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Systematic investment plans, or SIP, are a great tool to invest. It has helped create a significant amount of wealth over time for many investors. Some basic investment plans have the potential to create substantial wealth over time. Three basic principles work in favour of a SIP -   The earlier you start investing, the more the return accumulates over time. This leads to more profits. This phenomenon is also known as the power of compounding in financial parlance.   Time plays a more crucial role in SIP than timing. The earlier you start, the more you make; the longer you remain invested, the more you gain. This phenomenon also supports why a regular SIP has a better wealth ratio than a step-up SIP. For our novice readers, step-up SIP is where you tend to increase the amount of SIP every year when your inflows increase.   An investor needs to remember two things to get the power of compounding. Firstly, leveraging the power of equities helps in the long run, and secondly, the accumulated profits should remain reinvested to reap further benefits. Can a small SIP of Rs 5,000 make a big difference?  Yes, very much! Even a tiny amount can make a huge difference. How much difference can a SIP of Rs 5,000 per month make to your wealth? The answer is that it can make a big difference if you continue the investment for the long term in a disciplined manner without withdrawing any investments and investing in a powerful asset class such as equities.   Now, the question is, how much wealth can be accumulated?   For the answer, consider the chart below.  How the monthly SIP of Rs 5K grow over 15 years Source: www.mutualfundssahihai.com  Source: www.mutualfundssahihai.com  As seen from the above chart, a SIP of Rs 5,000 can grow your wealth to Rs 33.43 Lakh in 15 years. We have considered the annual return to be around 15%.  15% may look on the higher side, but remember, when you have a long-term horizon, such as 15 years, you can avoid the conservative plan altogether. If you have a conservative approach with a long-term horizon, it is nothing but not utilizing the true potential of capital. Your risk appetite and investment horizon should trickle down to your expected returns. Also, risk appetite should be computed by taking into account the cash inflow, minimum essential expenditure, age, number of dependents, and the like.  How to choose the SIP instruments?  Once you have understood your risk appetite and investment horizon, you need to map the same with the funds. Equity funds are best suited for a horizon over five years, particularly the ones that invest in mid and small-cap names.   Team EduFund has mapped the ideal time horizon and risk levels for the different fund categories (refer to the table below). <1 year1 - 3 years3 - 5 years>5 yearsLow riskDebt: LiquidDebt: Ultra-short termDebt: Short termDebt: Long termHybrid: BalancedMedium riskDebt: Short termDebt: Long TermHybrid: BalancedHybrid: BalancedEquity: Large-capEquity: MulticapEquity: Large-capEquity: MulticapHigh riskDebt: Long termEquity: SectorEquity: Large capEquity: SectorEquity: MidcapEquity: SectorEquity: MidcapEquity: SmallcapSource: EduFund Research  Considering the same, let us see the corpus you may make when your risk appetite differs. Risk AppetiteInvestment categoryExpected returnsInvested amountExpected amountLow riskHybrid: Balanced10%9 Lakhs20.72 LakhsMedium riskEquity: Midcap12%9 Lakhs23.98 LakhsHigh riskEquity: Small Cap15%9 Lakhs33.43 Lakhs As seen in the table above, the returns are highest in the high-risk category, and even a small amount of Rs 5000 per month for 15 years could help you fetch nearly 4x wealth in 15 years.  Should you invest Rs 5000 in one fund?   The answer is No. If you do that, you will get into concentration risk where your capital will be invested only in one fund. Remember, you need to have a diversified portfolio to benefit from each of them and, at the same time, reduce the volatility at the portfolio level by having smaller portions in each.   You should select 1-3 funds to make it Rs 5000 per month.   At this juncture, let us introduce a very cool feature of your app EduFund - the Educases. The Educases in EduFund are devised to ensure you invest systematically over the very long-term/long-term/short-term/very short-term for higher education goals, short-term goals, etc. Besides, the investment strategies section also highlights the five risk profiles and accordingly recommends the funds for investment. The tool uses its proprietary AI-backed engine that goes through multiple permutations and combinations before throwing any funds that suit the investor best. Not to mention that every result is back-tested to ensure that the EduFund-recommended funds do a great job in outperforming the benchmark and inflation by considerable margins. The following are some of the funds recommended by EduFund that an investor could look at if they are willing to invest in the long-term and have a high investment horizon of 15 years and a high-risk appetite. The above-mentioned Rs 5000 SIP could be invested in the following funds to achieve 4x growth. Fund Name Amount Objective Canara Robeco Small Cap Fund 2500 The fund seeks to provide long-term capital appreciation by investing predominantly in small companies PGIM India Midcap Opportunities Fund 2500 The fund seeks to achieve long-term capital appreciation by investing primarily in equity and equity related instruments  Consult an expert advisor to get the right plan TALK TO AN EXPERT

An education loan is no longer a choice but a necessity for most students aspiring to study abroad. Although there are several financing options like banks, private lenders, and NBFCs open, it is not an easy feat to get the loan sanctioned. There are numerous criteria to meet that confuse the applicant.  In this blog, we will go through some of the important tips for maximizing your chances of getting approved for an abroad education loan so that the loan journey remains smooth, quick, and easy. 10 tips to consider before applying for an abroad education loans 1. Study courses and university  Financial institutions put a great deal of emphasis on the course a student wants to pursue and the university they have been admitted to. The most important tip for maximizing your chances of getting approved for an abroad education loan is that the study course should be accredited otherwise, the loan application can be rejected.  STEM courses like mathematics, engineering, and science have higher earning potential compared to arts, humanities, or commerce; hence the chances of a loan being approved are high. If you are considering the other courses, make sure you balance them out with a good and reputed university. It should be a top-notch place to study with a good reputation or ranking.   2. Academic history of the applicant Academic history matters as it will give a fair idea of the student’s capabilities, whether they are serious about their studies, and do they have the intelligence to get exceptional marks.  A student with consistently good grades has a better chance of loan approval than an average student or an applicant with an academic gap or backlog. Applicants seeking an overseas education should be serious about their studies from the word go, as it will improve their chances of loan approval.  3. Applicant and co-applicants age Financial institutions generally do not have an age limit for a secured loan, but for unsecured loans, the maximum age limit is 28 years. The co-applicant should not be close to the retirement age as lenders are hesitant in sanctioning them the loan. Applicants should be aware of the age criteria and apply for the loan accordingly.   4. Genuine and complete documents Fake or incomplete documents will result in the cancellation of the loan application; hence never try it. Read the guidelines carefully and submit each document as per the requirement. These include the loan application form, academic records and mark sheet, entrance test scores, address and identity proof like Aadhaar and PAN, admission letter from the university, and statement of costs.  5. Good CIBIL score CIBIL scores of the applicant and the co-applicant matter as a good score suggests that the previous loans have been paid on time and the chances of getting back the loaned money are high. A bad score means a delay in repayment or a cheque bounce. A good score will increase the chance of securing a loan; hence applicants should be conscious of maintaining a good CIBIL score from the beginning. 6. Too many loan inquiries are harmful Students should not apply to numerous financial institutions as they, in turn, inquire with CIBIL Agency which mentions the number of inquiries in the credit report. This has an impact on the CIBIL score; thus, the applicants must research beforehand and apply for the loan at the appropriate place and at the right time after going through all the pros and cons. 7. Must fulfill the income criteria Applicants must find out the minimum income required by the lender and then fill out the loan application; otherwise, it will be rejected.  8. The repaying capacity Lenders will look at the repaying capacity of the applicant and their total income. In case the loan is passed and is mid-way, and the co-applicant has lost or left their job, the loan can still get rejected. 9. Types of collateral  Financial institutions have a list that defines which properties are considered collateral and which are not; hence applicants must go through the list before naming that property as collateral.  10. Meet the set policy Every lender has a specific set of rules, and the applicant must go through them in detail and then fill out the form and submit the required documents.  Conclusion Lots of students apply for an education loan every year, but only a handful of them manage to get it sanctioned. In most cases, the applicants are not even aware of the true reason for the loan rejection. Knowing about the above-mentioned tips can maximize your chances of getting approved for an abroad education loan.  Reach out to the counselors or experts on the Edufund app for an abroad education loan, and they will guide you through the whole process in quick and easy steps. Consult an expert advisor to get the right plan TALK TO AN EXPERT

If you want to make the life of your child safe, secure, and rewarding, start investing INR 500 every month for the child as early as possible, say financial experts. Even a small amount of INR 500 will go a long way in creating a solid financial corpus if it is backed by good planning and a strong investment vehicle.  The right kind of investment is of utmost importance because it will safeguard the future interest of the child and lessen his financial burden. Best investment plan to invest INR 500 every month for the child Planning an investment of INR 500 every month for a child is a huge thing; hence investors need to consider many factors before finalizing the perfect investment vehicle.  1. Systematic Investment Plan or SIP Invest INR 500 every month for the child in mutual funds with the help of SIP, as the small amount will keep on adding and compounding to create a very large financial corpus. SIPs are one of the best vehicles because it encourages investing and saving consistently in a disciplined manner.  Start as early as possible because it will provide a large window for the fund to accumulate. For example, if the investment period is 20 years and the expected rate of return is 10% per annum, then a monthly sum of INR 500 can result in nearly INR 3,82,848.  Invest through the Edufund App, as it offers a choice from 4000+ direct mutual funds. It is easy to start and stop a SIP anytime you desire.  2. Direct Equity For investors who are not afraid to take high risks, the amount of INR 500 can be used to buy direct equity. Choose growth stocks as they will yield better returns (in the average range of 50%) than average equity, which is expected to yield a return between 13% - 15%. Remember, patience is the key to growth equity, and you have to remain invested for the long term to get solid returns.  3. Public Provident Fund (PPF) The PPF investments are for investors that do not want to take risks and are looking for safe investment vehicles. With a 7.1% interest rate, PPF is a long-term tax-saving investment scheme that can be opened in a bank or a post office.  4. Recurring Deposit Account The interest rate on recurring deposits is nearly 6.5% to 6.9% depending on the bank. The RD account can be opened in a bank or a post office where an investment of INR 500 will keep on accumulating and earning interest throughout the investment period. The RD account is for investors who want to keep their money in a safe environment and simultaneously earn some money. 5. Child Insurance Plans  Child Insurance Plans are some of the best vehicles to invest INR 500 every month for a child. There are child life insurance plans that can be paid on a monthly basis.  With an amount of INR 500, you can buy a term insurance plan that offers high death benefits.  Child investment plans are very advantageous because if in some cases the policyholder dies then the future premiums are waived. The insurance company then keeps on investing the premium amount on behalf of the policyholder, and the amount is given to the child as per the terms and conditions of the policy. Examples of child insurance policies with a premium under INR 500 per month are SBI Life’s Term Insurance Plan, where the minimum premium is only INR 365 per month, and the ABSLI DigiShield Plan, with a minimum premium of INR 477 per month.  If you have a girl child, then there are also several investment schemes just for the girl child. The government-backed scheme Sukanya Samriddhi Yojana was introduced specially to save the future of a girl child. You can invest INR 500 per month and the amount is payable after the maturity period of 21 years.  6. Stocks & ETFs Although stocks are considered risky, they have an advantage over some of the investment options, like recurring deposit accounts, because of high returns over a long period. ETFs are also high return cost-effective investment vehicles through which the investor can invest in entire sectors.  Conclusion Take a leap of faith and start the journey to invest INR 500 every month for the child because it will go a long way in creating a lump sum amount in later years.  Take the help of the investment experts on the Edufund app to create the best possible personalized financial plan for your child with an amount of INR 500. The strategies are backed by data, research, and appropriate tools like the investment calculator so that you will get better returns on your investment, and that too in a secure and transparent environment. Consult an expert advisor to get the right plan TALK TO AN EXPERT

A student loan serves as the ideal link between academic hopefuls and high-quality education, enabling them to get a desired university seat and realize their academic goals. It is wise to get an education loan, but it's crucial to make your payments on schedule. Even if getting the loan could be easy, if it isn't planned well, repaying it could be difficult. Strategies for repaying your abroad education loans 1. Pay the variable rate loans first It is advisable to pay off the variable-rate loans first when you have several student loans to repay, some of which have variable interest rates and others that have fixed interest rates. Even if the variable rate is now lower than the fixed rate, this is delicate and changeable. You can be taken aback if interest rates suddenly increase as a result of economic developments. 2. Think about refinancing your education loan You likely have debt in addition to your school loan. For instance, you can also be responsible for paying off a car loan. If so, you might want to think about refinancing so you can handle your loans more effectively. If a lender gives you a cheaper interest rate, you might look into refinancing your student loan.  Your payments won't be a hardship this way. Due to unforeseen circumstances, you could incur unforeseen fees when making your school loan repayments. Therefore, even a tiny amount of money saved from interest may make a big difference in your situation. Examine your refinancing choices, and if you find a better bargain, move your loan. 3. Choose the right repayment plan Choosing the appropriate education loan repayment plan is the best method to manage student debt. Your lender will offer you a range of repayment options. Choose the approach that best fits your budget. You must be informed of the duration of your moratorium. Before your first EMI is due, you will know how much time you have left to find employment and save money. Think about your anticipated pay from your first job as well. You may determine the appropriate tenure and EMI with the aid of all of this. Without such careful planning, you can end up selecting an EMI that is too expensive for you financially. 4. Get a part-time job while studying It is advisable to work a part-time job that fits into your schedule while attending college or a university to further your knowledge. Saving money from your part-time employment will significantly speed up the loan payback procedure. Students studying abroad are most affected by this strategy. 5. Buy an insurance Banks require a term cover or insurance in the borrower's name as part of their policy. To ensure repayment in the event of any interruption due to either natural or manmade causes, the risk cover should be equal to the loan amount. 6. Loan forgiveness programs The release of the borrower from the obligation to repay a loan is referred to as loan forgiveness, also known as debt elimination or forgiveness in the financial industry (or a portion of a debt). Although theoretically any student debt might be forgiven, student loan forgiveness typically only applies to loans issued or sponsored by the United States government. 92% of the nation's total student debt is comprised of these loans.  In other words, even though the loans are designated for students, the well-recognized forgiveness programs do not apply to any privately issued loans. Borrowers may be able to get their loans canceled or forgiven in specific circumstances. Loan forgiveness applicants must apply, and they might need to continue making payments until their request is approved. How to choose the right Education loan for higher education?  Research and thorough comparison are necessary while selecting the best education loan for higher education. Before choosing an Education loan, compare the interest rates and repayment options offered by several institutions. You may also get in touch with an expert. They can assist you in negotiating a lower interest rate and in organizing your repayment plan to help you save money. Before choosing to take out an education loan, ascertain how much money you require to fund your higher education. Our College Cost Calculator will help you determine how much additional money you'll need to live comfortably in your college city by providing you with information on the tuition and living costs there. When arranging the repayment of your student loan, keep in mind to account for all possibilities and outcomes to make the process simpler on both your wallet and your mind.  It may also be advantageous to invest to increase your current savings corpus if you haven't received a credit sanction yet and are still considering your ability to repay to minimize the amount of credit you require, which might then result in a shorter loan term or lower interest rate. Consult an expert advisor to get the right plan TALK TO AN EXPERT

In this blog, we will discuss how mutual funds work. Before we get into greater details regarding a mutual fund, we shall discuss what it is, followed by the types of funds and their operation.  What is a mutual fund?  A mutual fund is a professionally managed fund. It pools money from different investors, such as individuals, companies, trusts, etc. The corpus accumulated is invested in securities such as stocks, bonds, money market instruments, commodities, etc. While some mutual funds invest in a single type of security, others may have a combination of security types. The objective of a fund  One of the most important objectives of any mutual fund is to beat the benchmark returns and category average. A fund is aimed at generating alpha.  How does an investor earn through a mutual fund?  An investor invests in a mutual fund so that they can generate income. The following sources contribute to this income:  Divided payments – Dividend paid by the fund house  Capital gain – Gains accumulated by the fund upon the selling of any security  Net Asset Value (NAV) – When NAV increases, the investor benefits during redemption.  Types of Mutual Funds  There are multiple types of funds based on the asset class. The Securities and Exchange Board of India (SEBI) categorizes these:  Equity Schemes – These mutual funds invest in equities and equity-related securities.   Debt Schemes – This type of mutual fund invests in debt instruments  Hybrid Schemes – This type of fund invests in a mix of stocks and bonds Solution-Oriented Schemes – These are schemes with a specific goal. Example - Retirement fund  Other Schemes – This includes funds that are not covered above. For example, funds of funds.  How do mutual funds work?  Fund house collects money from investors. This fund is then invested in securities such as equities, bonds, etc. Investors get units of the mutual fund as per the amount they have invested.  Pictorially the entire process can be elucidated as under: Source: Corporate Finance Institute What is the cost of each unit?  The cost of each unit is determined based on the fund's total assets net of all expenses. Expenses include management fees, securities transaction tax, other taxes, and administrative expenses. When divided by the total number of shares, Net Asset gives per-share Net Asset Value (NAV).  How to invest in mutual funds online?  To start investing in a fund, you need to have a Permanent Account Number (PAN), a bank account, and be KYC (know your customer) compliant. You can purchase mutual funds through the following:  Directly with the fund house - You can invest directly with the fund house. This option is available both online and offline.  Through third-party portals – You can always invest in using third-party portals such as EduFund. These portals have tie-up with fund houses and offer an unmatched investing experience.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

One of the most complex problems might be taking out an education loan for overseas studies, primarily if exorbitant interest rates support it. Therefore, your priority should be to look for solutions that allow for fewer EMI payments and a cheaper interest rate before approaching a study abroad education loan. In this article, we'll talk about how to compare and negotiate with lenders over the conditions of student loans for international study. How to compare abroad education loans You may compare your student loans for international study from several lenders based on the following criteria: The rate of interest: ROI significantly impacts the overall sum you will have to pay back to the bank. Before you sign anything on the dotted line, examine the ROI since even a 1% change will significantly influence the amount of interest you pay overall. Additionally, students should determine if their ROI is fixed or floating. Moratorium period: Most lenders provide a moratorium period during which the student is exempt from loan payments. Compare the terms of the moratorium period carefully because they vary from lender to loan. Processing fee: Comparing the processing price is also a wise decision because a lender might impose a processing fee that ranges from 0% to 5% of the loan amount. Imagine obtaining a loan for INR 40 lakhs with a processing charge of 5% instead of INR 2 lakhs without a processing fee.  Penalty on prepayment: Another crucial comparison on our list is this one. On student loans, lenders impose prepayment penalties ranging from 2% to 4%. Knowing the prepayment fees can help students plan their repayments more effectively because many want to prepay their loan balance to prevent future interest costs.  Interest subsidy scheme: If the interest subsidy program covers the loans they are evaluating, students would also compare those loans. Loan tenure: The total interest paid to the bank would grow with a longer loan term. So choosing a shorter loan term would be the better choice. RBI Guidelines for Education Loans Read More How to negotiate the terms of abroad education loans from different lenders The following advice can help you bargain for a lower interest rate on your student loan: Build a strong profile: Your academic history and the institution you want to attend or decide to study at should be carefully considered if you are applying for higher education since they will significantly impact the interest rate. Try to maintain an attractive profile so that banks will be prepared to offer cheap interest rates on loans since they are confident in your ability to pay the money back. The major financial institutions for studying abroad consider your GPA, your GRE or GMAT score, your course of study, your level of study, your university, and the country where you will be enrolled. Please do your research: Before requesting a reduction in the interest rate on your student loans abroad from the bank, it is sometimes preferable to complete your research. Consider whether you can offer security or the income of your co-signer. You may also use factors like the length of your payback period to your advantage when negotiating interest rates with banks. Additionally, it's crucial to compare the interest rates offered by different banks and NBFCs and identify the lowest ones so that you may use their names to bargain with their rivals. There is a potential that you may prevail in the negotiation if your profile is impressive. Apply early: Before earning admission to a college, it is always advised for students with strong GRE scores to apply for study abroad education loans from banks. This benefits them by allowing them to evaluate other banks and provides them more time to bargain for a low-interest education loan from a foreign country. Applications for student loans abroad submitted at the last minute might have been a better option. Calculate the expenses carefully: Because the loan size can significantly affect the processing fees, it is crucial to estimate your costs before making any final decisions. You may also select an unsecured loan option if you correctly calculate your spending because they provide fewer loans. Balance Transfer: Sometimes, it makes sense to switch banks for your school loan since, after refinancing, the bank you would be moving from could offer you a cheaper rate, which might save you money. Additionally, you might need to transfer your mortgage in some circumstances, which could allow you to benefit from a cheaper interest rate. Most people take out their first loan before making a living for educational purposes. The borrower's credit history is significantly influenced by it. So, it is advisable to properly compare and negotiate the terms of your education loan TALK TO AN EXPERT

There are some key financial concepts kids should know because they will have a direct impact throughout their lives. These are life-changing lessons that help children to distinguish between wants and needs.  The practical aspect of finance is a topic that teaches kids about being responsible and managing money from an early age. Remember these are formative years and habits are often formed in the early years. Children who are aware of financial concepts and have even a basic financial understanding turn out to be better at managing their finances in later years. Financial concepts kids should know 1. Value of money The first financial concept kids should know about is the value of money. Parents try to fulfill their child’s wishes through the best of things that money can buy hence children often fail to grasp that money is hard-earned and not easily available.  Explain to the child that money has to be used properly otherwise it will be spent and there will not be any money left even for necessities. This basic lesson from childhood will stop kids from being extravagant at every turn.  2. Difference between need and want Start telling no to most of the demands and explain that money is limited and cannot be spent on every whim. Parents should make the child understand that there is a basic difference between wanting something and needing it.  Encourage your children to become financially sensible and not spend on whatever they want.  3. Savings The most vital financial concept kids should know about at all costs is the importance of savings in life. Start from an early age by giving them a piggy bank and encouraging them to save their pocket money. It is easy for young children to grasp the concept of saving hence keep explaining how money saved can be used later for important things. Saving is not only about money as you can make examples out of toffees or other things that your child likes. With time this will become a habit and the kids will learn to handle finance in a controlled manner.  4. Budget Keeping a track of your money and knowing when and how to spend it so that you have enough left for emergencies and savings is an important financial concept. Explain the idea of budget as it will help kids in planning finances and being organized.  Give the kids a fixed amount of money and small boxes or jars with labels like spending, saving, and even a charity jar where the children can distribute their pocket money for buying things, saving for a later period, and giving it out to the needy in respective jars.  This type of activity will help to budget and encourage them to save and spend accordingly.  5. Keeping track of spending Keeping track of spending is equally important as savings and budgeting. Encourage the kids to keep a tab of their daily spending by writing them down every day. Make sure that all the entries are recorded daily and totaled every week.  The practice of keeping a tab on savings will help children to understand expenses and adjust the budget accordingly so that they have enough left for the whole month.  6. Loan and debts Another financial concept that will help kids in the future is loans and debts and you can explain both quite easily. If your child is hellbent on something and he has spent all the money this is your golden chance to describe both concepts.  Remember borrowing money can lead to financial ruin so children should be aware of this life lesson from an early age. Never encourage children to borrow money even from their parents, siblings, or grandparents as it will become a habit and come back to harm them later on. As parents, you can educate how he can take a loan from you only this time to buy the desired item and how it will put the kid in debt. Explain that the original amount plus interest will have to be returned within a stipulated time frame and it will be deducted from his pocket money. Make sure that the interest amount is high enough to pinch him in the pocket and stop him from taking another loan from you quite easily. 7. Protecting key information Most people are handling money through technology via cards, ATMs, Apps or net banking, etc. Explain to your child the importance of keeping the information secret and not sharing it with anyone even if the person is very close.  Financial concepts kids should know in India Conclusion These are modern times where children often are techno-savvy from an early age so why not teach them about basic financial concepts? Sufficient knowledge about how to handle money, what is budgeting and what is the importance of savings can help to shape a kid’s future in the best possible manner

Every person should know about the basics of budgeting from an early age as these are life lessons that will always help you in real-life situations. The concept of budgeting is very crucial as it helps individuals look at their monthly incomes closely and create a clear action plan about the amount to be spent, saved, and kept handy for emergencies.  Having a deeper understanding of the basics of budgeting helps individuals to achieve their financial goals reasonably faster and easier compared to people who spend randomly without a concrete plan in place. What is Budgeting? Budgeting is a financial plan or a realistic report that helps to provide clear estimates of earnings and spending for a given period. Budgeting helps to address an individual’s financial situation, see the difference between needs and wants, and create an action plan that will help him reach financial goals and stability. What are the 7 steps of budgeting? Step 1: Know your “take-home” pay The basics of budgeting start with knowing what your “take-home” pay is. This is the monthly amount you receive after paying off the taxes. Once you identify the amount you have in hand it becomes easy to lay the groundwork for the spending and savings. Salaried people generally have a fixed income whereas self-employed individuals with inconsistent income must look at the lowest monthly income they have earned in the last year and use it as a base for the monthly budget plan.  Step 2: Choose the budgeting strategy There are several ways to budget but one should always choose the budgeting method that suits his personal needs and requirements and will work for him the best. If you are new to budgeting then choose the simplest basics of budgeting method “50/30/20 strategy”.  The “50/30/20 strategy” requires you to divide your income into three segments 50% for needs, 30% for wants, and 20% for savings.  The needs refer to necessities like food, rent, transportation, car payments, daycare expenses, child support, student loans, medications, repairs, credit card payments, and utilities. Wants are expenses incurred for vacations, shopping, entertainment, dining out, and savings to the money deposited for a retirement fund, education corpus, or debt payoffs.  Contact the experts on the Edufund app to create an effective budgeting strategy that will meet your needs and help to save for a retirement fund or create an education corpus for your child. Step 3: Set aside for margin of error It is not easy for every person to stick to the budgeting plan and keep track of spending religiously. Individuals should set aside some amount for error every month as it will give flexibility and serve as a breathing space in the budget.  This does not mean that you have the luxury of overspending every month hence make sure that you do not have to use that amount until it is necessary.  Step 4: Set automated savings Once you start paying for your needs sometimes it becomes difficult to put aside an amount for your savings. Set up automated savings so that as soon as the monthly salary cheque is deposited the required amount is transferred automatically from your bank to the savings schemes.  This budgeting method is best for people who consider savings as their priority. It is referred to as “paying yourself first” and helps individuals save the required money even before they start spending on the necessities.  Step 5: Use professional help or a budgeting app Use a budgeting app or professional help like the ones provided by Edufund App if you are finding it difficult to create a budgeting plan. Step 6: Track your progress Budgeting is nothing but a spending plan that helps to keep things in perspective. The method encourages you to divide your money based on requirements at the forefront so that everything can go as per the plan and there is no overspending.  Knowing about the basics of budgeting will make the road to achieving your plan easier hence track your progress diligently to see what is working for you and where you are struggling. At the onset, it is better to keep track of your expenses daily and gradually to weekly or to a 2-week.  Keep yourself in check by spontaneous assessments so that there are no goof-ups. Once your budgeting is on track you can shift to longer intervals.   Step 7: Assess and adjust Nothing is fixed in life hence give yourself room to assess and adjust if things are not going as per the plan or if there is a change in your income or expenditure structure.  Conclusion When you have a grasp on the basics of budgeting then it will help to take a systematic approach to monitor and control finances and reach your financial goals easily and much faster. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Education is the birthright of every child, but how many children can afford it in these turbulent times when education costs continue to rise? Gradually getting a good education is becoming a dream that only the upper-middle class or rich people can afford.  So, what happens to the students from lesser backgrounds who want to break the shackles of poverty through education? Well, building an education fund is an ideal option, but if they can’t reach their goal in time, an education loan is a great option. It can be repaid slowly within a stipulated time frame.  Leading government and private banks, cooperatives and NBFCs are offering loans at reasonable rates; hence it seems sensible to apply for it especially when the terms and conditions are aligned with your interests. Average education loan rates The average education loan rate in India is 11% if the student wants to study here. It increases to 12.5% if the student is interested in attending a foreign university.  Education loan rates Comparing the top education loan offers in India in 2023 The Reserve Bank of India in September 2022 hiked the repo rate to 5.9%, which resulted in an increase in ROI on loans. Let us compare the education loan rates in India of some of the public as well as private sector banking institutions to get a clear picture of the type of plan that will suit your personal preferences NameNational InstitutionsROI (%)International Institutions ROI (%)Processing FeesPunjab National Bank8.65% - 9.90%10.65% - 11.40%Nil – 1%State Bank of India7.95% - 10.55%10.55%Nil – INR 10,000Axis Bank13.70% - 15.20%13.70% - 15.20%Up to 2%Bank of Baroda10.50% - 11.85%10.25% - 10.90%Nil – 1%ICICI Bank9.5% onwards9.5% onwardUp to 2%Bank of Maharashtra8.85% - 10.70%10.35% - 10.70%Nil – 0.50%Federal Bank11.95% onwards11.95% onwardsNABank of India10.45% - 11.25%As ApplicableNil – INR 5,000Canara Bank8.8% - 10.80%10.40% - 10.90%0.50%Kotak Mahindra BankUp to 16%Up to 16%NA How do banks calculate education loan rates in India? Education loan rates of the lending Institutions depend upon several critical factors. These are- 1. University If the college or university that the student is getting admitted to has a record of good placements, then most banks would be willing to sanction loans at a lower interest rate. 2. Academic record The academic record of a student matters a lot because if a student has been able to maintain very good grades throughout their academic career, the chance of getting a loan at low-interest rates becomes high. If the record is average or below average, the chance of loan approval becomes less, and the rate of interest will be comparatively higher. 3. Collateral Secured loans or loan applications where the applicant can provide collateral have lower ROI compared to unsecured loans without collateral.  4. Credit score of the co-borrower If the co-borrower has a low credit score, then the chance of the loan application being rejected or an increased rate of interest becomes high, whereas a good credit score will secure the loan quickly at low interest. Education loan through the EduFund app Edufund is one of the leading apps that helps students with easy education loans. Students can access loans up to an amount of 1 crore to study in either India or a foreign university. The service is free, and there are no hidden charges that can later come to haunt you.  Through the Edufund App, you have direct access to its NBFC partners and banking institutions like Axis Bank, HDFC Bank, MPower Financing, ICICI Bank, etc., so that the loan approval process becomes quick and easy.  The best thing about getting a loan through the app is that collateral is not needed for loan amounts up to INR 75 Lakh. The icing on the cake is that the higher the amount of the loan, the lower the interest rate you have to pay.  The education calculator on the site is a blessing in disguise as it helps to calculate the required sum with some simple steps within a few seconds. Income Tax benefit on education loans Applicants should know that the interest amount and not the principal part that an individual pays on an education loan can be claimed as a deduction under Section 80E of the Income Tax Act of India 1961. The exemption is for a maximum of 8 years or till the date when the interest is paid, whichever is earlier.  Conclusion It is vital to know about the education loan rates in India to make comparisons and understand where to apply and how to get the minimum rate of interest on the loan amount. TALK TO AN EXPERT

Confusion while choosing a career occurs when you lack a clear idea about your options. The resultant stress can add to the clouding of judgment. This can, however, be avoided by conducting thorough self-scrutiny and simultaneously analyzing the current job market.  Choosing a career can seem like a mammoth task. Like all other mammoth tasks, the most efficient way to troubleshoot this is to divide it into smaller tasks. First, make a list of the things you need to consider while choosing a career. Second, prioritize them systematically by lining them up in the correct chronological order. Set short-term goals so that they are easily achievable. Here are some helpful pointers.  Ways you can choose the right career path? 1. Do I have one or more areas of interest? An ideal point to start is to consider your area of interest. This also means self-analyzing and deciding how interest-driven you are in life and at work. Choosing a career can befuddle you if you are not sure of yourself. If you have more than one area of interest, note them down serially. Not every interest can be monetized. Once you have all of them listed you can decide which would be ideal as a foundation for your career. A coach would be very helpful to help you gain clarity. 2. What are my skills & capabilities?  Skills are one of the most important factors when it comes to vocation. Being aware of what your capabilities are will make you not only confident about yourself but also offer clarity over what skills could be developed to become a better competitor in the job market.  It is also necessary to be well aware of your skills so that you can list them down in your curriculum vitae that are necessary for your job profile alongside your portfolio. Remember, not having a skill is not an obstacle. As long as you know about it, you can always train yourself to be better.  3. What is my level of education?  Education is another founding factor when it comes to career selection. This is why it is so important to think about future job options even while pursuing an academic course. Journeys are made purposeful by setting a destination. Similarly, your educational endeavor can be a rewarding experience when it has a good career as its destination point. A good career is also what makes the allocation of funds towards education fruitful because you have an estimate of the returns. Nevertheless, do not worry if you are way past your educational life and looking for jobs presently. All you need to do is consider what your level of education is and how it can help you land a good job.  4. What are my principles/work ethics?  Your values, principles, and work ethics are what make you exclusive and irreplaceable as an employee. Among other things, it takes into account your approach towards work- if you function well in stressful situations or are you most efficient in a stress-free environment.  Thus, it is important to check up not only on the work ethics and values of the company you want to work for but also your principles. If these two match, you might have the most wonderful experience of your life. However, if they do not, you might feel stuck in a work environment that does not help you grow as a person.  5. Are there many jobs I can choose from?  Analyzing the job market is one of the most indispensable steps while considering career options. It is advisable to start as early as possible. When you are deciding upon a course to study, keep an eye on the availability of jobs in that field.  Having more options means you can reduce the pressure upon yourself, to begin with. It also implies that once you land a few jobs, your demand as a candidate increases. This might also be reflected as a positive influence on your future salary and enhance your prospects.  6. What are my financial goals?  Goals offer purpose to living. But financial goals are more than that. Other than making you purposeful, it also regulates your monetary habits. As such it is important to set out personal goals judiciously.  Your mindfulness while setting financial goals can come in handy while choosing a career. You might have short-term or long-term goals. Based on that, you can apply for jobs after considering their salary structure and thereby, formulate a plan of action for achieving your dreams. 7. Is my living style compatible with my career option(s)? You can expect life to not remain the same before and after employment. Nevertheless, you might want to consider jobs that are compatible with your current lifestyle. The other option is to be open to changing your lifestyle according to your job requirements.  You can start by asking questions like - Is the job shift manageable or will it be too inconvenient for you? Carefully examine if you are comfortable with the job role. Some jobs require you to travel frequently. In that case, you can ask yourself if you are up for it. FAQs What are the 7 steps to finding the right career path?   Know your area of interest   Assess your skills and capabilities   Quality education   The right principle/ work ethic   Analyse the job market   Set your financial goal   Strike a balance between lifestyle and career option     How do I find my career path? Confusion while choosing a career occurs when you lack a clear idea about your options. Choosing a career can seem like a mammoth task. Like all other mammoth tasks, the most efficient way to troubleshoot this is to divide it into smaller tasks.   First, make a list of the things you need to consider while choosing a career. Second, prioritize them systematically by lining them up in the correct chronological order. Set short-term goals so that they are easily achievable. What are the 4 Ps of choosing a career? There are four significant things that an individual should consider while choosing a career- people, product, purpose, and potential.   What are the 10 steps to the right career path?   Identify your passion   Know your strengths and weakness   Prioritise quality education   Choose a suitable course   Acquire important skills during the internship   Design a winning resume   Do your research before applying for a job   Keep an eye on the job market   Assess your financial goal   Balance your lifestyle and career option   Conclusion In this capitalistic world, work and leisure are often segregated from each other. We tend to forget that enjoying your work can render you stress-free and make life ten times better. Choose a career that, while yielding desired returns, will not hamper your mental peace or restrict personal growth. TALK TO AN EXPERT

Introduction To be able to understand why you need a good credit score to represent you, it can be useful to be aware of the basics first. Once you grasp how credit works, you can not only avail all of the benefits, offers and rewards that come with different credit card transactions but also improve your credit score drastically.  What is credit?  In economics, a debit is a decrease in one’s assets and a credit is an increase in the same. When you get a bank account, a credit would mean an increase in your bank balance while a debit would mean a decrease in your balance.  Debits cause the flowing out of money from one’s expense account due to the costs incurred by the consumption of goods and services. Credit is the opposite. However, credit can become a liability in the case of an unpaid credit bill which is a debt that you must clear within a stipulated amount of time. What is an ideal credit score?  A credit score is a three-digit number that indicates how credit-worthy you have proved yourself to be with your past transactions. This is done by analysing your credit files which show how successful or unsuccessful you have been in clearing your credit bills on time. Thus, it indicates to your potential lenders how capable you are in handling the risk factor involved in borrowing money.  In India, credit scores can range from 300 to 900. Credit bureaus like CIBIL (Credit Information Bureau India Limited) are in charge of evaluating your credit score. You might have a score of about 700 and wonder what it means. Any credit score in the range of 700 - 750 is usually considered a decent one. Likewise, anything above 800 is considered an excellent score. However, credit scores of 650 or less might not be considered strong enough for lenders to approve high-interest loans to you.   How to build a good credit score? To build your credit score from scratch, you can start by applying for a secured credit card scheme. You can also choose the shortcut of building credit faster by becoming an authorised user of someone’s else preexisting account. It is easy to attain an ideal credit score with a few months of consistent credit activity. Once you have indulged in an amount of credit activity that is enough to generate a score, you can then focus on making it better.  The rules are simple - do not borrow more than you can pay back and make it a point to pay all your credit bills on time. Your credit score will get adversely affected if you miss a payment or default on a loan. Also, make sure to settle any pre-existing debts so that it does not prevent you from attaining the desired score.  Another factor that improves your credit score effectively is the diversity of your credit. A credit mix shows that you are equally capable of responsibly handling different kinds of credit, be it mortgages, personal loans or credit card bills.     What are the benefits of maintaining a good credit score?  The benefits of maintaining a favourable credit score are manifold. First and foremost, it creates a favourable impression upon prospective lenders. Building a good score and maintaining it helps you to easily avail future credits and loans. The higher the credit score, the more qualified you are to avail of low-interest loans.  The amount of money you get to borrow, known as the credit limit, also increases with a high credit score since money lenders or banks are thereby satisfied with your capability of paying back the money on time. Sometimes it even allows you to negotiate with lenders on interest rates. With an impressive credit file, you get to reap better rewards and benefits on credit products.  Even for your own financial health, building credit works as a favourable sign. Other than coming in handy while making big investments like getting a car or buying a house, it also implies your adeptness at managing your finances. In fact, car buyers with high credit scores often get better insurance rates than the ones with unsatisfactory scores.     You can also avail of education loans at affordable rates with a good credit score. You can download the EduFund app and apply for an education loan right away! FAQs What is credit? A credit means an increase in your bank balance while a debit would mean a decrease in your balance. What is a credit score? A credit score is assigned to every credit card owner, capable of borrowing money from a financial institute. The score indicates the borrower's potential in terms of trusty worthiness, repayment behaviour and past financial history. For example, you have defaulted on your credit card payments, then you are likely to have a bad credit score. But if you have financial discipline and make routine payments then you will have a good credit score. In India, credit scores can range from 300 to 900. Credit bureaus like CIBIL (Credit Information Bureau India Limited) are in charge of evaluating your credit score. What is a credit score and what is it used for? A credit score is usually a three-digit number to determine your borrowing capability, The lender can decide whether you are credit- worthy for applying for car, home or education loans in the long run. Credit worthiness is extremely important in building trust and showing your lender that you have the means and intent to pay back the borrowed money on time. Conclusion The thumb rule for building the ideal credit score is to borrow only as much as you can repay and to pay your bills timely. It is equally important to maintain that standard once you get to the top and secure it from any kind of deterioration. Knowing the correct ways of achieving these can make you more confident in choosing the right financial goals for yourself. Moreover, the added benefits of having an impressive credit score can work as the right kind of motivation for improving it.  

Ever since the year 2020, the world has moved at a different speed. Due to the pandemic, the world almost came to a standstill. But then it got back on its feet again and started progressing at a faster pace to make up for the lost time. Some of the intrinsic social institutions like health and education have been most influenced by such drastic changes. Certain trends have emerged and solidified in the case of education and these are going to be quite noticeable in 2022.  1. Technology as a factor  First and foremost, after staying cooped up in our rooms for too long, humans were forced to take up interaction with the rest of the world through virtual media. Even kids are being deprived of their basic right to social development in a more open and public atmosphere, as they have to attend online classes.  Although Generation Z is born in the digital era, studies have indicated that such a drastic and paradigmatic change has affected children psychologically. Children staying at home all the time has made work-from-home slightly difficult for adults. Moreover, the added dependency on gadgets to get an education has extended their screen time exponentially.  But this new trend came with a silver lining- it made kids tech-savvy at a very young age. To make up for lost public time and space and to make social distancing bearable, new software applications have been developed. Some of them are devoted to instilling a sense of patience and concentration in kids getting into the new habit of getting a school education from home.  2. Social grooming  Human beings are social animals. Let’s just say, we have learned a new way of being social amidst the norms of isolation and social distancing. Developing soft skills is a major part of the social and cognitive development that kids partly learn from school, and partly at home.  Now the space we call home has to serve as both public and private, figuratively speaking. In a way, the pandemic has turned the world into an even smaller global village. Fortunately, digitization has made it possible to attain the closest experience to real-life socializing. Class presentations are still held for students on virtual platforms. Children can choose to indulge in group study projects through social media apps under their parents’ supervision.  3. Vocational engagements  After a few months into the Coronavirus pandemic, it became clear that time and tide stop for none. Once the governments of various countries started getting some level of control over the situation, the education sector also started reopening avenues virtually.  Soon developers on new virtual platforms realized that this was their chance to take advantage of the study-from-home culture. Courses began getting more and more job-oriented. Even websites known for finding job placements began offering certificate courses that would make one more eligible to apply for a particular vocation in the future. Understandably, a lot of the vocational skills are offered through these courses that last for a shorter duration. They are meant to prepare the new generation for work-from-home jobs since the pandemic has changed some things in a near-permanent fashion. 4. Going beyond the syllabus Another very popular trend that has emerged amid the pandemic is students enrolling for different courses from foreign universities. Since traveling across borders has now become more complicated due to COVID, grabbing every opportunity for distance education can be counted as a smart move. The internet has made it possible to introduce new and unconventional courses into the mainstream curriculum. Educators can now virtually assess and discuss the progress of a student with their parents. Students can also resort to technological aids for self-assessment, through data algorithms which means that the process is more objective and self-sufficient. This can, in turn, provide a self of self and purpose. It can drive kids to learn and develop skill sets that go beyond the prescribed syllabus.  5. Studying abroad is still as desirable as ever The idea of studying from anywhere virtually is taking hold but data suggests that college enrolments abroad have only increased in the past year. The reason is perhaps that a college education doesn't only include the syllabus but also the community, lifestyle, and campus life that all add up to overall personality development. Studying abroad remains as desirable as ever for Indian students wanting to get the best higher education. FAQs What are the new trends in education? The new trends in education include increased of technology, higher number of online classes, reliance of education-technology to teach in classrooms and going beyond the usage of books and reading material. What are the trends in Indian education? The growing trends in Indian education: Gamification Introduction of soft skills and hard skills Use of technology in classrooms What is the importance of trends in education? New and improved trends in education are important to deal with the changing world. For instance, the introduction of online classes helped thousands of schools and parents cope with the changing world. It allowed students to continue their education unhindered. Conclusion An optimistic way of looking at the changing trends in higher education in 2022 is acknowledging the fact that digitization has acted as a catalyst in changing the face of academia itself. The pandemic has wreaked much havoc but it has also prepared us for a brave new world.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Goals that individuals plan for themselves before marriage can vary from person to person. Sometimes the goal is to have a fit body that looks amazing in a wedding dress and at other times, the goals are more long term like buying a house of their own or a car.  Marriage is a big event in anybody’s life and it is normal to divide your goals into pre and post-marriage. However, it is not enough to just have goals. You should plan out how you are going to lead your life post-wedding to achieve these goals While money is not the only important factor in a marriage, setting concrete and judicious financial goals becomes crucial to leading a happy married life.  Below is a list of things that you can do as a married person to lead a better financial life after marriage. 1. Open a separate bank account You might already have a joint account with your spouse but that is not enough. It is always advisable to get another bank account that will be solely devoted to your monetary expenses as an individual. Having a bank account exclusively for this purpose serves many purposes other than keeping you from mixing up your finances.  It might bear witness to how independent and responsible you and your partner are. Offering each other time and space can be as important as contributing to your relationship, financial or otherwise. In the long run, it bears testimony to how invested you are in your marriage.  Moreover, being in a marriage does not have to mean that you don’t have any personal goals anymore. These individual goals can be for yourself, your parents, your child, and so on. Having a separate bank account will also prove how invested you are in yourself despite being married.  2. Talk about finances  It goes without saying that in any relationship, communication is key. In a marriage, too, it is important to keep your partner in the loop, as you have decided to live your life together. Among other things that partners should talk about, money is one of the most significant. Being actively involved in marriage also means that partners should stay aware of each other’s monetary difficulties like debts. If your partner is trying hard to pay off debts, home loans, education loans, and the like, it should be a priority to help them overcome it. Romantic gestures need not just be about taking your partner out on dates or handing them a bunch of flowers. Being the person they can depend on in times of adversity can strengthen your bond tenfold.  3. Make a priority list  One of the most important steps in navigating finances is to make lists that state your financial priorities in order. Sit down with your partner and discuss at length if rent should come first or debts, or retirement savings.  Financial planning takes into account things like emergency funds and the first step to start planning these is to place them on your priority list. Ideally, emergency funds should come before investment plans. You should also start clearing up your debts as soon as you can. This way your EMI money will be ready to be spent whenever you need it.  4. Get started with budgeting immediately  Budgeting is indispensable if you are looking to manage your finances effectively. In marriage, you need to go about every step of budgeting along with your partner as you are managing a household together. Budgeting includes your daily expenses and putting away a part of your income as savings every month.  Planning is key, be it for expected or unexpected expenses. Put aside money on regular intervals for expenses you are expecting - those can be a phone or car upgrades or even getting a new house. For unexpected expenses, save money every month as part of an emergency fund. Be in constant touch with your partner about their financial goals so that you can find out how to be compatible.    Surveys often indicate that couples might face stress in their married lives over their unregulated spending habits. Creating separate buckets of savings for different expenses is the healthiest and most systematic way of budgeting. It saves you and your partner the extra tension and ensures happy married life.  FAQs How finances are best handled in marriage? The best way to handle finances is to have an open discussion around money and expenses. Talk about the shared expenses and individual expenses. Whether you have dependents like children, siblings and parents? Try to have two separate accounts for personal expense and a joint account for shared expenses. Plan and save for major events like raising a child, their education, buying a house and trip. What is the best way to budget in a marriage? The right way to budget in a marriage is to discuss the income resources and expenses with each other. Divide the expenses, find out how much you and your partner can contribute and follow the 50-30- 20 rule. Herein you can dedicate 50% of your shared income towards household needs, 30% towards wants and 20% towards savings. Who should be in charge of the finances in a marriage? Both partners should be equally in-charge and responsible for finances in a marriage. Its important to budget, save and investment as partners and discuss the well of contribution towards shared expenses openly. Conclusion Managing finances together with your spouse might not always be easy because as individuals you might have different monetary goals and spending habits. Nevertheless, keeping judgments at bay and instead, helping each other overcome their unhealthy lifestyles and financial adversities can go a long way in securing your marriage.  You can start your investment journey right away with your partner by downloading the EduFund app. Consult an expert advisor to get the right plan TALK TO AN EXPERT