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According to Capgemini, "the number of Indians with over 1 million US dollars investments will increase by 80-% in 2025."  Around 50% of Indian students study in North America. It contributed $ 7.6 billion to the US economy in August 2021. The country recorded the highest number of Indian student applications. Given the popularity of the USA education deciding the best US investments for a child's higher education is crucial. Rupee depreciation and rising education costs form the base. Investing in US stocks helps earn profits even with a fixed stock price. Before investing, undertake the existing or predictable application costs, examination fees, cost of living, and tuition fees. Edufund helps individual circumstances by addressing the total money you need to invest in the top US stocks (zero commission fee). It concludes by determining the expected sum in the dedicated year. Knowing so, you can re-arrange the investments and invest in the Best US stocks and other products calculatingly. For example, suppose you invest ₹4000/month ($48.79) in a particular US stock and income slashes. In that case, Edufund helps stabilize the momentum by providing options at a lower investment amount (if the investment type does not have a minimum investment limit). You can always know the revised investment plan after investing ₹2000/month ($24.40)—the platform grants immense freedom to regulate investment securely. US Investment opportunities for your Child's education According to Business Standard reports, "9.2% depreciation in Indian Rupee against the US dollar may translate into a hefty sum for Indians planning US education for the child."  And as Statista puts it, "The average cost of higher education in the USA for the year 2022-2023 stands at $23,250."  To build up a good investment pot, guardians can buy individual shares or ETFs in the US market from India. S&P 500 index fund It lists the top and poorest 500 US stocks to invest in. To invest in these funds from India, follow the below guidelines: Select a fund that best suits your investment goal Open a share-trading account with Edufund Deposit a comfortable sum (no fee) You can buy the ETF or S&P 500 index  It is ideal for long-term savings with lower management fees. It yields high returns on maturity. ETF (Exchange Traded Funds) ETF funds are those in which one trades on exchanges by tracking a specific index. You must own a trading account to invest in this. The most popular ETFs in the US are- the NASDAQ-100 and the Rusell 1000 Index It helps Indians invest in companies that do not exist in India. It is ideal for those investors and guardians who lack the minimum money to meet the mutual fund investment requirement. It is a great way to create a cluster of the best securities leading to a diversified portfolio. This is it if you find a safe escape to the best US investments for a child's higher education. Corporate Bonds Corporate bonds are bonds through which you can invest in a US company. It is not capped or regulated by government regulations. It is ideal for individuals to share good knowledge about supporting and regulating investments.  These are risky bonds with high yields. If you eye a fixed income security to cover up for your child's education savings, check this. Bonds that large-cap companies issue are generally low-yield driven and vice versa. You will have to balance your investment in a way that maximizes investments along with balancing the loss. Mutual Funds  Mutual funds grant immense flexibility to you to diversify your investments in shares, bonds, and other assets.   It optimizes the risk possibility by balancing the trading opportunities. It is ideal for a long-term goal and eliminates any hassle of regular monitoring and management. Mutual Funds call for a minimum mandatory investment amount.  With Edufund, you can set up automatic mutual fund investments as per income and shifting circumstances. Choose the right industry before investing. Biotech and technology company shares pay the highest dividends and returns.  Money Market funds These mutual funds invest in short-term liquid assets and pay investors dividends. It is a type of short-term, high-quality corporate debt. Regulated under the Investment Company Act of 1940 and registered under the Securities and Exchange Commission, it is the safest investment option. Individuals looking to diversify investments by relying on safer options can consider money market funds. It is ideal for individuals looking forward to saving more than relying on returns. You can purchase these from a direct mutual fund provider.  Conclusion Earmark your timeline, and risk tolerance and partner with us for expert guidance. EduFund helps you provide the best US investments for a child's higher education as per risk appetite. TALK TO AN EXPERT

Becoming financially independent is one of the ultimate goals behind pursuing any profession of your choice. Of course, everybody needs to work to earn money. But will earning money alone ensure your financial independence? We’ll discuss the possible ways to become financially independent in this blog. What financial independence means? Everyone defines financial independence in their own terms and goals. For most people, it usually means having financial freedom and not having to worry about finances and money-related issues. Financial independence comes when you intelligently invest and can afford a certain lifestyle of your choice. It also means you retire without worry or have the freedom to pursue your passion without second thoughts. 1. Set life goals A mere desire to achieve financial independence won’t help you reach your goal. If you wish to be financially independent as soon as possible, you should set realistic and ambitious goals. Setting life goals, big or small, would help you create a blueprint for achieving those goals. Be focused and specific about your goal and make timelines accordingly. This will not only help you meet your goal’s deadlines on time but also increase your chances of achieving your goal. 2. Make a monthly budget Making a monthly household budget is one of the best ways to control your spending and track your bills. Sticking to your budget is a great way to ensure that bills are paid and savings are on track. It also acts as a regular routine that reinforces your goals. 3. Start investing now In the midst of rising debt, financial emergencies, medical expenses, and excessive spending, achieving financial independence can be quite challenging. However, it is attainable with discipline and careful planning. Bad stock markets and low returns can make people question their wisdom in investing and whether they should keep investing their hard-earned money. But there is no better way to grow your money than investing. Investing is basically making your money work for more money rather than you working for the money. The magic of compound interest, dividends, growth in the share market, increments in shares you have invested in, etc., will grow your money exponentially. But you need a lot of time and patience to achieve this meaningful financial independence. Investing in the right tools at the right time with expert advice can help you reach your goal. Remember that not everyone is a professional investor from the beginning, so it would be a mistake to attempt the kind of stock-pinning and risky investments made famous by billionaires like Warren Buffett. Instead, start simply by opening an online brokerage account that will help you learn how to invest, create a manageable portfolio, and make weekly or monthly contributions to it automatically.  Track your investments on a regular basis and keep learning more about investments and better opportunities to invest in. More importantly, consult financial experts while investing your savings. 4. Avoid loans and debts and pay off your credit cards in full One of the vital hacks for becoming financially independent is to avoid loans, credits, debts, etc. You need to be smart when it comes to money and financial freedom. It might seem easy to pay back loans, but in reality, there are many challenges. When loans are being taken, they should be intelligently calculated and only be taken when necessary. Credit cards and other high-interest consumer loans may be hurdles to wealth-building. Make sure to settle the entire balance every month. Paying off mortgages, student loans, and other loans with comparable terms often have significantly lower interest rates, so doing so is not urgent. Even yet, timely repayment of these loans with lower interest rates is crucial. On-time payment of these loans would not only help you get financially independent early but also help you build a good credit score which is very beneficial. 5. Watch your credit score The credit score is a very important number for you as it determines the basis on which interest rate will be offered to you when you decide to take loans for any personal reasons like renovating your house or buying a new car, or taking any loans for any purpose. Credit score also plays an important role in determining the premium rate you will have to pay for any kind of insurance you take. Since someone with careless financial habits is thought to be irresponsible in other areas of life, credit scores are given a lot of importance. This is why it's crucial to obtain credit information on a regular basis to ensure that no incorrect defaults are harming your reputation. Stay educated on financial issues. 6. Create automatic savings Automatic saving basically means setting money aside the day you get paid so that it never reaches you. You can also call it paying yourselves to be ready for retirement. To be financially independent, it’s very important to enroll in an employer’s retirement plans and make full use of any matching contribution benefits, which are essentially free money. Having an emergency fund that may be accessed for unforeseen needs is a good idea as well. 7. Do not stop having fun And last, ensure your life does not seem too boring because you do not let yourself have a little fun and relax. Join parties, travel from time to time, and do not forget that you need to strike a reasonable balance between achieving financial independence and your everyday life as a young and happy person. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Mutual funds are one of the hottest options for investing because they can assist you in achieving your financial goals. One significant downside of putting your money in a fixed deposit for investment purposes is that the interest is added to your taxable income and taxed at your income tax slab rate, which is especially unfavorable if you are in a high-income tax bracket. Here mutual funds do better financially as they can help you save some taxes.  You can benefit from specialized money management and tax-efficient returns by investing in mutual funds. Profits from investments in mutual funds are taxed in a manner similar to that of other asset classes.  By becoming knowledgeable about the taxes of mutual funds, you can set up your investments to lower your overall tax liability. You may also benefit from tax deductions in certain situations. Keep up with the rules governing tax on mutual funds when investing in them. Determiners of Tax on Mutual Funds There are two categories of mutual funds: equity- and debt-oriented. Both of them are subject to different taxation.  Dividend: A dividend is a portion of the cumulative profit that mutual fund providers distribute to scheme investors.  Capital gains: They are the profits made when investors sell their capital assets for more money than they originally paid for them Taxation of dividends offered by Mutual Funds  The Union Budget 2020 made changes that affect how dividends offered by any mutual fund plan are taxed. In other words, dividends that investors receive are added to their taxable income and taxed at the rates applicable to each income tax slab. Dividends were previously exempt from tax in the hands of investors since businesses paid dividend distribution tax (DDT) before distributing their profits to investors as dividends.  Investors were not subject to tax on dividends (received from domestic enterprises) up to Rs 10 lakh per year. Any dividends that exceeded Rs 10 lakh per fiscal year were subject to a 10% dividend distribution tax. Taxation of capital gains offered by Mutual Funds  The holding duration and kind of mutual fund affect the tax rate on capital gains for mutual funds. The holding period is the length of time an investor held units of a mutual fund. Mutual funds offer both short and long-term capital gains, which are taxed differently Things to remember regarding tax for mutual funds  Mutual does not need you to pay taxes yearly. When choosing a mutual fund scheme, the appropriate taxes must be paid only when the units are redeemed or the scheme is sold. It does not factor in annually. Your dividend income from mutual fund plans is included in your overall income for the questioned fiscal year. Therefore, if your income is subject to income tax, you must pay tax on this dividend income.  Even though you cannot avoid paying tax on capital gains, you can structure your investment in a way that minimizes your tax liability.  Even though tax-saving mutual funds have some restrictions, you should take four things into account when choosing one. They are investment method, asset allocation, tax-exemption thresholds, and lock-in duration.  Your investments in mutual funds may be eligible for an income tax refund. Tax benefits are available in the case of ELSS, or Equity Linked Savings Schemes, under Section 80C of the Income Tax Act. You can deduct up to Rs. 1.5 lakh from your taxes, which translates to an annual tax savings of about Rs. 46,800. Keep in mind that ELSS has a three-year minimum lock-in term.  There are no wealth taxes imposed on mutual funds or other financial assets.  It’s important to read and study the tax guidelines for mutual funds before investing your money. Connect with a financial expert to make the right choices and make the most of your returns to achieve your financial dreams. TALK TO AN EXPERT

The asset management branch of State Street Corporation, State Street Global Advisors, was created in 1978 in Boston, Massachusetts.  The company's first three products  The domestic index fund An international index fund (based on the MSCI EAFE index) Short-term investment fund  By 1989, the division's assets were $53 billion (USD). State Street Global Advisors was established in 1990 as a distinct company from State Street Bank to expand internationally.   With the S&P 500 SPDR product release, traded on the American Stock Exchange in 1993, SSGA established the investment vehicle known as the exchange-traded fund (ETF).  State Street Global Advisors (SSGA) is State Street Corporation's investment management subsidiary and the 4th largest asset manager, with roughly $4.14 trillion in assets under administration as of December 31, 2021.   After BlackRock and Vanguard, SSGA is the world's third-largest ETF manager. States, corporations, foundations, non-profit foundations, business financial officers and CFOs, investment firms, financial advisors, and other intermediaries worldwide use the company to create and manage investment plans.  The company has won several accolades for its services. Some of the prominent awards are  Asia Asset Management's 2022: Best of the Best Awards- At Asia Asset Management's 2022 Best of the Best Awards, State Street was named Best Global Custodian in Asia-Pacific (25 years) and Best Middle and Back Office Provider.  HFM Asia Services Awards 2021: State Street was named Best Hedge Fund Custodian for the second year in a row at the HFM Asia Services Awards 2021.  The Asset Triple A Sustainable Investing Awards for Institutional Investor, ETF and Asset Servicing Providers 2021- For the seventh year in a row, State Street was named Best in Securities Lending at The Asset Triple A Asset Servicing Providers Awards.  Aite Group 2020 Impact Innovation Awards The organization earned operational efficiency after being recognized as a financial institution that has used technology to raise the bar.  Asia money FX Survey 2020 In South Korea, Taiwan, and Thailand, State Street has been named Market Leader. The company provides several ETFs and mutual funds to be chosen from. The company has a set of thematic ETFs which focus on cutting-edge innovation.   The SPDR S&P Kensho New Economy ETFs have the backing of S&P Kensho's forward-thinking and dynamic approach, which employs artificial intelligence to analyze regulatory filings to find and classify innovative enterprises based on factors other than revenue and balance sheet data.  Some such ETFs are associated with Future security, clean power, smart mobility, space exploration, intelligent infrastructure, etc.   Fixed-income ETFs come at a high degree of diversification with a 60% lower expense ratio than competitors. Investment worth $621 billion has been made by the firm in fixed-income assets with over 100 strategies.  SPDR Blackstone Senior Loan ETF and SPDR Portfolio TIPS ETF are some of the fixed-income ETFs. There are more than 250 low-cost passively managed ETFs offered by the company all over the globe.  Investors can use SPDR Portfolio ETFs to build large, diversified portfolios by choosing from equities and fixed-income exposures. SPDR Portfolio S&P 400™ Mid Cap ETF, SPDR Portfolio S&P 500® Growth ETF, etc., are some core ETFs.  Gold-backed exchange-traded funds (ETFs) combine the gold market's flexibility, openness, and accessibility with the cost-effective liquidity of an ETF wrapper through the company's offerings. The company offers two distinct products 1. SPDR Gold Shares 2. SPDR Gold Mini Shares The company also provides a variety of ESG investing options along with sectoral investing options and Smart Beta ETFs.  Along with ETFs, the firm also offers a variety of mutual funds to choose from - grouped into four categories SSGA Funds, State Street Institutional Funds, State Street Institutional Investment Trust, and State Street Variable Insurance Series Funds. These funds track indices like FTSE Russell, MSCI, Multiple/Blend, S&P Dow Jones, etc.  Multiple ESG investment strategies 1. Screening Negative screening excludes specific firms, sectors, or nations based on environmental, social, and governance (ESG) issues and an investor's values-based goals. Among the advantages are reduced reputational risk and the ability for investors to avoid providing capital to organizations or sectors that contradict their views.  2. Best in class This strategy focuses on investing in sectors and firms that outperform the industry peers in terms of ESG performance.  3. ESG integration To limit risk and uncover possibilities for long-term outperformance, active portfolio managers routinely include ESG signals and factors in the investment analysis and decision-making process.  4. Climate investing This thematic investment strategy aligns portfolios with the transition to a low-carbon economy and limits global warming to far below 2 degrees Celsius.  5. ESG for index investing ESG investors can benefit from index investing in various ways, including diversification and transparency. Index methods give investors a simple way to acquire broad diversification in their portfolios, which improves risk management.  Thus, the pioneer of ETFs should be taken into account whilst creating a portfolio! FAQs What are State Street Global Advisors known for? State Street Global Advisors is an investment management firm located in the USA. It offers the following services such as portfolio management and advisory services to individuals, institutions, trusts, private funds, charitable organizations, and investment companies Where is the Headquarters for the State Street Global Advisors? The headquarters for State Street Global Advisors is in Boston, Massachusetts, United States. Who are State Street's clients? State Street's clients are Consumer Healthcare Products Association (CHPA) CIGNA. Everytown for Gun Safety Action Fund. Health Partners Plans. Lilly USA Is SSGA an established investment firm? State Street Global Advisors (SSGA) is State Street Corporation's investment management subsidiary and the 4th largest asset manager, with roughly $4.14 trillion in assets under administration as of December 31, 2021.   TALK TO AN EXPERT

In the previous article, we read about what are equity mutual funds. In this article, we will talk about the benefits & types of equity mutual funds. Equity mutual funds invest in shares of different companies. The fund manager aims to maximize the returns by diversifying the portfolio across stocks of various industries and companies with varying market capitalization. There are various types of equity mutual funds based on different categories. Let us have a look at them Types of Equity Mutual Funds Market capitalization-based differentiation  1. Large-cap funds These equity mutual funds invest more than 80% of their assets in the shares of large-cap companies (companies with a market capitalization of > Rs 20000 crores).  Large-cap funds are safer than mid-cap and small-cap funds because the stocks in the large-cap funds are of stable and solid companies with a proven historical track record. 2. Mid-Cap funds As the name suggests, equity mutual funds invest around 65% of the total amount in shares of mid-cap companies (companies with a market capitalization of > Rs 5000 crores but < Rs 20000 crores).  These funds tend to provide slightly better returns than large-cap funds because most of the stocks in these funds are of companies that are still growing to become bigger and better. Apart from offering higher returns, the funds are relatively more volatile. 3. Small-cap funds  Small-cap equity mutual funds invest around 65% of the assets in equity shares of small-cap companies (companies having a market capitalization of < Rs 5000 crores).  This is the riskiest type of fund in the market-cap-based category because the fund invests in companies that are potential superstars that may multiply your money by significant amounts and the risk of capital wipeout if the company fails.  A considerable number of companies in India fall into this category Investment style-based categorization 1. Active funds  These equity mutual funds are ones that fund managers actively manage; they use their knowledge of the markets and situation of the industries to choose stocks that become a part of the portfolio. 2. Passive funds Usually imitate a particular segment of the market, and with that, the stocks that will become a part of the portfolio are determined. A fund manager plays no active role in this regard 3. Sectoral funds These types of equity mutual funds invest the majority amount in particular sectors; that is, there is a concentration of investment into specific sectors in the economy, like FMCG, pharma, technology, PSUs (Public sector undertakings), etc. Only investing in a particular industry concentrates your portfolio on all the close activities in the industry. Taxability based categorization ELSS (equity-linked savings scheme) funds allow deductions under section 80C of the Income Tax Act. ELSS schemes allow for up to Rs 1.5 lakh deductions under the act mentioned above of law.  Equity-linked savings scheme funds invest more than 80% of total assets in equity and related instruments. Also, there is a lock-in period of 3 years for these schemes. Other than ELSS, all the additional equity mutual funds in the market are subject to given rates of capital gains tax. Benefits of Equity Mutual Funds 1. Diversified portfolio Equity mutual funds offer diversification by investing in various sectors thereby offering better exposure to the market. 2. Capital appreciation As the company grows, it earns more profits and invests it back in the company, thereby leading to the company's growth, which in turn is reflected in the stock price and thus benefits the fundholders. 3. Small ticket size  Sometimes, buying stocks of companies can be costly, as some good companies' shares are trading in a high price range. However, you can invest in equity funds starting with amounts as low as Rs 500 to Rs 100. 4. Professional management In the event of an actively managed fund, your money is being taken care of by professionals who have tremendous experience in the market. Your money is invested in a way such that your returns are maximized. 5. Risk mitigation  A fund manager follows the rules laid out by asset management companies (AMCs) to mitigate various risks. For example, the risk is reduced by limiting over-exposure to any particular stock or industry. Additionally, parameters like volatility and liquidity are also studied for better risk mitigation strategies. FAQs What are the types of equity mutual funds? Equity mutual funds are divided into three categories- Large-cap mutual funds, Mid-cap mutual funds, and Small-cap mutual funds. Large-cap mutual funds invest more than 80% of their assets in the shares of large-cap companies. While mid-cap mutual funds invest around 65% of the total amount in shares of mid-cap companies. Small-cap equity mutual funds invest around 65% of the assets in equity shares of small-cap companies. Which type of equity mutual fund is the best? Equity Linked Savings Scheme funds offer investors high returns over a long time compared to other funds under Section 80C. For new investors, large-cap mutual funds are the best as they are safer compared to mid-cap and small-cap mutual funds as they invest in big companies with good reputations. Large-cap mutual funds are not likely to offer higher returns than mid-cap and small-cap mutual funds. What are the four types of mutual funds? Mutual funds usually fall into four categories—money market funds, stock funds, bond funds, and target date funds. What are the benefits of equity mutual funds? There are many benefits to investing in equity mutual funds. Equity mutual funds offer diversification by investing in various sectors, thereby offering better exposure to the market. It provides capital appreciation. Professional fund managers look after your portfolio, reducing investment risk. A fund manager follows the rules laid out by asset management companies (AMCs) to mitigate various risks.

Do you know that the value of 1 crore after 20 years will be much less than what it is now due to inflation and high consumption?  Yes, over a longer time frame, the importance of inflation cannot be understated. The buying power of the rupee is reduced by inflation, and the value of each rupee keeps falling over time.  Twenty years from now, assuming a 5 percent annual inflation rate, the value of one crore rupees would be equivalent to about 37.68 lakh rupees. That is the crumbling effect of inflation on our money. Numerous SIP calculators and monthly savings formulas are available to assist you in determining how much you should invest each month if your goal is to save Rs 1 crore. For instance, if you invest 10,000 per month for 20 years at an expected annual growth rate of 12%, you may save Rs 1 crore.  In simple terms, you might have bought a lot more with 1 crore rupees 20 years ago than you can purchase today.  The actual worth of it at that point would therefore be significantly smaller even if you save for one or two decades and are able to accumulate Rs 1 crore or more.  One should remember that even if the economy is experiencing inflation at a 5–6% rate, inflation in the fields of education and medicine will be greater. Therefore, inflation is a crucial element that influences your financial plans, especially long-term objectives like retirement and schooling for your children. Value of 1 lakh after 20 years Read More How can you counter this devaluing of money?  The solution to this issue is to manage your assets by tying them to the rate of inflation. To achieve that, multiply that quantity of the savings plan by the rate of inflation. After that, you can begin a SIP to save for the adjusted inflation amount.  Let's imagine you have higher education plans for your child that will cost about Rs. 15 lakhs over the next twenty years. The cost of the course could increase to about Rs 40 lakh if inflation is projected to be 7%. As a result, you can start saving Rs 8000 per month to amass roughly Rs 40 lakh and put the plan together without difficulty.  In a similar manner, you can manage your long-term objectives by multiplying the present value by inflation. Investing so that you can beat inflation can be tough, which is why taking care of your expenses and seeking sound financial advice can help you maximize the value of your money.  FAQ What will be the value of 1 crore after 30 years?  The value or buying power of Rs 1 crore will be around Rs 23 lakh after 30 years if you really are trying to save Rs 1 crore for a target that is 30 years away.  What would be the value of 1 Cr after 25 years?  In 25 years, a rupee will be valued at around Rs 29.53 lakhs, given a 5% average annual inflation rate. What is the value of 1 lakh rupees after 20 years?  After 20 years, the price of one lakh would be approximately INR 37,000, using a 5% inflation target.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

You've probably heard of Nasdaq if you follow financial news. After the New York Stock Exchange (NYSE), Nasdaq is the world's second-largest stock exchange and is home to tech titans such as Apple, Google, and Amazon.  The Nasdaq market has grown to accommodate over 4,000 corporate listings since its inception in 1971, including many of today's largest corporations.  The value of the Nasdaq-listed portfolio changes with the performance of the companies under consideration.  But what is the Nasdaq, and how does it function? Let's have a peek at one of the most well-known stock exchanges in the world. What is Nasdaq?  Nasdaq stands for National Association of Securities Dealers Automated Quotations; in case you didn't know. It was a division of the National Association of Securities Dealers (NASD), now the Financial Industry Regulatory Authority (FINRA).   Nasdaq was set up as a platform for investors to trade assets automated, fast, and transparently.  The Nasdaq split from the NASD in 2006 and formed its own company. Nasdaq announced in 2007 that it would merge with the OMX Nordic Exchange to form Nasdaq OMX the following year.  How does the Nasdaq work?  The Nasdaq was built from the ground up to deliver automated quotes. It regularly supported over-the-counter (OTC) trading in the years after its creation, when Nasdaq became associated with OTC and was frequently synonymized as an OTC market by mainstream and trade magazines.  Later, the implementation of automated technologies was done to generate trade and volume information – it became the first exchange to offer electronic trading.  All deals made by investors on Nasdaq's electronic exchanges are executed through dealers, often known as "market makers," rather than directly through auctions.  Trading hours on the Nasdaq  The Nasdaq, like the NYSE, is open for trading from 9:30 a.m. to 4 p.m. ET. Traders can take advantage of Nasdaq's "pre-market" and "post-market" hours. From 4 a.m. to 9:30 a.m. ET and from 4 p.m. to 8 p.m. ET are the pre-market and post-market hours, respectively.  It is critical to account for the time difference between the United States and India while investing in India. The NYSE and NASDAQ open at 8 p.m. and close at 2.30 a.m. respectively, in Indian Standard Time (IST). The US stock markets open at 7 p.m. IST and close at 1:30 a.m. IST during daylight saving time. Source: Freepik Requirements for Nasdaq listing  A corporation must meet the following criteria to be on the Nasdaq electronic exchange  Meet specific financial, liquidity, and corporate governance standards.  Be a member of the Securities and Exchange Commission (SEC) (SEC)  At least three market makers are required.  Companies should meet the criteria regarding their size and trading volume  The approval of a company's listing might take anywhere from four to six weeks after an application is submitted.  Nasdaq Market Tiers in the United States  A corporation's shares will be offered under one of three market tiers, depending on the listing requirements:  1. Global select market This composite is weighted based on market capitalization and comprises stocks from domestic and international companies.   Companies listed here must meet Nasdaq's strict criteria. Nasdaq's Listing Qualifications Department Reviews Global Market listings on an annual basis and, if they are eligible, moves them to the Global Select Market.  2. Global market Nasdaq's Global Market comprises equities from companies listed in the United States and worldwide – classified as a mid-cap market.  3. Capital market Before Nasdaq changed its name, the Capital Market was known as the SmallCap Market. It is an extensive list of companies with smaller market capitalizations.  Nasdaq performance  Nasdaq's overall performance has been quite robust in the previous quarter-century because it is mostly tech stocks. The NASDAQ-100 index, which comprises the exchange's top 100 stocks, had a five-year return of 196.31 percent and a 10-year return of 552.24 percent as of November 3, 2021.   Meanwhile, the Composite Index returned 171.64 percent over five years and 444.12 percent over ten years. The Nasdaq has outpaced other vital indices, such as the S&P 500.  The Nasdaq Composite and Nasdaq 100 indexes  Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Tesla (TSLA) make up most of the Nasdaq Composite Index. On the other hand, Nasdaq includes corporations in the oil, industrial, consumer products, and healthcare areas.  The Nasdaq 100 index, for example, measures 100 of the Nasdaq Composite's largest and most commonly traded securities.  All things considered, the Nasdaq is a stock market where businesses can list their stock. Investors can purchase and sell corporate shares on these markets through brokers. Nasdaq is famed for its ingenuity.   To summarize many of the world's most prestigious businesses are now listed on the Nasdaq, and you trade in their securities either directly or via instruments like ETFs and mutual funds FAQs What is Nasdaq? Nasdaq stands for National Association of Securities Dealers Automated Quotations. It was a division of the National Association of Securities Dealers (NASD), now the Financial Industry Regulatory Authority (FINRA).   Nasdaq was set up as a platform for investors to trade assets automated, fast, and transparently. How does Nasdaq work? The Nasdaq was built from the ground up to deliver automated quotes. It regularly supported over-the-counter (OTC) trading in the years after its creation, when Nasdaq became associated with OTC and was frequently synonymized as an OTC market by mainstream and trade magazines.  What is in the Nasdaq? Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Tesla (TSLA) make up most of the Nasdaq Composite Index. On the other hand, Nasdaq includes corporations in the oil, industrial, consumer products, and healthcare areas.  The Nasdaq 100 index, for example, measures 100 of the Nasdaq Composite's largest and most commonly traded securities. Who owns the Nasdaq? Nasdaq is one of the largest stock exchanges in the world and the USA. It is owned by the AB Wallenberg family.

The economic impact of Covid-19 has kept Indian and global markets volatile. Markets can trade at higher valuations and drop suddenly without investors realizing it.   This has caused a lot of confusion among investors about how to protect their investment portfolios.  With markets still unpredictable, experts suggest it's the right time to invest in overseas equities like the U.S., especially for investors looking to manage risk through diversification.  Market experts suggest investing in U.S. stocks through Exchange Traded Funds (ETFs) and Funds of Funds (FoFs). So how can you invest in U.S. stocks through a mutual fund?  Read on, to know about U.S. stock mutual funds. What are the mutual fund options to invest in U.S. stocks? 1. Actively managed international mutual funds  International equity mutual funds are the funds that invest a subsequent portion of their total amount in U.S. equities; meanwhile, maintaining some portion focused on Indian equities can be an ideal choice for fresh investors who want to have exposure to the U.S. stock market.   2. ETFs and FoFs  Barring exposure to the U.S. stock markets, Exchange-traded funds and Funds of Funds can provide diversification benefits to the investor's portfolio looking for portfolio stability. ETFs track an underlying index, providing an organized and transparent investment approach while providing exposure to foreign markets. Fund of funds invests in several other mutual funds and allows investors to benefit from exposure to various investments with minimal investment amount. ETFs or FoFs are the cost-effective mode of investment to gain exposure to the U.S. market.  3. Index mutual funds  These funds are passively managed funds and track a specific index from the U.S. stock market. These funds replicate the composition of an index and try to match the returns generated by the same index while charging a low expense ratio.  Benefits of investing in U.S. stocks  Many investors ask why they invest in U.S. stocks when many Indian stocks offer high growth. Let's discuss some benefits of investing in U.S. stocks: Portfolio diversification: By investing in U.S. stocks, an investor can broaden & diversify the overall investment portfolio across the U.S. economy. This helps in mitigating any India-specific economic risks.  The benefit of dollar appreciation: In 2011, the USD-INR exchange rate stood at about Rs. 47. And today, it is around Rs. 82. This indicates that an investor who has invested in the U.S. stock market could have gained 36% by simply taking advantage of the currency appreciation. This gain is apart from the gains that could be made from the U.S. stock market.  Higher returns possibility through international exposure: Compared to the Indian stock market, the trends in the U.S. market have reflected comparatively lower volatility. The former has also provided higher returns on a currency-adjusted basis.  Exposure to companies with higher growth potential: The U.S. market is considered a leader compared to other international markets due to technological innovation, pharmaceutical advancements, and industrial expansion. Investing in U.S. stocks allows Indian investors to benefit from many innovative and high-potential companies.  Who invests in U.S. Stocks through Mutual funds?  Investing in U.S. equities through mutual funds is ideal for investors who:  Are seeking to attain diversification by widening their portfolio's geographical exposure  Want to gain international stock market exposure but at lower risk levels  Seeking higher gains beyond what domestic markets could provide  Have a longer investment horizon and higher risk appetite  Mutual funds help reduce the overall risk that can arise from exposure to the U.S. stock market, but investors should be aware that equity investments carry the risk of loss.  Factors to consider when investing in International mutual funds Investors should be aware of the following risks and tax considerations associated with investing in international mutual funds.  Every international fund has some common risks that investors must be prepared to take while investing in these to gain exposure to U.S. stocks. These are:  Exchange rate risk  Foreign market risk  Concentration risk  Investors must also remember that any returns from international fund investments attract taxes in India. Some points to note here are:  Any dividends of more than Rs. 5,000 from these funds attract TDS at 7.5% for resident investors.  Long-term capital gains tax at 20% is applicable on returns from units redeemed after staying invested for three years.   Short-term capital gains tax is applied per an individual's tax slab for returns from fund units that are redeemed before the completion of 3 years.  Conclusion  The pandemic has forced the world to adopt a new normal in many ways: how we invest, spend, and think about saving. Investors are now focused on keeping their available capital safe. At the same time, more investors are more willing to take risks when working internationally with their portfolios. What better way to explore international markets than to invest in U.S. stocks easily through mutual funds? 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How to earn money by investing and where to invest so that you can save a good amount for later years is a dilemma that many individuals encounter. There are numerous options, and an individual needs to choose the best-suited investment plan to grow their savings. We will look at some of the most popular investment opportunities to help investors understand “How to earn money by investing”. Some investment options to earn money 1. Debt Mutual Fund Schemes Debt Mutual Fund Schemes are fixed-income generating securities with a fixed interest rate and maturity date. These are good options for short and medium-term investments and ideal for risk-averse investors who are looking for good returns and stable investments.  The gains from the Debt Mutual Fund Schemes are eligible for indexation benefits after three years and are taxed at 20%.  Some of the important Debt Mutual Fund Schemes are Certificates of Deposit, Commercial Papers, Treasury Bills, Corporate Bonds, Government Securities, etc. There are different types of Debt Mutual Funds, like Liquid Funds, Money Market Funds, and Corporate Bond Funds and investors must choose the right option. Open an account on the Edufund App and start investing in Direct Mutual Funds with no hidden costs.  2. Equity Mutual Fund Schemes Equity Mutual Fund Schemes are the preferred investment tools of investors who are ready to take high risks for higher returns. The fund manager has to invest 65% of the assets in equity shares of different companies and the balance in any other money market instruments.  The Equity Mutual Fund Schemes can be actively managed by the fund manager by handpicking the stocks or passively managed by tracking the market index like the ETFs. These schemes are categorized based on investment strategies like the Sectoral Funds, market capitalization like the Large Cap Funds, or tax treatment like the ELSS Funds.   3. Investment in Gold Investment in actual gold, like bars, coins, or ornaments, is one of the traditional investment options, but it has several drawbacks like safety and higher cost. Gold ETFs and Sovereign Gold Bonds are comparatively safe and cost-effective investment schemes. 4. Equity Shares Investing in equity shares is not for faint-hearted investors as the risk is very high, and there is no guarantee of returns. Over the years, equity shares have delivered higher returns compared to other asset classes. Hence investors should invest with care.  5. Bank Fixed Deposits Bank Fixed Deposits have been the most common choice for investors who are looking for safe and secured investment options and assured returns. FDs can be for short, medium, or long periods depending upon the individual choice.  Banks offer a 5% to 7% rate of interest depending upon the tenure, although senior citizens are granted better interest rates than the general population. The Government of India has recently increased the limit of insurance cover on Fixed Deposits for both the principal and interest in case of bank failure to INR 5 Lakhs from the previous amount of INR 1 Lakh for each depositor in a bank.  6. Sweep-in Fixed Deposit The Sweep-in Fixed Deposit allows the investor to enjoy the interest rates of a regular bank FD with liquidity and flexibility features that the FDs do not enjoy.  For such a scheme, the account holder of a savings or current account gets his account linked to an FD. He has to specify a certain amount, above which the additional amount must be converted into an FD without any hassle. It is easy to withdraw the amount without penalties.  7. Post Office Schemes The Post Office Schemes are government-backed safe, and secured investment options. Some of them also offer tax-savings benefits U/S 80C of the Income Tax Act. The interest rates are generally set by the government at the start of every quarter of the fiscal year.  Prime examples of Post Office Schemes are National Savings Certificates with 6.8% per annum interest compounded annually, Sukanya Samriddhi Account with 7.6% per annum interest compounded annually, and Kisan Vikas Patra with 6.9% per annum interest compounded annually. TALK TO AN EXPERT

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 – DSP Nifty 50 Equal Weight Index Fund. DSP Nifty 50 Equal Weight Index Fund  Investment objective The primary investment objective of the Scheme is to invest in companies that are constituents of the NIFTY 50 Equal Weight Index (underlying Index) in the same proportion as in the index and seeks to generate returns that are commensurate (before fees and expenses) with the performance of the underlying Index, "subject to tracking error".  Investment process   By matching the Nifty 50 Equal Weight TR Index, it allows you to invest in India's top 50 companies, each with the same weight in the portfolio. The portfolio is re-aligned every quarter so every stock's weight is brought back to 2%.  Portfolio composition  The portfolio has an entire equity exposure of 100% in large-cap companies. The top 5 sectors hold nearly 48% of the portfolio, with major exposure to the banking and automobile sectors. Note: Data as of 30th Sep 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: dspim.com https://www.youtube.com/shorts/MlOiPHJjTjs Top 5 holdings Name Sector Weightage % Axis Bank Ltd. Bank 2.34 Coal India Ltd.  Coal Mining company 2.19 Sun Pharmaceutical Industries Ltd. Pharmaceutical 2.16 HCL Technologies Technology 2.16 Power Grid Corporation of India Ltd.  Electric Services 2.12 Note: Data as of 30th Sep 2022. Source: ICICI Pru AMC Performance over 5 years  If you had invested 10,000 at the inception of the fund, it would be now valued at Rs. 16,625. This fund has outperformed the benchmark in all time horizons. Note: Performance of the fund since launch as on Nov 11, 2022. Source: Moneycontrol  The fund has given consistent returns and has outperformed the benchmark over the period of more than 5 years by generating a CAGR (Compounded Annual Growth Rate) of 10.58%. Fund managers  Anil Ghelani - Total work experience of 22 years. Managing the scheme since June 2019. He was also the CIO of DSP Mutual Fund.  Diipesh Shah - Total work experience of 20 years. Managing the scheme since November 2020.  Who should invest in the DSP Nifty 50 Equal Weight Index Fund?  Investors  Aiming to build wealth by investing conveniently & equally in the top 50 Indian companies.  Have the patience & mental resilience to remain invested for a decade or more.  Why invest in the DSP Nifty 50 Equal Weight Index Fund?  Can help you beat the impact of rising prices over the long term.  A well-diversified portfolio avoids undue concentration in a few stocks/sectors.  Horizon  One should look at investing for a minimum of 5 years or more.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  This is a zero-bias product since it only replicates an index and does not carry any stock or sector bias & does not have an 'active' fund manager. Relatively low-cost, with a comparatively lower expense ratio than active large-cap funds. It offers a well-diversified portfolio and avoids undue concentration in a few stocks/sectors. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

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 – DSP Nifty 50 Index Fund. About DSP Nifty 50 Index Fund  - Investment objective To invest in companies that are constituents of the NIFTY 50 Index (underlying Index) in the same proportion as in the index and seek to generate returns that are commensurate (before fees and expenses) with the performance of the underlying Index, "subject to tracking error".  - Investment process   The portfolio of this index fund replicates the Nifty 50 TR Index - same stocks, same weights. The portfolio is rebalanced semi-annually to adjust for any stock additions or subtractions to the Index.  - Portfolio composition  The entire portfolio exposure of 100% is only in large-cap stocks replicating the Nifty 50 Index. The top 5 sectors hold nearly 67% of the portfolio, with major exposure to the banking sector. Note: Data as of 30th Sep 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: dspim.com  Top 5 holdings Name Sector Weightage % Reliance Industries Ltd. Conglomerate 11.01 HDFC Bank Ltd. Bank 8.25 ICICI Bank Ltd. Bank 7.93 Infosys Ltd. Information Technology 7.05 Housing Development Finance Corporation Ltd. Financial Services 5.61 Note: Data as of 30th Sep 2022. Source: ICICI Pru AMC  Performance over 3 years  If you would have invested 10,000 at the inception of the DSP Nifty 50 Index Fund, it would be now valued at Rs. 17,368. The DSP Nifty 50 Index Fund has outperformed the benchmark in all time horizons.  Note: Performance of the fund since launch; Inception Date – Feb 21, 2019. Source: Moneycontrol  The fund has given consistent returns and has outperformed the benchmark over the period of more than 3 years by generating a CAGR (Compounded Annual Growth Rate) of 15.98%. Fund managers  Anil Ghelani: Total work experience of 22 years. Managing the scheme since June 2019. He was also the CIO of DSP Mutual Fund.  Diipesh Shah: Total work experience of 20 years. Managing the scheme since November 2020. Who should invest in DSP Nifty 50 Index Fund?  Investors looking for  Aim to build wealth by investing conveniently in the top 50 Indian companies.  Relatively low-cost funds, with a comparatively lower expense ratio than active large-cap funds.  Why invest in DSP Nifty 50 Index Fund?  This fund can help you beat the impact of rising prices over the long term.  It has no sector or stock concentration.  Horizon  One should look at investing for a minimum of 5 years or more.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  This DSP Nifty 50 Index Fund offers an affordable way to buy the top 50 Indian stocks. Since the fund only replicates an index & does not have an 'active' fund manager, it carries no human decision-making bias.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

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 – DSP Quant Fund. About DSP Quant Fund - Investment objective The investment objective of the scheme is to deliver superior returns as compared to the underlying benchmark over the medium to long term through investing in equity and equity-related securities.  - Investment process   The portfolio of stocks will be selected, weighed, and re-balanced using stock screeners, factor-based scoring, and an optimization formula that aims to enhance portfolio exposures to factors representing 'good investing principles' such as growth, value, and quality within risk constraints.  - Portfolio composition  The equity exposure is majorly in large-cap stocks at 83% and sectoral major exposure is to banks and financial services. The top 5 sectors hold nearly 53% of the portfolio. Note: Data as of 30th Sep 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: dspim.com  Top 5 holdings Name Sector Weightage % ICICI Bank Ltd. Bank 5.16 Housing Development Finance Corporation Ltd. Financial Services 4.36 HDFC Bank Ltd. Bank 4.28 Bajaj Finance Ltd. Financial Services 4.07 Bajaj Finserv Ltd. Financial Services 4.06 Note: Data as of 30th Sep 2022. Source: ICICI Pru AMC  Performance over 3 years If you would have invested 10,000 at the inception of the DSP Quant Fund, it would be now valued at Rs. 15,891. This fund has outperformed the benchmark in all time horizons. Note: Performance of the fund since launch; Inception Date – Jun 10, 2019. Source: dspim.com  The DSP Quant Fund has given consistent returns and has outperformed the benchmark over the period of 3 years by generating a CAGR (Compounded Annual Growth Rate) of 15.02%. Fund managers  Anil Ghelani - Total work experience of 22 years. Managing the scheme since June 2019.   Diipesh Shah - Total work experience of 20 years. Managing the scheme since November 2020.   Prateek Nigudkar - Total work experience of 9 years. Managing this fund since May 2022.   Aparna Karnik - Total work experience of 17 years. Managing this fund since May 2022.   Who should invest in DSP Quant Fund?  Investors looking for  Long-term wealth creation solution.  Looking for a portfolio with fundamentally strong sectors and stocks that do not experience very high volatility.  Why invest in DSP Quant Fund?  Investment in the active portfolio of stocks screened, selected, weighed, and rebalanced on the basis of a predefined fundamental factor mode.  It has no sector or stock concentration.  Horizon  One should look at investing for a minimum of 5 years or more.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The fund has a strategy of quality, value, and growth while selecting the stocks for its portfolio. This fund uses a multi-factor approach to assess companies in a holistic manner. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

You have seen several different types of ETFs. There are some specialized ETFs that use complex strategies to deliver a return. Leveraged ETFs are one such type of specialized ETF.  What do leveraged ETFs mean? In layman's terms, it means exerting force. In ETF parlance, it means generating a multiple of returns given some return of the underlying index.   For instance, ProShares Ultra S&P 500 ETF is a leveraged ETF that returns twice the daily return of the S&P 500. If the S&P is up 2% daily, the ETF will be up 4% after adjusting the expense ratio. Conversely, if the S&P is down 1.5%, the ETF will be down 3%.  These leveraged ETFs rebalance their portfolio allocations daily. Thus, each day is considered a new day without any connection to the previous day.   Most investors confuse this leverage with more time-bound influence, as in if the S&P is up 10% in a year, the ETF will be up 20% if it's a 2x return ETF, which is entirely wrong! These ETFs work on a daily leverage basis, and in the long run, the fund will not exactly replicate the underlying index. The rebalancing of funds is done on a daily basis to generate an assured return. Continuing with our previous example, if the ProShares ETF is giving a 2x return, the ETF will have to acquire assets that are twice the value of the NAV of the fund.   As an illustration, if a fund has 100 units of securities, the fund will swap these with the counterparty for exposure to 200 units of the performing assets. This rebalancing is usually in the direction of the market.  Such leveraged ETFs can be shortly leveraged or long leveraged Long-leveraged ETFs will trace the market trend in the same direction. Short-leveraged ETFs will move on the contrary.   For example, the ProShares UltraShort S&P 500 ETF design is such that if the S&P rises 5% in a day, the ETF goes down 10%, i.e., a 2x return in opposite direction. Similarly, if the index value falls 5%, the ETF will be up 10%.  Since the rebalancing is on a daily basis, compounded growth, in the long run, doesn't resemble the development of the underlying index. Volatility in the market can severely dent the prospective gains of the ETFs, leading to severe underperformance compared to the underlying assets. For instance, if a triple-leveraged ETF loses 30%, the underlying index must have lost only 10%.   A leveraged ETF can lose its value in some tremendously sporadic cases, mainly when derivatives are part of the ETFs kitty.  Let's take some easy examples and understand how things pan out.  1. Let's take a scenario where the market is up 5% daily, and a 2x long leveraged ETF is traded. Days Daily market performance Expected index level Expected 2x leveraged long ETF level Daily ETF performance 0 0% 100 100   1 5% 105.00 110.00 10% 2 5% 110.25 121.00 10% 3 5% 115.76 133.10 10% 4 5% 121.55 146.41 10% 5 5% 127.63 161.05 10% 6 5% 134.01 177.16 10% 7 5% 140.71 194.87 10% 8 5% 147.75 214.36 10% 9 5% 155.13 235.79 10% 10 5% 162.89 259.37 10% 10-day cumulative change   62.89 159.37   2. Let's take a scenario where the market is down 5% daily, and a 2x long leveraged ETF is traded: Days Daily market performance Expected index level Expected 2x leveraged long ETF level Daily ETF performance 0 0% 100 100   1 -5% 95.00 90.00 -10% 2 -5% 90.25 81.00 -10% 3 -5% 85.74 72.90 -10% 4 -5% 81.45 65.61 -10% 5 -5% 77.38 59.05 -10% 6 -5% 73.51 53.14 -10% 7 -5% 69.83 47.83 -10% 8 -5% 66.34 43.05 -10% 9 -5% 63.02 38.74 -10% 10 -5% 59.87 34.87 -10% 10-day cumulative change   -40.13 -65.13   3. Let's take a scenario where the market is down 5% and up 5%, and a 2x long leveraged ETF is traded. Days Daily market performance Expected index level Expected 2x leveraged long ETF level Daily ETF performance 0 0% 100 100   1 5% 105.00 110.00 10% 2 -5% 99.75 99.00 -10% 3 5% 104.74 108.90 10% 4 -5% 99.50 98.01 -10% 5 5% 104.48 107.81 10% 6 -5% 99.25 97.03 -10% 7 5% 104.21 106.73 10% 8 -5% 99.00 96.06 -10% 9 5% 103.95 105.67 10% 10 -5% 98.76 95.10 -10% 10-day cumulative change   -1.24 -4.90   These are the types of results you can expect if you hold a leveraged ETF. So, an investor must not get deceived by the vocabulary of the ETF, i.e., 2x isn't the 2x that you think. Traders for making quick short-term gains have used leveraged ETFs.  Suppose an investor predicts that the price of natural gas will increase in the coming days or weeks, then investing in a leveraged ETF to enhance the return is sensible if the prediction is correct. However, if it's the other way around, he can buy some inverse leveraged ETFs to maximize his gains and thus act as a hedge to prevent potential losses.  If the prediction is wrong, the losses are magnified by such ETFs.  How do Leveraged ETFs Work?  Let’s say an investor buys shares of a 3 times-leveraged ETF for $200. If the underlying index rises 20% in a single session, the investor gains 60%, boosting the investment to $320.  Leveraged ETF resets every day for the next session. If the underlying index drops 10% the following day, the position's value declines 30% to $272.  As and when the stocks and market indexes fall or rise over time, longer-term positions in leveraged ETFs can become very challenging to hold, thanks to amplified gains and losses.  Who should invest in Leveraged ETFs? Leveraged ETFs are best for seasoned investors with a comprehensive understanding of the risks involved and how it works.  Leveraged ETFs offer an opportunity to add significant value to a trader's overall investment strategy who has an appetite for risk, significant experience, and wish to amplify daily returns in both uptrend and downtrend.  When volatility in the market increases, leveraged ETFs can be effectively used for hedging purposes. Leveraged ETFs can open up many new opportunities if the objective is to hedge your trades and enhanced returns.  Remember to research leveraged funds with caution, as losses can be magnified similarly to returns.  Proceeding with caution and doing due diligence before acting is the way to go. FAQs What is a leveraged ETF? Leveraged ETFs generate a multiple of returns given some return of the underlying index.   Who Should Invest in Leveraged ETFs? Leveraged ETFs are best for seasoned investors with a comprehensive understanding of the risks involved and how it works.  How Do Leveraged ETFs Work?  Leveraged ETFs offer an opportunity to add significant value to a trader's overall investment strategy who has an appetite for risk, significant experience, and wish to amplify daily returns in both uptrend and downtrend.  Consult our expert advisor to get the right plan for you TALK TO AN EXPERT