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ICICI Prudential Mutual Fund is the second-largest asset management company in India. With over Rs 3 Lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMF offers products across asset classes.   Let us talk about the flagship product – ICICI Prudential Balanced Advantage Fund.  ICICI Prudential Balanced Advantage Fund  1. Investment objective To provide capital appreciation and income distribution to the investors by using equity derivatives strategies, arbitrage opportunities, and pure equity investments.  2. Investment process    The scheme uses an in-house asset allocation model to maintain an effective equity investment level to be above 65%. However, the actual equity level may go below 65% after considering the derivative exposure.  3. Portfolio Composition  The equity exposure is majorly in large-cap stocks at 67% and sectoral major exposure is to financial services that account for roughly one-third of the portfolio. The top 5 sectors hold nearly 40% of the portfolio.  Note: Data as of 30th Sep 2022. Source: ICICI Pru AMC  Top 5 holdings Name Sector Weightage % Reliance Industries Conglomerate 5.96 ICICI Bank Ltd Financial Services 5.00 Infosys Ltd. Information Technology 4.28 HDFC Bank Ltd Financial Services 3.72 Bharti Airtel Ltd. Telecommunications 3.19 Note: Data as of 30th Sep 2022. Source: ICICI Pru AMC Performance over 16 years If you would have invested 10,000 at the inception of the fund, it would be now valued at Rs 52,450. Note: Performance of the fund since launch; Inception. Date – Dec 29, 2006. The investment horizon is from 30th Dec 2006 to 10th Nov 2022. Source: icicipruamc.com  The ICICI Prudential Balanced Advantage Fund has given consistent returns and has outperformed the benchmark over the period of 16 years generating a CAGR (Compounded Annual Growth Rate) of 11.03%. Fund manager  The fund is ably managed by   Ihab Dalwai – is a Chartered Accountant and has been associated with ICICI Prudential since 2011.  Rajat Chandak – has completed his BCom (H) and is an MBA. has been associated with ICICI Prudential since 2008.  Sankaran Naren - is a B.Tech from IIT Chennai and MBA (Finance)from IIM Kolkata. He has been with ICICI Prudential since 2012.  Who should invest in ICICI Prudential Balanced Advantage Fund?  Investors looking for  Long-term wealth creation solution.  Looking for a dynamically managed portfolio.  Why invest in ICICI Prudential's balanced advantage fund?  This equity fund aims for growth by investing in equity and derivatives.  Get a smartly allocated portfolio according to market conditions.  Horizon  One should look at investing for a minimum of 5 years or more  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The ICICI Prudential Balanced Advantage Fund has a smart asset allocation strategy that helps in portfolio diversification for an investor. The Scheme is suitable for investors who are seeking to benefit from market volatility while maintaining fair equity allocation levels based on market valuations.  Disclaimer:This is not recommendation advice. All information in this blog is for educational purposes only. 

Earlier, we saw some of the best investment plans in India for five years. In this article, we will learn about some of the best investment plans in India for one year.   The investment options for periods as small as 1 year are largely restricted, mainly because the equity exposure has to be reduced considerably because of the volatility factor.   Given the short duration, choosing an investment with no risk is preferable. Here are some options to invest in. Best investment plans in India for one year 1. Debt funds  A debt fund is a mutual fund, an exchange-traded fund (ETF), or any other pooled investment product with fixed-income securities as the majority of the underlying investments.   Because debt funds have lower managing costs, their fees are lower than equity funds. Debt fund investors have the option to choose between passive and active products.   Debt funds are often known as credit funds or fixed-income funds. Investors seeking to conserve their capital and achieve low-risk income frequently invest in these funds.   Debt funds invest in a wide range of securities, each with its own set of risks the safest is the debt of the United States. Companies with a steady outlook and high credit quality issue investment-grade debt. High-yield debt, which lowers credit-quality enterprises mainly issues with good growth prospects, delivers higher returns but also carries a higher risk profile.   Debt funds are appropriate for people with short to medium-term investment horizons, where “short-term” refers to a period of 3 months to one year (this is the period we are talking about in this article) and “medium-term” refers to a period of 3 to 5 years.  2. Short-term funds   These are open-ended mutual funds with a maturity duration of 15 to 91 days depending upon the underlying instruments’ maturity period. These funds primarily invest in high-quality, low-risk assets. Liquid funds are an amazing choice for risk-averse investors and a great way to park your surplus money.   If you have a longer time horizon, say 2 to 4 months, you can invest in ultra-short-term funds. Short-term funds give higher returns than bank deposits, along with the provision of liquidity. Returns on these funds have historically ranged between 6 to 8%.  3. Low-risk funds  Low-risk mutual funds are those funds that have a small number of risk elements. These funds have a greater return guarantee since they primarily invest in government bonds for infrastructure, real estate, and other uses.   The low-risk investment portfolios of these funds ensure that the inflation rate is taken care of. The investment horizon is short because these funds invest many of their assets in debt securities.   Investors wishing to put their money in tax-efficient schemes other than fixed deposits can choose low-risk mutual funds.  4. Money market instruments  For the short term, money market instruments are great investment options. The main feature of these kinds of securities is that they can be converted to cash with ease, thereby preserving the cash requirements of an investor.   Trading of money market instruments is through certified brokers or a money market mutual fund. Some funds aim to keep their portfolio as diverse as possible via a good combination of various money market products to maximize the yield.   Some money market instruments are treasury bills, certificates of deposit, commercial paper, and banker’s acceptance. Source: Pexels Some funds available in India  1. ICICI Prudential Medium Term Bond Fund - Direct Plan The plan aims to maximize income while preserving the best possible return of yield, safety, and liquidity by investing in various debt and money market securities with varying maturities.  2. Nippon India Short-Term Fund - Direct Plan The fund invests in debt and money market instruments to shell out reliable returns for clients with a short investment horizon.   3. Aditya Birla Sun Life Low Duration Fund - Direct Plan Seeks to invest in high credit quality debt and money market instruments of short maturities.  4. Tata Money Market Fund - Direct Plan Investors looking for a safer alternative to liquid funds can invest in this fund. It has a moderate risk profile and invests in short-term money market instruments.  5. Aditya Birla Sun Life Corporate Bond Fund - Direct Plan The scheme’s investment goal is to create optimal returns while maintaining high liquidity by actively managing the portfolio and investing in high-quality debt and money market instruments.  6. ICICI Prudential All Seasons Bond Fund - Direct Plan Invests in various debt and money market securities with different maturities to achieve a balance of return and safety. FAQs Which SIP is best for 1 year? Debt funds Short-term funds Low-risk funds How can I grow my money in one year? There are many ways to grow and invest your money for one year. You can consider the following types of investments: Debt funds Short-term funds Low-risk funds Money market instruments Can I withdraw SIP anytime? Yes, investors can withdraw the amount or stop their SIP whenever they want. Does SIP have risk? Yes, investing in mutual funds via SIP does involve some level of market risk. Risk differs based on the type of investment. Connect with an expert advisor to get the right plan for you  TALK TO AN EXPERT

Business Insider reports that “Indian household savings fell to the lowest level in 5 years. With inflation eroding the purchasing power, individuals tap their savings for survival after the pandemic.” Furthermore, "gross financial savings in FY22 stood at 10.8% compared to 15.9% in FY21." It demonstrates a clear saving pattern during the pandemic and erodes it soon after the ban was lifted. The importance of saving money aligns with the lifestyle and the goals you want to achieve within the decided time frame. 6 reasons to save money wisely From blowing off emergency cash requirements to ensuring financial freedom, there are plenty of reasons to save money. 1. Live a debt-free lifestyle Business Insider news says, “ An average Indian spends ₹14,500 a month on average on credit cards."  As per Statista, “In June 2022, nearly 121 million points of sale transactions were made via credit card in India.” It was pretty low in 2019-2020, owing to pandemic blues. Relying on credit cards for every big and small purchase may impact your savings. A credit card is a high-interest debt that one must pay monthly. Instead, save a portion of your income to savings. It will help meet discretionary expenses. 2. Budgeting for retirement As per the Financial Express report, “A survey by PGIM Mutual Fund and Nielson reveals more than 51% of the Indians participants have not planned retirement savings yet. “  Shockingly, children’s spousal security and lifestyle emerged as primary concerns rather than retirement.  The allocation of household income fell from 34% to 30% over the past two years. It impacted the saving corpus and budgeting. Around 89% of respondents living in Joint families find themselves more financially secure than nuclear families in India.  The report reveals that 42% of Indians lack any secondary income source or have any thoughts about it. One must consider inflation and market conditions before choosing a retirement saving plan to counter this. Employers must work towards awakening employees on saving more towards PF or separate retirement accounts. The key aim here is to push the employees towards ensuring financial freedom. 3. Paying effortlessly toward a child’s education dreams As per the Economic Times, “the average yearly fee for middle school is around ₹1.6 lakhs to ₹1.8 lakh/year. It totals up to ₹9.5 lakh to 12 lakh for Higher Secondary Education.” Parents must ensure nearly 10 lakhs for legal education in India.   Parents pay ₹25000/year towards sports, extracurriculars, and school transport alone. The education expenditure graph goes up to ₹20 lakhs after including general education for up to college years. EduFund lets parents plan and save for their child’s education with the help of financial experts. 4. Attending Medical Emergencies However, there are other emergencies too, like - urgent cash needs, cash to suffice sudden job loss and fulfill a time-sensitive requirement, and medical tops them all.   It is the worst situation to encounter when one goes cashless in medical emergencies. Illness does not wait. Thus, it is ideal to invest at least 30% of your income in medical insurance and savings. However, the statistics are good regarding health insurance coverage awareness. The Times of India says, “Every 3 in 5 Indians saw their health insurance premiums shoot by 25% or more in 2022.” It impacts savings and discourages one from taking life for granted. 5. Leaving behind a legacy Financial freedom must travel from generation to generation. “Around 72% of Indians do not know the potential ways to save and invest money.” They encounter confusion while walking up to the aim of financial freedom If you are a first-time investor, you can begin by investing in low-risk instruments. Dedicate only a small and comfortable income portion to long-term investments. Go for fixed-income generating opportunities that reduce the risk of losing your wealth. It will help you analyze the importance of saving money as a source of multiplying wealth sources. 6. Purchasing big-ticket items and investments Big-ticket items or lifestyle-enhancing instruments like- car and home investments require significant savings. Buying a home is one of the common dreams that Indians share. As per Indian Housing Report, “Only 69% of urban households have their own home. Rest are migrants.” It is far lower than in rural areas (95%). The reason is – Affordability. For a mortgage, you must ensure at least a 20% deposit. For that, you must save. If you could provide a 20% deposit for the mortgage, you could fetch affordable interest rates and use the rest of the savings for renovation or cover moving costs. Conclusion Saving is crucial for every life goal. EduFund is an ideal platform to save for your child and family’s future: Financial planning and goal management assistance College Cost Calculator to find future costs Variety of savings plans - mutual funds, US ETFs, and digital gold Educational counseling and financial guidance Consult an expert advisor to get the right plan TALK TO AN EXPERT

What are the advantages of investing in emerging markets? What do you mean by emerging markets? Let’s figure it out in this blog. What is an Emerging Market Fund? A country that is rapidly expanding in size and scope and is anticipated to be a developed country is called an emerging market. Around 25 economies across the globe have been labeled as emerging markets by the main index provider in the world, MSCI.  The four biggest emerging markets worldwide are, however, Brazil, Russia, China, and India. These markets have stronger growth rates, but there is also a bigger risk involved. For investors looking to invest in a single nation or through a diversified portfolio, there are also a lot of possibilities accessible. So by restricting exposure to a single stock or nation, investing in an emerging market fund enables investors to spread the risk. An investment vehicle known as an emerging market fund puts the majority of its money into securities from developing nations. These funds, which invest in emerging market debt or equities to create a diversified portfolio, are equity funds, debt funds, or exchange-traded funds (ETFs).  These funds provide growth investors with a variety of appealing and risky investment possibilities. In other words, emerging market funds look to take advantage of the chance for return presented by these economies. Investors will have the choice of both passive and active mutual funds that offer exposure across nations, industries, and market capitalization in the emerging markets category. An emerging market fund, for instance, might opt to allocate 20% of its resources to Russia.  Additionally, it might extend this to the banking, auto, petroleum, power, etc. sectors and concentrate more on large-cap firms in these industries. It can also decide which option is chosen for each nation. As a result, this fund provides diversity as well as a chance to profit from the expansion of the economy. Features of Emerging Market Funds The characteristics of emerging market funds include the following:  1. Diversification  Emerging market funds give investors a fantastic chance to expand their investment portfolio because they invest in equity and debt instruments across developing nations. This also makes it possible for investors to profit from the dynamics of emerging market markets.  2. Risk  It is always challenging to monitor the social and economic aspects of rising nations because the investment portfolio consists of securities from those nations. Acquiring accurate technical understanding regarding their market movements is likewise challenging. This increases the risk that developing market funds face. 3. Money management  Real-time market monitoring is necessary since it is critical to keep tabs on the developments in rising markets. Therefore, these investments are handled by fund managers, who are experts with years of experience.  4. Exposure  Emerging market funds invest in equities and debt instruments of different nations, allowing them to profit from their investment by adjusting to changing market conditions. This enables them to profit from the expansion of these nations' economies. Advantages of Investing in Emerging Market Funds 1. Geographical Expansion  The success of the Indian markets has an impact on the returns on an investor's portfolio which includes Indian stocks. However, including exposure to these funds broadens the investor's portfolio's geographic diversification. Additionally, it enables investors to profit from the economic cycles of developing nations.  2. Diversification of holdings  The secret to a successful investment portfolio is diversification. For investors with a higher risk tolerance who want to diversify their portfolios by investing in various emerging markets, there are emerging market funds. 3. Professional Management  A fund manager can invest an investor's money wisely with the aid of precise data, technical know-how, and international investing experience. Any new investor can use an emerging market fund to take advantage of this opportunity in emerging markets.  Disadvantages of Investing in Emerging Market Funds 1. Risk Inflation Risk: In emerging markets, rapid economic expansion frequently causes inflation.  Currency Risk: If investments are held in other nations whose currencies fluctuate against the US dollar, those investments will likewise vary.  Liquidity Risk: Securities trade less frequently in many international marketplaces. In such circumstances, it becomes challenging to acquire or sell a few particular shares. In other words, these markets lack the developed economies' levels of liquidity.  Political Risk: Political unrest and wars are more common in emerging nations, which puts pressure on the stock and bond markets. 2. Constant Surveillance  Investors must monitor a variety of market trends. Any country's market performance may be impacted by political, social, or economic changes. The performance of funds may be impacted as a result.  3. Lack of information  Fund managers might not consistently follow a foreign company. Investors consequently frequently make decisions based on incomplete information. Who should invest in funds for Emerging Markets?  Investors must feel at ease with the dangers of investing in emerging markets. By utilizing overseas markets, investing in this fund allows for portfolio diversification. Investors might also think about investing in these funds if they have the time to research international markets and have a working knowledge of financial instruments and their components. For growth investors looking for long-term investment opportunities across international markets, these products are excellent. Conclusion  Emerging markets are quite risky and take a long time to grow. For long-term investors with a high-risk tolerance, this fund is a good choice. But these don’t come without their limitations, so read the terms and risks involved before investing in any funds.  If you are still confused or need information regarding this, our team of efficient financial advisors is constantly available to guide and help you through the process. Consult an expert advisor to get the right plan TALK TO AN EXPERT

UTI is one of the pioneers of the Indian Mutual Fund Industry. With over Rs 2.4 lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMF offers products across asset classes.   Let us talk about the flagship product – UTI Focused Equity Fund. UTI-focused equity fund 1. Investment objective The investment objective of the scheme is to generate long-term capital appreciation by investing in equity & equity-related instruments of a maximum of 30 stocks across market caps. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.  2. Investment process   The investment strategy of UTI Focused Equity Fund involves investing in companies that have sustainable business models, are run by seasoned management, and generate high returns on invested capital. The fund primarily relies on bottom-up stock picking to create substantial long-term wealth.  3. Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 67% and sectoral major exposure is to financial services that account for roughly one-third of the portfolio. The top 5 sectors hold nearly 75% of the portfolio.  Note: Data as of 30th Sep 2022. Source: UTIMF  Performance over 1 year Note: Performance of the fund since launch; Inception Date – Aug 26, 2021 Source: utimf.com  The UTI-Focused Equity Fund has underperformed against the benchmark. This is mainly because the investment horizon is very short in this case as the fund is very new. Investors have to be invested for a longer investment horizon to see the fund outperforming the benchmark. Fund manager at UTI-Focused Equity Fund The fund is ably managed by Vishal Chopda. Mr. Vishal Chopda is the Vice President and Fund Manager in the domestic Equity Division of UTI Asset Management Company Ltd. Vishal joined UTI AMC in January 2011. In UTI he has worked for the past 7 years in the Department of Fund Management as Research Analyst. He has previously worked with CARE Ratings (Credit Analysis and Research Ltd). He is a CFA Charter holder from The CFA Institute, USA, and also holds a PGDM from Management Development Institute, Gurgaon. He has completed his B.E. from Mumbai University.  Who should invest in UTI Focused Equity Fund?  Investors looking to  Build their core equity portfolio for long-term wealth creation.  Own a portfolio of both large & mid-capitalization stocks.  Why invest in a UTI-Focused Equity Fund?  Investors looking for a high-conviction and concentrated portfolio backed by research expertise and risk assessment framework.  who have a long-term goal of wealth creation and balance an overall conservative portfolio construct.  Horizon  One should look at investing for a minimum of 5 years or more  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The UTI Focused Equity Fund is a relatively new fund with a focused portfolio holding. It is best for investors who are looking for a concentrated portfolio backed by research and want to create wealth in the long term by having a high-risk strategy in their portfolio.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

UTI is one of the pioneers of the Indian Mutual Fund Industry. With over Rs 2.4 lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMF offers products across asset classes.   Let us talk about the flagship product – UTI Core Equity Fund. About UTI Core Equity Fund  Investment objective The objective of the scheme is to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of large-cap and mid-cap companies.  Investment process   The UTI Core Equity Fund carries a top-down approach, going through short-term challenges and trading at below long-term averages. It focuses on stocks that are below their long-term averages or when it is cheap relative to market aggregates. Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 50% and sectoral major exposure is to financial services that account for roughly one-third of the portfolio. The top 5 sectors hold nearly 75% of the portfolio. Note: Data as of 30th Sep 2022. Source: UTIMF  Top 5 holdings Name Sector Weightage % ICICI Bank Ltd. Financial Services 5.50 HDFC Bank Ltd. Financial Services 5.28 ITC Ltd. Consumer Goods 3.58 Federal Bank Ltd. Financial Services 3.56 State Bank of India Financial Services 3.55 Note: Data as of 30th Sep 2022. Source: UTIMF  Performance over 13 years Below are the rolling returns of the fund since inception.  Note: Data as of 30th Sep 2022. Source: UTIMF The fund has given consistent returns and has outperformed the benchmark over the period of 13 years by generating a CAGR (Compounded Annual Growth Rate) of 11.42%.  Fund Manager  The fund is ably managed by V. Srivatsa. Mr. V. Srivatsa. He is an Executive Vice President, Fund Manager – Equity at UTI AMC Ltd. He is a BCom graduate, C.A., C.W.A., and has a PGDM from IIM, Indore. He has been with UTI AMC since 2002. Prior to joining UTI, he worked with Ford, Rhodes Parks & Co., Chartered Accountants for 2 years, and as Officer-Audit in Madras Cements Ltd. He started in UTI AMC in the Department of securities research covering varied sectors such as Information Technology, Capital goods, and metals.  Who should invest in UTI Core Equity Fund?  Investors looking to  Build their core equity portfolio for steady wealth creation.  Own a portfolio of both large & mid-capitalization stocks.  Why invest in UTI Core Equity Fund?  Large-cap stocks endeavor to provide stability & liquidity and mid-cap stocks can potentially generate superior returns for the portfolio.  The Fund maintains a well-diversified portfolio and avoids sector as well as stock concentration.  Horizon  One should look at investing for a minimum of 5 years or more.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The UTI Core Equity Fund is one of the oldest funds with a proven track record of 13 years and has delivered 11.42% CAGR consistently. Thus, it is best for investors who want stable returns with large-cap stocks and high growth potential with mid-cap stocks.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

Setting both long-term and short-term goals may seem like a waste of time to you. However, creating goals is crucial to the process of planning a career. Lack of planning can result in a chaotic future. Let's explore how to set short and long-term goals in more detail. What are short-term goals? Any objective that may be completed in less than two years is regarded as a short-term aim. Although this is a helpful generalization, it is ultimately somewhat arbitrary to decide where to divide goals into short-term and long-term categories. There are no appreciable differences between a goal completed in one and a half years and one completed in two years and a month. For your child's educational needs, a laptop or a phone can be a short-term objective. To save up for the expense and easily reach your objective, you can choose the appropriate finances and a time frame. You expect to complete this short-term objective in the next one to two years. To start a short-term goal for your child's educational aspirations, click here. What are long-term goals? However, anything that takes more than five years is seen as a long-term objective. Long-term goals can be things like saving for retirement and paying off a mortgage. However, using the terms "short-term" and "long-term" alone isn't always enough. Some individuals advise adding medium-term goals as well. Usually, it takes two to five years to accomplish these goals. The two temporal periods work well together while appearing to contradict one another. Short-term goals are shaped by long-term objectives. A long-term objective might be for your child to attend their ideal college. A long time horizon is typically necessary for long-term goals. The best course of action is to start saving for your child's college 10-15 years in advance. This offers you enough time to grow your money and make the necessary adjustments over the years to have the appropriate sum by the time your child leaves for college. How to set short and long-term goals Your perseverance will be the most important factor in your success, but it will be much harder to achieve your goals if you don't set them up properly. Your long-term and short-term objectives must satisfy the following requirements: 1. Write down your Goals An unstated objective is nothing more than a wish. Humans have a tendency to fantasize and believe in impossible things. In order to achieve our goals, we must take decisive action. You must put your long-term objectives in writing. Your aim will enter the physical world as a result of this one action. Your chances of success increase significantly just by doing this. It is a reminder now, after all. A prompt to set out and achieve that objective. 2. Your goals must be measurable  Have a deadline for completing your goals and a method to determine whether you have done so. You may even divide them into more manageable checkpoints you can gauge along the road. 3. Be realistic Your long-term objectives must line up with your aptitudes and competencies. If you can't sing or play an instrument, saying, "I want to win a Grammy Award", might not be the best objective for you. Consider your abilities as you create goals, keeping in mind your level of experience. 4. Take baby steps over time to achieve your goals  A deadline for your objective is not required, but it may help you keep on track to accomplish it. Divide a long-term goal into smaller objectives. Baby steps are preferable to a single, enormous leap. 5. Pair each goal with an action Consider enrolling in a book writing seminar or practicing writing one chapter every week for a month if your objective is to write a book. 6. Be flexible If you run into roadblocks that endanger your development, don't give up. Change your objectives properly, instead. Let's imagine you must continue working to support yourself, preventing you from enrolling in college full-time. You can enroll in part-time classes and complete your bachelor's degree in six or eight years, even if it might not be practical to do so in four years. Being flexible also involves having the ability to let go of objectives that no longer serve you and focus your efforts on achieving new ones. The most crucial element is constancy. You have to make your unique road map to success by setting long-term goals and then dividing them into smaller goals that are simple to achieve. Consult an expert advisor to get the right plan TALK TO AN EXPERT

UTI is one of the pioneers of the Indian Mutual Fund Industry. With over Rs 2.4 lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMF offers products across asset classes.   Let us talk about the flagship product – UTI Long-Term Equity Fund.  About UTI Long-Term Equity Fund  Investment Objective The primary objective of the scheme is to invest predominantly in equity and equity-related securities of companies across the market capitalization spectrum. Securities shall also include fully/partly convertible debentures/bonds.  Investment Process  The UTI Long Term Equity Fund carries a top-down approach for sector selection and a bottom-up for stock selection. It follows a blended style of investing with a preference for companies with consistent cash flow generation, healthy balance sheets,s and reasonable valuations.  Portfolio Composition  The portfolio holds the major exposure in large-cap stocks at 76% and sectoral major exposure is to financial services which account for roughly one-third of the portfolio. The top 5 sectors hold nearly 75% of the portfolio.  Note: Data as of 30th Sep 2022. Source: UTIMF  Top 5 holdings Name Sector Weightage % ICICI Bank Financial Services 8.53 HDFC Bank Financial Services 7.58 Infosys Information Technology 6.35 Axis Bank Ltd. Financial Services 4.58 Bharti Airtel Ltd. Telecommunications 3.73 Note: Data as of 30th Sep 2022. Source: UTIMF   Performance over 22 years  If you would have invested 10,000 at the time of inception of the UTI Long Term Equity Fund, it would be now valued at Rs 2.22 Lakhs whereas the benchmark (Nifty 500 TRI) would have fetched you Rs 1.89 Lakhs. Note: Performance of the fund since launch; Inception Date – Dec 15, 1999 Source: utimf.com   The UTI Long Term Equity Fund has given consistent returns and has outperformed the benchmark over the period of 22 years generating a CAGR (Compounded Annual Growth Rate) of 14.65%.  Fund Manager  The fund is ably managed by Vishal Chopda. Vishal Chopda is the Vice President and Fund Manager in the domestic Equity Division of UTI Asset Management Company Ltd. Vishal joined UTI AMC in January 2011. After joining UTI, he has worked for the past 7 years in the Department of Fund Management as Research Analyst. He has previously worked with CARE Ratings (Credit Analysis and Research Ltd). He is a CFA Charter holder from The CFA Institute, USA, and also holds a PGDM from Management Development Institute, Gurgaon. He has completed his B.E. from Mumbai University.  Who should Invest in UTI Long-Term Equity Fund?  Investors looking for  Equity Linked Savings Scheme (ELSS) that aims to generate long-term capital appreciation by primarily investing in equity and related securities.  a long-term wealth creation vehicle investment horizon. Why Invest in UTI Long-Term Equity Fund?  Provides tax deduction up to the limits specified u/s 80C of the Income Tax Act, 1961.  The fund attempts to invest in businesses having healthy return ratios, cash flows, and sound management, with an aim to provide superior risk-adjusted return  Horizon  One should look at investing for a minimum of 5 years or more  Lumpsum is a better way to invest in ELSS to avoid a prolonged lock-in period on your SIP investments.  Conclusion  The UTI Long Term Equity Fund is the oldest fund with a proven track record of 22 years and has delivered 14.65% CAGR consistently. Thus, suitable for even first-time equity investors who want to earn better risk-adjusted returns and avail of tax exemptions at the same time.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

We already saw some of the best investment plans in India for one year. Here, we’ll get to know some of the best investment plans in India for five years. There are many investment options available, majorly in the equity and debt funds segment. Investment plans in India for five years.  a) Equity funds and Hybrid funds  Equity mutual funds are investment instruments that primarily invest in stocks of various companies across different sectors. Equity mutual funds are the riskiest category of mutual funds because of the high exposure (at least 65%, according to the rules laid down by the Security and Exchange Board of India) to equity markets.  On the other hand, Hybrid funds are less risky than equity funds because they are a mix of equity and debt funds; also, hybrid funds are less liquid than equity funds. Both hybrid and equity funds are for investors with a time frame of 5-7 years.  b) Above-average to high-risk funds  If you search for more than the market returns, you should bear more than the usual risk. The best option, in this case, are equity mutual funds because of their very high exposure to the equity markets.  Within equity funds, small-cap and mid-cap funds are riskier. However, these funds provide the chance to make unusually high gains.  c) Long-term funds  When your investment horizon is long, say ten years. Your best road is to have equity in the highest proportion in your portfolio because, in the long run, the share markets outperform nearly every other standard asset class.  The best options for this type of investment are either purely equity-based funds or hybrid funds with very high exposure to equity (and a small investment in debt).  d) Other funds  Regarding the instruments mentioned above, there are other options as well.  1. Index funds  Track particular indices in the market and invest in the movement of the index.  2. Flexi-cap funds  These funds diversify the investment because they invest in a mix of large-cap, small-cap and mid-cap companies for greater exposure to the entire market.   Another less discussed investment option is the Dynamic Asset allocation fund – these funds are a type of hybrid fund, and, as the name suggests, the funds are invested and dispersed across stocks, bonds, real estate, etc.   Balanced funds that invest primarily in equities with some exposure to FD-like securities are known as aggressive hybrid funds; because of the diversification of investments, these funds are less risky than pure equity while providing nearly identical long-term returns. Source: Pexels Which funds are available in India?   Some available funds are:  1. Axis Midcap Fund  This scheme aims to achieve long-term capital appreciation by investing primarily in mid-cap stocks and equity-related assets.  2. DSP Midcap Fund  It primarily aspires to achieve long-term appreciation by investments in midcap firms and other equity-related assets.  3. Tata Index Nifty Fund  The Tata index super funds strategy generates medium to long-term financial returns by investing in equity shares of just those firms' part of the Nifty 50 index, in the same proportion index.  4. Navi Nifty Index Fund  The investment objective is to produce a return comparable to the Nifty 50 index by investing in stocks of companies that make up the index, subject to tracking error.  5. Parag Parikh Flexi Cap Fund  The fund’s aim is to achieve long-term capital growth from an actively managed portfolio comprising majority equity investments.  6. DSP Dynamic Asset Allocation Fund  This hybrid, dynamic asset allocation fund considers the CRISIL Hybrid 50+50 Moderate index as the benchmark. Investment in this fund carries a moderately high level of risk.  7. Tata Balanced Advantage Fund  Investment is in a mix of equity, arbitrage, and debt portfolios to maximize capital appreciation and income distribution. The scheme tries to follow the market trend with a good balance of debt and equity.  FAQs What is the best investment in India 2023? Some of the best investment options in India in 2023 are: Public Provident Fund (PPF)National Savings Certificate (NSC)Post Office Monthly Income Scheme.Government BondsNational Pension Scheme (NPS)Sovereign Gold Bonds (SGBs)Equity Mutual Funds.Unit-linked Insurance Plans (ULIPs) What is best investment for future in India? The best investment for future in India are mutual funds, stocks, bonds, index funds, ULIPs. Investment options are determined by your time horizon, risk tolerance and financial goal. Which SIP is best for 5 years in India? Some of the best funds that offer SIP are: Axis Midcap Fund DSP Midcap Fund Tata Index Nifty Fund Navi Nifty Index Fund Parag Parikh Flexi Cap Fund DSP Dynamic Asset Allocation Fund Tata Balanced Advantage Fund This is not an investment advice. Please consult your financial advisor before investing. Which investment is best for 5 years? Public Provident Fund (PPF)National Savings Certificate (NSC)Post Office Monthly Income Scheme.Government BondsNational Pension Scheme (NPS)Sovereign Gold Bonds (SGBs)Equity Mutual Funds.Unit-linked Insurance Plans (ULIPs) My son is in 9th grade, and I want to save for his college. What are some top fund options for a 5-year investment plan? Some of the top SIPs for 5 years in debt and equity funds are the following - ICICI Prudential Technology Fund, DSP Equity Fund, HDFC Balance Advantage Fund, Quant Infrastructure Fund, TATA India Consumer Fund, Nippon India Large Cap Fund, etc. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Artificial intelligence will prove to be one of the important investment trends in the coming years. But let's be clear: Artificial intelligence is already here.  According to Grand View Research, a business consulting organization, the worldwide artificial intelligence market was worth $39.9 billion in 2019.  Over the last year, artificial intelligence equities like Amazon.com (AMZN), Tesla (TSLA), and Nvidia (NVDA) have been market darlings, outperforming the overall market several times. With ETFs in action, most Artificial Intelligence ETFs are seeing at least a doubling in market value since last year.  What is Artificial Intelligence ETFs (AI ETFs)?  Artificial Intelligence ETFs are exchange-traded funds that invest in equities of artificial intelligence firms, such as robotics, navigational systems, automated machines, 3D printing, natural language processing, social media, and vehicles.  AI ETFs may invest entirely in AI stocks or incorporate other technology-related stocks in their portfolios. Source: Pexels ETFs that invest in artificial intelligence must satisfy at least one of these three criteria 1. They are funds that invest in firms developing new products or services, making technological advancements in a scientific study relating to artificial intelligence, or both.  2. These are funds with at least 25% of their portfolio invested in companies that spend a lot of money on artificial intelligence research and development. Amazon, Tesla Motors, Apple, and Alphabet are examples of such businesses.  3. Funds that choose specific assets for selection in the fund using artificial intelligence approaches.  How to invest in Artificial Intelligence ETFs?  AI ETFs are, arguably, the finest method to invest in AI technology - because, like with other specialized sectors still in the early phases of the growth cycle, picking specific companies that will dominate the industry is intrinsically difficult and risky.  When you buy in an AI ETF, you'll often gain exposure to numerous stocks, lowering your total market risk by diversifying your holdings.  Artificial Intelligence ETFs have $8.56 billion in assets under management, with 35 ETFs trading on US exchanges. The cost-to-income ratio is 0.68 percent on average. With $1.96 billion in assets, the Global X Robotics & Artificial Intelligence ETF BOTZ is the largest Artificial Intelligence ETF. IECS, the best-performing Artificial Intelligence ETF in the previous year, returned 16.25 percent.   The Advisor Shares Let Bob AI-Powered Momentum ETF LETB was the most recent ETF to come into the market in the Artificial Intelligence area on 02/08/22.  Top AI ETFs with respect to % change and AUM  Top ETF Performers according to etf.com TickerFund NameTrailing 30-day price TR changeDUDEMerlyn.AI SectorSurfer Momentum ETF3.24%WIZMerlyn.AI Bull-Rider Bear-Fighter ETF3.18%BOBMerlyn.AI Best-of-Breed Core Momentum ETF1.68%SNUGMerlyn.AI Tactical Growth and Income ETF1.56%ARKQARK Autonomous Technology & Robotics ETF0.31% Top ETF Performers in terms of AUM according to etf.com TickerFund NameTrailing 30-day price AUM changeLETBAdvisorShares Let Bob AI-Powered Momentum ETF3,390.76%DUDEMerlyn.AI SectorSurfer Momentum ETF18.37%BOBMerlyn.AI Best-of-Breed Core Momentum ETF16.19%WIZMerlyn.AI Bull-Rider Bear-Fighter ETF15.31%NVQQRAFT AI-Enhanced U.S. Next Value ETF11.85% FAQs What is AI ETF? Artificial Intelligence ETFs are exchange-traded funds that invest in equities of artificial intelligence firms, such as robotics, navigational systems, automated machines, 3D printing, natural language processing, social media, and vehicles. What are the top 5 artificial intelligence stocks? The top 5 artificial intelligence stocks are: Meta Platforms Inc. ( META)Nvidia Corp. ( NVDA)Adobe Inc. ( ADBE)International Business Machines Corp. ( IBM)Intuitive Surgical Inc. ( ISRG) What is a good AI stock to invest? Meta Platforms Inc. ( META)Nvidia Corp. ( NVDA)Adobe Inc. ( ADBE)International Business Machines Corp. ( IBM)Intuitive Surgical Inc. ( ISRG) What are some good AI ETFs to invest? AdvisorShares Let Bob AI-Powered Momentum ETF Merlyn.AI SectorSurfer Momentum ETF Merlyn.AI Best-of-Breed Core Momentum ETF The bottom line of AI ETFs is that robots, automation, and artificial intelligence have the potential to grow in demand in the future.  As a result, AI equities and AI ETFs have substantial growth potential, while the market risk is often more significant than the more diversified investments.  Investors should exercise caution when adding minorly targeted sector funds to a portfolio, such as AI ETFs. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

The affordable living expenses in Germany, a stable economy, high-class living, and numerous job opportunities make the country one of the premier destinations for quality education and successful careers.  The cost of living in Germany depends on the location of the university because some cities are relatively more expensive than others. It is important to be flexible if a student wants to thrive on a limited amount. The average living expenses in Germany for Indian students vary between 10,200 EUR – 12,000 EUR (nearly INR 8.1 lakhs – INR 9.5 lakhs) every year.  Students should be aware of their living expenses before traveling abroad as it is helpful in creating a budget for living expenses. The college cost calculator on the Edufund app is a blessing as it helps to get an estimate about the future living expenses besides the education costs and create a personalized financial budget based on needs and requirements. Semester contributions Most of the universities in Germany are state-run; hence the education cost is a bare minimum. Students, however, have to contribute between EUR 175 – EUR 250 (nearly INR 13,993 – INR 19,990) per semester for administrative fees and student amenities.  Students can also apply for a public transport pass or a semester ticket that costs between EUR 25 – EUR 200 (nearly INR 1,999 – INR 15,992) for six months, based on the type and location of the university. They will not have to pay for transport for the next six months.   Private institutions in Germany charge tuition fees, especially for non-EU citizens. Additional read: Education loan process for Germany Living expenses in Germany for Indian Students 1. Accommodation (average monthly cost) An important chunk of the living expenses goes towards accommodation costs, which depend on the location of the university and the type of accommodation the student prefers.  The preferred accommodations and their average cost per month are. 2. Food (average monthly cost) Students have access to restaurants and cafes on the university campus, where they can eat at discounted prices. For students that live off-campus, local street vendors and food trucks are an option.  The living expenses in Germany are manageable for Indian students as there are Indian stores that can provide ingredients to cook authentic food items. Students who have to rely on restaurants need to remember that eating out on a regular basis will prove expensive.  Self-cooking is the best way to manage funds because the cost of basic food and beverages is affordable.  Average costs on some of the common food items include. 3. Transportation  The daily public transport facilities in Germany cost around EUR 20 (nearly INR 1,599) and a monthly pass will cost EUR 200 (nearly INR 15,992). Students can apply for student passes or choose to move around via rented bicycles at a nominal fee. 4. Health insurance International students must have health insurance in Germany. Students who are studying degree programs are eligible for a public health insurance plan that costs between EUR 70 – EUR 80 (nearly INR 5,597 – INR 6396) per month. Whereas students above 30+ should have private health insurance that costs between EUR 400 – EUR 500 ((nearly INR 31,984 – INR 39,980) per month. 5. Utilities and Bills Students living off-campus have to pay for water, electricity, garbage, and heating. In some cases, the bill is included with rent, otherwise; it costs nearly EUR 29.42 ((nearly INR 2,352) for a kilowatt-hour. How to save more as an international student in Germany?  Keep a fixed budget for the month Studying abroad means, you will be away from your parent and you’ll be alone so you need to have a budget for everything.  Talk to locals  Talk to locals around you because they know that place more than you. They will tell you the best deals around you in restaurants, cafes, and all.  Cook for yourself Go to the local grocery market and cook for yourself. Eating outside daily can cost you way more than cooking for yourself.  Get a flatmate/roommate Sharing space and your accommodation mean that you will be able to cut costs. It will save you money. Staying alone in a flat or room means you will spend more. If you get a flatmate/roommate, the price of that place will be half. You will end up splitting utility costs as well.   Do a side hustle Earn money by doing some part-time jobs or a side hustle. By doing that you will learn and also earn extra for you.   Use public transportation or a bicycle Using public transport daily is the best way to save money in countries like Germany. Private cabs and rentals can be very expensive for students. If you live in a small town, then opting for a bicycle to roam the city is the most cost-effective method.   Go secondhand Cut costs wherever you can and the best way to do this is by opting for second-hand products. Suppose you need a bicycle, no need to get a new one! Buy it from a second-hand market or from someone who doesn’t want his/her bicycle anymore.  Save money wherever you can Cut off your unnecessary plans. There is Wi-Fi everywhere so instead of buying data plans use them. You should also unsubscribe from OTT subscriptions you are not using anymore. Or any auto-debit subscription that is not in active use.  FAQs How can international students save money in Germany? Here are some tips on how to save money in Germany: keep a maintained budget  Talk to locals  Cook for yourself   Get a flatmate/roommate  Do a side hustle  Get a bicycle  Go for secondhand  Save on your mobile bills  Is it expensive to live and study in Germany as an international student? In comparison to other countries and cities, Germany is one of the places which is less expensive. How much money can international students earn in Germany? You can earn around 450 euros (Rs 37,000) per month by doing part-time jobs. How much money do I need as a student in Germany? On average around 870 euros (Rs 71,000) for a month is all you need for your expenses. Conclusion Prestigious universities and reasonable living expenses in Germany make the country an excellent choice for studying abroad. If you are in a dilemma about the cost of living, then consult with the counselors on the Edufund app to know more about it in detail. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Bull market vs bear market - you have probably heard these terms in the news. There are many options, complications, and foreign terminologies in the world of investment. The terms "bull" and "bear" are regularly used to describe market circumstances. These phrases explain the general state of the stock markets, including whether their value is increasing or decreasing. Additionally, as an investor, the market's direction is a powerful factor that greatly affects your portfolio. Determining how each of these market circumstances may affect your assets is crucial. What is a Bull market? A financial market is said to be in a bull market when prices are increasing or are anticipated to rise. The word "bull market" may refer to anything that is traded, including bonds, real estate, currencies, and commodities. However, it is most frequently used to describe the stock market. The term "bull market" is normally reserved for prolonged periods in which a significant share of asset prices is rising. This is due to the fact that while trading, the prices of securities essentially fluctuate continually. Bull markets often last for several months or even years. What is a Bear market? Bear markets, which happen when stock values fall 20% or more over a protracted period, are the exact reverse of bull markets in that they are driven by pessimism. Bear markets sometimes take place at times of economic downturn and elevated unemployment, whereas bull markets are typically driven by economic strength. Investors desire to sell, frequently running for the security of cash or fixed-income instruments instead of buying into the market. There is a seller's market as a result. Bear markets can exist for a short while or for a long time. Bull vs Bear market Following is the difference between Bull and Bear Market based on various factors: How should you invest in a Bull or Bear market? Value equities are often better investments in down markets, whereas growth stocks typically perform well in bull markets. Because people believe that "undervalued" equities must be inexpensive for a reason while the economy is expanding, value stocks are often less popular during bull markets. Your time horizon will largely determine how you invest in stocks during bull and bear markets. It doesn't matter if the market is now bullish or negative if you won't need the money for a longer time span.  If you are a buy-and-hold investor, you generally shouldn't alter your investment approach in response to current market circumstances. Even when other asset classes are experiencing bull markets, the stock market can be bearish, and vice versa. Allocating a portion of your portfolio to gold or real estate may be a wise decision if the stock market is rising and you are worried about price inflation.  You may think about raising the percentage of bonds in your portfolio or perhaps turning a piece of it into cash if the stock market is down. Additionally, you should think about geographically distributing your holdings so that you can profit from bull markets that happen in different parts of the world. Keep your attention on the long-term potential of the firms in which you have investments, regardless of the status of the stock market. Businesses with strong fundamentals are more likely to generate long-term gains that are significant for your portfolio. FAQs What is a bull and bear market? A financial market is said to be in a bull market when prices are increasing or are anticipated to rise. The word "bull market" may refer to anything that is traded, including bonds, real estate, currencies, and commodities. Bear markets, which happen when stock values fall 20% or more over a protracted period, are the exact reverse of bull markets in that they are driven by pessimism. Which is better bull market or bear market? The economy grows in a bull market while in bear market, economy slows down. Companies register more revenue and profit during the former while in the latter, they are likely to suffer losses or a slow down. Why is it called bull vs bear market? A bull market is when the economy is aggressive and securities and assets are on a rise. A bear market is when the economy swipes down and stock prices tend to fall. These are referred to as bull vs bear market as they replicate the behaviour of the respective animals. Should I buy during a bear market? Yes, buying assets during a bear market is a good investment idea. Prices are on the lower end and you are likely to see a profit if you stay invested for a long-term goal. Thus, we hope that by now, you have understood the concept and the difference between Bull and Bear markets. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Similar to how one might set up a systematic mutual fund investment plan, one can create a systematic withdrawal plan to get a stream of regular income from investments on a specific date each month. In this blog, let’s talk about SWP in mutual funds. What is SWP (systematic withdrawal plan) Bank fixed deposits or postal deposits are frequently the default choice for investors who want a consistent cash flow from their assets. Investors are now concerned about their future needs for income due to the falling interest rates on these programs. SWP, a mutual fund product, provides a remedy for this. SWP, or systematic withdrawal plan, is a mutual fund investing strategy that enables investors to take fixed distributions from their mutual fund investments at predetermined intervals, such as monthly, quarterly, or yearly. The AMC will credit the amount of the withdrawal to the investors' bank accounts on the day of the month, quarter, or year they specify. The SWP Plan redeems mutual fund scheme units at the specified frequency to produce this cash flow. As long as there are still available units in the plan, investors may continue with SWP. Benefits of SWP The following are the top benefits of SWP:  Flexibility: A SWP plan gives the investor the freedom to select the amount, frequency, and date in accordance with his or her needs. The investor may also stop the SWP at any moment, make additional investments, or withdraw money in excess of the fixed SWP withdrawals. Regular Income: SWP in mutual funds makes investing easier for investors by generating a consistent income from their holdings. For people who want constant cash flow to cover ongoing expenses, this becomes very beneficial and convenient. Capital appreciation: SWP in mutual funds makes investing easier for investors by generating a consistent income from their holdings. For people who want constant cash flow to cover ongoing expenses, this becomes very beneficial and convenient. No TDS: There is no TDS on the SWP amount for domestic individual investors. Tax efficiency through SWP When units are redeemed to get the SWP amount, the gains from the selling of the units are subject to capital gain (if the redemption NAV is higher than the purchase NAV). Depending on the factors listed below, a capital gain may be defined as short-term or long-term: Equity-Oriented Funds: These are considered short-term gains if redeemed within a year of the investment date and are subject to a 15% tax. Gains realized more than a year after the date of investment are considered long-term gains and are exempt from tax up to Rs 1 lakh every financial year. Only 10% of long-term capital gains over Rs 1 lakh are subject to tax. Non-Equity Funds: If redeemed within 36 months (treated as a short-term capital gain) from the date of investment, the gains are added to the investor’s income and taxed at the rate applicable to him/her. Gains made beyond three years are considered long-term and are subject to 20% taxation after indexation benefits. For domestic individual investors, there is no TDS on capital gains in mutual funds, unlike traditional savings (such as FDs and postal investments). In addition to TDS, interest income from FDs and the majority of post office modest savings plans are taxed at the investor's individual income tax rate. Since the AMC deducts TDS at a rate of 10% from the declared income, SWP in mutual funds is preferable to dividends in mutual funds. Additionally, investors must pay taxes on the dividends they receive. How can you withdraw from SWP?   In mutual funds, SWP enables investors to personalize their withdrawal schedules. A specific sum can be paid to a person every month, every six months, every three months, or every year. With an appreciation withdrawal, you can only take out the amount that has increased in value while leaving the rest invested to grow. Why is SWP a good investment? You can withdraw money from an SWP plan in accordance with your needs. An SWP might help with cash requirements if your plan calls for funding in stages. With an SWP plan, you can withdraw money in accordance with your demands. You can facilitate cash requirements with an SWP if your aim demands funding in stages. With regular withdrawals, an SWP can assist in preserving the value of your investment, particularly when the market is erratic. SWP plans are a tool that investors can use to plan their retirement income. It enables people to routinely get a fixed income on a set day to cover their cash needs. It may take some time to fully understand your alternatives when picking an SWP.  As a result, we advise you to weigh all of your options before making a purchase. The majority of mutual funds will let you create a schedule for withdrawals that you may follow FAQ What is SWP in mutual funds? SWP, a mutual fund product, provides a remedy for this SWP, or systematic withdrawal plan, is a mutual fund investing strategy that enables investors to take fixed distributions from their mutual fund investments at predetermined intervals, such as monthly, quarterly, or yearly. Is SWP better than FD? The benefit of investing in SWP in mutual funds is that you pay fewer taxes and you have more flexibility to change withdrawals. Can I stop SWP anytime? Yes, SWP investors can choose the amount they like. date of withdrawal, and amount. You can also stop and withdraw the money as well. Is SWP income taxable? SWP redemption is taxable. Consult an expert advisor to get the right plan TALK TO AN EXPERT