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As we have stepped into 2024, although the year has changed, what has remained constant is parents' worry about rising inflation and education costs. Despite the uncomfortably high inflation (5.69, general, as of Dec. 2023), these rising figures do not reflect the hardship brought on by rising education costs. According to one news article, education inflation is higher(twice) than the inflation rate. Education costs include tuition fees, co-curricular fees, and other fees. Parents can consider the investment a suitable tool to mitigate these worries and the inflation risk.  When parents start investing in their child's future early, it is always beneficial as they will see the magic of compounding over the years. Along with inflation, the return on investment will also rise. One can beat rising inflation by making the right decision at the right time.  Generally, when a person wants to start investing, there are a few parameters that he needs to keep in mind before planning.  What amount does an investor want to invest? The investment amount should be pre-decided, like the amount you are ready to start your journey. (E.g. An investor can start an SIP with an amount as low as ₹100)  What is the time horizon? The asset class to be invested in will depend on the time horizon. Generally, the longer the time horizon, the greater the risk an investor can take and vice versa. Therefore, the investor should decide when he would require the money, and based on that, he can consider the risk he can undertake.  What is the risk appetite of that investor? Every asset class has different risk characteristics. Few asset classes are considered highly risky, such as equity funds, but rewarding, whereas few other asset classes, like debt funds, can be less risky but have low return potential. The risk appetite will depend on factors such as time in hand, the financial position of the investor, the amount of investment, certainty of the cashflows or income, etc. Considering these factors, the investor should decide his risk appetite and which asset he can invest in.  Considering this, the following are a few investment options that people generally undertake:  FD (Fixed Deposit) – A traditional tool of investment that provides steady returns of 5-7% over the period, but the return on FD generally fails to beat inflation.  PPF – A secure investment that provides a 7-8% (est.) return on your investment. It falls under the EEE(Exempt-Exempt-Exempt) concept, which means the principal amount, the interest earned, and the maturity amount of PPF are completely Tax-free.  LIP – Endowment plans are offered by life insurance companies that facilitate both risk protection and investment options, and many people consider these for the child’s investment planning.  Gold – Gold is one of the most popular investment options that act as a hedge against inflation.  Real estate – Although real estate provides decent return potential, it has limitations, such as high-ticket size, high transaction costs, high maintenance costs, illiquidity, etc.  If we look at all the above asset classes, they all come with various limitations, the primary and the most important being their underperformance against the elevated education inflation. Therefore, the investors lose their money in real terms if the investment cannot beat the education inflation, which is often seen in the case of the above asset classes. However, one asset class offers a solution to this and many other problems.   Mutual Funds - Investment in mutual funds is an excellent option. Mutual funds offer different products for the different needs of the investors. There is always a product available for every need of the investors. For example, investors can consider debt funds for short-term time horizons, which offer better return potential than bank deposits with lower risk. Hybrid funds can be considered for medium-term time horizons, providing limited growth potential and portfolio stability. Equity funds are suitable for long-term time horizons, which provide high growth potential with reduced volatility over a longer duration. Apart from this, mutual funds offer benefits such as professional money management, liquidity, diversification, lower ticket size, etc. Thus, parents can start their investment journey by regularly investing through SIP or one-time investment through lumpsum.  Top Performing Mutual Funds Following are some of the top-performing mutual funds from different categories:  Fund Name Category Sub-category Inception AUM  (Rs Cr) Expense Ratio 3Y Return  5Y Return  Nippon India Small Cap Fund Equity Small Cap 01-01-2013 43,816 0.67% 41.76% 30.94% HDFC Mid Cap Opportunities Fund Equity Mid Cap 01-01-2013 56,033 0.80% 32.32% 24.97% SBI Contra Fund Equity Contra 01-01-2013 21,482 0.69% 32.20% 26.29% DSP Nifty 50 Equal Weight Index Fund Equity Index (Large) 23-10-2017 1,004 0.40% 21.79% 18.48% HDFC Balanced Advantage Fund Hybrid Balanced Adv. 01-01-2013 73,349 0.80% 26.29% 19.43% ICICI Prudential Multi-Asset Fund Hybrid Multi-Asset 01-01-2013 30,650 0.84% 25.51% 19.79%  Note – All are Direct Plan and Growth Option; AUM and Expense ratio are as of December 31, 2023; 3Y/5Y returns are annualized and as on January 29, 2024  Source - valueresearch.com  Nippon India Small Cap Fund Nippon India Small Cap Fund is among the best performers and has consistently outperformed the category over the last 1/3/5/7/10 years.  It has delivered the highest returns in the category over the last 7 and 10 years and has been in the top 3 over the three and 5-year period.  The fund has delivered the best risk-adjusted returns over the last three years, depicted by the highest Sharpe ratio.  HDFC Mid Cap Opportunities Fund HDFC Mid Cap Opportunities Fund is the largest fund in the mid-cap space with an AUM of Rs. 56,033 crores and is the only fund in the category to have an AUM of more than Rs. 50,000 crores.    The fund has consistently outperformed the category and the mid-cap index over all the 1/3/5/7/10 years.  The fund has delivered better returns per unit of risk, depicted by the lower standard deviation and the beta compared with the category average.  SBI Contra Fund The fund follows a contrarian strategy while investing in equity and provides exposure to companies of all sizes.  The fund has been in existence for approximately 25 years and has generated a since inception return of 17.13% for its direct plan as of January 29, 2024.  The fund has delivered the best risk-adjusted returns in the category, as depicted by the highest Mean Return, Sharpe Ratio, Sortino Ratio and Alpha.  DSP Nifty 50 Equal Weight Index Fund This fund tracks the Nifty 50 Equal Weight TRI, providing exposure to large-cap equities where the probability for alpha generation is very low.    Compared with the Nifty 50 TRI, the Nifty 50 Equal Weight Index TRI has delivered better returns with lower volatility over a long-term period.  The fund has delivered an alpha of 4.23%, whereas the other funds in the category have barely managed to generate the alpha in the last three years.  HDFC Balanced Advantage Fund HDFC Balanced Advantage Fund is one of the oldest funds in India and is the largest fund in the balanced advantage category, with an AUM of Rs. 73,349 crores.  The fund has been the top performer in the category for over 1/3/5 years and has delivered an impressive return of 16.15% for its direct plan since its inception.  Although the fund has been volatile more than the category, it has delivered a significantly higher alpha of 10.98% compared to the category average of 2.62% over three years.  ICICI Prudential Multi-Asset Fund ICICI Prudential Multi-Asset Fund has the largest AUM of 30,650 crores in the category.  The fund provides exposure to various asset classes such as equities, debt, real estate, commodities, etc.  It has delivered a significantly higher alpha of 11.90% against the category average of 4.70% over the three years.  Note: All the details of the funds mentioned above are of direct plan growth option unless otherwise specified and as of January 29, 2024.   Source: valuereasearch.com  Investing in your child's future will provide a world-class education to help them remain competitive among peers. Here, competitive means allowing them to be well-settled with their career choices and to live a confident and happy life. The sooner you start, the better you can provide for your child eventually.  Choosing the right plan and sticking to your investment decision will reward you with an extensive corpus. Investors can research before selecting any fund or consult a financial advisor who can give investment advice suitable to their risk appetite.  Happy Investing!  Disclaimer - Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The past performance of the mutual funds is not necessarily indicative of the future performance of the schemes. The mutual fund schemes mentioned are only for educational and informational purposes, and no investment is recommended.  Join our robust WhatsApp Community that helps parents invest!

Securing an education loan for abroad studies opens the door to a world of academic and personal growth. Let’s break down the process for getting educational loans for abroad studies and find out the eligibility criteria, documents needed, how to get an education loan, and much more. Education Loans for Abroad Studies In an increasingly interconnected world, pursuing education abroad has evolved from being a mere aspiration to a transformative experience. The exposure to diverse cultures, cutting-edge academic programs, and unparalleled opportunities for personal growth has made international education a sought-after endeavour. However, the costs associated with studying abroad can be overwhelming. This is where investment in education loans comes to the rescue, acting as a bridge between dreams and reality. https://www.youtube.com/watch?v=4gTQkdePOWM Are you eligible to get a study loan abroad? To be eligible, applicants often need to meet certain requirements that the bank has set. For instance, if you are applying for a study loan to study abroad from India then here are the basic eligibility criteria that you need to meet. The applicant must be 16 years old and an Indian citizen Co-applicants must be an Indian citizen Ability to offer collateral for certain cases Co-borrower(s) must have a bank account in any bank in India with cheque facilities and a good credit history. Confirmed admission to the colleges before disbursement. Admission Confirmation: Having an admission offer from a recognized foreign institution is a prerequisite for applying for an education loan. The institution's reputation and the chosen course play a role in determining loan approval. Co-Applicant/ Guarantor: Many lenders require a co-applicant, usually a parent or guardian, to share the responsibility of repaying the loan. The co-applicant's financial stability can influence the loan's terms. Collateral: Depending on the loan amount, lenders might ask for collateral as security. Property, fixed deposits, or other priceless assets can be used as collateral. Eligibility criteria differ on the basis of your nationality. Co-Applicant Education Loan Guide Read More How should you apply for an education loan abroad? Navigating the education loans for abroad studies application process can be overwhelming, given the multitude of options and procedural complexities. To get an education loan, you can visit public and private banks and international lenders, find out the interest rate and start the process with your chosen provider. Rather than visiting all the banks, you can opt for an education loan counselor. An educational loan counselor is an expert who serves as an intermediary between aspiring students and financial institutions, helping them find the best loan options tailored to their needs. They streamline the loan application process, help with documentation, and get your fast approval. Education loan counselors can help you save both time and effort. https://www.youtube.com/watch?v=fufyFB9aMQI Documents you need for an Education Loan When applying for an education loan, the documentation process is a crucial step. Commonly required documents you must have: Loan application form Passport-size photos PAN card and Aadhar card Indian passport (if you are going abroad) Marksheets for 10th, 12th & Graduation Entrance exam results (like IELTS, GMAT, GRE, TOEFL, etc.) Offer letter or a conditional admission letter (if received) Work experience proof (if any) In the case of self-employed co-applicant 8-month bank statements of savings & current account 2- years ITR statement Collateral documents (if needed) In the case of salaried co-applicant6-month bank statements of the salary account of the co-applicant2-year ITR / FORM 16 co-applicant3-month salary slips Collateral documents (if needed) How to use the Education Loan Calculator for abroad studies? An education loan calculator is a way to find out the monthly payments you will be making to close your student loan! An education loan for abroad studies is a huge responsibility, and the calculator helps you find out the EMIs you will potentially be repaying, the duration of repayment, and the total payable amount after adding the interest. It’s very easy to use and can help you determine the future EMIs on your loan. For instance, you decide to take a loan of Rs. 25,00,000 at an interest rate of 10%. The decided loan tenure is 10 years. If you put all these details in an educational loan calculator, it will tell you the exact EMI amount, which is Rs. 33,038, the total payable amount, that is Rs. 39,64,522 along with the payable interest amount (Rs. 14,64,522) on top of the principal amount of Rs. 25 lakhs. An education loan calculator is a powerful tool that helps you prepare for the future, let's gauge the estimated costs you will be repaying and helps you budget for it in advance. What is the interest rate of education loans abroad? The interest rate depends on many factors. The interest rate of education loans for abroad studies is determined by the bank, individual profile, co-applicant history, and whether it’s a secured or unsecured loan. If you are applying with EduFund, you can get low and attractive interest rates starting from 9% with the top loan providers like Prodigy Finance, IDFC First Bank, ICICI Bank, Axis Bank, and many more. Things to Know Before Choosing an Education Loan Selecting the right education loan requires a careful evaluation of several factors: Interest Rate: The interest rate significantly impacts the overall cost of the loan. For the best deal, compare the rates provided by several lenders. Repayment Tenure: Longer repayment tenures might result in lower monthly installments but higher overall interest payments. Choose a tenure that aligns with your financial plans. Processing Fees: Understand the processing fees associated with the loan application. Some lenders might have hidden charges that could affect your repayment burden. Tax Benefits: In some countries, education loan interest payments are eligible for tax deductions. Familiarize yourself with the tax implications of the loan. Prepayment Terms: Check if the lender allows prepayment without penalties. This can help you save on interest payments if you have the means to repay the loan early Higher interest rate of education loans for abroad:  While investing in education loans serves as a lifeline for many students aspiring to study overseas, the interest rates can vary significantly. Factors like the bank's policies, the applicant's credit history, and the loan type (secured or unsecured) play a role in determining the interest rate, exchange rate fluctuations, repayment challenges in foreign currency, and the global economic scenario. https://www.youtube.com/watch?v=TJ4qgFj46Uw Importance of selecting the right repayment plan Choosing the right repayment plan for your education loan is a critical decision that can significantly impact your financial well-being post-graduation. Financial institutions often offer various repayment options, such as fixed, variable, or income-based plans. Understanding the nuances of each plan and aligning it with your future income projections and financial goals can ensure a smoother repayment process and alleviate undue stress. Partnering with EduFund: Shaping a Bright Future for International Education Pursuing education abroad is a transformative experience that opens doors to academic and personal growth. However, the costs associated with international education and education loans for abroad studies can be daunting. Amidst this process, EduFund stands as a reliable partner, offering attractive interest rates and partnering with esteemed institutions to make the dream of studying abroad a reality. EduFund provides access to a range of loan providers, each with its own interest rate structures. Keeping in mind that lower interest rates can significantly reduce the long-term financial burden, applicants should strive to secure the best possible rate for their circumstances. With EduFund's support, students can embark on their educational journey confidently, knowing that their financial needs are well taken care of. FAQs Can I apply for a loan before receiving the admission offer? It's recommended to have an admission offer in hand before applying for a loan, as lenders often require it for processing. What's the typical loan repayment grace period after completing the course? What's the typical loan repayment grace period after completing the course? Does a good credit score essential for loan approval? While a good credit score can enhance your chances of approval, some lenders offer loans to students with co-applicants who have strong credit profiles. What happens if I'm unable to secure a job immediately after completing the course? Some lenders offer extended grace periods or flexible repayment options for students who face challenges in finding employment Can I get a loan for living expenses in addition to tuition fees? Some lenders do offer education loans that cover both tuition fees and living expenses. Check with the lender for specific terms. An education loan for abroad studies bridges the financial gap between your aspirations and the realization of international education. EduFund aims to help you bridge that gap by offering low and attractive interest rates on your education loan. EduFund connects you with India’s top lenders, helps you compare loan plans, and even get collateral-free education loans up to Rs. 1 crore!

Education loans to pay for your higher education overseas are common and effective; let's look at all the expenses under education loans to help you make the right choice. What are some expenses under education loans? Do education loans only help with tuition fees? Can education loans cover the cost of flights or help pay the living expenses?   Keep reading to find out the expenses under education loans.    One of the main issues facing the majority of Indian students who want to study abroad is how they would pay for their higher education. An education loan makes sure that all of the financial conditions for the application process for an education loan overseas are satisfied within the allotted time limit.  For the majority of students, the cost of an education loan in India for studying abroad is the main topic of conversation when it comes to financing higher education overseas. The information on this page is relevant to both secured and unsecured education loans in India for international studies.  https://www.youtube.com/watch?v=7Y0V6Z0lcJs&t=1s Costs of a typical course abroad for a student loan  One widespread misconception is that student loans do not fully cover the costs associated with studying abroad. This is untrue, though, as all educational loans, whether secured ones from government banks or unsecured ones from private lenders, cover the following list of costs that are essential to the educational process.  1. Student fees  One of the two main components of both forms of education loans in India for studying abroad is the tuition prices charged by foreign universities. An education loan in India for the international study is intended to assist students in covering their tuition costs. In India, all student loan repayments include tuition. Therefore, when deciding on the overall amount of your student loans, you should give top priority to covering your tuition costs.  2. Housing Costs  The term "factors" can refer to a wide range of things. The main living costs for a student include their rent or room and board, food, and costs for other daily necessities like transportation to and from school, a security deposit for housing, etc.  3. Medical Insurance  International students are frequently required to obtain health insurance by many foreign universities. This specific cost is covered by an education loan in India for studying abroad as it is one of the prerequisites for studying abroad for many students. Therefore, while applying for an education loan, health insurance can also be taken into account.  https://www.youtube.com/watch?v=4gTQkdePOWM 4. Flight Tickets  Another significant price covered by an education loan when applying for one overseas is airline tickets to the location of your choice. When quoting the education loan amount to your bank, this component might also be included.  5. Research Aid  You can include this information in the education loan application if your foreign university's offer letter states that you are responsible for paying for excursions and other extracurricular activities throughout the course of your studies. In addition, when applying for both forms of school loans in India, students can include the price of products like books, computers, and other study supplies in their total expenses.  https://www.youtube.com/watch?v=fufyFB9aMQI Does an education loan cover living expenses? The answer is yes, in most cases! Indian education loans for abroad studies typically cover a range of expenses beyond just tuition fees. This can include: Living expenses: This covers your accommodation, food, local transportation, books and study materials, and other daily needs. Travel expenses: The loan may cover flight tickets to your study destination and back. Other fees: This might include visa application fees, health insurance premiums, and even exam registration fees. However, there are a few key things to remember: Loan amount limitations: There might be a maximum limit on the total loan amount you can avail. This limit should ideally factor in both tuition fees and estimated living expenses. Documentation required: You'll need to submit documents like university acceptance letters and estimated living cost breakdowns to secure the loan amount for living expenses. Disbursement process: The loan for living expenses might be disbursed directly to the university or in instalments based on a pre-determined plan. Remember: Carefully research different lenders and compare their loan terms, interest rates, and living expense coverage options. This will help you choose the most suitable education loan for your study abroad journey. With proper planning and the right financial backing, your dream of studying abroad can become a reality! What elements must a student take into account when determining costs?  There is no way to change the loan arrangement because the student loan is a one-time transaction. Therefore, a student needs to be aware of the costs they can cover on their own and those for which they might require a loan. The student's financial stability at the time of study is of utmost importance, so the loan amount should be chosen with that in mind.  Before assessing the costs, a student must take the following into account:  The price of housing in a specific country and whether it will be possible to live in shared housing for a lower cost of living.  Food prices in the city where the university is situated.  Additionally, a student's ability to prepare meals on their own can significantly lower the cost of tuition.  Since academics are not just available on-campus, the cost of eating out or intercity travel will be included in the total fee.  Many regions, including the US and Australia, have cheap used car markets and reasonable gas prices. In contrast, students in countries like Ireland receive discounts on public transportation. All of this requires preliminary research.  In the city where the university is situated, there are opportunities for part-time employment. There are enticing part-time occupations with regulated minimum earnings in several nations. This assists students in paying for a sizable portion of their living costs.  FAQs on Education Loans and Living Expenses What percentage of living expenses does the loan cover? The percentage can vary depending on the lender, your chosen university's location, and your course duration. It typically falls between 30% - 70% of the total estimated living expenses. Can I apply for a separate loan for living expenses? While some lenders might offer a combined loan, you can explore separate personal loans to bridge any gap between the sanctioned amount and your actual living expenses. However, remember the additional interest burden of a separate loan. Are there any living expenses not covered by the loan? Discretionary expenses like entertainment, shopping sprees, or travel beyond academic purposes typically aren't covered. What documents are needed for living expense coverage? Universities' cost of living estimates, proof of accommodation arrangements (if any), and detailed living expense breakdowns are usually required.

The demand for sending your child abroad is prevalent across India. Indian parents value education over and above every venue of life and are constantly looking for ways to ensure the best for their children. Boarding Schools in London provide a unique foundation. These schools are considered the best and are gateways to some of the best universities in the world. So, if you are a parent browsing for the perfect school for your child, then check out our article on the top Boarding Schools in London, with their unique offerings and yearly fees. Dulwich College: Founded in 1619, Dulwich College is a renowned co-educational school offering boarding options for both day and weekly students from ages 13-18. Yearly fees for boarders start at £38,700. Alongside a rigorous academic curriculum, Dulwich emphasizes creative expression, sporting activities, and a strong sense of community. Harrow School: Established in 1572, Harrow School is a prestigious boys' school known for its academic rigour and rich history. Boarding fees begin at £43,920 per year. Harrow offers a challenging curriculum alongside a vibrant co-curricular program that includes sports, music, and drama. Westminster School: Founded in 1599, Westminster School is a prestigious boys' school with a selective admissions process. Boarding fees start at £42,510 annually. Westminster fosters academic excellence while nurturing well-rounded individuals through a diverse range of extracurricular activities. Mill Hill School: Founded in 1807, Mill Hill School is a co-educational boarding and day school for students aged 11-18. Boarding fees begin at £34,975 per year. Mill Hill promotes a strong academic foundation, focusing on developing critical thinking and creativity. St. Paul's Cathedral School: Established in 1649, St. Paul's Cathedral School is a prestigious boys' school known for its excellent academic record. Boarding fees start at £42,000 per year. The school offers a rigorous curriculum alongside a rich co-curricular program that includes music, drama, and various sports. Top Boarding Schools in UK Investing in Your Child's Future: Saving with Mutual Funds Planning for your child's education requires a long-term financial strategy. Boarding schools in London charge a hefty fee, and mutual funds can be a valuable tool for accumulating the necessary funds over time. Mutual funds are professionally managed investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, and other assets. This diversification helps spread risk and potentially achieve higher returns compared to individual stock investments. Here's how mutual funds can aid in saving for boarding school fees: Start Early: The power of compound interest can significantly grow your savings over time. Starting a regular investment plan early allows you to benefit from compounding and potentially reach your financial goals. Discipline and Consistency: Regular contributions, even small amounts, can accumulate significantly over the long term. Professional Management: Mutual funds offer the benefit of professional expertise in managing your investments, allowing you to focus on other aspects of your child's education. Conclusion London's boarding schools provide a unique and enriching learning environment that fosters academic excellence, personal growth, and global exposure. While the fees can be significant, strategic financial planning with the help of mutual funds can make this educational opportunity a reality. Remember, a thorough research of the schools along with seeking professional financial advice are crucial steps in ensuring your child receives the best possible education Invest Now

As parents, we all want to raise happy, well-adjusted children who reach their full potential. Positive parenting offers a powerful approach to achieve this goal. It's not about spoiling your child, but fostering a nurturing environment that fosters their growth and development. At EduFund, we believe that positive parenting directly contributes to a child's success in education – and ultimately, life. Here, we'll explore what positive parenting is, its benefits, and how to put it into practice, all while laying the groundwork for a bright educational future. What is Positive Parenting? Positive parenting is a philosophy that goes beyond punishment and focuses on building strong, supportive relationships with your child. It's about setting clear expectations, offering encouragement, and fostering open communication. This approach is distinct from authoritarian parenting (strict rules, harsh punishments) and permissive parenting (few rules, limited consequences). Instead, positive parenting creates a balanced environment where children feel loved and respected, but also learn responsibility. Some key principles of positive parenting include: Respect and empathy: Acknowledge your child's feelings and validate their emotions. Boundaries and expectations: Set clear rules and explain consequences consistently. Positive reinforcement: Catch your child being good! Praise efforts and positive behavior. Open communication: Encourage dialogue, answer questions openly, and listen actively. Benefits of Positive Parenting The positive effects of positive parenting are undeniable. Children raised using these principles demonstrate: Stronger emotional intelligence: They understand and manage their emotions effectively. Healthy self-esteem: They develop a positive sense of self-worth and confidence. Improved social skills: They interact effectively with others and build positive relationships. Greater independence and responsibility: They learn to make decisions and take ownership of their actions. Better academic performance: They approach learning with a positive attitude and are more motivated to succeed. These skills translate into long-term success. Children raised with positive parenting are better equipped to navigate challenges, cope with stress, and build fulfilling careers and relationships. Putting Positive Parenting into Action Implementing positive parenting doesn't require drastic changes. Small adjustments can make a big difference. Here are some practical tips: Focus on positive reinforcement: Instead of constantly nagging, praise good behavior and effort. "Wow, you cleaned your room all by yourself! That's amazing!" Use "I" statements: Express your feelings without placing blame. "I feel frustrated when you leave your toys everywhere. Can we work together to find a solution?" Encourage problem-solving: Instead of dictating solutions, guide your child to think critically and find solutions on their own. Practice active listening: Give your child your full attention when they're talking. Validate their feelings and let them know you understand. Set realistic expectations: Consider your child's age and developmental stage when setting rules and consequences. Positive Parenting and Education Planning The principles of positive parenting seamlessly blend into successful education planning. Here's how: Fostering a love of learning: Create positive learning experiences at home through play, exploration and open-ended questions. Encouraging a growth mindset: Help your child see challenges as opportunities to learn and grow. Open conversations about education: Talk about future goals, educational aspirations, and the importance of a strong foundation. Building financial responsibility: Explain the value of investing and how EduFund helps you plan for their education. Join our WhatsApp community to learn more! Conclusion Positive parenting is a journey, not a destination. By fostering a supportive environment and open communication, you'll equip your child with the skills they need to thrive. Remember, positive parenting also contributes to preparing your child for a bright educational future. Explore our tools and resources at EduFund alongside your positive parenting journey, and feel free to share your experiences and ask questions in the comments below! Let's work together to raise confident, capable learners ready to embrace all that life has to offer.

If you are taking an education loan then you have probably heard the term “co-applicant”. But who is a co-applicant? What are the eligibility criteria for a co-applicant? Why do you need a co-applicant for your education loan? Let’s find out!   https://www.youtube.com/watch?v=TJ4qgFj46Uw Importance of an Education Loan Imagine you just got into your dream university in Canada for a master's degree. All your hard work has finally paid off and you are ready to get your journey started. A part of your degree is already covered by scholarships and your hard-earned savings but you are still short on money. In such emergencies, an education loan can be a savior. Education is the security blanket that helps you live your dreams. It can sponsor your entire education or a part of it. Opting for an education loan offers numerous advantages to students pursuing higher education. One of the primary benefits is the ability to fund your education independently. With an education loan, you don’t have to dig into your family savings or exhaust all your savings on your degree.  Furthermore, responsibly repaying the loan helps students build a strong credit score and discipline. Another benefit of education loans often comes with flexible repayment options wherein they can start repaying their loan allowing students to manage the loan efficiently even during their studies. What is the role of co-applicants in education loans? A co-applicant, also known as a co-signer, is a vital component in the education loan application process. This individual co-signs the loan agreement alongside the primary loan applicant (the student) and shares equal responsibility for repayment. The presence of a co-applicant provides a safety net for the lender, ensuring that the loan is repaid even in unforeseen circumstances when the primary applicant may face financial difficulties. Consult an Expert Advisor Who can be a co-applicant? Financial institutions have specific eligibility criteria for co-applicants in education loan applications. Typically, a co-applicant can be a parent, legal guardian, sibling, or any blood relative of the primary applicant. It is essential for the co-applicant to possess an Indian bank account capable of signing cheques. Apart from these basic criteria, lenders consider other factors to assess the co-applicant's financial stability: CIBIL Score: The CIBIL score of a co-applicant plays a significant role in loan approval. Ranging from 300 to 850, a higher score improves the chances of securing the loan. A good credit score indicates strong creditworthiness, ensuring greater reliability in repaying the loan. Income Tax Returns (ITR) Document: Lenders carefully scrutinize the co-applicants' ITR document, which provides essential financial information. This document enables lenders to evaluate the co-applicant's financial health and repayment capacity. Income Proof: For salaried individuals, providing salary slips for the last 6-8 months is a mandatory requirement. Self-employed co-applicants need to submit various documents, including GST registration proof and financial statements of their business, to demonstrate their income stability. Income Amount: The financial institution evaluates the co-applicant's annual income to determine their eligibility for the education loan. Different lenders may have varying minimum income requirements. https://www.youtube.com/watch?v=9EAyvncisU4 FAQs Who is a co-applicant? A co-applicant can be a parent, legal guardian, sibling, or any blood relative of the primary applicant. Is it good to have a co-applicant? Yes, it is good to have a co-applicant. A financially strong co-applicant can increase the chances of education loan approval. Can a co-applicant take another loan? Yes, a co-applicant can apply for other personal, car, or home loans. Can you apply for an education loan without a co-applicant? Some banks have a mandatory clause wherein a co-applicant is essential for your education loan application while some banks are more flexible.

UTI is one of the pioneers of the Indian Mutual Fund Industry. With a quarterly average AUM of Rs 2.72 Lakh crore, the AMC is among the most trusted names in the mutual fund space. The UTI Mutual Fund offers products across asset classes.  Let us get to know about their UTI Nifty 50 Index Fund Scheme.  About UTI Nifty 50 Index Fund  Investment Objective – The investment objective is to invest in stocks of companies comprising Nifty 50 Index and endeavor to achieve a return equivalent to Nifty 50 Index by “passive” investment. However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.   The UTI Nifty 50 Index Fund does not take any active sector or stock exposure that deviates from the composition of the Nifty 50 Index.  Portfolio Composition  The scheme distributes the majority of its investments across financial services, Energy, IT, fast-moving consumer goods and automobiles.  Note: Data as of 29th February, 2024. Source: Value Research  Top 5 Holdings for UTI Nifty 50 Index Fund   Name Sector Weightage % HDFC Bank Ltd. Financial 10.98 Reliance Industries Ltd. Energy 10.29 ICICI Bank Ltd. Financial 7.68 Infosys Ltd  Technology 6.22 Tata Consultancy Services Ltd Technology 4.32 Note: Data as of 29th February, 2024. Source : Value Research  Start a goal for your child's college dreams! Performance Since Inception  Period UTI Floater Fund Nifty 50 TRI (%) S&P BSE Sensex TRI (%) 1 Year 28.03 28.49 24.58 3 Years  15.75 16.15 15.24 5 Years 16.22 16.64 16.48 Since Inception 11.91 12.82 13.03 Note: Data as of 29th February,2024 Source: utimf.com  Fund Manager  Mr. Sharwan Kumar Goyal, who has been managing the scheme since July-2018.  Mr. Ayush Jain is an assistant Fund Manager and has been managing the scheme since May-2022.  Why Invest in UTI Nifty 50 Index Fund?  The scheme is passively managed and invests in stocks that endeavour to generate returns in line with the underlying index, subject to expenses and tracking error. Further, the probability of generating alpha in large cap space is very low due to the availability of a smaller universe of stocks and large base size. Therefore, exposure to large-cap space is recommended through passive investing.  The fund with a track record of over 22 years one of the largest funds in the category fund with one of the lowest tracking error and tracking difference.   Who Should Invest in UTI Nifty 50 Index Fund?  This fund is suitable for Investors  Who are seeking steady capital growth in tune with the index returns.  Who are looking for passive investment in equity instruments comprised in Nifty 50 index.  Ideal Time to Stay Invested   The scheme is suitable for investors with a long-term investment horizon of at least 5 years.  Conclusion  UTI Nifty 50 Index fund is an index-based diversified equity scheme that has delivered a compounded annual growth rate (CAGR) of 11.56% since its inception and the scheme has a relatively lower expense ratio. The UTI Nifty Index Fund offers an accessible option for new investors with a limited budget to diversify their portfolios by investing in India's top 50 publicly traded companies.  Disclaimer: This is not recommendation advice. All information in this blog is for educational purposes only.  Invest Now

UTI is one of the pioneers of the Indian Mutual Fund Industry. With over Rs 2.72 lakh crore average AUM (excluding domestic fund of fund) for quarter ended December 2023, the AMC is among the most trusted names in the mutual fund space. The UTI Mutual Fund offers products across asset classes. Let us talk about the – UTI Conservative Hybrid Fund.  About UTI Conservative Hybrid Fund  Investment objective – The scheme's primary objective is to invest predominantly in debt and money market instruments and part of the portfolio into equity/equity-related securities with a view to generating income and aim for capital appreciation.   Note: There is no assurance or guarantee that the investment objective of the scheme would be achieved.   Investment Process   The Fund aims to earn accrual income by investing approximately 75% of its assets in debt instruments. It follows tactical allocation to invest among corporate debt, government securities (G-Sec), and state development loans (SDLs), guided by the fixed-income strategy of the fund manager.  Source: UTI MF  Portfolio Composition  As a hybrid fund, the funds are allocated to equity, long-term debts, government securities, Cash and Cash Equivalents. As of 29th Feb 2024:  72.63% of the portfolio is allocated to debt  24.36% of the portfolio is allocated to equity,  3.01% of the portfolio is allocated to cash and cash equivalents.  Equity Allocation The equity fund allocated 71.27% to large-cap funds, 25.62% to mid-cap, and 3.11% go into small-cap.   Note: Data as of 29th Feb 2024. Source: Value Research  Top 5 Equity Holdings for UTI Conservative Hybrid Fund  Name Sector  % HDFC Bank Ltd. Banking 2.18 ICICI Bank Ltd Banking 1.40 Infosys Ltd IT 1.33 Axis Bank Ltd Banking 1.06 Bharti Airtel Communication 0.96 Note: Data as of 29th Feb. 2024. Source: Value Research  Debt Allocation:  Top 5 Debt Holdings for UTI Conservative Hybrid Fund  Name Sector  % GOI Sec 7.18 14/08/2033 GOI Securities 12.82 NABARD SR 23I Debenture 7.62 Debenture 6.33 PFC Ltd SR 223 Debenture 7.64  Debenture 4.79 HDFC Bank Ltd SR AB002 Debenture 7.97 Debenture 3.22 REC Ltd SR 220-B FRB 7.69 Floating Rate Bond 3.20 Note: Data as of 29th Feb. 2024. Source: Value Research  Performance Since Inception  Period UTI Conservative Hybrid Fund (%) Nifty 50 Hybrid Composite Debt 15:85 Index (%) CRISIL 10 Year Gilt Index (%) 1 year 13.68 11.49 9.42 3 years 9.80 7.46 4.36 5 years 8.39 9.30 6.21 Since Inception 9.32 8.44 5.61 Note: Fund performance since launch; Inception Date – 16th Dec. 2003. Returns are of direct plan. Source: UTIMF  Fund Manager  Mr. Jaydeep Bhowal holds CA degree from ICAI and also PGDFM from Welingkar Institute of Management, Mumbai. He is the vice president began his career with UTI in November 2009. He has more than 10 years of experience and had been involved in various roles at UTI.   Who Should Invest?  Investors with lower risk appetite, seeking alternative to traditional investment options like FDs.  Investors seeking moderate participation in equity with relatively lower overall portfolio risk.  Why Invest?  Around 75% of the portfolio invested in debt securities with tactical allocation to corporate debt, G sec and SDLs based on overall fixed income strategy of fund house.  Fund manages the bond duration dynamically with investment across various maturities.   It focuses on high quality corporate debt securities to minimize the risk.  Portfolio diversification with distinct asset classes of equity & debt.  Time horizon  Investors with a time horizon of three years and above.   Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Click here to start investing for your child's college! Conclusion  The equity portion of the fund's portfolio is managed actively with a bottom-up stock-picking approach, while the debt portion is managed with a focus on credit quality and liquidity. The fund has consistently performed with a CAGR of 9.32% since inception, while having moderate risk. Investors with low risk appetite can consider this as an alternative to traditional fixed deposits for long term capital appreciation.  Disclaimer: This is not recommendation advice. All information in this blog is for educational purposes only.  Invest Now

Your child needs a good school to be educated and gain skills to manage life challenges and become a better person. But it's tough to decide which is the best school for your child. The dilemma strikes between choosing a boarding school or day school.  The boarding school or day school debate is not new but is an essential pillar to choosing what is best for your child. Before we compare both the categories, let us have an understanding of what a boarding school and a day school are.  What is a Boarding school? A boarding school refers to an academic institution where students can stay full-time and do all their school activities. The students and teachers both stay within the school campus in their particular hostels.  A boarding school pays attention to holistic student development apart from academics. There are also girls-only or boys-only boarding schools within India that cater to the education of a particular gender.  Best International Boarding Schools in India Read More What is a Day school? A day school refers to an educational institution where students study within their particular classes throughout the day hours. They involve themselves in all the co-curricular, sports, and academic activities while staying in their houses.  The general day schools run from morning and go up to afternoon when teachers impart education with the primary focus of polishing the academic background of the students. Once school is finished, students can go back to their respective homes and spend time with friends and families.  Benefits of Day Schools Read More Boarding school or Day school? Boarding school and day school debate has been constant in the field of education. As the two institutions of giving education are different, parents often remain conflicted when it comes to choosing a school for their child.  The central and most important aspect of education refers to the round development of students. It is something that both these schools and boarding schools can ensure. But, there is an additional breakdown of boarding schools or day schools that may just help you make an informed decision as a parent.  Pros of Boarding school Let us begin by taking a look at the advantages of a boarding school for your child:  A boarding school provides round-the-clock development and education. They are strict about homework so you can rest assured that your children are getting it done in an environment free from destruction.  Boarding schools help foster independence. It cultivates self-reliance and gets the children used to the concept of staying away from home.  It is a perfect solution when it comes to busy parents. It provides the ideal solution for career-concentrated parents who are conscious that their kids are adequately supervised and encouraged to take part in many out-of-school activities.  Cons of Boarding school Now, let us understand the disadvantages of boarding schools:  Homesickness is going to strike the students at some point. They will stay away from home in an unfamiliar environment for the first time and it will take some time for them to get used to the new situation.  The cost of boarding schools is significantly higher. It costs a lot more than day school.  Parents think that they will be less involved in the upbringing of their children. They will relinquish many decisions that they would normally consider about their child. Pros of Day school Let us turn our attention to the day schools now. Here are some of the advantages:  You are going to see your kids every night and every morning when they wake up. Your kids can discuss any concerns with you.  The cost of day school is much more affordable than boarding school. It is one of the major arguments when it comes to the favor of sending your kids to day school apart from boarding school which is quite cheaper.  Cons of Day school What comes with advantages also comes with some disadvantages. Here are some of them:  Day school puts more demands on your time. This indicates that if you are a career-oriented person it will make it challenging for you to put the required time into taking care of your children.  Day schools also anticipate more parental involvement in parent-teacher meetings and other such occasions.  Daily transportation costs and daycare activities are other factors to consider when sending your child to a day school. How to make a decision: Boarding school or Day school? If money is not a restriction for you and you look forward to your kid being entirely immersed in the educational environment, a boarding school has much more to offer and is worth considering. On the other hand, a day school is the right option for you if you want to be more involved in daily educational activities!  FAQs Is boarding school better than day school? Boarding schools are a great option for parents who are constantly moving and want to offer their kids stability. Boarding schools provide a holistic learning environment and can do wonders for your kids' routine and, development growth. Both have their advantages and disadvantages, based on your preference you can opt for the type of schooling that agrees with your kid and your lifestyle. What are the advantages of day school than boarding school? The biggest advantage of day school is that your child can spend more time with you at home. They can develop hobbies after school, enroll in classes, and even develop social skills and networks separate from their school life. Is boarding school good or bad? Boarding schools have their pros and cons. Pros: They are great learning institutes that teach independence, and routine and contribute greatly to one's development and growth. Cons: Students may experience peer pressure, and separation anxiety and may experience loneliness because they are away from their parents and family.

Surprisingly, INR 1 lakh in 2001 is only worth about INR 27,000 today due to inflation. This means that the effect is exactly like compound interest since inflation happens on top of inflation from the prior year. In this blog, we'll examine the reasons why this happened as well as what will be the value of 1 lakh after 20 years. What will be the value of 1 lakh after 20 years? Simply said, with 1 lakh rupees of money 20 years ago, you could have bought a lot more than you can today. As a result, even if you can acquire 1 lakh rupees or more after saving for 15, 20, or 30 years, its actual value would be substantially lower.1 lakh would be worth roughly INR 48,000 in 15 years, assuming a 5% inflation rate. Additionally, the value decreases even more with a longer time horizon. Assuming an annual inflation rate of 5%, the value of one lakh will be about INR 37 thousand, INR 29 thousand, and INR 23 thousand after 20, 25, and 30 years, respectively. The answer is to set aside money that is adjusted for inflation. You must first inflate the goal's cost to determine the criteria for that. Start a SIP after that to begin saving for the inflated goal cost. How can SIP make you rich? SIP can be used to invest in long-term equity. You may use it to routinely make small mutual fund investments without attempting to time the market. It would be advantageous if you kept up with SIPs during both the bull and bear market periods to accumulate money. Let's take a look at an example of how SIP may make you rich Think about investing INR 10,000 in an equity fund every month. You may build an INR 3.53 crore corpus if you invest just INR 10,000 per month through a SIP in an equity fund over 30 years. Compounding power increases money and helps you become wealthy. To develop a sizable corpus for retirement, you will need to start saving early so that you may do so throughout your working life. Please be aware that we've projected a 12% average return from the equity fund. The markets and the fund might affect actual results. Value of 30 lakhs after 20 years READ MORE What is inflation? Inflation is sometimes quantified in generic terms, such as the overall increase in prices or the increase in the cost of living throughout a country. However, it may also be computed more precisely for certain products, like food, or services, such as haircuts or travel expenses. Inflation, regardless of the setting, is a measure of how much a certain set of products and services have grown in price over time. According to inflationary pressure, you should expect to pay more this year than you did last year for the same products and services. You can benefit if you had the assets before the price increase, such as houses and stocks. But your purchasing power decreases if your income does not keep up with inflation. Over time, inflation increases your cost of living, and if it is severe enough, it may be detrimental to the economy. For a nation's economy, high inflation has far-reaching effects. Calculate Mutual Fund SIP Returns Assessing the impact of inflation Let's calculate how much you would need to have in 10, 15, 25, and 30 years to equal the wealth valued at INR 1 lakh now. In 10 yearsIn 15 yearsIn 20 yearsIn 30 yearsEquivalent Corpus22.85.47.6Multiplication Factor22.85.47.6 Consider your child's further education as an example. Assume it costs INR 20 lakh at the moment. Assume once more that he would attend college in 15 years. Now you need to calculate how much this education which currently costs INR 20 lakhs will cost in 15 years. Utilize the 2.8 multiplicands from the chart above. To pay for your child's further education after 15 years, you would need a corpus of (INR 20 lakhs * 2.8) = INR 56 lakhs How to fully secure yourself and your family's future? You need to be more calculated and cautious if you're going to save money for your post-retirement lifestyle. In addition to inflation, you must take into account the likelihood of surviving past your planned retirement age and changes in interest rates. You should review and reevaluate your goals. Working with actual figures is necessary. You may speak with financial experts at EduFund if you're unsure about where or how to invest. By using EduFund to invest your money, you can support the dreams of your kids. Install the EduFund app on your device to book a free consultation call with the experts. To avoid having their child's bright future ruined by education inflation, parents may start saving for their child's college education early on. Related reads: What is the value of 30 lakhs after 20 years? What will be the value of 1 crore after 20 years? FAQs What will be the value of 1cr after 20 years? If we assume an inflation rate of 5%, the worth of Rs 1 crore after 20 years is about Rs 37 lakh! What will be the value of 1 cr after 15 years? If we assume an inflation rate of 5%, the worth of Rs 1 crore after 15 years is about Rs Rs 48 lakh. What will be the value of 1 cr after 30 years? The value of 1 Cr in 30 years will decline and become Rs. 23 lakhs due to inflation. What will be the value of Rs. 1 lakh in 15 years? 1 lakh would be worth roughly INR 48,000 in 15 years, assuming a 5% inflation rate. What is inflation? Inflation is sometimes quantified in generic terms, such as the overall increase in prices or the increase in the cost of living throughout a country. TALK TO AN EXPERT

Planning the investment journey is an important decision that one makes in their lifetime. All of us invest to achieve important goals such a buying a house, buying a car, financing children’s education, getting married, retirement planning and many more. Apart from the financial element here, these goals are also emotionally important to us. As such, we make sure to put in the best research and invest our money. Mutual funds are a popular choice amongst investors, given their returns, liquidity and professional management. An important question that comes up in the minds of us investors here is, ‘What is the right time to invest in mutual funds? At the outset, let us answer this question – the moment you decide to start your investment journey is the right time to invest in mutual funds. Before we delve further into this, it is important we understand more about mutual funds. Let us begin with the basics! Investment in mutual funds can be done in 2 ways! SIP - Systematic Investment Plan   Lumpsum.  SIP – is a pre-decided amount that will be deducted periodically from the registered bank account on the specified date.  Lumpsum: a single sum of money, typically invested at one time rather than in smaller, periodic instalments.  Now let us look at the parameters that one should bear in mind before planning their investments (Note: these parameters are not all-inclusive but are among the important ones).  Purpose of Investment:  When you start investing; the investment objective should be clearly defined. Distinguish if your goal and its time horizon are definitive or flexible. If you aim for higher long-term returns, you should be open to taking on more risk and might consider investing in pure equity funds. On the contrary, if your goal is capital protection, you can consider low-risk investments that offer relatively lower returns.  Investment Horizon:  Different categories of mutual funds are available depending on your time horizon, with debt funds suitable for short-term and pure equity funds for a long-term horizon. Mutual funds do not come with any lock-in period except ELSS funds, which have a lock-in period of three years. An aggressive or riskier portfolio can be built if your investment horizon is longer, but if your investment horizon is relatively shorter, then conservative funds are more apt.  Let us understand the different horizons (Note: these serve only as a general point of reference and can vary based on personal factors)  Short-term Investment Horizon: The short-term investment horizon refers to an investment expected to last about one to two years. This investment would be appropriate for investors whose retirement is near, may need large sums of cash soon and need to park their money. Debt funds can be a suitable choice for this type of horizon as they are relatively less risky and can be liquidated more easily.   Medium-term Investment Horizon: The medium-term investment horizon refers to an investment expected to last about three to six years. This investment would be appropriate for investors who want to save for their personal goals such as buying a car, school/college fees or marriage. Given a medium-term horizon, hybrid funds can be considered suitable investments as they provide exposure to both equity, which provides higher return potential and debt, which provides portfolio stability.  Long-term Investment Horizon: The long-term investment horizon refers to an investment expected to last six or more years. Goals such as wealth creation, buying a house and a child’s education planning are generally considered long-term. Pure equity funds are appropriate instruments in the long term as volatility smoothens out, providing balanced risk-adjusted returns.   Risk tolerance: Every fund has different risk characteristics. Few asset classes are risky, such as pure equity funds, whereas other asset classes, like debt funds, are relatively less risky. Depending on its category and style of management, each mutual fund carries a unique amount of risk. An investor should decide which asset he can invest in depending on his risk appetite and financial ability.  Coming back to our primary argument of ‘What is the right time to invest?’ and why it is advisable to start as early as possible. The answer is simple – Compounding. Postponing the investment diminishes the power of compounding.  Let us understand the power of compounding with a simple example of three friends who invest Rs. 2000 per month. Their retirement age is 60, but they start investing at different ages.  Person Age Investment term (years) Investment Amount (INR) Future Total Value at Retirement (INR) A 25 35 8,40,000 1,29,90,538 B 30 30 7,20,000 70,59,828 C 35 25 6,00,000 37,95,270 Source: EduFundNote: Assumed rate of return is 12% p.a.  Even though they have all earned the same rate of returns per annum on their investment, A, who started investing early, has a considerably higher corpus at retirement. Another surprising fact is if ‘A’ stops his SIP when he is 55 (i.e. a 30-year period) and leaves that amount to compound till he is 60, he still would have a higher corpus than ‘B’ and ‘C’ of Rs. 1,24,41.828. Therefore, starting the investment journey early is a boon if you want to build a considerable corpus for your financial goals.  Join our WhatsApp community to learn more! To conclude, there is no perfect time that is ideal for an investment. We should cultivate the habit of investing regularly and with discipline. The two mantras to achieve your financial goals are: The best time to invest is now, and the best way to invest is regularly.  Start Early, Invest Now!

Financial planning is crucial when discussing the ideal investment to secure your child's future. Parents strive to provide their children with the best financial stability. Rightly planning out costs and selecting suitable investment options is one of the most effective techniques for achieving this goal.   The cost of education in India has been rising significantly. Studies suggest that the inflation in the education sector has been between 11-12 % annually over the last decade. These figures indicate that the costs of school can double every six to seven years. Creating a robust financial cushion is the best approach to beat this growing education inflation. Several options in India are designed specially to cater to the needs of children.   Investing in your child's future is a significant responsibility of a parent. It is crucial to make informed decisions while selecting any option. Here are the investment options available.  Sukanya Samriddhi Yojana: This Yojana is a government supported initiative and it was launched as a part of the “Beti Bachao, Beti Padhao” campaign. Here, the investment value is a Minimum of 250 and a Maximum of 1.5 lakh per annum. The current interest rate is 8.2% per annum. The maturity duration is 21 years from the account opening or upon the daughter's marriage. Investors get tax benefits under Section 80C, and also the interest and maturity values are tax-free.  Real Estate: Apart from investing only in property, one can now invest in REIT (Real Estate Investment Trust) and Real Estate Funds. Investing in REITs provides substantial dividend income and delivers steady capital appreciation over the long term.  Gold: Indian households are famous for investing in physical gold. Alternatively, parents can also choose between gold ETFs and sovereign gold bonds (SGBs) as a promising avenue for long-term investment. These avenues can be more profitable than physical gold as one saves costs on making charges and misses out on the 2.5% annual interest received on SGBs (2023-24 series IV SGBs).   Bank deposits: Historic tools of investment available in the market to earn regular and steady returns. Parents can invest for a more extended period; however, the return on it will not beat the rising inflation with the nominal return it delivers.  Mutual Funds: In mutual funds, we have options based on individual financial position, time horizon and risk tolerance. Equity mutual fund investments rank high among children's investment plans. As we know, mutual funds deliver better returns than other investment options available in the market. Historically, it has provided 12%-15% annualized returns.   Join our WhatsApp Community! We'd like to point out that mutual fund investments offer distinct advantages over real estate, gold, and fixed deposits. They provide diversification, liquidity, and professional management, reducing risk while potentially offering higher returns. Unlike real estate, mutual funds require a lower initial investment and entail no maintenance costs. Compared to gold, they tend to offer greater returns and accessibility. Additionally, mutual funds typically outperform fixed deposits, offering the potential for inflation-beating returns over the long term.  With proper planning and strategies as an investor, one can make decisions that accurately reflect investing goals. An investor can set a step-up SIP to get better returns. With mutual funds, the longer you stay invested, the better you will get.  Learn about asset allocation in 2 mins! Benefits of investing in a mutual fund Mutual funds are managed by fund managers who have professional expertise. A fund manager continuously monitors the investors' investment and rebalances the portfolio to meet the objectives.   Mutual fund investments offer an easy way to diversify your investment portfolio. With the benefit of diversification, the risk associated with one security is countered by others. By investing here, investors will ensure they are not putting all their eggs in one basket.  For many investors, investing directly in an asset class requiring large amounts can be daunting. A mutual fund provides the benefit of investing in small amounts. An investor can start investing with as little as 100 rupees investment in a mutual fund.  Mutual funds are also on the liquid end of the spectrum; an investor can redeem the amount quickly if required. Redemptions are settled on a T+3 basis. Mutual funds also provide tax benefits under section 80C of the Income Tax Act, 1961, if you choose to invest in ELSS funds. Mutual fund investments are tax-efficient when held for a longer period.  Join our WhatsApp community to learn more! If you read this, you would have understood that there is no single definition of 'best investment for kids'; instead, it is based on your future financial requirements, time horizon, and risk appetite. As a parent, remember to diversify, rebalance, and reallocate your investments periodically. Doing this will significantly reduce the effect of market volatility on your portfolio. If you are a young parent and starting the investment journey for your kids, consider investing in equity as an early investor to get relatively higher returns. Remember to bring discipline to savings and stay invested for the longer term.  If you are a parent looking for the best investment options for your kid's future, you are at the right place. Please book your meeting and connect with our wealth advisor.   Happy investing! 

Did you know that international students have to pay college fees on top of tuition fees to study at Cambridge University? This is why you need to save to send your child to Cambridge University. UK’s oldest and top institute with the lowest acceptance rate and skyrocketing tuition fees – getting admission at this college is not enough. From expensive tuition costs to living expenses costing £12,400 on average (11-12 lakhs yearly), the need to invest and save is urgent! Suppose, if your child goes for an MBA in this university, he or she will have to pay Rs 58 to 59 lakhs per year for tuition fees. Similarly, if your child is going for BTech or MBBS here, he or she will have to pay somewhere around Rs 33 – 58 lakhs per year for tuition fees. How do you need to save to send your child to Cambridge?  1. Preparing an education fund  Preparing an education fund helps in growing your financial corpus. You can do this by investing in financial assets which have a longer-term plan. These plans include mutual funds, ETFs, and so on. Start by deciding your monthly budget. Choose an investment plan which suits your need and budget. Make sure that you do not invest in a plan which offers low returns. ULIPs are a really good option if you are saving up for your child’s education at the University of Cambridge.   Public Provident Fund is another great option that you can go for. Parents prefer going for PPF because it provides a specific interest rate and is extremely secure. Apart from this, you must always prepare a long-term investment option.   Start Investing in Mutual Funds 2. Balanced investment options  Fixed deposits are great ways to invest but do not beat inflation. You cannot rely on them for the long term since they provide fixed returns of 5-6% while inflation in the current economy averages around 7-8%. The chances are that as an investor, you will lose the opportunity to gain from the markets.   Equity funds will be a good option for you if you start early as a parent. Around eight to ten years are required for you to build the right amount of corpus. You can go for SIPs in equity funds because they have a good return value and do not require heavy sums of money in one go.   Equity exposure until five years to the date of maturity can prove to be extremely beneficial. In the last decade, equity mutual funds have delivered an average return of 15%.   If you consider yourself a moderate-risk investor, you can still invest 60% to 70% of your total investment amount in equities. Make sure that you have a sufficiently long investing horizon so that you can counter crashes and volatility. Remember investing is risky but a good plan and a great advisor can help you manage your money better even in the worst climate.    Start Investing in US Market 3. Aggressive investment options  Equity investment leads to higher risk but also good returns. If you want to add more options to your portfolio, you can go for aggressive investments. In such a type of investment option, the investor takes on more risk to that he or she can achieve a higher potential return. Investing in stocks is a way of doing so. Although it is quite volatile and requires daily inspection, it has the potential to offer a chance for greater gains when compared to other types of investment.   Some other types of aggressive investment options are stock mutual funds, real estate investment trusts, hedge funds, emerging markets, small-cap stock funds, private equity, foreign stocks, global funds, and so on.  There are many ways to save to send your child to Cambridge but all start with smart planning for the right cost with the right experts. If you want the best for your child’s education, connect with us!  FAQs What are the fees of the University of Cambridge in Indian rupees? Tuition fees - 21.57 - 56.31 lakhs. Is Cambridge expensive for students? Ans. Yes, the University of Cambridge is generally considered expensive for students due to tuition fees, living costs, and other associated expenses. However, scholarships, grants, and financial aid options are available to help mitigate the costs for eligible students. How much does it cost to go to Cambridge for 4 years? Ans. The expected four-year cost of tuition for members of the class of 2026 who were admitted in the fall of 2022 is $71,364. The anticipated four-year cost of enrollment, including living expenses and personal fees, is $132,625. Talk to Our Experts