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Markets are never stable. Investors know that the market is cyclical, where it booms and corrects periodically. But what to do during extreme ups or extreme downs? Taking the wrong choice can cause a significant loss or completely erase all the wealth that you have previously created in your portfolio. This article will help you with some of the best investment strategies in a volatile market. Continue reading to know more What are the basic things you can do to deal with market volatility? Some precautions you as an investor can take to reduce the impact of overall market volatility on your portfolio. How? Do a periodical review of your portfolio. This helps you know the performance of the investments that you have chosen. It indicates the efficiency and effectiveness of your portfolio. It helps you analyze whether or not your investments align with your goals and objectives. Have a rebalanced portfolio. Periodically rebalancing your portfolio will help you minimize the overall portfolio volatility. A rebalanced portfolio will efficiently capture the up-market and the down-market movements. It is capable of efficiently controlling losses during major market corrections. Have a well-diversified portfolio. When starting your investment journey, you should ensure you have a well-diversified portfolio that helps reduce portfolio volatility. The assets will compensate for each other's performance in a diversified portfolio. Additional read: Myths about SIP investment What are the best investment strategies in volatile market? 1. Index fund An Index Fund invests in the company stocks of a benchmark index in the same proportion as the index. The fund does not intend to outperform the benchmark and move along the benchmark it is invested in. There is no active investment strategy or change in the fund’s portfolio. Therefore, the volatility is much lesser compared to other equity funds. The ideal investment horizon is 5-7 years and is best for investors with a low-risk appetite and who are okay with steady, stable returns. 2. Balanced fund Balanced funds are hybrid funds that provide investors with long-term capital appreciation with exposure to both equity and debt. There are options like aggressive hybrid and dynamic asset allocation funds (DAAF). A DAAF follows an intelligent asset allocation strategy within the fund. The debt-equity ratio is periodically balanced and changed based on market conditions and requirements. If the market is corrected and undervalued, the fund automatically increases the equity component and reduces the debt component with the growth forecast in mind. Whereas, if the market is overvalued already, the fund will reduce the equity exposure and increase the debt component to avoid the fund from facing heavy market corrections leading to a loss. 3. Debt funds The safest bet against market volatility is debt funds. You have options like corporate, municipal, short-term, etc. They are highly liquid and generate returns that beat inflation. This investment option is best for investors with a small investment horizon or in their retirement phase who depend on their savings and have a minimal risk appetite. 4. Staying invested long-term Volatility and market fluctuations are more evident in short-term horizons. Investing for an extended period and not paying attention to the short-term market movements helps your wealth creation objective. At the same time, you should have a strong strategy and a well-diversified portfolio. Again, do not blindly follow the buy-and-hold strategy. Please research before investing in any instrument and plan to hold it for an extended period. The bottom line is that a portfolio should have a mix of different investment instruments. There is a saying that "you never put all your eggs in one basket". This means that by investing all your money in one place, your entire portfolio is directly correlated to the movement of that instrument, in short, concentration risk. Different instruments give you benefits and varying returns from all the assets. Never sell your investments during extreme market volatility, even if your portfolio has significant losses unless you need liquid money. Instead, use this as an opportunity to invest more and acquire units of the instrument at discounted rates. This will help you average out your losses and generate good levels of return on your portfolio. Consult an expert advisor to get the right plan TALK TO AN EXPERT

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

If your child is planning to pursue higher studies in any professional sphere, you will have to be financially ready to shell out anywhere from Rs. 4-5 lakhs to Rs. 70-80 lakhs, depending on the course, institution, and country of study.  You also need to keep in mind that the banks will discuss the loan amount only after your child’s admission has been confirmed by the institute. Hence it becomes important to have rough estimates to work with, to do your homework well in advance, and understand what your loan eligibility is. List of questions you should ask before taking an education loan 1. Understand your costs Compare the various institutes and their fees, hostel fees, and additional charges, if any. Step One is having a thorough grasp of the total expenses that you are likely to incur across the entire duration of the course. If you are looking at international universities, remember to add travel costs as well. So get that number, and allow for a 5% - 10% buffer for any unexpected expenses. Compare the costs of the few institutes that your child is considering. This will help you arrive at the right estimate while working out your expenses. 2. Check with the bank on what components of the total expenses the loan will cover Different banks have different parameters. Some loans will cover only tuition fees, others cover tuition and hostel fees. Some may even include your travel costs. Make sure you are well aware of what is being covered when discussing the loan amount. 3. Find out what percentage of the total cost will be given as a loan That means the loan will not fund your full expense. Usually, a bank will fund 80% of the tuition fees / total expenses. You will have to fund the other 20% as a down payment. Additional read: Financial mistakes to avoid 4. Check which courses and institutions are eligible for education loans This is an important consideration, as if your institute is not on the list, getting an education loan will be a challenge. 5. Check if your bank needs collateral Most nationalized banks in India and large private banks will require collateral that is 3-4 times in value of the loan you plan to take. Check what your bank is expecting. Additional read: Does education loan impact student loan interest rates? 6. Will the loan require a guarantor? This is a common practice, especially for overseas education loans. It is the bank’s way of assuring the loan is paid back. 7. Find out the loan repayment policy Education loans typically start repayment only after the course ends and the candidate starts work. Banks usually provide a grace of 6 months to one year post the course completion or till the time the candidate gets a job. Do note that this time period cannot be indefinitely extended even if the student is unable to find employment. https://www.youtube.com/watch?v=4gTQkdePOWM 8. What is the loan tenure? The smaller the loan amount, the shorter the tenure.  And this tenure will change subject to the changing interest rate of the loan, so you must track the rates on a regular basis. 9. Is there a processing fee? This fee is usually a percentage of the loan amount. Check on this and see if you can get a waiver. If your loan amount is large, your processing fee will be large too, and you will have to arrange for this along with the down payment that you will have to make towards your part of the loan. Additional read: What are blue-chip stocks? 10. How much of this education loan can I self-fund? If you start investing and planning well in advance, you can actually partially fund the cost of education. This is important as no loan is free money, you have to pay it back, and interest rates keep going up year after year. Check out the College Cost Calculator to see how much you need to spend and how you can save for the future cost of your child’s education.  With some smart planning and investment, you can actually reduce the education loan burden on your family. To know how you can do this, check out our link on savings and investments here. While you ask these questions before you take the education loan, you must also check out if your child is eligible for scholarships. Applying for these well in time and winning the scholarship will mean you will have to borrow that much less. After all, every rupee saved is a rupee earned. Consult an expert advisor to get the right plan TALK TO AN EXPERT

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

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

All investments are associated with risks. Yet, the risk is not uniform, and it's essential to be aware of the different levels of risks linked with all types of investment instruments. This is why the first thing to consider before investing is how much of a risk appetite has – how much risk one is willing to take. Want to know the best investment options for risk-averse investors but still generate good returns? Continue reading this article to know more! What is risk averse? Risk-averse refers to an investor who chooses to preserve the capital over and above its potential to generate returns that are higher than the average. Risk can refer to many factors – volatility, currency, market, credit rating, etc. Risk-averse can also refer to a conservative investor. Low risk symbolizes stability in investments. A low-risk investment generates guaranteed reasonable returns, if not outstanding, above benchmark returns. But chances are near zero that the principal investment amount will be lost. Whereas a high-risk investment option may gain or lose money over time. Risk-averse investors are unwilling to accept market volatility. They prefer their investments to be highly liquid - readily available to be withdrawn. Such investors usually include old investors or retired individuals who depend on their savings for their daily expenses. Additional read: Taxation in mutual funds Is FD a good option for risk-averse investors? One should constantly adjust their returns against the current inflation rate. The current Fixed Deposit interest rates are 5-7% p.a. on average. But the current inflation rates are around 6-8% p.a. Give these figures a thought. The price you pay for your everyday goods and services is rising at 6-8%, whereas your FD investments are growing at only 5-7%. FDs do not increase the value of your money over time. In fact, you actually lose money or its purchasing power over time. Do you think FDs are the safest investment option? Banks defaulting on payments is rare but definitely possible. The Deposit Insurance and Credit Guarantee Corporation (DICGC) guarantees Rs. 5 lakhs per person per bank if the bank defaults. Let's not forget the liquidity part of this instrument. Fixed deposits can have a lock-in ranging from 3-5 years. Banks penalize the investors for withdrawing money before the lock-in is over. This penalty is in the form of a reduction of interest rate by a certain percentage. What are the best investment options for risk-averse investors? The market is filled with many investment options for investors with varying risk appetites. Let's look at some of the best investment options for risk-averse investors: 1. Short-term bond fund: The best alternative for investors who do not want exposure to FDs or volatile instruments. Short-term bond funds – bond funds with low maturity and a high potential to offer better returns. Debt Funds with longer maturity are subjected to interest rate risk. But short-term bonds have a lower interest rate risk as their maturity period is much lower. 2. Municipal and Corporate Bonds: State and local governments and companies usually raise money by issuing bonds to the public. Bonds offer lower risk than stocks. When a company is winding up, the bondholders are given first preference in the payment and settlement order. 3. Other debt funds: Other debt funds include banking and PSU Funds, ultra-short duration funds, Dynamic Bonds, etc. You could always invest a lump sum in these debt-based mutual funds and opt for a Systematic Withdrawal Plan (SWP). This would ensure that along with the returns being generated on your investments, you would also get a monthly income from these investments. This investment option is one of the best options for older people who want a monthly income. 4. Liquid funds: Invest in top-rated liquid funds to avoid loss of capital with a higher degree of safety for your primary investment. Also, when the market moves up, your investment performs better and generates higher returns in line with the market. 5. Dividend growth stocks: Stocks are not as safe as cash, savings, or other debt-based instruments. But they are safer than options and futures. Dividend-paying stocks are considered safer than high-growth ones as they minimize volatility, if not eliminate it. You don't depend on the value of the stock as you get a dividend as a regular income on your investment. Apart from debt-based investments, you could also apply a staggered investment approach in equity-based mutual funds for a long-time horizon. A periodically rebalanced portfolio helps you minimize your portfolio volatility and ensures efficient capture of up-market and down-market movements even with equity exposure.  Take the help of an Investment Advisor who will guide you through goal-based planning and help you choose your investments that are most suitable to your goals and objectives and your risk appetite. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

A college education is integral for every child. Not only does it provide your child with a degree and a career, but it also helps them grow as individuals. Yet there are many obstacles to good quality education. Let’s look at 5 reasons why your child’s college education is at stake!  1. Education Inflation  Education has to be the top-most factor when it comes to a child’s college education. Usually, the first thing which comes to our mind when we talk about inflation is the rise in the prices of fruits, fuel, rations, and so on. But education inflation is one domain that tops the chart. Especially after the pandemic, it has been really difficult to keep up with the ever-growing education inflation. Every year, universities hike up their fees in response to the growing prices in different sectors.    According to data generated by the Government of India, it is seen that between the years 2012 and 2020, the inflation in education rose by 10% whereas the food inflation was 9.62%. This data proves that the inflation in education has far surpassed the inflation in other necessities of life. The factors like tuition fees, higher cost of living, improved infrastructure, security, and so on. There are certain hidden costs such as flights, food prices, daily transportation, and accommodation also add up to the overall amount. 2. Lack of Savings  Lack of Savings is one reason why your child’s college education can be at stake. Many Indian parents struggle to save up for college fees and expenses. The way to avoid this hassle is by starting an education fund for their child’s education as early as possible. This helps in improving the potential to counter the inflation in education. Your child might want to move abroad for their higher education. In such a case, you would need even more funds. Savings can be done either by going for a savings plan or by investing your money in a potential plan. Parents whose kids are still very young are advised to go for mutual funds. The time horizon can help manage the volatility and crashes that may come up. Also, it can help you gain a good return which will add up to the corpus for your child’s education. source: pexels 3. Lack of Research  Lack of research can lead to poor decisions and consequences. Certain universities are blacklisted and are not accredited by any board or council. The degree that a student gets from this college holds no value. It can prove to be a hurdle in your child’s education and a huge financial burden. Thus, proper research can help you avoid these mistakes and stay from university scams.   Furthermore, you need to ask your child about the course he or she is interested in and pursuing and conduct thorough research on the same. You must look for job opportunities that are offered after the end of that particular course. Avoid going for courses that do not have a properly retained market. Additional read: Private school or public school? Where to send your child? 4. Lack of Opportunities  Recognized universities provide you with the opportunity to land a job. It should provide the return on the investment that has been put in. Furthermore, the course that your child selects should have demand in the market. The positions which are in high demand in the market tend to pay you better. If the university is renowned, many companies will conduct their drive for campus placements. Students even opt for off-campus placements if they want to get a specific type of job. 5. Lack of Guidance  Before your child applies to any university, it is important that he or she reads and understands the eligibility requirements of the particular institution. Make sure that your child has the necessary academic performance, extra-curricular and entrance requirements to meet admission criteria. Most universities ask for 60% or above as an aggregate to get admission in undergraduate courses. In addition, they also require entrance exam results.    You need to have all the documents prepared beforehand. If your child does not fall in the eligibility category or is unable to produce the required documents, then his or her application might get rejected. Hence, it holds vital importance to take care of these minute details which may cause to be an obstacle.  Plan your child’s education with care to avoid some of the biggest obstacles!   Consult an expert advisor to get the right plan TALK TO AN EXPERT

Studying in a foreign country is a dream for an Indian as it opens new doors to career opportunities and growth. The general notion amongst Indian parents is that they will not be able to afford the huge fees and related expenses of studying abroad.  Price and affordability are important factors that every parent has to take into consideration before sending his child on a specific career path. Are you aware that there are at least 5 degrees that offer better ROI abroad than in India? Moreover, the opportunity of being a part of the global education system and getting a degree that is internationally recognized is unparallel. 5 Degrees that offer better ROI abroad than in India Students with academic excellence can get grants and scholarships in foreign universities. The reduced fee structure makes it easier for them to travel abroad for further studies Here are 5 degrees that are cheaper to pursue abroad than in India with great employment opportunities are: 1. Engineering Engineering is one of the highest-paying jobs in the world, with a demand factor for engineers far outweighing the supply quotient. If you are looking for one of the best among the 5 degrees that are cheaper to pursue abroad than in India, then engineering is a sure bet.  Related fields in engineering include Mechanical Engineering Civil Engineering Biomedical Engineering Petroleum Engineering Environmental Engineering Computer Engineering The average salary of an engineer varies between $80,000 - $90,000, with a mechanical engineer earning around $83,590, a civil engineer at $82,220, a biomedical engineer at $86,220, and a petroleum engineer an estimated salary of $88,700. Many foreign universities offer scholarships that can reduce the overall cost of studying and offer high-paying internships to add to your overall resume. After graduation, engineers can easily find high-paying jobs in countries like the UK, USA, Norway, Germany, Australia, and Canada. Additional read: What is the cost of education in India? 2. Actuarial science Students who are interested in actuarial science can expect a hefty pay package post-study. It is one of the unique study courses in the STEM fields with very high demand in countries like the USA, UK, New Zealand, and Australia.  Students who study actuarial science can work as Actuarial Analysts Assurance Managers Internal Auditors Health Actuaries Audit Managers Financial Auditors The occupational areas of actuarial science include professional technical and scientific services and finance and insurance. You can understand the high demand for actuarial scientists in developed countries by its estimated salary median of $97,070. 3. Pharmaceutical Science Pharmaceutical science and healthcare are important to study courses that provide numerous growth opportunities in your career path. The estimated average annual salary of a pharma scientist is between $80,000 - $100,000.  People who have chosen this field develop new drugs, evaluate medication use, prepare medications and also educate patients about the different medications Students who are studying pharmaceutical science can work as Pharmaceutical Scientists Medical Publisher Research Assistant Quality Control Assistant Drug Safety Associate Microbiologist Pharmacy Technician Pharmaceutical science is an in-demand degree course as students can easily get good jobs in biotech and drug manufacturing companies, government agencies, academic institutions, and hospitals. 4. Computer Science / Cyber Security Students who want to study computer science or cyber security have a bright future as these are high-profile jobs with great demand in both developing and developed countries like the USA, UK, Israel, and Germany. Students pursuing this degree course can work as  Security Administrator Cyber Security Analysts Security Architect Security Consultant Information Security Analyst Firewall Administrator The average annual salary of a pass-out with these degrees is an estimated $90,120. They work towards safeguarding the computer systems and network of a company and shielding them from any sort of cyber-attacks and data breaches. source: pixels 5. Finance Last but not least among the 5 degrees that are cheaper to pursue abroad than in India is the finance course study. Students who pursue this course have better job opportunities in countries like Japan, the USA, the UK, Australia, and Ireland The average annual salary of $89,160 acts as a powerful magnet to lure students toward this course. After completing their studies, they can work as Financial Advisor Personal Banker Wealth Strategist Portfolio Manager Financial Planner Lending Analyst The occupational areas of students pursuing a career in finance are financial investment firms, loan groups, and banks. It is a fact that most students face indecision about pursuing higher studies in India or abroad just because of the high-cost structure.  The ROI offered by these programs makes them a great investment. These courses are universally claimed and are in demand because of their international demand. Countries like the US, Australia, Germany, Netherlands, Belgium, UK offer incentives like scholarships, grants, work permits, and job placements to encourage students to take up these courses and enter their workforce.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

There are various methods to choose from when it comes to developing a financial plan, but the proper plan needs a few components, regardless of the process utilized for creating it. Here are the eight kinds of components for financial planning.   1. Your net worth statement  Every financial plan demands a baseline. So, it is worthwhile to determine the net worth before finding a financial plan. Make sure to note down all the assets and debts. This will include investment accounts, bank accounts, valuable personal property, real estate, mortgages, student loans, and credit cards.   Make sure to deduct your liabilities from your assets to find your net worth. If you find that your liabilities are outweighing the assets, make sure to not be discouraged because when people are starting to establish a solid financial plan, it is something that happens. So, it needs to be considered when looking for the components of financial planning.   2. Financial goals  You cannot consider making a financial plan until you understand what you are going to do with your money. Your plan needs to begin with a complete list of goals, both small and big.   A proper list can help you organize all the goals. Be aware that your short-term goals will be those that you are hoping to achieve in the next 2-5 years. When it comes to medium-term goals, those are the ones that you want to achieve in the next 7-8 years. Finally, your long-term goals will be those that you want to achieve in the next 10 to 50 years. Listing down financial goals is one of the primary components of financial planning.   3. Debt management  Having a debt management strategy is something that can help you reach your financial goals. If there is high-interest debt, ensure creating a strategy that can assist you to pay them quickly. You can also hire a financial professional advisor if you are not certain about where to begin. They will help you determine the amount from your budget that should be spent on the debts every month.   4. Cash flow and budget planning  Your budget assists you to find out where all your money is going and it helps you cut back to meet your goals. You can make use of a proper budget calculator to be sure that you do not ignore the important expenses. While jotting down your list, make sure to separate the expenses into two categories when considering the components of financial planning.   One category will have must-have items and the other will have luxury items. When you are considering how the financial goals will fit within the budget, make sure to consider all your expenses. You can also take the help of any advisor that offers procedures and tips that enable you to adjust particular assumptions to check how they would affect the savings plan.   5. Retirement plan  You are going to need 80% of the income you're earning today in your retirement. But, you can also assume that retirement can free you from taxes and other work-related expenses. You must consider that medical insurance does not cover everything. You need to keep those expenses under long-term health care expenses. Make use of a savings calculator for your retirement to help you understand what you might require during your retirement period.   6. Insurance coverage  Insurance refers to an integral part of safeguarding your financial downside. Disability insurance, health insurance, life insurance, and home insurance are some of them. When it comes to life insurance, it is a good concept for people having dependents. Make sure to talk to an insurance professional to acknowledge what kind of coverage works best for you.   When it comes to disability insurance, just like the components of financial planning, it safeguards you and your family when you are not able to work. It replaces approximately 60% of your monthly salary. If you have a home or a car and you cannot afford to pay the entire bill from your pocket, ensure that you have adequate protection. The same is true with health insurance which can get you back thousands of money during a severe injury.   Wrapping Up  These components of financial planning are growing effectively to confirm that the present plans in your life are in a positive direction.   In a nutshell, you need to -  Keep a regular check on your enrolled plans, mutual fund, and assets;   Analyze your essential expense;  Cut down excess expenses for your future investment to be more structured;  Optimize your goals.   So, follow the above-mentioned components of financial planning to make your financial goals realistic as well as achievable. It is one of the best and workable ways to help take a step toward your financial goals. Consult an expert advisor to get the right plan for you  TALK TO AN EXPERT

In the previous article, we discussed foreign investment. In this article, we will discuss SIP investments. SIP, also known as a Systematic Investment Plan, is a facility offered by mutual funds to the investors to invest in a fund properly. With a SIP facility, investors can invest a fixed amount of money in pre-defined intervals.   Note that the fixed amount of money can be as low as INR 500. The SIP route to investment is necessary as it helps you to invest in a time-bound manner. There is no need to worry about market dynamics when you are investing via SIPs. So what is SIP and why it’s so important? Let’s find out. What is SIP investment?  Currently, Indian Mutual Funds have currently about 5.5 crore SIP accounts through which investors invest in various schemes. A SIP is one of the two ways in which you can invest in a mutual fund scheme. The other way to invest in mutual funds is through a lump sum amount. In a SIP, you essentially invest a fixed amount of your money on a specific date.   Note that every mutual fund comes with its own minimum investment amount that you have to strictly adhere to. To achieve financial success in our lives, we typically tend to work harder. And it is only by working hard that we can achieve our objectives in life. But with a SIP, your success is always in progress.   SIP allows you to invest in mutual funds monthly, quarterly and step-by-step. It is essential to note here that SIP averages out your cost of investing. Moreover, with SIPs, you can benefit from the power of compounding. What makes SIPs stand out is their ability. Top 10 mutual funds for SIP to invest in 2022  Here are the top ten mutual funds for SIP to invest in 2022:  Name of the Fund Asset Class Category DSP Tax Saver Fund Direct Plan Growth Option Equity India Fund: ELSS DSP Flexi Cap Fund Direct Plan-Growth Equity India Fund: Flexi Cap Quant Active Fund Growth Option Direct Plan Equity Multi-cap Axis Midcap Fund Direct Plan-Growth Equity Mid-cap Navi Nifty 50 Index Fund Direct-Growth Equity Index Fund - Nifty Navi Nifty Next 50 Index Fund Direct-Growth Equity Index Fund - Nifty Next 50 Axis Small Cap Fund Direct-Growth Equity Small Cap ICICI Prudential Technology Fund - Direct Plan-Growth Equity Thematic - Technology ICICI Prudential Balanced Advantage Fund Direct Plan-Growth Hybrid Dynamic Asset Allocation Tata Hybrid Equity Fund - Direct Plan - Growth Hybrid Aggressive Hybrid     How to invest in SIP?  Investing in a SIP has become pretty simple. As an investor, you can invest in SIPs right from the comfort of your home. Here are the necessary steps to follow while investing in a SIP.   1.Keep all the Necessary Documents Ready   You have to ensure that all the essential documents are ready before starting to invest. Since it is a long procedure, you can keep all the important documents handy like PAN card, ID proof, and address proof. Also, ensure that your bank account and PAN details are correct.   2. Get your KYC Done   Comply with KYC norms before investing in any financial product. For KYC registration, you can also apply online.   3. Register for a SIP   To start investing in a SIP, you need to register with financial advisors or institutions. After registering, you can choose from a large number of funds.   4. Select the Right SIP Plan for Good Returns   Selecting the right SIP plan is one of the most crucial aspects. If you fail to choose the right plan, it will be tough to get a good return on your overall investment. Before investing in a SIP, consider the below-mentioned parameters.   Risks associated with the SIP   The number of units involved in a SIP investment   The type of investor you are   Select the Amount: Select the amount you want to invest in the scheme How can you invest in SIP using EduFund?  Saving for your child’s education is easy when you have a financial partner to help you. From calculating the cost of education in different countries for different courses to saving via SIPs in 4000+ mutual funds from top AMCs like TATA, Navi, and DSP; you start at just Rs. 100!   Here is how simple it is to save with EduFund  Using the College Cost Calculator, find out how much you need to save for your child’s education   Once you know much you need, start saving via SIP or lumpsum. You can get the monthly amount based on your budget and explore the customized funds that can help you get closer to your goal  After selecting the funds, allow the SIP mandate from your bank account or make a lump sum order. That's it! You are ready to fund your child’s dream education in no time!  SIP is a great way to reach long-term and short-term goals. You can start a SIP for saving up for your child’s college to his/her laptop by deciding how much you need to invest every month and when you need the funds for your set goal. Make the most of the financial instruments and start saving!  

A bond is a debt instrument that an investor purchases from the issuer and receives interest on it periodically. Financial institutions, companies, banks, non-banking financial companies, and the government provide bonds. Bond is one of the financial instruments that help companies finance themselves; it acts as a loan for these companies who raise money directly from investors.   Bonds are ideal for investors seeking low-risk investments, and they carry lower risk than equities and help diversify the portfolio. What are some primary differences between bonds and stocks? Bonds Stocks In bonds, you provide an amount to the lender to invest in an organization/ government In a share, you own a portion of the company equity by investing. The person who invests in a bond receives a fixed interest over time from the issuer. An individual dealing in stocks sells the shares once the price rise.    These are a debt. The long-investment bonds are riskier. These investments are long-term and short-term. Long-term offers the potential to the investor. Safer investment option than stocks Profitable investment option than bonds   However, bonds are not entirely free from risks. If the company goes bankrupt, the investors stop receiving interest payments. In many cases, individuals do not get the principal amount as well. It is thus advisable to invest in bonds in India carefully. Analyze the growth and issuer’s credit worthiness. Companies with AAA ratings like HDFC Bank Limited or Infosys are considered the best bond issuer.   What are 5 types of bonds to invest in India?   Here are the top 5 bond types of investing in India:  Government security bonds   The Government of India issues this debt instrument. These are one of the safest bonds in India, and they do not carry any credit risk and pay interest semi-annually.  Corporate Bonds   Firms provide these bonds to individuals for a fixed period, and the account holder earns consistent interest over time. However, companies use the money to fund their business requirements; hence, these are highly risky.   Zero Coupon Bond  A Zero-Coupon Bond is a pure discount bond. In this, individuals do not receive interest or any benefit until the bond’s maturity.  Convertible Bond  It is a hybrid bond that acts both as equity and bond. However, it does not happen simultaneously, allowing the investor to convert a bond into equity and qualify for shareholder benefits.  RBI Bonds  It is also known as a Floating Rate Savings Bond (RBI). Released in 2020, the government pays interest every six months on the bond, and one has to repay the bond post 7 years of expiry.   Investing in a Bond beneficial?   Here are some popular benefits of investing in a bond:   Provides investors with a steady income source  Flexibility to receive interest income or receive both cumulative interest and principal on maturity  Some bonds offer tax benefits on returns and interests  Investors receive benefits from preserving or increasing the investments  Investors share a higher priority claim to assets in comparison to stockholders  7 Tips to choosing the right bond  Individuals often dwindle between the right bond and a profitable bond. Here is how you must pick the bond:  Define your investment objectives  Analyze your risk-taking abilities  Identify the bond provider rating  Expected yield on the bond  Research the bond’s strengths, weaknesses, and future scope  Read the terms in fine prints carefully  Decide whether a long-term investment is ideal for you?   How to invest in bonds in India?  One can invest in bonds through a primary or secondary market. In the primary market, an investor can invest in bonds issued by big companies. In this, the companies provide bonds to build capital. They release IPO (Initial Public Offering) to raise funds for generating capital. When a company raises capital from the market to expand it's business or growth, it is termed an IPO.  In contrast, a secondary market exchange refers to organizations like NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). Investors buy and sell stocks by operating in any of these organizations independently.  If you need a pre-mature exit, you can view a secondary market.  In the primary market, an individual has to undergo a documentation process to invest in bonds in the DEMAT account.   Purchasing a bond in the primary market is subjected to strict screening. The company offering securities reviews it and creates a prospectus outlining the details of the securities. In opposition, the secondary market offers more flexibility in trading.   Here are some easy ways to invest:  By Connecting with a Bond Broker  Connecting with an authentic broker is one of the ways to choose and invest in the right bonds. Fees may vary from broker to broker.   Invest through Institutional Investors   In this, investors bids on government securities. The yield on the bond is less than the interest rate one receives. But a higher bid rate makes it profitable.  Purchasing Mutual Funds and ETFs   It is among the best and fastest methods for bond investing. The provider provides the best ETFs (Exchange Traded Funds) on your behalf.   Buying Bonds through RBI retail   If you are seeking government securities to invest in, you can do so through RBI retail. Register for a GILT security account under RBI. An investor needs to update the dashboard post logging:  An investor must update details like- issue size, date of bidding, price per security, and bid value range  Place the bid by mentioning the investment value and security  Complete the payment  FAQs:   Which Bonds Among These Pay the Highest Interest?    Corporate Bonds pay the highest interest rate. Companies from different industries provide these bonds. However, they share higher risks than other bonds but offer higher returns on investment.    Which is The Best Performing Corporate Bond in India in 2022?    According to Finish reports, July 2022, Nippon India Prime Debt Fund is the best corporate bond to invest in India, with the highest Yield of 6.88%.   What are some Safest bonds to invest in India?    To reduce risk and ensure safety, you can invest in government bond funds, municipal bond funds, and short-term corporate bonds.  These are some popular ways to invest in bonds in India and earn profit. Calculate the risk appetite, expected yield, and credit rating before applying for Bonds in an institution. Decide the proper bond for your goals- government or corporate. Invest wisely!  Consult an expert advisor to get the right plan for you 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.  source: pixabay 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, which contains 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. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Earlier we discussed taxation in mutual funds. In this article, we will discuss tax liabilities to consider while investing in the US market. Many investors are interested in learning more about the US market and its investment opportunities. The financial market in the United States is the most influential financial centre globally. The New York Stock Exchange is the world's largest stock exchange, with a market capitalization of more than 26.7 trillion dollars as of March 2022, while India's GDP was 2.7 trillion dollars in 2020. You can imagine how big the US equity markets are.  As an Indian investor considering investing in the US share market, you should know the tax liabilities and benefits. You will not be able to keep the money you earn tax-free.  There are two types of gains from equities which are subject to taxation 1. Dividends  A dividend refers to a portion of a company's profit that it intends to distribute to its shareholders.   As a result, because your investment is profitable, you must pay up the tax on the dividend you get. Although a firm is not required to pay dividends, most Blue-Chip corporations do so to retain goodwill.  2. Capital gains on the sales  When selling a stock, you have the option of making a profit or a loss. If you make a loss, no tax is due, but you must pay Capital Gains Tax on that profit if you make a profit.   The stock's holding duration determines the capital gains tax rate.  Let's now dwell on the taxation aspect 1. Dividends  In the United States, if you own stock in a firm that pays a dividend, your tax burden is a flat 25% which gets deducted from your dividend before you get it, resulting in a cash distribution of 75% of the dividend.  The good news is that because the US and India have a Double Taxation Avoidance Agreement (DTAA), you would be able to offset the US tax withheld against your Indian tax burden.   As a result, the tax you pay on the 100% dividend will be offset by an overseas tax credit of 25%, leaving you to pay only the difference.  Let's understand with an example Suppose you own Google (GOOGL) and have received a USD 1000 dividend. The broker will deduct USD 250 as his/her fee from the USD 1000 dividend you gained, while USD 750 will be transferred into your bank account.   The USD 1000 dividend is included in your annual income for tax whenever you file your return in India. You will, however, be allowed to use USD 250 in international tax credits to decrease your Indian tax liability.  2. Taxation on capital gains  There is no Capital Gains Tax on US Stocks for foreigners in the United States. However, you must pay tax in India under the Capital Gains Tax scheme.  Capital Gains are divided into two categories.  a) Long-term capital gains tax rate (LTCG)  If you own a stock for more than 24 months, the profit from selling it shall be taxed at the long-term capital gains in India.   Long-term capital gains are taxable at a rate of 20%. (Plus, any additional surcharge and cess).  b) Short-Term capital gains tax rate (STCG)  If you make a sale before the 24-month, it will be the same as regular income, and your tax bracket will determine the tax rate.  Let's take an example to understand  For instance, you brought Apple shares worth USD 5000 and sold them for USD 7000, making a profit of USD 2000. While this gain will be tax-free in the United States, you are required to pay your tax dues in India on the USD 2000 capital appreciation.   If you hold the shares for two years, the tax accumulated is USD 400 plus any applicable surcharges and cess.   If you sold shares after owning for a little less than 24 months, USD 2000 would've been added to your income and taxed according to your tax bracket for the year.  Let's sum it up in an illustration for ease of understanding and assimilation The tax implications of investing in the US stock market are straightforward, and this should not deter any Indian investor from doing so.  Consult an expert advisor to get the right plan for you TALK TO AN EXPERT