprises at the bank for several years.

He has spent a lifetime in the field of Banking and has commendable experience in International Banking, retail, and credit and treasury.

3. Anup Upadhyay: Head of Research

Upadhyay started his career at SBI MF as an Equity Analyst and presently he is the Head of Research at SBI MF and the Fund Manager for the Equity Opportunity Fund and SBI IT Fund for the IT Service Industry.

He is a pass-out of IIT Kharagpur with an additional Post-Graduation Diploma in Management from IIM Lucknow. He has also been a student of the CFA Institute of the USA, where he is a Charter holder.

His expertise lies in the area of Media, Telecom, and Capital Good Stocks too.

4. Nicholas Simon: Deputy CEO

Mr. Simon was deputed from the Amundi Group of France, which holds a significant share in the controlling company. Mr. Simon has served as the CAAM for Real Estate and CEO of Real Estate from 2006-2015.

He represents the interests of the Amundi Group on the Board. He was the Head of Property at Henderson Real Estate in France from 2003-2005 and before that Mr. Simon was the CEO of Generali Real Estate from 1996-2002.

He has done his Master of Business Management from the Toulouse School of Business and completed his Post Graduation in Law from the Pantheon-Assas University in Paris.

He has recognized exposure to International Banking and vast experience in controlling inflation, market trends, and beating the competition.

5. S. Srinivas Jain: Head of Equity

 With an experience of 25 years in the equity market, Mr. Srinivasan joined SBI Mutual Funds as a Fund Manager and later became the Head of equity.

He has had exposure to the equity market for as long as 25 years. Mr. Jain has worked with SBI for almost 20 years, with an overall experience in Financial services of more than 30 years.

He is currently appointed as the Executive Director and Chief Marketing Officer of Strategy and International Business at SBI Mutual Funds.

He has a background in Cost Accountancy and holds a degree in Graduation in Commerce from Bangalore University.

He has varied experience working for leading Financial Companies like Motilal Oswal, Indosuez WI Carr, Principal PNB, Oppenheimer & Co. (Blackstone), and Future Capital Holding, managing the funds of SBI Mutual fund directly under him. 

The other well-known fund managers at SBI Mutual Fund

  • Mr Sanjeev Patkar
  • Mr Nicholas Simon
  • Mr Rajeev Radhakrishnan
  • Mr D.P. Singh
  • Mr Rahul Mayor
  • Ms Aparna Nirgude

Why should you invest in SBI Mutual Fund?

To invest Online in SBI Mutual Funds, one can choose EduFund to safely put away his money in SBI mutual funds online, which charges no fees or hidden charges.

It further helps investors to explore funds and options, gives them a varied outlook on the risk and tenure associated with each investment, provides all-out solutions for investors and clears misconceptions and doubts regarding a return, risk, and consistency before the individual invests his hard-earned money into it.

The Funds option within the portal displays the return percentage and the current NAV. Besides that, before investing, a person can filter options like risk rating, value research, consistency, and size of the fund.

He can also opt for investing in a lump sum amount or installments.

Select EduFund for investing in SBI Mutual Fund

EduFund makes the process of investing in HDFC mutual funds convenient. EduFund’s experienced consultants give you customized solutions for all your financial goals.

You can start investing from a lowly INR 5,000 and grow your capital comfortably.

With EduFund, you get the following benefits:

  1. Customized Research-Based Financial Plan – EduFund’s scientific fund tracker screens over 1 lakh data points and 400 financial scenarios to recommend you the best mutual funds.
  2. Customer-Friendly Counsellors Help You Create a Financial Plan – EduFund’s counselors are trained to handle all kinds of queries from customers. They spend as much time with you as you need and resolve all your issues to help you create a robust financial plan.
  3. Invest Less, Earn More – Not only are the best Indian mutual funds, but EduFund also offers you the facility to invest in US Dollar ETFs and international mutual funds.
  4. Use Free Tools – EduFund offers various free tools for its customers, including College Savings Calculator, SIP calculator, etc.
  5. No Technical Expertise Required – You do not need to be an expert in finance to understand which mutual fund is the best for you. EduFund does it for you.
  6. Value-Added Benefits – You may get value-added benefits like no commission, free advisory, and nil-hidden charges.
  7. Secure Transactions – EduFund is RIA-registered and uses top-class 128-SSL security to enable safe transactions.
  8. Special Support for Children’s Education – EduFund has a dedicated team of experts who help you fulfill your children’s educational goals.


When was SBI Mutual Fund?

SBI Mutual Fund was set up on June 29, 1987, and was incorporated on February 7, 1992, and is the first non-UTI Mutual Fund which is a joint venture between the largest bank in India State Bank of India, and the leading global AMC – Asset Management Company in France – AMUNDI.

Why should you invest in SBI Mutual Fund?

To invest Online in SBI Mutual Funds, one can choose EduFund to safely put away his money in SBI mutual funds online, which charges no fees or hidden charges.

How can you invest in SBI mutual via EduFund?

It is a simple, convenient, and easy process through EduFund to invest in some of the most profitable SBI Mutual Fund Schemes, which involves a hassle-free process.

Want to invest?

Want to invest?

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

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4 W’s of Balanced Advantage Funds

4 W’s of Balanced Advantage Funds

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

5 financial things to consider before child planning.

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

5 investment plans every parent should have

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

5 reasons why SIP is the best investment choice?

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