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Investing in children's education? Which education plans to invest in?

Investing in children's education? Which education plans to invest in?

Given the rising cost of education, giving your children the best education possible should be your top priority as parents. By creating early child investing plans, you may prevent your children from having to give up their dreams due to a lack of resources. In this blog, we will discuss investing in children's education plans and where you should invest.  Where should you invest in your child's education plans? Parents work hard to provide for their children because they are everything to them. When it comes to paying for their school and securing their financial future, prudent investments must come first. Investing in your child is critical because of the surge in educational prices. The best investment opportunities for funding your children's education are listed below. 1. Public provident fund (PPF) Parents still favor Public provident funds even after the government decreased interest rates on provident fund accounts. Public provident fund deposits encourage discipline since you can only withdraw the corpus at the end of the 15-year maturity period. Because the principal, interest, and total maturity amount are all tax-free, you can develop your corpus for educational reasons. Because the government backs the Public provident funds, you may rest easy knowing that your money is safe. However, depending solely on PPFs might present a cash flow issue because their official interest rates have already been reduced. Create a portfolio with higher returns to avoid this. Choose a well-balanced investment plan for your child's future, including public provident funds and Unit Linked Insurance Plans (ULIPS). 2. Equity mutual funds Starting equity mutual fund investments when your child is still young, and you have at least 15 to 20 years left until retirement is a terrific option. You can withstand shocks like volatility and stock market collapses because of this. Equity investment is not for everyone since it requires specialized knowledge and the ability to stay up to date. The wiser choice is consequently to select equity mutual funds. These are run by experts who know how to pick the least risky stocks while still ensuring that your money increases over time. You might create a portfolio of equity mutual funds specifically for your child's education. \ You may do this when your child is 4 or 5 years old by opening a child-specific account and selecting Systematic Investment Plans (SIPs) in riskier products like equity mutual funds. Then, you may adopt a more cautious strategy when you and your child become older. 3. Investments in National Savings Certificate (NSC) The National Savings Certificate, or NSC, is the finest and most reliable way to save money aside for your child's education. National Savings Certificates with a maturity date of five years may be purchased and reinvested. At the current interest rate of 8.10%, one may acquire a certificate for as little as INR 100. Section 80C of the Income Tax Act allows for an IT refund on investments made up to INR 1 lakh annually. 4. Invest in debt funds Debt funds have less risk than equities mutual funds do. Lending money generates interest that is then invested in various bonds or deposits. Debt funds provide a consistent return on investment as a low-risk investment choice. Debt money can be utilized to cover the child's ongoing needs, such as school tuition, unexpected medical costs, etc. Debt fund investments are created for the short term and provide a 6-7% yearly return. Additionally, debt funds are adaptable and permit withdrawal anytime necessary. 5. Fixed deposits FDs are one kind of investment offered by banks and other financial institutions. After placing a deposit, you receive a fixed rate of interest for a defined period of time. Fixed deposits provide comprehensive capital protection and guaranteed returns when compared to mutual funds and stocks. When should you start investing in your children's education? Since there are several benefits to starting early, this is the greatest time to start investing. The more money you can eventually offer your children, the sooner you start investing. Since time is your greatest ally, even a small sum saved now will someday develop into a sizeable corpus. To maximize the profits that will be generated on whatever current investments you make, you should completely take advantage of compounding. It is smart to begin saving for your children as soon as possible.  By doing this, you may ensure that every financial aspect of their life is taken into account. But starting to save is never too late. Even if you begin saving when your children are still little (between 1 and 8 years old), you can save enough cash to sustain them as they become older and their expenses grow. You may prepare financially for increased education costs, unanticipated diseases, and unpleasant circumstances by putting money into children's investing plans. You should begin preparing for your child's future as soon as you can. The risks involved are spread out, and your assets have more time to grow as a result. Consult an expert advisor to get the right plan TALK TO AN EXPERT
List of best mid-cap mutual funds in 2023

List of best mid-cap mutual funds in 2023

A type of equity mutual fund, mid-cap funds invest in equity shares of companies with a market capitalization between Rs.5,000 crore and Rs.20,000 crore. These mid-cap companies are ranked from 101 to 250, depending on their market capitalization.  Features of Midcap mutual funds  Asset allocation: As per SEBI mandate, mid-cap funds are required to invest a minimum of 65% of total assets in mid-cap stocks.   Risk-return ratio: The mid-cap mutual funds have a moderate to high risk-return ratio. They are less risky than small-cap funds but have a higher risk than large-cap funds.   Taxability: Short-term Capital Gains Tax (STCG) applies 15% on capital gains if investors sell the units before 12 months. Long-term Capital Gains Tax (LTCG) is applicable if the holding period is more than one year. LTCG tax will be applicable at 10% on the gains exceeding Rupees One Lakh. Note that any amount up to Rupees One lakh in a financial year is exempted from this tax.   Tax Deducted at Source (TDS) - A dividend from mid-cap funds exceeding Rs.5000 in a financial year attracts 10% TDS.  Who are these funds suited for?  Mid-cap funds are associated with greater risk than large-cap equity-based funds. An economic slowdown can adversely affect these funds, which may take longer to recover. While the risk is high, the returns are also very high. Investors having the patience to sit on such an investment for more than 7-10 years should reap maximum benefits. Following is the list of factors you should consider before investing -   Investment goal: Not all investors will have the same financial goal. Therefore, one must understand one's investment objective before allocating capital to mid-cap funds.  Risk tolerance: Before investing in mid-cap mutual funds, you should evaluate the risk of these funds and your tolerance level. Investors should assess if they can withstand the scale of losses without any significant dent in their financial standing.  Expense ratio: Funds with a low expense ratio and a decent track record can help investors maximize their returns.  Past performance: Individuals can gauge a fund's future returns from its historical performance. It can help investors understand the fund's volatility, consistency, strengths and weaknesses, and investment style and help them compare it with other funds.   Team experience: A fund manager's decisions directly affect the scheme's returns. Investors need to examine a manager's skill set that aids in their research and analysis of best mid-cap mutual funds.   Major advantages of investing in the best midcap mutual funds  Following is a list of notable advantages of the best mid-cap mutual funds:  Significant growth potential: Mid-cap companies are probable future large-cap companies. This gives them excellent expansion potential. During this journey, they can deliver huge returns and outperform large-cap mutual funds.   Diversification: The distribution of investment among stocks of different mid-cap companies cushions them against economic shocks. As a result, the best mid-cap mutual funds bear less risk than a direct investment in such stocks.   Low investment amount: Individuals can start investing as low as Rs.500 in mid-cap equity-based funds. It allows investors to diversify their investments across different schemes to minimize concentrated risk.   Transparency: The Securities and Exchange Board of India (SEBI) closely mandates all mid-cap mutual funds to display their NAVs, expense ratios, and month-end portfolios on their websites. The apex body also closely regulates these data.  Investment mode: Individuals can invest in mid-cap mutual funds via lump sum or Systematic Investment Plan (SIP). The former allows investors to allocate all savings in one go. The minimum investment has to be Rs. 1,000. On the other hand, SIP allows individuals to invest at fixed intervals (monthly, quarterly, etc.). Here, the installment amount starts from Rs.500 in most cases.  Best Midcap Funds to invest in 2023  Funds Rating Expense Ratio (%) Assets (Cr) 5 Yr Ret (%) 10 Yr Ret (%) Fund Risk Grade Fund Return Grade Std Deviation Axis Midcap Fund 5 0.53 19,144 14.89 18.22 Low Above Average 19.92 Kotak Emerging Equity Fund 4 0.49 23,335 13.42 19.72 Below Average Above Average 24.54 Nippon India Growth Fund 4 1.04 13,597 12.62 16.26 Average Above Average 24.85 PGIM India Midcap Opportunities Fund 5 0.44 7,558 17.27 -- Low High 24.63 Quant Mid Cap Fund 5 0.63 1,330 19.43 16.49 Average High 23.25 Note: Assets as on December 31, 2022; Returns as on January 27th, 2023 Source: Valueresearch Online Axis Midcap Fund  About the fund  The fund invests in mid-sized companies that have the potential to become big. It looks for durable businesses with strong financial metrics. The mid-sized tends to offer higher growth potential than larger companies and thus comes with relatively higher risk than large-cap but lower risk than smaller-sized companies.  Who should invest?  Investors looking for capital appreciation over the long term are ok to remain invested for a long-term period of 5-7 years.  Kotak Emerging Equity Fund  About the fund  The fund operates with the objective of generating long-term capital appreciation from a portfolio of equity and equity-related securities by investing predominantly in midcap companies of different sectors. These companies are either at their nascent or developing stage and are under-researched. Although relatively volatile in the short run, midcap companies have the potential to deliver higher growth in the long term.  Who should invest?  Investors looking for capital appreciation over the long term are ok to remain invested for a long-term period of 5-7 years.  Nippon India Growth Fund  About the fund  The fund invests with the objective to generate capital appreciation & provide long-term growth opportunities. The fund invests in a portfolio of Mid Cap companies across sectors.  Who should invest?  Investors looking for capital appreciation over the long term and are ok to remain invested for a long-term period of 5-7 years.  PGIM India Midcap Opportunities Fund  About the fund  The fund invests with the objective to generate capital appreciation & provide long-term growth opportunities. The fund invests in a portfolio of Mid Cap companies across sectors.  Who should invest?  Investors looking for capital appreciation over the long term are ok to remain invested for a long-term period of 5-7 years.  Quant Mid Cap Fund  About the fund  The fund invests with the objective to generate capital appreciation & provide long-term growth opportunities. The fund invests in a portfolio of Mid Cap companies across sectors.  Who should invest?  Investors looking for capital appreciation over the long term and are ok to remain invested for a long-term period of 5-7 years.  These are some of the best mid-cap funds to consider for your next investment. Need help choosing the right funds for your financial goals? Connect with our experts today and get help curating your investment plan!  Consult an expert advisor to get the right plan TALK TO AN EXPERT
List of ICICI Prudential mutual funds in India 2023

List of ICICI Prudential mutual funds in India 2023

Set up in 1993 with ICICI Bank and Prudential Plc as partners, ICICI Prudential Mutual Fund is one of India's largest Asset Management Companies. It is one of the oldest and most profitable Mutual Funds. Most of AMC’s offerings are rated as "AAA mfs", indicating high confidence and reliability.  ICICI Prudential Mutual Fund is headquartered in Mumbai and provides a wide array of funds designed to fit every socioeconomic bracket. As of 31 March 2022, it manages assets worth over Rs. 4.6 Lakh Crore. Funds Category Riskometer Rating Launch AUM  (Rs Cr) Expense Ratio (%) 1Y Return (%) ICICI Prudential Corporate Bond Fund Corporate Bond Low to Moderate 4 2013-01-01 16440 0.30 5.40 ICICI Prudential All Seasons Bond Fund Dynamic Bond Moderate 5 2013-01-01 6264 0.62 6.19 ICICI Prudential Gilt Fund Gilt Low to Moderate 5 2013-01-01 2601 0.56 6.01 ICICI Prudential Savings Fund Low Duration Low to Moderate 2 2013-01-01 20658 0.40 4.72 ICICI Prudential Liquid Fund Liquid Moderate 2 2013-01-01 40973 0.20 5.08 ICICI Prudential Long-Term Bond Fund Long Duration Moderate -- 2013-01-01 588 1.48 3.98 ICICI Prudential Medium Term Bond Fund Medium Duration Moderately High 4 2013-01-01 6255 0.77 5.54 ICICI Prudential Long Term Equity Fund (Tax Saving) ELSS Very High 4 2013-01-01 10241 1.18 1.72 ICICI Prudential Focused Equity Fund Flexi Cap Very High 4 2013-01-01 3956 0.59 6.60 ICICI Prudential Technology Fund Sectoral Very High -- 2013-01-01 8794 0.89 -9.82 ICICI Prudential Bluechip Fund Large Cap Very High 4 2013-01-01 35049 1.07 5.27 ICICI Prudential Nifty 50 Index Fund Large Cap Very High 3 2013-01-01 3927 0.17 3.90 ICICI Prudential Midcap Fund Mid Cap Very High 3 2013-01-01 3666 1.16 4.83 ICICI Prudential Smallcap Fund Small Cap Very High 4 2013-01-01 4599 0.81 7.04 ICICI Prudential Value Discovery Fund Value Very High 4 2013-01-01 27515 1.22 11.95 ICICI Prudential Equity & Debt Fund Aggressive Hybrid Very High 5 2013-01-01 21282 1.20 8.56 ICICI Prudential Regular Savings Fund Conservative Hybrid Moderately High 5 2013-01-01 3291 0.99 5.28 ICICI Prudential Balanced Advantage Fund Dynamic Asset Allocation Moderately High 4 2013-01-01 44634 0.91 7.50 ICICI Prudential Multi-Asset Fund Multi-Asset Allocation Very High 4 2013-01-01 15770 1.15 13.34  1. ICICI Prudential Corporate Bond Fund  About the Fund  The fund invests in quality corporate bonds rated AA+ or above in order to achieve the objective of regular income and short-term savings.  Who should invest?  Investors who have moderate experience in the debt market understands that corporate bond comes with a risk.  2. ICICI Prudential All Seasons Bond Fund  About the Fund  The fund invests in bonds and money market instruments of different ratings and maturity with an aim to generate income while maintaining the optimum balance of yield, safety, and liquidity.   Who should invest?  An investor who recognizes investing in longer-duration debt securities could generate higher returns but comes with higher interest rate risk.  3. ICICI Prudential Gilt Fund  About the Fund  The fund seeks to generate income primarily through investment in Gilts of various maturities.  Who should invest?  Investors looking to invest in government securities across maturity.  4. ICICI Prudential Savings Fund  About the Fund  The fund seeks to generate income through investments in a range of debt and money market instruments while maintaining the optimum balance of yield, safety, and liquidity.  Who should invest?  Investors with a low tolerance for risk and looking to park money as a short-term saving may need to withdraw anytime.  5. ICICI Prudential Liquid Fund  About the Fund  The fund invests in quality corporate bonds & money market instruments with low to medium duration. The securities include AA+ rated ensuring high safety and liquidity.  Who should invest?  Investors who are new to the debt market are looking for stability in growth, the safety of funds, and high accessibility.  6. ICICI Prudential Long-Term Bond Fund  About the Fund  The fund invests to generate income through investments in a range of debt and money market instruments while maintaining the optimum balance of yield, safety, and liquidity.  Who should invest?  Investors looking to take exposure in debt funds and remain invested for the long term with the objective of wealth creation by capital protection.  7. ICICI Prudential Medium Term Bond Fund  About the Fund  The fund invests in high-quality debt securities, primarily AAA-rated corporate bonds & sovereign (government) bonds. The instruments primarily have a 1–3-year duration.  Who should invest?  Investors with a very low tolerance for risk and looking to park money for a very short period of time & may need to withdraw suddenly.  8. ICICI Prudential Long Term Equity Fund (Tax Saving)  About the Fund  The fund invests in equity and equity-related securities across sectors and market capitalization. The fund provides tax deductions up to Rs 1.5 lakh annually under Sec 80C of the Income Tax Act 1961.  Who should invest?  An investor with a relatively high-risk appetite and looking to get income tax benefits.  9. ICICI Prudential Focused Equity Fund  About the Fund  The fund invests over 95% in domestic equities of which more than 65% is in large-cap names with the remainder in mid and small-cap segments. The fund has a concentrated portfolio of not more than 30 stocks.  Who should invest?  Investors who have advanced knowledge of macro trends and prefer to take selective bets for higher returns compared to other Equity funds  10. ICICI Prudential Technology Fund  About the Fund  The fund invests in equity and equity-related securities of the Information Technology sector and across market capitalization (company size).  Who should invest?  An investor who is looking to take sectoral bets and are looking to add companies of the IT sector to their portfolio. The investor should have the patience & mental resilience to remain invested for a decade or more.  11. ICICI Prudential Bluechip Fund  About the Fund  The fund invests in equity and equity-related securities of large companies which are undervalued and tend to offer healthy growth over the long term.  Who should invest?  An investor who is relatively new to the equity market and is happy with the market returns. The investor should have the patience & mental resilience to remain invested for a decade or more.  12. ICICI Prudential Nifty 50 Index Fund  About the Fund  The fund is an index fund that replicates the Nifty 50 TR Index by investing in the same stocks and the same proportion. The portfolio is rebalanced semi-annually to adjust for any stock additions or subtractions to the Index.  Who should invest?  An investor who is relatively new to the equity market and is happy with the market returns. The investor should have the patience & mental resilience to remain invested for a decade or more.  13. ICICI Prudential Midcap Fund  About the Fund  The fund invests in mid-sized companies that have the potential to become really big. It looks for durable businesses with strong financial metrics. The mid-sized tends to offer higher growth potential than larger companies and thus comes with relatively higher risk than large-cap but lower risk than smaller-sized companies.  Who should invest?  An investor with a well-set core portfolio & looking to tactically allocate 10-15% of your overall portfolio to very high-risk opportunities. The investors should have patience & mental resilience to remain invested for a decade or more.  14. ICICI Prudential Smallcap Fund  About the Fund  The fund invests in some of the smallest, fastest growing & innovative Indian companies. It considers companies with strong business models in high-growth sectors and efficient management teams focused on utilizing resources wisely to unlock high-growth potential.  Who should invest?  An investor with a well-set core portfolio & looking to tactically allocate 10-15% of your overall portfolio to very high-risk opportunities. The investors should have patience & mental resilience to remain invested for a decade or more.  15. ICICI Prudential Value Discovery Fund  About the Fund  The fund seeks to generate returns through a combination of dividend income and capital appreciation by investing primarily in a well-diversified portfolio of a value stock.  Who should invest?  An investor who is relatively new to the equity market and is happy with the market returns. The investor should have the patience & mental resilience to remain invested for a decade or more.  16. ICICI Prudential Equity & Debt Fund  About the Fund  The fund is an open-ended hybrid scheme investing predominantly in equity and equity-related instruments. The fund’s aim is to generate long-term capital appreciation and current income from a portfolio that is invested in equity and equity-related securities as well as in fixed-income securities.  Who should invest?  Suitable for investors who are seeking long-term wealth creation  17. ICICI Prudential Regular Savings Fund  About the Fund  The fund invests in a mix of debt & equity instruments. The debt component accounts for 75% of allocation and aims to reduce the impact of market fluctuations. The balance is invested in equity which tends to provide higher returns. The debt portion is generally invested in highly rated debt instruments with different maturity profiles and the equity portion is well diversified across sectors and sizes.  Who should invest  Investors looking to generate a steady potential income & are not chasing high returns.  18. ICICI Prudential Balanced Advantage Fund  About the Fund  The fund is an open-ended dynamic asset allocation fund and aims to provide capital appreciation/income by investing in equity and equity-related instruments including derivatives and debt and money market instruments.   The fund responds to changing market conditions & adjusts the equity-debt balance dynamically. As the market starts rising & stock valuations turn frothy, it reduces equity exposure & when markets fall, it looks to increase equity exposure  Who should invest?  Suitable for investors who are seeking long-term capital appreciation and or regular income. The fund is ideal for investors looking to generate a steady potential income & are okay not chasing high returns.  19. ICICI Prudential Multi-Asset Fund  About the Fund  The fund invests in Equity, Debt and Exchange Traded Commodity Derivatives/units of Gold ETFs/units of REITs & InvITs/Preference shares.  The fund seeks to generate capital appreciation for investors by investing predominantly in equity and equity-related instruments and income by investing across other asset classes.  Who should invest?  Suitable for investors who are seeking long-term wealth creation.  Consult an expert advisor to get the right plan TALK TO AN EXPERT
Saving strategies for parents on a budget

Saving strategies for parents on a budget

Parents often need a well-defined and well-thought plan for their child's future. Everything should be well planned, from education to marriage and risk coverage. While every parent starts worrying early on, it is a good sign, worrying alone will not help. So, what will help? Acting on it will help.   Following are some rules that will help you secure your child's future considering your budget, risk, and other factors you want to secure for your child   1. Use the power of compounding in equity to reach your goal Should you wish you generate a corpus for your child's education 15 years from now, you should not rely on FD but switch to equity-dominated mutual funds which offer higher growth rates in the range of 12-15% (conservative rate). The table below shows how you can generate a corpus of Rs 1 crore by investing in different instruments.  Product Debt Fund Balanced Funds Equity Funds CAGR Yield (%) 8% 12% 15% Monthly SIP Rs 29,431 Rs 21,011 Rs 16,224  The key here is to focus on equities and adopt a systematic investment planning (SIP) approach.  2. Start early The most significant rule is to start as early as possible. In the ideal case, an individual should start saving right after the child is born so that time can work in their favor. See below how starting early helps you reach a Rs 1 crore corpus:  SIP Tenure 18 years 15 years 12 years 8 years Yield 15% 15% 15% 15% SIP required Rs 10,179 Rs 16,224 Rs 26,617 Rs 56,237  As we can see from the table above, the earlier you start better you earn, and the key is to make time work for investment.  3. Add insurance to the child's plan The SIP idea is good if you start early and invest through equity. By doing this, you are likely to accumulate enough corpus, but given life is unpredictable and you do not know what may happen tomorrow, it is good to add an insurance plan to your child's portfolio so that their education plan is not impacted.   4. Factor Inflation while planning National Sample Survey Office conducted research and stated that the cost of any professional degree/course nearly doubles in six years. An individual while planning should also take into account this inflation rate while planning for children's corpus. We believe the high inflation rate should never daunt an individual if time is on your side, as a higher time horizon provides a compounding benefit.  5. Protect goals When sacrosanct goals such as children's education, children's marriage, etc., are concerned, it makes sense to ensure you have these goals covered separately in addition to the term plan you may choose to purchase for your child. Ideally, it would be best if you took up a different term plan that safeguards essential goals in your child's life, such as education.  6. Opt for a premium waiver plan In the event of the unfortunate demise of the parent or guardian of the child, insurance providers tend to waive the premium. Thus, it makes sense to opt for a premium waiver plan while planning any insurance for children.   7. Save Aggressively If you start an early investment for your child, it makes sense to invest in high-risk, high-return funds that have the potential to outperform other asset classes handsomely, albeit at the cost of higher risk. We believe investors should avoid fixed-return savings schemes if their investment horizon exceeds ten years. The thumb rule says that for Child Education - Small & Midcap Funds Sahi Hai!   8. Always have a partial withdrawal plan in your portfolio An emergency can knock door anytime. It is better individuals are well prepared for the same. There should be a provision for partial withdrawal from the child plan, or some funds should be liquid enough for such situations. It helps to avoid any unwanted financial disturbance due to an emergency.  9. Always appoint a nominee Death comes uninvited and is the inevitable truth of life. Hence it is essential to choose a nominee on whom you can rely. This person shall get the claim amount until your child becomes an adult.  10. Review the plan at regular intervals Investors tend to start a plan and leave it on auto mode. However, you must track your investments and review the performance of your investments at regular intervals. Some of the questions you can ask while reviewing investment include – has education cost gone up? Is your investment accumulation on track to achieve the goal, etc.?  It is undoubtedly true that all parents wish the best for their children. Typically, as soon as a baby is born, they start planning for their future. At the center of these investments lies the thought of providing world-class education and benefits to children. Should you have any queries concerning planning for your children, feel free to write to us, and we shall be glad to assist.  Consult an expert advisor to get the right plan TALK TO AN EXPERT
Budgeting myths to bust

Budgeting myths to bust

There is a strong need for budgeting myths to bust because these prevent individuals from making viable decisions about their hard-earned money. Misconceptions are obstacles that stop you from creating realistic budgeting plans.  Once the myths are busted, it becomes easy to take the next step and create a plan to help reach goals and achieve financial stability. 10 common budgeting myths 1. Budgeting is time-consuming The first thought that strikes you whenever you think of making a budgeting plan is that it is time-consuming, and you only have a little time to waste.   Let go of this misconception. Instead, consider it a golden opportunity to take a fresh look at your expenses and savings. The initial framework of the budgeting plan will take time, no doubt, but adjusting it based on your priorities and plugging in the required numbers will be considerably fast and easy.  2. It is a difficult process Another budgeting myth that needs to bust is that it is a complex process. Everything looks complicated initially, but it is comparatively smooth sailing once you set your mind to the task and find the right tools.   3. The process is boring How can you consider budgeting boring when it is the key to keeping you solvent and debt-free? Bust this budgeting myth and be proactive in creating a financial plan that will push you to arrange your finances systematically. 4. I can do a budget in my head There is no need to make a proper plan as I can do it easily in my head - this is one of the most common budgeting myths to bust. Only brilliant minds can do so, and even they will fumble at one time or another. Hence, take the standard route and create a plan for concrete decision-making.   5. I keep track; hence no need for budgeting Tracking your expenses is not budgeting because you are only looking at one aspect, “expenses,” and ignoring the all-important one, “savings.” The budgeting plan is about the upcoming month and how you will divide your income for future necessities, wants, and savings. The budgeting process will seem much more manageable if you keep track of your spending. 6. The budgeting process is very restrictive Budgeting will be as restrictive as you want it to be. There is no need to make the budget restrictive because you can easily include things you enjoy, like a Saturday movie or a take-out once a week, or any impromptu expense by setting aside a sum within your budgeting plan.  7. No need for a budget as there are so many unexpected expenses When there are too many unexpected expenses, there is a serious need for a budgeting plan. Once an individual starts making a budgeting plan, he will realize that unexpected expenses are part of life and need to be handled effectively within a limited budget like other expenses. Set aside an amount monthly if these are regular features and cut down on your wants to make up for it.  8. Budgeting means no more spending on me-time Not budgeting stops you from spending on me-time as it gives you a set amount that you can use wisely and regularly. Needs are essential, but so are wants that must be taken care of to break the monotony of daily routine. Hence budgets often set aside a sum that individuals can use for recreational purposes or shopping or weekend treats as they want.  9. It is impossible to stick to a budget It is a myth that you cannot live on a budget. If it were a fact, then experts would never have recommended a budgeting plan as a necessity. If you make a restrictive budget or plan for the sake of it without putting in your full efforts, then the plan will never be adequate. Hence make reasonable plans with careful considerations to make a success of it. 10. I am quite well-off, so there's no need for a budgeting plan The misconception that I have enough money, so there is no need to make a budgeting plan, needs to be busted. When you have too much money, the need for careful planning and handling of your spending and savings becomes greater. It does not matter whether you are earning in thousands or crores; a budgeting plan is necessary as it directs your actions.  Conclusion Learning the truth will set you free, as several budgeting myths will bust automatically. A realistic look at your earnings, spending, and savings will lead to better managing your finances and creating achievable goals.  Take the help of budgeting apps or financial advisors like the experts at Edufund to create a personalized budget Consult an expert advisor to get the right plan TALK TO AN EXPERT
List of DSP Mutual funds in India 2023

List of DSP Mutual funds in India 2023

DSP Mutual Fund is one of India's leading AMCs with over 20 years of investment excellence. Since its inception, this fund house has grown significantly to become one of India's premier Asset Management Companies.  The fund house offers various mutual fund schemes across equity, debt, and hybrid categories, along with the international fund of funds, exchange-traded funds, and close-ended funds. The commitment of the fund house is to cater to its clients in every possible way by putting their interests first and securing their wealth. History of DSP  DSP Group is a 152-year-old financial company. The firm started stockbroking businesses back in the 1860s. One of the family members that founded this group was behind the foundation of the Bombay Stock Exchange (BSE.)   Mr. Hemendra Kothari currently leads the DSP Group. He started his career with D.S. Purbhoodas & Co. before establishing DSP Financial Consultants, a financial services provider, in 1975. As of 31 March 2022, DSP Mutual Fund has 372 schemes and an AuM of Rs 1,07,911.34 Crore.   List of DSP Funds in India  Funds Category Launch Riskometer 1 Yr Ret (%) Expense Ratio (%) AUM (Cr) DSP Corporate Bond Fund Corporate Bond 2018-09-10 Moderate 2.63 0.25 2647 DSP Credit Risk Fund Credit Risk 2013-01-01 Moderately High 10.49 0.38 234 DSP Strategic Bond Fund Dynamic Bond 2013-01-01 Low to Moderate 2.66 0.48 497 DSP Low Duration Fund Low Duration 2015-03-10 Low to Moderate 4.64 0.32 3464 DSP Liquidity Fund Liquid 2013-01-01 Low to Moderate 5.12 0.15 11186 DSP Bond Fund Medium Duration 2013-01-01 Moderate 3.84 0.39 334 DSP Overnight Fund Overnight 2019-01-09 Low 4.90 0.07 3379 DSP Short Term Fund Short Duration 2013-01-01 Low to Moderate 3.93 0.30 2735 DSP Tax Saver Fund ELSS 2013-01-01 Very High 3.83 0.80 10445 DSP Flexi Cap Fund Flexicap 2013-01-01 Very High -2.92 0.81 7910 DSP Equity Opportunities Fund Large and Mid-cap 2013-01-01 Very High 4.50 0.95 7295 DSP Nifty 50 Equal Weight Index Fund Large cap 2017-10-23 Very High 6.68 0.40 496 DSP Nifty 50 Index Fund Large cap 2019-02-21 Very High 4.61 0.20 257 DSP Midcap Fund Mid cap 2013-01-01 Very High -4.56 0.75 13699 DSP Small Cap Fund Small Cap 2013-01-01 Very High 0.63 0.94 9161 DSP Quant Fund Thematic 2019-06-10 Very High -3.28 0.56 1320 DSP Equity & Bond Fund Aggressive Hybrid 2013-01-01 Very High -1.34 0.83 7529 DSP Regular Savings Fund Conservative Hybrid 2013-01-02 Moderate 3.84 0.50 201 DSP Dynamic Asset Allocation Fund Dynamic Asset Allocation 2014-02-06 Moderately High 1.58 0.67 4097 Note - Returns as on 25-Jan-2023; All the funds are direct plan, growth option. Not all funds are covered above and only a selected few are covered across categories. Source: Value Research Online  1. DSP Corporate Bond Fund  What?  The fund invests in high-quality corporate debt securities rated AAA with a 'roll down' strategy. Roll down means - fund maturity reduces with time.  Who should invest?  New investor in the debt market looking for stability & consistency of returns.  Don't want to take high credit or interest rate risk.  Investors looking to reduce the overall risk level of the portfolio.  2. DSP Credit Risk Fund  What?  It is one of the DSP's oldest debt funds with 18 years+ track record  Invests in low-rated debt securities with min. 65% in AA & below-rated securities.  Who should invest?  Investors with a well-set core portfolio prefer the stability of the debt market but are okay to expose themselves to credit risk.  Investors looking to remain invested for at least 3-5 years.  3. DSP Strategic Bond Fund  What?  The fund is one of DSP's oldest debt funds with a 14+ years track record. The fund invests in high-quality government & corporate debt securities (AAA rated)  The fund is managed actively and is highly liquid  Who should invest?  An investor who recognizes investing in longer-duration debt securities could generate higher returns but comes with higher interest rate risk.  4. DSP Low Duration Fund  What?  The fund invests in money market and debt securities with a portfolio duration of 6-12 months. The securities are sovereign (government) bonds, A1+ rated money market securities, and high-quality AA & above rated debt securities.  Who should invest?  Investors with short-term horizons and wanting high safety of funds and high liquidity.  5. DSP Liquidity Fund  What?  The Fund is DSP’s oldest debt fund with a 24+ year track record. It invests in quality corporate bonds & money market instruments with a portfolio duration of 3 - 4 years. The securities include AA+ rated & above corporate bonds to minimize credit risk and duration risk.  The portfolio uses a blended approach of active and passive investment. While 1/3rd of the portfolio utilizes a roll-down strategy (passively managed) and 2/3rd of the portfolio is actively managed.  Who should invest?  Investors who are new to the debt market are looking for stability in growth, the safety of funds, and high accessibility.  6. DSP Bond Fund  What?  The fund is one of DSP's oldest debt funds with 24+ years of track record. It invests in quality corporate bonds & money market instruments with a portfolio duration of 3 - 4 years.  The portfolio uses a blended approach of active and passive investment. While 1/3rd of the portfolio utilizes a roll-down strategy (passively managed) and 2/3rd of the portfolio is actively managed.  Who should invest?  Investors who are new to the debt market are not looking for high-risk.  7. DSP Overnight Fund  What?  The fund invests in high-quality debt & money market instruments. The instruments primarily have a 1-day maturity.  Who should invest?  Investors looking to park money for a very short period of time may need to withdraw at any time  8. DSP Short-Term Fund  What?  The fund is one of the oldest debt funds with a 19+ year track record. The fund invests in high-quality debt securities, primarily AAA-rated corporate bonds & sovereign (government) bonds & can invest up to 20% in AA+-rated instruments. The instruments primarily have a 1-3 year duration.  Who should invest?  Investors with a very low tolerance for risk and looking to park money for a very short period of time & may need to withdraw suddenly.  9. DSP Tax Saver Fund  What?  The fund invests in equity and equity-related securities across sectors and market capitalization. The fund provides tax deductions up to Rs 1.5 lakh annually under Sec 80C of the Income Tax Act 1961.  Who should invest?  An investor with a relatively high-risk appetite and looking to get an income tax benefit.  10. DSP Flexi Cap Fund  What?  The fund is DSP's oldest equity fund with a 24+ year track record. The fund invests flexibly across carefully selected companies of different sizes- large, mid, or small.  The fund tends to own quality businesses with strong business models, and growth potential & led by reliable management.  Who should invest?  Investors who are relatively new to the equity market and have the patience & mental resilience to remain invested for a decade or more.  11. DSP Equity Opportunities Fund  What?  The fund is among DSP's oldest equity funds with a 21-year+ track record and invests in a mix of established (large-sized) as well as emerging (mid-sized) companies. The fund tends to invest ~70% in companies with attractive valuations and ~30% or less in growth stocks.  Who should invest?  Investors looking to build wealth over the long term and has the patience & mental resilience to remain invested for a decade or more.  12. DSP Nifty 50 Equal Weight Index Fund  What?  The fund is an index fund that replicates the Nifty 50 Equal Weight TR Index - same stocks, same weights. The fund allows you to invest in India's top 50 companies, each with the same weight in the portfolio.  The portfolio is re-aligned quarterly so every stock's weight is brought back to 2%. The portfolio is rebalanced semi-annually to adjust for any stock additions or subtractions to the Index.  Who should invest?  An investor who is relatively new to the equity market and is happy with the market returns. The investor should have the patience & mental resilience to remain invested for a decade or more.  13. DSP Nifty 50 Index Fund  What?  The fund is an index fund that replicates the Nifty 50 TR Index by investing in the same stocks and the same proportion. The portfolio is rebalanced semi-annually to adjust for any stock additions or subtractions to the Index.   Who should invest?  An investor who is relatively new to the equity market and is happy with the market returns. The investor should have the patience & mental resilience to remain invested for a decade or more.  14. DSP Midcap Fund  What?  The fund invests in mid-sized companies that have the potential to become really big. It looks for durable businesses with strong financial metrics. The mid-sized tends to offer higher growth potential than larger companies and thus comes with relatively higher risk than large-cap but lower risk than smaller-sized companies.  Who should invest?  An investor with a well-set core portfolio & looking to tactically allocate 10-15% of your overall portfolio to very high-risk opportunities. The investors should have patience & mental resilience to remain invested for a decade or more.  15. DSP Small Cap Fund  What?  The fund invests in some of the smallest, fastest growing & innovative Indian companies. It considers companies with strong business models in high-growth sectors and efficient management teams focused on utilizing resources wisely to unlock high-growth potential.  Who should invest?  An investor with a well-set core portfolio & looking to tactically allocate 10-15% of your overall portfolio to very high-risk opportunities. The investors should have patience & mental resilience to remain invested for a decade or more.  16. DSP Quant Fund  What?  The fund is a pure rule-based fund and forms its portfolio through a carefully constructed framework & a robust quantitative model. The fund considers the top 200 companies in India, eliminates those with value-diminishing components, selects those with durable sources of potential outperformance, and then optimizes weights across various companies.  Who should invest?  Investors who are relatively new to the equity market, and have the patience & mental resilience to remain invested for a decade or more.  17. DSP Equity & Bond Fund  What?  The fund is amongst DSP's oldest hybrid funds with a 22+ year track record and invests in a mix of equity & debt instruments, trying to deliver equity-like returns with a slightly lower risk profile.  The larger equity component (65%+) aims to help build wealth, while the debt allocation (<35%) aims to reduce the impact of market fluctuations. The equity portion is well diversified across multiple sectors & different-sized companies while the debt portion is mostly in highly rated debt instruments with shorter-term maturity profiles.  Who should invest?  Investors looking to invest in the equity markets but don't know how to begin. These investors should have the patience & mental resilience to remain invested for a decade or more.  18. DSP regular savings fund  What?  The fund is one of the oldest hybrid funds with a 17+ year track record. The fund invests in a mix of debt & equity instruments. The larger debt component (75%+) aims to lower the impact of market fluctuations, while the equity allocation (<25%) aims to boost returns. The debt portion is mostly in highly rated debt instruments with shorter-term maturity profiles while the equity portion is well-diversified across multiple sectors & different-sized companies.  Who should invest?  Investors looking to generate a steady potential income & are okay not chasing high returns. The investors are conservative and don't like to take too much risk.  19. DSP Dynamic Asset Allocation Fund  What?  The Balanced Advantage Fund invests in a mix of equity & debt instruments and follows smart rules-based. The fund responds to changing market conditions & adjusts the equity-debt balance dynamically. As the market starts rising & stock valuations turn frothy, it reduces equity exposure & when markets fall, it looks to increase equity exposure to follow the basic investment principle of 'buy low, sell high'.  Who should invest?  Investors looking to generate a steady potential income & are okay not chasing high returns. The investors are conservative and don't like to take too much risk.  Consult an expert advisor to get the right plan TALK TO AN EXPERT
Aditya Birla Sun Life Frontline Equity Fund

Aditya Birla Sun Life Frontline Equity Fund

ABSLAMC is primarily the investment manager of Aditya Birla Sun Life Mutual Fund, a registered trust under the Indian Trusts Act, of 1882. ABSLAMC is one of the leading asset managers in India, servicing around 8.1 million investor folios with a pan India presence across 280 plus locations and a total AUM of over Rs.2,926 billion.  Let us talk about the flagship product – Aditya Birla Sun Life Frontline Equity Fund  About the Aditya Birla Sun Life Frontline Equity Fund  Investment objective The objective of the scheme is long-term growth of capital, through a portfolio with a target allocation of 100% equity by aiming at being as diversified across various industries and/ or sectors as its chosen benchmark index, NIFTY 100 TRI.  Portfolio composition  The portfolio holds the major exposure in Giant-cap stocks at 66%. The major sectoral exposure is to Finance which is at around 25%. The top 5 sectors hold around 67% of the overall portfolio. Note: The pie chart on the left shows the market cap composition of the equity portfolio and the bar graph on the left shows the sectoral composition of the overall equity portfolio. Top 5 holdings Aditya Birla Sun Life Frontline Equity Fund Name Sector Weightage % ICICI Bank Ltd. Financial Services 9.40 Infosys Ltd. Information Technology 7.55 HDFC Bank Ltd. Financial Services 7.38 Reliance Industries Conglomerate 5.58 Axis Bank Ltd. Financial Services 4.45 Note: Data as of 31st Dec 2022. Source: Morningstar  Performance over 21 years  If you would have invested Rs. 10000 at the inception of the fund, it would be now valued at Rs. 3.52 lakhs Note: Performance of the fund since launch; Inception date - 30th Aug 2002. Source: Morningstar  The fund has given consistent returns and has outperformed the benchmark over the period of 21 years by generating a CAGR (Compounded Annual Growth Rate) of 19.12%.  Fund manager  Mahesh Patil: Mr. Patil is B.E (Electrical), MMS in Finance, and Chartered Financial Accountant from ICFAI Hyderabad. Prior to joining Aditya Birla Sun Life AMC, he worked with Reliance Infocom Ltd., Motilal Oswal Securities, and Parag Parikh Financial Advisory Services Ltd.  Who should invest?  Investors who are seeking: -  To generate long-term capital appreciation along with steady portfolio growth.  Investments in a mix of large-cap and mid-cap stocks.  Why Invest?  The fund offers exposure to mid-cap for good opportunities for wealth creation.  At the same time, it offers large caps as diversification and steady portfolio growth.  Horizon  One should look at investing for a minimum of 5 years or more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  This is the oldest fund with a proven track record of 21 years and has delivered 19.12% CAGR consistently which is better than most equity funds. Thus, it is best for investors looking for a diversified portfolio with exposure to large and mid-cap for wealth creation as well as steady growth.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 
Lumpsum investment for child education

Lumpsum investment for child education

Where to invest the lump sum of money that parents have set aside for their child's education is one of the most frequent concerns. Every time a sizable quantity of money is acquired as a bonus, as the sale of real estate, as an inheritance, as a present from grandparents, etc., parents start looking for good investment opportunities. So in this blog, we have discussed how to invest a lump sum investment for your child's education. What is a lump sum investment? The term "lump amount" often refers to a significant sum of money. Financially speaking, investing a big quantity of money all at once as opposed to splitting it up into several payments. What are lump sum investments? Investments made in lump sums include investing all of the investor's funds. For instance, if someone wants to invest all of the money in his possession in mutual funds or other types of investment vehicles, it is referred to be a lump sum investment. A lump sum payout is comparable to that, but it is not an investment but a payment made to others. As the name implies, no installments or partial payments are made. Best ways to invest a lump sum for your child’s education Following are the best ways to invest a lump sum amount for your child's education: 1. Dynamic equity mutual funds They are often referred to as balanced advantage funds or dynamic asset allocation funds. They make both loan and equity investments. The fund manager maintains a balanced asset allocation. In many cases, the exposure to securities ranges from 30% to 80% or even more. Most dynamic equity funds make sure that their equity and arbitrage positions remain over 65%. They are, therefore, qualified for the tax benefits offered to equity mutual funds. Dynamic equity mutual funds are less risky and volatile than stock mutual funds. However, they also provide lower returns than they do. 2. Equity-oriented hybrid mutual funds They are also referred to as aggressive hybrid mutual funds or balanced mutual funds. They devote between 65% and 80% of their resources to ventures involving equity. The remainder is made up of debt instruments. Due to their status as equity mutual funds, they are eligible for tax advantages. Balanced mutual funds have higher volatility and less security than dynamic equities funds. Over time, they offer greater returns than they do. 3. Equity multi-cap mutual funds They are also known as "diversified equity mutual funds." They devote a minimum of 65% of their assets to stock investments and instruments linked to equities. Equity investments are made in large-, mid-, and small-cap enterprises via multi-cap funds. Over time, multi-cap funds outperform hybrid mutual funds in terms of returns. But there is also increased risk and turbulence. 4. Debt mutual funds Fixed-income securities are an investment in debt mutual funds. The ones that give the most safety include liquid funds, ultra-short funds, low-duration funds, and short-duration funds. These funds make investments in highly rated short-term securities. They are safer than funds that take duration calls or invest in bonds with low credit ratings. 5. Public Provident Fund (PPF) PPF investments may be included in your portfolio's debt allocation. If you're seeking a safe investment with tax-free returns, this is a fantastic choice. PPF has a 15-year lock-in period, making it less liquid than a hybrid mutual fund. The rewards on PPF investments are less alluring than those on hybrid mutual funds. PPF, however, is far less risky and volatile than hybrid mutual funds. Additionally, it offers tax-free returns. Factors to consider before investing in lump sum investment The following are the top factors to consider before investing in lumpsum investment for your child's education:  1. Investing a large sum of money If you decide to invest in mutual funds in lump amounts, you may put a lot of money into them. As a result, the investment's value increases as the market grows. 2. Mutual funds are the best option for long-term investments Investing in mutual funds will be a better choice if you are able to save a lump sum of money for a longer length of time, such as five years or more; moreover, the rewards will be significant if you are able to preserve it for ten years. 3. Market predictions The best time to invest in mutual funds in a lump sum is when the market is at its lowest point but showing signs of improvement and future growth; however, lump-sum investments in mutual funds should be avoided if the market is performing well and maximizing as you might find yourself in a losing situation. Before investing in the best lump sum investment plan, investors should be aware that the funds they choose should be based on their specific goals and risk tolerance. For instance, simply capital gains, gains plus tax advantages, etc. Consult an expert advisor to get the right plan TALK TO AN EXPERT
Investment strategy to save money for child's higher education

Investment strategy to save money for child's higher education

Inflation may have reduced to 4-2% levels from its historical high, but the expense of services such as education and healthcare has been rising. Thus, you must save enough to avoid facing any cash crunch when it comes to fulfilling the educational need of your children. In this blog, we discuss how you can use mutual funds to fulfill the needs of your child's education. Read on!   A child's education is one of a family's most significant and crucial cash outflows. If you look at the tuition cost, a four-year engineering course cost around Rs 5-6 lakhs today. Assume your child is 7-8 years old and is likely to start his engineering in 10 years. The current cost may rise to Rs 10-12 lakhs, considering the 8-10% inflation.   Will the fees increase this much? The earlier generation had it very easy when the competition and costs were less. But today's competition has been on a rising spree, and everyone is considering sending their child to the best engineering college where the fees are increasing owing to rising demand. Also, lifestyle inflation has impacted the cost of education in India. As your standard of living improves, it directly influences your decision about where you want your children to study.   While we are considering only engineering courses here, a management course is lined up after engineering.   The two-year management course from an elite B-school is currently in the range of Rs 20 lakhs, which may increase to 2x by the time your child enrolls in the course. How can you overcome the problem of rising education costs?   The big question that is worrying parents is, how will you be able to fund your child's education?   Start early - One of the distinct ways to accumulate money for your child's education is to start soon. Individuals may need more time to amass a large sum of money, and thus they should benefit from the power of compounding. A corpus of 1 crore may seem very high, but it could be planned better. For example, a SIP of Rs 3000 for 20 years should help you accumulate a corpus of Rs 45 Lakhs.   It would help if you did not wait for the child to turn 10; instead, should start saving from the time the child is born. This gives you a much longer term to save and accumulate the money. For example, if you started the same SIP for ten years instead of 20 years, you would need to save Rs 16500 per month to achieve the same corpus as above.   Remember, a delayed start yields a small corpus and impacts your other financial objective. If you start investing for your child at 40-45, you will likely need more than the required amount. In such cases, parents often use their retirement corpus in India for their children's education, which is not a good move but only amplifies the risk.   Choose the correct option - Starting early isn't enough. You need to ensure that the money you save when you start early makes you money. Thus, you must ensure that the funds you select are suitable or the asset allocation is proper.   How to do asset allocation?  Very simple, merge your asset risk profile with the fund's risk profile. If you start saving early in life, when the child is born, you have a long-term horizon to save. For this, you may opt for equities and equity-based funds.   Play safe over the short-term - If the horizon is short, say less than five years. Ideally, it would be best if you opted for a balanced portfolio with a higher debt and debt-based funds allocation. While investing in debt funds is safe, you should not invest in random and conduct the right diligence before selecting.   Review portfolio timely - Once you have allocated a corpus to a different asset class and started investing, you must review your portfolio from time to time. Depending on the performance of the various instruments in your portfolio, you may need to re-balance your portfolio from time to time. Re-balancing ensures that your portfolio is a true reflection of your conviction. As an investor, you stay focused due to the performance of a few asset classes while ignoring the risk element. Also, reviewing the portfolio regularly gives you comfort in your financial goals. It helps you get comfortable if you are on track to meet your objective. If not, consider changing the asset allocation or the instruments within the asset class. What do you do as you approach your goal?  Investing is never a static process; if it is capital, it is bound to be volatile. While you may start with a 100% equity portfolio at the time of your childbirth (when you have 20 odd years in hand) but when you are approaching closer to the goal to safeguard the accumulated corpus by way of capital gain, you need to start moving your corpus to a comparatively safer asset class. For example, when you are just five years away from the goal, you must start a Systematic Transfer Plan (STP) and take out the money systematically from your equity funds to a safer debt fund. This way, you will be able to safeguard your capital by the time you reach your time (say, time to pay college fees).   Remember, you must act cautiously when your goals are crucial and must be completed on time. This is because market volatility can't be predicted, and you may lose a considerable chunk if not planned well.   For example, assume you needed money in December 2016 for your child's education and have invested 100% in equities since 2006. You would have garnered a sizeable sum in 10 years, but you should have safeguarded your capital in 2016, thinking you would gain more.   But in November 2016, demonetization happened, and the market corrected considerably. At this time, it would be better to start early and in a disciplined manner. If you had begun shifting money from equity to debt in January 2016, you would have been left with money that would have helped you meet your expenses.  To conclude, mutual funds are a great tool to invest and plan for your financial goals. Given that goals are different in nature and importance, you must plan for each purpose separately instead of having one plan for all. Remember, in mutual funds, one size may not fit all.   Thus, your plans are personalized and customized to your profile and not replicated by your colleagues. To know more about profiling yourself or constructing your portfolio with the right asset mix, feel free to reach us at hello@edufund.in. You may also download our app for iOS and Android. We are based in Ahmedabad, Pune, and Navi Mumbai, so please drop by, and we could catch up for a cup of tea and some savories from Gujarat and Maharashtra.
Reasons to study in New Zealand

Reasons to study in New Zealand

One of the safest places to study in New Zealand. The ideal blend of culture, environment, and opportunity for a student is made up of internationally renowned institutions and an engaged educational system. New Zealand, an island nation and one of the last inhabited countries provides the ideal fusion of an untainted environment, adventure, and calm. In this blog, we'll talk about the best reasons to study in New Zealand. Reasons to study in NewZealand 1. Highly regarded education system The primary and most important reasons why New Zealand is such an excellent destination to study at a university are the teaching qualities and general education system there. It's a nation that prioritizes both knowledge-based and practical learning to make sure that its kids are completely equipped for the future. New Zealand institutions frequently receive good rankings, in part because of this unique teaching method that guarantees practical experience while you're a student. According to the QS World University Rankings 2021, all eight of New Zealand's publicly funded universities are ranked within the top 3% in the world. 2. Lots of programs to choose from There are many excellent programmes to pick from since New Zealand is a very popular place to study abroad. New Zealand provides a wide range of specialist programmes in addition to exchange programmes with American institutions, many of which are affiliated with a specific university. Many of these programmes are well-regarded and all-inclusive, which takes a lot of the stress out of the study abroad process and gives you more time to enjoy your course of study. 3. Lots of job opportunities For students seeking employment, both throughout their studies and after graduation, New Zealand is a nation of opportunities. Whatever you decide to study, there will be chances for temporary jobs and long-term employment. In truth, Student Job Search, a free nonprofit organisation, has years of expertise assisting New Zealand students in finding both temporary and long-term employment. When you are in the nation, you can utilise their services. 4. Affordable cost of living & studying New Zealand offers a range of student housing alternatives, food that is conveniently accessible and reasonably priced, and a cheaper overall cost of living than Australia. In addition to being reasonably priced, public transportation provides simple access to rivers, lakes, woods, and beaches for recreational options.  In contrast, the price of a New Zealand education ranges from NZD 6,500 (INR 3.43 lakhs) to NZD 40,000 (INR 21.12 lakhs), depending on the sort of programme the student is enrolled in. Doctoral programmes are the most affordable to attend in New Zealand, followed by post-graduate and undergraduate programmes.  Graduate degrees as well as diploma and certificate programmes may be the most expensive courses in New Zealand for overseas students. Students who are trying to locate financing sources for their studies in New Zealand will also have no trouble doing so. 5. Quality of life The wonderful multicultural environment that New Zealand provides melds perfectly with the energetic outdoor lifestyle that is so prevalent there. With its plethora of different natural beauties, such as rolling green hills, golden sand beaches, snow-capped mountains, volcanic volcanoes, and lush rainforests, New Zealand inspires wanderlust. Every student who lives here has the opportunity to develop while experiencing the region's rich cultural diversity and breathtaking natural beauty. 6. Safe and peaceful country  New Zealand is placed second in the world in the Global Peace Index 2018*, which evaluates the political stability and social tolerance of the Kiwi democracy. You will have the same rights as your Kiwi peers as an overseas student. 7. A fantastic culture The native Mori people of New Zealand, who speak their language and have their own mythology, have a rich cultural history that blends with Western norms inspired by British culture. Today, New Zealand's arts, crafts, and food regularly feature elements of the Mori culture. Sport is a serious endeavour in New Zealand, which is another cultural element. Despite how well-liked cricket is, rugby is where they shine. Another place where you could see the Mori traditions is during the well-known Haka, a ceremonial dance done by the national rugby team to intimidate opponents. Despite having a population of less than 5 million, New Zealand's national side, known as "The All Blacks," is the pride of the country since it is acknowledged as the finest rugby nation in the world. New Zealand is well known for its breathtaking natural scenery and the thrilling activities it provides. The best part is that all of this is conveniently accessible from all eight of the nation's colleges. Even though you will be a student there, you will have a tonne of possibilities if you ever want to spend weekends and vacations travelling the nation. Excellent opportunities for adventure sports, trekking, etc. are available in New Zealand. Consult an expert advisor to get the right plan TALK TO AN EXPERT
Reasons to study in Dubai

Reasons to study in Dubai

Known for its skyscrapers, high standard of living and reputable higher education institutions, Dubai makes for a popular study destination. A very global metropolis, it draws students from all over the world. In this blog, we have discussed the top reasons to study in Dubai. Reasons to study in Dubai Who hasn't heard about Dubai? Either via the news or the internet, you must be able to recall the name of Dubai. Due to its impending increase in trade, oil, and business, Dubai, one of the Emirates in the UAE area, is renowned as the "city of gold."  However, Dubai is home to many strange wonders, from camels to sports cars, from culture to the allure of its ruler, to vending machines to the obscenely wealthy locals.  It is comparable to a stand-alone metropolis that is ranked among the most advanced and sophisticated cities in the world, with top-notch amenities, infrastructure, and a commanding position in the global business community. 1. High standards for education  The United Arab Emirates consistently works to raise the caliber and effectiveness of its institutions of higher learning, and its universities are among the best in the world. Due to its high rankings in the QS Best Student Cities index's indices of attractiveness and student opinion, Dubai is a well-liked study location among students. Canadian University Dubai, one of Dubai's most esteemed institutions, is ranked 25th in the QS Arab Region University Rankings and among the top four universities in the UAE in the QS World University Rankings 2022. Also according to the most current QS World University Rankings, the university enrolls students from more than 120 different countries and is ranked sixth globally for its proportion of foreign students and seventh internationally for its proportion of international faculty members. 2. Employment opportunities You are already aware of Dubai's robust economy at this point. After finishing the course, you won't have trouble finding employment in such a market. As soon as you enter the city, you'll see that it is home to influential corporations with a global reach like the BBC, Sky News, AP, HP, Oracle, Microsoft, etc. As a result, after studying in Dubai, there are countless work prospects. 3. Many types of program options  Study abroad in the UAE as an exchange student (through a university partnership or ISEP), through a third-party provider (API, CIEE, IFSA-Butler), or as a visiting student who enrolls directly. You may enroll for a year or a semester, and you might even incorporate an internship before going back home. 4. Dynamic culture The presence of more than 100 different nations in one location, which results in individuals with various viewpoints, styles, philosophies, and dialects, cannot be denied. According to surveys, just 20% of the people in the territory's national culture made up Emiratis, with the remaining 80% being immigrants from all over the world. You could hear a variety of languages on the streets, including English, Arabic, Farsi, Urdu, Hindi, and even Tagalog. Students who study in Dubai return home with a wealth of priceless memories. 5. One of the fastest-growing economies What is the Brookings Global Metro Monitor, exactly? The simplest explanation is that it controls the largest metropolitan economies. Are you informed? Out of more than 300 metropolises, Dubai's economy is in the top five in the world for economic growth. The best feature is that you may study in Dubai, or perhaps I should say study in a country that is rapidly developing economically and socially. The acceleration of this economy's growth is due to the increase in trade and tourism, both of which are encouraged in Dubai. 6. Safety International students come to Dubai to improve their education. Students are treated well by the locals, and women are respected. In Dubai, people of various nationalities may comfortably follow their religions without facing any external threat. 7. Entertainment hub Due to its popularity as a tourist destination, Dubai draws a large number of celebrities, influencers, sports stars, and other inspirational figures from all over the world. It's safe to say that you won't have to deal with any dull moments here. For their festivities, which are normally open to everyone, the affluent emirs of the city also regularly hire the best entertainers. If you don't want to participate in these activities while you are a student in Dubai, you may still visit the water parks, beaches, shopping malls, multiplexes, and beautiful gardens. Studying in Dubai is fantastic. It provides learning opportunities that are quite difficult to get by elsewhere. You can study here if you want to learn more about this lovely city or if you just want to start exploring a new location to call home. It is simple to see why Dubai has been named the finest city in the world for ex-pats. The cost of living is low, there are many employment options, and Dubai would gladly provide you with a new house or apartment if you're seeking one. Consult an expert advisor to get the right plan TALK TO AN EXPERT
Best debt funds to invest

Best debt funds to invest

What are debt funds? What are the best debt funds to invest in? Debt Mutual funds invest in fixed-income securities such as Corporate Bonds, Government Securities, money market instruments, etc. These funds are also known as income funds or bond funds.   The difference between the purchase price and the selling price of the securities adds to the NAV of the fund. If the fund bought security for Rs 1000 and had to sell it in extreme market conditions at Rs 900 by making a loss, it would result in the depreciation of the NAV.  Debt funds earn through capital appreciation and Interest Income from the fixed income securities. Consider that a debt fund receives 10% annual interest divided by 365 and added to the NAV daily.   A debt fund's NAV depends on its portfolio's interest rate and credit rating. If the credit rating of one of the securities that a fund is invested into goes down (due to default), the NAV of the fund also depreciates.   The interest rate regime also affects the NAV of the fund. For example, if a fund ABC holds a security that offers 8% interest. If the RBI announces a decrease in the interest rates, then any new security would adhere to these new regulations and offer a lower interest rate.   This would drive up the demand for pre-existing securities, which were offering a higher rate (similar to our security which offered a rate of 8%). Consequently, the price of these bonds/securities would increase, hence leading to an increase in the NAV of the fund.  In the following, we aim to provide 2 top performing funds in each debt fund category and also provide insights on which category would be ideal for you. These are not recommendations and you are suggested to consult your investment advisor before investing. You can also book a free call on the EduFund app with one of our advisors.  1. Liquid and money market funds These funds invest in money market securities with a maturity lower than 91 days. They are considered an excellent alternative to savings accounts and fixed deposits as they offer higher returns and are tax-friendly (compared to traditional instruments). They have a reasonable level of safety of the invested principal coupled with liquidity. They typically do not have exit loads.  Investor: Suppose you have surplus cash or a sudden influx of money – sale of real estate property, bonus, etc., instead of parking it in a savings account and earning a meager 4% return. In that case, you could consider Liquid funds as an alternative. These are also suitable for risk-averse investors and investors looking for stable returns and liquidity.  Funds: Fund Category 1Y Returns AUM UTI Liquid Cash Fund Liquid 5.13% Rs 23,211.80 Cr Aditya Birla Sun Life Liquid Fund Liquid 5.16% Rs 39,952.77 Cr Tata Money Market Fund Money Market 5.25% Rs 8,617.75 Cr Nippon India Money Market Fund Money Market 5.28% Rs 10,238.33 Cr Note: AUM as on December 31, 2022, Returns as on January 25, 2023. All are Direct Plan and Growth option  Source: EduFund Research 2. Gilt funds Gilt funds invest in Government securities of State and Central governments with different bond tenures (or varying maturities) such as 1-year, 3-year, ten-year, etc. Government bonds are considered risk-free and have a zero probability of default (Credit risk is zero). However, these funds are subject to interest rate risk, i.e., the portfolio's worth appreciates or depreciates depending on the interest rate regime in the economy.  Investor: These are suitable for a risk-averse investor. They are beneficial in a falling interest rate environment as these funds would have underlying securities carrying a high coupon.  Funds:  Fund Category 5Y Returns AUM DSP Government Securities Fund Gilt 8.41% Rs 416 Cr ICICI Prudential Gilt Fund Gilt 8.12% Rs 2,601 Cr Note: AUM as on December 31, 2022, Returns as on January 25, 2023. All are Direct Plans and  Growth option  Source: EduFund Research  3. Short-term funds  Funds that invest in securities that have a maturity of 1-3 years with high liquidity. The fund invests in corporate bonds, certificates of deposit, commercial paper, and government securities with medium and long-term maturities. They are prone to a lower interest rate risk when compared to medium and long-term funds. This aids the funds to sail through adverse market conditions.  Investor: They are ideal for risk-averse investors who aim to receive higher post-tax interest or returns (when compared to FDs) when the investment horizon is more significant than one year.  Funds:  Fund Category 3Y Returns AUM UTI Short-term Income Fund Short-term 8.02% Rs 2,245.56 Cr ICICI Prudential Short-term Fund Short-term 7.05% Rs 15,527.68 Cr Note: AUM as on December 31, 2022, Returns as on January 25, 2023. All are Direct Plans and Growth option  Source: EduFund Research  4. Medium-term funds  Funds that invest in securities that have a medium-term maturity of 3-4 years. SEBI mandates that these funds invest in securities with a Macaulay duration of 3-4 years. They earn higher post-tax returns when compared to a 5-year bank FD. One can also opt for Monthly income plans if they wish to receive a periodic income from their investments.  Investor: They are ideal for risk-averse investors who aim to receive higher post-tax interest or returns (when compared to FDs). They are also ideal for the diversification of risk. They are lesser volatile when compared to equity funds and are also lesser prone to interest rate risk when compared to long-term funds. Fund:  Fund Category 3Y Returns AUM ICICI Prudential Medium Term Bond Fund Medium Term 7.24% Rs 6255.30 Cr SBI Magnum Medium Duration Fund Medium Term 6.87% Rs 7145.68 Cr Note: AUM as on December 31, 2022, Returns as on January 25, 2023; All are Direct Plans and Growth option  Source: EduFund Research 5. Dynamic bond funds Funds are actively managed or employ a dynamic investment/asset allocation strategy by reducing the average portfolio duration (or maturity) in increasing interest rate environments and increasing the duration in a falling interest rate regime. These funds allow the investor to earn from the interest rate fluctuations.  Investor: They are suitable for investors who want to stay invested longer without worrying about the interest rate movements affecting their wealth creation.   Fund: Fund Category 5Y Returns AUM ICICI Prudential All Seasons Bond Fund Dynamic Bond 8.14% Rs 6264.50 cr SBI Dynamic Bond Fund Dynamic Bond 6.24% Rs 2350.78 cr Note: AUM as on December 31, 2022, Returns as on January 25, 2023 Source: EduFund Research 6. Credit risk funds  These funds allocate 65% of their total assets for purchasing lower-rated securities (lower than AA- credit rating) and offer higher returns to their investors. The credit risk is higher for these funds. The interest rate risk is comparatively lower as these funds invest in securities with low maturities. The funds also gain from capital appreciation if the underlying security is upgraded to a higher credit rating.  Investors: These are only suitable for investors willing to take a higher risk. This is due to the lower credit securities as a part of the portfolio which have a higher probability of default.  Fund: Fund Category 3Y Returns AUM ICICI Prudential Credit Risk Fund Credit Risk 7.60% Rs 7866.00 Cr DSP Credit Risk Fund Credit Risk 6.37% Rs 234.03 Cr Note: AUM as on December 31, 2022, Returns as on January 25, 2023 Source: EduFund Research  Debt funds add great value and diversification to your portfolio. Want to create a powerful financial plan to meet all your goals? Then connect with our experts today!   Consult an expert advisor to get the right plan TALK TO AN EXPERT
DSP Equity Savings Fund

DSP Equity Savings Fund

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant. The family behind DSP has been very influential in the growth and professionalization of capital markets and the money management business in India over the last one-and-a-half centuries  Let us talk about the flagship product – DSP Equity Savings Fund.  DSP Equity Savings Fund  Investment objective The investment objective of the Scheme is to generate income through investments in fixed-income securities and using arbitrage and other derivative Strategies. The Scheme also intends to generate long-term capital appreciation by investing a portion of the Scheme's assets in equity and equity-related instruments.  Investment process   DSP Equity Savings Fund invests in equity, arbitrage as well as debt instruments to aim to deliver relatively more predictable return outcomes. The equity portion provides the 'boost', the debt portion tries to 'shield' the portfolio from corrections & arbitrage helps take advantage of tactical profit-booking opportunities.  Portfolio composition  The portfolio's major exposure of more than 65% in large-cap followed by 10% in mid-cap. The top 5 sectors hold nearly 31% of the portfolio, with major exposure to the Banks and Power. Note: Data as of 31st Dec 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: dspim.com  Top 5 Holdings  Name Sector Weightage % Housing Development & Finance Corporation Ltd. Finance Institution 5.59 ICICI Bank Ltd. Bank 3.89 Axis Bank Ltd. Bank 3.40 Powergrid Infrastructure Investment Trust Investment Trust 3.03 India Grid Trust Investment Trust 2.60 Note: Data as of 31st Dec 2022. Source: dspim.com  Performance over 6 years If you would have invested 10,000 at the inception of the fund, it would be now valued at Rs. 16,682. This fund has outperformed the benchmark in all time horizons. Note: Performance of the fund since launch. Inception date – March 28th, 2016. Source: Morningstar  The DSP Equity Savings Fund has given consistent returns and has outperformed the benchmark over the period of more than 6 years by generating a CAGR (Compounded Annual Growth Rate) of 7.86%  Invest Now Fund managers  Abhishek Singh - Total work experience of 14 years. He joined DSP Investment Managers in January 2021 as Assistant Vice President in the Equity Team Abhishek has worked with Kotak Mahindra Group and Edelweiss in the past.  Kedar Karnik – Total work experience of 17 years. Kedar joined DSP Investment Managers from Axis Asset Management.  Jay Kothari - Vice President & Product Strategist -Jay has been with DSP Investment Managers since May 2005, and has been with the Investment function since January 2011. Jay joined the firm as a member of the Sales team (Banking) in May 2005.  Who should invest in DSP Equity Savings Fund?  Investors  Who value smooth equity investment journeys with relatively more predictable outcomes.  Accept that equity investing means exposure to risk and recognize market falls as good opportunities to invest even more.  Why invest in DSP Equity Savings Fund?  This is a relatively lower-risk equity-oriented investment strategy compared to diversified or thematic equity funds.  Offers potentially better risk-adjusted returns compared to debt investments.  Time horizon  One should look at investing and holding the investment for more than 1-3 years.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  DSP Equity Savings Fund offers the potential to earn relatively better risk-adjusted returns compared to other debt instruments. It aims to deliver smoother, less fluctuating investment journeys. One can invest in this using a Systematic Withdrawal plan (SWP) as this fund has debt exposure to help your portfolio with a regular income.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.
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