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February 18, 2023

The Ultimate Guide to Best Child Investment plans to invest in India

ultimate guide to child investment plans

When it comes to quality education, Indian parents leave no stone unturned. To safeguard your child’s future against all odds, you need a child investment plan.

With the growing cost of education, saving for multiple goals like school, higher education, college, marriage, and house, and keeping up with different education needs like gadgets, school trips or books is becoming harder for Indian parents.  

A child investment plan helps you manage all these expenses timely and seamlessly. It helps you create a solid plan based on your child’s unique goals.

With a good child investment plan, you not only secure their tomorrow but you save money in terms of taxes and reduce the looming threat of financial stress on your family.

In this blog, we cover all you need to know about child investment plans and how easy it is to secure your child’s bright future!  

Child investment plans guide

Chapter 1: Best Child Investment Plans in 2022  

Chapter 2: Importance of child investment plans  

Chapter 3: Benefits of child investment plans  

Chapter 4: The right time to invest in child investment plans  

Chapter 5: Key milestones to plan for child investment plans  

Chapter 6: Types of child investment plans 

Chapter 7: Child investment plan calculators   

Chapter 8: How to choose the right child investment plan

Best child investment plans

There is no better gift that a parent can give to their child, than the promise of a secure future.

There are critical aspects that a parent should never ignore like the rising cost of education, stationary, books, medical expenses, etc. 

Here are some of the best-saving child investment plans: 

  • UTI CCF – Investment Plan – Growth Direct child plan
  • Tata Young Citizens’ Fund Direct-Growth child plan
  • HDFC Children Gift Fund Direct Plan child plan
  • Axis Children’s Gift Direct No Lock in Growth child plan
  • SBI Magnum Children’s Benefit Fund Direct-Growth child plan
  • Aditya Birla Sun Life Bal Bhavishya Yogna Direct-Growth child plan
  • LIC MF Children Gift Fund Direct Plan child plan

1. UTI CCF – Investment Plan – Growth Direct child investment plan 

The fund is investing predominantly in equity and equity-related instruments across market capitalization. The fund has invested 98.21% in stocks, 0.12% in debt, and the remaining 1.66% in cash.

The fund has a diversified portfolio that consists of 55 stocks. The fund follows a growth style of investing which means that the fund invests in stocks with high growth potential.

The fund has given consistent performance over the period. Parents who want to invest in a child investment plan can consider this as one of the options. 

2. Tata Young Citizens’ Fund Direct-Growth child investment plan  

The fund is investing predominantly in equity and equity-related instruments across market capitalization. The fund has invested 97.88% in stocks and 2.12% in cash.

The fund has a diversified portfolio that consists of 55 stocks. The fund has given consistent returns with lower volatility. Parents can consider this plan as one of the child’s investment options to save for their child’s future. 

3. HDFC Children Gift Fund Direct Plan child investment plan  – (HDFC investment plan for child)

The fund is investing has invested in different asset classes including equity and debt. The fund has invested 66.88% in stocks, 24.67% in debt, and the remaining 8.45% in cash.

The fund has a diversified portfolio which consists of 46 stocks and 16 bond holdings. The fund follows a growth style of investing which means that the fund invests in stocks with high growth potential.

The fund has given consistent performance over different trailing periods. 

4. Axis Children’s Gift Direct No Lock in a Growth child investment plan  

The objective of the fund is to generate income by investing in debt & money market instruments along with long-term capital appreciation through investments in equity & equity-related instruments.

The fund has invested 70.08% in stocks, 18.84% in debt, and the remaining 11.08% in cash. The fund has diversified its investment in different asset classes to minimize the risk and maximize the returns.

The fund’s focus is to reduce volatility and enhance returns. 

5. SBI Magnum Children’s Benefit Fund Direct-Growth child investment plan 

The objective of the fund is to provide the investors an opportunity to earn regular income predominantly through investment in debt and money market instruments and capital appreciation through an actively managed equity portfolio.

The fund has invested 22.25% in stocks, 48.05% in debt, and the remaining 29.67% in cash. The fund has very low volatility as the major portion of the money is invested in debt and debt-related instruments.

Also, the fund holds AAA-rated quality bonds. The fund is good to invest for a child’s future as the volatility is low and has delivered good returns. 

6. Aditya Birla Sun Life Bal Bhavishya Yogna Direct-Growth child investment plan  

The investment objective of the Wealth Plan is to seek the generation of capital appreciation by creating a portfolio that is predominantly investing in equity & equity-related securities and debt and money market instruments.

The fund has invested 98.64% in stocks and 1.36% in cash. The fund has invested across sectors and follows a growth style of investing with a major portion invested in large-cap companies.

Parents planning to save for their child’s future can consider investing in this fund. 

7. LIC MF Children Gift Fund Direct Plan child investment plan – (One-time investment plan for child in LIC)  

The primary investment objective of the fund is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio constituted of equity securities & equity-related securities and the secondary objective is to generate consistent returns by investing in debt and money market securities.

The fund has invested 86.36% in stocks, 3.82% in debt, and the remaining 9.82% in cash. The fund is a consistent performer and has delivered good returns over the period.  

All the above-mentioned plan has a lock-in period for investment for children having a lock-in for at least 5 years or till the child attains the age of majority, whichever is earlier. This also provides you consistency in your investment journey. 

*Disclaimer: This is not investment advice

Importance of child investment plans

Child Investment plans for children help you and your child prepare financially for growing education costs, unanticipated illnesses, and bad circumstances.

Planning for your child’s future must begin as soon as feasible. This lengthens the time frame over which your assets can increase and balances the associated risks.  

1. Funding for children’s education 

As your child gets older, a significant portion of your resources will go into paying for your child’s education, thus preparing for higher education is essential for guaranteeing their future.

You may generate the money required so that your child can follow their ideal job by investing in their education. With college costs increasing, every day matters when it comes to being financially prepared for your child’s education.

Get in touch with our experts at EduFund and you can save up to 2.5 Cr by starting today.  

2. Flexibility to withdraw part of funds 

By selecting a child investment plan that gives you the freedom to withdraw funds as per your kid’s requirements, you may easily access a portion of your funds while the remainder of your investments continues to grow. 

3. Protection against uncertain times 

Many kid insurance policies have advantages including premium waivers. This makes it such that, in the sad event that anything bad happens, future premium payments won’t be necessary.

The investment yields a lump sum payment upon maturity and grows without the requirement for premium payments. This guarantees that no matter what, your child’s dreams are protected. 

4. Different investment options for your child 

Fixed deposits and other traditional products might not be enough to cover your child’s college costs. Other products like equities funds, balanced funds, and shares should be taken into account.

You can select one of the following investment strategies depending on your time frame: 

The best option is debt mutual funds if your child will need the money within five years. Such funds can provide liquidity while producing returns that are more than the rate of inflation. 

You can mix several financial products for long-term aims. You have the option of investing in gold, stocks, and debt.

Although exposure to the stock market is hazardous, investing in equities gives investors the chance to generate larger profits over the long run. 

PPF is one of the greatest investment options for financing a child’s education. To establish a sizable corpus, you must begin this early and invest steadily. 

Numerous insurance providers provide a range of kid-focused solutions. When your child needs the money to pursue further education, you may choose to implement more mature policies. 

5. Investment strategy for children’s investment plan 

List concrete objectives from the outset, such as the child’s desired schooling and associated fees.

This will enable you to estimate how much you can afford after paying all of your usual bills and how much you need to save each month.

You must keep in mind, though, that loans can also be used to pay for education. Saving for your child’s education does not, therefore, require you to forgo other expenses like healthcare and retirement.

Reduce your stock exposure as the financial objective approaches to lower the chance of negative market moves.

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Benefits of child investment plans

1. Financial security  

Savings plans for kids offer a lump sum payout in the form of the claim amount in the event of an unexpected circumstance.

The plan is still in effect, and the life insurance company is responsible for all future premium payments. The payoff received after the insurance period guarantees that your children’s wishes will always come true. 

2. Tax benefits  

Additionally, these plans provide Section 80C tax advantages on premiums paid up to INR 1.5 lakh in a fiscal year.

According to Section 10(10D) of the Income Tax Act of 1961, the pay-out received after the policy term is likewise tax-exempt. 

3. Education costs benefits  

Almost all parents, when asked about their top worry for their child’s future, will quip about how expensive schooling has become in the modern world.

It costs money to send your child to a decent school. Additionally, as the years pass, your child could opt to pursue other education that would cost the earth.

Your financial load will be lessened if you make wise financial decisions and enroll in a kid insurance plan that matures throughout these seasons. 

4. Withdraw part of the funds 

After the policy term, child plans provide maturity benefits in the form of a lump payment. You may choose a maturity date based on how soon your child will require money in the future.

Your investment accumulates a tidy corpus over the course of the term, which is sufficient to pay for your child’s dreams. 

5. A habit of saving 

As we have indicated, childcare plans offer the benefits of both insurance and investment. Go back to your financial plan before purchasing a child care plan and estimate your financial needs at each stage of life.

Determine the expenses you are saving for, such as elementary and secondary education, college, a wedding, etc. Additionally, evaluate your other obligations, such as a mortgage, and decide on an insurance plan that perfectly complements your financial strategy.

Although it may at first seem like a nuisance, making regular premium payments will eventually become a habit that will serve you well as your child becomes older. 

Guide to child investment plans

The right time to invest in child investment plans   

The best time to start investing is right now since there are several advantages to beginning early. The sooner you begin investing, the more you can eventually give your kids.

Your biggest ally is time, so even if you just save a tiny amount today, it will eventually grow into a sizable corpus.  

The power of compounding should be fully utilized in order to maximize the profits that will be created on any current investments you make. Starting to save for your children as soon as possible is a wise move.

You may make sure that every monetary element of their lives is taken into consideration in this way. But it’s never too late to start saving.

Even if you start saving while your kids are young (1 to 8 years old), you can amass enough money to support them as they age and their expenditures rise. 

Here are some factors to help you determine the right time to invest in child investment plans:   

a) Time Horizon

When do you need the invested money and how long can you stay invested?

Based on your time horizon and risk assessment you can take the help of a financial advisor to figure out the best child investment plan for your child’s needs. The benefits are often larger the longer the time horizon. 

b) Risk Assessment

What is your risk appetite? This is a very common question every investor should ask themselves before investing their money in any investment.

Are you risk-averse or are you willing to take a risk? Based on your answer, you can figure out the best investments.   

c) Cost of Education

The average cost of your child’s future education must be considered as the second element. Costs for postgraduate education are sometimes greater than those for graduation, however, this varies per school.

You should also think about whether you want your child to have a local education or a global education.

You could also consider your child’s graduation in your own nation as well as their subsequent post-graduation in a foreign nation. 

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Key milestones to plan for child investment plans 

There are key milestones that you need to focus on when planning your child’s investment plans. What do key milestones mean?

It means certain events for which you need to be financially prepared like your child’s school, college and marriage. It is important to keep these events in mind before allocating funds toward a child investment plan.  

1. School 

When budgeting and preparing their investment for their child’s education, parents should expect the primary school tuition price, and expenses like uniforms, books, extracurricular activities, transport fees, yearly vacations, picnics, etc., to be between (INR 1.25 – 2 lakh per year). 

2. Higher education 

The yearly cost of study and living is the first and most important element that one has to take into account before enrolling in college.

Universities offer housing on their campuses for both domestic and international students. However, if the institution you have selected to attend does not provide this amenity, you may simply obtain personal accommodations.

Following is the estimated cost of studying UG and PG courses from India and abroad:  

  • Govt Colleges in India will cost around Rs 5-6 lakhs. 
  • Private Colleges in India will cost around Rs 8-10 lakhs. 
  • Studying Abroad can cost up to INR 1 crore. 

3. Marriage 

Although it is stated that marriages are created in paradise, they take place on Earth and require a lot of money to make them memorable.

You arrange your “Big Day” to be a special occasion for both you and the family that attend the ceremony. The Indian wedding market is presently worth over Rs. 1,000 crores and is expanding quickly, at a pace of 25–30% annually.

The average cost of a wedding in India ranges from INR 20 lakhs to 5 crores. According to estimates, the average Indian spends one-fifth of his lifetime earnings on his wedding.

Also, you need to assemble a skilled team, including event planners, florists, caterers, and fashion designers, to make your special day extraordinary.

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Types of Child investment plans for girl and boy child

There are several types of child investment plans to consider your child’s unique goals. Based on your risk assessment, time horizon, and your child’s education goal, you can choose one or more child investment plans to give your child an edge. Here are the different types of child investment plans you need to consider:  

1. Sukanya Samriddhi Yojana 

Sukanya Samriddhi Yojana is a unique child investment plan for parents of a girl child. This is offered by the Indian government to encourage parents to save and invest in their daughters early on.

The main objective of the SSY program is to encourage parents to make substantial financial commitments to a strategy for their daughters’ future education and marriage. 

Parents who have girls under the age of ten can invest in the SSY program. The SSY program investment is locked in for 21 years post-account opening.

After the account is opened, the parent is allowed to invest for a total of 15 years. Investments made in SSY accounts are eligible for tax deductions under Section 80C of the Income Tax Act of 1961.

Each year, a minimum investment of ₹250 must be made, and a max investment of ₹1,50,000 may be made. SSY accounts can be opened and utilized at any location of an accredited bank or the India Post Office. 

2. Equity Mutual Funds 

When your child is still small and you have at least 15 to 20 years till retirement, it is excellent to begin investing in equities mutual funds.

This enables you to withstand shocks like stock market collapses and volatility. Equity investing is not for everyone since it demands technical expertise and the capacity to keep current.

To choose equities mutual funds is, therefore, the better option.  

These are managed by professionals who are aware of how to choose the least hazardous stocks while still making sure that your money grows over time.

You may put together a portfolio of equity mutual funds just for your child’s schooling. When your child is 4 or 5 years old, you may accomplish this by creating an account specifically for children and choosing Systematic Investment Plans (SIPs) in risky products like equities mutual funds.

Then, when you and your child become older, you can take a more conservative approach. 

3. Public provident fund (PPF) 

Parents continue to favor PPF even after the government lowered interest rates on provident fund accounts.

Because you cannot take the corpus until the conclusion of the 15-year maturity period, PPF deposits promote discipline. You may build your corpus for educational purposes because the principle, interest, and total maturity amount are all tax-free. 

You may rest certain that your money is secure because the government backs PPFs. However, because PPFs’ official interest rates have already decreased, relying only on them can result in a cash flow problem.

Build your portfolio to provide larger returns to prevent this. For your child’s future, choose a well-balanced investment portfolio that includes both PPFs and Unit Linked Insurance Plans (ULIPS). 

4. Direct Equity 

Direct equity, sometimes referred to as stock investing, is perhaps the most effective investment strategy. You get a stake in a company when you buy stock in it. 

You are personally responsible for funding the business’s growth and advancement. You need to have the necessary time and market knowledge to make money from your investment. 

Publicly traded companies provide their stocks on reputable stock markets. Stocks are the finest long-term investments. You must actively manage your assets since several economic and commercial factors influence shares.

You must also be aware that profits are not guaranteed, and you must be willing to assume the associated risks. 

5. Fixed Deposits 

Banks and other financial organizations provide FDs as one sort of investment. You earn a fixed rate of interest for a predetermined amount of time after making a deposit.

Compared to mutual funds and equities, fixed deposits offer complete capital protection and guaranteed returns. 

You give in, though, since the rewards remain the same. The banks establish the interest rate on fixed deposits by the RBI’s policy review decisions, and it changes depending on the status of the economy.

Despite being typically locked-in investments, fixed deposits are commonly accepted as collateral for loans or overdraft facilities by investors. A fixed deposit with tax advantages and a 5-year lock-in is also available. 

6. Employee Provident Fund 

The EPF is one of the investment vehicles geared toward retirement, and it enables salaried individuals to take advantage of a tax credit under Section 80C of the Income Tax Act of 1961.

EPF contributions are often provided by the employer in addition to employee deductions that are typically made as a percentage of monthly wages.  

Once it reaches maturity, the EPF withdrawal corpus is entirely tax-free. The Indian government also determines the EPF rates each quarter and provides a guarantee on your EPF deposits. 

7. US stocks 

By purchasing US stocks, you may gain exposure to the most well-known brands, like Nike, Starbucks, and other well-known companies like Tech Giants Google, and Apple.

These businesses are well-known and present around the world. You may diversify your portfolio by investing in such businesses.

Over the previous five years, the US dollar has increased. You acquire US Dollars when you invest in US stocks. When these assets are kept for a lengthy period, the value of your investment rises about the USD exchange rate. 

8. National Pension System  

The National Pension System is a more modern alternative for tax-saving investments (NPS). NPS plan subscribers must stay committed until retirement and can anticipate higher returns than those from PPF or EPF.

This is true since the NPS offers plan choices that include stock investments. A portion of the tax-exempt NPS maturity corpus must be utilized to purchase an annuity that will give the investor a regular pension. 

Less is more

Child investment plans calculators  

By using different child investment plan calculators, you can prepare yourself for the increasing cost of education.

Child investment plan calculators like the mutual fund, SIP calculator, lumpsum calculator, and step-up calculator enable parents to make informed decisions about their child’s investment plans.

These calculators will help you figure out how much you need to save every month and your one-time investment based on your investment choice.

Let’s find out in detail how child investment plan calculators work. 

Mutual fund calculator?   

A mutual fund calculator is used to calculate and estimate the returns yielded via investing in mutual funds.

There are two ways in which you can invest in mutual funds – Lumpsum (one-time investment method) and SIP (systematic investment at pre-decided intervals).  

Lumpsum investment calculator?  

When you invest in a mutual fund through the lump sum method, it means a single, bulk amount has been invested into a mutual fund scheme in one go.

The user must enter the investment amount, duration, and expected return rate to get the estimated future value of the investment. The calculation is based on the following formula:  

Future Value = Principal * (1 + r/100)^n where:  

n = duration of the investment  

r = Rate of return  

For example, if you have invested a lumpsum amount of ₹50,000 in a mutual fund scheme for three years and have estimated the rate of return at 8% per annum, the future value of your investment is ₹62,986.

Systematic Investment Plan (SIP)?  

SIP is a method of investing in mutual funds that enables an individual to invest a fixed amount in a mutual fund scheme at regular intervals (monthly, quarterly or semi-annual) instead of making a lump sum investment.

The amount can be as low as ₹500 a month depending upon the selected fund. The aim of investing in mutual funds through SIP is to create wealth in the long run and to invest systematically over a long period.  

SIP Calculator?  

The SIP calculator helps estimate the returns you would earn on your SIP investments.

The user must enter the SIP frequency (monthly, quarterly, or semi-annual), the amount to be invested in each SIP, the investment duration, and the expected return rate to get the estimated future value of the amount accumulated at the end of the SIP tenure.  

The calculation is based on the following formula:  

FV = P [ (1+i)^n-1 ] * (1+i)/i where:  

FV = Amount you receive upon maturity  

P = Amount you invest at regular intervals  

n = Number of payments you have made  

i = periodic rate of return  

Suppose, you invest ₹500 per month for 12 months at an annual rate of interest of 12%, the monthly rate of return will be 1% (which is 12% ÷ 12).

Hence, the estimated future value of the amount accumulated at the end of the SIP tenure is ₹6405.

How to choose between Lumpsum or SIP investment?  

Both are great tools of investment for all types of investors. If you have a surplus and wish to invest the amount in a well-researched fund then the lumpsum tool is a great idea, it allows you to pool your money immediately.

Another method is SIP which is extremely useful for investors with limited resources. It allows you to invest small sums of money at pre-decided intervals in a chosen mutual fund.

The greatest benefit of investing via SIP is that it builds wealth in the long, and gives you the flexibility to choose the amount you wish to invest and your chosen timeline.   

Another benefit of SIP investment is that you can stop it at any given moment or increase the amount if you have a surplus.

A SIP investment works as a reverse EMI option where you have the flexibility to invest a portion of your income into your chosen fund and cultivate a disciplined manner of investing.   

Suppose you wish to start saving for your child’s higher education and do not have a surplus amount to start with.

This is where a SIP comes in, it allows you to invest a nominal amount in one or many mutual funds so that you do not miss out on the opportunity of saving and investing for your child’s future.   

Investors can opt for both tools. You can start a SIP and place lumpsum orders on certain funds whenever you have a surplus of funds so that you can achieve your goals faster and more efficiently.

Step-up SIP calculator?  

Step-up SIP, also known as top-up SIP, is an automated facility through which SIP contributions can be increased by a predetermined amount, or a fixed percentage, at periodic intervals in sync with your financial goals and level of income.   

Step up Sip calculator gives you the future value of your SIP investments, increasing periodically by a given percentage. The user must enter the SIP frequency, amount to be invested in each SIP, investment tenure, the growth percentage of SIP investment, and the expected return rate to get the estimated future value of the amount accumulated at the end of the tenure.  

If you want to step up your SIP in the future, it’s important to activate the option on your chosen fund and find the minimum SIP amount you may need to invest if you want to avail of this option in the future.

For example, most funds allow you to activate the step-up SIP option if you invest a certain amount recommended by the fund. This is a great method to periodically increase your investments as your income appreciates and your goals shift.   

A college cost calculator powered by EduFund is another tool to help with a child’s investment plans. The college cost calculator helps you as a parent to find out the future cost of studying and living in a new country and city.

For instance, you want to send your child to the US to study MBA in 10 years. Fill out these details onto the college cost calculator and the calculator will tell you the exact cost of studying 10 years from now.  

It accounts for inflation and increases in fees to help you save for the right amount so that your child’s dreams can soar high! Stop guessing, click here to find out how much you need for your child’s college.

How to choose the right one-time child investment plan? 

Choosing the right child investment plan is the toughest decision you will make as a parent. To help you simplify this process, here is a small checklist to guide you: 

1. Know your financial goals  

You may have multiple goals to achieve. But prioritize the goals that are important for you and have to be achieved within a restricted timeline.

Always know what you are saving for. Remember to quantify your goal.

How can you quantify the goal? Know what you are going to be spending on that goal by adjusting for inflation for the time period when you will be achieving that goal. In this case, the goal would be the child’s education.

Now knowing what costs you are going to incur for your child’s higher education can be easily determined by using EduFund’s College Cost Calculator.  

2. Find out your risk profile  

Based on the phase of life you are in and the career stage you are in, you can figure out your risk profile.

Usually, the risk profile can be determined by knowing what is time left for achieving the goal. Usually, short-term goals comprise less risky investments whereas long-term goals comprise very high-risk investments mainly for long-term capital appreciation.  

3. Know your investment horizon  

Always know what is the timeline for your investments. By knowing the time you have left for your investments, you can always plan better to have a proper time frame for your investments.

Having a set timeline helps you prepare well in advance to make your investments and helps you achieve the goal more efficiently by knowing what amount you have to set aside periodically to achieve your goal.

For example, equity-based investment options are suitable for long-term investment horizons, whereas debt-based options are better for short-term investment options.  

4. Analyze different investment options  

Always perform a thorough analysis of any investment option before putting your money in it. Just don’t invest in any fund or instrument purely based on past performance.

Other factors to consider while evaluating investment options are fundamentals of the fund, underlying asset or portfolio holding of the fund, cost of investing or expense ratio of the fund, downmarket capture of the fund, etc.

All this will help you know the suitability of the fund for your portfolio.  

5. Have a goal-based planning approach  

Having a goal-based planning approach helps you tick all the boxes at once.

It helps you plan your investments in such a way that it creates a well-diversified portfolio with proper periodical rebalancing to help reduce the overall portfolio volatility.

A goal-based plan, takes your investment objective, risk appetite, time horizon, and your disposable income into consideration and   

6. Have an exit strategy  

Have a well-planned exit strategy. If you don’t have proper liquidity at the time when you actually need the money, then you fall short of achieving your goal!

But when you have a properly planned exit strategy, it ensures that one, your portfolio doesn’t have high volatility towards the end of your investment horizon, and two, your portfolio has the liquidity to achieve the goal you have planned for.  

7. Choose the right investment advisor  

Are you still confused with all this jargon? Do not worry! This is when an Investment Advisor comes in to help you achieve your goals and make the entire investment journey smooth for you.

An Investment Advisor understands your goals, your timeline, your requirements, etc, and formulates a customized plan to get you closer to achieving your goal.

The Advisor also periodically rebalances your portfolio so that your investments do not face very high risk and volatility. Choosing the right Investment Advisor can be a deal breaker for you to achieve your financial goals, so make the right choice after completing the evaluation.


How to plan investment for a child? 

To plan your child’s investment, you need to find out your financial goals and create a plan to achieve them.

Figure out what, when, and where your child wants to study, find out the cost using the College Cost Calculator, and then pick a variety of recommended funds to meet your goals faster.

You can also reach out to an investment advisor and plan investments for your child with expert guidance and monitoring. 

How do I secure my child’s future? 

To secure your child’s future needs and ambitions, you need a child investment plan.

The cost of raising a child is increasing every year and a majority of this expense goes toward quality education. As costs hike up, the need to invest and save needs rises as well so that your child is not left behind.  

How do I plan for my child’s future? 

You can plan your child’s future by setting your financial goals and creating a concrete financial plan to achieve them. One way is to start a SIP in a chosen investment plan to give your child an early start.  

How do I save money after marriage? 

After marriage, the best way to save money is to start budgeting and investing routinely. Whether it’s investing Rs. 100 or 1,00,000, starting a habit of investing every month can help you save better.

If you are planning to start a family then start saving through SIPs for your child’s education needs. You can start a small SIP of R.s 200 or 2000 and watch it grow over the years.  

How do I save money for my son? 

To save money for your son, you can start a small SIP in a chosen investment based on your goals, time horizon, and risk profile.

You can connect with a financial advisor on EduFund or use the College Cost Calculator to customize your child’s investment plan based on the future cost of education and living expenses for your child’s favorite course

What is the minimum amount of investment required? 

The minimum amount for investment is Rs. 100 for SIP and Rs. 500 for lumpsum in mutual funds.

Different mutual funds have different criteria but the minimum amount is generally low and investor-friendly to encourage more investors to secure their family’s future.

What documents are required for starting an investment plan? 

To start investing you need to be 18 years of age, must have a bank account, and must have an ID card (Aadhar card in India) and a PAN card to open an account.

Once your KYC is complete and approved, you can start investing in India.  

Quality education is the key to a successful career and life, so don’t compromise your child’s education. Start investing in child investment plans so that your child can dream big and achieve bigger!    

Consult an expert advisor to get the right plan
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10 ways to better plan your education abroad

Stressed about going abroad to study at your dream college? Wondering how to better plan your education abroad? Then, take a deep breath and let all the negativity flow out. Next, formulate a plan to go about the whole process in the most systematic way possible. There are a few intrinsic steps involved in this journey. We have made a list right here which can help you set your goals right and achieve them one at a time.   Top 10 ways to plan your education abroad 1. A Basic plan  Every journey begins with a basic course of action. Sometimes journeys appear more difficult than they are and this is often the case with education abroad. Charting out what you want to do demystifies the complications, it offers you clarity on what you must do next and how much time you have to do it. When global education is involved, usually the course of action starts with deciding which part of the world you want to study. The following points can help you form a well-structured plan before you get started.  2. Looking up universities  Once you decide which places you are interested in, the next step is to make a list of universities and colleges. Make sure to put down the names of institutions that have crossed your mind. In fact, you can prepare separate priority lists - one for your dream colleges and another for institutions that can offer your desired course or potential research supervisor. This way, through newer shortlists you can reach the final list as you do more research on each college.  3. Time management  While noting down the names of the universities and colleges, make sure to also look up their application deadlines. Knowing the deadlines for submitting applications is what will give an ultimate edge to your course of action. Now you will have an idea about the approximate number of days you have in your hands to prep yourself. Usually, the date for submission of applications comes under the same month. Not knowing the deadlines is what creates all the stress and confusion. But once you are aware of them, you can be confident and focus on making optimum use of it in gathering resources, and money and developing your skills.   4. Savings  Going abroad is a costly affair. Knowing how much time you have on your hands also lets you calculate how much money you can save. The income-expenditure ratio also becomes important in deciding how much money you can put away as savings. Start saving as soon as you can. Even if you are not sure about going abroad for your higher education, it is still advisable to put away money in general for education. On deciding to pursue a global education, make note of the tuition fee, cost of living, and other miscellaneous expenses that might be incurred during your stay there. This gives you clarity on much you will need to save.  5. Investment  Be it education or any other significant event in your life, investing is always an improvement upon saving money. Savings do not generate more wealth, investments do. You can look up different mutual fund schemes to know which one will be the best for you. Fixed deposits have a certain rate of interest, but mutual fund schemes usually offer more than that. You are also advised to start investing in foreign exchange stocks like US stocks to make up for the depreciating value of the Indian currency and the subsequent rise in the cost of pursuing education abroad.   6. Building Credit  Another financial aspect that is quite understated is the importance of building credit. Building and maintaining a good credit score can go a long way in availing you of the best deals in loans with negotiable rates of interest. It is also crucial to start young and early, for example, with education loans or simply with credit cards. When the time comes to go abroad, your impressive credit score will make you qualified for the student loan that can support your global education.    7. Scholarships  An important thing you are required to look up while checking out different institutions is the scholarships that apply to you. In a lot of cases, deserving candidates can avail themselves of different scholarships that pay their tuition fee or at least a considerable part of it. In the case of research, you might enjoy deductions on the tuition fee from the institution itself, alongside receiving a stipend. Read up thoroughly about these international scholarships and the criteria or qualifications required to avail of them.  8. Building Contacts  The process of building contacts is something you should ideally get started with while you are in the stage of planning the basic course of action. Taking the advice of peers or seniors who have already been through this process can offer perspective and useful information to ease up the journey for you. Later, you might have to build contacts with the faculty member(s) of certain institutions that you are aiming to get into. This is usually the case for research scholars and falls under the application procedure.  9. Skill Development  Skill Development takes into account prepping for the final application submission as well as becoming sharper at the subject you are going to pursue. Deciding to pursue global education is sometimes synonymous with entering the tough competition. Make sure you are doing your best in presenting yourself to the world as a deserving candidate. Skill development also takes into account clearing the examinations that are often recommended or mandated by some institutions as proof of your worthiness. These include SAT, GMAT, GRE, TOEFL, IELTS, and so on.    10. Preparing for Applications & Interviews  Last comes the main procedure - that of submitting applications and attending interviews. As scary as it sounds, once you are done with all of the above, you will find yourself to be more at peace and confident to brave it all. Institutions might require you to submit essays or answer questions alongside the submission of the SOP and the main application. There might be interviews on a group or individual basis. Find out about these things beforehand so that you can be well-prepared when the time comes.    Conclusion The correct way to simplify a complicated procedure is to break it down into small parts and set short-term goals that make it look doable. The thought of pursuing global education can make you anxious at first but with the right plan, you can ace it.  EduFund is your partner through and through, whether it is guidance that you need or student loans, we're here for you. FAQs How can I make my application better for studying abroad? Start early. Be honest with your details, especially with your SOP. Show your involvement in extra-curricular activities, community service, and work experience. Add letters of recommendation from your teachers, counselors, employers, etc. How do I motivate myself to work on a better plan for education abroad? You can motivate yourself by constantly reminding yourself of the great educational and career opportunities that await you after you complete your studies. You'll have a whole new experience of living in a different country, miles away from home. You'll be able to learn great things about different cultures, share your culture with others, make new friends, learn a new language, and find great employment opportunities. What skills do I need to develop to study abroad? In order to not only get admission abroad but also successfully manage to thrive there, you must develop the following skills - Independence, adaptability, communication skills, cultural awareness, budgeting, time-management, networking, flexibility, etc.
11 reasons to study in Australia

11 reasons to study in Australia

Australia, the land of incredible opportunities and job scopes is known for its top-class educational facilities. It is an excellent choice for international students who want to study abroad and gain vocational and technical education innovatively and effectively. There are several reasons why children who study in Australia have found the experience academically and emotionally rewarding. Let us go through some of them. Important reasons to study in Australia 1. World-class institutions Out of the top 100 global universities, the best-known six, including the University of Sydney and the University of Melbourne, are located in Australia. The world-class institutions offer international standards of education in fields like technology, finance, medicine, accounting, engineering, etc. The technologically-advanced classrooms, impeccable lectures, outstanding training facilities, and extensive support services are a magnet for international students who aspire to study abroad.  2. Teaching and learning process Parents should send their children to study in Australia because of a unique education system that supports innovative teaching and advanced learning programs. The strategies encourage students to become critical thinkers so that they can easily achieve their personal and professional dreams later on.  3. Globally-recognized programs The degree programs offered by Australian universities are authorized by the Australian Qualification Framework (AQF) and accepted by national and international agencies adding high value to the acquired qualification.  4. Affordability Both the college fees and the cost of living in Australia are affordable if someone has planned their finances well. The government also offers different earning opportunities to students that prove an immense help in meeting daily expenses successfully.  Additional read: Fund your child's master's in Ireland 5. Scholarships Lots of students want to study abroad but are unable to do as it is an expensive affair. In Australia, almost 300 million dollars worth of student scholarships are for grabs every year. If your child is one of the lucky ones who has managed to win a scholarship for higher education then they are up for a winning ride.  The Edufund App has a dedicated team of experts who provide support for children’s overseas education. They counsel students and their parents so that it becomes possible to apply for scholarships and make their dreams true.  6. Advanced research opportunities  Australia offers advanced country-based research opportunities to learners who want to boost their careers with help of research and development. Several universities spend a significant budget on R&D to ensure progress in different fields. They also offer fellowships to interested students to undertake research in their area of choice.   7. Easy access to student visas One of the major reasons why students prefer to study in Australia is because of the easy accessibility to a student visa. The process is simple and quick for applicants who have their health insurance and finances in order.  8. Gain work experience and earning opportunities along with studies Students in Australia are allowed to work 40 hours every two weeks or 20 hours every week during the semester and full-time during the semester break. This is a golden opportunity for students who want to gain work experience and earning opportunities along with their studies.  The minimum wage for part-time jobs is 17 dollars per hour and this earning opportunity is a blessing in disguise for students struggling to meet their financial needs.  8. Multi-cultural society Australia boasts of a multicultural society that promotes cultural diversity. This place is a boon for international students with diversified backgrounds who can easily find familiar people within the communities.  9. Safe environment According to the UN’s World Happiness Report, Australia is among the top 10 safe and happy places in the world. The government has a strong infrastructure in place that provides security and safety to all its citizens including domestic and international students all over the country.  10. Student support system The Australian government has an excellent student support system in place that provides help to international students facing any issues. The Federal Department of Education in Australia operates an easy-to-contact helpline that offers help to students with issues related to safety, accommodation, education or work, etc.  11. Numerous employment opportunities The career-focused programs offered by Australian universities offer extensive knowledge in different subjects. The diverse curriculum empowers students with the necessary skills to face challenges in the outside world and gain employment opportunities.  Conclusion Australia has proved itself as one of the most welcoming education providers in the global arena. International students who study in Australia are attracted because of the interactive learning environment, globally-acclaimed universities, affordable educational programs, and scenic attractions. Moreover, the country is known to open new doors of opportunities that promote personal and professional growth. Consult an expert advisor to get the right plan TALK TO AN EXPERT
15 gadgets to make student life easier

15 gadgets to make student life easier

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

4 essential tips on investing in your child's education

Life becomes easier and more manageable with planning. A very important part of a happy and balanced life is managing your finances well. This responsibility becomes manifold if you have a family to provide for. Prioritizing the prior planning of your child’s college education can make your retirement life effortless and stress-free. Put away savings to preserve wealth. Invest money to generate more wealth. At the end of the day, gaining that fine balance between your savings, investments, and spending habits is what will secure a beautiful future for you as well as your family. Here are some pro tips on how to invest and save for your children’s college education. 1. When to start? Timing is everything. The logic is simple - the earlier you start, the more wealth you can generate and accumulate. You may begin as early as the family planning stage itself. Even if you do not have a clear sight of the stream of academics your child might pursue later in life, it does not hurt to put away money. As your child grows up, they might decide upon what line of academics they want depending on their career goals. Your savings will come in handy in reassuring your child that you are perfectly prepared to back them in realizing their dreams as there will already be a considerable amount of funds they can count on. 2. Compartmentalise your savings The habit of saving money regularly is one of the healthiest habits one can inculcate. But mastering the art of saving requires self-regulation and a sense of organization. Putting away a bulk of money indiscriminately is not the most effective way of saving. Keep track of your expenses and your income; device upon an amount you can afford to put away as savings. Make a list of all the things you need to save for - emergencies, education, health, housing, and so on. Divide your savings accordingly. The act of compartmentalizing savings can also be effective in regulating your spending habits. You can also inculcate this healthy habit in your child from an early age by encouraging them to save money from their monthly allowances. 3. Consider different investment options Investing is always an improvement upon saving because investments can generate new wealth. Thus, it is not enough to just put away money as savings; you also need to allocate funds to certain investments that suit your monetary goals. There are different kinds of investment channels you can opt for. Some of us prefer fixed or recurring deposits while others want to generate more returns and go for mutual funds. Mutual funds can be of different types depending on the factors like the amount of risk, duration, return rates, etc. The mode of payment can also vary. For example, you can go for a one-time investment or you can choose monthly SIPs. Be well aware of all kinds of investment plans available so that you can choose the best one for yourself. 4. Invest in a global education Your savings and money made from investments will be especially useful when you send your child abroad to pursue a college education. Even if you are not sure about the possibility of global education in the future, it is always advisable to remain prepared for the same. Simply saving money is not enough. Investing is a better idea and in the case of global education, it can be beneficial to invest in foreign stocks. This is because the value of the Indian currency is forecasted to fall in comparison to other stable currencies in the world. This means that the cost of living and studying abroad will be way higher than the cost of living and studying in a new city within India. Once you set your financial goals, find out about investment schemes with international equity funds from countries like the US, so that you can make money in a more stable currency. Conclusion There can be several investment goals relating to different parts of your life like yourself, your spouse, relatives, housing and accommodation, health, gadgets, and emergencies. Mixing these up will only cause chaos and distress. Hence, it is important to think separately about saving for your children’s college education and indulge in smart investments. Consult an expert advisor to get the right plan TALK TO AN EXPERT
4 Reasons why you should have an EduFund

4 Reasons why you should have an EduFund

Why should you have an education fund dedicated to your child’s college education? Don’t you already have to worry about saving up for your home, your retirement, and any other emergency that may arise? With all these goals it might look daunting to have another fund for education as well. Is it such a big deal? Well yes, It is a very big deal! Here are the top 4 reasons why you need to start saving up for education, as soon as you can, even if your child is just 4 years old! 1. The cost of education will most likely jump (a lot!) education-cost-jump In India, the cost of education is increasing at a rate far higher than the inflation rate. According to a report by the National Sample Survey Office (NSSO) - between 2008 and 2014, the average annual private expenditure for general education (primary level to post graduation and above) shot up by a staggering 175 percent while during the same period, the annual cost of professional and technical education increased by 96 percent. ‍The expenses typically include course fees, books, transportation, coaching, and other related costs. A recent ASSOCHAM survey also reflected this trend -  parents are ending up spending almost 50% of their income on children’s education, today. Studying abroad provides more options to students compared to the highly competitive and increasingly expensive higher education landscape in India. However, getting admitted into a premier institute abroad requires students to shell out nothing less than a crore/per year, just for tuition fees. For e.g. Stanford’s tuition fee for its MBA program is USD 140000/year and which is more than one crore, considering the currency rates that are prevalent now. Even if you factor in an inflation rate of just 10%, it's going to cost double the amount to send your child to college, say 15 years later, than what it costs today. Whichever destination you might choose to send your child to college, the money that you are going to spend, just on tuition fees, will be very high. 2. To avoid dipping into your retirement corpus! retirement-corpus It is more prudent to maintain separate funds for your savings and your child’s education. ‍This is due to the simple reason that no one is going to give you a loan to take care of your expenses post-retirement. While your child may get a loan that will fund his/ her education expenses, you need to make sure that you and your spouse, are not dependent on one post your retirement. Hence, EduFund comes to the rescue! 3. Let your child be debt-free! Education loans are easily available from banks and other financial institutions and are attractive to many students who are not able to afford higher education – especially abroad. But then again, education loans are termed at extremely high-interest rates, not to mention the collaterals attached to them. In this scenario, having an education fund will help. Your child will not start her career with a debt burden hanging over her choice of job. And with the growing uncertainty in jobs due to the current global economic slowdown, there is no job security that assures steady income to pay off an education loan. 4. The Competition is just going to increase! The competition to get into the best colleges, foreign or Indian, has always been high. We all know the importance of studying well to get into the best colleges. But the increasing population and increasing enrolment in higher education have ensured that what was possible to achieve with 80% marks in the year 2000, now requires at least 95% marks. And, there are more people competing for the same number of seats. So, getting into one’s college of choice on merit alone or with a scholarship is going to be much more difficult than it was. In fact, parents are now having to prepare to handle competition even for KG admissions for toddlers. Many of them start planning right at child-birth on which school their child should go to. So, start planning now! When you start early, you have the freedom of choice in college as you don’t have to worry about the cost of college. Having a corpus fund for education to draw from when the time arises is imperative to ensure a good education and a good career for your child. And even if your child’s choice of career changes as time passes, you can adapt and be ready with the funds, when required. FAQs What is EduFund? EduFund is an investment app dedicated to helping Indian parents save, invest and plan for their child's education needs. How can EduFund help you? EduFund can help you invest, save and plan for your child's education needs. It allows you to customize your plan, and invest in tools like mutual funds, US stocks, ETFs, and digital gold to diversify your investments. It sets long-term and short-term goals for parents and children to save up time and help them achieve their goals. EduFund also helps you with education loans and connects you with the best loan partners in India and USA. How can you set up an account with EduFund? You can download the App from Play Store or apple store and set up your account free of cost. All you need is a bank account, an Aadhar, and a pan card to open your account and start investing in mutual funds. Conclusion We live in a world that is marred with competition, whether it's getting into a good college, or choosing the right investment instrument, being prepared for the future equips you to handle things better. The stability of having a corpus and not being dependent on an education loan is a reassuring move for your child to choose his/ her dream college. An EduFund may seem a far-off thing today, but it is a necessity for the future. Plan, invest, and educate!
5 degrees for your child that can cost up to 1 crore 

5 degrees for your child that can cost up to 1 crore 

The cost of education increases every year but this cost is not uniform; there are some degrees that cost more than others. Some expensive degrees like MBBS, MBA, Psychology, Law, and Dental cost up to a crore; this includes tuition costs, living expenses as well as miscellaneous costs. This is because of the popularity, high competition, limited seats, university ranking and location as well as the tremendous ROI attached to the courses. Pursuing these degrees from top-tier universities and countries like the US or the UK can cost you almost a crore of rupees!   So how should you as parents plan to fund these expensive degrees? Here are a few financial planning tips that will help you take charge of your funds and help your child pursue her dream career without any stress! Tip 1. Start early! While a corpus of Rs. 1 Cr. can sound daunting, it is achievable if you have 15 to 18 years in hand. That’s right. If you have big professional career dreams for your children, you must start saving for their education as soon as they are born. Some couples start even before the child arrives. After all, the earlier you start, the easier it will be to put the funds together.   Tip 2. Define your corpus  Always work on your goals on the higher side. The cost of education is going up by almost 10-12% a year, so allow for these growth rates, and for fluctuations in currency rates. It is difficult to predict international situations two decades from now, so you must prepare for the worst, and work with higher numbers. This will save you from having to dip into your retirement savings at the time of your child’s education.   Tip 3. Do the number crunching  This is part that most people who are uncomfortable with finance dislike. Once you have fixed the financial goal, break it down into years and months. That is the only way you will be able to build that corpus. Define how much money you will need and explore the high returns options like equities that can over time give you up to 15% returns. Also, understand the risks involved. Be warned: stay away from get-rich-quick schemes, most people lose even their capital in such experiments.   Source: pixabay Tip 4: Be consistent  Remember, Rome was not built in a day. It took centuries. Luckily, you will have to work consistently only for a couple of decades. Just set up your SIPs in mutual funds, and equities, and start putting money away in Provident Fund and Bonds. While the returns on the latter are lower, these investments add stability to your portfolio. And do it month after month for the entire duration. Do not stop, do not opt out, and do not withdraw these funds for unplanned expenses like a foreign trip or a big-ticket vehicle. Stay focussed on your corpus goal.   Tip 5.Go for high-return investments  The longer your investment horizon, the greater risk appetite you can have. You can consider a 65/35 mix or even a 70/30 mix with a higher percentage being invested in equities and other high-return instruments. Do keep in mind that higher returns are usually coupled with high risk, and you must regularly balance your portfolio to avoid losing your capital.   Tip 6. Monitor your investments  All investments must be regularly monitored. Anything that is under-performing, you must get rid of and replace with a better-performing option. But don’t try to time the market, keep your parameters clearly defined when you start your investments. This will keep you from making unnecessary mistakes in the market.   Source: pixabay Tip 7. Seek help with your investments   As the time for your child’s college admission comes closer, there are a lot of decisions you have to make to secure your child’s funds. Like turning your high-risk, high-return investment into safer options to protect your investments and corpus from any sudden market downturns, closer to the time of admission. This is an important aspect to consider as you cannot shift the time of admission. Though before taking any of these decisions, it is wise to consult a financial planner to safeguard your interests.  What we have shared here is a broad roadmap that will enable you to build the Rs. 1 Cr. corpus and fund any of the 5 expensive degrees your child may choose to pursue. While doing your initial calculations, also keep in mind that most of these courses also have entrance exams.   Preparation for these exams can start 2-3 years in advance and the coaching for the same is also expensive. You must consider having access to your funds well in time, to avoid financial stress at the last minute.   With planning, discipline, and consistency, you will be able to achieve almost any financial goal that you set for yourself. The key is to get your plans down on paper/on the computer and start working on them. So go ahead and start planning today! Consult an expert advisor to get the right plan for you  TALK TO AN EXPERT
5 Pro tips on creating your child's education fund

5 Pro tips on creating your child's education fund

Everyone speaks about the rewards of preparing early for education funds and securing them as soon as possible. What they forget to explain is how to reach that goal. Fear not, for we have prepared a list of things you might want to tick off if you want to secure your child’s education.  1. Choosing the right platform is important There are a number of investment platforms available for investors. As an investor with a goal in mind (the education fund for your child), it is important to choose a platform that is built for that purpose or has certain advantages in the pursuit of your goal. There are two great advantages of choosing a goal-specific platform - one, you separate your investments in a way that you know how much amount is set aside for that particular goal every month, and second, you get the added goal-related benefits that the platform could offer. In the case of EduFund, a platform built for parents to save for their children's education fund, you have added advantages like readily available education loans if you fall short, or free counseling if your child needs it. 2. Investing in the right mutual funds  Once you decide to invest in mutual funds to achieve higher returns than Fixed Deposits, you also need to do your research to find which investment schemes are best suited for you. Many factors play crucial roles in this procedure. For example, one of the first things you need to consider is the balance between your monetary goals and the level to which these will be fulfilled by the fund returns and the risk associated.  Time is another important factor that will shape your decision in this matter. You also need to consider what exactly you want out of your investment whether it is tax reductions or high returns with high risks or more stabilized returns with low risks. To indulge in smart investments, stay aware of the best investment schemes currently trending in the stock market. 3. Investing in international stocks Parents who like to stay alert about the current trends related to the education system and finances must be well aware of the phenomenon called education inflation. This is what makes a global education exponentially more expensive than one attained within India.  The value of the Indian Rupee has depreciated over the years against foreign currencies like the American dollar. This means that the cost of a course pursued in a foreign land like the US or the UK will be tenfold compared to the same course pursued in this country. The cost of living will be equally high overseas. A smart way to deal with this problem is to invest in international equity funds. This means higher returns because if you invest in US stocks, you will be earning in dollars, not rupees. Moreover, if your investments in Indian stocks get affected by market fluctuations, you can still depend upon your foreign stock investments which will remain relatively more stable.  4. Consider the availability of education loans  Sometimes your life savings and your investment returns are not enough to fund your child’s education. Do not worry. Education loans can take care of your child’s aspirations in such situations. Even if you are in a position to be able to afford your kid’s dream college, student loans are still a healthy way to teach your kid the value of money and how to build credit.   Creditworthiness is a virtue that will financially discipline your child so that they can take monetary decisions in your absence. It will also ensure that they can take future loans as part of their education fund at low-interest rates. Only loans exceeding a very high amount of money require collateral or a security deposit, which means you can easily avail of student loans.  5. The right guidance for your children Career and academic counseling sessions are crucial for your kid if they are going through a transition phase in their lives. As their primary caregiver, you are entitled to guide their way but sometimes what might be required is professional help. You are longer required to pay for these counseling sessions. A platform like EduFund offers them the best education counseling services in India for free of cost. Let nothing stop your child from achieving their goals.  6. Expert advice to get you to your goal EduFund believes in helping you attain as much clarity on financial affairs as possible. In case of expert advice on investment, you can rely on the world-class experts from EduFund. The Edufund app provides you with all the useful tools to attain the best from your child’s education fund.  For example, it comes with a calculator that helps you calculate the education cost. This is a smart calculator developed to give you inflation-adjusted rates. This is the first step toward getting an idea of how much you will need to invest or save up as an education fund.  FAQs How do I plan my child education fund? Starting early is key to building your child's education fund. You can start saving with mutual funds, PPF, US stocks, Indian stocks, fixed deposit and much more. Before starting it is important to consult a financial advisor and figure out the cost of education before starting an SIP. Which fund is best for child education? Here are some of the best funds for your child's education fund: Axis Long-Term Equity FundSBI Equity Hybrid FundParag Parikh Flexi Cap FundAditya Birla Sun Life Tax Relief 96 Fund Growth Aditya Birla Sun Life Tax Plan-GrowthDSP BlackRock Tax Saver Fund Growth Axis Long-Term Equity Fund Growth How do you build a corpus for child education? The first step to building a corpus for child education fund is to figure out the cost using the College Cost Calculator. Knowing the financial goal you need to invest in before starting an SIP helps you remain focused and know the exact amount you need to save monthly to get started. Conclusion What seems like a mammoth task can be easily managed by diving it into smaller tasks and simplifying it. Each small step is quite crucial in itself. But once you have the checklist ready, you can be sure if not losing sight of things. DisclaimerMutual fund investments are subject to market risks. The previous performance of a fund or scheme is no guarantee of future success. Please read the offer document carefully before investing.
5 Reasons why Global Education is the Best for Indian Students

5 Reasons why Global Education is the Best for Indian Students

It is universally acknowledged that education is a very powerful weapon. Education can transform an individual and colleges can broaden a child’s horizon. Every child deserves to receive a quality education. There are various reasons why global education is the best for Indian students. ‍From our experiences, we know that when a student receives a world-class education, it helps them become their best version – professionally and personally. Pursuing higher education outside of India seems to be promising in more ways than one. In this blog we will talk about how studying abroad can affect your life for the better. Let's get started. 5 Reasons why Global Education is the best for Indian Students When you think about it, there are innumerable ways in which a global education can benefit an Indian student. In this article, we will talk about the 5 major ones. Let's get started. 1. Changes Your Life, for Good! International exposure to study at a foreign university and the experience of living in a new country can be life-changing! The combined power of both results in gaining practical knowledge that can help you in life immensely. Living alone in a foreign country can be daunting in the beginning, but it teaches you an immense number of values, and ethics, and not to mention, you become a pro chef! You learn what is not written in the textbooks. Such experiences also shape your personality and groom you as a responsible professional. 2. Holistic And not just Academic Development The Indian education system offers academic rigor. However, there still is room for improvement and development. The cut-offs in premier Indian colleges soar to touch the sky. But whether these colleges provide excellent holistic development is still a big question mark. Regardless of the foreign country you prefer to study in, most global universities focus on not just academics, but also professional qualifications, leadership, and personal development. Foreign programs have gained popularity because the faculty is invested in a student's all-around growth. 3. Opens closed doors Whether it is studying for a master's abroad or Ph.D. – foreign universities offer what you commonly don’t find in India. An array of courses across all fields and subjects like - Artificial Intelligence and Data Security or Criminology, and Media Relations. You name it and they have it. As per reports released by the USIEF, in 2019, Indians studying in the U.S. made up 17% of the international student population there. If you want to take the road less traveled or pursue a career in a highly-specialized niche, global education opens closed doors. 4. Brighter Career Prospects ‍Indian students who have received good foreign education have an edge over others. You wonder why? Recruiters view international experience as an asset. It is reflective of many things like your skills to compete in a global setting and your ability to adapt to diverse cultures. Global education helps you hone your skills and grow exponentially. ‍After completing their degree, outstanding students can bag an international job as well. 5. Diversity They appreciate unique students. Many top-notch B-schools and other universities seek to promote diversity and inclusion. This means that the admissions team deliberately tries to encourage people from different walks of life to join the classroom. Highly reputed universities welcome meritorious international students. Some even try to strike a balance in their gender ratio thereby including talented girls and giving them an equal chance to fly. As the saying goes- "Sometimes the smallest step in the right direction ends up being the biggest step of your life!" Take the first step towards a brighter future. And, live the life of your dreams! FAQs Why is global learning important for students?   International exposure gained while studying at a foreign university and the experience of living in a new country can be life-changing! The combined power of both results in gaining practical knowledge that can help you immensely in life.  What is the value of global learning?   ‍Indian students who have received good foreign education have the edge over others. You wonder why? Recruiters view the international experience as an asset. It is reflective of many things, like your skills to compete in a global setting and your ability to adapt to diverse cultures. International education helps you hone your skills and grow exponentially.  Why foreign education is better than Indian education?   They appreciate unique students. Many top-notch B-schools and other universities seek to promote diversity and inclusion. This means that the admissions team deliberately encourages people from different walks of life to join the classroom. Highly reputed universities welcome deserving international students.    Why do Indians prefer foreign education?   Indian students prefer foreign education because of many factors. Studying at an international university will give students great exposure in terms of meeting people from different cultures and countries. It will also create excellent employment opportunities abroad. Having studied at a foreign university will add value to a student’s resume.   Conclusion These are some of the major reasons why global education molds an individual for the better. In reality, there are many more points that one can consider. Whether it is the quality of education- or the experiences one attains, education abroad is a stepping stone toward untapped opportunities. We know many of us are now thinking, "What about the fund required to study abroad?". Well saving up for higher education is not as hard as you think. If you start saving early, you can create an education fund that can support your dreams of studying abroad.
5 reasons why your child's college education is at stake

5 reasons why your child's college education is at stake

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