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DSP Equity and Bond Fund

DSP Equity and Bond Fund

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant. The family behind DSP has been very influential in the growth and professionalization of capital markets and the money management business in India over the last one-and-a-half centuries  Let us talk about the flagship product of the DSP Equity & Bond Fund About DSP Equity and Bond Fund  Investment objective The primary investment objective of the Scheme is to seek to generate long-term capital appreciation and current income from a portfolio constituted of equity and equity-related securities as well as fixed-income securities (debt and money market securities).  Investment process    The scheme invests in equity (for capital appreciation) and debt (for income generation). It has an auto-balancing element wherein the portfolio is rebalanced to maintain the 65:35 equity-to-debt allocation. The investment framework is such that equity investments seek long-term growth opportunities across market caps and debt investments are only in highly rated instruments with short-term maturity profiles.  Portfolio composition  The portfolio's major exposure of more than 60% in large-cap followed by 28% in mid-cap. The top 5 sectors hold nearly 41% of the portfolio, with major exposure to Banks and Finance. Note: Data as of 30th Nov 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: dspim.com  Top 5 holdings in DSP Equity & Bond Fund Name Sector Weightage % HDFC Bank Ltd. Bank 7.20 ICICI Bank Ltd. Bank 5.73 Bajaj Finance Ltd. Financial Services 4.24 Infosys Ltd. Information Technology 2.99 Axis Bank Ltd. Bank 2.85 Note: Data as of 30th Nov 2022. Source: dspim.com Performance over 23 years  If you would have invested 10,000 at the inception of the DSP Equity & Bond Fund, it would be now valued at Rs. 2.21 lakhs. This fund has outperformed the benchmark in all time horizons. Note: Performance of the fund since launch. Inception date – May 27th, 1999. Source: Moneycontrol  The DSP Equity & Bond Fund. has given consistent returns and has outperformed the benchmark over the period of more than 23 years by generating a CAGR (Compounded Annual Growth Rate) of 14.23%. Fund Managers  Atul Bhole - Total work experience of 10 years. He joined DSP Investment Managers in May 2016 as Vice President-Investments.  Dhaval Gada – Total work experience of 13 years. He joined DSP investment managers in Sept-2018 as Associate Vice President and was promoted to Vice President in Feb-2022.  Vikram Chopra - Total work experience of 14 years. He comes from L&T Investment Management. He has also previously worked with Fidelity, IDBI Bank, and Axis Bank Ltd.  Who should invest in DSP Equity and Bond Fund?  Investors  Want to invest in the equity markets but don't know how to begin?  Accept that equity investing means exposure to risk and recognize market falls as good opportunities to invest even more.  Why invest in DSP Equity & Bond Fund?  The simplest way to get the benefit of asset allocation is with a balance of growth & stability orientation.  Offers potential capital preservation during falling markets due to debt allocation.  Horizon  One should look at investing and holding the investment for more than 10 years.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  This scheme offers a diversified portfolio to investors who do not have much experience in the equity markets. Diversification is such that equity investments offer capital appreciation and debt investments offer wealth preservation. The scheme has a slightly lower impact on market fluctuations compared to pure equity funds 
How to budget for short-term and long-term goals?

How to budget for short-term and long-term goals?

Do you plan on buying a laptop? Do you also wish to save for your child’s education? These are two different financial goals, and both require good planning and execution. This blog will discuss “How to Budget for Short-Term and Long-Term Goals”.  It is better to be aware of your financial situation and the different expenses that you incur to plan accordingly.   Budgeting helps to identify financial spending and understand how to allocate the leftover money to various needs for a better future. It encourages people to stay organized and appreciate the value of accounting. Steps needed to budget for short-term and long-term goals Step 1: Prepare for life’s contingencies Life is unpredictable, and it is necessary to be prepared for any events that might set you back, like recession, job loss, illness, or even death. Prepare for some of the contingencies with the help of insurance plans, for example, health insurance or Mediclaim plans are suited for illness and hospital bills, and life insurance plans like term insurance for financial assistance in case of death.  For a recession or job loss, you need to create an emergency fund where you put aside some money regularly. Automate these payments so that they can continue without any hassles.  Step 2: Define the financial goals Identify both short-term and long-term financial goals so that it becomes easy to segregate them and make budgeting plans accordingly. Short-term goals can be credit card payments, emergency funds, or personal expenses, whereas long-term financial goals often include retirement funds, a child’s education fees, and paying off the mortgage.  Define the financial goals and be specific with the goal, be it about buying a new house in 5 years your child’s education down the line, or a retirement fund? Step 3: Prioritise the financial goals Once you have defined and sorted out the financial goals, it becomes imperative to prioritize them. Consider the time you have in hand to meet them and how vital these goals are for yourself and your family’s future.  Step 4: Consider the timeline  By this time, you have identified and segregated the financial goals and have a few specific goals in mind. Think about the time in hand for instance, for the child's education goal, you need nearly 10 - 15 years, but for buying a house, you need 5 years. Step 5: Consider the money  The next question to consider is the money you will need to fulfill the financial goal, for instance, the estimated price of the house you want to buy (nearly INR 80 Lakhs) or the amount you want to save for the education corpus (nearly INR 60 Lakhs).  Step 6: Review all your expenses Record all the spending for at least a month to know how much and where you have been spending. Review these expenses and identify which ones are necessary, which ones can be reduced and how much money you have left after meeting them.  Step 7: Set a savings target The money must work for you and provide maximum advantage hence look for ways to save it. There are numerous short-term and long-term investment plans available in the market, like SIP, liquid funds, debt funds or PPF, etc.  Take the help of a financial advisor at Edufund to know more about short-term and long-term investment options. Look at your total savings and make sure it accounts for everything from the contingency fund to the long-term and short-term financial goals. The ideal ratio for spending and saving should be 50:50, but you can mold it as per your requirements up to 60:40. Any more spending will create worries hence try to maintain a balance. Step 8: Divide the savings for important goals Divide your savings for all the important goals. Prioritize necessary long-term goals like education corpus for the child, retirement plan, and necessary short-term goals like purchasing a home. Now put the focus on comparatively less important goals like marriage, family vacation, home renovation, etc., and lastly, consider the short-term lifestyle goals.  Tips to make budgeting a success The premium of health insurance and life insurance policies must be on time. Automate the process from your salary account to avoid any discrepancies. Always keep the contingency fund aligned with current income and expenses. Club similar lifestyle purchases and expenses to get better value. Take the help of a credit card to pay for your expenses but pay back the amount within the stipulated time to avoid any charges.  Conclusion It takes both planning and budgeting to stretch your money to the last unit and meet your financial dreams effectively. Once individuals are aware of how to budget for short-term and long-term goals, then it becomes easy to manage their expenses and focus on spending that will have more value. TALK TO AN EXPERT
How to align short-term and long-term goals

How to align short-term and long-term goals

Planning to align your short-term and long-term plans and want to know the best way to do so? Well, this blog will answer your queries and explain how to go about it systematically. Individuals often have a list of financial goals that will secure their financial future. Both, short-term and long-term goals are equally important and serve different purposes in real life. In most cases, you cannot achieve one without the other. Hence, it becomes feasible to align them as short-term goals depend, to a great extent, on long-term strategy. What are short-term goals? Short-term goals are the goals that have to be met in the immediate future and cannot be avoided. For instance, you might be interested in creating and managing an emergency fund or have to make regular payments towards an insurance scheme that you have taken out or simply your credit card payments. Short-term goals are actionable steps that improve productivity and help to remain focused.   What are long-term Goals? The long-term goals are the financial goals for the future or down the line in the next 10 or 15+ years. These often include a child’s education corpus, retirement fund, or mortgage payments, as these will be needed after several years and not just now. Long-term goals give direction and help to develop plans and steps that will take an individual toward his dream.  Steps for aligning short-term and long-term plans 1. Look into the financial goals Look at your financial goals and divide them into two different categories short-term and long-term. Be aware of your goals to know where you have to spend your money. Are you creating an emergency fund paying rent, or making home improvements? These are short-term financial goals, but if you want to maintain a retirement fund or an education fund for your child, then these will be treated as long-term goals.  2. Prioritize your goals Identifying the various goals is the easy part but prioritizing them is a very different scenario. Every goal looks important at the onset hence you need to sit down and think carefully about the ones with the maximum impact.  3. Be realistic People need to be realistic about their expectations because you need to have the means to fulfill your wishes. Look at the amount left after meeting your expenses and decide how to manage it constructively. You can take the help of the 50/30/20 equation or adjust it according to your personal needs. Realistic and clear goals will enable the alignment process and lead to success.  4. Set long-term goals before the short-term tactics There is a misconception that you have to set up short-term goals first because they are related to the present and need to be addressed first. The truth is that aligning both sets of goals requires you to set clear and defined goals for the future at first. When you know the direction, you need to take it becomes easier to break the long-term goals into specific and measurable short-term tactics, follow a definite timeframe, and uphold the long-term vision.  5. Break the long-term goals into shorter goals Aligning and solidifying the short-term and long-term plans will have a positive impact on future objectives, and one of the best ways is by breaking the long-term goals into small defined goals that can be achieved within a specific and small timeframe. Make sure the long-term goals are identifiable and concrete because vague goals will make the alignment process difficult. 6. Specific goals When the goals are specific, it becomes easy to create and follow a definite plan of alignment. For example, if a person has INR 4000 left for savings and investment and he has to pay INR 1000 every month towards his retirement plan, then his path is clear. It becomes vital to keep up with your rising income. If at the start of your professional career, you were saving and investing only a small amount because of a small salary, then you should increase your savings as your salary increases.  7. Take the help of financial experts Sometimes it is better to opt for expert advice and work accordingly. Financial counselors at Edufund can create a financial plan that will align your short-term and long-term goals perfectly. This will make the journey comparatively easy.  Conclusion  It is important for short-term planning to align with long-term goals and not the other way around. When an individual has a specific long-term plan that is concrete and identifiable, then it becomes easy to mold the short-term tactics and uphold the longer visions. Consult an expert advisor to get the right plan TALK TO AN EXPERT
Methods of saving money

Methods of saving money

Saving money is tough and overwhelming. With the internet filled with different methods of saving money, it can get difficult to pick which is the best choice for you!  In this article, let’s find out what are the varied methods of saving money and where you should park your money for the best returns. Methods of saving money  Here are some methods of saving money that can help you achieve your long-term and short-term financial goals 1. Invest and Save  Investing and saving are one of the most crucial methods of saving money. It is also the most underrated method. Most Indians do not invest in the stock market or take benefit of its varied opportunities. If you want to invest and save then here are some investment options to explore 2. Direct mutual funds Direct mutual funds are a good way to start investing and saving. As there is no middleman in between, there is no extra cost.  Regular mutual funds are another type of mutual fund. These charge more in terms of expense ratio but are professionally managed and maintained by an experienced fund. This is a great investment for investors who are new to investing and need a helping hand to make the most of their investments. 3. Digital Gold Digital gold, gold bonds, or gold ETFs are also a way. There are alternatives for physical gold but it is a way of investing. You can do all of this online; there is no need to go to a jewelry store. It’s the more suitable way of buying gold. Investors who want to sell or buy gold can do it without any problems with one click in an app. The minimum cost of buying or selling gold can be as low as Rs 1. 4. US Stocks US Stocks are another method of saving money! That’s right. Suppose you plan to send your child abroad to study in USA or Canada. The currency difference between USA and India will make the education cost higher for you. Imagine if you start investing that money regularly in US dollars so that by the time your child is off to the USA, you will be able to fund his/her dream without any loss!   Real estate investment involves buying, managing, and selling a property. It’s a type of investment and has different parts. 5. ETFs ETFs (Exchange-Traded Funds) are somehow similar to mutual funds. It’s a type of pooled investment security. It can be sold and bought much like other stocks.  Daily savings and budgeting  Many people ignore saving and budgeting as a method of saving money. It can help you cut costs and recognize areas where you may be losing money.  Create a budget for the month. When there’s a fixed budget for the month, you tend to spend less. Settle everything under your budget.  Don’t just save your money, think about your future too. Set aside some money for an emergency fund. So that you are prepared for any emergency like job loss.  Start saving for your life after retirement. Make sure you have a retirement plan or fund in place way before time. This will help you amass more money over a long period of time. In fact, the sooner you think about your retirement, the more money you are likely to save up!  Save and invest your bonuses or tax refunds. Put them into your savings account and consult your financial advisor on how to make the most of it.   Manage your debts before making creating any extra costs like starting a new EMI.  Save electricity. It will also save you money. By not using unnecessary fans, lights can cost you more than you can think.  Cancel your automatic transactions, and memberships, and unsubscribe from unnecessary emails because by seeing offers you tend to make unnecessary purchases.  Decrease your mobile bills. Cut off unnecessary plans from your bill. Use free Wi-Fi instead of buying extra data plans.  Banking saving tips  Use your credit less. Pay your credit card bills timely to have less burden on your shoulder later.   Use only your ATMs or debit cards because every time you use your ATMs or debit cards, you are not charged any withdrawal charges.   Keep your monthly bills on automatic. It will free you from hassles and also pay your bills on time.  Entertaining saving If you love reading and like to have physical books then use your nearby libraries.  Watch films at home instead of going outside and spending more there. Going to a theatre means buying popcorn, seats, transportation, etc. but when you watch films at home you don’t spend extra.  Reduce your trips to coffee shops. It doesn’t cost you $2 - $3(Rs 200 - Rs 400), but it costs you more than that in long term.   Instead of eating out regularly, cook your own food at home.  Cut off your grocery expenses. Don’t shop extra from that grocery store. It helps you in saving extra money here and there. Make a budget for that too and stick to it.   Consult an expert advisor to get the right plan TALK TO AN EXPERT FAQ Are ETFs a good investment?  ETFs are actually low-risk investments because they are low-cost and hold a bag of stocks. What are the 2 methods of saving?  Cutting off extra expenses and investing money in mutual funds, digital gold, etc. Helps in saving money. How much should I save every month?  Saving 10% - 20% every month should be the goal so that in long run you will be saving more. Is investing money a good way to save more?  Investing money is a good way to save more but it’s an individual’s own choice to invest or not. But now, it’s a proven method to save money by investment.
Living expenses in Canada for Indian students

Living expenses in Canada for Indian students

Living expenses in Canada for Indian students are very high and aspiring applicants need to be aware of them before traveling abroad for the desired study course. Canada is the preferred study hub because of its growing economy, cultural diversity, access to seamless medical care, and unlimited job opportunities.  The country is known for its excellent education system, distinctive curriculum, numerous study courses, and reputed colleges and universities. A promising future encourages Indian students to travel to Canada for higher studies but what about the living expenses?  There has been a lot of speculation about the living cost in Canada hence let us find the answers to the queries related to the cost of essential expenses. Living expenses in Canada for Indian students The average living expenses in Canada for Indian students vary between 15,000 CAD (nearly INR 8.9 lakhs) – 20,000 CAD (nearly INR 11.9 lakhs) every year based on individual lifestyles and different cities across the country.  The essential living expenses that an Indian student has to incur include- 1. Accommodation (average monthly cost) The most popular options for accommodation are dormitories which house many students and townhouses which house three to six students. Both on-campus accommodations have several facilities like hot water, internet, and heat. Other popular choices are shared apartments and unfurnished rental apartments. The average monthly living cost of the accommodations is-  Dormitories 350 CAD – 600 CAD (nearly INR 20,958 INR 35,928)Townhouses 250 CAD – 650 CAD (nearly INR 14,970 - INR 38,922)Shared Apartments 400 CAD – 800 CAD (nearly INR 23,942 – INR 47,904)Unfurnished Rental Apartments300 CAD – 500 CAD (nearly INR 17,964 – INR 29,940) Master's vs. PGDM in Canada? Read More 2. Food (average monthly cost) It is easy to get an estimate of food expenses by going through the rates of some of the most common food items. Water (1.5 liters)1.84 CAD (nearly INR 110)Rice (1kg)3.74 CAD (nearly INR 224)Apple (1 kg) 4.24 CAD (nearly INR 254)Cheese (1kg)12.99 CAD (nearly INR 778 )Milk (1 Liter)2.46 CAD (nearly INR 147)Eggs (12)3.63 CAD (nearly INR 217) How to finance a child's master's in Canada? Read More 3. Transportation (average monthly costs) Students use public transport in Canada as it is quite safe and easy to navigate. You can get student discounts by showing your student ID card. The average monthly costs of using some of the common modes of transportation are –  Bus 100 CAD – 150 CAD (nearly INR 5,988 – INR 8,982)Subway65 CAD – 99 CAD (nearly INR 3,892 – INR 5,928)Taxis per km40 CAD -50 CAD (nearly INR 2,395 – INR 2,994) Canada University Fee Structure Read More 4. Health Insurance (average annual premium) Every international student must have a health insurance policy in Canada. The coverage depends upon the province where one lives. Some popular medical insurance plans with their costs are BC MSP Program74 CAD/month (nearly INR 4431)iMED 225 CAD for 3 months (nearly INR 13,473) 5. Miscellaneous (average monthly cost) It is important to factor in personal expenses like clothing, laundry, toiletries, etc. which are part of everyday spending and depend upon an individual’s lifestyle.  Other important expenses include Electricity (average monthly costs) – 50 CAD (nearly INR 2,994) Phone bill - (average monthly costs) – 40 CAD – 100 CAD (nearly INR 2,395 – INR 5,988) Internet (average monthly costs) – 30 CAD – 50 CAD (nearly INR 1,796 – INR 2,994) Tenant’s Insurance (average monthly costs) – 15 CAD – 30 CAD (nearly INR 898 - INR 1,796) Cost of living in some of the cities of Canada The cost of living for Indian students depends upon their lifestyle and the city they live in. Some of the popular and most costly destinations for students and the average cost of living in that city are mentioned below- City The average cost of living every yearToronto37,000 CAD (nearly INR 22 lakhs)Montreal 25,000 CAD (nearly INR 14.9 lakhs)Ottawa20,000 CAD (nearly INR 11.9 lakhs)Calgary26,904 CAD (nearly INR 16.1 lakhs)Vancouver38,484 CAD (nearly INR 23.08 lakhs) 10 Tips to save money in Canada 1. Try to save money Save money whenever you can. If you find alternatives to doing something on your own then instead of spending it, save the money.   2. Apply for scholarships Every college has scholarships. Canadian universities offer amazing scholarships to potential students, so take advantage of them.     3. Keep a budget To save money as a student, you need to keep a budget for everything. When there’s no budget maintenance, people tend to spend more. Have a fixed budget for the month and don’t spend more than it.  4. Cook your meals University campuses are filled with food stalls and fast food joints and when you are hungry, you buy them, and then your bank balance drops.  So cook for yourself.    5. Claim student bank discounts and offers All bank in Canada has offers for students. Take advantage of them. Save every penny.   6. Buy second-hand stuff if you can You might need something but you don’t need to buy everything new. You can buy them in any second-hand marketplace and you can find anything there.  So instead of buying everything new or on amazon search it in these marketplaces.  7. Don’t use credit cards Credit users tend to spend more as they think they have enough money but you spend more than they need.  So cut them off.  8. Start doing a side hustle  Start earning!   Start doing a hustle so that you can earn more. Then you don’t have to worry much about your expenses. There are too many ways to earn more.   9. Use a bicycle If you need to travel daily and it’s a short distance then buy a bicycle instead of using public transport and spending more money.  10. Lower your party days Party is okay, everyone loves to party but don’t do too much of it too. Set a monthly budget for it.   FAQs How can I earn money in Canada? Students can work up to 20 hours per week off-campus in Canada. You can take up some internships or part-time jobs or start a side hustle. International students on a student permit are legally allowed to work and earn a living in Canada to help with finances.   What is the average living cost in Canada? The average living expenses in Canada for Indian students vary between 15,000 CAD (nearly INR 8.9 lakhs) – 20,000 CAD (nearly INR 11.9 lakhs) every year based on individual lifestyles and different cities across the country.  Is living in Canada expensive? Canada is considered one of the most expensive countries to live in. The most expensive city in the country is Toronto. How much money do you need to live in Canada comfortably? As a student, you need roughly 15,000 CAD (nearly INR 8.9 lakhs) – 20,000 CAD (nearly INR 11.9 lakhs) every year. What problem an International student can face? Problems like cultural shock, new language, new people, accommodation, money management, etc. There are many student accommodation scams and foreigner scams that you need to be aware of so that you do not end up losing your hard-earned money. Conclusion Canada is no doubt an expensive country and it is challenging to manage the education and living costs simultaneously. A well-structured financial plan can be a blessing in disguise but you need an expert who can formulate such an organized plan for you.  Knowing about the living expenses in Canada for Indian students is important especially when they are preparing for overseas education. The college cost calculator on the Edufund app takes into account the future living costs so that the students can be aware of the average total cost of studying abroad and plan accordingly. 
Difference between short-term and long-term goals.

Difference between short-term and long-term goals.

A crucial first step to achieving financial security is to set short-term, mid-term, and long-term financial objectives. But what do these goals stand for? What are the differences between short-term and long-term goals? Keep reading to find the answer. What are short-term goals? Anything that can be accomplished in less than two years is considered to be a short-term goal. Although this is a useful generalization, where to draw the line between short-term and long-term objectives is ultimately fairly arbitrary. A goal accomplished in one and a half years and one accomplished in two years and a month have no discernible differences.For instance, a short-term goal for your child’s education needs can be a laptop or a phone. You can select the best funds and a time horizon to save up for the cost and accomplish your goal easily. This is a short-term goal which means you plan to accomplish it in the next 1 or 2 years. Click here to start a short-term goal for your child’s education dreams. What are long-term goals? In contrast, anything that takes more than five years is considered a long-term goal. Long-term objectives include things like paying off a mortgage and saving for retirement. The terms "short term" and "long term," nevertheless, aren't always sufficient. Some people favor including medium-term objectives as well. These objectives usually take two to five years to complete. Despite their apparent opposition, the two temporal periods complement one another. Long-term goals shape your short-term goals. For instance, a long-term goal can be your child’s dream college. Long-term goals generally require a long-term horizon. If you are planning to save for your child’s college then starting 10-15 years in advance is the right way to go. This gives you enough time to save up and make the right corrections over the years to get the right amount by the time they go off to college. Use the college cost calculator on the EduFund App and start saving for your child’s long-term goals! Key short-term goals Your more pressing expenses are those for short-term aims. These are the things you'll often spend money on within a few months or years, though timing varies. The following are some top key short-term goals: 1. Establish a Budget By reading through your bank statements and bills from the previous few months and classifying each item with a spreadsheet or on paper, you may make a budget the old-fashioned way. You can decide better where you want your money to go in the future when you can see how you are spending your money and are directed by that information. You can try to find methods to eat out less frequently or save money by following certain practices etc. 2. Build an emergency fund The cornerstone of creating financial goals is an emergency reserve. If something unforeseen occurs, it's what keeps the rest of your strategy from falling apart. Without an emergency fund, one unforeseen expenditure, such as a busted water heater, medical expenses, auto repairs, or a job loss, might cause all of your other objectives to fall through the cracks. Your emergency fund has to be sufficient to pay for three to six months' worth of costs. You may wish to save even more if you are paid on commission or have a fluctuating income. Make a budget and, if necessary, cut spending so that you can afford to set aside some of your money. 3. Open a life insurance policy By purchasing life insurance, you guarantee that your loved ones will be compensated in the event that you die away and are unable to support them. A cash lump amount is often used for this, serving as a safety net to replace your income. Life insurance coverage is crucial for defending yourself and others who depend on you, much like an emergency fund. Even though nobody likes to consider the worst-case scenarios, anything may happen tomorrow. Key long-term goals It can take years or perhaps decades to accomplish these aims. Long-term objectives often require more resources and ongoing care than short-term objectives. The following are some top key long-term goals: 1. Consider your dreams Long-term objectives might also include objectives like purchasing a primary residence or, eventually, a vacation property. Maybe you already own a home and want to give it a considerable upgrade, or maybe you want to start saving for a bigger house. Other examples of long-term objectives include saving for college for your kids or grandkids, or even for when you do have kids. Once you've chosen one or more of these objectives, start estimating how much money you'll need to put aside to make progress toward achieving them. 2. Plan for retirement Retirement savings goals are among the most long-term-oriented in terms of planning. Finding out how much money you need and how close you are to that objective is the first step in this process. Then, you may reach your destination through a variety of retirement plans, which is a perfect illustration of how long-term goals ultimately need to be divided into more manageable goals. How to prioritize your goals? You'll probably need to strike a balance between a number of short-term and long-term ambitions. Plan your objectives around your regular spending, putting necessities like food and shelter first. Contributing to emergency and retirement accounts is a top priority; after paying off debt, do so. After that, you may choose how to divide the remaining funds between your demands and other savings objectives. The most essential thing is to stay consistent. Don't be upset with yourself if you have to withdraw money out of your emergency fund one month because you have an unanticipated auto repair or medical cost; that's why the fund is there. Just get back on track as soon as possible.
Cheapest Cities in the World to Live!

Cheapest Cities in the World to Live!

Even if studying abroad is pricey, there are still ways to get a top education from foreign universities for a lot less money. In this blog, we have discussed the cheapest cities in the world that are great for studying abroad. Need help funding for dreams? Connect with our loan experts! Cheapest cities in the world Following are the top cheapest cities in the world. 1. Kuala Lumpur Malaysia's capital and largest city, Kuala Lumpur, is ranked second in the world for affordability for the second year in a row. International students will pay an average of just USD 2,500 per year in tuition at one of Kuala Lumpur's five top-ranked colleges, placing the city in equal 29th place overall among the world's best student cities this year according to QS rankings 2022. A one-bedroom apartment in the city center will typically cost US$568 a month for those looking to reside there (according to Numbeo). According to the Mercer Cost of Living Survey, Kuala Lumpur ranks 141st out of 209 nations for affordability. 2. Hsinchu Hsinchu, the second city to call itself "The Windy City," can astound those of you looking for an excellent spot to study abroad (the first, of course, being Chicago). Hsinchu is a great choice for students who want to study in Taiwan but don't want to deal with the commotion of a large city, ranking 10th for affordability this year and joint 68th overall in the QS Best Student Cities rankings. With a population of 435,000, Hsinchu is one of Taiwan's lesser-known, smaller cities (as opposed to its capital, Taipei, which has over 8.6 million inhabitants). Tuition costs for international students are equal US$2,900 annually. National Tsing Hua University and National Chiao Tung University are two highly regarded universities in Hsinchu that are both listed in the top 250 of the QS World University Rankings 2022. 3. Johannesburg, South Africa South Africa's largest city, Johannesburg, also serves as the nation's financial and commercial hub. There are 11 official languages in the nation, and English is typically used to teach university courses. Johannesburg is home to two of the top universities in the nation, each of which is ranked among the top 450 worldwide. The average annual cost of tuition is $4,200 USD. A student only needs about USD 664 per month for living expenses, plus USD 465 for rent in the city center. With an annual average temperature of 21C, Johannesburg experiences warm weather all year long. There is a lot to see and do in the city, including festivals and concerts, markets for shopping, galleries, and museums to explore. Beautiful natural areas, such as Lion Park, are close to the city. 4. Budapest The capital of Hungary, with three of the world's top institutions and a population of over three million, tops the list for affordability. Budapest also ranks 43rd overall in the QS Best Student cities 2O22. Budapest will have an average annual tuition cost for out-of-country students of US$1400 (much lower than many other study destinations). In the Mercer Cost of Living Survey, the city comes in at 164th place out of 209 nations.  5. St. Petersburg There are more than five million people living in St. Petersburg, which is the second-largest city in Russia (after Moscow, of course). The city, which in 2019 was ranked 66th overall, has moved up four spots in the affordability indicator to tie for fourth place, with an average annual tuition of US$2,600 at its three top universities. According to Numbeo, this amazing city's cost of living is 28.2 percent less expensive than Moscow, the capital of Russia, which will excite students wishing to study there. Even though St. Petersburg's affordability receives the highest overall rating, the student view indicator, which shows how well-liked it is among students, has seen the most improvement this year, climbing 16 spots. Cheapest universities in the world  Following is the list of the cheapest universities in the world for international students: University of Wuerzburg Brigham Young University Florida State University University of Central Arkansas Brandon University Bucks New University Bucks New University Osaka University FAQ Can underprivileged students travel and study abroad? You can always apply for international scholarships if money is tight. Additionally, you want to submit applications to several economically sound or cost-effective nations, including Germany and Canada, which feature colleges with cheaper tuition rates. What nation offers free education? Many nations, including Denmark, Iceland, Finland, Norway, and Sweden, have possibilities for a free or discounted education Is college in the USA affordable? The United States has long been regarded as one of the most expensive places for overseas students to pursue higher education. However, students can locate colleges that provide high-quality instruction at reasonable costs. We hope that this blog gave you some insight into the most affordable cities in the world for foreign students.
Mutual fund vs Girl child schemes

Mutual fund vs Girl child schemes

Which is the better investment option for a daughter -  MFs or girl-child schemes?  Indian parents are often on the lookout for the right kind of investment schemes that will lessen the financial burden of education and marriage expenses of their girl child. They want to safeguard their child’s future and hence try to create a financial corpus as security for the days to come.  Before entering into a discussion about MF vs Girl Child Schemes, let us know about each of them in brief. What is Mutual Fund or MF? Mutual Fund refers to investment vehicles that accumulate money from several investors for buying a portfolio of various securities. The portfolio includes several options like real estate, bonds, stocks, or a combination of different investments.  Investing in mutual funds is considered beneficial in recent times because of the high returns on investment. The most common drawback of a mutual fund is the high fees of the investor but this can be mitigated by choosing the right investor.  You can take the help of the EduFund App to reduce excessive charges with the help of saving experts.  What are Girl Child Schemes? Girl child schemes are investment plans that offer benefits to the girl child. These are divided into two categories: State Government Schemes and Central Government Schemes. Some of the highly popular ones are Sukanya Samriddhi Yojana, West Bengal Kanyashree Prakalpa, and Dhanlalakshmi Scheme.   The girl-child investment plans help parents to accumulate money so that it can later meet the financial requirements of the girl child. Mutual fund vs Girl child schemes Both Mutual funds and Girl Child Schemes serve the same purpose and that is to act as investment vehicles. Parents often take the help of either of these or both to create an appropriate portfolio that will be able to meet the desired needs of their girl child.  Let us make comparisons and also see the difference between the two based on certain parameters. 1. Interest rates Both schemes offer higher interest rates that lead to more savings. Girl child schemes generally offer a return of 7% to 8.6% whereas mutual funds offer returns of 12% to 14% easily in the long run.  2. Saving on taxes Gains on equity funds, LTCG, ELSS, and dividends received on mutual funds can be claimed as tax-exempt as mutual fund investments up to INR1.5 lakh per annum are under tax deduction. All the girl child schemes are exempted from tax to benefit the girl child. 3. Low minimum investment  Both schemes have the option of low minimum investment. Some investors have waived the minimums and individuals can now invest as low as $1 or INR 100. There is already a fixed minimum value for a girl child scheme be it INR 200 0r INR 500 or INR 1000 and investors have to start with that amount only.  The Edufund App gives its investors the option of starting mutual fund schemes or SIP at INR 100 only.  4. Terms and conditions The terms and conditions of the girl child schemes are straightforward with no room for any assumption. Mutual fund schemes are subject to market change and should be read properly by investors.  5. Limitation of amount The minimum and maximum amount of investment in girl child schemes are pre-decided and you cannot go above or below the said amount. Mutual funds on the other hand give the option of deciding the minimum and maximum amount by yourself as per your ability.  6. Flexibility Girl child schemes do not offer any flexibility whereas investors can choose from a broad spectrum of mutual funds schemes.  7. Premium In several girl-child schemes, the premium is waived off in case the policyholder dies prematurely, whereas that is not the case with a mutual fund. 8. Safe and secure Although mutual funds are considered safe investments with greater returns, in the long run, girl-child schemes are a better option for conservative investors who are more concerned with the safety of their investments than high returns.  9. Partial Withdrawals Several girl child schemes allow investors to withdraw partially after a specific period but mutual funds schemes have a specific lock-in period and cannot be withdrawn partially.  Conclusion In the discussion between MF vs Girl Child Schemes, both the schemes are meant to benefit the investor at the end of the day. If the investor is ready to take a certain amount of risk with their investment then they can create a financial corpus of a good amount through mutual funds. But, if they are looking for a safe investment vehicle then girl-child schemes are the best option. Consult an expert advisor to get the right plan TALK TO AN EXPERT
Top 15 Useful Gadgets for Students

Top 15 Useful Gadgets for Students

Education can be a costly affair not only in terms of tuition fees but also the add-ons like different gadgets for students only add to your cost of living alone. Electronic gadgets form an important part of such expenses but there are some gadgets to make your student's life easier. Being informed about which gadgets serve your educational needs can be helpful in deciding if you need a laptop or a smartphone. In the long run, you don’t want to make investments you might regret later. You also want to take note of the following gadgets as expenses to consider while applying for an education loan.  Gadgets for students 1. Smartphone or Tablet  Gone are the times when a mobile phone was solely seen as a source of distraction for students. These days a smartphone is one of the primary requirements. Be it, online classes, watching educational videos, accessing your email account, or simply surfing the internet, a smartphone is a go-to.  An alternative to smartphones is tablets which come with slightly bigger screens and better resolutions. For example, an iPad will have a higher aspect ratio than an iPhone. This means that the iPad will have more resolution and screen size than the iPhone. But it also means that an iPhone is more compact as a device as compared to an iPad. While purchasing either, you are required to make the right choice by weighing it against your requirements.   https://www.youtube.com/watch?v=tdwqQH0xkFw 2. Laptop or PC Unlike earlier, everything that can be accessed through a computer is also accessible through smartphones. However personal computers are favored over smartphones because of the experience they offer. A personal computer might comprise a monitor, CPU, keyboard, mouse, speaker, webcam, internal hard drive, and so on. Although these gadgets have to be purchased separately and can take up considerable space. But it is a good investment if you are a student because it creates a dedicated space for studying.   With laptops, the experience might not be as top-notch. Nevertheless, Macbooks are popular amongst students because of their compact design and the convenience of portability. A laptop works wirelessly and comes with a keyboard, built-in speakers, a web camera, and a touchpad in the place of a mouse. It is a brilliant investment especially if you are staying away from home for educational purposes.  3. External Hard drive  Nowadays every document you own can be saved up as a soft copy in cloud memory or your e-drive connected to your email account. This helps you take up less physical space with your studying materials. Even so, owning an external hard drive is a smart move if you want to be extra careful about preserving all of your materials.  An external drive allows you to access your documents easily without taking up much of your study space or the internal space on your device. All you have to do is connect the drive to your laptop or PC. Another attractive feature of an external hard drive is its portability.  4. Noise Cancellation Headphones  Headphones have existed as a wanted product in the market for a long time. One of the new features that have caused a terrific comeback for headphones is its noise cancellation. As the name suggests, noise-canceling headphones are meant to block out all of the external noise not only while listening to an audio clip but also during recordings or incoming and outgoing calls. The level of concentration a student can achieve is always considered a virtue that helps them excel in academics. Noise-cancellation headphones can help them attain that level of undivided attention which is also a requirement for online classes that have become the trend during the pandemic.  5. Printer  Even though many new and cool gadgets have flooded the market, printers shall never run out of fashion. If your subject or the academic course you have enrolled in requires you to get things printed regularly, going to a shop to get it done makes no sense.  Well-known brands like Epson, HP, Brother, Samsung, and Canon have introduced a range of budget printers to the market in recent years. By purchasing one of these, you would not only save up on your daily expenses but also preserve your precious time. In fact, having a printer at home can come in handy during emergency assignment submissions.   6. Electric Kettle & Emergency Lamp As a student, you might be required to pull all-nighters frequently. Even if that is not the case, staying up late might simply be part of your daily study routine. In such circumstances, gadgets that can make your life easier are electric kettles and emergency lamps.  Make yourself a cup of coffee or tea if you feel drowsy. You are no longer required to leave your study table to go to the kitchen as long as own an electric kettle. An emergency table lamp will come in handy if you are sharing your room with a fellow student or living in a dorm.   7. Kindle  Kindles will never run out of favor among students as long as academics is about gathering knowledge by reading books. A Kindle is an e-reader manufactured and sold by Amazon. One can read not only e-books but also e-magazines and other such digital content on this wireless gadget.  Call it a side effect of globalization, but nowadays students are required to keep moving from one location to another during different stages of their education. As such, a Kindle is an indispensable gadget - it is the alternative to carrying hard copies of bulky books. Moreover, it comes with cool features like a highlighting tool and sometimes a waterproof body. Dictionaries will be at your disposal while reading if you have them downloaded on your Kindle. You will not be required to carry a dictionary everywhere you go, as long as carry your books in your Kindle.    8. External Batteries & Portable Chargers   Being a student means you will require safe-to-use and convenient gadgets to charge devices like your phone, laptop, tablet, speaker, and so on. A range of portable chargers has been developed in recent years by reputed companies to make life easier. The concept of clutch batteries or chargers that are the size of a clutch or purse is becoming increasingly popular in this era of digitization.    For students who depend on rigorous online activity as part of their academic curriculum, these allow them to charge their devices wherever they are. For charging devices iPhones, special external batteries like the Ubio Labs Shadow Series have been developed which are not only easy to carry but also stunning to look at. 9. Rocketbook Everlast smart reusable notebook  Rocketbook is a digital notebook for all those who love to write over typing. It is a useful and affordable gadget for students who have trouble taking notes on their laptops and need a notebook that can be reused and even used later to add transfer notes digitally.   It’s a popular and efficient product for college students, school students and even working professionals.    10. Anti-theft laptop bag   Want to protect your expensive laptop then get an anti-theft laptop bag to ensure maximum security for your gadgets as a student. It is an affordable bag. bag rucksack and helps you protect your precious belongings at school or college from theft.    11. External hard drive  An external hard drive is a must for every student. It helps you store all your data safely. If you are a student who uses a lot of storage on your laptop for photos, videos, college projects, or freelance work – this is the right gadget for you. It helps you protect your data from a virus on your laptop or in the event your laptop breaks down.   Hard drives come in different capacities and based on that; the product has different price points.     12. Laptop tray with fans  A laptop tray is a great addition to the list of gadgets students need. It cools down your laptop and ensures your work is not hindered because of an overheating laptop or sudden shutdown because of overuse. Make you get a laptop tray the size of your laptop.   These trays are portable and let you work on your laptop without any disturbance.     13. Folding Bluetooth keyboard  A folding keyboard is great for students who do not have a laptop. You can attach it to your phone or tablet and type away your notes or do-to lists. It's lightweight, easy to carry, and connects with your laptop, phone, iPad, or tablet with ease.   It is a great alternative for students who do not have to buy a laptop but need a writing keyword to type their assignments and projects.    14. Wi-Fi range extender  The Wi-Fi range extender is a great product for students. The Internet is man’s new best friend and a student’s savior during college. Good Wi-Fi can help you with your workload. A range extender can cover your entire house or apartment, you do not have to sit in a particular corner to get the best service.    15. Portable phone charger  Student hours are long and tiring. You may not always have a battery on your phone or a plug to charge it quickly. That’s when a portable charger comes in handy, you can charge your phone while traveling, during class, or in a car.   It is a must-buy gadget for students and working professionals.   Conclusion Choosing the correct devices to make your student's life easier should not be a taxing chore. Make sure to devote time to saving up beforehand for each investment. Having funds dedicated to such purchases and knowing what you should purchase can make your student's life not only easier but also fulfilling. FAQs Which gadget is best for students? Here are some gadgets for students that make their lives easier: Smartphone or Tablet Laptop or PC External Hard drive Noise Cancellation Headphones Printer Electric Kettle & Emergency Lamp Kindle External Batteries & Portable Chargers Rocketbook Everlast smart reusable notebook Anti-theft laptop bag External hard drive Laptop tray with fans Folding Bluetooth keyboard Wi-Fi range extender Portable phone charger Why are gadgets useful for students? Gadgets serve many purposes; they make our lives easier, help us stay connected with the world, and make significant life decisions. From helping with homework to traveling the world, gadgets are useful, for students for education, learning, and life experiences. What are some fun gadgets? Here are some fun gadgets for students: FitbitSmartphone or TabletLaptop or PCNoise Cancellation Headphones
How to invest in US stocks on EduFund?

How to invest in US stocks on EduFund?

In today's age, we as Indian consumers, use Google, Microsoft, Starbucks, Netflix, and Spotify in our day-to-day lives. Some of the world's largest companies are based out of the US. These are high-growth companies listed on the US stock exchange. Why should you invest in US stocks?  Here is why you should invest in US stocks:   Exposure to global companies: By investing in US stocks, you get exposure from Tech Giants like Google and Apple to the most prominent brands like Nike, Starbucks, etc. These companies have a global presence and are known worldwide. Investing in such companies helps you expand your portfolio.  Fractional shares: Currently, the cost of one Netflix share is $224, roughly ₹18,216.95. This makes investing in US stocks very expensive if one buys whole shares. But fear not! US stock offers the concept of investing in fractional shares. In case you have ₹10,000, you can invest the whole amount across different shares fractionally instead of buying whole shares.  Portfolio diversification: Many global factors, like geo-political tensions, budgets, oil price changes, etc., have a significant impact on any country's economy and market. By having optimized diversification, your portfolio can absorb market volatility efficiently.  Currency hedging: The US Dollar has been on the rise for the past five years. By investing solely in the Indian market, you are missing out on the opportunity of a USD rise. While investing in US stocks, you are purchasing US Dollars. When these investments are held for long investment horizons, your investment value increases in terms of currency with an increase in the USD rates.  Steps to create your US Account on the EduFund App  Open the EduFund App or the EduFund website.  Click on the top left corner where your initial is mentioned.   Then select the US Account set up option. You'll be able to view the charges and pricing page, where we do not charge you anything for the US ETF account creation. Kindly go through the other charges carefully.   Click on Continue. It will ask you to fill in your personal details, attach your ID (PAN) and address proof (Aadhar), Bank details, etc.  Agree to the terms and conditions and disclaimers after reading it, and attest that the information provided by you is correct.  Then click on Create Investment Account.  Once the verification process is completed, your US account will be created Steps to add funds to your US ETF account  All residents can transmit up to $250,000 per financial year (April – March) for any permissible current or capital account transaction, or a combination of both, under the Liberalized Remittance Scheme (LRS).  ICICI, HDFC, IDFC, and Kotak bank account customers can complete the LRS process online by logging in and following the fund transfer instructions.  You can choose one of two alternatives when transferring funds using LRS on our platform.  Online transfer – via your net banking  Offline transfer – Visit the bank and submit the A2 form How to add funds?  Log in to the app and click on Add Money for detailed instructions to add funds from your domestic bank account to your US ETF account.  Online mode: -  Proceed to your bank's Net banking and log in with your credentials.  Go to Fund Transfer Tab and select Add a Beneficiary. Select the Remit Now option.   Add the beneficiary details (you will find this on the app itself).  Click on Continue and select Confirm to add the Beneficiary.  Complete the OTP Verification to complete the addition of the Beneficiary.  Depending on the bank, the Beneficiary takes around 30-45 mins to be added.  Once the Beneficiary is added, select the Fund Transfer tab and click on Go in Remit Now.  Then choose your account and select the Beneficiary name entered above.  Scroll down and enter the Transfer Amount in USD and other details.  Then enter the account ID (starts with 6BE) (find it in EduFund’s profile section under US Account Set up) in the Sender to Receiver’s Info.   After reading it through, check the Terms and Conditions box to agree.  Complete the OTP Verification to initiate the transfer.  The fund transfer takes around 3-4 business days to reflect under the available cash balance on the app.  7 steps to invest in US stocks   Open the EduFund app.  Select the Invest option from the icons in the horizontal bar present at the bottom.  Select US Market on the top. (On this screen, you'll see the top US Stocks and the US ETF Baskets.)  Select the stock you want to invest in and tap on buy. If the stock you want to invest in is not on the screen, click View All and use the Search bar to search for your desired stock.  You’ll be able to see the Price and Available cash balance in your US Account.  Now under this, you’ll be able to see Market Order and Limit Order.  In limit order – it'll ask you Share to buy, Limit price, Duration and Estimated amount.  The market order will ask you Share to buy and Dollar to buy (amount of dollars you want to invest).  You can click on Place order after entering the above details.  Always choose an investment instrument suitable for your portfolio and aligned with your investment goal and risk appetite. Before taking exposure to US stocks, fundamentally analyze the companies so that investments are safe. Nevertheless, consult an expert to know the right investment option for you.  You can reach out to us on EduFund Customer Support for further queries, doubts, or guidance.  TALK TO AN EXPERT
How to save money with a 20000 salary?

How to save money with a 20000 salary?

In India, most people earn less than Rs 20,000 a month, and in such a high inflationary environment, it becomes challenging to save money from your salary. Saving is as important as meeting your current needs; it helps you prepare for your future goals and save for an emergency. Let’s find out how to save money with a Rs. 20,000 salary in India!   Developing a habit of saving may be difficult for many salaried people, but in the long run, it can be very beneficial. It not only helps you accumulate wealth, but also teaches you to budget your needs, and expenses, save on unnecessary expenses, and allows you to make the most of your hard-earned money.  Whether you earn 20,000 or 2,00,000, investing and saving a percentage of this income is a habit thousands of millennials and Gen Z are picking up gradually. Ways to save money with a 20000 salary 1. Make a monthly budget before each paycheck Making a monthly budget will help you keep track of where your money is going and control your expenses. Making a monthly budget will help you to categorize your monthly spending. This will help you to avoid overspending, and you will be able to save some money from your monthly salary. 2. Try to clear debt with high interest rates If you have taken any loans, then try to pay off debts with the highest interest rates first. If you have not taken any loans, then try to avoid taking any fresh loans. For instance, a personal loan attracts huge interest. One should always avoid taking it into consideration. 3. Cutting down on monthly expenses You can cut down your monthly expenses in many ways, like lowering the expenses, credit card spending, electricity, mobile recharges, entertainment expenses, avoiding outside food, prudent grocery shopping, transportation, etc. By saving a few bucks from each category, you can actually save a lot of money. 4. Start investing your savings Just saving money will not help in any way until you invest it in the right asset class. If you are just saving and not investing, then your money is losing its value with time. So, investing becomes the most important part of your savings. In investing, the most critical factor is time. You need to start investing as soon as possible. You can also start your saving and investing journey with just Rs 500. The idea is to start early, even with a small amount of money. 5. Cancel unused subscription You might have taken subscriptions from different websites like Netflix, Amazon Prime, etc., but you are not using those monthly. So, you can cancel all your unused subscriptions and save a couple of bucks every month. How to save 50 lakhs for a child’s bachelor’s in New Zealand? Read More 6. Avoid late fees Avoid late fees on loans. Avoiding late fees can help plan your expenses and become systematic, and you can save money. A late fee is an extra expense that might not be planned or part of your budget. 7. Prudent grocery shopping Grocery is a must for every household and is important. One can save money in grocery buying in different ways like one can go for bulk shopping so that it will reduce the per unit cost. Another way could be to get a shopping card which allows a discount on monthly grocery shopping. 8. Shop during sales Shopping during times of sales will definitely be going to help you save money. During sales like Diwali or summer, you can find heavy discounts on clothing and other accessories. 9. Avoid impulsive buying Impulsive buying means an unplanned decision by a consumer to buy a product or a service. So, one needs to avoid impulsive buying, and if you make an unplanned decision, this will increase your unnecessary expenses. And you will end up buying things which are not important. 10. Pay yourself first Remember to pay yourself first. Do not compromise on your health; upgrade your skills, and reward yourself first. Always remember your health is wealth. Conclusion By following the above-mentioned steps, you can start saving early and develop an investment plan. Don’t wait for your salary to increase to start saving, even if your salary is low, you can start as small as Rs. 500 every month and watch how this small amount grows. Budgeting and saving small sums of money can make a huge change in your savings habit, meeting future expenses, etc.  Just ensure that you analyze the benefits of your spending. Make short-term goals to help you save money. If you save today, then you will be able to tackle any kind of emergency in the future.
Short-term vs long-term savings for a child’s education. How to build them?

Short-term vs long-term savings for a child’s education. How to build them?

Short-term vs long-term savings for your child’s education is a common dilemma for parents who are trying to secure their child’s dream via quality education. Nothing is more important than a kid’s future, and education can open doors of opportunities for better personal and professional life.  Parents have to create proper education plans to deal with the rising cost of education. They have to save and invest promptly in worthy investment schemes that will yield the highest possible returns.  Which of the investment schemes is better, where should one invest, and is short-term better than long-term savings or vice-versa are important questions that need to be answered before creating an effective educational plan for your child’s higher education?  Let us identify the differences between short-term vs long-term savings based on different parameters to understand the purpose they can fulfill. Difference between short-term vs long-term savings 1. Meaning Short-term savings are used mostly to deposit excess funds for a shorter period. These are highly liquid and predictable schemes that can meet any unexpected future expenses. The long-term savings, on the other hand, cannot be easily liquified, nor can they meet any unexpected expenses.  2. Goal-based The short-term investment is created to meet immediate savings goals, whereas the long-term investment is created to meet long-term savings goals.  3. Tenure The timeframe of short-term and long-term savings plans vary as the former is for a small duration that lasts between 0 – 1 year, and the latter is for a longer duration as the investment tenure lasts for 5 years or more.  Additional read: Personal loan vs education loan 4. Risk and return expectations Every investment has some amount of risk and returns attached to it. It is the difference between the two financial instruments, short-term and long-term, that determines the amount of risk and return expectation.  Short-term investments show a lower risk for capital preservation and stable return expectation, whereas long-term investments show a higher risk incurred over a longer tenure in expectation of capital growth. 5. Purpose  The purpose of the investment matters a great deal. If you are in the later stages of the investment horizon, and it is time for withdrawal, then it is better to gradually stop long-term investment schemes and shift them to short-term savings like FDs and debt instruments. The purpose is to make the investments safe and secure, as short-term savings are considered safe compared to long-term savings schemes.  Thus, when the purpose of the scheme is principal protection, then short-term savings plans are the best option, but if the purpose is high returns, then long-term investment schemes are the better options.  Additional read: How to set financial goals? 6. Investment vehicles Investment vehicles to achieve short-term goals are savings accounts, FDs, treasury bills,  Gilt funds, and debt mutual funds. These are safe and secure vehicles with very low risk. Whereas the vehicles to achieve long-term goals are real-estate, mutual funds, ETFs, and equity/shares with high risks.  Choose from an option of 4000+ direct mutual funds and take a SIP for as low as INR 100 on the EduFun app if you are interested in saving for your child’s education. The app also offers the best US ETFs for a child’s education as well as ELSS funds that help parents in saving tax while investing in their child’s education corpus.   7. Rate of interest The interest rate for a short-term savings plan is less than that of long-term plans. A savings account offers an interest rate between 3% to 4%, whereas the rate of interest for an FD is 5% to 7%. The rate of interest for long-term schemes like mutual funds is way high as it shows an estimated return between 12% to 16%. Equity-oriented mutual funds with a holding period of more than 3 years generate nearly 15% returns.  8. Power of compounding The power of compounding makes the long-term investment yield higher returns, whereas short-term investments are unable to take advantage of the compounding power to the fullest.  9. Accessibility Short-term savings plans are easily liquified and accessible, whereas it is difficult to break the long-term schemes. Although the interest earned is small on the short-term savings plans, it can be withdrawn at any given time. The long-term savings plans, on the other hand, are more or less fixed for a definite tenure. In some cases, the investor can withdraw a part of the savings after a definite tenure but withdrawing the full amount is a bit trying.  Conclusion Short-term and Long-term savings plans are equally important to create an education corpus. It is important to note that a proper education plan must cover both short-term and long-term investment schemes. The right balance will yield some of the best possible returns to help parents to fulfill their child’s desire for a good education. Consult an expert advisor to get the right plan TALK TO AN EXPERT
How to start sip investment on the EduFund app?

How to start sip investment on the EduFund app?

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
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