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Investing 10 lakhs for one year can be a challenging task that requires careful consideration of various factors, such as risk appetite, investment goals, and expected returns. It's crucial to make informed investment decisions that align with your financial objectives and tolerance for risk. In this comprehensive article, we will delve deep into the world of investment options available in India and explore the best ways to invest 10 lakhs for a one-year period. By understanding the pros and cons of each option, you can make well-informed decisions that optimize your investment potential while mitigating risks. https://www.youtube.com/watch?v=l8Hyb77tkM8 INR 10 Lakhs Investment Plan | 1-Year Guide 1. Fixed Deposits (FDs) Fixed deposits are a reliable and widely popular investment option due to their safety and stability. With FDs, you can deposit a lump sum amount for a fixed tenure and earn a predetermined interest rate. The interest rates offered by banks typically range from 4% to 6%, providing a predictable return on your investment. FDs are an ideal choice for conservative investors who prioritize capital preservation and a guaranteed return on their investment. Furthermore, they offer the convenience of easy liquidity, allowing you to access your funds when needed. How to Invest INR 500 for Child Education every month? Read More 2. Recurring Deposits (RDs) Similar to fixed deposits, recurring deposits allow you to invest a fixed amount every month for a predetermined period. RDs offer similar interest rates as FDs, making them suitable for individuals who want to build a habit of regular savings. This investment option is particularly appealing to those with a steady income who prefer a disciplined approach to investment. By contributing a fixed amount regularly, you can accumulate a sizeable corpus over time while enjoying the benefits of compounded returns. 3. Public Provident Fund (PPF) The Public Provident Fund (PPF) is a long-term investment option that not only offers attractive interest rates but also provides tax benefits under Section 80C of the Income Tax Act. Currently offering an interest rate of 7.1%, the PPF comes with a lock-in period of 15 years. It is an excellent choice for investors seeking a safe and secure investment avenue that can also help in building a retirement corpus. The PPF provides the advantages of compounding and tax-free returns, making it an appealing option for long-term wealth creation. https://www.youtube.com/watch?v=tdwqQH0xkFw 4. Equity-Linked Savings Scheme (ELSS) The Equity-Linked Savings Scheme (ELSS) is a tax-saving mutual fund that primarily invests in equities. ELSS offers investors the dual benefit of potential capital appreciation and tax deductions under Section 80C. However, it is important to note that ELSS comes with a lock-in period of three years, making it suitable for individuals with a higher risk appetite and a long-term investment horizon. ELSS investments expose you to the volatility of equity markets, but historically, they have delivered attractive returns over the long run. Careful selection of ELSS funds and a systematic investment approach can help you navigate market fluctuations effectively. 5. Mutual Funds Mutual funds have gained significant popularity in recent years due to their ability to provide diversification and professional management. Mutual fund investments help you gain exposure to a portfolio of stocks, other securities, and bonds, which decrease the risk associated with investing in individual assets. Mutual funds offer various categories, such as large-cap, mid-cap, small-cap, debt, and hybrid funds, catering to different risk profiles and investment objectives. Mutual fund investments allow you to benefit from the expertise of professional fund managers and leverage their in-depth market research. 6. Gold Gold has long been considered a traditional safe-haven investment option, providing a hedge against inflation and economic uncertainties. Investors can choose to invest in gold exchange-traded funds (ETFs), physical gold,  or sovereign gold bonds. The returns on gold are influenced by international gold prices, making it subject to price fluctuations. Gold serves as a diversification tool in an investment portfolio and is suitable for those seeking stability and protection against market volatility. Additionally, gold investments offer the flexibility to convert your holdings into cash easily when required. 7. Real Estate Real estate investments offer the potential for long-term returns and act as tangible assets. Investing in residential or commercial properties can provide rental income and capital appreciation over time. However, real estate investments require significant capital and can be illiquid. It is essential to carefully evaluate factors such as location, market conditions, and legal compliance before venturing into real estate. Real estate can be a viable option for investors seeking a long-term investment avenue and are willing to take on the responsibilities associated with property ownership. Talk To An Expert

Inflation affects the cost of everything, from basic goods like edible oil, crude oil, and vegetables to big events like education, foreign trips, or property rates.    This year, inflation reached its all-time high at 7% and has maintained that record over the past 3 months. This means your savings need to beat the rising inflation rate before inflation beats your savings.   To protect your savings from inflation, you need to consider multiple investment instruments. Relying on fixed deposits, land or gold alone is not enough. Beating inflation requires a financial plan that distributes your money wisely across different saving and investing options. It allows your money to work in different areas – like mutual funds, bonds, PPF, Digital Gold, ETFs, and much more.   How can the average Indian investor beat inflation?  By gaining financial knowledge and opening up to investment, risk, and newer opportunities, the average Indian can beat inflation. If you are a young adult in your 20s, then saving in FDs or stashing your money in a savings account is not enough. You need to start exploring different alternatives that can benefit from the power of compounding and help you create a corpus for future needs.   Savings accounts in most banks offer a 2% annual rate while 5-6% interest rates on fixed deposits. These interest rates fail to compete with the growing inflation rate of 7%. Thus, by saving on these instruments, you are likely to reduce your purchasing power and lose money rather than gain from them!  Ways to protect your savings from inflation   1. Manage your expenses  Budgeting is the only way to ensure you don’t overspend or live paycheck to paycheck. Your cost of living should be less than your monthly income so that you can invest or save a part of your income. By budgeting, you may be able to spare a bigger portion for this cause. Tips to manage your expenses-   Follow your expenses carefully   Pay bills and EMIs on time to avoid penalties  Go for cheaper alternatives for food, clothes, and gadgets  Cutback on eating out, unnecessary subscriptions   Develop productive habits   2. Look for long-term investing options  Domestic and international stocks, bonds, and equity funds offer great returns on your initial investment. Sometimes double the returns as opposed to FDs, gold, and even property. These investments are great for those who wish to remain invested for 10-15 years, maximize their gains, and allow the market to average out the risk and loss. The beauty of the share market is that in the long run, it corrects itself and rewards its oldest members.  3. Go beyond PPFs and FDs   Beating inflation means looking past PPFs and FDs, stocks, gold, and exchange-traded funds (ETFs), mutual funds can help you diversify your investment and savings. This does not mean that you need to break your FD or PPF plan, it means starting a small SIP for Rs. 1000 or more for mutual funds or ETF can help you save better and reap the benefits of compounding.   4. Invest in gold and real estate  Gold is a natural deterrent against inflation; the rise of gold rises with inflation which means gold will remain an ever-green investment as long as inflation is here. But don’t restrict yourself to physical gold, invest in digital gold, gold ETFs, and sovereign gold bonds.  Similarly, in real estate, the cost of the property rises as well as rent with inflation Thus, invest in property or through real estate investment trust (REITs).  5. Mutual funds and ETFs  A SIP as low as INR 500 can help you stay financially secure in the near future. There is a good reason behind the popularity of mutual funds and ETFs, these are great instruments for beginners as well as professionals. Mutual funds are managed by a fund manager who invests on your behalf. This means you get to protect your savings from inflation without any effort.   Don’t let inflation eat at your savings. Invest wisely and remember that the cost of commodities is only going to increase so should your savings. FAQs How do you stay ahead of inflation?   To stay ahead of inflation, consider investing in assets with returns that outpace inflation, such as stocks, real estate, or commodities. Diversify your portfolio to spread risk. Focus on long-term investments, maintain a budget, and periodically reassess your financial strategy to adapt to changing economic conditions.  How do you manage inflation times?  During inflation times, manage by diversifying investments, focusing on assets with historically inflation-resistant returns, and avoiding excessive cash holdings.  Where do I put my money during inflation?   During inflation, consider allocating your money to assets that historically perform well in such conditions, like equities, real estate, commodities, and Treasury Inflation-Protected Securities (TIPS). Diversify your investments to spread risk and preserve purchasing power. Avoid keeping excessive cash, as it may lose value during inflationary periods. 

The Indira Gandhi Single Girl Child Scholarship is a scheme that has been designed to promote gender equality and empower girls through education. The scholarship is an initiative that recognizes the struggles and challenges that girls face in pursuing higher education. It provides financial assistance to single girl children who wish to pursue higher education. The scholarship recognizes the importance of educating girls and empowering them to become self-reliant, independent, and contributing members of society. The scholarship is a means of encouraging girls to pursue their dreams. The scholarship has been designed to provide monetary support on a monthly basis for a period of two years to 3,000 girls from across the country every year. The scholarship amount is directly transferred into the awardee’s bank account, making it easy and convenient for the beneficiaries to access the funds. The scholarship amount of INR 3100 per month for 2 years, i.e., 10 months per year, covers the full duration of the postgraduate course to be pursued by the candidates. The scholarship provides not only financial support but also motivation and encouragement to girls who have the potential to excel in their chosen fields. The scholarship has the potential to transform the lives of thousands of girls across the country and pave the way for a more equitable and inclusive society. The scholarship also aims to promote gender equality and encourage families to educate their girl child. The scholarship is a step towards creating a more equitable and inclusive society where everyone has access to quality education and opportunities to succeed. The Truth about Winning Scholarship Read More The following awards are provided to the beneficiaries of this scholarship:- The single-girl child scholarship provides monetary support on a monthly basis for a period of two years to 3,000 girls from across the country every year. The scholarship amount is directly transferred into the awardee’s bank account. Also, the students need to submit a ‘Continuation Certificate’ at the end of every three months in the prescribed format. The chosen girl students receive a scholarship amount of INR 3100 per month for 2 years, i.e., 10 months per year, covering the full duration of the postgraduate course to be pursued by the candidates. The award is disbursed to students through the UGC-designated agency from the date of their joining the 1st year of the PG course. The awardees need to submit a copy of their award letter and joining report along with the photograph, address, and contact number to the designated agency. Eligibility Under the mentioned scholarship scheme, female students who do not have any brothers or who are twin or fraternal daughters can apply for the scholarship. However, if a family has one son and one daughter, the girl child will not be eligible for the scholarship. The scheme is open to girl students who are up to 30 years of age at the time of admission to PG courses. It is applicable only to single girl children who have been admitted to a regular, full-time first-year Master’s Degree program in a designated university or postgraduate college. Please note that the scholarship is available only to PG-I year students and does not apply to those enrolled in distance education programs. Fullbright Scholarship Program Read More Documents Required The following documents are to be submitted for this scholarship:- Students must require an Income Certificate and a Caste Certificate. Proof of admission is required. It is necessary to obtain the bank account information of both the educational institution and the student. The fee structure of the program. One copy of the passport-size photograph and signature of the student. Student Identity card An affidavit of ₹ 50 stamp paper from the parents/girl duly attested by the First Class Magistrate/ Gazetted Officer/ SDM mentioning that she is the only child in the family. Rhodes Scholarship Program Read More UGC may terminate the scholarship of any student in the case of the Misconduct of the awardees, if any, reported by the University/College/Institution. If a student in the first year of their Master's program receives a progress report indicating unsatisfactory performance (i.e. less than 60% marks for most students or less than 55% for physically challenged students), they may be considered at risk of losing their scholarship.  If a candidate is later found to be ineligible for the scholarship, they may face penalties and may be required to repay the entire amount of the scholarship that has already been paid to them. While initiatives like the Indira Gandhi Single Girl Child Scholarship are commendable, there is still a long way to go in terms of gender equality and access to education. It is important to continue to raise awareness about the importance of educating girls and to work towards creating a more inclusive and equitable society. By providing girls with the opportunity to pursue higher education, we are not only investing in their future but also in the future of our society as a whole. Conclusion Indira Gandhi Single Girl Child Scholarship is a significant step toward promoting gender equality and empowering girls through education. It provides financial assistance to single girl children who face financial constraints in pursuing higher education and encourages families to invest in the education of their daughters. The scholarship has the potential to transform the lives of thousands of girls across the country and pave the way for a more equitable and inclusive society. Talk To An Expert

With the rupee free-falling against the US dollar and increasing the cost of living for millions of Indian students studying in the USA or Canada, there can be no better time to start investing in international stocks for your child’s education.   Since immemorial, Indians have saved for education through investments in fixed deposits, gold, life insurance, and real estate. In an inflation-ridden economy, these investments may not be enough, especially if you plan to send your child abroad for higher education.   The growing cost of goods and services coupled with the depreciating value of the rupee against the dollar not only makes saving tougher but also affects your child’s future purchasing power. Consider the table below – if even tuition and living expenses are kept constant over 17 years - the rupee will lose its dollar purchasing power. This can easily make foreign education more expensive for the average Indian parent. Currency Jan-04Jun-21 TuitionDollar50,00050,000LivingDollar25,000 25,000 TotalRupee 75,000 75,000 1=USD Rupee 45.4573.32Total Cost Rupee 34,08,750 54,99,000Increase- 16%  On top of this, tuition fees are rapidly rising. Some universities in the USA like Northwestern University and the University of Pennsylvania have increased their fees by 3.5% and 2.9% respectively. Arizona State University hiked its tuition fees by 5% in 2021! This growing cost shows that Indians investing only in rupee assets to save for their child’s foreign education are likely to lose money over time.   To make sure your savings don’t lose value over time, investing in international stocks is the answer. This is a great way to diversify your investments.    Where to invest in the international stocks and the US market?  There are two types of US equity investments for Indian parents.  The first is stock listed on the Nasdaq and NYSE. One of the most popular and best-performing sets of stocks is FAANG, which represents Facebook, Apple, Amazon, Netflix, and Google. To invest in these stocks, you can buy certain shares of these companies individually or via mutual funds.  The second type is called Exchange Traded Fund (ETF). ETFs are traded on exchanges like Nasdaq and are several stocks put together. These stocks track indices such as the S&P 500 or one sector such as the tech or automotive industry.   Factors to consider before investing in the US market for your child  Note: Before investing in international stocks and the US market. Consider the risk, time horizon, and historical performance of the stocks or ETFs. Saving for education is a sensitive and tough goal so consider all factors carefully. The time on your hands can help you determine your risk level.   If you are a parent with a two-year-old then you can take more risks. You can consider riskier investments like a small-cap ETF such as the Invesco S&P SmallCap Value with Momentum ETF whose cumulative performance of over 100% over the past five years in dollars.  Whereas, as a parent of a 20-year-old aiming to study master's in Canada within two years, your risk appetite is less. You can consider fewer volatility investments and consult with a financial advisor to create a comprehensive plan.  How to invest in US markets?  Indians can start investing by opening a USA brokerage account from their couch! There are many banks and financial partners that help you open an account to invest in international stocks. Once the know-your-customer (KYC) process and verification are completed, you can fund your account and start saving.   Under LRS, Indians can remit up to $250,000 a year for any foreign capital or current account transaction. This includes investments in international stock markets. Market investments are a form of income generation, you are required to pay taxes.   Navigating investments in the US market can be daunting but worth the hassle. Considering the increasing cost of education, geographical diversification is key. By accepting that foreign education and domestic education are only going to rise up, you can make room for considering powerful financial tools to fund your child’s dreams!  FAQs Where should I invest in child education?   Ans. Investing in a diversified education fund or a 529 college savings plan can be a good option for child's education. These investment vehicles offer potential growth over the long term and may provide tax advantages. It's important to research and consult a financial advisor to make an informed decision based on your specific circumstances.  Is it good to have international stocks in your portfolio?   Ans. Yes, having international stocks in your portfolio can add diversification and potentially reduce risk. It allows exposure to different economies and markets, enhancing overall investment opportunities.  Is it good for kids to invest in stocks?  Ans. Investing in stocks for kids can be educational and promote financial literacy. However, it carries risks, so parental guidance and moderation are essential. Consider using custodial accounts or educational resources to ensure a responsible approach to investing. 

ICICI Prudential Mutual Fund is the second-largest asset management company in India. With over Rs 5 Lakh crore, the AMC is among the most trusted names in the mutual fund space. ICICI offers products across asset classes. https://www.youtube.com/watch?v=tdwqQH0xkFw ICICI Prudential India Opportunities Fund Investment Objective The scheme's primary objective is to generate long-term capital appreciation by investing in opportunities presented by special situations such as corporate restructuring, Government policy and/or regulatory changes, companies going through temporary unique challenges, and other similar instances.  Investment Process   Concentrated portfolio: The scheme would take concentrated exposure to high-conviction stocks.  Market cap and sector Agnostic: The scheme has the flexibility to invest across market caps. Also, the scheme may take aggressive sectoral positions.  Bottom-up Approach: The investing style is a bottom-up stock picking style because the core of its investment strategy is identifying companies in special situations requiring rigorous 360-degree stock research.  Portfolio Composition  The fund had invested more than 66.49% of the funds in large-cap companies, 28.94% in mid-cap companies, and the remaining 4.57% in small-cap companies. Also, the fund is diversified across various sectors such as Pharma & Biotechnology, Automobiles, Banks, Telecom-Services, Finance, etc. The top five sectors hold approximately half of the portfolio. Note: Data as of 30th June. 2023. Source: ICICI Pru AMC, Value Research  Top 5 Holdings Name Sector Weightage % Oil and Natural Gas Corporation Ltd. Oil 9.03 Sun Pharmaceutical Industries Ltd. Pharma and Biotech 7.76 Bharti Airtel Ltd. Telecom Services 6.76 NTPC Ltd. Energy 6.40 Infosys Ltd. Information Technology 5.40 Note: Data as of 30th June 2023. Source: ICICI Pru AMC Performance Since Inception  If you had invested 10,000 at the fund's inception, it would now be valued at Rs 22,240. Note: Fund performance as of 30th June 2023 since launch; Inception Date:15th January 2019.  Source: icicipruamc.com  The fund has performed consistently and has generated an annualized return of 19.64% since inception. The fund has outperformed both benchmarks consistently.  Invest in Fund Fund Manager  Mr. Sankaran Naren and Mr. Roshan Chutkey ably manage the fund. Mr. Sankaran Naren has over 31 years of experience, and Mr. Roshan Chutkey has over 14 years of experience.  Who Should Invest?  The scheme is suitable for investors with an appetite for volatility and who would like to benefit from taking concentrated stock bets. Investors looking to benefit from investment opportunities presented by special situations such as corporate restructuring, Government policy and/or regulatory changes, companies going through temporary unique challenges, or other similar instances face time to time may consider investing in the scheme.  Why Invest in ICICI Prudential India Opportunities Fund?  Special situations are unique situations that companies may face from time to time.   These situations present an investment opportunity to a fund manager who can foresee and interpret the implications of that opportunity.  ICICI Prudential India Opportunities Fund has performed consistently following this investment strategy.    Ideal Time Horizon  One should look at investing for a minimum of five years or more.  Investment through Systematic Investment Plan (SIP) may help tackle broader equity market volatility.  Conclusion  The scheme provides access to well-researched companies currently undergoing special situations and provides a higher return potential. This allows investors to generate high returns over the long term by taking aggressive risks. Also, the fund has consistently outperformed its benchmark. Hence, investors seeking to invest for a long-term time horizon to generate high returns with higher risk through exposure to the banking and financial sector can consider this fund.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

Investing in US index funds is a great way to save for your child’s foreign education. Index funds like the S&P 500, an index of the top 500 publicly traded US companies, have yielded great returns. From 2001 to 2020, the average US stock market return was 7.45 percent.  Suppose you are a young parent and you decided to invest $100 in the S&P 500 at the beginning of 2000, you would have about $421 in 2021. Your investment would have doubled over these years!  With thousands of Indians moving abroad and sending their children to study in dollar-driven countries like the USA, Canada, and Singapore, investing in the US market for good and stable returns can boost their child’s education fund. Another benefit of investing in the US market via USA index funds is the opportunity to save in dollars.   If you are planning to send your child abroad in a couple of years, you will be required to pay for their tuition fees, accommodation fees, and living expenses in dollars. Thus, it only makes sense that you gain stable returns from your investments in dollars to maintain your purchasing power in the country.  Rupee depreciation   The Indian rupee stands at a disadvantage against foreign currencies like the US dollar, the British pound, and the Euro. This makes foreign education more expensive for Indian parents making money in rupees. For instance, if your child wants to study MBA from Harvard University then the cost for the year will be $81,272 for a year, which means spending Rs 60 lakh in 2021 (1 USD = 74.96 INR). If your child had gone off to study at Harvard ten years back, it would have cost you Rs 50 lakh in 2015 (1 USD = 64.13 INR). This huge gap is a result of rupee depreciation as well as education inflation. To ensure you don’t have to spend an extra Rs. 10 lakhs on your child’s education, you can invest in US index funds and stocks.  Investing in the US market not only helps you save money for your child’s education, but it can also benefit you if the currency appreciates. This is because the additional return on your holding period return becomes an asset. For example, if you invest in the S&P 500 index, for example, a 5% appreciation in the S&P 500 and a 2% dollar appreciation against the rupee in the same year can double your returns!  To make the most of the US market, it's best to contact a financial advisor who can help you pick stocks and funds based on your personalized goals, risk level as well and time frame. Investing in International Stocks Read More Inflation and the Rupee’s Impact on the American Dream   The fall of the rupee and growing inflation directly impact your American dream. It not only affects parents whose children are enrolled at universities in the US but also those who are planning to send their children abroad. Visa costs, accommodation, tuition fees, exam fees as well as living costs are affected by these two events.   So that your child’s American dream stays strong – geographical diversification is highly important. It requires you to save and invest in US index funds and dollars so that you can get capital appreciation, dividends, and benefit from dollar appreciation and not rupee depreciation.  The average cost of college in the US has increased manifold. This cost will rise further due to the growing demand for international students to their universities as well as to adjust to the inflationary rates. As a parent, you have the freedom to choose your weapons against the rising cost and determine a financial plan to fund your child’s future education.   Saving today for your child’s tomorrow is a must and your #1 priority! If you are confused about how to start then reach out to experts and financial advisors, use the college cost calculator to determine the future cost of your child’s education, and based on the amount, explore funds that will help you get closer to that goal!  FAQs Which funds are good for child education?  Ans. For child education, consider investing in education-focused mutual funds, 529 college savings plans, or target-date funds designed to align with your child's expected college enrollment year.  How can I invest in the USA for kids?  Ans. To invest in the USA for kids, consider opening a custodial brokerage account and investing in US stocks, index funds, or ETFs on their behalf.  Can Indians invest in US index funds?  Ans. Yes, Indians can invest in US index funds. Many international brokerages and investment platforms allow Indians to invest in US-based funds, subject to regulatory compliance and any specific restrictions imposed by the investment platform. 

NAV or Net Asset Value refers to the price of the mutual fund at which an investor can buy or sell units of the mutual fund. The NAV of a mutual fund indicates its market value. Hence, one can view NAV and its current performance to assess the mutual fund's current performance to a certain extent. An investor can determine the fund value by identifying the percentage fluctuation in the mutual fund’s NAV.   A mutual fund house hires an accounting firm that calculates the net asset value of the mutual fund. According to the SEBI guidelines, mutual funds must display their NAV publicly by regularly updating them on the AMFI and AMC websites on business days.  How to calculate NAV for a mutual fund?  The formula to calculate the NAV of a mutual fund is:   Net Asset Value = [Total Asset Value— Expense Ratio] / Number of Outstanding units  In the above formula, the TAV refers to the mutual fund investment's market value and the accrued income, receivables less accrued expense, outstanding creditor debts, liabilities, etc.  The expense ratio refers to the fee you pay to the AMC for managing your investments. The expense ratio directly impacts the investors' returns. Direct plans offer a lower expense ratio while regular plans have a higher ratio. In direct plans, the investors manage their own investments by eliminating the middleman!  https://www.youtube.com/watch?v=6_0eNgRHRho Generally, there are two categories of mutual fund assets:  Scheme with fundamental liquid funds like cash  Securities which include bonds and stocks  When you subtract, you will get the net asset value when you subtract the overall expense ratio from its asset value. You can standardize the asset value for each unit by dividing it by the total outstanding units. This will give you the NAV. So, this is important to learn before calculating the mutual NAV using the given formula.  There is a difference between the total and net asset value of any mutual fund. The total asset value includes stocks, bonds, and cash. All of this is considered at the market value or the mutual fund's closing price. The total interest obtained from the fund, its dividends, and liquid assets includes the total asset value. Moreover, the outstanding debt to creditors, expenditures, or other liabilities is essential to the total asset value.  A mutual fund involves a variety of costs. The overall annual expenditures incurred by the mutual fund scheme are included in the expense ratio, which is deducted from the total asset value to determine NAV. Its management fees, operating costs, transfer agent fees, custodian and audit fees, as well as distribution and marketing expenditures, are all included in the expense ratio.  When is NAV calculated?  Since the price of the security, such as stock or bonds, fluctuates often, the NAV of a mutual fund cannot be determined during stock market hours. NAV can be determined after the trading day has ended and the closing bell has rung. It is determined using the fund's shares' daily closing prices. What do high and low NAV indicate?  The NAV of a fund does not indicate how costly or inexpensive it is. The NAV only informs you of a mutual fund scheme's current worth per unit. A high NAV could merely represent a mutual fund scheme's successful performance. It also suggests that the strategy has been in existence for a while.  Few distributors highlight the low NAV when offering new fund offers. They make the investors believe that a low NAV will give them a high return. But that’s where they mistake the NAV of the mutual fund with the company’s stock price. The low stock price indicates that it is available for a bargain price. However the same rule cannot be applied to the NAV of the mutual fund. So, basically, you cannot judge how cheap or expensive a fund is by its NAV value.   NAV impacts only the quantity of units you receive. You receive fewer units from a mutual fund scheme with a high NAV, but the value of your investment stays the same. The mutual fund's performance and your returns hold more value. Difference between NAV and stock price  Many investors tend to confuse the mutual fund's NAV with the stock market price. So, while you are investing in a mutual fund, you may think that a low net asset value would mean a low price; hence, it can be an excellent investment. But that's precisely where you can get wrong.  The market price of a company's stock and the NAV of a mutual fund is very different. Investors can purchase a firm's shares once it is listed on the stock market. The stock exchange lists the price of the company's shares. This indicates the price of the stock market price. The price of the company's shares is influenced by variables, including the demand-supply situation and the company's potential. As a result, the stock market price and book value are different. The market price of a unit does not exist for mutual funds. Units of mutual funds are purchased at book value. Thus, the book value of a unit equals the mutual fund's NAV. Misunderstanding about NAV  Needless to mention that quite a few investors fail to understand the working of NAV. Thus, there could be a high chance of making the wrong investment choices. Being an investor in a mutual fund, you need to properly understand how the NAV is connected to the fund's performance. Some of the common myths associated with NAV:  1. Schemes with low NAVs fall cheaper  Let's say you put the same amount of money into two mutual fund plans with the same portfolios. You will receive more mutual fund units from the plan with the lower NAV. However, this does not imply that it is less expensive.  So, when you want to get more units, it may not always get you the highest returns. Therefore, the net asset value is not the best measure to identify whether or not the funds are expensive or cheap.   2. Funds with higher NAVs are better investments  The example above demonstrates that whether the NAV is high or low doesn't matter. The returns of two mutual funds with the same portfolio will be the same.  The NAV on any particular day won't provide any information on a mutual fund's potential for growth. Instead, it would help if you researched the fund's NAV from recent times. You can predict how a fund will perform in the future by comparing these previous data points.  3. Book profits when the NAV rises  The NAV of a mutual fund should not be confused with the share price. When shares' prices increase, a stock trader sells them to make a profit. Mutual funds don't operate that way, though.  When the NAV rises, you can redeem fund units to leave an investment with promising long-term prospects. Additionally, you can keep hanging onto fund units whose NAVs are dropping or staying the same. Before redeeming any units, consider the fund's performance rather than just the NAV. It could be wise to keep investing in a fund if it performs well.  A mutual fund's book value is its NAV. When making a mutual fund investment, you should focus on the fund's performance rather than just its NAV. This may be accomplished by examining the fund's historical results.  FAQs How is NAV calculated with example?  Net Asset Value (NAV) of a mutual fund is calculated by dividing the total assets minus liabilities by the total outstanding units. For example, if a mutual fund's total assets are $10 million and it has 1 million outstanding units, the NAV would be $10 per unit ($10 million / 1 million units).  How is NAV per share calculated?   To calculate the Net Asset Value (NAV) per share of a mutual fund, divide the total net assets (assets minus liabilities) by the total number of outstanding shares or units of the mutual fund. The formula is: NAV per Share = (Total Net Assets) / (Total Outstanding Shares or Units)  What is the formula for calculating NAV?   The formula for calculating Net Asset Value (NAV) of a mutual fund is: NAV = (Total Assets - Total Liabilities) / Total Outstanding Units.  What is a good NAV for a mutual fund?  Suppose you are ready to invest in mutual funds and see that one has a NAV of 10 and another at 20. While you may want to opt for the former, it is good practice to consider factors like previous performance, AUM size, alpha, and beta.  How often is a NAV calculated?  After each trading day, an investment fund's NAV is determined using the closing market values of the securities in its portfolio. NAV for companies might be seen as being close to book value. Shares of a company or fund may trade in the market at prices that differ from its NAV.  Is low NAV better than high NAV?  NAV will only affect the number of units you will receive. High NAV may give you fewer units but the investment value remains unchanged. Therefore, a high or low NAV reveals nothing about your investment's future.  TALK TO AN EXPERT

Incorporated on December 10, 1999, HDFC Asset Management Company Ltd. is among India's most popular fund houses. HDFC Mutual Fund launched its first scheme in July 2000, and ever since it has been ambitious about offering a stable performance of funds across all the variants of schemes it offers. The HDFC Mutual Fund is managed by HDFC Asset Management Company (HDFC AMC) Limited.  Let us talk about the consumer product – HDFC Mid-Cap Opportunities Fund  https://www.youtube.com/watch?v=h0xun9aaj9s HDFC Mid-Cap Opportunities Fund  Investment Objective The primary objective is to provide long-term capital appreciation/income by investing predominantly in mid-cap companies.   Investment Process  To follow a stock-specific approach  Construct the portfolio on a bottom-up basis  Focus on good quality companies at acceptable valuations  Long-term orientation (resulting in low portfolio turnover)   Stick to the circle of competence  Portfolio Composition  The fund had invested 92.54% of its assets in equity & equity-related stocks, and significant sectoral exposure is to Finance, which accounts for roughly 11.89% of the portfolio. Note: Data as of June 30, 2023 Source: HDFC MF https://www.youtube.com/watch?v=UHYimOpW9Pw Top 5 Holdings  Name Weightage % Indian Hotels Company Ltd. 4.39 Cholamandalam Investment & Finance Co. Ltd. 3.66 Max Healthcare Institute Ltd. 3.65 Tata Communications Ltd. 3.58 Apollo Tyres Ltd.  3.30 Note: Data as of June 30, 2023. Source: HDFC MF  Performance    This Fund S&P BSE 150 MidCap TRI Equity: Mid Cap 1 Year 34.64% 24.82% 23.13% 3 Years 36.45% 33.34% 31.71% 5 Years 18.04% 16.83% 17.05% 10 Years 22.38% 20.17% 21.05% Note: Data as of June 30, 2023. Source: Value Research  Invest In Fund Fund Manager  Mr. Chirag Setalvad (Since June 28, 2014) has over 25 years of experience, of which 18 years in Fund Management and Equity Research and three years in Investment Banking. Before HDFC, he worked at New Vernon Advisory Services and started his career at ING Barings in India.   Who Should Invest in HDFC Mid-Cap Opportunities Fund?  Investors looking to generate higher returns by taking exposure to mid-cap equities can consider this fund. However, investors need to understand the aggressive risk exposure of this fund.  Why Invest in this Fund?  Opportunity to invest in a portfolio of predominantly mid-sized companies.  Aims to provide diversification to an investor’s overall equity mutual fund portfolio.  Experienced fund management and research teams with a track record of managing equity assets across market cycles.  Emphasis on risk management – portfolio diversification across stocks and sectors; focus on good quality businesses.  One of the largest funds in the mid-cap category with a track record of more than 15 years.  Time Horizon  One should look at investing for at least three years or even more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The HDFC Mid-Cap Opportunities Fund has a proven track record of over 15 years, with an Asset Under Management of ₹42,731.64 Cr as on  June 30, 2023. The fund has consistently outperformed both the benchmarks and the category average also. Therefore, investors looking to generate wealth over the long term can consider this fund with an understanding of high risk.   DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

Business Insider says, “The average expenditure on a child in India is ₹8,331 per annum. The average fee for enrolling in a professional course for higher studies can go above the ₹72,000 mark.”  According to Yourmoney.com, “Around 65% of parents set money aside for their children’s education once they turn 3”. But despite efforts to ensure long-term investments in Fixed Deposits (FD), Mutual Funds, Gold, and insurance plans, they seek ways to bridge the small amount required.  With parents striving to ensure quality education in India for their kids, it is essential to know about education loans.  Here’s your guide to understanding how education loans work What does an education loan imply?   An education loan is an offering that banks provide to guardians to fund a child’s secondary and higher education requirements. Different banks and government institutes offer education loans at other criteria and interest rates. An education loan is of 2 types - Domestic and Overseas.  General eligibility criteria for education loans in India  Education loan eligibility criteria  You must be a citizen of India  The age limit must be 18-35   The child must have a solid academic record  The child must ensure a confirmed admission receipt from the respective educational institution in India  They must be undergoing a post-graduation/ graduation/ diploma  The institution must share the UGC or AICTE affiliation  Students pursuing a full-time graduation course must have a co-signer on loan.  NOTE: These criteria may or may not vary depending on the bank offering these loans. You are advised to check the specific eligibility criteria for the education loan you are interested in. What does an education loan cover?   It covers the following costs:  Tuition fee  Hostel fees  Stationary  Exam fees  Library fee  Books fee  Educational trips Documents required to get a quick education loan approval in India   Seeking approval from a lender is easy if you meet the document requirements without fault.   Documents required:  Accurately-filled loan application form  A recent photograph of the student  Age Proof (Aadhar Card, Identity proof, voter ID card)  Address Proof  Admission proof (Admission letter)  Marksheet (10th/12th/graduation/GRE/TOEFL/IELTS, whichever is applicable)  Income proof of the co-signer on the loan. He can be a guardian/parent.  Bank statements (Last six months)  The previous two years’ income tax returns along with income computation  Audited balances sheet for previous two years  Proof of yearly revenue/salary receipts  Documents of assets for collateral requirements on the loan Read more: Pay off an education loan How does an education loan work?   An application process may vary from bank to bank. However, here is the general way an education loan works:  source: pexels Step 1 - Explore the interest rates from different banks  Check the factors below before applying:  Total costs over EMI (Equated Monthly Instalments)  Repayment period  Money margin: It is an upfront cost to pay on a loan. If the loan exceeds 4Lakh, the lender exempts the margin.  Check the bank’s partnership with NBFC (Non-Banking Financial Companies)  Check the tax deductions you may qualify for under Section 80 E of the income act. It is a tax deduction on education loans for higher education. A taxpayer applying for a child’s education abroad can qualify.  Guarantor or collateral over the loan  Step 2- Fill out the loan application  After choosing the bank to partner with and checking the terms, fill out the loan application. Check whether or not the banks provide loans for a particular course. Always check the loans for the periods before applying. Banks offer loans for both parts and full-time education.  Fill out and submit the application form with the documents mentioned below:  Passport size photographs (2)  Graduation, secondary or higher secondary Marksheets  KYC documents (Voter ID, PAN card) ID address  Age proof  Signature proof  Guardians/Parent’s income proof  Documentation of immovable property  You can file for a loan either online or offline at your convenience  Step 3 - Confirm the loan sanction   After meeting the requirements and attesting to the required documents, you will receive a mail detailing the loan terms and elements. Read carefully before signing. If applying for a secured education loan, the lender may ask you to provide collateral details.  Read more: How to avoid education loans? How does an Education loan repayment work?   After the loan sanction, the bank provides a memorandum period. It is a defined payment gap in the loan tenure until which a borrower is not liable to pay any repayments towards the loan. Banks generally provide a 6-12 months memorandum period. However, education loans have competitive interest rates. Talk with your lender and begin your repayments early.  If the lender agrees, you can improve your credit score by paying off the loan early. Enquire for pre-payment loan fee (if any). Do so only if not availing of tax deductions (Section 80E) on the loan. Else, qualifying for tax deductions, in this case, stands next to null. It is known as an auto-deduction loan.  Repayments vary from bank to bank according to the loan amount availed. If unmanageable, you can set up an auto-debit system to make monthly payments towards the loan.  Conclusion  Finding a low-interest and non-collateral educational loan is tasking. Edufund eases the process for you by filtering out the best loan options from multiple banks and NBFC partners. Contact us for more details. FAQs How does an educational loan work?   An educational loan is a financial product that helps students and their parents fund education expenses. The borrower borrows money from a bank or financial institution, and after completing the education, they start repaying the loan along with interest, typically in monthly installments over a specified period. The interest rate and repayment terms vary depending on the loan provider and the borrower's creditworthiness.  Is education loan interest-free?  Education loans are generally not interest-free. Interest is charged on the loan amount, and borrowers are required to repay the principal amount along with the accrued interest over the loan tenure.  Is taking an education loan a good idea?   Taking an education loan can be a good idea if it enables you to pursue higher education and career opportunities that would otherwise be financially challenging. However, consider the repayment terms, interest rates, and your future earning potential before making a decision.  TALK TO AN EXPERT

UTI is one of the pioneers of the Indian Mutual Fund Industry. With an AUM of more than Rs 2.4 Lakh crore, the AMC is among the most trusted names in the mutual fund space. The UTI Mutual Fund offers products across asset classes. https://www.youtube.com/watch?v=tdwqQH0xkFw UTI Nifty50 Equal Weight Index Fund  Investment Objective The investment objective of the scheme is to provide returns that, before expenses, correspond to the total return of the securities as represented by the underlying index, which is Nifty50 Equal Weight TRI, subject to tracking error.  Investment Process   UTI Nifty50 Equal Weight Index Fund follows a passive style of investing; that is, it invests in all the companies forming part of the Nifty50 Equal Weight Index (the underlying index) in the same proportion of the underlying index to earn a return as much as the underlying index, before expenses.     Portfolio Composition  The scheme had invested 98.52% of its assets in equities, and the remaining were cash and cash equivalents as of June 30, 2023. The scheme had significant exposure to financial services, followed by Automobile and Auto Components and Information Technology.  Note: Data as of June 30, 2023. Source: UTIMF, Value Research  https://www.youtube.com/watch?v=mVTKhy6XJME Top 5 Holdings Name Sector Weightage % Sun Pharmaceuticals Industries Ltd. Healthcare 2.03% Infosys Ltd. Information Technology 2.02%  Bajaj Auto Ltd. Auto and Auto Components 2.02% Tata Motors Ltd. Auto and Auto Components 2.02% JSW Steel Ltd. Metals and Mining 2.02% Note: Data as of June 30, 2023. Source: UTIMF Performance Since Inception  If you had invested 10,000 at the fund's inception, it would now be valued at Rs. 10,242, whereas the benchmark (Nifty50 Equal Weight TRI) would have fetched Rs. 10,501. Since the fund was launched just a month ago, monitoring how the fund tracks the underlying index in the long term will be essential.  Note: Performance of the fund as on June 30, 2023, since launch; Inception Date – June 07, 2023. Source: utimf.com Invest in Fund Fund Manager Sharwan Goyal is Fund Manager and Head - Passive, Arbitrage, and Quant strategies at UTI AMC. He is a CFA Charter holder from CFA Institute, USA, and holds a post-graduate degree in Management (MMS) from Welingkar Institute of Management, Mumbai. He has over 16 years of experience in Risk Management, Equity Research, Portfolio Analysis, and Fund Management at UTI AMC.  Who Should Invest?  This product is suitable for investors who are seeking:  Capital Growth in tune with Index returns.  Passive investment in equity instruments comprised in Nifty50 Equal Weight TRI.  Why Invest?  The index offers exposure to the Top 50 large companies on the NSE with equal weight (~ 2% to each stock) with quarterly rebalancing.  The index aims to benefit from the growth opportunities across stocks/ sectors rather than just relying on the performance of a few heavy-weight stocks/sectors.  The index represents smart and intelligent investing through "Auto Quarterly Rebalancing" and thus enables "Auto Profit Booking."  Ideal Time Horizon  Ideal for investment with a time horizon of, preferably, five years or above   Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  Investing by replicating Nifty50 Equal Weight TRI is a better approach to investing in large-cap companies. Historical data shows that the Nifty50 Equal Weight TRI has generated better returns than the Nifty 50 with lesser volatility. Therefore, this scheme suits investors looking for a simple yet smart way of investing in the Top 50 companies. However, monitoring how efficiently the fund tracks the underlying index over the long term will be crucial. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

Rising school fees and medical expenditures and increasing living conditions have forced several parents to keep saving intensively. Child FD plans are the ideal solution for anybody searching for better options and longer-term investment products to build a foundation. Many government-recognized fixed deposit programs for children in the industry complement independent schemes offered by Indian banking institutions.  How are FDs a secure savings plan for your child’s education?  FD plans allow you to deposit your money with a bank and receive interest on it. The funds grow in line with the interest rate, and you may withdraw them at the end of the FD term. Because of the safe investments, this is a secure investment instrument popular among individuals who prefer little risk.  Minors' parents can now register an FD account on their behalf to save and develop a foundation for their children. These deposits might provide the necessary financial push to a child's hopes and educational goals. When the kid reaches adulthood, they can acquire control of the account and spend the funds as per the requirement for education.  One of the best long-term investment options, especially for customers concerned about the security of their assets, is the traditional savings model of FD investments. You may create a fixed deposit account through any bank with a set sum for a lengthy period, such as three, five, or ten years, at a specified interest rate ranging from 3% to 6.5 % each year. After the term, the capital and interest can be withdrawn. Best FD interest rates are offered basis effective dates From 2015 to 2020, the value of bank fixed deposits as a component of wealth generation in financial assets in India was calculated. In the fiscal year 2020, Indians maintained about 46 trillion rupees in bank fixed deposits as individual assets. This was a significant rise in the value of fixed deposit assets over the previous fiscal year's 44.18 trillion rupees.  Why invest in FD savings for your child's education?  The following essential reasons to invest in child FD plans entice parents greatly.  1. Higher FD interest rates:   Interest Rates from 4% to 7% can be earned on Fixed deposits for children. Furthermore, the yearly compounding of the FD bank rate results in a larger total upon maturity. High-interest rates can meet the expenses to be incurred for educational expenses.  Best fixed deposit with the Highest interest rates in 2022  Planning Fund for Your Child's Education is made easier by the best FD rate on fixed deposit investments. In India, investment terms ranging from 7 days to 10 years are available to suit your needs. 2. Flexibility in FD duration   Several FD schemes enable the investors to choose a tenure typically lengthened ten years or more. To get the gains of compounding, it is best to choose a longer term.   Account holders benefit from flexibility in Fixed Deposit periods, which includes advantages as follows. Thus, investors can plan accordingly to save for a child's education.  Competitive interest - Flexible Fixed Deposits provide more excellent interest rates than Savings Accounts, allowing you to make more money with your money.  Adjustable tenures - Varying banks provide numerous tenures for Flexi deposit programs, guaranteeing that one picks a term that best meets their financial demands.  The amount for investment - Individuals can pick the proportion they want to invest, with different banks accepting varying amounts as deposits.  Early withdrawal - Several banks permit premature withdrawals from Flexi fixed deposit accounts due to particular restrictions.  Loan provision - Depositors can typically obtain loans against flexible fixed deposits, depending on bank restrictions.  3. Assured returns   An FD account's returns are secured and assured. There are no fees associated with obtaining the maturity money. The full payment is paid as a lump sum to the recipient. The monetary benefits that an FD provides are unaffected by market volatility. A loan over gold can be undertaken for a maximum of 80% of the deposit value, while a loan obtained on the FD amount can be taken for a maximum of 90% of the initial deposit. With a fixed deposit, investors may also choose a flexible duration to invest money that meets their needs. Parents as Investors can feel guaranteed the amount they can expect, which helps to plan their child's educational dreams.  4. Low minimum deposit quantity The minimum investment is not significant enough to take away your money. You may also choose a monthly structured investing option with specific child fixed deposit plans. For most banks, the minimum FD amount is as little as 5000 rupees. Certain banks may need a minimum of 10,000 rupees if this is your first fixed deposit. Since the deposit quantity amount is not too huge, parents can start early with their FD savings to meet their future educational expenses.   Conclusion  Start saving for a child's educational fees as early as possible. Parents must also invest wisely to obtain the best results. Parents must set money away regularly to save for their child's education. The decision to invest should be based on the product's expenses, tax-efficient yields, expenses, and volatility. With a well-planned long-term approach and a well-chosen FD scheme, parents may accumulate significant capital and ensure their child's educational aspirations are funded over time.  FAQs How can I save money for my child's education?   To save money for your child's education, consider setting up a dedicated savings account, invest in education-specific savings plans or mutual funds, create a budget to cut unnecessary expenses, explore government-sponsored education savings schemes, and seek advice from a financial advisor to develop a tailored savings strategy.   Which is the best-fixed deposit for kids?   The best-fixed deposit for kids would depend on factors like interest rates, lock-in period, and terms offered by various financial institutions. It's best to research and compare options from different banks and financial institutions to find the most suitable one.  Which is the best saving for children's education?   The best saving option for children's education may vary depending on individual circumstances. Some popular choices include 529 plans (in the USA), Registered Education Savings Plans (RESPs) in Canada, and Education Savings Accounts (ESAs) in some other countries. It's advisable to research and consult with a financial advisor to find the most suitable option for your situation.  TALK TO AN EXPERT

Parents are always determined to give their children the best. There is no better investment than education for your child in this hyper-competitive world. Moreover, quality education is the only thing that will allow your child to make a mark in their respective careers. Many parents consider sending their children abroad to provide them with the best education.  When studying abroad, your kid will have access to great educational infrastructure. Foreign education is considered a sound investment irrespective of the finances of the parents.   Over the years, a majority of students who have managed to go abroad to pursue education in a good university have found a great career and future. Many students are opting for overseas education to optimize their career prospects. https://www.youtube.com/watch?v=ObWmCHWgwAw 1. Cost of living   Living expenses usually vary based on several parameters. For instance, the location where your child chooses to live and the type of accommodation they prefer greatly determines the cost of living. Many students these days opt for shared accommodation to cut costs.  In this manner, you’ll be able to save a considerable amount of money. Let’s cite an example to understand better. For instance, if you are sending your child to London for higher studies, the total cost will be INR 12 lakhs. On the other hand, if they stay outside London, the overall cost will be INR 9 lakhs.     https://www.youtube.com/watch?v=tdwqQH0xkFw 2. Cost of pursuing Undergraduate and Post Graduate Courses   Irrespective of the country, the cost of pursuing UG courses will be between INR 14 lakhs to INR 25 lakhs per year. On the other hand, the cost of pursuing postgraduate courses will be between INR 15 lakhs to INR 30 lakhs annually.   3. Cost of studying in the USA   If you are sending your child to the USA for higher studies, it is crucial to be aware of the overall costs. College tuition can cost close to INR 15 lakhs to INR 40 lakhs per year. Moreover, the fee depends upon the college where your child has enrolled.   4. Cost of studying in the UK   The cost of studying in the UK can be close to INR 20 lakhs annually. But it depends on the course and the college chosen by your child. However, the cost of living in the UK is affordable when compared to other countries.   https://www.youtube.com/watch?v=F3QCgLruQzc 5. Cost of studying in Canada   Canada is another country that has been getting a lot of attention from students. Compared to other countries, Canada has a decent educational infrastructure. And what makes the country appealing to students is the lower fees. The approximate cost of studying in Canada is between INR 80,000 to INR 10 lakhs per year. But the overall fees depend on the course and college selected by your child.  6. Cost of studying in Australia If you are planning to send your child to Australia, the average cost will be between INR 10 lakh to INR 16 lakh annually. Note that this is applicable if your child pursues undergraduate courses. On the other hand, for a post-graduate course, the approximate fees will be between INR 12 lakhs to INR 18 lakhs per year. The cost of living can range from INR 70,000 to INR 1 lakh for a year.   https://www.youtube.com/watch?v=ynH9mdMWmDs 7. Steps to tackle expenses of your Child’s foreign education  An overseas education offers an array of advantages to your child. However, sending your child abroad can be pretty expensive. It comes with a heavy price tag, and parents should be knowledgeable in tackling the challenges. Here are some ways in which you can fund your child’s foreign education.   10 ways to plan education abroad Read More 8. Applying for an Education loan Based on the views of industry experts, the inflation rate in education is increasing sharply. With exorbitant costs, savings alone can’t be enough to fund your child’s education. Moreover, unplanned situations and emergencies can adversely affect your savings. One of the efficient ways to fund your child’s foreign education is to opt for a loan. Nowadays, most lenders offer customized education loans to students. You can apply for these loans to fund your child’s foreign education.   https://www.youtube.com/watch?v=d0nVcGABfGs 9. Start investing early   If you want to send your child abroad, it is crucial to start investing early. For instance, you can invest in mutual funds to get good returns. Note that it is always important to commence as early as possible to get better returns in the long term.    Indian Scholarships to Study Abroad Read More 10. Shift your corpus to less risky funds   Experts recommend investing aggressively in the market in the initial stages. In the initial stages, you can afford risks and increase your finances for good returns. If you are not experiencing good returns or the market is volatile, you can transfer your corpus to less risky funds.     ​The cost of studying abroad is something that you have to recognize from the start. Start investing in the right channels to fund your child’s education in foreign countries. Ensure that you invest early to reach the amount you need for your child’s education. FAQs Can you study abroad as a parent?   Yes, it is possible for parents to study abroad, but it may involve additional considerations such as childcare arrangements and financial planning. Many universities offer family-friendly programs to accommodate parents pursuing their studies while managing family responsibilities.  Why do parents want their children to study abroad? Parents may want their children to study abroad to provide them with opportunities for personal growth, cultural exposure, and a global perspective.  Is it very expensive to study abroad?   The cost of studying abroad varies depending on the country, university, and program chosen, but it can be relatively expensive. 

Small-cap funds are flooded with funds. Investors are heavily pumping money into small-cap equities in the hope of high returns. Investors have put in more than Rs. 33,040 crores in small-cap funds from April-2022 till June-23. Net inflows in mutual funds It can be inferred from the data released by AMFI that the investors are taking aggressive bets by flocking into high-risk funds such as small-cap, mid-cap, and thematic funds. The reason behind such a huge increase in small-cap investments is the returns given by small companies in the recent past. Nifty 250 TRI Rolling Returns The average returns delivered by small-cap funds in the last 1 year is 30.92% compared to the average return of 20.96% of the large-cap funds. Clearly, the returns delivered by small caps are way higher than the large caps. But, what about the risk? Aren’t the small cap equities too risky compared to the large caps? Let us see what the data says.  Volatility in price As can be inferred from the above graphs, the returns delivered by small caps are well above the large caps and contrary to the general perception, the volatility in the prices is not significantly higher than the large caps. After looking at this, now the question arises whether investors should continue to invest in the small-cap funds, or should they hit a pause on investing in the small-caps and book some profits. Let us try to find out.  Valuations: The first parameter the investors look at is the valuation. Are the small-cap companies overvalued? Let us look at the P/E ratio.  Nifty small cap 250 PE Although P/E alone cannot be used to conclude whether the companies are overvalued or not, it can be used to get a quick idea about the relative valuations of the companies. And as can be seen in the above chart, the current state of P/E does not suggest that small-cap companies are extremely overvalued.  Small Cap Premium: In a paper titled “The Relationship Between Return and Market Value of Common Stocks,” Rolf W. Banz concluded that the common stocks of smaller firms outperformed the common stocks of larger firms on a risk-adjusted basis. Many have argued that the inference drawn in the said paper does not hold good in today’s world. However, this has always been the case for developing economies like India where smaller companies have outperformed the large caps by a significant margin.  India’s Growth Story: India is a developing nation, and we are growing at the fastest rate. Small-cap companies are expected to benefit disproportionately higher than large-cap companies from such high growth. The primary reason behind this is the smaller base of the small companies which translates into higher growth in relative numbers. And secondly, it becomes difficult for large companies to grow faster due to their large size.   Volatility: As seen earlier, the volatility of small-cap companies reduces significantly over a longer period. Hence, small-cap companies are not as volatile in the long run as we generally perceive.  Conclusion  Small-cap equities offer tremendous growth potential over the long term, especially in a growing economy like India. However, it is possible that investors might not see extremely high returns in the short term. But stopping investments based on this rationale implies nothing but trying to time the market and doing so may prove to be harmful if the markets do not correct. Hence it is advisable to continue to invest for the long term keeping in mind the said factors