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As you build wealth and make plans to enable your children to live a better, more comfortable life, you must also take note of the tax implications of the wealth you are creating for your family. In most cases, tax is applied to a corpus every time it changes hands, and as your corpus grows, you also pay taxes on the returns. This affects your earnings as you are expected to shell out a certain percentage as taxes. The more you earn, the higher the percentage of tax you pay. When you are looking at building your corpus/wealth that you will ultimately pass on to the next generation, you must look at legally safe ways of saving tax on your funds. Few tax-smart ways to help your kids financially 1. Start with a bank account While piggy banks are cute, they don’t really give you much benefit. When you open a savings bank account for your child, the interest income up to Rs 1,500 per child for a maximum of two children, per year, will be tax-exempt under Section 10 (32). This implies you can save up to Rs. 3,000 in tax if you have two kids. 2. Invest in your child A good way to start building a corpus for your child’s future is to start putting money into PPF, mutual funds, and some traditional plans. Your investments in these instruments under section 80C are fully tax-exempt till you reach the limit, but the income from this is added to your income and taxed at applicable rates. One of the tax-smart ways around these investments is to keep your profits from these under Rs. 1 lakh If you have not exhausted the Section 80C limit of Rs 1.5 lakh a year with your investments, you can invest for your child to avail of the full exemption. For instance, you can invest in the PPF, Ulips, mutual funds, and some traditional plans, but remember that the income from these will be added to your income and taxed at the applicable rate. This can be avoided by investing in instruments that do not tax income, such as the PPF, or equity mutual funds, where the profit is not taxed if it is less than Rs 1 lakh a year. Additional read: Money mistakes to avoid in the 30s 3. Invest in adult children’s names If your child is above 18 years of age, his / her income from his or her investments will be independent. It will not be clubbed under your income. So if his / her earnings are in the nontaxable slab, you will be able to save on tax by gifting money for his / her investments. 4. Tuition fees can save you cash This is a really small amount given the large education fees being charged these days but when you are looking for tax-smart ways of building your wealth, every little bit helps. Under section 80C, with a deduction limit of Rs. 1.5 lakhs, you can save Rs.100 per month per child paid towards tuition fees for up to two children. That’s Rs. 2400 per year if you have two children and you can also claim an exemption for hostel fees of up to Rs. 300 per month, per child. In the case of two children, this amount totals Rs. 7200 per year. These amounts may seem small but can add up to a handsome sum over the year. 5. Education loan is tax-smart As in home loans, education loans taken for your child’s higher education can give you tax shelter. The interest component paid on the loan will be deductible under Section 80E for eight years from the time that the repayment starts. 6. Invest in health insurance Premium paid towards health insurance of your children up to Rs. 25,000 a year is tax-exempt under Section 80D. Expenses incurred for preventive health check-ups up to Rs 5,000 are also included in this Rs. 25,000/-. 7. Deduction for disabled children Parents of differently abled children or offspring with certain diseases are eligible for deduction under Section 80DDB for the medical expenses incurred. A deduction of Rs 40,000 or actual expenses can be claimed, whichever is lesser, in case of a disease. For 40%- 80% disability, you can claim up to Rs 75,000, and for over 80%, the available deduction is Rs 1.25 lakh. As bringing up children becomes increasingly expensive, finding tax-smart ways to help your children can help you build a decent fund over time. Be on the lookout for these and other tax-smart strategies that you can put into practice around your children and even parents.  In most cases, the earning members are carrying the financial burden without being aware that many of these expenses are eligible for tax deductions. So do read up and keep saving! TALK TO AN EXPERT

Definition of Alternative Investment Funds By SEBI  An AIF is defined as a fund formed or registered in India, under regulation 2(1)(b) of SEBI Regulations 2012, as a Limited Liability Partnership (LLP), corporation, trust, or body corporate that: It is a privately pooled investment entity that collects assets from investors, both domestic and international, and invests them according to a stated investment policy to benefit its stakeholders. It excludes funds subject to the SEBI (Collective Investment Schemes) Laws, 1999, SEBI (Mutual Funds) Regulations, 1996, or any other SEBI regulations governing fund management. Category 1  This category includes funds that invest in small and medium-sized enterprises (SMEs), start-ups, and new businesses with strong growth potential that are considered socially and economically viable. Since these initiatives have a multiplier effect on the economy in terms of growth and job creation, the government supports and encourages investment in them. This category includes.  1. Infrastructure Funds This fund invests in public assets such as road and rail infrastructure, airports, and communication infrastructure, among others. Since the infrastructure industry has high barriers to entry and relatively limited competition, investors who are positive about its future expansion can invest in the fund. The government can provide tax incentives to Infrastructure Funds that invest in socially desirable or viable projects.  2. Angel funds This is a type of venture capital fund where fund managers pool money from several "angel" investors to invest in early-stage companies. When new ventures become profitable, investors receive dividends. An "angel investor" is a person who wants to participate in an angel fund and contribute expertise in the field of business management, thereby supporting the growth of the company.  3. Venture Capital Funds Venture capital funds invest in high-growth startups that are cash-strapped and need financing to develop or expand their operations. Since it is difficult for entrepreneurs and new businesses to get cash through traditional banking, venture capital funds have become the most preferred source of capital.  4. Social Venture Funds Social Venture Fund (SVF), which invests in companies with a strong social conscience and a desire to have a good impact on society, is one example of socially responsible investing. The aim of these companies is to make money while solving environmental and social problems. Despite being a philanthropic investment, a profit can be expected as the businesses will continue to generate revenue. Additional read: Investment options for self-employed parents Category 2 Funds that are invested in both shares and debt instruments are included in this category. Additionally, those funds that are not currently classified as Category 1 or 3 are also included in this category. The government does not offer any tax benefits for investments in AIFs Category 2. This category includes:  1. Fund of Funds This fund is a combination of many AIFs. Rather than building its own portfolio or determining which particular sector to invest in, the fund's investment strategy is to invest in a portfolio of other AIFs. However, unlike a fund of funds within mutual funds, a fund of funds within an AIF cannot issue publicly traded fund units.  2. Debt Funds This fund essentially invests in debt instruments issued by both publicly traded and private companies. Companies with poor credit ratings are more likely to issue high-yield debt securities that are associated with high risk. As a result, companies with high expansion potential and strong corporate standards, but capital constraints, can be a good investment alternative for debt fund investors. As the Alternative Investment Fund is a privately incorporated investment entity, the money deposited in it cannot be used for lending as per SEBI regulations. 3. Private Equity Funds Invest in private companies that are not publicly listed and have a limited number of shareholders because unincorporated and illegal private businesses cannot raise funds from PE funds. In addition, these companies provide their clients with a broad portfolio of stocks, thereby minimizing investment risk. A PE fund usually has a predetermined investment horizon of 4-7 years. After seven years, the company aims to be able to exit the investment with a reasonable return. Category 3  AIFs in Category 3 are those that provide returns over a short period of time. These funds use several complicated and diversified trading methods to achieve their goals. The government provides no relief or incentive for these funds. This category includes:  1. Hedge funds To achieve high returns, a hedge fund combines funds from institutional and accredited investors and invests in domestic and foreign markets. They have a high level of leverage and are aggressive with their investment portfolio. Unlike their competitors, such as mutual funds and other investment vehicles, hedge funds are less regulated. These funds typically charge a 2% asset management fee and keep 20% of the profit earned as a fee.  2. Private Investments in Public Equity Funds The purchase of shares of publicly traded stock at a reduced price is referred to as a private investment in public equity funds. This allows the investor to get a stake in the business while the company selling the stake benefits from the cash flow. Pros and Cons AIFs Like all financial instruments, have their pros and cons. Below is a list of pros and cons:  Pros  Diversification of market strategies and investment types is facilitated with the help of AIF.  It comes with a strong potential to improve investment performance. Because their success is not based on the ups and downs of the stock market, alternative investments can help reduce the volatility often associated with traditional investments. Cons  Alternative investment funds are complex and doing your research before investing in them is essential.  A large initial investment is required, which is beyond the reach of retail investors. Conclusion AIFs are an attractive investment option for HNI investors who aspire to receive high risks and returns. Investors should conduct proper market research about AIF investment options before investing. Consult an expert advisor to get the right plan TALK TO AN EXPERT

SIP is a Systematic Investment Plan that allows one to invest a fixed small amount every month in a preferred mutual fund scheme.   For example, if you save ₹5000, subtracting all other discretionary and necessary expenses from your income, you could contribute it to a SIP fund. Setting up a SIP, the particular fund gets deducted on the day of the month’s completion. If you started a SIP on 5th September 2022, the following payment would be on 5th October 2022. The amount usually gets debited from the account automatically. If you invest ₹5000 for 10 years in SIP, with 12% interest, it translates into ₹11,50, 193.45 post maturity. It is a low-risk investment, and compounding enables rapid growth. Here is how easy it is to start a SIP investing on the EduFund App for your child's brighter future with personalized plans. How to start a SIP investment on the EduFund App? Step 1: Download and Sign up with EduFund Go online with SIP investments with EduFund. Download the application and sign up with personal details. The whole signup process takes just 3 seconds.  Step 2: Identify your goals for your child’s future  The application provides a gamut of options for your child’s education. Evaluate the goal. Whether you wish to: Save for school fees Save for higher education in India or overseas 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 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. Why choose EduFund for SIP investments? Benefits of choosing to invest via SIP investments with EduFund for your child’s future: 1. SEBI-registered investment platform Edufund operates as a SEBI-(Security Exchange Board of India) registered platform. It is a watchdog of investments in India. It keeps your investments secured. The platform is also regulated by the SEC (Securities and Exchange Commission) in the US. 2. Personalised approach to investing Apart from highlighting the top SIP investment funds as per the latest statistics, it provides well-researched personalized investment suggestions. You could analyze the funds listed as per the risk appetite. The analysis segregates as per risk appetite: Skyscraper returns: Aggressive risk Stable Returns: Above the average risk The Middle Path: Average risk  Conservative Returns: Below the Average risks Safety First: Low Risk  Bharat Pack: High risk  3. Create a global portfolio  Apart from investing in Indian stock, you could expand your investments to the US market. Get access to the top US ETFs. It is passively managed funds with a low expense ratio. It implies you invest only a tiny portion for the long term. It offers better tax benefits than other taxable accounts.  4. Expert assistance  Edufund grants the flexibility to explore and invest independently. If you are new to the whole investment concept, seek expert guidance. Experts help determine the apt investment strategy and SIP plan per investment goal, income/revenue, monthly payment capability, risk appetite, and compounding goals.   You could leverage the expertise of the best counselors from India on a single platform. Decide your child’s educational goals- national or overseas education. You could get a good gamut in either of the situations. Get a detailed overview of every counselor and schedule consultations without wasting time googling out the specifics. Pick a time and day suitable to your lifestyle and book! You will get a confirmation mail. Do you still lack clarity on how to start a SIP investment in the EduFund App? Then download the App now and start saving for your child’s dream university! Consult an expert advisor to get the right plan TALK TO AN EXPERT

Student loans (commonly known as education loans in India) are a financial tool to help students pursue higher education. The biggest question to ask before availing of any loan is how much should you borrow in student loans. This is because taking on a loan is a huge responsibility; you need to pay the monthly installments on time and make sure that your debt remains a manageable amount that you can easily pay off.  What is the ideal amount you should borrow in education loans? Ideally, the loan amount should be 25% of the total loan amount you require for your education needs. For instance, if you want to study in Canada at the top universities then you may require a corpus of Rs. 50 to 60 lakhs to fund your overall education.   As a student, managing this kind of expense is tough and you may be tempted to borrow the entire amount so that you can later pay back the loan once you have a high-paying job. However, most education loans last 10 to 15 years, and shelling out EMIs every month can be tough. So here are some questions you must ask yourself before taking on a loan and deciding how much you should be borrowing in student loans:   What is the ROI of the program?  Does the university offer any placement assistance?  Will you be able to manage the interest hikes?  How much should you borrow vs. self-finance?  What is the ROI of the program?  Taking on a loan is a big responsibility. It means you must understand the return on investment (ROI) of your degree. It means you have to ask yourself some hard questions like is your selected course good enough to get you a job in the next 6 months? Will your starting salary cover your EMI comfortably? Are your loan and the interest charged on it a justifiable investment for your degree? These are some important questions you must be able to answer before deciding on a student loan and how much you should borrow in education loans.  Does the university offer any placement assistance?  Once you take on an education loan, you have to ensure that your degree can help you land the job of your dreams. The salary should be enough to take care of all your needs, including the EMIs that will start once your moratorium period for the education loan ends. Find out if the university you are considering offers placement assistance. What is the past record, where are your alumni members, and what was the average salary base for your previous batch?   These are some questions you need to answer and find before you take on the burden of a loan.   Will you be able to manage the interest hikes?  Inflation is a part of every economy and government attempts to keep it in check affect the interest rates charged by banks. There will be situations where interest rates are hiked up and your EMI increases. Make sure you are prepared to take on the added responsibility and that you are comfortable in paying the debt off in time and consistently.   How much should you borrow vs. self-finance?  Ideally, paying off your education with scholarships, savings, and investments your parents have made for your education should be the plan. But in case you do not have enough savings it is good to take an education loan to cover your education expenses. Try to borrow 25% of the total amount. If you want to borrow more then make sure you are doing your research on the course, university, and the ROI to help you later pay off the debt easily.  You can also apply for scholarships, look for part-time jobs, and create passive income to self-finance a portion of your degree even if you take a loan.   Education loans are a great means to finance your degree but just like any other loan, you have to pay it back on time and without any delays. Having all the information can help in the long run. It can also help you decide how much you should borrow in student loans, the type of loans you need to take, whether you should opt for a moratorium or not, and much more.   Always remember, that the bigger the loan, the bigger the time horizon for paying it back. So, try to follow all the steps before making this life-changing decision.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

The city-state of Singapore is an ideal destination to pursue higher education. The state-of-the-art standards of education, a solid focus on the research base, and an exceptionally high standard of living attract students from around the world. There are hundreds of scholarships in Singapore to fund your child’s college and ensure quality education. Why consider Singapore? Your choice to send your child to study in Singapore will undoubtedly pay off in terms of professional growth. After graduating from one of Singapore's best institutions, it is much easier to get employment because more than 7,000 businesses are based here. Choosing to study abroad in Singapore can lead to a promising future for more than one reason. The strict laws create a safe environment. Singapore Universities are best known for their excellent academic system. Singapore offers multiculturalism and exposes you to various lifestyles. International students from across the world come to Singapore to study, hence giving you opportunities for fruitful networking. Universities offer scholarships in Singapore to international students to fund their education and encourage meritorious students to take up courses in the country. What is the cost of studying in Singapore? The cost of studying abroad in Singapore is unquestionably high. According to the program and university choices, as well as the lifestyle, the average study cost in Singapore is on the higher side, averaging between 40 lakhs and 1 crore for the duration of the degree and the same amount for living expenses on top of it. Finding alternative funding options, such as loans, scholarships, or financial aid, is a wise choice. Scholarships are an excellent method to lower the cost of higher education, and Singapore offers several different kinds of scholarships. Additional read: Scholarships in Canada to fund child's college Top scholarships in Singapore A scholarship is a great method to reduce the costs in Singapore. This will greatly assist you in lowering your overall cost. Multiple public, nonprofit, and private organizations fund scholarships for students to attend school in Singapore. Top awards include scholarships in Singapore for your child’s higher education are: 1. SINGA - Singapore International Graduate Award International students wanting to pursue a Ph.D. and research in Biomedical Sciences, Physical Science, Engineering & Technology, and Computing & Information Sciences will be covered for 4 years of their Ph.D. The degree will be awarded by either the National University of Singapore (NUS), the Nanyang Technological University (NTU), the Singapore Management University (SMU), or the Singapore University of Technology and Design (SUTD). Benefits Monthly stipend of ₹1.1 - 1.5 lakhs. One-time grant for airfare, maximum ₹84,951. One-time allowance for settling in up to ₹62,297. 2. Asian Development Bank ADB - Japan Scholarship Program International Students from countries borrowing from the ADB who want to pursue their masters in management, economics, technology and science, and other development-related fields are given these scholarships. These students are expected to contribute to their home country’s growth in terms of its economy and society. The National University of Singapore is associated with these scholarships and provides the same for 1-2 years of master's programs, Benefits Full tuition fees Allowance for monthly expenses including housing. Allowance for study materials including books. Medical insurance Travel expenses. Furthermore, an exceptional allowance is provided to scholars for research and thesis preparation. 3. Commonwealth Scholarship for Integrated Science International students belonging to the CommonWealth countries pursuing Ph.D. degrees in integrative sciences & engineering at the National University of Singapore (NUS) are eligible to apply for this scholarship. Benefits Monthly stipend up to 4 years of the Ph.D. duration. Full tuition fees Travel expenses and other allowances like study materials, computers, etc. 4. Lee Kong Chian Graduate Scholarships International students from any nation who desire to pursue a Ph.D. at the NUS are eligible to apply for this scholarship, given that they are ready to submit an essay and a record of extracurricular activities and community services. Benefits Monthly stipend up to ₹2 lakhs. Full tuition fees as well as other miscellaneous student fees. One-time laptop allowance of a maximum of ₹85,000. Allowance for study materials including books of up to ₹28,317. Travel allowance of 2 return tickets up to ₹2 lakhs 5. Singapore Millennium Foundation Scholarships International students who are interested in pursuing Engineering or conducting research at Masters and Doctoral levels are eligible to apply for this scholarship. Benefits Monthly stipend of ₹1.1, 1.7, and 2.8 lakhs for M.Sc., PhD., & postdoctoral training, respectively. Travel allowance up to ₹1.7 lakhs 6. SIA Youth Scholarship International students from India, China, and ASEAN countries, according to their academic standings, are eligible to apply for this scholarship. The scholarship is given for a year at once, and can be renewed every year and only to students in the age group of 17 - 19 years. Benefits Full tuition fees and exam fees. Living expenses. Medical benefits. Accident insurance Conclusion There are various scholarships available to international students for studying in Singapore but most of them require excellent academic standing as well as co-curricula or community service. Your child needs to have a stunning portfolio and give good interviews to be able to get these scholarships in Singapore. Start preparing your child for a bright future! Consult an expert advisor to get the right plan TALK TO AN EXPERT

Saving money in a middle-class family is stressful. Lack of finance knowledge, poor budgeting, relying on a single-income family member, and increasing prices of daily goods and services are some of the biggest barriers to saving money in a middle-class family.  Another core barrier is saving in FDs over investing. Most Indian middle-class families prefer to keep their money safe in fixed deposits or savings accounts which do not offer attractive returns that could beat inflation.  If you too are struggling with wealth creation then here is how to save money in a middle-class family to secure your future. 1. Make term insurance your best friend Buying term insurance is one of the easiest ways to save money in a middle-class family. The cost of buying term life insurance is pretty low, especially if you are young and healthy. Most insurance companies offer term insurance worth lakhs at an affordable yearly premium of Rs. 12,000-13,000.  Term insurance can give your family a good cover amount in case of uncertainty of death. Always think about protecting your family through the right term life insurance.  2. Make saving a monthly chore When it comes to savings, make it a habit. Whether it's savings small sums of money in digital gold or a PPF account monthly, savings should be treated as a habit and a monthly chore!  Start this practice with “pay yourself first” by setting aside money from every paycheck. The next thing you can do is, save for multiple goals like an emergency savings fund, vacation fund, down payments, education corpus for your child, etc. Stick to this plan to the best of your ability and find the best home for your savings. Additional read: What is the education gap? 3. Wealth creation via monthly SIP  The best way to save money in a middle-class family and work towards wealth creation is to start a SIP! You can invest very small sums of money every month regularly for a long period of time and create a healthy corpus by the end of the period.  4. Place a limit on your credit card use  Avoid using credit cards frequently! Most financial advisors urge clients to limit their credit card use to 30% of the total available credit. For instance, if you have a credit limit of 5,00,000 then the credit you can use is 1,50,000!  Credit card companies offer attractive schemes to trap you into spending more so be careful. Another way to save money is to always pay your credit card in full amount rather than the minimum pay offered by the card companies.  5. Set a shopping budget for yourself  Make a habit of thinking before buying a particular thing. There’s a difference between want and need. If you cannot differentiate between the two, you cannot save money in a middle-class family. Before buying, you should analyze whether you need it or you want it. Give yourself a week to decide. Spending that much time will make you think twice and buy only what you need.  If you enjoy shopping then give yourself a shopping budget and try to not overspend on it! 6. Compare costs before spending In our rush, we sometimes forget to compare product features and prices in search of better options. Given the posh showroom atmosphere and the impressive conversations of the highly paid salespeople at the counter, we refrain from bargaining and looking for other means of comparison.  Always compare prices on websites and other stores and pay the best price while spending your hard-earned cash. Every penny saved earns an extra penny at the end of the day. 7. Create a passive or secondary income Besides your regular job, you work towards creating different streams of income. Look for opportunities, and try to create a passive income by renting your assets like an apartment or room. You can take up secondary income jobs if you have the time and your primary job allows it!  8. Teach your children to save early on Kids have no idea about how to save and how to earn money. Parents have to teach them and encourage the habit of saving from an early age. Make your children understand the value of money and how much effort it takes to earn it.  Give them monthly pocket money and teach them how to make the most of their money. Teach them to save a portion of it regularly. This habit will help them in the long run.  9. Be open about your finances with your family As they say, communication is the key. Parents should discuss finances with their children. This wouldn’t only make them aware but is good for their general knowledge. Maybe with that knowledge they can also plan their future. Don't leave them in the dark about financial assets built for their bright future. 10. Create a will to protect your family’s future India has Rs 82,000 crore in unclaimed assets. This money is spread across pensions, savings, mutual funds, stocks, government schemes, etc. All due to a lack of planning and foresight on the owner’s front. So be careful, make sure you have a legal will in case of any emergencies. Make sure your children and family members are aware of your savings, investments, and assets that can help them in the long run.  It might sound difficult to save money in a middle-class family, but following the above steps, proper planning, and execution can help you to achieve your financial goals. Saving in small amounts is easy; starting saving early and channelizing your savings could become a key to your successful financial freedom. Consult an expert advisor to get the right plan TALK TO AN EXPERT

It's crucial to raise children and make plans for their future. However, it may be difficult to balance a family's requirements and aspirations with considerations like savings, pensions, and budget. In this blog, we will address the financial mistakes you are making as a parent. 1. Not tracking finances It is challenging to set aside money at the end of each month due to the escalating costs. However, surviving paycheck to paycheck is a bad idea and might lead to debt. Drawing up a budget and keeping track of income and spending at the end of each month is the best course of action for young families. Apps may help you analyze and restructure your family budget so you can cut out wasteful spending.  Your children should be taught that spending what is left over after saving is more essential than saving what is left over after spending. 2. Not building a safety net For new parents, creating an emergency fund must be a top financial priority. You must plan ahead to create a financial safety net in case of job loss, a medical emergency, house repairs, or a family disaster. Depending on the number of income earners, save enough money to meet your costs for three to six months.  Investing in a savings and investments plan, which provides several opportunities for financial growth, is an excellent method to protect your family. You may speak with our specialists at  EduFund if you're unsure about where or how to invest. Install the EduFund app on your device to book a free consultation call with the experts. 3. Not saving for your child's education The worst parenting blunder would be being unable to support your child's education. No matter how young your child is, it is always preferable to begin saving for their education as soon as possible.  Saving for their future will snowball the longer you put it off. Additionally, the high levels of non-performing assets serve as the primary explanation for the collapse (NPAs). Therefore, it is suggested that you begin saving for your child's higher education as soon as your child is born in order to avoid any last-minute trouble. 4. Not teaching your children about money As vital as educating your kids to read and write is to teach them financial literacy. Parents who don't invest time in their kids' financial education might suffer serious repercussions on the road. By regularly talking to your kids about money, you may prevent them from making this money error. You can begin by demonstrating how to establish a budget for them and letting them make a monthly budget on their own. This will assist them in learning how to save money and achieve their financial objectives. 5. Not having a retirement plan All parents frequently engage in this behavior, and practically all parents in India are no exception. All of your material decisions, especially those involving money, revolve around your children as soon as they enter your life.  However, it would be beneficial if you kept in mind to save money for the future. Retirement savings issues may arise if you don't start saving now. It is not a good idea to rely on your children to support you as you age since it may put an additional financial strain on them.  Therefore, it is advised to begin setting aside money in a retirement or pension plan at a young age that will enable you to maintain your financial independence after retirement. In addition to this, contributing money to a retirement plan enables you to accumulate a corpus and protect your finances from unanticipated financial hazards. 6. Using your kids as an excuse for lifestyle inflation Children should not be a justification for living a lavish lifestyle. Some parents may use having children as a justification to rent or purchase a home that they are unable to afford comfortably. Even if there are more affordable options available, some parents may still decide to enroll their kids in pricey private schools in the belief that they would receive a better education.  There is absolutely nothing wrong with wanting to provide your kids with the greatest education and upbringing possible. The issue arises when you spend more than you can afford to, leaving you with little left over to save and invest for the future or retirement. Many parents make common financial blunders, maybe out of a desire to give their children the best possible living. It's quite simple to commit all or some of the financial blunders listed above when being a parent, trying to balance paying the bills, providing for your family, saving money, and investing. The good news is that you can fix these mistakes and go forward in life with better and more stable financial foundations.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

For a new investor, the question that pops up the most is what is the minimum amount to invest in mutual funds? There are numerous types of mutual funds available in the market, all with varying minimum investments. Many of these mutual funds have a minimum investment requirement to be a participant, to ensure enough capital and cover the fund's basic operating costs. Some mutual funds have an option of no minimum at all which means investors can contribute the smallest of amounts to start an investment. These options are ideal for people trying to invest in funds for the first time or for the ones who are not sure about taking this step. What is a minimum investment? The smallest amount or number of shares an investor can buy when investing in a particular asset, fund, or opportunity is known as the minimum investment. Mutual funds frequently set a minimum requirement to guarantee they have adequate assets under management (AUM) to meet their investment objectives and pay overhead. This indicates that an investor must buy or invest at least the minimum quantity necessary; they cannot buy or invest any amount they like. While some funds favor offering low minimum investment solutions to serve smaller clients, other businesses favor offering greater minimum investments that are targeted at high net worth individuals. This quantity might be challenging for new investors to reach. Each fund establishes these minimums to prevent modest, short-term trades from having an impact on cash flows and daily management of the fund. The investment objective and fund style both influence the minimum for each fund. All investors can, however, invest in mutual funds thanks to some funds with lower minimums. Additional read: Investment ideas for child education What is the minimum amount that can be invested in mutual funds? The required minimum investments differ for every fund and its goals. But, there are a few basic rules and regulations followed by all these funds. Here is an overview of the required minimum investment. The minimum investment for new fund offerings (NFO) is typically fixed by the AMC at ₹5,000 per application. This is done more so to obtain affordable application units. Most of the time, this is the standard. For debt funds, the minimum investment is typically higher. The standard minimum investment for lump-sum purchases is ₹5,000. The fund houses, however, only demand this for the initial investment. Additionally, subsequent investments can start at just ₹1,000. The vast majority of funds consistently operate in this manner. The minimum investment for SIP is ₹500 for each SIP deduction. You can request a monthly debit of as little as ₹500 if you participate in a monthly SIP, for instance. Although some mutual funds may allow SIPs to start as low as ₹100, the norm is to need a minimum commitment of ₹500. Do mutual funds have a maximum investment amount? There is typically no upper limit established. However, keep in mind that tax deductions under Section 80C are only allowed up to an investment of ₹1,50,000 per year while investing in ELSS (tax saving) funds. Your investment may still exceed that sum, though Will the minimal investment decrease in the future? It certainly might, and the pattern is clear. For instance, some funds provide weekly and daily SIPs with significantly lower investment minimums. By establishing micro-SIPs, which have a minimum SIP sum of ₹100, the mutual fund industry has similarly targeted the rural sector. This makes it possible for these dispersed individuals to invest in regulated companies and safeguard their money. What is the ideal amount of investment in mutual funds? The appropriate amount that an individual should put in mutual funds is determined after taking into account several different variables. To decide how much to invest in mutual funds, an individual should ideally thoroughly consider his or her investment goals, monthly salary, expenses, and investment horizon. For instance, if a potential investor wants to invest in mutual funds for about 20 years to build a retirement fund of Rs. 25 lakhs, he or she should begin a SIP at the rate of Rs. 2,500 each month. After 20 years, the investor will be able to build a total corpus of Rs. 24.73 lakhs if the fund can produce an average annual return of 12%. In the past, it has been seen that investors who can commit to mutual funds for a long time have the best returns. To enable the investor to continue to invest for a long time without running out of liquid funds, the optimum SIP amount should be chosen. However, it is always a good idea to talk to your financial advisor and begin with a logical approach before choosing an NFO, lump-sum, or SIP. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Collateral is an item that a lender will accept in exchange for a loan. Collateral may take the shape of real estate or other assets, depending on the loan's intended use. The collateral acts as a form of insurance for the lender.  In other words, if the borrower misses a payment on the loan, the lender may sell the collateral to collect part or all of its losses. In this blog, we will, in detail, discuss what is collateral and how it works. How does collateral work? An asset acquires collateral security when a lender registers a charge over it, either by utilizing a fixed or a floating charge. These fees are also referred to as liens. A collateral mortgage over a particular piece of property or the registration of a charge over a distinctive identifier, such as the serial number of a certain car, are examples of fixed charges.  The borrower cannot sell a physical asset without the lender first waiving its security interest once a security charge has been registered over it. Business borrowers sometimes have floating charges, which are frequently recorded using something called a general security agreement (GSA). A GSA protects all of a borrower's assets that aren't specifically mentioned in a security registration (like our property or vehicle examples). GSAs let lenders utilize inventories and other hard-to-identify assets as collateral to help limit credit exposure. What is a collateral education loan? Property that you give to the lending bank as collateral for the loan you are taking is typically referred to as collateral. The value of the collateral must be higher than the student loan. This serves to reassure the bank if the borrower is unable to pay back the loan. What is a non-collateral education loan? Non-collateral loans are those that the lender makes when there is no collateral involved. The bank takes into account the co-borrower's financial history as well as the student's academic record when making this type of loan.  Now, a lot of parents argue over which of these loan formats is preferable. In actuality, both kinds of loans have a use. As a co-borrower, you must weigh the advantages of both loan kinds and select the one that best suits your needs. Different types of collaterals When making an application for a loan, borrowers can essentially guarantee three different forms of collateral. These are what they are: 1. Immovable assets These might be property assets like a piece of land, a house, a condo, etc. It is important to keep in mind that lenders will not take agricultural land or land that is subject to a Gram Panchayat as security. Open space that is not used for agriculture and has distinct borders, however, is acceptable as collateral for secured student loans. 2. Intangible assets These are liquid securities, such as government bonds, ULIPs, fixed deposits, and mutual funds. FD holders will continue to receive any interest earned on these intangible assets, but the bank will maintain liquid securities like FDs. For an education loan, borrowers can establish a new FD or even pledge a previous one. 3. Third-party secured education loan Uncommon forms of collateral that lenders will accept include the moveable property of a third party (relative or friend). Types of properties that are not accepted in collateral education loan Following are the types of properties that are not accepted in secured education loans: Gram Panchayat assets. Due to the SARFAESI Act of 2002, no lender accepts agricultural land. The property ought to go under a municipality or municipal corporation. Land in the cantonment. A permanent military station and temporary housing for troops in India are both located in the cantonment area. Documents required for collateral education loan? The following typical papers are requested by most lenders: Property title deed.  Registered sale agreement.  Original registration receipt for the above agreement. Letter of Allocation From Municipal Corporation/Authorized Government. Previous chain of sale deed establishing title.  Most recent property tax bills or most electricity bills have the same address.  If the property being pledged is a developed one, an approved plan or map. The latest property tax receipt. Occupancy proof. What is the maximum loan amount for a secured student education loan? The best range for secured education loans for students is between INR 10 lakhs and INR 1.5 crore. Nevertheless, it should be kept in mind that several variables, including the value of the pledged collateral, affect the precise loan amount.  Bank of Baroda authorizes loans up to 100% of the value of the collateral, whereas nationalized banks like SBI authorize loans up to 70% of the value of the collateral. Education loans up to 65-70% of the collateral are approved by private banks like Axis Bank, although at a higher interest rate. Therefore, it's important to understand how collateral functions before applying for a secured loan. Because collateral serves as a form of security for the lender, who has the right to repossess the asset if the borrower defaults on the loan. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Every year thousands of Indian parents send their children abroad to study in hope of a better future. Planning this mega event is tedious and expensive, any obstacle in this plan can potentially delay your child’s future plans. Scams are one of the biggest obstacles. Let’s find out what are some major foreign education scams and how you can avoid foreign education scams to save money and your child’s foreign education plans. 1. Education counselor scam  Education counselor scams are extremely common in India as the industry has exploded in recent years. More and more parents want to see their child settled abroad and in a reputable university and many take advantage of this desire and hope. Education counselor scammers usually encourage students to apply to universities selected by them, they encourage them to pay deposits and make payments on the behalf of the student. To avoid these scammers, try to be involved in the process and beware of the universities you are applying to.  2. Fake documents   In India, thousands of student visa applications are rejected due to the submission of false documents, fake bank statements, fake gap year certificates, and test scores to dupe the authorities. In fact, the refusal rate for Canadian student visas rose to a whopping 41% this year due to forged documents. Australia rejected over 600 cases due to fake documents.   It's important to know that visa offices screen each document to check students’ eligibility and document authentication. Make sure your counselor is submitting original documents so that your admission is not delayed and your money is saved. 3. Fake Scholarships  Fake scholarships are another common foreign education scams that you must avoid. There are thousands of scholarships available for international students offering monetary relief but not all of them are genuine. To avoid fake scholarships, you must remember never to give money to the authorities. Try to apply only through the official website and make sure to cross-check the history and legitimacy of the organization. 4. University Scam  There are thousands of blacklisted universities in India, the USA, the UK, Canada, and many more countries. The degrees offered by these universities are invalid and these are major institutions that have historically cost parents and children monetary loss and extreme mental stress. Checking the legitimacy of the university by interacting with teachers and current students of the university is an excellent way to know their credibility. For example, Canada university has a list of universities that are recognized and permitted by the government to host international students. These are called Designated Learning Institutions.    5. Accommodation Scam  Accommodation scams are another common foreign education scam that preys on international students. Many international students pay deposits for apartments that are either not available, fake apartments, or sometimes broken. Parents and students lose their hard-earned money to these scams so beware. Many universities have listed apartments, and offer dorm rooms and accommodations to international students that parents can go for. These are trusted partners that help international students settle down.   Many universities offer one year of accommodation to international students on their campus to save them from the hassle of searching for the right apartment so make sure to apply for it on time!  Additional read: Education inflation rate in India? How to avoid foreign education scams?  If your child is applying abroad then it’s important to be involved in the process. Always apply through trusted portals, talk to administrative officials involved in the process and verify all your documents. For instance, if your child is applying to the UK, using the UCAS portal for bachelor's courses is a verified route similarly if you are applying to Canada, check your university’s DLI number given on the Canadian visa website.   Remember universities do not call individual candidates, they update the admission portal created by the student and provide all necessary information on the website. If you are unsure of the process and require guidance then approach a trusted education counselor with a reliable history and a trusted online presence.   Take an active role in your child’s admission process and help them with the application, SOP, LORs, and financial documents they may require. This can help you save your child from making silly mistakes like sharing sensitive bank details or falling for these foreign education scams.   Never transfer money to another account without verifying the source. If you do accidentally transfer, alert your bank immediately (within 24 hours) so that they can retrieve your funds in time.    These are some ways to avoid foreign education scams that can be unnecessary mental and financial stress on you and your child. With foreign education becoming popular in India, knowing these scams and making the right decisions can be very helpful for your family!  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Individuals should be aware of “short-term goals” as they are valuable in achieving long-term ambitions and stability.  Short-term goals are referred to as productive and doable plans as their tenure is very short, and it is easy to achieve them. They act as a viable bridge between where an individual is and where they want to be. Definition of short-term goals? Short-term goals are plans or tasks that do not exceed more than one year. These are meant for the immediate future and help to focus on the plans that can accomplish eventual targets effectively.  Short-term goals are realistic, and the chance of goal achievement is also high. Importance of short-term goals 1. Create effective strategies The short-term goals help to create effective and SMART strategies that are specific, measurable, achievable, realistic, and time-bound. Long-term plans are often vague with lots of loopholes, whereas short-term goals have to be crisp and clear because there is very little room for error.  2. Maintain focus It is easy to maintain focus as the plan is realistic and doable. There is little scope for a detour and backtracking. Hence the planners have to be always vigilant and keep their focus on the target.  3. Break up bigger goals Keep in mind that short-term goals can facilitate the process of achieving long-term goals. Be clear and deliberate in your efforts and break the bigger long-term goals into several small-term goals. This makes the path much easier and the target achievable.  4. Quick Feedback The probability of getting clear and quick feedback on short-term goals is higher than the mid-term or long-term goals. Quick feedback is a blessing and acts as a motivational tool. It helps to adjust the strategies according to the available response and align the tasks to the bigger picture.  5. Avoid procrastination Human beings are prone to procrastination, but setting short-term goals helps to avoid it easily. When the goals are precise and small, the goal-achieving path becomes bearable. It also minimizes the chance of postponement and delay. Create Short Term Goals How can you achieve short-term goals? 1. Focus on one goal  Short-term goals require complete focus. Stay dedicated to your efforts and avoid multitasking. Complete one task and move to the next for better efficiency and productivity. 2. Find a buddy Having a buddy or a cheering partner can be of immense help in motivating you to do better. 3. Eliminate distractions Distractions can keep you away from your goals. Eliminate distractions and create a peaceful ambiance to help achieve short-term goals. 4. Find your motivation Remember why you created these short-term goals and what you are trying to accomplish with them. This will motivate you to focus on your goals and stay on track. 5. Stick to your plan Stick to your short-term goals and plans to achieve them at all costs. As these are for a short duration, it is easy to maintain your focus and achieve them anyhow. Invest in US Market Examples of short-term goals  1. Business goals Minimizing overhead costs without an impact on business operations by reducing debts, becoming paperless, and using advanced technology. Improving team and business productivity. It will have a direct impact on financial statements. Adopting best practices for eliminating regular distractions at the workplace. Leveraging social media channels to engage the target audience. Improving customer service. Learning about market trends before the launch of a new product. Creating incentive programs to motivate employees.  2. Career goals Organizing a workstation to increase efficiency. Learning new skills.  Getting certifications to boost your career path. Arriving at the office early to accomplish the given tasks on time. Attending networking events. 3. Study goals Get organized. Spending time in the library. Completing the assigned projects on time. 4. Personal goals An organized daily routine that aligns your work schedule with the tasks ahead. Keeping a daily journal for developing self-awareness. Practicing a daily ritual to develop a sense of togetherness in the family. 5. Financial goals Getting control over your finances.  Eliminating financial debts, especially credit card debt. Minimizing the monthly expenses. Saving for your child’s school fees, laptop, or extra-curricular activity Creating multiple income and savings streams. Take the help of the Edufund app to create financial goals and start investing. It offers access to 4000+ mutual funds, ETFs, US stocks, etc., which can help investors in achieving short-term goals.  Conclusion By now, you must have understood the importance of short-term goals in life. These are day-to-day actions that are more satisfying and fulfilling. Short-term goals are practical goals that are used as stepping stones to accomplish the bigger picture or the long-term goals. TALK TO AN EXPERT

FDs and savings accounts are the two most common investment options for common masses. These are bank accounts that help individuals to deposit their surplus funds.  Both FDs and savings accounts are financial instruments that offer safe and stable returns. To understand which is the better option among FD vs savings accounts you have to first know about them individually. What is FD? FDs are financial tools offered by banks, NBFCs, and post offices where a lump sum amount is deposited as a one-time investment for a fixed tenure. The banks are offering an interest rate of 5% to 7.5% based on the age of the depositor and the tenure of the deposit account.  Depositors can opt for a normal FD which is taxable or a tax-saving fixed deposit which saves taxes up to 1.5 lakhs under Section 80C of the Income Tax Act 1961.  What is a savings account? Savings accounts are deposit accounts in a bank where the account holder deposits his income or surplus funds. Different banks offer varied interest rates ranging from 2% to 4% on the savings account.  The savings account is considered a safe and risk-free instrument with assured interest. Any interest earned up to INR 10,000 on the savings account is tax-free under Section 80TTA of the Income Tax Act 1961. FD vs savings account based on various parameters 1. Meaning  A fixed deposit account is a one-time investment where the account holder deposits a fixed amount for a fixed tenure. The account holder can withdraw the money when the term is complete whereas the savings account allows the account holder to deposit and withdraw money at any time. 2. Rate of interest In terms of rate of interest, FDs are much better than savings account because the interest rates offered on FDs ranges between 5% to 7.5% or sometimes more, whereas the interest on savings account varies between 2% to 4%.  3. Considerations for senior citizens FDs are better than savings account for senior citizens as the interest on fixed deposit account is 0.50% - 1% more than common citizens in banks. This is not the case in a savings account where the interest rates remain the same for every citizen.  4. Tenure The tenure of a bank FD ranges from 7 days to 10 years where individuals can invest in multiple FD accounts with different tenures over the years. The savings account does not have a fixed tenure and remains open for a lifetime Additional read: Debt mutual fund vs FD 5. Interest payout Account holders have the option of opening cumulative FDs where the total interest earnings are offered at the end of the maturity period and non-cumulative FDs where the interest amount is offered as monthly, half-yearly, quarterly, or yearly payouts. There is no such option on the savings account.  6. Saving instrument The money in the FDs is locked for a specific tenure and the account holder cannot withdraw or use it until the date of maturity. The FDs act as safe investment options that helps the investor to save more as the compound interest is added to the principal amount to create more wealth over time.  The savings account on, the other hand, allows withdrawal of funds anytime and anywhere which can lead to excessive spending and thus is not considered an apt savings instrument.  7. Partial or premature withdrawal Bank FDs provide the investors with an option of withdrawing the invested amount partially or prematurely before the maturity date after paying a penalty between 1% to 2%. Account holders can withdraw from their savings account anywhere and anytime without any penalty. They are just required to maintain a minimum balance in their account. 8. Financial goals FDs are used for investing and reinvesting to achieve long-term financial goals as it offers better interest rates. A savings account does not have any such option.  9. Loan and overdraft Bank FDs act as collateral and investors can apply for a loan or overdraft against the FDs to meet financial emergencies. There is no need to withdraw from the FD prematurely and suffer financial loss.  The loan and overdraft both have a lower rate of interest and can be repaid in installments or as a lump sum amount. There is no such option with a savings account, hence in the FDs vs savings account debate, FDs are better than savings accounts based on this parameter.   10. Tax rebate Investors who invest in regular FDs are not eligible for any tax benefits but investment in 5-year or more tax-saving FDs is eligible for tax deductions up to 1.5 lakhs. Interest earned on the savings account is tax-free till INR 10,000 and beyond the limit is taxable.  11. Building a credit history Individuals can take out a loan for short-term against the FD and repay it within time to build a credit history. Savings account holders do not have this option.  Conclusion In the debate, ‘FD vs savings account: which is better?’ let us say that both accounts have their pros and cons. A savings account is a necessity to meet daily essentials, whereas an FD is a safe investing instrument for conservative investors. It ultimately depends upon the individual and his purpose in opening that account. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Masters in Finance Vs MBA in finance - Which one of these is the most profitable? Let’s find out. From international career goals, “Masters in Finance is expected to surge by 10% by 2026”- as per the US Bureau of Labor report. According to it, the country will soon encounter 773,800 jobs in the same sector. MBA in Finance degrees are usually apt for students aiming for managerial roles. It involves several interests like management, marketing, accounting, and leadership. At the same time, a master's in Finance focuses on gaining expertise in a single aspect in detail. The blog will help figure out the best one from the growth perspective Masters in Finance vs MBA in Finance – Overview Masters in Finance  The course focuses on finance and related aspects. It would be ideal for students seeking a detailed understanding of financial theory, mathematics, quantitative finance, markets, investments, and financial reporting. It teaches students how to draft and analyze financial reports. It is intended for students eying full-time expertise opportunities. MBA in Finance MBA prepares students to pursue entrepreneurship by covering the aspects mentioned above. A student can apply either for a full-time or part-time MA degree. To get better at it, individuals require good experience. In contrast, MA does not require detailed partitioning. The difference between MBA in Finance and a master’s is that the first ensures a broader view of business management while the latter calls for functional expertise. Course duration and costs Masters in Finance One can earn a Masters's degree within a year. To talk about costs, Masters’s in Finance stands economical to MBA in Finance degree. The total cost of an MA in Finance is around 8-16 lakh/year.  MBA in Finance An MBA degree is generally of 2 years. The total costs of the program could lie at an average of 16-24 lakh/year. If you are thinking about pursuing MBA, factor in the course costs as per duration; save early. You can pursue MBA along with a job, while MA demands clear dedication. One does not get much exposure to practical assessments and learning here. Masters in finance vs MBA in Finance: Skills required  Masters in finance  To excel in the industry, one must nail a few skills. These include- Analytical Thinking leadership and management Organizational Time Management Technology  Numeracy skills Out of these, leadership management and Technology are the most demanding skills in recent times. To excel, a student must share sound skills in tracking financial trends. MBA in Finance MBA is a diverse field and calls for overall leadership development skills. Apart from this, you would gain the following skills Business intelligence Financial Modelling Cash flow management Risk analysis Data management Financial Reporting Analytical thinking One of the most demanding skills in an MBA in Finance is Analytical Thinking. The course is apt for you if you are good with numbers and possess an inquisitive mindset with analytical abilities. Masters in Finance vs MBA in Finance - ROI & Job opportunities Masters in Finance Master of Finance Students have diverse options to choose from after course completion. One can pursue any of the below niches: Financial Manager, CFA (Charted Financial Analyst), Financial Advisor, Management Consultant, etc The average salary of a Finance Analyst in 2022 is approx INR 38 LPA. One can kickstart their career with some prominent firms like Deloitte, EY, Boston Consultant Group, Citibank, etc.  It is worth eying international career or job opportunities, particularly in Europe, Canada, and the US. Additional read: Education loan vs self-finance MBA in Finance Top 5 job titles: Wealth and Portfolio Management  Corporate Financing Investment banking  Financial Consulting Merchant Banking  Out of these prominent managerial roles, Investment banking shares the highest ROI in MBA in Finance. How to choose the best career option?  While making a choice, factor in the aspects mentioned above along with interest, knowledge, and passion. Begin by fine-tuning your short and long-term career goals. If gaining expertise in management and strategy piques your interest, MBA is an apt option.  As opposed to this, if you aim at a specific specialization in a subject, MA suits the concept better. In case of confusion, it is better to tap an expert. Edufund helps individuals figure out the right career narrowing down the choices. Furthermore, the experts align those choices with future career opportunities. It helps a student choose an apt direction in their career and succeed. Consult an expert advisor to get the right plan TALK TO AN EXPERT