June 19, 2021

Union Mutual Funds. Who should invest?

Union Mutual Funds. Who should invest

For over a decade, the Union Mutual Fund has been the Union Bank of India’s investment wing. It has been striving to make its mark and has successfully boosted the economy through investment ventures and achieved sustainable investment in capital markets.

The Union Mutual Fund was set up on December 30 and had access to the client base of the bank and worked on it.

The AMC was known as Union KBC Mutual Fund. Because it was set up in collaboration with the KBC Asset Management NV, set in Belgium. KBC had a stake of 49%, but Union Bank always had a majority stake.

In the year 2016, when the Bank held the entire share, KBC pulled out shortly thereafter. Eventually, in 2017, Dai-ichi life, a company from Japan, acquired an almost 39.62% stake in the AMC. Though it did not change the structure of the AMC yet, Dai-ichi appointed a nominee to the Board of Directors.

Now the Union Mutual Fund is co-sponsored by the bank and Dai-ichi Life.

Regarding the bank, Union Bank of India will complete a hundred years of existence in the year 2019. It was inaugurated by Mahatma Gandhi in 1919. In the regime of Indira Gandhi, it was nationalized and since then grew in leaps and bounds. Presently, the bank has 240 branches all over India.

The bank also has a global presence, with its office in Abu Dhabi opened in 2007. It also has a branch in Sydney, Hong Kong, and Antwerp.

With an asset value of Rs 4 lakh crore and 4300 branches all over the country and beyond, it is listed in the Forbes 2000 list with 35000 employees.

In 2019-20, Union AMC’s total income rose to INR 48.36 Crore from 48.30 Crore in the previous financial year. 

Important information about union mutual fund

Name of the Mutual FundUnion Mutual Fund
Established23rd March 2011
Date of Incorporation30th December 2009
SponsorsUnion Bank of India Dai-ichi Life Holdings, Inc.
TrusteeUnion Trustee Company Private Limited
 ChairmanRajkiran Rai G.
CEO and MDG. Pradeepkumar
CIOVinay Paharia
Investor Service Officer  Joseph Idichandy
Compliance OfficerPadmaja Shirke
AuditorsFor Trustee Company – M/s. Chaitanya C Dalal & Co   For Mutual Fund Schemes – M/s. Deloitte Haskins and Sells LLP For AMC – M/s. Jain Chowdhary & Co
RegistrarsComputer Age Management Services Ltd. Address: 7th Floor, Tower II, Rayala Towers, 158, Anna Salai, Chennai – 600002
Phone: 1800-3010-6767 / 1800-419-7676
Fax: 044-30407101 Email: enq_h@camsonline.com Website: www.camsonline.com
Address, AMC      Unit No. 503, 5th Floor, Leela Business Park, Andheri Kurla Road, Andheri (East) Mumbai – 400059
Phone 022-67483300 / 1800-200-2268
Fax022-67483400/3401/3402
Emailinvestorcare@unionmf.com
Website  http://www.unionmf.com

Ten top-performing union mutual fund schemes

1. Union Small Cap Fund

The Union Small Cap Fund, with a NAV of 21.2600 (Regular Growth) (as on 13th April 2021), is the top-performing fund in the ‘Equity: Small Cap’ category.

This open-ended fund was launched on 10th June 2014 and has given trailing returns of 85.56% in one year (as of 12th April 2021). The fund considers the NIFTY Smallcap 100 TRI as its benchmark. 

Key information

Minimum InvestmentINR 5,000
Minimum Additional InvestmentINR 1,000
Minimum SIP InvestmentINR 2,000
Minimum WithdrawalINR 1,000
Exit Load1% for withdrawals before 15 days
Return Since Inception (10th June 2014):11.65% (as on 13th April 2021)
AssetsINR 425 Crore (as of 31st March, 2021)
Expense Ratio2.38% (as of 28th February 2021)

2. Union Value Discovery Fund

The Union Value Discovery Fund, with a NAV of 13.3900 (Regular Growth) (as on 13th April 2021), is the top-performing fund in the ‘Equity: Value Oriented category.

This open-ended fund was launched on 5th December 2018 and has given trailing returns of 58.41% in one year (as of 12th April 2021). The fund considers the S&P BSE 500 TRI as its benchmark. 

Key information

Minimum InvestmentINR 5,000
Minimum Additional InvestmentINR 1,000
Minimum SIP InvestmentINR 2,000
Minimum WithdrawalINR 1,000
Exit Load1% for withdrawals before 15 days
Return Since Inception (5th December 2018):13.19% (as on 13th April, 2021)
AssetsINR 116 Crore (as of 31st March, 2021)
Expense Ratio2.56% (as of 28th February, 2021)

3. Union-Focused Fund

The Union Focused Fund, with a NAV of 14.4400 (Regular Growth) (as on 13th April 2021), is the top-performing fund in the ‘Equity: Flexi Cap’ category.

This open-ended fund was launched on 5th August 2019 and has given trailing returns of 57.72% in one year (as of 12th April 2021). The fund considers the S&P BSE 500 TRI as its benchmark. 

Key information

Minimum InvestmentINR 5,000
Minimum Additional InvestmentINR 1,000
Minimum SIP InvestmentINR 2,000
Minimum WithdrawalINR 1,000
Exit Load1% for withdrawals before 15 days
Return Since Inception (5th August 2019):13.19% (as on 13th April, 2021)
AssetsINR 190 Crore (as of 31st March, 2021)
Expense Ratio2.52% (as of 28th February, 2021)

4. Union Long-Term Equity Fund

The Union Long Term Equity Fund, with a NAV of 32.7700 (Regular Growth) (as on 13th April 2021), is the top-performing fund in the ‘Equity: ELSS’ category.

This open-ended fund was launched on 23rd December 2011 and has given trailing returns of 58.43% in one year (as of 12th April 2021). The fund considers the S&P BSE 500 TRI as its benchmark. 

Key information

Minimum InvestmentINR 500
Minimum Additional InvestmentINR 500
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 500
Exit LoadNil (Lock-in period – 3 years)
Return Since Inception (23rd December 2011):13.59% (as on 13th April, 2021)
AssetsINR 335 Crore (as of 31st March, 2021)
Expense Ratio2.33% (as of 28th February, 2021)

5. Union Flexi Cap Fund

The Union Flexi Cap Fund, with a NAV of 26.4100 (Regular Growth) (as on 13th April 2021), is one of the top-performing funds in the ‘Equity: Flexi Cap’ category.

This open-ended fund was launched on 10th June 2011 and has given trailing returns of 58.68% in one year (as of 12th April 2021). The fund considers the S&P BSE 500 TRI as its benchmark. 

Key Information

Minimum InvestmentINR 5,000
Minimum Additional InvestmentINR 1,000
Minimum SIP InvestmentINR 2,000
Minimum WithdrawalINR 1,000
Exit Load1% for withdrawals before 15 days
Return Since Inception (10th June 2011):10.36% (as on 13th April 2021)
AssetsINR 482 Crore (as of 31st March 2021)
Expense Ratio2.38% (as of 28th February 2021)

6. Union Large & Midcap Fund

The Union Large & Midcap Fund, with a NAV of 12.8500 (Regular Growth) (as on 13th April 2021), is one of the top-performing funds in the ‘Equity: Large & Midcap’ category.

This open-ended fund was launched on 6th December 2019 and has given trailing returns of 56.89% in one year (as of 12th April 2021). The fund considers the S&P BSE 250 Large MidCap TRI as its benchmark. 

Key information

Minimum InvestmentINR 5,000
Minimum Additional InvestmentINR 1,000
Minimum SIP InvestmentINR 2,000
Minimum WithdrawalINR 1,000
Exit Load1% for withdrawals before 15 days
Return Since Inception (10th June 2011):20.36% (as on 13th April, 2021)
AssetsINR 190 Crore (as of 31st March, 2021)
Expense Ratio2.63% (as of 28th February, 2021)

7. Union Largecap Fund

The Union Largecap Fund, with a NAV of 13.8000 (Regular Growth) (as on 13th April 2021), is one of the top-performing funds in the ‘Equity: Large Cap’ category.

This open-ended fund was launched on 11th May 2017 and has given trailing returns of 52.62% in one year (as of 12th April 2021). The fund considers the S&P BSE 100 TRI as its benchmark. 

Key information

Minimum InvestmentINR 5,000
Minimum Additional InvestmentINR 1,000
Minimum SIP InvestmentINR 2,000
Minimum WithdrawalINR 1,000
Exit Load1% for withdrawals before 15 days
Return Since Inception (11th May 2017):8.55% (as on 13th April 2021)
AssetsINR 185 Crore (as of 31st March, 2021)
Expense Ratio2.14% (as of 28th February, 2021)

8. Union Balanced Advantage Fund

The Union Balanced Advantage Fund, with a NAV of 13.8900 (Regular Growth) (as on 13th April 2021), is one of the top-performing funds in the ‘Hybrid: Dynamic Asset Allocation’ category.

This open-ended fund was launched on 29th December 2017 and has given trailing returns of 37.72% in one year (as of 12th April 2021).

The fund considers the S&P BSE Sensex 50 TRI and CRISIL Composite Bond TRI as its benchmark. 

Key information

Minimum InvestmentINR 5,000
Minimum Additional InvestmentINR 1,000
Minimum SIP InvestmentINR 2,000
Minimum WithdrawalINR 1,000
Exit Load1% for withdrawals before 15 days
Return Since Inception (29th December 2017):10.50% (as on 13th April, 2021)
AssetsINR 842 Crore (as of 31st March, 2021)
Expense Ratio2.49% (as of 28th February, 2021)

9. Union Equity Savings Fund

The Union Equity Savings Fund, with a NAV of 12.3600 (Regular Growth) (as on 13th April 2021), is one of the top-performing funds in the ‘Equity: Equity Savings category.

This open-ended fund was launched on 9th August 2018 and has given trailing returns of 20.34% in one year (as of 12th April 2021). The fund considers the CRISIL Short-Term Debt Hybrid 75+25 TRI as its benchmark. 

Key Information

Minimum InvestmentINR 5,000
Minimum Additional InvestmentINR 1,000
Minimum SIP InvestmentINR 2,000
Minimum WithdrawalINR 1,000
Exit Load1% for withdrawals before 15 days
Return Since Inception (9th August 2018):9.08% (as of 13th April, 2021)
AssetsINR 169 Crore (as of 31st March, 2021)
Expense Ratio2.07% (as of 28th February, 2021)

10. Union Corporate Bond Fund

The Union Corporate Bond Fund, with a NAV of 12.0392 (Regular Growth) (as of 12th April 2021), is one of the top-performing funds in the ‘Debt: Corporate Bond’ category.

This open-ended fund was launched on 25th May 2018 and has given trailing returns of 9.53% in one year (as of 12th April 2021). The fund considers the CRISIL Corporate Bond Fund as its benchmark. 

Key information

Minimum InvestmentINR 5,000
Minimum Additional InvestmentINR 1,000
Minimum SIP InvestmentINR 2,000
Minimum WithdrawalINR 1,000
Exit Load1% for withdrawals before 15 days
Return Since Inception (25th May 2018):6.64% (as of 13th April, 2021)
AssetsINR 378 Crore (as of 31st March, 2021)
Expense Ratio1.04% (as of 28th February, 2021)

How can you invest in Union mutual fund via EduFund?

Investing in Union mutual fund via Edufund is a simple, four-step process.

Step 1 – Install the EduFund App from Google Play Store or Apple App Store and sign in to create an account online.

Step 2 – Select a plan – Browse through a wide range of Union mutual fund schemes and pick the perfect scheme for your financial aims.

You may invest in a Systematic Investment Plan (SIP) or a large sum. The EduFund app has an inbuilt recommendation engine that suggests the scheme that serves your financial objectives the best.

Step 3 – Keep track of your transaction(s) – The amount you invest in a specific scheme will reflect in your EduFund account in four working days.

You can keep track of the Union mutual fund NAV, statement, account balance, and other things in the app. The EduFund app gives you the option to redeem, purchase, or switch Union mutual fund units.

Step 4 – Take the advice of a Mutual Fund Counsellor – You can get in touch with a consultant to discuss your financial aims and get customized advice.

EduFund uses state-of-art encryption and authentication technologies to safeguard your transactions and secure your investments.

Best performing fund managers at union mutual fund

Mr. Vinay Paharia

Mr. Vinay Paharia functions as the Chief Investment Officer at KBC Union Bank Mutual Fund. Mr. Paharia has over 16 years of experience in the sector of financial services. He ventured into the financial domain as an Equity Research Analyst at First Global Stockbroking Pvt. Ltd.

He held the same designation at his following two organizations, DBS Cholamandalam AMC and K R Choskey Shares and Securities Pvt. Ltd. Just before joining Union Mutual Fund; he worked with Invesco Asset Management (India) Pvt. Ltd. for over 11 years.

Mr. Paharia has earned the degree of MMS in Finance from Welingkar Institute of Management. He also qualified as a CFA from the Institute of Chartered Financial Analysts of India. His years of experience and acumen in business have been a great asset for the Union Mutual Fund investment team, where he handles 9 UMF plans.

Some of the important funds under his leadership are Union Multi-Cap Fund, Union Small-cap Fund, and Union Equity Savings Fund.

Mr. Parijat Agrawal

Mr. Parijat Agrawal is a PGBM from IIM Bangalore. He heads the portfolio of Fixed Income at Union KBC Mutual Funds. He has a career that spans over two decades.

Mr. Agrawal has an in-depth knowledge of the financial market in India. His years of experience in finances make him the troubleshooter for financial glitches.

Mr. Agrawal associated himself with the Union Mutual Fund from its initial days and has been there for 9 years hence. Before that, he headed the Fixed Income portfolio at SBI Mutual Fund. He was also the Head of Treasury at the State Bank of Mauritius.

Mr. Agrawal is at the helm of affairs in the portfolio of Fixed Income At Union Mutual Fund. He is in charge of 12 schemes which amounts to a net AuM in excess of INR 2,009 Crore.

Among several others, Mr. Agrawal oversees the Union Balanced Advantage Fund, the Union Equity Savings Fund, and Union Dynamic Bond Fund.

Mr. Anshul Mishra

Mr. Anshul Mishra is among the most versatile Fund Managers at Union Bank KBC Mutual Fund. With experience spanning over a decade in the field, he has steadily given towering returns on all the funds he oversees.

Before joining the Union Mutual Fund, Mr. Mishra worked as the Fund Manager at IDBI Asset Management Ltd. for 3 years. He was associated with the ING Mutual Fund, where he was in charge of Equity and Tax Saving Funds for 5 years.

At the Union Mutual Fund, Mr. Anshul Mishra manages 9 schemes with a total AuM of over INR 1031 Crore. Some of his largest-grossing funds are the Union balanced Advantage Fund and the Union Large Cap Fund.

Mr. Agrawal holds an MBA and a CFA, as well as a B.E degree in Mechanical Engineering.

Mr. Anindya Sarkar

Mr. Anindya Sarkar has earned a double MBA in Finance and Risk Management from St. John’s University- School of Risk Management and Savitribai Phule Pune University, respectively. He brings twenty years of experience with him, which makes him one of the most sought Fund Managers at Union Mutual Fund.

Mr. Sarkar has been working with Union Bank KBC Mutual Fund since its initiation. He joined the Union Bank KBC Mutual Fund as its Vice President in Risk Management, a designation that he held for over eight years, before becoming a Fund Manager in the company.

Before joining Union Mutual Fund, Mr. Sarkar worked with several firms both in the country and abroad. He worked as a Broker at the ICAP India Pvt. Ltd and the DVF Ltd. Then he joined as a Risk Manager at The Navigators Group, Inc. in New York., Mr. Sarkaris in charge of 3 funds at the Union Mutual Fund with a net AuM of more than INR 346 Crore.

Why should you invest in a union mutual fund?

It is one of India’s largest AMCs and has many benchmark-beating funds to offer to its customers. It has an asset value of INR 3623.49 Crore and an extensive network of distributors providing its schemes to investors.

The AMC has around 4300 branches across the length and breadth of India. The Union Mutual Fund caters to the needs of all types of investors.

Select EduFund for investing in Union mutual fund

The process of investing in Union mutual funds through EduFund is straightforward and convenient. The consultants at EduFund are very experienced and give you personalized solutions for the financial ambitions that you aspire to achieve. A meager investment starting from INR 5,000 through EduFund can open avenues for you to increase your capital quickly.

  • Unique Support for Children’s Education: Education has become expensive, but with EduFund, which has a dedicated team of experts to cater to your children’s needs, it is easy. 
  • Secure Transactions: The security used in EduFund is 128-SSL, the safest and RIA-registered.
  • No Expertise Needed: All you need to do is rely on the process of EduFund. They will do all the needful without you being an expert in the field.
  • Extra Value-Added Benefits: A free advisory and no-commission scheme is also available without any extra charges.
  • Free Tools: You can use free tools like College Savings Calculator and SIP calculator to calculate the amount you will need in the future and save the appropriate amount.
  • Earn More by Investing Less: Not only in Indian capital markets, but Edufund also helps you invest in US Dollars and other international mutual funds.
  • Customized Research-Based Financial Plan: Before suggesting any investment to you, the team in Edufund scans almost a lakh data points and nearly 400 financial scenarios. So the reliability is huge, and the job is hassle-free.
Consult an expert advisor to get the right plan

FAQs

Which Union mutual fund is the best?

One of the top-performing Union mutual funds is Union Small Cap Fund. With a NAV of ₹29.45 as of 21st Dec 2022, this is the top-performing fund in the ‘Equity: Small Cap’ category.

What is the minimum SIP amount I can invest in top-performing Union mutual funds?

You can start Union bank’s top-performing SIPs at as low as INR 500.

Is Union mutual fund safe?

Under any scheme of Union mutual fund, investors aren’t offered any kind of assurance or guarantee for the safety of these schemes. However, the schemes provide benefits like dividend reinvestment, advanced portfolio, fair pricing, risk reduction, convenience, etc.

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    5 financial things to consider before child planning.

    Both life and wallet will never be the same once you decide to have a baby. No event in your life will signify financial change quite the way this one does, from the first prenatal appointment to the day of their college graduation (and beyond). 5 financial things to consider before child planning 1. Create a budget Before you start child planning, you need to have a budget in place. You and your partner may need to create a realistic budget based on your expenses and your streams of income. Once you know how much you can afford to spend, you will be able to tackle the costs easily. A new child is a new family member that needs space! So if you need extra space once the baby is born, figure out what kind of home you can afford, whether it's a slightly larger apartment, a warm cottage, or a pricey house. Will you want the latest baby things or your sister’s passed-on ones? Think about what sort of child care would you require and get candid with your expenses before you start making any purchases. 2. Costs associated with birth As new parents, you need prenatal vitamins, alternative therapies, labor and delivery alternatives, and screening tests. Give yourself enough time to change or upgrade insurance plans should you need more comprehensive coverage. Good health insurance is vital in this economy. Hospital bills, medical fees, and maternity costs can be high. According to estimates from the industry, a straightforward delivery could cost between Rs 50,000 and Rs 70,000, but a private specialty hospital could charge up to Rs 2-3 lakh. A cesarean delivery could result in a cost rise of up to Rs 4-5 lakh. Before having a kid, you should make financial arrangements for the costs associated with the delivery and child care. 3. Consider maternity leave The vast majority of Indian employees are not entitled to paid family leave. If the mother is employed, you might need to think about taking a lengthier (unpaid) maternity leave or a sabbatical for a year or two. This can be a huge financial loss for families that rely on both streams of income. Paid parental leave is not always an option. Find out if your workplace offers paid leave for new parents and if there are any policies in your favor that you can utilize. Determine the number of weeks covered and the proportion of your salary that is used. Do you have to use your sick and vacation days first? If you don't have access to paid time off or you're going to take more unpaid time off, you might want to cut costs or rely on your savings. Additional read: Money management tips for homemakers 4. Purchase life and health insurance You'll want your child to be stable financially if something were to happen to you or your partner. A life insurance policy can assist pay for things like child care, housekeeping, cooking, and more. Purchasing maternity insurance is the first action you can take to cover maternity costs. When purchasing health insurance, (even for a couple), it is important to confirm that the policy includes coverage for maternity costs and, if applicable, any applicable waiting periods. Additionally, by paying a larger rate, you might add pregnancy coverage to a current insurance policy. Buying health insurance is most important when considering having a child. Get your health covered in your plan so that you are not financially burdened in case of a health emergency. 5. Plan for child’s education Just like the prices of lemons and oranges are growing, the cost of education is skyrocketing. Saving for your child’s college is a necessity. When it comes to saving money for college, time and compound interest are your best friends. Even while inflation is an unavoidable fact, keep in mind that education inflation is far higher. Utilizing the force of compounding is one approach to combat this, but it will only be effective if you have a long-term strategy in place. You indeed have no idea what career path your child will take, but you still need to put aside a portion of capital that can be utilized when the time comes. Right now, you need to think about the type of education you would like to offer because the practical costs of studying engineering in India vs the US would be very different. From giving birth to seeing them off to college, watching your child grow and thrive is every parent’s dream! So give those dreams wings by planning ahead and investing for their bright future!  Consult an expert advisor to get the right plan 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 SIP is the best investment choice?

    5 reasons why SIP is the best investment choice?

    A systematic investment plan or SIP is a plan that helps you invest in mutual funds on a regular basis.  You can choose to invest weekly, monthly or even quarterly – the most popular choice being monthly. There are multiple reasons why SIPs are the best way to grow your money especially when you have a goal to plan – e.g. your child’s education. SIPs can be bought easily and you can start with a very low amount - Rs. 500 per month. In this blog, we will talk about the ‘Big 5 advantages’ that SIPs offer to you as a parent. But before that, let's understand what a SIP is What is SIP? A SIP or systematic investment plan is an investment mode through which an investor can create a regular mechanism of investment for themselves. Let's take the example of investor X. Investor X wishes to invest Rs. 10,000 every month in a mutual fund. In this case, investor X can create a SIP for a fund they want to invest in and the money will be deducted every month automatically (the deduction can be weekly, monthly, or even quarterly, depending on the investor's choice). Think of it as a recurring deposit, with better returns. Now that we know what a SIP is, let's get to know why investing via SIP is the best choice you can make to enlarge your corpus. 5 Reasons why you should invest via SIP These are the 5 main reasons why you should invest via a systematic investment plan to reach your financial goals 1. Suitable for Long-Term Investment Any financial advisor will tell you that if you want to invest long-term, SIP is the way to go. The reason is simple, regular investing and automatic deductions keep investors motivated to stay invested and reach their investment goals quicker. During the 2008 financial recession, many people withdrew money from mutual funds. However, the ones that remained invested via SIP, attained a huge profit once the markets rose. Long-term investing makes sure that even if the market is down at the moment, once the markets rise, the investor will make profits. 2. Goal-planning ‍SIPs are good tools to plan for a future goal – to buy a 4-wheeler or to pay for college tuition fees maybe 10-15 years from now. When you determine the amount required to achieve your goal, you will know how much you should invest and how long it will take to reach your goal. This will help in planning effectively. Having financial goals is very important to creating a financially secure future. One must have a defined idea about what financial goal one wants to reach by the age of 30, 40, 50, and so on. 3. Effect of Compounding Compounding is one of the biggest advantages of a SIP. Over time your investments grow because you start earning returns not on your principal amount, but on the interest that keeps getting added to it. Let's take an example. Suppose you invest Rs.1,000 in a mutual fund which gives you a yearly return of 10% p.a. Your amount becomes 1,100. at the end of the first year. At the end of the second year, the rate of return is 11%, this time the returns will be calculated on Rs. 1,100 and not the principal amount, which is, Rs. 1,000. ‍This ensures growth of your corpus and one of the reasons why experts advice you to not withdraw your investments when the market is down. 4. Curated by Experts With the increasing number of fund types like equity, debt, mixed, gold-based etc. there is a wide variety to choose from based on your risk appetite and preferred investment duration. This has led to customized offerings based on individual needs, supervised by experts in the SIP domain. All you need is to specify your goal and timeline and you are provided with the best possible funds that can meet your future goals. ‍SIPs have become popular over the past few years, because of the ease of investing and the flexibility provided in terms of the amount of money that can be invested. You can stay invested as long as you want, although average returns have been higher when invested in the long term. Research also shows that the returns offered by SIPs are more than recurring deposits in banks, in the long term. 5. Automates Your Investment Experience SIPs automate your investment experience, which makes you a regular investor. It is easy and convenient and because of the online surge, today, it is super easy to invest via SIP. If you choose the lump sum method, you will have to manually invest an amount and there may be times when you can miss an installment. ‍With automated installments and a streamlined process, investing via SIP has now become an extremely popular method, to reach long-term goals like saving up for your child's education. Consult an expert advisor to get the right plan TALK TO AN EXPERT
    SIP
    5 tips to know before investing in US stocks

    5 tips to know before investing in US stocks

    If you want to invest in the US stock market to benefit from US stocks, you may start by opening an international trading account in India. But before investing in US equities, here are the 5 important things to know before investing in US stocks. 1. Regulatory framework One of the oldest, most effective, transparent, and well-regulated stock markets in the world is the one in the United States. On US stock markets are listed some of the largest businesses in terms of market capitalization, sales, and profitability. The worldwide exposure and flavor that US markets offer are crucial since many of these listed firms have a significant global presence, scale, and operational structure. The regulatory body that monitors the operation of the US stock markets is the Securities and Exchange Commission (SEC), which was founded in 1934. It guarantees the strict application of laws and rules that establish the highest standards of openness and integrity—essential for stock markets as well as for the safety and trust of investors. 2. Impact of Foreign Exchange  The volatility in the value of the US and other currencies should be taken into account while investing in US equities. This is because before any gain (or loss) for an Indian investment is realized, it would be converted using the appropriate exchange rate in the Indian rupee. The gains (or losses) will fluctuate in lockstep with changes in the exchange rate. An Indian investor must be aware that the exchange rate can be unpredictable and is influenced by a wide range of political, economic, and supply and demand variables. 3. Liberalized Remittance Scheme According to the Reserve Bank of India's Liberalized Remittance Scheme, an individual may invest up to $ 250000 per year in US equities from India (LRS). The cap covers any money sent abroad for purchases, travel, education, or other international transactions during the year. The investor's brokerage account has to be filled before making any investments in US equities. Investors must complete Form A-2, which is available from RBI-authorized dealers. Any sum over the $250000 cap requires RBI approval. Additional read: US stocks for investing in child education 4. Taxation To make your efforts worthwhile, it is crucial to take into account the tax consequences of your international assets. Due to the Double Tax Avoidance Agreement (DTAA) between the US and India, the same income cannot be taxed twice on investments made in the US stock market. 5. Dividend tax The dividends from US stocks are taxed at a fixed rate of 30% for overseas investors. However, as a result of the tax agreement between the US and India, citizens of India pay a 25% tax rate (deducted before distribution). However, because of the double tax avoidance agreement between the US and India, the tax paid in the US may be claimed as a foreign tax credit in your domestic filing. 6. Capital gains tax Your assets in the US are not subject to capital gains tax. However, India requires you to pay tax on your overseas capital gains. This may be divided into two groups.: Long-term capital gain (LTCG)If you keep the equities for more than 24 months before realizing capital gains, you will be subject to indexation advantages and a 20% tax rate in addition to any relevant fees and other surcharges. Short-term capital gain (STCG)Standard income-tax regulations apply to any gains from assets held for less than 24 months, and they are added to your ordinary taxable income. You must also take into account the recently implemented Tax Credited at Source or TCS. Under the new regulations, a 5% TCS will be applied to all international transfers over INR 7 Lakhs in a fiscal year. It is not an additional expenditure to deduct this advance tax when submitting your taxes each year. Charges on US stock-broking account  Using an Indian stock brokerage account to invest in the US stock market is prohibited. You would need to create one with a US stock brokerage company instead. To provide this service, the majority of Indian stock brokers who allow you to invest in US equities typically collaborate with a US stockbroker. You would also be required to pay certain fees for a US stock broking account, just like you would for an Indian trading account. This is something you should also take into consideration when you buy US stocks because these fees can reduce your earnings. These fees include Annual Maintenance Costs, brokerage charges, bank charges, transaction charges, and more. Invest in the US stocks with EduFund  Download the EduFund app and create an account to start investing in US stocks. With zero charges and no hassle account opening process from the comfort of your home, you can start investing in FAANG stocks in your portfolio to geographically diversify your portfolio!! Thus, investing in US firms and equities may give investors access to the worldwide market, credibility, and an opportunity to increase their wealth. Consult an expert advisor to get the right plan TALK TO AN EXPERT
    5 top investments for risk-averse investors

    5 top investments for risk-averse investors

    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
    5 types of mutual funds

    5 types of mutual funds

    Investing in mutual funds for your child’s education is always advisable. First of all, it is a less stressful option than investing in direct equity stocks because that requires you to have in-depth knowledge of market trends and fluctuations. Secondly, with mutual funds, there are a variety of schemes you can opt for depending on a range of factors. These factors could include the time period for which you can invest before liquidating, the amount of money you can invest, the amount you require to secure the education fund, the level of risk you can take, and so on.  When it comes to building an education fund, here are the top 5 types of mutual funds you can choose from. 1. Large-cap mutual funds The defining characteristic of large-cap equity funds is the fact that these funds invest in the top 100 Indian companies that have the highest market value. Large-cap mutual funds can bring in impressive returns if you remain invested for a long period. If you are a person who wants to avoid taking very high risks with your investments and has decided on investing early for your child’s education, this is the way to go. The average returns rate has historically beaten that of Fixed Deposits and similar investment alternatives. 2. Mid-cap mutual funds Mid-cap funds invest in Indian companies that come in the next best 250 in terms of market value. These funds are for you if you are ready to take on a higher level of risk. Justifiably, the return rates also tend to get higher. One way to satiate the risk appetite of mid-cap equity funds is to let them season for at least 7-10 years. If your child is in primary or middle school, investing in such a scheme will generate a wholesome amount of wealth by the time they are ready to pursue a college education.   3. Equity-linked saving schemes  Among the various perks of investing in mutual funds is the tax deduction benefit. Equity Linked Saving Schemes are devoted to enabling investors to save taxes, as the name also indicates.  The only catch here is that it has a compulsory lock-in period of at least 3 years. The aim here is to keep you invested longer to counter the risk level. If you can spare that amount of time, then ELSS is definitely a go-to. An added benefit is the historically high level of returns.   4. Low-risk options  There is this whole myth surrounding mutual funds that they only come with a high-risk factor. On the contrary, a debt fund is also a kind of mutual fund that comes with low risk, so much so that it remains undisturbed by market fluctuations.  Debt funds are still a better option than Fixed Deposits because they can generate a higher percentage of returns. So, if you are not in favor of taking high risks, debt funds are a go-to.  5. Hybrid mutual funds  If you are confused about your investment options or even hesitant about risking too much, the answer to your problems is a hybrid mutual fund. This kind of fund is a mixture of equity as well as debt.  Hybrid mutual funds bring in the best of both worlds. They tend to generate good returns at low risk. FAQs What are the different types of mutual funds? Large-cap mutual funds Mid-cap mutual funds Equity-linked saving schemes Low-risk options Hybrid mutual funds Which type of MF is best? The best type of mutual fund is the Hybrid mutual fund. Which MF gives highest return? Equity linked mutual funds are considered the mutual funds with the highest returns. Conclusion There will be miscellaneous financial goals you will be required to set if you are a family person. One among these might be to straighten up the roadmap to your child’s academic and career aspirations. The first step is calculating your expected expenses with the help of an education cost calculator. The calculator will help you draw your investment map to fulfill your child's aspirations. The earlier you invest, the more prepared you will be to make critical decisions as the moment arrives. DisclaimerMutual funds are subject to market risks. The previous performance of a fund is no guarantee of future success. Please reach out to an expert to know more about the schemes before investing.
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