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Everyone wants a slice of the American Dream and with globalization, benefiting from the world's largest economy is no longer just a dream. Now Indians are investing in US markets from the comfort of their homes yet there are some common mistakes to avoid when investing in the US stock market that you should know before entering! The US stock market offers significant opportunities for investors worldwide, from selected securities to exchange-traded funds across a variety of indices and themes.  However, before you invest in US equities, you need to know how to prevent the following US stock investing blunders. While some will be similar to stock market investing blunders to avoid if you're a newbie, others will be exclusive to supporting in the United States.   Ten mistakes to avoid when investing in the US stock market  1. Holding only equities  While it is natural to desire to invest in a few of the world's most well-known companies, focusing solely on choosing specific equities is one of the most common mistakes to make when investing in the United States.  Your investing strategy should be customized to your risk tolerance and include a nice blend of equities and exchange-traded funds (ETFs). If you're new to the stock market in the United States, you should begin with an ETF-only strategy.  2. Lack of investment goals  A lack of adequate investment goals is among the most prevalent blunders when investing in global stock markets. You must carefully craft your investment goals and use the most suitable financial tools to attain them.  3. Going with the trend, don't  Please do not purchase a stock simply because it has come up in the press or because you believe you have already lost money due to a company's surge and therefore cannot afford to lose any more. Remember, you're investing in a company, not a stock.  4. Timing the market  Another classic stock-trading gaffe is attempting to time the market. It's difficult to gauge the demand, and experienced investors frequently make mistakes.   According to an American Pension Fund Returns study, correct asset allocation accounts for roughly 94 percent of portfolio returns, not market timing or individual stock selection.  5. Ignoring tax liabilities  Keep in mind this flowchart  6. Not knowing forex rates  The exchange rate is essential when depositing Indian cash into your US brokerage account. Your bank will also charge you a foreign exchange conversion fee.   As a result, it's best to go with a platform that has partnered with banks to offer better exchange rates and a reduced markup cost.  7. Violating LRS regulations  The LRS regulates how much money an Indian person can send abroad and for what purposes. An Indian cannot use margin to invest internationally, in speculative products, or trade-in FX pairs under the LRS.  8. Asset class allocation   The secret to a good investment portfolio is asset allocation. On the other hand, investors make the typical mistake of focusing on individual equities rather than doing adequate asset allocation.  9. Over diversification   When used correctly, diversification is an excellent risk management technique. When assets have various risk profiles and little correlation, it add value.   Over-diversifying, on the other hand, can be counterproductive. Adding US equities ETFs to a diverse US stock portfolio, for example, may well not make sense.  10. Being impatient  Long-term investing requires only 1% action and 99 percent patience. On the other hand, many investors lack patience and wind up constantly fiddling with their portfolios.   To maintain a disciplined attitude, you must look past short-term volatility and concerns and focus on the market's long-term growth potential.  Morgan Housel, in his book “The Psychology of Money”, modifies a quote from the great Napoleon while talking about investing:   "A good definition of an investing genius is the man or woman who can do the average thing when all those around are going crazy."  Keep the above mistakes and the quote in mind if you want to get the most out of your investment in the United States. FAQs What are some common mistakes to avoid when investing in the US stock market? Here are some common mistakes to avoid when investing in the US stock market: Lack of investment goals and a time horizon Blindly following trends and investing randomly Violating LRS regulations and not consulting your CA in terms of taxes Over diversification and investing in multiple stocks Being impatient and over-monitoring the markets What are 5 mistakes investors make? The most common mistakes that investors make are: An attempt to time the market and wait for the right time to invest, Try active trading Misunderstanding financial markers and performance details, Working alone or choosing the wrong investment advisor Not attempting to understand the tax dynamics and liabilities What is the golden rule of investing? The golden rule of investing is greater the risk, the greater the returns! A bonus rule is always to consult your financial advisor before investing your money in any scheme. Consult an expert advisor to get the right plan for you  TALK TO AN EXPERT

You already saw the difference between exchange-traded funds and Mutual funds. Now, let us focus on the difference between ETFs and stocks. Investors have many choices to invest in to grow their wealth in today's day and age. The list is virtually unending when investing in stocks, bonds, mutual funds, ETFs, etc.   Investors want to see investments grow; thus, each has many advantages and disadvantages.  Retail investors can choose from stocks and ETFs. Both are available for trading on the stock market. The stock offers ownership in a single firm; an ETF gives you a basket of securities depending upon the type of ETF. Thus, ETFs provide access to virtually any part of the financial market. ETFs are collections of stocks, bonds, commodity derivatives, and other investments traded on an exchange. Source: Freepik What is the similarity between ETFs and Stocks?   ETFs and stocks are taxable upon redemption. Both offer a steady income.  After applicable tax deductions, some stocks pay dividends to the investors' accounts. Similarly, the assets underlying the ETFs also generate dividends and returns, either invested back into the fund or given back to the investors after proper deductions. There are various sectors to choose stocks and ETFs from. Similar to stocks, ETFs can also be traded on the stock exchange. Difference between ETF and Stock? ETFs are a group of securities packaged as a unit and listed on the exchange. These assets need not be only stocks but can be any security.  Fund managers who own the underlying securities manage these ETFs. The concerned investors of the ETFs do not own the underlying assets directly and hence give no ownership and voting rights. Stocks listed on the exchange offer ownership and voting rights (if they are not preferencing shares) in a single company. Preference shares are the shares that give the investor a promised return at the cost of forgoing voting rights in the AGMs.  ETFs are managed by a professional, thus saving you the trouble of deciding which securities in the underlying assets of the ETF to sell or hold. In the case of stocks, investors need to be very vigilant in the market to know when to buy, sell, or hold.   In the case of ETFs, investors do not control what happens to the portions of the ETFs. ETFs have a diversified profile of assets, and the risk associated with the investment reduces significantly.   In stocks, the risk attached is higher as the stock price depends entirely upon the company's performance and other exogenous (outside the control of the person in question) factors of the world.  The liquidity of a stock is way higher than the liquidity of an Exchange Traded Fund. However, in rare cases, the latter can have higher liquidity than the former. FAQs Is an ETF better than a stock? Investing in an ETF is less risky than investing in a stock, as ETFs are diversified. In the case of ETFs, investors do not control what happens to the portions of the ETFs. ETFs have a diversified profile of assets, and the risk associated with the investment reduces significantly. In stocks, the risk attached is higher as the stock price depends entirely upon the company’s performance and other exogenous factors of the world.    Are ETFs good for beginners? ETFs are generally suitable for beginners as they are inexpensive compared to a few other investment tools. ETFs have a diversified asset profile, reducing the risk associated with the investment significantly.    Which is safe, ETF or stocks? ETFs have a diversified profile of assets, and the risk associated with the investment reduces significantly. In stocks, the risk attached is higher as the stock price depends entirely upon the company’s performance and other exogenous (outside the control of the person in question) factors of the world. The liquidity of a stock is way higher than the liquidity of an Exchange Traded Fund. However, in rare cases, the latter can have higher liquidity than the former. Have ETFs considered stocks? ETFs are a group of securities packaged as a unit and listed on the exchange. These assets need not be only stocks but can be any security. Fund managers who own the underlying securities manage these ETFs. What is a disadvantage of an ETF? ETFs attract fees and, like any other investment, carry an element of risk. An investor should conduct proper research before making an investment.   Should I put all my savings into ETF?   It is extremely dangerous to put all your savings into one asset class. As the popular saying goes, ‘Don’t put all your eggs in one basket,’ investors should look to diversify their portfolios.  Is it good to do SIP in ETF?   While investing in ETF, you can invest via SIP or lump sum. Investing through SIP offers investors many benefits. It helps investors stay committed to the goal for a long period and helps them invest regularly.   Is ETF better than a mutual fund?   ETFs and mutual funds are two different investment vehicles for investors. ETFs are both actively and passively managed, but most are passively managed. Most mutual funds are actively managed by fund managers. An investor needs to understand what an investment vehicle offers and how it can help them reach their goal. There’s no right answer to this question, as it differs based on an individual’s financial goals.   Conclusion that every investment decision should be backed by the study of the risks involved.  The investor should keep his risk profile in mind before proceeding.   Most importantly, the strategies and goals of the investor are vital when choosing securities. The right for one might not be the right choice for the other.   Keeping these fundamental similarities and differences in mind helps in better decision-making. Consult our expert advisor to get the right plan for you. TALK TO AN EXPERT

The abroad education loan process can prove tricky if you are not aware of the intricate details about the steps involved in the procedure, for example, how to apply, the documents that need to be submitted, and the time to get the loan process approved.  Education loans are one of the common sources of funding education abroad in recent times. As education inflation is reaching new heights and education costs are rising day by day, one can consider applying for education loans to support their already existing savings. An overview of the abroad education loan process Each year thousands of students apply for an abroad education loan as they want to pursue further studies at top universities of the world. The biggest challenge is arranging funds through education loans, as the cost of studying and living abroad is very high.  Students in India can apply for secured education loans from government banks, private banks, PSU banks, and unsecured loans from non-banking financial corporations. Students also have the option of getting education loans from foreign banks that offer loans to non-native students for global education. How to apply for an abroad education loan process? Fill out the online application form provided by the bank that you have shortlisted for the education loan. Visit the bank and confirm all the documents that will be needed by the bank for forwarding the loan process further. Gather all the required documents in a file and submit them to the proper authority in the bank. Enquire about the lawyer and valuator and get the legal opinion and valuation report from the lawyer and valuator, respectively, which will be later submitted to the bank by the valuator. The complete documents are then sent to the loan processing cell, and the processing officers go through the submitted documents and verify the loan application. The bank then sanctions the loan, and the loan applicant will have to visit the bank and sign all the necessary documents.  Post visa approval, applicants will have to revisit the bank and complete the property mortgage process if any property has been mortgaged against the loan.  Funds are disbursed after signing a disbursement agreement.  Applying for an abroad education loan through the Edufund app is simple. Submit all the documents and the loan application form once you have received the offer letter from a university. As soon as you clear the eligibility criteria, the loan gets approved, and you can sign the loan agreement. Documents required for applying for abroad education loan process The financial institution where you have applied for the abroad loan application will require details of the applicant and the co-applicant.   Properly-filled application form. Documents confirming identity details and residence proof of the applicant and co-applicant. It can be a passport, voter ID, pan card, driving license, or Aadhar card that would show personal details and current address. Passport-size photographs of both the applicant and the co-applicant Academic documents of the applicant that depicts the total academic and professional experience.  This includes mark sheets and certificates of class – 12, graduation, and the results of the admission test that the applicant has taken, like SAT, TOEFL, LSAT, GMAT, IELTS, or GRE.  The acceptance letter that the applicant has received from the university is the admission proof for studying abroad. Last six months' bank statements of the applicant and the co-applicant. Income proof of the co-applicant that shows that they are capable of fulfilling the terms of loan payment in case the applicant is unable to do so. In the case of collateral, the property title deed, building approved plan and NOC for a mortgage from the builder is needed.  Time required to get the loan process approved It takes nearly 45 days to 2 months to start the processing for the submitted loan application. Edufund has tied up with several top banks in the country and can process the loan in comparatively fewer days. The experts associated with the app will negotiate on your behalf and get the best possible offer on loan rates.  Conclusions  Students who are aware of the various steps involved in the abroad education loan process can plan, prepare and take full advantage of the knowledge so that the application process for the loan procedure is smooth, fast, and quick.  Take the help of the experts on the Edufund app to choose the best possible education loans with top banks. Qualified counselors will help to make the process smooth and easy and ensure that the education loan is available on time at the best possible rates. There are no hidden costs and zero commission, which will help to save on unnecessary fees.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Education has become very expensive in India. SIP plans for child education are the solution! Statistics show that educational inflation is around 11% in the country today, and the cost of education is expected to soar in the future. A report by the National Sample Survey Office (NSSO) during the period of 2008-14 stated that the annual cost of education burgeoned by 2.75 times when compared to 2008, whereas the per-capita income had only increased by 2.49 times, indicating the mismatch in the income growth and the increase in the cost of education. High tuition fees coupled with the difficulty of paying bills and staying independent cause highly qualified and bright minds to even refrain from applying to colleges. Tuition rates are increasing all over the world and are rising faster than the growth in per capita income. Looking at these expenses from an exchange rate perspective, rupee owners will always have a disadvantage in terms of the cost of overseas education due to our country’s current account balance, relative interest rates, and inflation which cause a weakening of the Rupee. In the near future, the trend would continue hence ballooning the fees even further. Investing is a mantra that can be followed to rise above the tide of this soaring educational inflation. A wealthy corpus is accumulated and the effects are more prominent when the investor starts saving at an earlier stage owing to the compounding effect. What is SIP?  SIP is a Systematic Investment Plan. It is a facility offered by mutual funds to investors to invest in a fund properly. With a SIP facility, investors can invest a fixed amount of money in pre-defined intervals.  SIP is the perfect method of investment for newcomers and risk-averse investors – it allows you to participate in the market without timing it or worrying about its highs & lows.   Note that the fixed amount of money can be as low as INR 500. The SIP route to investment is necessary as it helps you to invest in a time-bound manner. There is no need to worry about market dynamics when you are investing via SIPs.  Calculate Investment using SIP Calculator Reason to invest in Mutual Fund Scheme for child education 1. Reduce the financial burden This forms a habit of investment discipline by debiting a fixed amount from your bank account at every periodic interval. This also prevents a lump sum or a sudden outflow of money from your pocket, hence maintaining financial stability. 2. Start investing in small amounts Most SIPs start at a minimal amount of Rs 500, which enables the investors to save for their child’s future – one penny at a time. 3. Rupee cost averaging By investing through SIP, one can also benefit from rupee cost averaging – where the cost of purchasing a unit of the fund is averaged over the time horizon thus protecting its investors from volatile market conditions and price fluctuations. 4. Compounding effect Investors also benefit from the compounding of returns, where the returns earned on the invested capital are re-invested into the fund. Best SIP Mutual Funds Read More 5 Benefits of SIP Plans for Child Education   1. Compounding can help you become financially stable  SIP helps everyone make the best of their savings and lets one make the most of compounding. Compounding is when the initial interest earned on your investment starts earning interest over the years. It helps people with small sums of money generate a sizeable amount over the years. Compounding is a great way to meet your financial goals and retire with a healthy sum of money in your pocket.   2. Make the most of rupee cost averaging  Staying invested for long and consistently have its benefits. This benefit is called rupee cost averaging when your overall investment is protected from market fluctuations.   3. A common’s man way of investing  SIP is a method that is suitable for every investor. Whether you are a seasoned or a new investor, you can start a SIP and invest in funds that can help you with your financial goals. It is a common’s way of ensuring their future and helps them invest small sums of money.   4. SIP can help you stay financially disciplined  SIP makes investing easier and affordable for everyone. It is an EMI for your future funds and helps you consistently contribute to it. You can set up an auto-debit from your account so that you continue to invest. SIPs can be paused and even stopped based on your needs. It is a great way to contribute towards your financial goals without worrying yourself out.  5. SIP can be as little as Rs. 100  You can start a SIP for Rs. 100 or even Rs. 500. The choice is yours! Based on your needs and financial goals, your investment can be as little or as big as you want. You can gradually increase your SIP investments. Some mutual funds offer a Step-up option above a certain investment amount which means that as your salary grows, you can increase your investments as well.   How does the SIP calculator work? Read More Tax benefits of Mutual Fund Scheme for a child's future There are certain benefits when you invest via SIP. Starting a SIP in a tax saving like ELSS. This tax-saving fund has certain tax benefits. It also has a lock-in period of three years.   SIP plans in an ELSS fund from April to March (financial year) are eligible for Section 80C benefits for that fiscal year up to Rs.1.50 lakhs.  Top 10 SIP plans (mutual fund scheme) for child education Scheme Name1-Yr ReturnAUMProsConsAditya Birla Sun Life Frontline Equity FundExpense Ratio: 1.08%Min SIP Amount: Rs 10014.85% Rs 18,897.76 CrLower expense ratioAssets Under Management (AUM) of the fund are greater than Rs 15,000 Cr. When a fund crosses a certain AUM threshold, the returns from the fund tend to decrease or stagnate. The investors should monitor the performanceAxis Long Term Equity Fund Expense Ratio:0.72%Min SIP Amount: Rs 50014.85% Rs 28,556.83 CrFund has higher 3-year and 5-year returns as compared to the category average.ELSS fund – Tax haven for 80CAssets Under Management (AUM) of the fund are greater than Rs 20,000 Cr. When a fund crosses a certain AUM threshold, the returns from the fund tend to decrease or stagnate. Investors should monitor their performance.Parag Parikh Flexi Cap FundExpense Ratio: 0.96%Min SIP Amount: Rs 100021.11%Rs 8,701.65 CrFund has higher 1-year, 3 years, and 5-year returns as compared to the category average.Low expense ratio.NoneSBI Equity Hybrid FundExpense Ratio: 0.97%Min SIP Amount: Rs 50012.20%Rs 38,080.12 CrFund has higher 1year, 3-year, and 5-year returns as compared to the category average.Low expense ratio.Assets Under Management (AUM) of the fund is greater than Rs 20,000 Cr. When a fund crosses a certain AUM threshold, the returns from the fund tend to decrease or stagnate. Investors should monitor their performance.SBI Focused Equity FundExpense Ratio: 0.97%Min SIP Amount: Rs 50013.08%Rs 14,533.37 CrFund has higher 3-year 5 year and 10-year returns as compared to the category average.The fund has been in the market for over 10 years.High expense ratioAxis Bluechip FundExpense Ratio: 0.55%Min SIP Amount: Rs 500Rs 25,134.85 CrFund has higher 1-year 3-year and 5-year returns as compared to the category average.The expense ratio is on the lower end and the fund has no lock-in period.Assets Under Management (AUM) of the fund are greater than Rs 20,000 Cr. When a fund crosses a certain AUM threshold, the returns from the fund tend to decrease or stagnate. Investors should monitor their performance.L&T Midcap FundExpense Ratio: 0.77%Min SIP Amount:Rs 50067.18% ( 3 year = 7.25%)Rs 6,258.04 CrFund has higher 5-year returns as compared to the category average.The expense ratio is on the lower end.Assets Under Management (AUM) of the fund are greater than Rs 5,000 Cr.When a fund crosses a certain AUM threshold, the returns from the fund tend to decrease or stagnate. Investors should monitor the performance.HDFC Mid-Cap Opportunities FundExpense Ratio: 1.04%Min SIP Amount: Rs 50075.85% ( 3 year = 7.94%)Rs 25,779 CrFund has higher 5-year returns as compared to the category average.The expense ratio is on the lower endAssets Under Management (AUM) of the fund are greater than Rs 5,000 Cr. When a fund crosses a certain AUM threshold, the returns from the fund tend to decrease or stagnate. Investors should monitor their performance. Axis Small Cap FundExpense Ratio: 0.38% Min SIP Amount: Rs 50074.30% (3 year = 17.37%)Rs 4,724.14 CrFund has higher 3-year and 5-year returns as compared to the category average.The expense ratio is on the lower endNoneHDFC Small Cap FundExpense Ratio: 0.95%Min SIP Amount: Rs 50094.91% (3 year = 5.88%)Rs 10,024.44 CrFund has higher 3-year and 5-year returns as compared to the category average.The expense ratio is on the lower end.Assets Under Management (AUM) of the fund are greater than Rs 5,000 Cr. When a fund crosses a certain AUM threshold, the returns from the fund tend to decrease or stagnate. Investors should monitor their performance. Mistakes to avoid while investing in SIP plans  Here are some SIP plan mistakes that you should avoid as a new investor:  1. Investing in the wrong fund The most basic mistake in picking SIP plans is to invest in the wrong fund. This usually occurs when an investor is new and invests based on a friend’s advice or hearsay. It's important to do your own research, find out the fund house's previous performance, and the companies listed in the fund, and study its overall progress before starting any SIP plans. It's best to consult a professional before starting on this journey.    2. Investing a huge amount Many investors start strong but end up regretting it. Entering the market can be exciting and thrilling but you have to be careful where you are investing your hard-earned money towards. When picking up SIP plans, it is important to choose an amount you are comfortable spending and can consistently pay over the next couple of years to get the best returns possible.  3. Only for small investors or new investors This is a huge mistake while investing in SIP plans. Anyone can invest in SIP plans. Whether you are a financial advisor or a risk-averse investor, you can start a SIP for any amount and invest regularly. That is the beauty of SIP, it allows you to stay invested for a long at your own terms.   4. It is considered a short-term Investment SIP is not a short-term investment or a purely long-term investment method. It acts as both, the investor can decide how long they wish to stay invested, increase or decrease their SIP amount and even aim for big financial goals like a child’s education or retirement via SIP plans.   5. Not using the step-up SIP option Many investors do not increase their SIP amount and continue to invest at the same pace for a long duration. This is a huge mistake when selecting SIP plans and investing in them. As your income increases, it is important to increase your investments and SIP plan amount so that your financial goals are met in time and smoothly.  Which mutual fund scheme should you choose? Selecting the funds that are tailored to your investment requirement time horizon, income, target corpus, and risk appetite is the first critical step that you should take as a parent investing in your child’s education. One could start by investing in one fund and then diversifying to 2 or 3 funds by proportionately investing across the schemes. You should ideally aim for a smaller proportion of investments in small and mid-cap funds which bring in high returns (along with high volatility) and balance them with large-cap funds that have stable returns (lower than small and mid-cap). SIP calculator online for child education plans SIP calculator allows users to calculate and plan for child education. Users can calculate SIP over a period of time even before they start the investment process. SIP interest is based on compound interest. Just enter the amount you wish to invest and calculate your SIP. How to choose a mutual fund scheme for child education?  Choosing SIP plans depends on your financial goals. Ask yourself certain questions:   What are your long-term goals?  What are your short-term goals?  How much money do you wish to save for your retirement?  How much money can you save monthly and invest?  You can also consult a financial advisor who can help you create a financial plan to save for multiple goals and that can help you meet your daily wants and needs.   How to invest in SIP plans for child education on the EduFund App?  Step 1: Download and Sign up with EduFund  Go online with SIP plans with EduFund. Download the application and sign up with personal details. The whole signup process takes just 3 seconds.   Step 2: Identify your financial goals   The application provides a gamut of options for your child’s education. Evaluate the goal. You can save for short-term or long-term goals such as saving for school fees and saving for higher education in India or overseas. You can save for both simultaneously as well!   Step 3: Calculate the total cost with a FREE calculator  After identifying the goals, calculate the total costs of higher education for undergraduate or postgraduate studies.  You could calculate basing National or International academic education expectations. Select the specialization and the country you are seeking higher education.  Step 4: Get your investment map and invest  Soon after filing the details, you will get how much you could get after investing for the respective number of years. You will get a number of SIP plan suggestions that you could compare with yours.  You could increase or decrease the sum to invest monthly as per financials.  We provide an overview of your savings transitioning into returns until you get the investment sum. You could go for a lump sum payment if you are an entrepreneur with unstable finances.  Place the order as a secured investment through UPI or other methods. You could start with just ₹100 in Edufund SIP investments.  Step 5: Track, revisit and reset goals anytime  Once you set up a SIP plan, you can edit goals according to the revised economic situation. Edufund captures the sensitivity that comes with finances.  Revisit the plan and modify it as per goals and finances. You will get a new investment plan with new goals. Plan your savings accordingly.  Conclusion A financial strategy for your child’s education is an absolute necessity, given the high educational inflation that is prevailing in the world today. The strategy should factor in your income, target corpus, investment horizon, and risk appetite. Starting early in terms of investments lowers the financial burden in the future and helps you pave the path for your child’s dream career. There is no appropriate or right time to start investing in your child’s education because the right time is now. Note - The past track record of a fund is no guarantee of its future performance. FAQs Is SIP good for child education?  A SIP is a great way to save for your child’s education. You have the flexibility to select the amount and invest regularly in your chosen funds. You can also redraw the money when you need it or pause the SIP if you wish to do so. SIP is a systematic and disciplined way to save for your child’s future education.  Which mutual fund is best for child education?  Here are the top mutual funds that offer SIP for your child’s education:  Aditya Birla Sun Life Frontline Equity Fund  Axis Long-Term Equity Fund  Parag Parikh Flexi Cap Fund  SBI Equity Hybrid Fund  SBI Focused Equity Fund  Can I open a SIP for my child?  Yes, you can start a SIP for your child. Download the EduFund App and select the funds you like and start investing. How can invest in SIP for kids?  Explore several saving options on the EduFund app to save for your child’s future. Select the funds that suit your risk appetite and your goals. Invest an amount you are comfortable with and start saving!   Which SIP is best for kids?  Here are some mutual funds that offer SIP investments starting at Rs. 100 or Rs. 500:   Aditya Birla Sun Life Frontline Equity Fund   Axis Long-Term Equity Fund   Parag Parikh Flexi Cap Fund   SBI Equity Hybrid Fund   SBI Focused Equity Fund  Is a long-term SIP risky? Investing in SIP for the long term is highly effective and has lesser risk compared to making a lumpsum investment in mutual funds.  What is the best age to start a SIP? There is no right age to start a SIP. A systematic investment plan is a great tool to save for your child’s education. As many experts suggest, it is always beneficial when you have a long investment horizon, as it reduces the SIP amount needed to reach your goal. You need to invest early to have a long investment tenure. Investing early also may increase your returns on investment. TALK TO AN EXPERT DisclaimerMutual fund investments are subject to market risks and EduFund does not endorse any fund over another in this blog.

Gold Mutual Fund vs Digital Gold, which is better, and which one should an investor choose? This blog will talk about the pros and cons of investing in these asset classes. Gold has been the conventional investment choice of Indian households over the years, but gradually individuals have realized that keeping physical gold has certain downsides, like storage costs, and more importantly, safekeeping, as it has a risk of theft and robbery. Investors have turned to Digital Gold and Gold Mutual Funds as both are modern-day preferred investment tools because of their value. The benefit of investing in both Gold Mutual Funds and Digital Gold is that investors will not need a Demat account for trading, nor will they have to worry about purity or making charges. What is a Gold Mutual Fund? Gold Mutual Fund, also referred to as Gold Fund, is described as an open-ended Mutual Fund that invests through units of Gold ETFs. Every Gold Fund has a fund manager who is responsible for buying and selling desired assets based on the investment objective of the fund. In a Gold Mutual Fund, the fund manager invests not in physical gold but in paper gold of 99.5% purity for generating an income.  What is Digital Gold? In the digital era, more and more investors are turning towards Digital Gold. It is a financial investment option where investors can trade gold units online anywhere and anytime.  Buying Digital Gold is like holding the 24k gold in a virtual safe instead of a physical vault or locker. Moreover, there are no safekeeping or purity issues; hence investors often consider it a safe bet in terms of investment. An overview of Gold Mutual Fund vs Digital Gold 1. Investment Gold Mutual Funds can invest in gold only through Gold ETFs. The fund manager cannot make direct investments in the stocks of gold packaging, processing, refining, and mining companies. As per SEBI Regulations, these investments fall under the thematic category and cannot be considered Mutual Funds.  Invest in Gold Mutual Funds on the Edufund App with help from qualified advisors.   Digital Gold can be purchased online by anyone, at any place, and at any time. Investors do not need a fund manager for such investments as it can be done through mobile wallet apps like PhonePe, Google Pay and Paytm, etc.  Invest in Digital Gold through Edufund DigiGold Interface, which is easy to operate, understand and manage. Investors can see the invested amount, quantity of gold holdings, % returns, and the current value of their investment on a single screen.   2. Performance The performance of the Gold Mutual Funds depends on the ongoing fluctuations in the price of physical gold.  The Digital Gold price is similar to that of the current rate of physical gold in the market, hence the price that you see is for both physical and Digital Gold.  3. Trading It is possible to invest just INR 100 in a Gold Mutual Fund.  Investors can also trade online 1 gm of Digital Gold at the prevailing market price.  4. Liquidity Both Digital Gold and Gold Mutual Funds are considered highly liquid investments, although Digital Gold can be sold more easily online in a minute without any hassles, while the investor will have to submit the redemption form to the fund house. Investors will then receive an equivalent value in their account.   With the help of the Edufund App, the process of selling Gold Mutual Funds and Digital Gold is hassle-free, and the money is transferred to the account within 48 hours.  5. Convenience Gold Mutual Funds offer less convenience than Digital Gold as they have to be handled through proper channels by a fund manager, whereas Digital Gold can be handled by any individual.  6. Regulatory Body Gold Mutual Funds are regulated by SEBI, and fund houses will have to follow the strict SEBI rules, while Digital Gold has no authorized regulatory body as it is run by independent trustees. Conclusion Smart investors understand that gold is a sure bet against equity investments and inflation, and hence it is better to invest in gold when it comes to diversification of assets. What has changed the mindset over the years is the preference for Gold Mutual Funds and Digital Gold instead of physical gold. Investing in Gold Mutual Funds vs Digital Gold actually depends upon individual preferences. Hope the above-mentioned blog gives better clarity on both asset classes. Consult an expert advisor to get the right plan TALK TO AN EXPERT

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant.  The family behind DSP has been very influential in the growth and professionalization of capital markets and the money management business in India over the last one-and-a-half centuries   Let us talk about the consumer product – DSP Global Allocation Fund.  About the DSP Global Allocation Fund  Investment objective The primary investment objective of the Scheme is to seek capital appreciation by investing predominantly in units of BlackRock Global Funds - Global Allocation Fund (BGF - GAF). The Scheme may also invest in the units of other similar overseas mutual fund schemes which may constitute a significant part of its corpus. The Scheme may also invest a certain portion of its corpus in money market securities and/ or money market/liquid schemes of DSP Mutual Fund, in order to meet liquidity requirements from time to time.  Portfolio composition  The portfolio that holds major exposure is Information Technology which accounts for roughly 10% of the portfolio. The top five sectors hold nearly 33% of the portfolio.  Note: Data as of 31st Dec 2022. Source: DSP MF  Top Ten Holdings of DSP Global Allocation Fund Name Weightage % Microsoft Corporation 1.70% Apple Inc 1.60% Alphabet Inc Class C 1.20% Amazon.Com Inc 1.10% ConocoPhillips 0.90% Humana Inc 0.80% UnitedHealth Group Inc 0.80% Marsh & McLennan Inc 0.70% Enbridge Inc 0.70% Sempra 0.70% Note: Data as of 31st Dec 2022. Source: DSP MF  Performance Note: Data as of 31st Dec 2022. Source: DSP MF  The fund has generated a CAGR (Compounded Annual Growth Rate) of 6% since its inception.  Fund manager  Mr. Laukik Bagwe is the fund manager and brings over 22 years of total professional experience. He has been managing the scheme since August 2014. He has previously worked with Derivium Capital & Securities Private Limited, and Birla Sunlife Securities Ltd. He holds a B.Com, and PGDBA (Finance).  Mr. Jay Kothari, Vice President & Product Strategist has been managing the fund since August 2014. He is the dedicated Fund Manager for overseas investments and has been with DSP Investment Managers since May 2005, and has been with the Investment function since January 2011. Jay joined the firm as a member of the Sales team (Banking) in May 2005. Prior to joining DSPIM, Jay worked for Standard Chartered Bank for a year in the Priority Banking division. Jay completed his Bachelor of Management Studies (Finance & International Finance) from Mumbai University, followed by an MBA in Finance from Mumbai University.  Mr. Kedar Karnik has been managing the fund since July 2016. He joined DSP Investment Managers from Axis Asset Management and has over 17 years of investment experience. He has done his Masters in Management Studies from Jamnalal Bajaj Institute of Management Studies. He has over a decade of investment experience. He has previously worked with HSBC Asset Management and CRISIL Ltd.  Who should invest in DSP Global Allocation Fund?  Experienced Investors with a well-set core portfolio, looking to diversify no more than 10-15% of portfolio internationally.  Investors looking for international diversification, especially in US companies & wanting to hedge portfolios.  Investors have the patience and mental resilience to remain invested for a decade or more.  Investors not looking to chase the highest returns.  Why invest in this Fund?  Offers the potential to grow your wealth by investing in a well-diversified portfolio all around the world.  Get access to well-known, large companies that are difficult to invest in directly for Indian investors, like Google, Amazon, Facebook, Comcast, Berkshire Hathaway, etc.  Reduce portfolio volatility by investing in a foreign market that has a low correlation to the Indian stock market & may thrive even when Indian stocks fluctuate.  Get the additional benefit of currency diversification.   Time horizon  One should look at investing for a minimum of 10 years or even more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The DSP Global Allocation Fund was launched in August 2014, and in its track record of eight years, the fund has delivered ~6% CAGR consistently. Thus, it is best for investors who are willing to take international equity exposure in the portfolio and is looking to remain invested for a longer period.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant.  The family behind DSP has been very influential in the growth and professionalization of capital markets and the money management business in India over the last one-and-a-half centuries   Let us talk about the consumer product – DSP US Flexible Equity Fund.  About the DSP US Flexible Equity Fund  Investment objective The primary investment objective of the Scheme is to seek capital appreciation by investing predominantly in units of Global Funds US Flexible Equity Fund (BGF - USFEF). The Scheme may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes, which may constitute a significant part of its corpus. The Scheme may also invest a certain portion of its corpus in money market securities and/ or money market/liquid schemes of DSP Mutual Fund, in order to meet liquidity requirements from time to time. It shall be noted 'similar overseas mutual fund schemes' shall have investment objectives, investment strategies, and risk profiles/considerations similar to those of BGF - USFEF.  The term "Flexible" in the name of the Scheme signifies that the Investment Manager of the Underlying Fund can invest either in growth or value investment characteristic securities placing an emphasis as the market outlook warrants.  Portfolio composition  The portfolio holds major exposure in Information Technology which accounts for roughly 21% of the portfolio. The top five sectors hold nearly 75% of the portfolio.  Note: Data as of 31st Dec 2022. Source: DSP MF  Top 10 holdings of DSP US Flexible Equity Fund Name Weightage % Microsoft Corporation 6.00% Amazon.Com Inc 4.80% Alphabet Inc 4.40% Apple Inc 4.00% Corveta Inc 3.10% United Health Group Inc 3.00% Comcast Corporation 2.60% Berkshire Hathaway Inc  2.60% Visa Inc 2.50% Ross Stores Inc 2.20% Note: Data as of 31st Dec 2022. Source: DSP MF  Performance Note: Data as of 31st Dec 2022. Source: DSP MF  The fund has generated a CAGR (Compounded Annual Growth Rate) of 14% since its inception. Fund manager  Mr. Laukik Bagwe is the fund manager and brings over 22 years of total professional experience. He has been managing the scheme since August 2012. He has previously worked with Derivium Capital & Securities Private Limited, and Birla Sunlife Securities Ltd. He holds a B.Com, and PGDBA (Finance).  Mr. Jay Kothari, Vice President & Product Strategist has been managing the fund since March 2013. He is the dedicated Fund Manager for overseas investments and has been with DSP Investment Managers since May 2005, and has been with the Investment function since January 2011. Jay joined the firm as a member of the Sales team (Banking) in May 2005. Prior to joining DSPIM, Jay worked for Standard Chartered Bank for a year in the Priority Banking division. Jay completed his Bachelor of Management Studies (Finance & International Finance) from Mumbai University, followed by an MBA in Finance from Mumbai University.  Mr. Kedar Karnik has been managing the fund since July 2016. He joined DSP Investment Managers from Axis Asset Management and has over 17 years of investment experience. He has done his Masters in Management Studies from Jamnalal Bajaj Institute of Management Studies. He has over a decade of investment experience. He has previously worked with HSBC Asset Management and CRISIL Ltd.  Who should invest in DSP US Flexible Equity Fund?  Experienced Investors with a well-set core portfolio, looking to diversify no more than 10% - 15% of portfolio internationally.  Investors looking for international diversification, especially in US companies & wanting to hedge portfolios.  Investors have the patience and mental resilience to remain invested for a decade or more.  Investors not looking to chase the highest returns.  Why invest in this Fund?  Offers the potential to grow your wealth by investing in the world's largest & most developed equity market.  Get access to well-known, large companies that are difficult to invest in directly for Indian investors, like Google, Amazon, Facebook, Comcast, Berkshire Hathaway, etc.  Reduce portfolio volatility by investing in a foreign market that has a low correlation to the Indian stock market & may thrive even when Indian stocks fluctuate.  Get the additional benefit of currency diversification.   Time horizon  One should look at investing for a minimum of 10 years or even more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The DSP US Flexible Equity Fund was launched in August 2012, and in its track record of ten years, the fund has delivered ~14% CAGR consistently. Thus, it is best for investors who are willing to take international equity exposure in the portfolio and is looking to remain invested for a longer period.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

ETFs were once seen only as a substitute for mutual funds, but now ETFs are caught in a broader light. ETFs now help investors reach all corners of the financial markets independent of geographical boundaries.   First dominated by HNIs (High Net-worth Individuals) and investment companies ETFs have allowed small investors to enter markets. ETFs, nowadays, is also seen as a cheaper and more efficient alternative to hedge funds which are typically out of reach of retail investors.   According to the US Securities and Exchange Commission ‘Hedge funds pool money, from investors and invest in securities or other investments to get positive returns. Hedge funds are not regulated as heavily as mutual funds. Generally, they have more leeway than mutual funds to pursue investments and strategies that may increase the risk of investment losses. Hedge funds are limited to wealthier investors who can afford the higher fees and risks of hedge fund investing, and institutional investors, including pension funds.'  To the casual observer, ETFs and hedge funds might not look similar, but several ETFs look like hedge funds by adopting various strategies. ETFs cannot directly mirror the hedge funds but replicate their performance using the assets in question. Some ETF strategies that act like Hedge funds  1. Direct approach  ETFs are highly liquid securities tradeable on the stock exchange. Thus, it doesn't allow them to hold Hedge Funds since hedge funds are illiquid and come with lock-in periods.   Then such ETFs rely on other strategies to get the job done. One strategy is the direct strategy in which the ETF will directly take positions in the underlying assets needed to provide the promised return by passive management or active management.   ETFs have brought several hedge fund strategies like long/short, market neutral, currency-carry, etc., strategy to the picture.   A long/short strategy is one in which the management has both long and short positions in securities, covering both sides and compensating for any losses.  Managers take a long position in undervalued stocks and a short position in overvalued stocks. A market-neutral strategy is similar to a long/short plan. A currency carry strategy is a strategy that uses a low-interest-rate currency to fund the trade in a high-interest-rate currency.  Similarly, ETFs will use a direct approach; a long/short ETF can directly short the underlying security, buy an inverse ETF, or use a swap agreement with banks. A currency-carry ETF might use currency-forward contracts.   2. Hedge Fund Replication  ETFs, replicate the returns of a hedge fund. Hedge funds are generally very secretive in their work; however, they report their returns to hedge fund indexing firms. The ETFs then try to replicate these returns with the help of the liquid assets at hand.  Hedge fund replication ETFs attempt to match hedge fund indexes as closely as possible with liquid assets. Liquid assets include things like stocks and bonds, although other ETFs with broad equities or bond exposure is more common.   These ETFs use complex mathematical and statistical tools to replicate such returns. Naturally, since ETFs are more transparent and have to report their holdings daily, the strategy is out in the open!  IM DBI Hedge Strategy ETF and the IM DBI Managed Futures Strategy ETF are some examples of Hedge Fund Replicating ETFs listed in the European markets.  3. Copycat  The third way to replicate a hedge fund is to copy them completely! Hedge funds are by law bound to share their portfolio allocations on a quarterly lagged basis.   Copycat ETFs use this publicly available information to decode the hedge fund's assets and then base their securities on such assets. These are primarily liquid securities like bonds and stocks.   The largest Copycat ETF is the Motley Fool 100 Index ETF, with an AUM of $532.52 million.  Bottom line is that ETFs cannot fully be hedge funds but can very correctly replicate them.   In an interview given to Morningstar on the launch of ProShares Hedge Fund Replication ETF (HDG), Joanne Hill, Head of Institutional Investment Strategy (IIS) at ProShares, opined that 'the idea here is that you can take a broad-based index like HFRI, which it captures the performance statistics of about 95% of the assets of the hedge fund industry; it has 2000 hedge funds in it.   So, when you look at that, you can reduce the returns and risk features into six or more tradable factors. So, hedge fund replication seeks to capture these return and risk characteristics, but it does it in a way that you can move in and out, trade it, and see the factors – thus making it accessible to a wider group of investors than available.'  Thus, ETFs have successfully delivered the hedge fund experience to the common masses. FAQs What are the top three ETFs?  Ans. Vanguard is the issuer of The Vanguard Total Stock Market ETF (VTI). $271.6 billion in assets are being managed.  State Street Global Advisors is the issuer of the SPDR S&P 500 ETF (SPY). $373.3 billion in assets are being managed.  iShares is the issuer of The iShares Core MSCI EAFE ETF (IEFA).  Can an ETF be a hedge fund?  Ans. ETFs can function like hedge funds even though they cannot possess them. In summary, ETFs are able to implement a variety of well-liked hedge fund strategies, including long/short, market-neutral, currency-carry, merger arbitrage, etc.  What is the best ETF strategy?  Ans. The ETF trading strategies that are best for beginners include dollar-cost averaging, asset allocation, swing trading, sector rotation, short selling, seasonal patterns, and hedging.  Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

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

ICICI is a leading Asset Management Company (AMC) in the country focused on bridging the gap between savings and investments and creating long-term for investors through a range of simple and relevant investment solutions.    Let us talk about the consumer product – ICICI Prudential Value Discovery Fund. https://www.youtube.com/shorts/C3w_oegGkFY About the ICICI Prudential Value Discovery Fund  Investment objective To generate returns through a combination of dividend income and capital appreciation by investing primarily in a well-diversified portfolio of value stocks.  Investment strategy   Diversification: The Scheme aims at maintaining a well-diversified portfolio with the flexibility to invest across sectors and market capitalizations.  Value investing: The Scheme, through its process of discovery, seeks to identify stocks whose prices are low relative to their historic performance, earnings, book value, cash flow potential, and dividend yield.  Special Situations: The fund manager may also capture special situations. Typically, these are large-cap stocks that the fund manager believes are beaten down due to non-fundamental reasons.  Bottom-Up Approach: The scheme shall adopt a bottom-up approach in identifying stocks that have strong fundamentals but are trading at prices lower than their intrinsic value.  Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 60% and sectoral major exposure is Banks which account for roughly 13% of the portfolio. The top five sectors hold nearly 50% of the portfolio. Note: Data as of 31st Dec 2022. Source: Morningstar, ICICI MF Top 5 holdings of ICICI Prudential value discovery fund Name Weightage % Oil & Natural Gas Corporation Ltd 8.79% Sun Pharmaceutical Industries Ltd 7.95% NTPC Ltd 6.42% Bharti Airtel Ltd 5.07% ICICI Bank Ltd 4.48% Note: Data as of 31st Dec 2022. Source: ICICI MF  Performance Fund name 3M 6M 1Y 3Y 5Y 7Y 10Y ICICI Pru Value Discovery Dir 2.93 9.01 11.12 24.97 13.61 15.55 17.92 S&P BSE 100 TRI -1.44 2.52 4.36 15.23 10.75 14.39 12.89 Note: Data as of 30th January 2023; Data is for Direct Plan Growth Option Source: ICICI MF  The fund has generated a CAGR (Compounded Annual Growth Rate) of 19.70% since its inception.  Fund manager at ICICI prudential discovery fund growth Mr. Sankaran Naren has been managing the fund since January 2021 and is associated with the AMC since October 2004. He oversees the entire investment function across the Mutual Fund and the International Advisory Business of the Company. Mr. Naren joined the AMC in 2004 as a fund manager and has worked in various capacities in the investment function culminating in his taking over as the Chief Investment Officer. He currently manages some of the flagship schemes of the ICICI Prudential Mutual Fund. Mr. Sankaran Naren has rich experience of around 30 years in almost all spectrums of the financial services industry ranging from investment banking, fund management, equity research, and stock broking operations. During his career, he has also worked with organizations such as Refco Sify Securities India Pvt. Ltd, HDFC Securities Ltd, and Yoha Securities in various capacities. He holds a B. Tech from IIT Madras and PGDM from IIM Calcutta.  Mr. Dharmesh Kakkad is also the fund manager since January 2021. He is associated with ICICI Prudential Asset Management Company Limited since June 2010. Prior to working in the Dealing function, he was working in the Operations Department of ICICI Prudential AMC. He is a CFA Charter holder in USA, CA, and B.Com.  Who should invest in ICICI Prudential Discovery Fund?  Investors who are willing to participate in the process of discovering stocks that are undervalued but have the potential to do well due to strong fundamentals.  Investors who are willing to invest for a fairly long term with an aim to benefit over the full investment cycle and have over 5 years of the investment horizon.  Why invest in this Fund?  The scheme’s investments in undervalued stocks provide a reasonable margin of safety and help to minimize downside risk in a market fall.  Horizon  One should look at investing for a minimum of 5-7 years or even more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The ICICI Prudential Value Discovery Fund was launched in August 2004 and in its track record of nearly nineteen years, the fund has delivered ~20% CAGR consistently. Thus, it is best for investors who are willing to take equity exposure and are looking for long-term investment. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

REITs or real estate investment trust funds work similarly to mutual funds or exchange-traded funds, except REITs invest in income-generating real estate. The main advantage of these trusts is that they earn from the real estate market without buying or maintaining these properties. India currently has 3 REITs and 2 InvITs or Infrastructure Investment trusts listed with SEBI. The only difference between the two is the asset type under consideration. REITs would own and operate a commercial space while InvITs invest in infrastructure. Why invest in real estate investment trust funds? From an investor's point of view, apart from the decreased responsibility of maintaining the property, REITs offer quick and easy liquidation, basically overcoming all limitations holding a physical property for investment purposes would entail. REITs can be considered a steady income source in high inflation as they offer risk-adjusted returns while helping diversify one's portfolio. From the government’s point of view, the rate of infrastructure development is a measure of the country’s growth. REITs are relatively cheaper and more accessible than investing in real estate, making it easy to invite investors.  Furthermore, REITs ensure concrete structuring of the real-estate financing industry. With the recent relaxation in REIT compliance rules, the Indian government wants foreign fund managers to relocate to India. How can you lose money in a Real estate investment trust fund? While there always exists a certain amount of risk in every investment, each type of REIT has its limitations which we look into going further. A standard limitation that all REITs face regardless of the asset investment is the slow return on investment. Since the model works on the capital appreciation and rental yield, REITs are susceptible to market fluctuations. Types of REITs and how to invest in them? Although there can be many bifurcations to the types of REITs, we categorize them on the basis of infrastructure - 1. Retail REITs Such trusts have heavy investments in freestanding retail or shopping complexes. Given retail would require a considerable amount towards the maintenance of the property, it won't be a surprise if most of these structures are owned or/and managed by REITs. The majority of the income from these investments is from the rents that tenants pay. Hence, we advised seeking strong anchor tenants to avoid the end of these stores (e.g., grocery stores or home improvement stores typically experience an excellent cash flow). While investing in retail REITs, the REITs themselves must have a strong balance sheet, preferably with less short-term debt. In case of economic disturbance, REITs with a significant cash position have the advantage of increasing their portfolio. 2. Residential REITs Residential REITs majorly earn from rents from tenants. The rent collected from these properties depends on how popular the areas are Typically, areas where renting a house is more affordable than owning one are the ones that would yield higher returns. As a result, trusts in this category tend to focus on large urban centers. REITs to look out for should have the most available capital and strong cash flows. As long as the demand for residential properties keeps rising and the supply remains low, the portfolio should yield good returns. 3. Healthcare REITs However new the concept of healthcare REITs is, as the healthcare cost and average Indian age continue to climb, healthcare REITs would continue to gain popularity. In the case of healthcare REITs, apart from the infrastructure and occupancy fees, REITs rely on Medicare and Medicaid reimbursement and private pay. An ideal option for such REIT would be a company with high, low-cost capital and a strong balance sheet on top of well-diversified property types and customers. 4. Office REITs Since these depend heavily on long-term leases, any factor that would affect a tenant economically would affect the performance of the overall portfolio, i.e. unemployment rate, state of the economy, and other things. Other factors to look out for would be the location of the properties and the capital available for acquisitions. A REIT that invests in average properties in Mumbai would fare better than luxurious office space in Udaipur.  5. Mortgage REITs Such REITs invest in, you guessed it, Mortgages instead of equity. Mortgage REITs lend money to real estate either through loans or through the acquisition of mortgage-backed securities. The risk to such investments lies in increased interest rates, leading to a decrease in the mortgage REIT book value and hence decreasing the stock prices. Furthermore, an increased interest rate leads to more expensive financing and reduced weight of a portfolio of loans. In a low-interest-rate environment, most REITs would trade at a discount to net asset value per share when there is a possibility of an increase in interest rate. Listed REITs and InvITs in India 1. Embassy REIT (2017) The company owns and operates 42.6 million square feet of infrastructure, office parks, and buildings. The properties under their portfolio are in Pune, Mumbai and Bengaluru, and the National capital region. 2. Mindspace REIT (2020) Managed by K Raheja Corp Investment Managers LLP., the total leasable area under management is 31.3 million sq. ft. Their portfolio is well-diversified into business and IT parks spread across the main commercial hubs in India. It is well-established in Mumbai, Pune, Hyderabad, and Chennai. 3. Brookfield India Real Estate Trust (2019) Being the only institutionally managed REIT, Brookfield operates in Kolkata, Gurgaon, Mumbai, and Noida. The trust's portfolio covers 18.6 million sq. ft of commercial real estate. 4. IndiGrid Trust (2016) IndiGrid is one of the first movers in the Infrastructure Investment Trust (InvIT) in the power transmission sector. Ingrid owns and manages power transmission networks and renewable energy assets throughout India. Seven thousand five hundred seventy circuit kilometers of transmission lines and 13,550 MVA transformation capacity make IndiGrid the most significant Power transmission-based InvIT in India. 5. IRB InvIT Fund (2017) IRB Fund invests in infrastructure development and construction in the roads and highway sector under the sponsorship of IRB infrastructure developers Limited. It is listed with India's Securities and Exchange Board since 2008. It has owned and maintained six toll roads in Maharashtra, Karnataka, Gujrat, Tamil Nadu, and Rajasthan. Lastly, although REITs offer a slow return on investments, they offer as high as 90% of their income as dividends. Being regulated by SEBI and disclosed capital portfolio makes it a safe bet. FAQs How can I invest in REIT directly in India? REITs or real estate investment trust funds work similarly to mutual funds or exchange-traded funds, except REITs invest in income-generating real estate. Investing in REITs means buying certain units of stock on the stock market, so you need a DEMAT account to invest in REITs.   Can you lose money in REITs? While there always exists a certain amount of risk in every investment, each type of REIT has its limitations. A standard limitation that all REITs face, regardless of the asset investment, is the slow return on investment. Since the model works on the capital appreciation and rental yield, REITs are susceptible to market fluctuations.  Is REIT safer than stocks? REITs can be considered a steady income source in high inflation as they offer risk-adjusted returns while helping diversify one’s portfolio. REITs are relatively cheaper and more accessible than investing in real estate, making it easy to invite investors. REITs have historically given competitive returns.   How do beginners invest in REITs? Any investor needs a DEMAT account to buy stocks on the stock market. It is important to know the stock in detail before making an investment. Conduct extensive research before investing in any stocks. It would be safe for a beginner to consult a financial expert before making an investment.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Economic growth and development are indicators of progress and wealth provided by financial investment. Along with the reserves, exports, government revenue, financial position, and available supply of domestic savings, foreign investment is also necessary for a country's well-being. Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) have recently emerged as essential players in the Indian stock market. They are gradually becoming one of the significant factors contributing to the growth of the financial markets.  Who are FIIs?  Domestic Institutional Investors (DIIs) are those institutional investors who invest in securities and other financial assets of the country where they are located. Investments made by institutions are referred to as institutional investors. For example, investments by institutions or organizations such as banks, insurance companies, mutual fund houses, etc. Foreign Institutional Investors started investing in the Indian stock market only in 1992. FIIs were allowed to invest in securities in listed corporations, likewise as within the secondary market. FIIs can invest in the Indian capital markets only through the country's portfolio investment scheme.  What are DIIs?  Domestic Institutional Investors (DIIs) are those institutional investors who invest in securities and other financial assets of the country they are based in. Institutional investment is defined as investments by institutions or organizations such as banks, insurance companies, mutual fund houses, etc. Importance of FII and DII  DIIs and FIIs account for the liquidity of the stock market. Tracking the institutional investment outflow and inflow helps forecast market trends. Moreover, FIIs have a significant impact on domestic market trends.   FIIs investments in the Indian stock markets reflect their high confidence and positive market sentiments. The FII investments have mixed impacts on the market overall. On the one hand, they increase the scope of the market, whereas, on the other hand, they increase the size of speculation.  Impact of FIIs on the Stock Market Institutional investors are known as market makers, as they trade in a larger quantity of securities than an average individual investor. Stock markets rise and fall depending on their investing activities. A massive inflow of FIIs has continually increased the Indian capital market index and vice versa.  Net Purchase/Sales of FII and DII from 1st Jan 2021 to 1st Mar 2022 The above graphs show the direct impact of FII and DII movement on the BSE Sensex Index. In January 2021, a major FII purchase caused a significant rise in the Indian Stock market. Net Sales of FIIs in February 2022 had a slight negative impact on Sensex. But DII ownership of Indian equities rising quickly with consistent and rising SIP investments has stabilized the market conditions. Since October 2021, the Indian stock market has seen a more significant FII exit and a heavy inflow from DII. Due to the recent uncertainties in the market conditions, a large DII exit caused a significant negative impact on Sensex, among other global factors. It is important to note that there is a positive correlation between the DIIs movement and the Sensex index. This correlation between the movement of the DIIs movement and Sensex shows that the market moves with the DIIs investments.  As an investor, apart from considering other factors, one should analyze the FIIs and DIIs movement to understand how the market will move. Generally, retail investors suffer the most in-stock market correction situations. DIIs & FIIs are basically market makers. A majority of the market movements depend on their investment behavior and buying-selling pattern. From a long-term perspective, one should look at the FII's selling points as an investment opportunity due to heavy market corrections. Moreover, with an increase in Domestic institutional investments, there is a decrease in the volatility caused by FII movements. FAQs Who is stronger FII or DII?   Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) have recently emerged as essential players in the Indian stock market. They are gradually becoming one of the significant factors contributing to the growth of the financial markets. There is no specific answer to who is stronger.   How do FII and DII affect the market?   Institutional investors are known as market makers, as they trade in a larger quantity of securities than an average individual investor. Stock markets rise and fall depending on their investing activities. A massive inflow of FIIs can continually increase the Indian capital market index and vice versa.   Can FII boost the Indian economy?   Stock markets rise and fall depending on FIIs' investing activities. A massive inflow of FIIs can continually increase the Indian capital market index and vice versa. FIIs play a major role in determining the financial stability of a country.    Note: The first part under the 'Who are FIIs' topic talks about DIIs instead of FIIs. Please add the following line instead of the old one:   Foreign Institutional Investors are investors or investment funds that invest in the financial markets of different countries other than their home countries.  Who controls FII in India?   Foreign Institutional Investors are investors or investment funds that invest in the financial markets of different countries other than their home countries. FIIs must register with the Securities and Exchange Board of India to participate in the market. 

Investing isn’t about beating others at their game. It’s about controlling yourself at your own game.  -By Benjamin Graham  When it comes to investing, many investors restrict themselves to only India. This may be because of a lack of knowledge, expertise, a certain perspective, and/or many other factors. Let’s simplify the equation of whether should you consider investing in the US market or not.  When you invest in the US market, there are two returns that an Indian investor gets:  Returns from rupee depreciation Return that the US market is generating Rupee depreciation against the Dollar  When the rupee becomes less valuable with respect to the dollar, that means the rupee has depreciated. This means that to buy 1 USD, we need to pay more rupees than we used to pay earlier.   Due to Interest Rate Parity, inflation is likely to be higher in emerging economies like India because of the growth and inflation in developed counties will always be lower. Because of this difference in inflation and interest rate, the currency of an emerging economy is likely to depreciate. So, if we look at the rupee, it has depreciated by almost 4% annually in the last 10 years. If we look at the graph below, we can see that every year the rupee has depreciated.   Source: EduFund Research Team Note: Period understudy is between Jan’12-Dec’21.  Therefore, the Indian investor will be benefitted from the rupee depreciation of approximately 4% annually. And we should not rule out that this 4% depreciation in the rupee is compounding. If you invested $1000 (Rs.53000) in the year 2012 when USDINR was at Rs.53/Dollar, it would have now become Rs. 75000, without even considering the returns of NASDAQ.  NASDAQ performance  Now, let’s look at the performance of the NASDAQ compared to the Sensex Index, Mid-cap Index, and Small-cap Index.   Source: EduFund Research Team Note: Period understudy is between Jan’12-Dec’21. When we look at the Indian market, we say that better returns are generated in mid-cap & small-cap sectors, where the risk is also high. when compared to the large-cap sector.   In the above graph, if we compare the performance, we can say that NASDAQ has given better returns than the BSE mid-cap & BSE small-cap index in the past 10 years, whereas the risk is also low when investing in NASDAQ (Index). NASDAQ has generated more than 17% CAGR (Compounded Annual Growth Rate) over the past 10 years whereas BSE Sensex, and BSE Mid-cap BSE Small-cap have given CAGR of 13%, 15%, and 16% respectively. The US market is generating more returns than the Indian market when compared with the benchmark.  Let’s talk about the US market  Some of the companies’ size is more than double the economy of some developing countries. For example, the revenue of Amazon and Apple both surpassed the value of the GDP of Pakistan (296 $ billion) by almost 90 $ billion and 69 $ billion, respectively.   Source: EduFund Research Team  Companies like Amazon & Apple; have achieved economies of scale and their traction in the market is constant. Despite excellent performance over the years, these companies are still generating wealth for investors. Amazon and Apple have given 1525% & 953% returns in the last 10 years.  The story doesn’t end here There are some large companies across the globe like Alibaba & Industrial & Commercial Bank of China (ICBC), with a market size (capitalization) of $314.76 Bn. & $254.65 Bn., respectively. So, investing in these companies is also possible through investing in US ETFs, which gives global exposure. Having said that, investing in the US market not only helps you to generate good returns but also helps to diversify the risk.   An opportunity for Indian Investors  Interest rates in India are likely to increase, which is a cause for concern. Due to this, many foreign investors are pulling out their money from India to their home country because many attractive asset classes are present outside India. All this will also lead to demand in the US market.  After the Covid rally in the market, it has bottomed out, and there are high chances that the US market will see a rebound.  Let’s consider three scenarios:  Best scenario – If we look at the past returns of NASDAQ, which has delivered 17% annually, and the rupee depreciation which is depreciating at 4% annually. Then, the Indian investors will get 21% returns, which is most likely to continue.  Average scenario – Even if the rupee doesn’t depreciate, the returns that NASDAQ has delivered are higher than the BSE Sensex, BSE Mid-cap, and BSE Small-cap.  Worst scenario – Even if NASDAQ doesn’t deliver or delivers fewer returns, then the rupee depreciation will help to generate the returns, which is likely to happen.  FAQs What are the benefits of investing in US market from India? When you invest in the US market, there are two returns that an Indian investor gets:  Returns from rupee depreciation Return that the US market is generating A chance to invest directly in big companies like Apple, Microsoft, Netflix, etc What does Nasdaq stand for? Nasdaq is an American stock exchange. It stands for National Association of Securities Dealers Automated Quotations. It compromises of US's top 20 companies like Apple, Amazon, Google, Meta, etc. Some of these companies have a market value bigger than of countries like Pakistan and even India! How can you invest in the US from India? You can invest in the US market from India by downloading the EduFund App. Open your US account on the App in a seamless process with no extra charges. Click here to know how US stocks! Therefore, the rupee will work as a hedging tool with no extra cost and risk while investing in the US market.  If you are investing in the US market (dollar currency) either of the three things is going to happen, which is in your favor. Start investing in the US market as the market has bottomed out, and the market will see a rebound.