Tag Archives: mutual funds

Educases are a bucket of mutual funds, which allows an investor to buy a bucket of mutual funds, which are predefined combinations of funds based on the calculated risk and returns parameters. Why Educases are needed? There are more than 4,500 mutual funds we have in the industry. But which fund will suit which type of investor based on the risk could be a difficult task. So, here in EduFund, we have a bucket of mutual funds for every investor, known as Educases. Strategy behind Educases A team of EduFund experts sits together and decides what will be the parameters of risk and returns to meet the objective. Parameters like standard deviation, alpha, share ratio, returns, etc. Then, a report is run over 4,500 mutual funds to extract the top mutual funds based on different risks.  What if the fund is new? In that case, if the fund is active/passive, then we wait for some quarters to check its performance compared to the benchmark & its peers; and the fund's expense ratio. That's not all; we also look for other parameters. And then, the past data of these educases are back-tested to check the volatility in returns and how the portfolio has performed under different market conditions. We try to ensure that the portfolio should face less volatility than the market and should remain in sync with the risk and returns parameter. These educases are rebalanced to make the best fit for the risk. In the end, a monthly review is done on these educases. For example, suppose the equity market is corrected by more than 15%. In that case, we try to ensure that your equity portfolio in the aggressive risk category should not be corrected by that much. Advantages Risk-oriented – These educases are designed to meet the investor's risk profile. For example, if you are young and you are planning for the long-term, then there is an aggressive risk educase is for you.  On-going monitoring – These educases are monitored on a regular basis so that it meets the risk and returns profile of the investor. Auto rebalancing – These educases are auto-rebalanced. Suppose the risk of one fund in educase is increased by 15%, then the allocation of the educases having that fund will be rebalanced accordingly. Well-diversified – Educases contain multiple mutual funds in one particular basket. So, having a well-diversified portfolio is one of the best quality of educases. No cost – These educases are free for every investor to invest in. EduFund does not charge anything for these educases. So, you don't need to pay a single penny to invest in this educases. How can you invest? Download the EduFund app, fill in the basic details, and then the app will calculate your risk profile and the suggested amount for your desired target. Then, you can go ahead and explore the funds or go to the section on Educases. There you can see the suggested educates with the past performance of these cases including its holdings of mutual funds as per your risk profile. Conclusion If you are looking for a diversified mutual fund investment as per your risk profile, then Educase is the right choice for you. FAQs What are Educases? ducases are a bucket of mutual funds, which allows an investor to buy a bucket of mutual funds, which are predefined combinations of funds based on the calculated risk and returns parameters. It is designed by EduFund experts to help parents save and invest for their child's education based on their risk appetite as well as the age of their child. There is an Educase for parents whose children are in 3rd grade as well as 12th grade. What are the advantages of investing in Educases? Advantages Risk-oriented – These educases are designed to meet the investor’s risk profile. For example, if you are young and you are planning for the long-term, then there is an aggressive risk educase is for you. On-going monitoring – These educases are monitored on a regular basis so that it meets the risk and returns profile of the investor. Auto rebalancing – These educases are auto-rebalanced. Suppose the risk of one fund in educase is increased by 15%, then the allocation of the educases having that fund will be rebalanced accordingly. Well-diversified – Educases contain multiple mutual funds in one particular basket. So, having a well-diversified portfolio is one of the best quality of educases. No cost – These educates are free for every investor to invest in. EduFund does not charge anything for these educases. So, you don’t need to pay a single penny to invest in this educases. How can you invest in education? Download the EduFund App and start investing in Educases for your child's higher education. Let experts guide you towards a financially secure future!

What is a Balanced Advantage Fund? A balanced advantage fund is a fund that can invest 0-100% in the equity market or 0-100% in the debt market dynamically as per the prevailing market condition. For example - If a fund manager finds that the price of the equity market has gone up, he will tilt the portfolio more toward the debt market. Likewise, if the equity market trades at a discount, then the fund manager can tilt/shift the portfolio toward the equity market.  The valuation is the internal process of the fund. Based on valuation, the fund manager can take the call. This way, the fund manager can take the opportunity and change the asset allocation. The fund manager can go aggressive in the equity market or can also decide to play conservatively to reduce the portfolio's volatility. The aim is to minimize the portfolio's downside risk and maximize the returns.  Who should invest? Investors who are looking for long-term wealth creation. Investors who are not comfortable with the market volatility. Investors who do not want to face high volatility and looking for equity-like returns. Investors who are unsure which type of fund they should invest in, whether in the equity or debt-oriented fund. Risk-averse equity investors with an investment horizon of more than three years. Additional read: Financial mistakes to avoid Why should you invest? A balanced advantage fund is a dynamically rebalancing fund between two asset classes, i.e. equity and debt. It has the complete flexibility of rebalancing from 0-100% in both asset classes. It provides you with better risk-adjusted returns. It manages the equity market volatility and provides stability in the portfolio by diversifying the portfolio into the debt market. It offers you equity-like returns, which help your portfolio to grow at a much faster rate than debt funds and also helps you to beat inflation. Minimizes the downside risk and provides scope for growth by investing in the equity market. When should you invest? When the volatility in the equity market increases you do not want to have such high exposure to the prevailing volatility. When you want equity-like returns but do not want to face high liquidity. First-time mutual fund investor looking for long-term wealth creation. Conclusion Try to allocate some portion of your portfolio towards a balanced advantage fund if you want to reduce the portfolio's volatility. A balanced advantage fund is like a season fund. FAQs What is a Balanced Advantage Fund? A Balanced Advantage Fund can dynamically invest 0-100% in either the equity or debt market, depending on market conditions. Who should consider investing in Balanced Advantage Funds? Investors seeking long-term wealth creation, those uncomfortable with market volatility, and those unsure about equity or debt-oriented funds can benefit. Why invest in Balanced Advantage Funds? These funds offer flexible asset allocation, better risk-adjusted returns, and stability by diversifying into the debt market. They provide equity-like returns, growth potential, and risk mitigation. When is the ideal time to invest in Balanced Advantage Funds? Consider these funds when equity market volatility increases, and you want equity-like returns without excessive risk. What is the aim of Balanced Advantage Funds? The aim is to minimize portfolio downside risk, maximize returns, and adapt to market conditions, providing both stability and growth.

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 hope 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. FAQs What are Target Maturity Funds, and how do they work? Target Maturity Funds, also known as Target Date Funds, are investment funds designed to align with an investor's target retirement date. They automatically adjust their asset allocation over time, becoming more conservative as the target date approaches. How do Target Maturity Funds choose their investments? Target Maturity Funds typically invest in a mix of stocks, bonds, and cash equivalents. The asset allocation is determined by the fund manager and adjusts over time to reduce risk as the target date nears. What's the primary benefit of investing in Target Maturity Funds? Target Maturity Funds provide a convenient, hands-off approach to investing for retirement. They automatically rebalance to manage risk, making them suitable for investors who prefer a set-and-forget strategy. Can I invest in a Target Maturity Fund for a different financial goal, not just retirement? While they're primarily designed for retirement, some investors use them for other financial goals. However, it's essential to understand that the fund's asset allocation will still follow the specified target date strategy. What happens when a Target Maturity Fund reaches its target date? When a Target Maturity Fund reaches its target date, it typically becomes more conservative, shifting towards income-generating assets. Investors can choose to redeem their shares or reinvest in a new fund.

What is a mutual fund? A mutual fund is an investment vehicle or a trust wherein investors pool their savings and share a financial goal. The collected money is invested in shares, debentures, and other mutual funds. Do you want to know how mutual funds actually work and what the parties involved in it are? Continue reading to know more. The organizational structure of mutual funds in India? The structure of mutual funds in India has three tiers with few other significant components. Banks or AMCs don't just create these investment vehicles. Three main entities are involved: the Sponsor (creator of the fund), Trustees, and Asset Management Company (AMC). All the mutual funds are regulated by SEBI – Securities Exchange Board of India, and the investors who purchase or invest in these funds are termed "Unitholders". 1. A sponsor Is a person or an entity that has the right to set up a mutual fund scheme to generate returns or income through common fund management. They are for the first part of the mutual funds' structure in India. The Sponsor has to get the mutual fund scheme approved by SEBI first. The Sponsor needs to create a Public Trust under the Indian Trust Act 1882 as they cannot work alone. A Sponsor's role is crucial for a mutual fund and should have high credibility. The eligibility criteria to become a sponsor are The Sponsor must have made a profit in 3 out of the last five years, including the immediately preceding year. The Sponsor must have five years of experience in financial services. The net worth of the Sponsor must be positive for all the preceding five years. Out of the total net worth of the AMC, 40% must be participated in by the Sponsor. 2. Trust and Trustees The Trust and the Trustees form the second central part of the mutual fund structure. Trustees are also the "protectors of the fund" appointed by the Sponsor. The role of the trustees, as the name suggests, is to maintain the investors' trust and work on the fund's growth. According to the SEBI regulations, Trustees are supposed to provide a report on the fund and the functioning of the AMC on a semi-yearly basis. The Trustee is responsible for supervising the entire functioning of the AMC and regulating the mutual funds' operations. Due to the rule of transparency, the AMC cannot float a new mutual fund scheme without the permission and approval of the Trust. The Trustees are required to be registered under SEBI. SEBI further regulates their registration by either suspending or revoking the registration if found breaching any conditions. Additional read: How to choose the best mutual fund scheme? 3. Asset Management Companies (AMC) The AMC is the third part of the mutual fund structure. An AMC is responsible for floating various schemes of mutual funds in the market, keeping in mind the investors' needs and the market's nature. They take help from bankers, brokers, RTAs, auditors, etc., and get into an agreement with them while creating a new scheme. The AMC creates mutual funds, which also oversee its development along with the Trust and the Sponsor. The AMC is responsible to manage funds and provide services to the investor. 4. Custodian A Custodian is an entity responsible for the safekeeping of Securities. They are registered with SEBI and are responsible for transferring and delivering units and securities. They manage the account of investment of the Mutual Fund, wherein investors can also track their investments and update their holdings. Along with safekeeping, custodians also facilitate the collection of corporate benefits such as bonus issues, interest, dividends, etc. 5. Registered Transfer Agents RTAs act as the bridge between Fund Managers and Investors. RTAs are SEBI-registered entities that process mutual fund applications, assist with investor KYC, manage and deliver periodic investment statements or reports, update records of investors, and process investor requests. 6. Other Participants Some other typical participants in the mutual fund structure are bankers, auditors, brokers, mutual fund distributors, etc. Brokers and distributors usually sell mutual fund units to prospective investors. Brokers also provide financial and investment advice after a thorough analysis, study, and prediction of market movements. Auditors are independent internal watchdogs who audit and scrutinize account records and annual reports of various schemes. Bankers play an essential role in collecting agents on behalf of the Fund Managers. Overall, India's mutual fund's structure is very well organized and highly regulated by SEBI. Moreover, the rule of transparency boosts the safeguarding of Investors' money. Nobody in the structure of mutual funds in India can misuse investors' money and utilize it for anything other than what is specified in the investment objective of that fund. FAQs What role does SEBI play in the structure of mutual funds in India? SEBI, or the Securities and Exchange Board of India, regulates, formulates, and supervises mutual fund policies in India to protect investors' interests. What part do AMCs play in mutual fund structure? AMCs, or Asset Management Companies, pool money from various investors and invest them in different securities like bonds, stock, commodities, govt. securities, etc. How do I invest in mutual funds online? You can simply download the EduFund App ➡️ sign up ➡️ explore saving options based on your goal, risk levels, time horizon, etc. ➡️ pick a plan ➡️ start investing. What is a mutual fund? A mutual fund is an investment vehicle or a trust wherein investors pool their savings and share a financial goal. The collected money is invested in shares, debentures, and other mutual funds. What are some ways to invest in a mutual fund? There are two ways to invest in a mutual fund - Lumpsum and SIP. Lumpsum is one-time investment while SIP is a recurring investment strategy where the user pays a set amount every month. Both are effective ways to invest and create wealth for your family's welfare. What is the organizational structure of the mutual fund? The structure of mutual funds in India has three tiers with few other significant components. Banks or AMCs don’t just create these investment vehicles. Three main entities are involved: the Sponsor (creator of the fund), Trustees, and Asset Management Company (AMC). All the mutual funds are regulated by SEBI – Securities Exchange Board of India, and the investors who purchase or invest in these funds are termed “Unitholders”.

Did you know that only 0.18% of people in India invest in equities? Our parents, grandparents, and grand grandparents have been taught to invest in FDs, real estate, gold, LIC, and PPFs. This tradition of investing in safe assets is hard to break. Ways to educate your parents about the investment scenario in India 1. Tell them about the benefits  The biggest benefit of investing is the opportunity of growing your wealth. Investing in a disciplined manner can help investors grow their savings and reach financial goals. You might not be able to duplicate the net worth and investment of growth of stalwarts like Rakesh Jhunjhunwala but investing small amounts of money in equity-based markets can yield significant returns over the years. It can help your parents build a retirement fund and beat the inflationary prices of general goods and services.   Other benefits of investing in stocks, mutual funds, and ETFs are liquidity (which means you can withdraw your money anytime you want), diversify your wealth (you can invest in a number of stocks that belong to different industries), opportunity to get dividends (some stocks and companies give dividends to their long-term investors) and interests that beat inflation. Another benefit is that you can start with a small sum and scale up after gaining a better understanding. Markets have enough space for small and big investors to meet their financial goals!  2. Spread awareness about Inflation   Inflation has broken the projections given by RBI at the beginning of 2022! It has remained uncomfortably high across the globe and pushing the prices of goods and services to an all-time high. The only way to protect your purchasing power is to start investing and making your money work for you. Consider this, money in your bank account gets an average interest rate of 2-3%, FDs have an interest rate of 5-6% while inflation is raging at the rate of 6-7% in India alone.   Inflation attacks your money in savings and FDs, which is why exploring newer investments is a smart way to beat inflation and protect your money in the long run.     3. Accessibility to investing and tracking   Investing is becoming easier and easier due to the bloom of fintech start-ups and financial influencers in India. The wealth of knowledge about investing, saving, and financial planning can be overwhelming but is a great way to educate a country that has traditionally shied away from investing. There are thousands of apps that help Indians invest in a number of financial instruments. As investors in India, all you need is a PAN card, an Aadhar card, and a banking account to get started on any investment app.   From investing in Mutual funds, and digital gold to US stocks and ETFs, the opportunities are endless! You can track your investment with no brokerage fees, and absolute transparency and get professional guidance from experts on how to start investing based on your financial goals.   However, it's important to be aware of where you are investing your money and to check that the App or platform is SEBI registered. Make sure to take all the precautions and understand the risks that are associated with investing.    4. Encourage them to secure their savings   While money in your bank account or FD is safe, it is not enough to keep up with the growing prices. The cost of products like oil, vegetables, transport, and education is growing at a higher rate than the average income across India. To bridge the gap, you can start exploring the investment market and diversify your funds. The market has enough opportunities for risk-averse investors, retired individuals, and newcomers! With proper guidance and an abundance of information, you can protect your savings via investing.   These are some ways to educate your parents about the investment scenario in India. Over the years, millions of Indians have entered the investment market of India. You and your parents could also benefit from the market if you start investing properly and in a disciplined manner. Don’t start randomly, study the market, do your research, and consult a professional to minimize risks and protect your savings!  FAQs What are some of the most preferred investment options in India? Gold, Real Estate, and Fixed deposits are the three most preferred investment options in India. How much does an average Indian invest? The average India invests nearly INR 5000 monthly according to a survey by AMFI. At what age can Indians start investing? Indians can start investing by the age of 18 years.

College costs, University fees, and related expenditures are fast growing worldwide, and education costs in Dubai will be no exception. Indeed, the UAE has been one of the world's top five most expensive university pricing areas. Because of inflation, the cost of your child's education in the future may be substantially higher than the cost of education now. Regardless of mounting academic expenditures, as a parent, you would want to create the best educational opportunities for your child to help them lead a successful life. So, what are your plans to ensure that you are making efforts to save adequate funds for their further education while still preparing for retirement and personal needs? Ways to fund your child's masters in Dubai 1. Approach a Financial Advisor A financial advisor helps clients with how, where, and when to invest. They may guide you to find a comprehensive financial plan or specific investment vehicles to reach a significant financial goal. You can get assistance from a skilled financial expert on the below aspects: Make a list of your life's goals, priorities, and fundamental economic beliefs. Set financial objectives. Set priorities and allocate suitable amounts of surplus revenue to specific purposes. Choose appropriate investment schemes to assist you in meeting your goals. Financial advisors from EduFund help Indian parents plan for their children's future. They help parents choose the right savings plans that suit their child’s educational aspirations. You may use the EduFund app to plan and save for your child’s school (short-term goal) and college expenses (long-term goal).  You may also modify your goals to your individual needs. Parents can use the app to save for their child’s education by investing in mutual funds and US stocks. The app also has a unique college cost calculator that tells parents the future costs of college and helps them plan and save early towards it. 2. Begin early savings The most straightforward method to afford your children's educational aspirations is to begin early; the sooner you start, the better!  You must begin saving as soon as your child is born; if you've not already started to save, now would be the apt time to focus on your savings. Even small monthly savings add up to a significant amount over time. You may begin with as little as Rs 5000 each month, which can aggregate and develop to about Rs 10,00,000 in 18 years if your investment grows at 7.00% per annum. Compound interest has more time to work when the horizon is longer. 3. Make your money speak for you Deposit account rates have always been lower than the current inflation rate. Furthermore, education inflation is much higher than household inflation; thus, it is critical to invest in assets that offer better returns. Mutual funds are an excellent solution for combating inflation and reducing the risk. A well-diversified selection of international mutual funds should allow you to accomplish your investment objectives with little effort. Mutual funds are generally regarded as a secure investment that enables the client to grow their savings with little risk.  A mutual fund invests in several assets; even if one of the sectors or assets performs badly, the overall investment is not affected by that.  4. Maintain your commitment Investing is a tedious process, but it is ultimately profitable. Honoring your commitment throughout the investing period is critical to the success of your kid’s savings plan. There will be times when appealing investment prospects will entice you, or market volatility will reduce your investment value; do not be distracted and stick to your commitment. Markets will be unpredictable in the short and medium term, but they will reward you with significant profits in the long run. Remember that the goal of this investment is to save for your child's higher education. Additional read: How to plan child's master's in the UK College costs vs. earnings College prices in US regions have risen by 169% since 1980, while incomes for employees aged 22 to 27 have increased by 19%. The average cost of an overseas education ranges from $27,330 for government in-state university graduates to $55,800 for privately funded university students. Tuition expenses, accommodation, grants for books and classroom supplies, transportation, and other incidental expenses are all included in college costs. Tuition costs for an entire year at universities in the UAE can range from US $13,000 to $35,000 for international students. The costs for some specialized courses may be expensive as well. Most colleges in the UAE charge an application fee of around $55. Dubai University Fee as on 2022 (Fees Structure In AED) Conclusion It is important to invest early to meet the education expenses of your child. Understanding the present financial situation and developing a workable budget strategy is critical. Hence, it is crucial for parents to set aside some money each month to save for their child’s education in the long term. FAQs Should you invest in your child's education? Yes, it is important to invest in your child's education as the cost of studying across the globe is increasing. It takes Rs. 30 lakhs to raise a kid in India before they even enter college. Universities' costs are rising high can be over 1 crore as well. What are the best investment options to save for your child's education? Some of the best options are Mutual Funds. A mutual fund is a great long-term investment option that is extremely affordable and cost-effective. Parents have to start with just 3000 monthly and save up to 15 lakhs by the time their child is off to university. Why is the general cost of studying master's in Dubai? The cost of studying master's in Dubai depends on your program and university. It starts with AED 30,000 and can go up to AED 100,000!

Once you have a clear understanding of the benefits of mutual funds and have decided to begin investing, you may look for the appropriate mutual fund schemes to help in your financial growth. Various mutual fund categories are suitable for different investment horizons, assume multiple amounts of risk, and seek different rates of return. So, the first thing you should do is decide clearly on specifics like how long you would like to invest, how much risk you would be able to face, and what type of profits you want. When you are certain of these basic points, it will be easier for you to choose the category of mutual fund scheme that is best for you. https://www.youtube.com/watch?v=uYlrsx9_yog&pp=ygUHZWR1ZnVuZA%3D%3D 1. Your mutual fund KYC According to the Prevention of Money Laundering Act (2002), the Know Your Customer (KYC) procedure is required for all financial institutions, including banks, insurance companies, and mutual fund firms. Simply put, the KYC procedure involves checking the background of anyone who wants to sign up as a client of these financial organizations. Establishing authenticity and making sure that the investments or deposits are made by a real person with valid identification is important. KYC can also assist in tracing any fraudulent transactions. 2. Start investing in mutual funds You can begin investing in any mutual fund company's schemes after your KYC is complete. You don't need to do many KYCs for various mutual fund companies. You can invest using either the offline mode or the online option Start Investing in Mutual Funds 3. Investing in mutual funds offline The majority of options for investing in mutual funds in offline mode only offer regular plans of the schemes. A portion of your gains is removed from your investments in a mutual fund’s Regular Plan and paid to the agent. However, there is no broker engaged if you invest in a mutual fund scheme's Direct Plans. As a result, there is no commission to pay, which lowers the expense ratio. The difference between an equity fund's Direct Plan and Regular Plan returns often stays at or below 1%. Over time, this 1% difference may add up to a significant sum. You can invest in mutual funds offline through distributors, banks, and NBFCs by going to the offices of RTAs like CAMS and Fintech, mutual fund companies, etc. Details are as follows: Registered Investment Advisors: To invest in mutual funds offline, you can also get in touch with SEBI-registered financial advisors in your area. You can invest in Direct Plans with them. However, there will be a price. This fee may be up to 2.5% of your capital investment or a predetermined sum of up to Rs. 1.25 lakh. Banks & NBFCs: Mutual fund programs are also offered offline by several banks and non-banking financial companies (NBFCs). To begin your investment journey, you must go to their office and speak with a representative, often known as a Relationship Manager (RM). They do, however, place your money in a Regular Plan so they can profit from your investments for the rest of your life. Therefore, even if the mutual fund schemes are not right for you, the RMs and agents may try to convince you to invest in them so they may earn a bigger fee. Mutual funds Distributors: Reaching out to a specific distributor of mutual funds is an additional offline option for investing in mutual funds. However, your money will be placed in a Regular Plan. Mutual Fund Companies: You could also invest offline by visiting the office of the mutual fund company and investing in the schemes there. The difficulty is that you must complete all the paperwork by yourself. Additionally, you have to go to each company's offices separately if you would like to invest in a few of the best plans offered by various mutual fund businesses. RTA Offices: By visiting the offices of SEBI-registered RTAs like CAMS and Fintech, you can invest in mutual funds in the offline form as well. A group of fund houses is served by CAMS and Fintech alike. As a result, if you go to the CAMS office, you can only invest in the fund firms they work with. How to Track the Performance of Mutual Funds? Read More 4. Investing in mutual funds online Online investing will be significantly quicker and less laborious than offline investing. You can choose a mutual fund that suits your goals by visiting the website of your chosen fund house. Enter the required information and wait for the OTP to arrive on your registered mobile number. After that, you may enter the amount and choose whether you wish to invest via SIP or lump sum. You have two options for making the transaction: using your UPI ID or online banking. For most fund houses, this is standard procedure. However, you will need to sign up to each fund house's website separately if you would want to invest in a few of their plans. However, the EduFund app has a number of mutual fund schemes offered by different asset management companies all in one app. You can choose the option that suits you and begin investing. To go with it, you can also talk to financial experts on the app who will guide you to invest in the right schemes that suit your risk profile and investment strategy. Conclusion The mutual fund market has been working hard to attract additional investors ever since it began. Earlier, completing the documentation for mutual fund investments used to be a laborious process, and completing your KYC required you to travel to an AMC or RTA office. But thanks to the introduction of technology, all of these inconveniences are now gone. It can still be tough to choose the right plan for you. FAQs What are mutual funds, and how do they work for beginners? Mutual funds are investment vehicles that pool money from multiple investors to buy a diversified portfolio of stocks, bonds, or other assets. To start, research, choose a fund, and invest through a brokerage or directly with the fund company. How much money do I need to start investing in mutual funds? Many mutual funds have low minimum investment requirements, some as low as $100. However, the minimum amount can vary, so check with the fund company for specific details. Where can I buy mutual funds? You can buy mutual funds through brokerage accounts, online platforms, or directly from the fund company. Consider factors like fees and convenience when choosing where to invest. What should I consider when selecting a mutual fund to invest in? Consider factors like your financial goals, risk tolerance, fees, historical performance, and the fund's investment strategy when choosing a mutual fund. Are there tax implications when investing in mutual funds? Yes, there can be tax implications, such as capital gains and dividends. It's important to be aware of tax consequences and consult with a tax advisor for guidance.

The mutual fund industry has seen immense growth in recent years. According to numerous statistics, there has been a 5 ½ fold increase in the last ten years. This is simply because seasoned investors have realized the potential of mutual funds and have now started investing in them through SIP or Systematic Investment Plans. The vast universe of mutual funds often seems daunting to new investors because of the large investment horizon and involved risk profile. As such an investor needs to know whether he is investing in the right mutual fund or not and whether the investments can meet his set targets and achieve desired goals. There are normally two ways to go assuming you are interested in investing in the best mutual funds. The first is by yourself and the second is through a financial advisor.  An all-important question at such times is whether an investor has the required know-how to conduct a proper mutual fund analysis and determine whether he is on the right path.  For that, you can take the help of a reputed financial advisor or financial expert. This service is available on the EduFund app where both new and seasoned investors can opt for the services of the SEBI registered investment advisors and experts in investment management for investing in the right fund. The app also helps to stay updated on the mutual fund investment market. Start Investing in Mutual Funds Parameters that help to analyze whether you are investing in the right mutual fund 1. Expense ratio The expense ratio is charged annually by the mutual fund for managing the investor’s money as a percentage of total assets. The expense ratio at the end of the day will reduce the available returns hence the investor must look for mutual funds that have a low expense ratio. Minimize the expense ratio by opting for direct mutual funds as it does not charge broker commission or intermediary fees. Also, compare the expense ratios of preferred mutual funds as it will help to decide whether the investment is the right one or not.  Download App and Start Investing 2. Performance of mutual fund against a set benchmark Each mutual fund scheme has a set benchmark that it tries to outperform. The investor must check for the benchmark to understand the percentage return that is considered a good performance. Compare both benchmark and actual performance to identify whether you have been investing in the right mutual fund. If a mutual fund consistently generates more returns and outperforms the benchmark index then the investor can know that he is doing right by his investment portfolio. SIP Plans for Child Education Read More 3. Level of risk Mutual funds are subject to risk and checking the level of the risk factor for every scheme is as important as checking for the expected returns. The risk is often defined in terms like low, high, moderate, moderately high, and moderately low.  Generally, the schemes disclose the level of risk to make the investor aware of the involved risk factor. Investors must ensure that the higher the risk higher is the return on the investment commensurate with the risk. https://www.youtube.com/watch?v=uYlrsx9_yog 4. Fund’s history Look at the fund’s history to know whether you are investing in the right mutual fund. Knowing about the long-term previous performance of mutual funds is the right step in determining whether the fund has generated good returns over the last few years.  If the fund has seen one or two down cycles over the last five years and has regrouped once again to give solid returns then investors must believe that their investment is at par. Calculate Returns Generated 5. Portfolio turnover ratio The higher the Portfolio Turnover Ratio, the higher the buying and selling of the assets. This leads to higher transaction charges or brokerage fees. The portfolio turnover ratio helps to minimize the net returns from the investment. Investors must calculate the net return and compare funds so that they can know whether their investments are on the right path. 6. Fund manager The mutual fund manager can help in carrying out the necessary due diligence that will boost the chance of better gains. The investor must look at the performance history of the manager to know about his experience in handling mutual fund schemes.  A good reputation of the fund manager increases the investor’s confidence in the related schemes and helps him to know he is investing in the right funds. Conclusion An investor can determine whether he is investing in the right mutual fund if he can achieve higher returns at comparatively less risk. Selecting the right fund might seem a daunting task at the onset but a little research and understanding go a long way in finding the best mutual fund investments. FAQs How do I know which mutual fund is best for me? To determine the best mutual fund for you, consider your investment goals, risk tolerance, investment horizon, and financial situation. Research fund performance, categories, and managers' expertise. Consulting a financial advisor can provide personalized guidance based on your needs and preferences. What type of mutual fund should I invest in? The type of mutual fund you should invest in depends on your goals and risk tolerance. Equity funds offer growth potential but involve higher risk, while debt funds focus on stability. Hybrid funds combine both. Consider your needs and consult a financial advisor for personalized advice. How do you know whether you should invest in a mutual fund? Evaluate your financial goals, risk tolerance, and investment horizon. Research the fund's performance, expenses, and manager's expertise.

Investors always look for better investment opportunities to get regular returns. It helps them save taxes and create long-term wealth. While there are many investment options generating profits, they come under taxation according to income tax laws.  But, an investor can also save income tax by investing in a tax saver mutual funds. This article will explain what a tax saver mutual fund is and what are the numerous aspects that can help you make a good decision for investment.  https://www.youtube.com/watch?v=x9stEF-4ZuY Let’s understand the tax saver mutual fund.  Tax-saver mutual funds are just like any other mutual fund scheme. But, diving further into the concept of tax-saver MFs, let’s understand mutual funds.   A mutual fund is an investment fund that is professionally managed. It takes money from various investors to buy securities. It is generally used in India, Canada, and the United States. You can consider a mutual fund as a trust that takes money from many investors sharing a common investment objective. Now let us again come to tax saver mutual funds.   A tax-saver mutual fund helps investors save taxes. This initiative qualifies for a deduction of tax of up to rupees 1.5 lacks. Through these mutual funds, one invests in growth-oriented equity markets. It helps investors to get good returns and build long-term wealth.   Let’s understand this with an example. If you want to invest rupees 60,000 in a tax-saving mutual fund, this amount will be eliminated from your entire taxable income. It will reduce your tax burden.  How does a tax saver mutual fund work?  Tax-saver mutual funds collect money from many investors. They invest the money in the equity market. The equity market is the stock market or the share market which is a combination of cells and buyers of stocks. They may also include the securities that are listed on public stocks.   A tax-saver mutual fund includes a lock-in period of 3 years. It means that you cannot withdraw your money for 3 years. When you want to invest in mutual funds through the systematic investment planning route, the lock-in period for every installment remains to be 3 years.   When you are redeeming the units of a mutual fund, you can just get the units that have finished the period of lock-in. You can also redeem them at the present net asset value. Net asset value refers to the value of the fund of the investment without its liabilities. It is further divided by the shares outstanding.   You can invest some random amount or choose options for regular installments through systematic investment planning (SIP). When you invest with the help of installments, your installment is going to mature past 3 years from the date you have made it. Tax Benefits on Child Education Fees Read More It indicates that your last installment will be kept for 3 years from the date of investment, which is different from the first installment's maturity date.   The tax-saver mutual fund is the best option if you want to save tax. It offers many advantages because it comes with the unique feature of tax exemption. If you want to invest in a tax-saving mutual fund scheme, you need to learn and research the involved risks with every scheme.   You need to know that you do not have any kind of upper limit on the investment tenure, so you can continue giving your investment in the scheme if it seems to be profitable for you. Who should invest in tax-saving funds?  Tax-saving funds come with lots of good features and have been proven to give remarkable returns, but they may not be perfect for everyone. Here's who can invest:   If you are young and are paying taxes, you can make the most out of the dual benefit of investing in a tax-saving mutual fund.   Older people need to consider other investment options that come with no or lower capital risk.   Investments need to possess a flexible long-term horizon for reaching the best benefits or assuring better returns. So, it is recommended to invest for a duration of approximately 6 to 7 years to get long-term advantages.   Investors also analyze the track record of their fund after considering their investment based on their risk appetite and financial goals. So, it is ideal for young investors who can remain invested and take the best benefits. FAQs Which SIP is good for tax savings?  ELSS is the best SIP for good tax savings.   Can mutual funds be used for tax savings?  Yes, a tax saver mutual fund can be used for saving tax to a great extent in the long run.   Which is better, SIP or ELSS?  If you want to invest at the end of a financial year, then a tax-saving mutual fund will be the best option. But, if you want to have a constant source of income then SIPs are the best option. Who should invest in tax-saving funds? If you are young and are paying taxes, you can make the most out of the dual benefit of investing in a tax-saving mutual fund.   Older people need to consider other investment options that come with no or lower capital risk.   Investments need to possess a flexible long-term horizon for reaching the best benefits or assuring better returns. So, it is recommended to invest for a duration of approximately 6 to 7 years for getting long-term advantages.   How does a tax saver mutual fund work? Tax-saver mutual funds collect money from many investors. They invest the money in the equity market. The equity market is the stock market or the share market which is a combination of cells and buyers of stocks. They may also include the securities that are listed on public stocks. TALK TO AN EXPERT

In the previous article, we discussed how much salary to invest in mutual funds. In this article, we will discuss how to invest in direct mutual funds Mutual funds are the best way to peek into different and top-performing securities without constantly researching and handpicking them. It allows individuals the flexibility to invest and maintain excellent returns. It invests in stocks, bonds, and equities by pooling money from different companies.  Under this, an investor buys shares either directly or through a broker. The price that an investor pays per share is the net asset value plus other fees. Mutual funds are redeemable, which is one of their best features. An investor can sell the securities anytime, and the fund generally transfers the payment within seven working days. Direct and regular mutual funds make investing in mutual funds easier.  The blog talks about how to invest in direct mutual funds carefully. So, if you are worried about how to buy mutual funds directly, the blog is worth a read. What do direct mutual funds imply?   Direct funds are those offered by the fund house or Asset Management Company. AMC invests funds from clients by utilizing capital by investing in liquid assets like Stocks, bonds, real estate, and partnerships.  In “Direct” mutual funds, no third party intervenes in the transaction, and the investor directly interacts with AMC regarding the funds. Since the fund eliminates any third-party interaction, there are no brokerage fees or commissions here, and it is the primary difference between direct and regular funds. SIP in Mutual Funds Read More How do direct mutual funds differ from regular funds?   Direct and Regular Funds are the two options for investors to invest in mutual funds. These two differ drastically. The table below can be useful if you're having trouble deciding which to pick.  Direct mutual fundsIndirect mutual fundsIn this, the investor directly deals with AMC to purchase funds In this, the broker connects the investor with AMCAn investor can purchase an investment plan directly from the website The broker helps investors to pick the best plans. Direct Mutual Funds do not provide any facilities. The broker helps the investor with the account setup, documentation, and other legalities. No brokerage fees.The broker charges fees for his expertise and assistance.  The Total Expense Ratio (TER) and Net Asset Value (NAV) are significant parameters that investors must check before choosing the proper funds.  What are some tangible advantages of direct funds?  These funds have a lower expense ratio that translates into higher returns.  It keeps compounding for several years   It is better than reserving funds under the same scheme  Figure out the best way to invest in a direct fund and multiply your wealth.  Source: pixabay Top 8 mutual funds to invest in India in 2022?  Are you searching for the best direct mutual funds to invest in India? Check this out!  As per Economic Times’s June 2022 research, the best mutual funds to invest in are:  Parag Parikh Long-Term Equity Fund  Axis Bluechip Fund  Mirae Asset Large Cap Fund  Kotak Emergency Equity Fund  UTI Flexi Cap Fund  SBI Small Cap Fund  SBI Equity Hybrid Fund  Axis Midcap fund  Before exploring investment schemes in direct mutual funds in India, check the category and investment objective.  What are open-ended mutual funds? Read More 3 best ways to invest in direct mutual funds  You can invest in direct Mutual Funds both ways, online and offline. Invest online if you wish to avoid the hassle of conducting physical visits.  You will need to meet the KYC eligibility before investing. You must attach the following documents to become KYC compliant:  Identity proof (Aadhaar card, driving license, or Voter ID)  A PAN Card  Address proof  A passport-size photo  https://www.youtube.com/watch?v=7hXeSyWLiZ4 You can invest in Direct funds via many options.  Investment in Direct funds through AMC To invest in this, choose the scheme you like. Post that follows the below steps:  Step 1- Make an AMC account  Step 2- By choosing Plan Type as “Direct,” select the scheme  Step 3- Choose between Dividend and Growth. Choose according to the investment objective.  Step 4- Select an investment Plan or Lumpsum  Step 5- Select between a Demat account or trading without one  Step 6- Choose the payment Mode  Step 7- Confirm the bank details- IFSC code, account number, account holder name, and account type  Verify the details, and you are all set to go! Conclude the transaction using the verified payment mode. Once done, you will receive a quick ping confirming the same.  Invest in direct funds through a broker  One of the ways to invest in direct mutual funds is through a broker.    Choose a broker or a registrar to assist you in the process. The mutual fund program you want to invest in needs to adhere to the list, and the registrar or broker must have it in their brochure.  If confused, you can invest in the Direct Mutual Fund Scheme through SEBI. It has multiple platforms for Registered Investment Advisors, and you can leverage these.  Visit CAMS and KARVY, and view the investment opportunities on the portals.    Check out the mutual fund's utility option  Mutual Funds Utility is your best option if you wish to invest and transact across multiple utilities. It is a shared platform of unique fund houses.  You can begin investing in multiple funds just by creating an account. To invest in direct funds through MFU, CAN is mandatory. CAN (Common Account Number) helps check all the mutual fund portfolios and provides a consolidated view. You can create a CAN ID in 3 easy ways:  STEP 1: Visit the official website of MFU India   STEP 2: Select the CAN criteria  STEP 3: Select the holding Type  And you are good to go!   These are some ways to invest in Direct Mutual Funds. You can choose from online and offline modes. Pick the best Direct Mutual funds scheme and invest carefully. FAQs What are direct mutual funds? Direct mutual funds are offered by the fund house or AMC, allowing investors to directly interact with the AMC without third-party intervention, resulting in no brokerage fees. How do direct mutual funds differ from regular funds? Direct funds involve direct interaction with the AMC, with no brokerage fees. Regular funds involve brokers who charge fees for assistance and account setup. What are the advantages of direct funds? Direct funds have lower expense ratios, higher returns, and better compounding over the years, making them a preferable choice for investing. What are the top direct mutual funds to invest in India? As of June 2022, some top direct mutual funds in India are the Parag Parikh Long-Term Equity Fund, Axis Bluechip Fund, Mirae Asset Large Cap Fund, and more. TALK TO AN EXPERT

‘Har Rishta Bola, Mere Naam Ki Coca-Cola' - is one of the most successful marketing strategies and ads India has ever seen. Every Indian has had Coca-Cola in his life and gone back for more!   This MNC has been present worldwide and has been doing great business since its inception and launch on 29th January 1892. The Coca-Cola Company (KO) is the most valuable soft drink brand in the world, with worldwide revenues touching 38.66 billion US dollars!  Coca-Cola is also available in nearly every country on the earth. Primarily due to its broad and comprehensive distribution system that ensures that the company's products reach their end customers quickly and efficiently.   It is also a brand with a high level of worldwide brand awareness. Customers worldwide trust the company and are more likely to choose it over its competitors like Pepsi, Keurig Dr. Pepper, or Red Bull. A highly successful marketing campaign has bolstered Coca-Cola.  While Coca-Cola continues to be the most common choice, the company also owns other well-known products and brands such as Sprite, Fanta, and Minute Maid which have been a huge success in the Indian subcontinent.   The company has experimented with minimal sugar and nil sugar products like Coke-Zero, and created beverages like iced teas and flavored water, in response to the rising demand for healthier beverages.  The Coca-Cola Company's shares (KO) are available for investment on the New York Stock Exchange, with all values in US dollars. Let's first look at some basic stuff associated with the company.  Latest market close$62.5752-week range50.17 - 63.02Dividend yield 2.81%Earnings per share$2.25Beta0.66Market Capitalization$ 272 billionAverage Volume (3m)19,665,333PE ratio 27.75 There are three ways in which you can invest in Coca-Cola from India  1. The direct way  You can trade in Coca-Cola from India by registering on a US brokerage account using apps that offer US stocks or foreign investment opportunities. You can either invest directly through its apps through a minimal brokerage or zero brokerage. All you need is a bank account, your Aadhar card/proof of address and your PAN card to get started.    2. The ETF way  Investing via ETFs in Coca-Cola is another way to invest in the company from India. ETF stands for Exchange-traded fund. It is a group of stocks and bonds compiled by ETF managers to help you invest more efficiently.    ETFs are similar to Mutual Funds and they are managed differently. ETFs are traded on a stock exchange like stocks and are a more efficient way to buy shares of big companies and an affordable way to enter a highly competitive market.   Some ETFs like Consumer Staples Select Sector SPDR Fund ETF, contain Coca-Cola as one of its top holdings. The ETF's holdings include food & essentials, retail, household items, food products, and other industries. You can easily invest in these through different investment platforms from the comfort of your home with no physical paperwork.    Another option for investing in Coca-Cola through investing in S&P 500. For instance, Coca-Cola is a part of the Motilal Oswal S&P 500 Index Fund; by investing in this fund, you can be a shareholder of Coca-Cola!  An exciting fact is that in order to invest in the above ETFs, you don’t need to create a US account! However, if you are planning on investing in MNCs, there are some benefits of creating a USA brokerage account so that you can track errors that directly affect your returns.   3. The Mutual Fund way  Mutual Fund is the third way to invest in Coca-Cola from India! There are various mutual funds that invest in a large set of companies. You can choose the kind you wish to profit from. There are no caps on investment in Indian rupees, there is no investment restriction.   Coca-Cola is included in several mutual funds, such as the ICICI Prudential US Bluechip Equity Fund but the exposure to this company is largely limited and the expense ratio can affect your returns.  The expense ratio is problematic because investors have to pay an additional expense charged by core global schemes in addition to the administration fee charged by Indian fund houses.      These are some ways to invest in Coca-Cola from India! The company is a global mammoth and being an investor with them comes with its own highs and lows. So, before you start investing your money, understand the risks involved before jumping the gun. FAQs How can I stay updated on Coca-Cola's performance and financial news? To stay updated on Coca-Cola's performance and financial news, you can utilize various sources. These include official company announcements, investor relations websites, financial news portals, business news channels, and reputable financial publications. Regularly monitoring these sources will provide you with valuable insights into Coca-Cola's financial health, strategic developments, and market trends, allowing you to make informed investment decisions. Are there any risks associated with investing in Coca-Cola from India? Like any investment, investing in Coca-Cola from India carries certain risks. These risks include fluctuations in the stock market, changes in consumer preferences, competitive pressures, currency exchange rate risks, and geopolitical factors. It's important to conduct thorough research, diversify your investment portfolio, and consider your risk tolerance before investing in any company, including Coca-Cola. Can I directly purchase Coca-Cola stocks on the Indian stock market? No, you cannot directly purchase Coca-Cola stocks on the Indian stock market. Coca-Cola is a multinational company, and its stocks are listed on foreign stock exchanges like the New York Stock Exchange (NYSE). However, you can invest in Coca-Cola indirectly through mutual funds or ETFs that include Coca-Cola stocks or by considering international investment platforms like EduFund that allow Indian investors to trade in foreign markets.

Mutual Fund vs FD is a long-standing debate in the financial arena. While one offers fixed and stable returns, the other offers a chance at wealth generation.  Fixed Deposits are the most popular and favored investment mode among Indian households. And why not! It feels safe to have an investment that guarantees a risk-free return. An FD allows you to put a lump-sum amount with the bank with a fixed interest rate and lay back for a good long period. Once the deposit matures, you can withdraw your money and enjoy the interest earned over the selected period.  Mutual Funds enable you to pool your money and earn a return. Every Mutual Fund has a portfolio manager who invests your money into stocks according to your risk appetite and ROI. Therefore, the return on Mutual Funds depends on the market conditions. Unlike fixed deposits, it does not have a lock-in period. Choosing the right investment journey for your child is the primary concern for every parent. If you are confused between Mutual Funds and Fixed Deposits, then look at both these investment options from various standpoints.  Inflation-adjusted rate of return  Inflation is the most crucial yet commonly ignored aspect of investment. It is the rate at which the value of your money decreases with time. Inflation reduces your purchasing power and creates financial instability.  In India, FDs do not offer an inflation-adjusted rate of return. The maximum rate of interest on FDs is 5% to 7%. However, the inflation rate in recent years has been recorded somewhere between 4-6%.  Inflation-adjusted return that you receive adds zero value to purchasing power. Instead, if the inflation rate goes higher than the interest rate, you will likely lose the money you have invested.  On the other hand, Mutual Funds are highly responsive to the market conditions. Also, they come with the benefit of compounding on SIP investments. You can start with an amount as low as Rs. 500, and your money will grow every month. Mutual Funds, especially equity-based mutual funds, are influential enough to adjust the impact of inflation on your money.  Risk Factor Fixed deposits feel safe on the surface because they are government-regulated. But, when it comes down to investing in your child’s education, the risk against this safety goes scary. The need of the hour is to grow your money. FDs may keep your money safe but add nothing to growth.  Mutual funds, however, allow you to mitigate the risk through portfolio diversification. You can identify your risk appetite and stash your money accordingly. Moreover, you have experts who guide you through your investment journey and help you attain your financial goals.  Tax Implications Tax payable on fixed deposits is subject to the Slab rate under the Income Tax Act, 1961, as amended from time to time. Also, the interest that you earn on FDs is tax-exempt under sec 80 TTB to the extent of Rs. 50,000.  Whereas, Mutual Funds listed under Capital Gains are taxable. The tax rate would vary depending on the Mutual Fund and its income. The duration for which the Mutual Funds are held before the sale is significant for taxation purposes.  Source: Freepik Liquidity  Keeping the persistent trend of Education Inflation in mind, it isn’t wise to lock your money into Fixed Deposits. Once you make a choice, you can not withdraw until maturity.  Mutual Funds come with no lock-in and are highly liquid. You can choose between a lump sum and a SIP investment. It enables you to start small but earns high market-based returns. You can take away your money at will! What are mutual funds? Read More Wealth generation With the pace at which the colleges are upscaling their fee structures, it has become challenging to keep up with the cost. Therefore, parents don’t just have to save but ensure wealth accumulation to pay for the price.  Unfortunately, fixed deposits fail here. The ultimate return you receive from an FD would fall far below the level of return you need. However,  if planned early and the right way, mutual funds are incredibly potent to help you reach your target. All you need to do is make the best out of the investment. Start early and extract the magic of compounding! Parents need to look at the broader picture when choosing an asset for their child’s education. Due to their low Inflation-adjusted return, fixed deposits are likely to fail as productive assets. And, it doesn’t matter how safe FDs are if they don’t help you meet your desired goals.  Mutual Funds offer you a safer opportunity to invest in stocks, especially if you don’t have the financial knowledge. Moreover, you don’t have to stress your pocket to invest. All you need is the magic of the 3Ps: planning, patience, and persistence! FAQs What is a Mutual Fund? A mutual fund is a financial trust that collects funds from investors and invests them into different instruments like stocks, bonds, and other money market instruments. How to invest in a Mutual Fund via the EduFund App? Step 1: Log in to the EduFund website or the EduFund app. Step 2: Complete your KYC and move ahead to create your investment account. Step 3: Choose the option of mutual fund investments. Step 4: Analyse your risk profile on the app by answering your household income and expense, the number of dependents you have, the highest level of maturity you have in terms of investments, your period of investment, and similar questions. Step 5: After answering the above questions, you will know what type of investor you are and the degree of risk you might be willing to take. The EduFund website or the EduFund app will suggest some mutual funds you might want to invest in, with a recommended SIP value. Step 6: Choose the fund and start investing. What is an FD? Fixed Deposits are the most popular and favored investment mode among Indian households. An FD allows you to put a lump-sum amount with the bank with a fixed interest rate and lay back for a good long period. Once the deposit matures, you can withdraw your money and enjoy the interest earned over the selected period. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Equity mutual funds are investment instruments that primarily invest in stocks of various companies across different sectors.   The aim of the fund manager is to maximize returns by allocating money among stocks with the help of screening criteria such as market capitalization or by investing in stocks of varying sectors.  Equity mutual funds are the riskiest category of mutual funds because of the high exposure (at least 65%, according to the rules laid down by the Security and Exchange Board of India) to equity markets.   However, this also leads to higher returns (on average) than other classes of mutual funds.  The risk involved in this investment arises from the general market conditions and the specific sectoral performance. A good option for investors looking to grow their capital over the long term, with considerable exposure to the stock market, is an Equity mutual fund.  Investment in these funds is possible through the SIP (Systematic Investment Plan) format and lump-sum format. Investors with different objectives and risk profiles have other options (among equity mutual funds) to invest in. Difference between Equity and Equity mutual funds  Direct investment into equity means purchasing stocks of listed companies directly through your Demat account.   In contrast, when you purchase an equity mutual fund, you are giving your money to the fund manager managing that fund to invest primarily in equity and some investment in other instruments to balance the fund.  While investing directly in equity, you have to decide which company to invest in and other related decisions. When you invest in equity funds, you choose to choose the fund, and the fund manager takes care of the further details, like the fund will constitute what companies' shares, in what ratio, etc.  Also, mutual funds offer diversification by giving us the option to make investments in diverse companies and sectors through an equity mutual fund, thereby exposing us to a more significant section of the market and possibly reducing our risk.   Investment in these funds is possible through the SIP (Systematic Investment Plan) and lump-sum formats. Investors with different objectives and risk profiles have other options (among equity mutual funds) to invest in. These are the main difference between direct equity and equity mutual funds investment source: freepik Different types of equity mutual funds 1. Categorization based on the market capitalization of companies Large-cap funds, Mid-cap funds, Small-cap funds, and Multi-cap funds.   Market capitalization tells us about the company's size; it is calculated as follows: Market Cap = Price of share * No. of shares outstanding  Companies having a market cap of more than Rs. 20,000 crores are known as large-cap companies. A mid-cap company has a market capitalization between Rs. 5,000 and Rs. 20,000 crores and small-cap companies have a market capitalization of less than Rs. 5,000 crores.  2) Sector 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.  3) Theme-based funds Theme-based equity mutual funds are pretty similar to sectoral funds because they invest in "themes" like ESG (Environmental, Social, Governance), Make in India, Digital India, and many other themes in the public and private sectors.  4) Focused funds Investments via these funds mean that more than 65% of investments are in equity only and related investments.  5) Contra funds Just as the name says, contra equity mutual funds follow contrarian investing methods – identifying potential market winners and investing in them.  6) Taxability-based categorization ELSS (Equity linked savings scheme) funds allow for deductions under section 80C of the Income Tax Act.  How do equity mutual funds work?  Equity mutual funds work simply. To state it in words, equity mutual funds invest more than 60-65% of their assets in stocks of different companies.  The fund manager tends to invest in names to maximize the overall return from the fund.  Are equity funds the same as mutual funds?  Equity funds are a type of mutual fund that primarily invests in equity shares of companies. FAQs Are equity mutual funds good? Equity mutual funds usually have a high potential to earn great returns among all mutual funds. However, with high returns, a high risk is also included. Hence, investors with a higher risk appetite are considered suitable for these funds. Which equity mutual fund is the best for me? Deciding the best equity mutual fund for oneself depends on a lot of factors that have been discussed above. However, here are some top options based on their annualized 5-year returns - PGIM India Midcap Opportunities Fund, Parag Parikh Flexi Cap Fund, Axis Midcap Fund, etc. Is equity mutual fund good as a long-term investment plan? Long-term investment plans bring wealth creation for investors. And that's where Equity Mutual Funds shine. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT