Tag Archives: financial literacy

Building wealth in today's world is everyone's dream. If you are planning to invest for long-term financial goals, then equity mutual funds are the best option to opt for as they have and can outperform many other asset classes like gold, fixed deposits (F.D.s), etc., over a long period. But equity mutual funds can be unpredictable in a short duration. But if you remain invested for longer, it delivers good returns. There are many strategies to build wealth, but there's no fixed formula for it. Steps to create wealth by investing through mutual funds 1. Define goals and horizons  When you want to create wealth, always set an achievable target and time horizon. This process will make your investment journey realistic and manageable. Everyone has financial goals such as retirement, a child's higher education, a house, etc. If we set a target amount for each goal and the time to achieve them, then the process of wealth creation will become effortless. Your financial goals should be S.M.A.R.T., i.e. specific, measurable, achievable, realistic, and time-bound. 2. Invest as per risk appetite Calculate your risk appetite using a questionnaire; many are available on the internet. See under which category you fall, whether it is a high risk, average risk, low risk, etc. Then accordingly, choose your asset class to invest in. Don't fall for attractive or high returns; remember, high returns come with high risk. Every mutual fund serves different purposes and has different risks that can be measured. 3. Identify funds After setting goals and calculating your risk appetite, identify funds to invest in. Do proper research to select suitable funds to meet your goals and objectives. If you don't know how to evaluate mutual funds, consider taking help from the experts because a wrong decision might lead to lower returns than anticipated. There are various categories of mutual funds available in the market, and not every fund suits your requirement, so do proper research and then select the right one. 4. Create a focused portfolio After selecting the funds, create a focused portfolio for each goal. It will help you track your funds' progress towards your financial goals. While creating a focused portfolio, consider some essential points like giving your portfolio proper diversification, including multiple asset classes if required, etc. Also, remember quality over quantity while creating your portfolio. 5. Regular investment through S.I.P  Consider investing regularly in these funds to make your investments more affordable and disciplined. S.I.P. (Systematic Investment Plan) helps you to give an option to invest in a small amount regularly, which could be done weekly, monthly, quarterly and yearly. Regular investing will make your portfolio grow more stable as you will buy mutual funds units at higher and lower prices. The best advantage of investing through S.I.P. is cost averaging. 6. Make a lumpsum investment Try to make a lumpsum investment whenever possible, like when you get bonuses or profits. This way, you can achieve your goals before the target date. Let's understand this with an example, suppose you are investing Rs 15,000/month for ten years, and the expected growth rate is 13% annually. The wealth you will be accumulating is Rs 37 lakhs, but after one year, you put a lumpsum of Rs 50,000/-, then you will be able to accumulate the same amount before ten years, or you can accumulate Rs 39 lakhs after ten years. Consult an expert advisor to get the right plan TALK TO AN EXPERT

If you want to become financially secure, it is extremely important to set short-term, mid-term, and long-term financial goals. Even if you plan everything, you cannot be fully prepared for a crisis that may come up anytime. The unexpected bills are the main reasons which affect our financial goals.   Ways to set financial goals 1. Establish a budget  Determining a particular amount of budget is the first and most important thing. You should have a clear idea of where you stand and how you can proceed forward. Money tends to slip through the cracks in the pockets of individuals. You can download an app that can track all of your expenses. Moreover, you need to have the information from all of your accounts in one single place so that you can conduct a proper analysis of the same.   In due course of time, you will realize that the small spending that you do in the canteen every day might add up to a considerable amount. Once you get an idea of how you spend, you will be able to track and save your expenses.  2. Categorize your financial goals  Proper categorization of your financial goals will help you target your orders. This should be the basic rule when you are proceeding toward your financial goals. It should be broadly divided into short-term, mid-term, and long-term financial goals. When you are setting up your long-term goal, you need to keep in mind all the targets that you have for the short term.   Start by listing all of your routine non-negotiable expenses that are involved. The amount that is left after all the expenses are over goes for investment. You have to make sure that you have set down the goals with an estimate of their costs. Make wise decisions when you are choosing different investment options. For this, you will have to figure out the amount that you need to keep aside monthly for investment. Additional read: Financial mistakes to avoid 3. Deadline for each goal  When you have set the categories of different types of financial goals, start setting deadlines for each of them. Long-term financial planning should be followed religiously. There can be minor changes that can be made to short-term goals. Suppose you have a child who will start going to college by 2035, then you should start saving and investing accordingly with a deadline in mind. When the deadline arrives, you must be ready with the funds that will be required for your college education.   Next, if you plan to take a trip to your favorite luxurious destination, start saving and investing with a specific deadline that has to be followed at all costs. You can keep a tab on all the deadlines through a financial goals worksheet. It will also help you to analyze your dates from time to time. 4. Prioritizing all types of financial goals  With all the types of financial goals queued up, you need to start prioritizing all types of financial goals. If a situation of urgency is created, you would know which goal has to be prioritized first. Moreover, label each goal on your worksheet as need, critical, and want. This will create a distinct difference between the types of priorities that you keep for your finances. 5. Clear off your debts and build an emergency fund  Clearing off your debts will help a lot to streamline your entire financial planning. First and foremost, take a look at all of your existing debts. Make a proper plan for it and clear it off as soon as possible. Once that has been done, you can start creating your emergency fund. Your emergency fund should contain at least 12 to 24 months of your living expense which will include your loan EMI as well. Make sure that you dip into your emergency fund only if it is extremely necessary. It can prove to be extremely counterproductive on your part if you set aside this fund completely. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Rising inflation is eating your money. If you don't park your savings in a suitable asset class that can beat inflation, then with time, the value of your savings decreases. Basically, with time, the value of the currency decreases. For example, in 2002, you could buy 20 apples for Rs 100, but in 2022, you can only buy two apples for the same Rs 100. So, you must put your savings in a suitable asset class to beat inflation.  Saving as a parent is essential for your child's future needs. Not only to fulfill the child's needs but also to maintain and upgrade the quality of living. Almost every parent wants to save for their children, but some fail to do that. The reasons could be that they cannot save enough, don't know where to put all their savings, etc. In this topic, we'll explain how parents can save through SIP investment. How do SIP works? SIP stands for Systematic Investment Plan, a financial tool to invest a fixed amount regularly in a mutual fund scheme. Investing regularly gives you the benefit of rupee cost averaging. This means that you buy at a low and high price and the overall cost of buying averages out. With the SIP, you don't need to time the market. How can SIP investment help parents to save? Parents can do the proper planning for their child's higher education and marriage. A financial plan will help them know how much to save for a specific goal and the amount required to save on a monthly basis to achieve the desired target. Putting a lumpsum amount for any specific goal may be a difficult task. But saving monthly could make it easy. SIP investment gives you the option to save as low as Rs 100. So, you can save and invest with Rs 100 only. With an example, let's see how much you need to save as lumpsum and as SIP for your child's higher education. Let's assume your child's age is one year old, and you want to send your kid for an MBA from IIM Ahemdabad. So, technically you have almost 20 years to save. The present cost of attending a master's degree from IIM Ahemdabad is Rs 30 Lac. And after 20 years, it might cost you Rs 1 Crore, assuming an inflation of 7% annually. Let's see how much you need to save as lumpsum and as SIP for your child's higher education. If you look at the table below, you can see that you only need to save Rs 10,000/month for your target, whereas if you want to invest a lumpsum amount, you need Rs 9 Lac for the same target. That's how SIP investment helps your little money to grow over the period and helps you to achieve the desired target. Investing through SIP can make your investment journey more affordable and efficient. Monthly SIP AmountTotal Amount InvestedAccumulated Amount ₹10,000 ₹ 24,00,000 ₹1,03,84,852Note: The calculation is done for 240 months.Source: EduFund Research Team Lumpsum Amount RequiredTotal Amount InvestedAccumulated Amount ₹9,00,000 ₹ 9,00,000 ₹1,03,33,790Note: The calculation is done for 240 months.Source: EduFund Research Team Conclusion: Investing through SIP can help parents by savings little money to make a large corpus. SIP has been the most effective way of saving and investing. Consult an expert advisor to get the right plan TALK TO AN EXPERT

A target maturity fund is a fund category with a fixed maturity date. As the maturity date gets closer, the maturity value decreases to zero, and the fund ends its existence. The maturity date of these funds is typically marked in the framework name. The regularity of target maturity funds' returns distinguishes them. Investors who maintain these funds until maturity hopes for returns connected to the indicative yields when invested. Returns on target maturity debt funds According to several fund strategists and fund planners, the emergence of bond yields will likely offer the chance for wealthy investors to acquire a 6.5% return in target maturity strategies within the next five years. They genuinely think investing in a combination of such strategies that mature between 2026 and 2028 will provide investors with superior risk-adjusted returns. Target maturity funds provide investors with a predictable return if held until maturity. Such schemes have set maturity and engage passively in bonds with related maturities, which serve as the fund's market portfolio and provide visibility of returns. When the fund matures, investors receive their investment proceeds back. They have occasional liquidity because they are open-ended, and venture capitalists can purchase and sell them at Net Asset Value (NAV). The expense ratio in direct plans is 15-20 basis points and 30-40% points in regular programs, reducing the cost for venture capitalists. Investment advisors recommend target maturity funds because speculators have been having difficulties with their fixed income investment portfolio over the last year, as bond yields have risen by 142 basis points, weakening the rate of return. Additional read: How to start investing in mutual funds? Target maturity funds are more tax-efficient With increasing and decreasing interest rates on assured financial products, numerous risk-averse speculators, who previously invested in product lines such as financial institution fixed deposits, PPFs, and NSCs, have shifted to debt funds for understandable reasons.  According to these investors, debt funds have become less volatile than general equity funds and much more tax-efficient than fixed deposits, PPFs, and NSCs, with the potential for higher returns.  However, investors are still vulnerable to the risk of default, which is the possibility of losing interest and principal payments, as well as interest rate risk, which is the risk of price volatility due to interest rate changes. TMFs offer greater liquidity than FMPs Target maturity funds (TMFs) assist investors in better exploring the risks linked to debt funds by integrating their investment portfolio with the fund's maturity date.  All those are debt funds that passively measure an underpinning bond index. Thereby, such funds' investment strategy consists of bonds that are a component of the total bond portfolio, with maturities that are close to the fund's outlined maturity. All investment returns obtained during the holding period are invested back in the fund, and the bonds in the investment are retained to maturity.  Target Maturity bond funds, like FMPs (Fixed Maturity Plans), continue operating in an accrual mode. TMFs, unlike FMPs, are open-ended and are available as target maturity debt index funds. As a result, TMFs provide more liquidity than FMPs. TMFs have a uniform portfolio in terms of duration because all of the bonds in the fund's portfolio are deemed to be maturing as the stated maturity of the fund. The fund's duration decreases over time by holding the bonds until maturity, making investors less vulnerable to price volatility induced by shifts in interest rates Additional read: What are offshore funds? Strong interest in target maturity funds Investors have shown a strong interest in Target Maturity Funds, with maturities ranging from 2026 to 2027. Financial planners recommend this maturity portion to investors for tax indexation and optimal yields. These maturities offer yields ranging from 7.48% to 7.55%. Beyond these maturities, such as 2028 and 2029, the market is relatively illiquid. Passively-managed target maturity funds The portfolio of passively managed target maturity funds is well-known because it is linked to an index of bonds of investment promotion loans, government securities, or a composite index of the two. There is also greater return predictability because the fund aims to provide returns closer to the index's yield to maturity if the investor holds the fund until maturity. Mutual funds have initiated further index-based goal maturity funds, as all ETFs may not generate enough liquidity on stock exchanges, resulting in wider deviations between the executed price and the ETF's intraday NAV (iNav). The new SEBI regulations for passive funds aim to increase retained until maturity because they provide some predictive ability of return, which is liquidity for ETFs on exchanges by stating that no transaction under Rs 25 crore could be sorted directly with the AMC. All such transactions must go through exchanges. SEBI also wants to grow the economic ecosystem by rewarding market-makers who will provide liquidity for ETFs. Conclusion Target Maturity Funds must ideally be important for investors transitioning from long-established deposit accounts to debt funds. Consult an expert advisor to get the right plan TALK TO AN EXPERT

As you look to plan your child’s career and consider their higher studies in a good institute in India or overseas, the question that most parents ask themselves is, how hard is it to get an education loan? Today, education in India has become quite expensive from the school level onwards. Given the rising inflation rate, fees across the board for higher education in reputed Indian and international universities are going up yearly. In this scenario, if you are serious about sending your child to an excellent Indian institute or abroad for higher studies, chances are high that you will be required to take an education loan. https://www.youtube.com/watch?v=4gTQkdePOWM Taking an education loan for a four-year undergrad engineering course from a private institute in India can cost you upwards of Rs. 12 lakhs in tuition fees. The same course in an international university can go up to Rs. 60-70 lakhs, with travel and stay extra. Most parents today opt for an education loan to fulfill their child’s educational and career aspirations. That brings us to the topic of this article: how hard is it to get an education loan? To understand the challenges, you must understand what the lenders look for in an education loan application. What lenders look for while reviewing education loan applications There are several education loans available, as RBI promotes these extensively. So most nationalized banks will offer you these loans. Here is the list of factors they consider when reviewing an education loan application: 1. Financial track record of the borrower and co-borrowers Especially in the case of undergraduate courses, parents as co-borrowers must have an excellent credit rating and must show the financial capability to meet the need for repayment, should the need arise. 2. Guarantor While private lenders may not ask for a guarantor, most public sector/govt lenders do. They require a guarantor, especially if the loan is for a significant amount. Again, the guarantor's credit history will be scrutinized while sanctioning the loan. 3. Collateral Public sector/nationalized banks and several private lenders need collateral to issue an education loan. The value of the collateral is worked out in light of the loan required and varies depending on the lender, but collateral is a must. Additional read: Should you opt for a personal loan for an online Master’s degree? 4. Institution of study This is another crucial aspect for lenders. Most leading lenders have their preferred list of universities and courses for which they will issue loans. So, you must ensure that the institute your child is shortlisting is on that list. 5. The academic record of the student An excellent academic record goes a long way in assuring the lender of the child’s seriousness toward education and career. It works as an indicator for them that the student will complete the course for which the loan is being given and will be able to repay the same by building a promising career. Consult an expert advisor to get the right plan TALK TO AN EXPERT

The phrase "metaverse" refers to a new virtual space arising as technology improves. It's an idea that traces its origins to 1992 when Neal Stephenson published his dystopian novel "Snow Crash," which featured characters who used 3D headgear to visit another reality. On the face, this appears to be nothing new, yet the Metaverse is expected to be a completely new approach for us to engage with the internet, known as Web 3.0.   The Metaverse is a mix of virtual reality (VR), augmented reality (AR), and three-dimensional digital worlds. The underlying concept is to give the internet a perception of presence - imagine 3D avatars and synced virtual places that everybody can share. With augmented reality glasses, you could, for example, visit a friend's virtual residence in the Metaverse or watch digital concerts and conferences.   Several large IT corporations have jumped on the metaverse bandwagon, though their perspectives vary. Facebook and other social media corporations are among the most vocal advocates today, believing that the innovation will alter how many of us socialize by the end of this century. To symbolize its devotion to the Metaverse, Facebook changed its name to Meta. The Metaverse's ambitions aren't limited to escapism and creating communal encounters. Microsoft believes that the Metaverse can make remote work more personal through Microsoft Teams. Meanwhile, video game producers like Epic Games seek to create distinct worlds that go beyond what is conceivable in the actual world. Finally, proponents of decentralized technologies assert that they can permit digital ownership and complete virtual economies.   The Metaverse offers a once-in-a-lifetime opportunity to invest. As per Bloomberg, the Metaverse's worldwide economic potential might reach $800 billion by 2024. According to Matthew Ball, CEO of Epyllion, a venture financing firm, the Metaverse is an opportunity with a lot of zeros behind it. Even if your expectations are lower, precedent from the digital economy, the internet, and mobile internet says this is a $10 [trillion] to $30 trillion opportunity that will materialize in a decade or decade and a half.   There is no such thing as a one-size-fits-all approach to investing in the Metaverse. Albeit, there are three methods for investors to get a piece of the $30 trillion pie. Additional read: How to invest in Snapchat from India? 1. Going the head-on way  Using Metaverse crypto or Metaverse cryptocurrencies, one can invest in both cryptocurrencies and the Metaverse at the same time. Decentraland (MANA), Sandbox (SAND), and Enjin are some Metaverse tokens (Enj). To invest in Metaverse in India, go to any significant crypto exchange and acquire the tokens directly. To make cash, one can exchange such assets throughout the Metaverse, earn things and services, and then redeem them in the real world. On the other hand, directly purchasing NFTs and other assets entails significant risks and volatility. Purchasing virtual land or real estate in the Metaverse is another way to invest directly in the Metaverse.   2. Investing through individual stocks with metaverse exposure   Equities of publicly traded companies participating in the Metaverse domain can likewise be used to invest in the Metaverse indirectly. The majority of the prominent companies in this field are currently listed in the United States. These could be businesses that engage in Metaverse-related activities or supply products, services, technology, or technological skills. While some companies, such as Meta, are working on high-end VR headsets, others, such as Nvidia, are working on the computational power that will power the Metaverse. Cloud service companies such as Amazon and Microsoft will play a part in the Metaverse because it will be housed in the cloud.   On the other hand, individual stock purchases will necessitate greater initial and ongoing analysis.   3. Investing in convenience  As Metaverse is still in its infancy, it's challenging to grasp the Metaverse's and enterprises' business models. As a beginner, you can invest in the Metaverse through ETFs such as the Roundhill Ball Metaverse ETF, which gives you exposure to companies that develop Metaverse infrastructure (like Nvidia), gaming engines that create virtual worlds (like Roblox), and leaders in content, commerce, and social media for the Metaverse (like Tencent). Nvidia Corporation, Microsoft Corporation, Meta Platforms Inc., Roblox Corporation, Tencent Holdings Limited, and Unity Software Inc. are among the fund's top holdings. The Roundhill Ball Metaverse ETF had 45 holdings and seven nations in its portfolio. The median market capitalization of these 45 holdings is $68 billion.  Put another way, the typical company held by this ETF will be successful and well-established. While these equities will have metaverse connections, there's a fair probability they'll also have very profitable core operations that will support metaverse research and development. If you opt to invest in ETFs, you may rest easy.   It's crucial to realize that Metaverse investments aren't for everyone. Furthermore, having a significant concentration of assets in stocks of Metaverse-related companies can be dangerous. When investing in the Metaverse, one must consider risk tolerance and the value it will add to the portfolio! Consult an expert advisor to get the right plan TALK TO AN EXPERT

Snapchat has grown very popular amongst Indians in general due to the nature of how it functions! Snapchat is swiftly becoming one of the most popular social media platforms on the Internet. Undergraduates originally designed it at Stanford University in the United States to enable the instant sharing of photographs and movies. It was previously known as Snapfish. Millions of individuals have posted millions of posts and received millions of messages since the app's introduction in 2021. This is partly because it employs a sophisticated algorithm for determining what the user wants to see and what they do not.   People are concerned that Snapchat will face significant competition from smaller social media businesses such as Hootsuite and Facebook, which explains why the Snapchat stock has plummeted thus far. Analysts who follow social and digital media are crossing their fingers that Snapchat will avoid the same fate. The concern that Snapchat will forfeit the battle to these two behemoths is also fuelling the slide in stock prices.   Some predict a comeback in Snapchat shares since consumers enjoy sharing snaps with their friends and family. Facebook and MySpace might be used to make the same point. Analysts believe there is a significant possibility to profit from the advantages that Snapchat may provide investors.  Additional read: How to invest in Zoom from India?  Let's first look at some basic stuff associated with the company. Latest market close $33.26 52-week range 24.32 - 83.34 Dividend yield  NA Earnings per share  $-0.23 Beta 1.14 Market Capitalization $ 53.148 billion Average Volume (3m) 32,658,402 PE ratio  -  There are three ways in which you can invest in Snapchat from India   1. The direct way   You can trade in Snapchat from India by registering on a US brokerage account using technological platforms that provide this service or through a foreign brokerage with a direct presence in India. To start with this, you only need your PAN card and proof of address.   Snapchat's share price was the US $33.26 on January 14, 2022, which is over 2500 rupees. However, the premium price of Snapchat shares should not stop you from investing in them because some platforms allow you to participate in fractional shares. With $1, you can buy a part of a Snapchat stock and own a piece of the corporation.   2. The ETF way   One way to invest in Snapchat stocks from India is through an exchange-traded fund (ETF). ETFs are a grouping of stocks and bonds traded as a single fund. They're comparable to mutual funds in that they're invested in a pool of money. ETFs, on the other hand, are exchanged on the stock exchange and offer a simple and inexpensive way to gain access to a category of market or a group of companies. Buying an ETF via a platform is one way to invest in ETFs.   For example, you can invest in the Vanguard Total Stock Market ETF (VTI) and Global X social media ETF (SOCL), which contains Snapchat as one of its holdings.   Another option for investing in Snapchat stocks from India is to purchase ETFs that invest in Snapchat. You don't need to create a US brokerage account to invest in these ETFs. However, tracking errors in these ETFs may influence your returns.   3. The Mutual fund way   In this case, you will be investing in funds of funds, a domestic mutual fund that invests in a mutual fund available in the United States. Since the investment would be made in Indian rupees, there is no investment restriction. Snapchat is included in several mutual funds, such as the Edelweiss' US Technology Fund of Fund but only to a minimal level. Furthermore, this strategy may prove to be more costly. An annual expense ratio will be required of you. The expense ratio of these funds is typically greater, as it includes an additional expenditure levied by the core global schemes they invest in, in addition to the usual India fund administration fee.   A note of caution here is to remember to evaluate your risk profile before purchasing any investment. Directly investing in equities like Snapchat would be a greater risk strategy for your portfolio.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Zoom Video Communications needs no introduction, especially now that the COVID-19 epidemic has arrived. People began working from their houses when the lockdown was imposed. Most of it happened over a Zoom video conference, whether a corporate meeting or your child's online education. This company's product effectively brought people from all over the world together. Eric Yuan founded Zoom Video Communications as a software start-up in 2011. Eric is the current CEO, and the company is based in California, United States. It is known for providing services like video calling and online chat services via cloud-based peer-to-peer software. As of 2021, the total number of employees is 4422. Salesforce took almost one and a half decades after going public to reach a market capitalization of $100 billion, but Zoom Video Communications took just 14 months. Zoom recently paid $14.7 billion for Five9, a NASDAQ-listed software company specializing in cloud contact centers. Zoom is one of the North American region's top 25 highest-value technology companies.   Additional read: How to invest in Netflix from India? Zoom is one of the few stocks that should be included in every investor's portfolio. Let's first look at some basic stuff before we proceed. Latest market close $109.18 52-week range 108.43 - 406.21 Dividend yield  NA Earnings per share  $4.49 Beta - Market Capitalization $ 24.902 billion Average Volume (3m) 4,317,874 PE ratio  24.24  There are three ways in which you can invest in Zoom from India.   1. The direct way   You can trade in Zoom from India by registering on a US brokerage account using technological platforms that provide this service or through a foreign brokerage with a direct presence in India. To start with this, you only need your PAN card and proof of address.   Zoom's share price was the US $108.6 on March 03, 2022, which is over eight thousand rupees. However, the premium price of Zoom shares should not stop you from investing in them because some platforms allow you to participate in fractional shares. With just $1, you can buy a part of a Google stock and own a piece of the corporation.   2. The ETF way   One way to invest in Zoom stocks from India is through an exchange-traded fund (ETF). ETFs are a grouping of stocks and bonds traded as a single fund. They're comparable to mutual funds in that they're invested in a pool of money. ETFs, on the other hand, are exchanged on the stock exchange and offer a simple and inexpensive way to gain access to a category of market or a group of companies. Buying an ETF via a platform is one way to invest in ETFs.   For example, you can invest in the ProShares Ultra QQQ (QLD) and ARK Innovation ETF (ARKK), which contains Zoom as one of its holdings.   Another option for investing in Zoom stocks from India is to purchase ETFs that invest in US markets. You don't need to create a US brokerage account to invest in these ETFs. However, tracking errors in these ETFs may influence your returns.   3. The Mutual fund way   In this case, you will be investing in funds of funds, a domestic mutual fund that invests in a mutual fund available in the United States. Since the investment would be made in Indian rupees, there is no investment restriction. Zoom is included in several mutual funds, such as the Edelweiss' US Technology Fund of Fund but only to a minimal level. Furthermore, this strategy may prove to be more costly. An annual expense ratio will be required of you. The expense ratio of these funds is typically greater, as it includes an additional expenditure levied by the core global schemes they invest in, in addition to the usual India fund administration fee. A note of caution here is to remember to evaluate your risk profile before purchasing any investment. Directly investing in equities like Zoom would be a greater risk strategy for your portfolio. Investing by convenience, i.e., via ETFs As Metaverse is still in its infancy, it's challenging to grasp the Metaverse's and enterprises' business models. As a beginner, you can invest in the Metaverse through ETFs such as the Roundhill Ball Metaverse ETF, which gives you exposure to companies that develop Metaverse infrastructure (like Nvidia), gaming engines that create virtual worlds (like Roblox), and leaders in content, commerce, and social media for the Metaverse (like Tencent). Nvidia Corporation, Microsoft Corporation, Meta Platforms Inc., Roblox Corporation, Tencent Holdings Limited, and Unity Software Inc. are among the fund's top holdings. The Roundhill Ball Metaverse ETF had 45 holdings and seven nations in its portfolio. The median market capitalization of these 45 holdings is $68 billion. Put another way, the typical company held by this ETF will be successful and well-established. While these equities will have metaverse connections, there's a fair probability they'll also have very profitable core operations that will support metaverse research and development. If you opt to invest in ETFs, you may rest easy.  It's crucial to realize that Metaverse investments aren't for everyone. Furthermore, having a significant concentration of assets in stocks of Metaverse-related companies can be dangerous. When investing in the Metaverse, one must consider risk tolerance and the value it will add to the portfolio!   Consult an expert advisor to get the right plan TALK TO AN EXPERT

Who doesn't know Google? It's the heart and soul of today's generation and will continue to do so, at least for the next few years. Google is a multinational technology firm based in the United States specializing in Internet-related services and products.    Among them are online advertising technology, search, cloud computing, and software. Google is one of the most popular search engines on the internet, processing a billion searches every day and holding a 65 percent market share.    In January 1996, Larry Page and Sergey Brin founded Google as a research project while pursuing their PhDs at Stanford University in California. They own roughly 14% of the company's stock and, through supervoting stock, control 56% of stockholder voting power. The company was incorporated and founded in 1998, with the initial public offering in 2004.   Alphabet Inc. (NASDAQ: GOOGL) is one of the world's most valuable publicly traded firms. Almost all of Google's income and profits are generated by Alphabet, the business's holding company.    Google's core business, which accounts for about 90% of its revenue, is online advertising, which it does through Google AdWords and AdSense, where it has been the global market leader for over a decade and controls the majority of global ad expenditure.    Profits from advertising are used for other sectors that have the potential to become profitable in the future. This allows Google to make large investments in technology that many companies would be unable to drive. The Google Cloud Platform, Google's cloud business, also generates revenue Let's first look at some basic stuff associated with the company. Latest market close $2638.13 52-week range 1997.88 - 3030.93 Dividend yield  NA Earnings per share  $112.23 Beta 1.07 Market Capitalization $ 1801 billion Average Volume (3m) 1,822,325 PE ratio  23.51  Ways for you to buy Google shares in India. 1. The Direct Way to Invest in Google  2. The ETF Way to Invest in Google  3. The Mutual Fund Way to Invest in Google  1. The direct way   You can trade in Google from India by registering on a US brokerage account using technological platforms that provide this service or through a foreign brokerage with a direct presence in India. To start with this, you only need your PAN card and proof of address.   Alphabet Inc's share price was the US $2,789.61 on January 14, 2022, which is over two lakhs. However, the premium price of Google shares should not stop you from investing in them because some platforms allow you to participate in fractional shares. With only $1, you can buy a part of a Google stock and own a piece of the corporation.   Additional read: How to invest in S&P 500 from India? 2. The ETF way   One way to invest in Google stocks from India is through an exchange-traded fund (ETF). ETFs are a grouping of stocks and bonds traded as a single fund. They're comparable to mutual funds because they invest in a pool of money. ETFs, on the other hand, are exchanged on the stock exchange and offer a simple and inexpensive way to gain access to a category of market or a group of companies. Buying an ETF via a platform is one way to invest in ETFs.   You can invest in the Invesco QQQ Trust, which contains Google as one of its holdings.   Another option for investing in Google stocks from India is to purchase ETFs that invest in US indices such as the Nasdaq. Google is holding the Motilal Oswal Nasdaq 100 ETF. You don't need to create a US brokerage account to invest in these ETFs. However, tracking errors in these ETFs may influence your returns.   Additional read: How to invest in NASDAQ from India? 3. The Mutual fund way   In this case, you will be investing in funds of funds, a domestic mutual fund that invests in a mutual fund available in the United States. Since investment is in Indian rupees, there is no investment restriction. Google is included in several mutual funds, such as the Edelweiss' US Technology Fund of Fund but only to a minimal level. Furthermore, this strategy may prove to be more costly. An annual expense ratio is one such expense. The expense ratio of these funds is typically more remarkable, as it includes an additional expenditure levied by the core global schemes they invest in, in addition to the usual India fund administration fee.   A note of caution here is to remember to evaluate your risk profile before purchasing any investment. Directly investing in equities like Google would be a greater risk strategy for your portfolio. Why invest in Google?  There are no doubts about the outstanding performance of Google with its services, products, and investment in new development & research. But before you find out ‘How’, you must know the ‘Why’ of buying Google shares in India.   It goes without saying that Google has an undoubtedly competitive advantage. Its sustained competitive edge makes it a secure investment.   Despite the rapid pace of Internet development along with fierce competition, Google has managed to hold a monopoly and outperformed its competition.   By the time you finish reading this sentence, Google will have received more than 3 lakh searches. This means, in a day, it receives over 8.5 billion searches. 90% of Google’s earnings and revenues come from these searches. Google funds its future projects and turns them into profit centers with these very earnings/ revenues.   Artificial Intelligence is the next step in the future technology and Google is deploying all its resources into its development.   FAQ Is it risky to invest in Google?  Keeping the Great Recession of 2007-08 as a reference, the selling pressure was affected greatly on all stocks (including Google) by falling 65% from 2007-end to early 2009. But even during this time, not only did Google continue to increase income, but it also quickly made up for all of its losses soon as the economy started expanding and the stock market stabilized.  What are some ways to buy Google shares in India?  You can buy Google shares in India directly using a US brokerage account, through US ETF, or through mutual funds.  What is the minimum amount required to buy Google shares? Although as of Jan’22, one share of Alphabet costs $2,789.61, you can buy a part of Google stock at only $1.   Consult an expert advisor to get the right plan TALK TO AN EXPERT

In today's technologically advanced world, investing in US equity markets from India is straightforward. Investing in foreign markets has become a crucial part of diversifying your portfolio. Investing in US stocks is becoming increasingly popular among Indian investors. The Nasdaq is one such stock exchange where you may place your investment. What is Nasdaq? How does it work?   Nasdaq stands for National Association of Securities Dealers Automated Quotations; in case you didn't know.    When it opened its doors in 1971, Nasdaq was the world's first digital stock exchange. There are currently three indices in it.   The Nasdaq Composite, the Dow Jones Industrial Average, and the S&P 500 are the most well-known.   The Nasdaq 100 index refers to the top 100 non-financial corporations listed on the exchange. The Nasdaq 100 firms account for more than 90% of the weighting of the Nasdaq Composite Index.   The Nasdaq Financial -100 is a collection of Nasdaq-listed financial companies What is the difference between the Nasdaq and the NYSE?   Many people mistakenly believe that the New York Stock Exchange (NYSE) and the Nasdaq are the same. That is not the case, however. The NYSE is the world's largest equities-based exchange and the oldest in the United States.    Most exchanges have abandoned the trading floor idea and now trade digitally. On the other hand, the NYSE still has a physical trading floor on Wall Street. Its data center in New Jersey is also responsible for a significant portion of the trade. Nasdaq, on the other hand, lacks a physical trading floor. Since its debut, it has been trading electronically Dealings: The primary distinction between exchanges is how securities are traded. The New York Stock Exchange is an auction-based market. This means that both buyers and sellers submit competitive bids simultaneously. A stock's current price reflects the maximum bid a buyer is willing to pay and the lowest price a seller is ready to take.   Nasdaq, on the other hand, is a dealer-based exchange. Multiple dealers list pricing at which they could purchase or sell a particular stock in this forum. The dealer, in this case, is a Nasdaq market-maker, someone who proactively transacts stocks on behalf of traders.   Both of these markets are controlled by traffic controllers. Traffic controllers generally link buyers and sellers, but their responsibilities on the Nasdaq and NYSE are distinct. As previously stated, a market maker is a Nasdaq traffic controller who proactively buys and sells equities on behalf of traders. The traffic controller at the NYSE is a specialist. He is in charge of determining the stock market's opening price, approving limit orders, and dampening interest in specific equities.   How can an Indian investor invest in Nasdaq? 1. The direct way   By opening a US brokerage account through technology platforms or a foreign brokerage with a direct presence in India, you can invest directly in the world's leading technology businesses like Apple, Microsoft, Google, Facebook, etc., listed on Nasdaq.   You must send funds to the United States to invest in US stocks. You can do this as an Indian resident under the RBI's Liberalized Remittance Scheme, which allows you to send up to US $250,000 per person per year. Stocks are intrinsically expensive because their prices are denominated in dollars. However, you can acquire fractional shares, so you can start investing in your favorite firms with as little as $1.   2. The ETF way   ETFs are another option for investing in Nasdaq from India. One approach is to purchase an ETF through a brokerage platform. One example is Index ETFs, such as the Invesco QQQ Trust, which tracks the NASDAQ 100 index. Companies including Amazon, Apple, Microsoft, Meta (Facebook), Netflix, Google (Alphabet), and Tesla are among the ETFs' top holdings.   Another method to engage in Nasdaq from India is to buy ETFs like the Motilal Oswal Nasdaq 100 ETF or the ICICI Prudential Nasdaq 100 index fund, which invests in US indices. You can trade in these ETFs without opening a new brokerage account in the United States. However, tracking errors in these ETFs may negatively influence your gains.   3. The mutual fund way   In this situation, you'll most likely be investing in funds of funds or a domestic mutual fund that invests in a US mutual fund on the Nasdaq. Since the investment would be made in Indian rupees, there is no investment restriction. This strategy, though, may prove to be more expensive. An annual expense ratio will be required of you. These funds' expenditure ratios are often higher.    As we've seen, there are numerous ways to invest in Nasdaq and join the world's second-largest stock market from India.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Friends, Ghoul, Sacred Games, The Office, etc., are some shows which have been seen and relished by the people here in India. One common thing about these shows is that all are available on one platform, Netflix. Since its debut in India, Netflix has become the biggest OTT platform!    Netflix, Inc. is an American provider of over-the-top media services based in Los Gatos, California. The company's core business is its subscription-based streaming service, which allows online streaming of a library of films and television programs, including those created in-house. It was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. Netflix's corporate offices are at 121 Albright Way in Los Gatos, California. In addition to the United States, they operate offices in the Netherlands, Brazil, India, Japan, and South Korea.   There are various reasons why Netflix is the most popular streaming service. Netflix offers a superior recommendation system that advises what entertainment to watch based on popular shows, general viewer interest, and specific shows the user has previously enjoyed. Netflix tests these algorithms with its consumers and makes improvements as needed. In addition, data mining aids Netflix in recommendations. Netflix also took a risk by investing in original content production. Still, it paid off because some of the most famous and successful shows in recent years have aired on Netflix rather than on more established networks. Netflix has been able to maintain a dedicated following and a competitive edge due to this.   Netflix is one of the few stocks every investor should consider. Let's first look at some real stuff before we proceed.  Latest market close $371.73 52-week range 351.46 - 700.99 Dividend yield  NA Earnings per share  $10.68 Beta 1 Market Capitalization $ 164 billion Average Volume (3m) 7,295,226 PE ratio  33.88  Three ways to invest in Netflix from India  1. The direct way   You can trade in Netflix from India by registering on a US brokerage account using technological platforms that provide this service or through a foreign brokerage with a direct presence in India. To start with this, you only need your PAN card and proof of address.   Netflix's share price was US $525.69 on January 14, 2022, which is over forty thousand rupees. However, the premium price of Netflix shares should not stop you from investing in them because some platforms allow you to participate in fractional shares. With just $1, you can buy a part of a Google stock and own a piece of the corporation.   Additional read: How to invest in Google from India? 2. The ETF way   One way to invest in Netflix stocks from India is through an exchange-traded fund (ETF). ETFs are a grouping of stocks and bonds traded as a single fund. They're comparable to mutual funds in that they're invested in a pool of money. ETFs, on the other hand, are exchanged on the stock exchange and offer a simple and inexpensive way to gain access to a category of market or a group of companies. Buying an ETF via a platform is one way to invest in ETFs.   You can invest in the Invesco QQQ Trust, which contains Netflix as one of its top holdings.   Another option for investing in Netflix stocks from India is to purchase ETFs that invest in US indices such as the Nasdaq 100. Netflix is holding the Motilal Oswal Nasdaq 100 ETF. You don't need to create a US brokerage account to invest in these ETFs. However, tracking errors in these ETFs may influence your returns.   Additional read: How to invest in Nasdaq from India? 3. The Mutual Fund way   In this case, you will be investing in funds of funds, a domestic mutual fund that invests in a mutual fund available in the United States. Since the investment would be made in Indian rupees, there is no investment restriction. Netflix is included in several mutual funds, such as the Edelweiss' US Technology Fund of Fund but only to a minimal level. Furthermore, this strategy may prove to be more costly. An annual expense ratio will be required of you. The expense ratio of these funds is typically greater, as it includes an additional expenditure levied by the core global schemes they invest in, in addition to the usual India fund administration fee.   A note of caution here is to remember to evaluate your risk profile before purchasing any investment. Directly investing in equities like Netflix would be a greater risk strategy for your portfolio Consult an expert advisor to get the right plan TALK TO AN EXPERT

The S&P 500 index is the most widely followed of the major U.S. stock indexes as a gauge of the general stock market's performance and a measure of how significant firms are performing. What is S&P? How does it work?   The S&P 500 (sometimes referred to as the Standard & Poor's 500) is a trademark of the S&P Dow Jones Indices joint venture. It is a stock market index that includes the 500 largest firms in the United States and is often regarded as the most significant predictor of how the stock market in the United States is performing overall.   From a different perspective, the S&P 500 is a statistical measure of the quality of America's 500 largest stocks as an index. The S&P 500 is a standard baseline against whom portfolio success is measured in this context.   Market capitalization is used to weight the S&P 500 index. The value of a company decides how much of an impact it has on the index's performance.   One essential item to note is that, even though these are 500 huge enterprises, there is a vast variation in prices. Several of the index's top companies have over $1 trillion in market capitalizations. This is much more than 200 times the size of the S&P 500's smallest businesses, which have a market capitalization of $6 billion to $7 billion.   Depending on performance-weighted market information for the underlying firms, the value of the S&P 500 index swings during the trading day.   How to invest in S&P 500? 1. The direct way   By opening a US brokerage account through technology platforms or a foreign brokerage with a direct presence in India, you can invest directly in the world's leading technology businesses like Apple, Tesla, P&G, Visa, NVIDIA, Berkshire Hathaway, etc. listed on S&P 500.   You must send funds to the United States to invest in US stocks. You can do this as an Indian resident under the RBI's Liberalized Remittance Scheme, which allows you to send up to US $250,000 per person per year. Stocks are intrinsically expensive because their prices are denominated in dollars. However, you can acquire fractional shares, so you can start investing in your favorite firms with as little as $1.   2. The ETF way   ETFs are another option for investing in S&P 500 from India. One approach is to purchase an ETF through a brokerage platform. One example is index ETFs, such as the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500 100 index. Companies including Amazon, Apple, Microsoft, Meta (Facebook), Netflix, Google (Alphabet), and Tesla are among the ETFs' top holdings.   Another method to engage in S&P 500 from India is to buy ETFs like the Mirae Asset S&P ETF, which invests in US indices. You can trade in these ETFs without opening a new brokerage account in the United States. However, tracking errors in these ETFs may negatively influence your gains.   3. The mutual fund way   In this situation, you'll most likely be investing in funds of funds or a domestic mutual fund that invests in a US mutual fund that invests in the S&P 500. Since the investment would be made in Indian rupees, there is no investment restriction. This strategy, though, may prove to be more expensive. These funds' expenditure ratios are often higher. Motilal Oswal S&P 500 Index Fund is one such Mutual Fund.   As we've seen, there are numerous ways to invest in S&P 500 and join the world's largest stock market from India.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Millions of students from all over the world enroll in colleges abroad to broaden their horizons, develop their cross-cultural skills, and sharpen their language abilities. The majority of parents are devoted to paying for their child's overseas education and are ready to make personal sacrifices; this is true not only for primary and secondary school but also for postgraduate study. Even though this attitude is commendable, many parents are unaware of the costs associated with sending their children to an international university in the future. Countless students and their parents struggle to make their study abroad dream a reality due to poor or late planning and a relative lack of knowledge. Here are some financial planning strategies that parents may use to make their children's study abroad experience a little less stressful and a little more productive. With the help of these suggestions, you can assist your child in realizing their dreams while simultaneously preserving your long-term financial security. 1. Include cost forecasting in your plan Tuition is not the only cost of studying abroad. Your initial budget may increase significantly as a result of additional expenses such as student health insurance, academic materials, cost of living (housing, food, transportation), and entertainment. When creating your strategy, be sure to take these costs into account. Planning and budgeting are likely to go more smoothly if you anticipate increased prices and make additional savings as opposed to making smaller savings now in the hopes that they would be sufficient later. Adopting a pessimistic outlook will increase your prospects of building a future capital that is more than the real costs at that point. And the less you have to borrow at interest (like an education loan) when the time comes, the more you may give from your own savings or investments. This would not only reduce your overall debt load but also speed up your repayment process. 2. Consider long-term financial planning Planning is extremely important. As soon as you can, begin making plans for your child's international education. You may need to make certain personal sacrifices as a parent right now, so start looking at your spending patterns and reducing non-essential spending. Set aside money for your child's education, and do it regularly. Additionally, look at other options for saving and investing. Also, explore the places you might want to send your child as part of your financial planning in advance. Highly developed nations like the USA, Canada, the UK, Australia, and others are the most sought-after locations for higher education. The higher cost of living must be taken into account, and you must therefore include these aspects in your plan from the very beginning. 3. Consider inflation & exchange rates The US dollar has been among the strongest currencies in the world for many years, with practically all other currencies slowly losing value against it. You should anticipate that this will continue in the future for your currency as well. Therefore, regardless of when you intend to send your child abroad to study, you must account for inflation in your nation and potential depreciation of your currency in your study abroad budget. EduFund’s College Cost Calculator can help you figure out the average total amount you will require when you send your child to study abroad, factoring in inflation and exchange rates. Longer time frames provide you greater freedom to invest in high-risk assets like equity, which can assist you in the long term to fend off the impacts of inflation and currency rate fluctuations. Additional read: Saving tips for young adults 4. Find the best investment strategies Even though your child's international trip is years away, simply set up an education fund with your current regular salary might not be sufficient to cover your child’s future needs. The living costs will probably increase from where it is today in the future. You need to start looking for extra sources of money right away that are separate from your (and your partner's) salary income if you want to lessen the impact of these potentially increased costs. As a result, you should look into medium- and long-term investment opportunities that you may begin making as soon as possible. Recognize your investment capacity and risk tolerance, and make investments accordingly. Our financial advisors can assist you in your search for mutual fund-based Systematic Investment Plans (SIP), education investment, or savings plans specifically designed for education. 5. Consult an expert investment advisor Most people find the process of preparing for an international study abroad to be intimidating. You can still feel completely unprepared with your action plan and strategy even if you start early, set a budget and a costing plan, and examine the many investment possibilities. Talking to a professional may be a good option if you feel stuck. You can explore your possibilities and create a more thorough and practical strategy with the assistance of our investment advisors and study abroad experts. You might even discover new choices that you hadn't previously known about or hadn't considered. Conclusion A study abroad plan for your child can include confusing aspects of financial considerations, but with systematic planning and a practical mindset, you and your child can both benefit in the long run from pursuing this desirable goal. Consult an expert advisor to get the right plan TALK TO AN EXPERT