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What are the types of investment available in India

What are the types of investment available in India

Allocating funds to assets to improve your future is known as investing. Investments are undertaken to produce returns, which increase the initial amount invested. Top 7 types of investment options available in India There are many different investment options available to you. However, you must be sure that you are only investing in options that match your risk tolerance and fulfill your needs. 1. Direct Equity The most successful investment vehicle is probably direct equity, sometimes known as stock investing. Purchasing stock in a firm entitles you to a part of that business. The expansion and improvement of the business are directly financed by you. To profit from your investment, you must have enough time and market understanding. Stocks are made available by publicly traded firms through recognized stock exchanges. The best investments for the long run are stocks. Due to the impact of various economic and commercial factors on equities, you must actively manage your investments. Additionally, you must be aware that the returns are not ensured and be prepared to accept the risks involved. Benefits and Types of Equity Mutual Funds Read More 2. Mutual Funds The last few decades have seen the development of mutual funds. A mutual fund pools investments from different institutional and individual participants who share the same investment goal. A financial expert known as the fund manager oversees the pooled funds and makes investments in securities and other assets to maximize returns for investors. Equity, debt, and hybrid funds are the three main categories of mutual funds. Debt mutual funds invest in bonds and papers, whereas equity mutual funds invest in stocks and instruments relating to the stock market. Equities and debt instruments are both invested in by hybrid funds. Mutual funds are adjustable investment products that allow you to start and stop investing whenever you like. Since the fund manager takes care of everything, investing in mutual funds doesn't require much time or expertise. To invest in mutual funds, all you need to do is invest and the fund manager will take care of the portfolio construction. However, it is advised to only invest in funds whose risk profiles and goals align with your own. Returns are not guaranteed because they are based on market fluctuations. Please take note that a fund's previous performance does not guarantee future results. Start Investing in Mutual Funds 3. Recurring Deposits Recurring Deposit (RD) enables investors to make a fixed monthly investment and receive a fixed rate of interest. RDs are available through bank and post office branches. An RD enables investors to make small monthly investments to build capital over a predetermined time. RDs provide total capital protection in addition to returns that are ensured. 4. Fixed Deposits FDs are a type of investment that banks and other financial institutions offer. You deposit a sum of money for a set period and receive a fixed rate of interest. Fixed deposits, as opposed to mutual funds and stocks, provide total capital protection and guaranteed returns. However, since the returns stay the same, you make a compromise. The interest rate on fixed deposits varies based on the state of the economy and is set by the banks per the RBI's policy review decisions. Although fixed deposits are traditionally locked-in investments, investors are frequently permitted to use them as collateral for loans or overdraft facilities. There is also a fixed deposit with tax benefits that has a 5-year lock-in. 5. Employee Provident Fund One of the retirement-focused investment vehicles is the EPF, which enables salaried people to benefit from a tax credit under Section 80C of the Income Tax Act of 1961. EPF deductions are normally made as a percentage of an employee's monthly pay, and the employer also contributes an equal amount. The EPF withdrawal corpus is completely tax-free once it matures. Each quarter, the Indian government also sets the EPF rates and offers a guarantee on your EPF deposits. You should be aware that your EPF account matures only after you reach retirement and that you may only access your assets in the EPF if you meet certain requirements. 6. Public Provident Fund PPF is a 15-year lock-in investment vehicle that offers long-term tax savings. The Indian government is the one who is offering it, and the government guarantees back your money. The Indian government reviews the PPF interest rate every three months. After 15 years, the investor can withdraw the full corpus completely tax-free. PPF permits partial withdrawals and loans as well, provided a few requirements are satisfied. If certain requirements are met, premature withdrawals are allowed, and when your investment reaches maturity, you can prolong it for an additional 5 years. 7. National Pension System A relatively recent investment option for reducing taxes is the National Pension System (NPS). Investors who subscribe to the NPS plan must remain locked in until retirement and can expect larger returns than those from PPF or EPF. This is so because the NPS provides plan options that also invest in stocks. A portion of the NPS maturity corpus, which is not tax-free, must be used to buy an annuity that will provide the investor with a regular pension. Only 40% of the total accumulated corpus may be withdrawn as a lump sum; the remainder is invested in an annuity plan. There are some government personnel who must subscribe to NPS. Conclusion You should carefully select investments after conducting a thorough study. Avoid falling into schemes that promise big profits quickly, and always periodically evaluate your mutual fund and stock investments. Take into account the tax consequences of the investment returns you receive. Maintain simplicity and stay away from complex assets that you are unfamiliar with. If you have any questions or need any advice, our team of expert financial advisors is always available to you. TALK TO AN EXPERT
How you need to save to send your child to King’s College London

How you need to save to send your child to King’s College London

Kings College London is one of the most reputed colleges in the whole world. The cost of attendance varies significantly based on your child’s course and can go up to 48 - 50 lakhs in total. Let’s find out how you need to save to send your child to King’s College London.   Tuition fees for courses in King's College, London  The tuition fees for the courses offered at Kings College London are quite high compared to the adjacent colleges. Let’s look at some of the popular courses chosen by students and their corresponding tuition fees.  MBBS: Rs 41 to Rs 43 lakhs per annum  MIM: Rs 23 Rs 36 lakhs per annum  BE: Rs 27 to Rs 29 lakhs per annum  MA: Rs 19 to Rs 28 lakhs per annum  BBA: Rs 21 to Rs 28 lakhs per annum  With the data mentioned above, we can conclude that getting a degree from Kings College London can be heavy on your pocket. Hence, if you would want your child to get admission here, you must start preparing for it early on.  Saving and Investment Options for a Child’s College Education  1. Find out the Cost of Attendance  Suppose you want to buy a house in 10 years, what is the first thing you do? You will find the house you like and the cost of buying it. Similarly, before you start saving to send your child to King’s College London, you need to figure out what will be the cost of attendance in the next 10 years of your child’s course and figure out the solution.   You can look at the past and data to estimate the average tuition fees or simply use the College Cost Calculator to find out how much you need to save after putting in just a few details. The calculator tells you precisely how much it can cost to send your child to a college anywhere in the world.   On average, it costs Rs. 48-50 lakhs to study master's while the cost of attendance for a bachelor is Rs.70-80 lakhs in total.   2. Mutual Funds  Mutual funds are considered to be one of the best options to invest in if you have a child who is still quite young.  You can start a SIP for Rs. 1000 or more and scale your child’s education fund by the time they are ready to fly off to college. Mutual funds offer professional investment management, diversification, and liquidity. At a nominal price, you get access to different industries, companies as well as different markets. Always check with a professional financial advisor before pooling your money in any investments and read the fine print to stay updated.   Start Investing in Mutual Funds 3. Public Provident Fund  Public Provident Fund is a tried and tested way to save to send your child to Kings College London. PPF is one of the most reliable savings schemes opted for by parents for their child’s education. This scheme requires a 15-year-long commitment for the corpus. As of now, the interest rate offered here is 7.1% which is more than what is offered by banks. Presently, banks offer an interest rate of around 5% per annum. Parents can choose to increase the tenure of investment in blocks of five years. After the extension of the PPF account, the subscriber is allowed to make one partial withdrawal every year. However, a restriction is imposed here which says that the total withdrawals during those particular five years should not be more than 60% of the total account balance.  4. Gold Savings  Gold savings is one such option that has existed for so long now. Gold is said to have an ever-increasing value. While investing in gold savings, you should make sure that you do not invest in physical gold. As a parent, it would be best if you invest in Gold ETFs and Digital Gold.   You can follow a strategy where you can buy a small amount of gold every month. Once you have collected enough, you can build up a sizeable one with those small amounts. It has been observed that investing in gold has provided much better returns when compared to other assets.   Gold is a hedge against inflation and works with it. In times when the prices of all goods rise due to high inflation, gold also rises, making your investments diversified and inflation-proof!   Additional read: Why should you consider the UK for your child's higher education? 5. US Stocks  Investing in US stocks to send your child to King’s College London is an underutilized tool! Saving in dollars has dual benefits, you not only benefit from your initial investment as the US market grows but also when the rupee falls against the dollar. Investing in US stocks also increases your purchasing power abroad, it helps you tackle the increasing costs and not lose out more money in currency exchange.    Start Investing in US Market 6. Unit Linked Insurance Plan  The Unit Linked Insurance Plan is said to be the best fit for individuals who are looking for both investment returns and insurance protection. It has been observed that ULIPs have been able to provide better returns than many traditional investment options. It helps to beat education inflation and save up effectively for your child’s college education. In this scenario, the chance of getting better returns is higher because a portion of the premium that is being paid is invested in the funds operated in the capital market.   These are some ways to save to send your child to King’s College London. TALK TO AN EXPERT
What are offshore funds? Advantages and Disadvantages

What are offshore funds? Advantages and Disadvantages

The simplest and straightforward answer to that question would be that offshore Funds are open-ended investment schemes that invest in mutual funds, stocks, real estate assets, equities, fixed-income securities, etc. in the overseas market.  Understanding Offshore funds Offshore funds are often referred to as international funds or foreign funds as they are based on offshore locations and have non-residents as investors. These types of funds provide investment exposure to global markets but they have to comply with the rules and regulations of that country. In India, both Indian residents and NRIs can invest in offshore funds either directly or through other funds under the purview of SEBI and RBI guidelines. The fund house has to comply with the set provisions and guidelines of the foreign country where they are registered. The Indian resident can invest only in Indian currency just like any other investment scheme.  You can: Select the offshore fund, Write a cheque for the amount due, Submit the cheque along with the application form to the fund house or online app you are applying through. Types of Offshore Funds “What are offshore funds?” is one of the most common queries of investors. In simple terms, it refers to investments that exist and operate abroad.  The different types of offshore fund schemes are -  Theme-based (real estate, power, energy, agriculture, etc.)  Region-specific (Asia, Europe, etc.), and  Country-specific funds (USA, India, UK, Australia etc.). Additional read: What are international funds? Advantages of Investing in Offshore Funds Investors can diversify their funds across geographical boundaries and choose the best available location for investing purposes. It is a golden opportunity to invest in global brands and business houses. The exchange rate difference will yield higher returns. Sometimes, the home economy is not so great but another country might be facing an economic boom. Investing in offshore funds will garner higher returns on investments at such times. Offshore funds are globally incorporated with lower regulation levels. As the income is tax-free it is profitable to reinvest the investment gains.  The operating costs and management fees associated with offshore funds are comparatively lower and financially beneficial. Offshore funds can safeguard the capital from the burden of high taxes in the home country Disadvantages of Investing in Offshore Funds Offshore funds require higher investments, which every investor cannot afford. If the offshore currency is facing a downward trend then it will lead to lower returns. The risk factor associated is greater compared to domestic investments. Investors have to trust the foreign fund houses to explain the terms and conditions. In case of any discrepancy or fraud, it can result in a loss of capital. Tax laws, economic policies, and market fluctuations of both the home country and the foreign country will harm the returns. Things to consider before investing in Offshore funds Research the economic and political conditions of the foreign country where you want to invest. Start with a small investment and gradually increase the investment.  Opt for financially stable investment funds at the onset. Check the fund's reputation, the background of the fund house, and historical returns thoroughly. Choose funds that will help to cash in global opportunities. Consider the currency risk while dealing with international funds. Any currency fluctuation will impact the Net Asset Value of the fund directly because if the value of the rupee depreciates against the dollar NAV will be higher and in case it appreciates earnings will become less. Invest in developed and emerging markets only. Choose long-term investment as it is considered best for minimizing the impact of inflation. Foreign funds are treated under debt thus taxes are levied as per the tax rules in the home country. In India, residents have to pay tax on overall income even if it was generated in a foreign country.  Invest in funds with utmost security and transparency in the transaction process. Challenges associated with Offshore funds in India The RBI and SEBI guidelines do not allow fund managers based in India to manage offshore funds. The investment inflows to India are now managed by offshore authorities and this poses a serious challenge to the growth of offshore funds in India. According to new guidelines REITs and AIFs are allowed to receive investments from foreign investors.  Conclusion By now the concept of what are offshore funds will be clear and you must have realized that these funds follow a different path in terms of rules and regulations compared to the standard investment journey.  It is imperative to sound a word of caution for investors of offshore funds as these are prone to fraud and high risk quite often because of relaxed regulations. Beware and take the help of reputed platforms like EduFund App which will act as a guiding tool in securing safe transactions in overseas markets. TALK TO AN EXPERT
How to manage the rising school fees for your child?

How to manage the rising school fees for your child?

Every year schools increase their annual fees in India. The increase in response to the rising cost of all goods and services (that is the result of education inflation!). It’s tough to keep up with these costs, especially in a competitive world where your child deserves all the advantages they can amass. Since education is unavoidable and an integral aspect of a child’s development, here are some tips to save for your child’s school fees: 1. Cut costs and budget Cost cutting and budgeting is the first step to saving. Create a monthly budget, and find out how much you need to cover your major expenses like rent, utilities, emails, travel, and food. Once you know where your money is going, you will be able to control your expenses and figure out the areas where you overspend and where you can cut costs! Removing small expenses from your budget can make a huge difference in your overall budget. Cost of School Education in India Read More 2. Government schemes and scholarships Another way to deal with the rising school fees is to make use of government scholarships and schemes. Schemes like the PM Young Achievers Scholarship Award Scheme (Yasasvi), Beti Bachao Beti Padhao schemes, and Girls Hostel Scheme for available for young children and encourage them to access quality education. There are other schemes like sibling discounts that private schools may offer if you enroll more than one child at their schools, this can either be in the form of fee waivers or concessions. Apply for Scholarships 3. Passive income Creating passive income is a great way to save up for your child’s school fees. Passive incomes can help you take care of small and big expenses Some quick ways to generate a passive income stream is by renting a spare room, apartment floor, or your car. Take up consultancy jobs or freelancing to create a secondary income that can over time become a passive income for you and your family. 4. Stocks: Indian and US Investing is another option for parents whose children are in school. Investing in stocks can help you expand your savings and beat inflation. Investing in us stocks offers even more benefits – it is an opportunity to invest in big companies with global reach and get returns in dollars. Stocks are risky instruments and the potential to gain is as high as loss – understand the risk and consult professionals before investing your life savings. Invest in US Market 5. Mutual funds Mutual funds are a great way to save up for the future education is a definite event and you need to save for a child’s fees. Mutual funds offer great returns and are highly liquid-able which means you can withdraw your money whenever you want but be aware of the exit fees that may be charged on premature exit. Consult a professional to find out the best mutual funds, and explain your time horizon, risk appetite, and how much you can spare monthly. Once you know these answers, you can invest in the funds based on your financial goals! Start Investing in Mutual Funds 6. Public provident funds It's always good to balance your portfolio. If you are investing in risky instruments then consider tools like PPF, FDs, or RDs to save up some school fees or other expenses. You can use the interest generated on these instruments to pay for certain expenses. These are risk-free investments with fixed interest rates which makes them ideal for long-term risk-averse individuals! To avoid financial worries later, start saving sooner! Connect with the best advisors from EduFund to make saving and investing easier for your child’s higher education. FAQs How to save for your kid's school fees? There are many ways to save for your kid's school fees. Some of them are investing for your child's education expenses, you can use mutual funds, US stocks, and Indian stocks, and even opt for FDs and PPF schemes. Another is to look for schemes and scholarships that can help you reduce the cost of studying at schools and colleges. Why are school fees increasing rapidly? The reason why school fees are rising is due to education inflation, privatization, lack of government control, demand for private schools, and high competition. As Ashneer Grover said the demand for coveted schools is higher than the current supply which gives existing schools an advantage in terms of raising their fees and demanding high annual tuition every year. What is the best way to save for your child's school? The best way is to start a SIP in a mutual fund that can help you manage the costs of your child's education. EduFund offers class-wise buckets for saving for school fees. So if your child is in 5th grade and you want to invest then you can choose the 5th grade investment bucket designed by experts and start saving.
Grants vs Scholarships

Grants vs Scholarships

People often consider grants and scholarships as synonyms because both provide financial aid. They help students to pursue their studies without the hassle of paying fees.   But there is a thin line that distinguishes grants and scholarships. A scholarship is only awarded to students, whereas grants are given to students, professionals, or research scientists. Both scholarships and grants are not student loans and do not have to be paid back in ordinary circumstances. Instead, these are financial help that encourages people to reduce debt, minimize work problems, promote research, and realize their dreams without any financial burden. Although both come under monetary help and are equally popular, it becomes crucial to have in-depth knowledge about them.  Grants vs Scholarships A grant is a financial award from a government, foundation, or company to another company or an individual for a specific goal or to encourage better performance. Scholarships are also defined as financial awards, but an organization offers government or a college/university only to students to pay for their degree courses as tuition and related fees. Need vs Merit Grants are need-based as they are awarded to deserving people who do not have the funds to fulfill their purpose. Scholarships are merit-based and need-based and go to students who cannot continue their studies because they lack adequate funds and have shown exceptional excellence or outstanding performance in their fields. 1. Purpose The purpose of grants and scholarships is different as the former is to fulfill a specific purpose which can be educational, research, or even to start a business. In contrast, the latter is meant only for educational purposes and is given to students who excel in sports, academics, or extracurricular activities. 2. Recipients  The grants and scholarships differ from each other as grants can be conferred to any individual, entity, non-profit organization, educational institution, or organization working towards a specific purpose. Scholarships are given only to students for excellence in their academic, athletic, or artistic abilities. 3. Source of funding The source of funding for grants and scholarships is both similar and different. Grants funding can be derived from non-profit organizations, colleges, and state governments. Scholarship funding is derived from various organizations and institutions. 4. Performance Grants and scholarships share a level of similarity. They require their recipients to live up to a certain standard, but the level of performance may vary. Grants are not purely based on performance, while scholarships depend on performance. Most scholarships may be withdrawn if students fail to keep up their academic performance. Depending on the type of scholarship, every student must participate and maintain a level of excellence.   5. Eligibility  Grant eligibility is based on financial need, whereas scholarship is flexible. It can be need-based, merit-based, or given to a specific community. Eligibility for a grant like the Federal Pell Grant is based on EFC, whereas the New York TAP Grants and Cal Grants establish their eligibility on income cutoff. The eligibility for scholarships is dependent upon a student’s GPA or high school grade point average, class rank, and test scores from the admission tests. Requirements and Restrictions The specific requirements and restrictions between scholarships and grants vary greatly as eligibility to receive grants ranges from one grant program to another. Some scholarships have maintenance and eligibility requirements and conditions similar to the grants, whereas others might require maintaining a minimum GPA to renew their scholarships. Both grants and scholarships are good options for people requiring financial assistance. If your child is going to pursue research-driven courses like a Ph., then grants can be beneficial, while for a master's, they can opt for scholarships. Start preparing your child for their dreams, financially and academically!  TALK TO AN EXPERT
Why is it important to save for child's education?

Why is it important to save for child's education?

Parents’ finances and budgets have a major impact on children’s lives. Most of the time, it is usually the father who is the earning member of the family. But times are changing, women are becoming financially independent and the acceptance of working parents in India is growing. Just as a double income can help with financial woes, double savings can fund your child’s education.   Importance of saving for child education Bigger fund: If both parents decide to save for their child’s education, it means greater savings and a bigger fund.   Reduces stress: It also helps divide the pressure of saving and investing; it ensures both parents are equally responsible for funding their child’s future.   Diversified savings: It helps with diversifying your returns and investments- both parents can invest in a number of instruments of their choice like Mutual Funds, ETFs, FDs, or Gold. This is a sure-shot way to ensure greater returns.  Stability: In uncertain times, there is a possibility that you may lose your job and have to place a pause on the education fund – the separate education fund handled by your partner can act as the safety net your child may need in the future.   A survey by Catalyst conducted in 2020 says that in most married-couple households, 59.8% of the parents are employed where both of them are working. This data proves that more than half of India’s population has both parents working. This is an added advantage for the child because the parents will have more money to put into different savings and investment plans.   Start Investing in US Market How to save for your child’s education?  Child education planning is extremely important; the question of how much to save depends on a child’s preferences. The education fund amount will differ based on the course they want. If parents start the investing plan early enough, the built-up corpus can be utilized exclusively for higher education.   If your child is quite young, it is better to invest in mutual funds. Since you and your spouse will be retiring in the next 15 to 18 years. It will help you to counter crashes and volatility that can come up. It has been seen that education costs are on a growth trajectory. This will continue to rise with the increase in education inflation.   The tuition fees of colleges are on the rise and hence, students are bound to borrow loans from banks. It creates financial pressure on the student and their family as well. To avoid loans, there are many plans to save or invest in your child’s education.  1. PPF  Public Provident Fund is one major investment option preferred by many parents because it is authentic. Although the interest rates have decreased in recent years, parents can go for this option because of the security it offers. The amount that is invested gets matured in 15 years so it is best to start early. If both parents are working, they can save for their child separately to get greater returns.  2. Gold ETF  Gold is yet another option that you can go for. Most of the time, the disadvantage of gold in physical form is that you might not get a proper value for the same. Also, you will have to pay extra money to keep it safe in the locker. The value of gold is always on the rise so it is a good option to go for. In this case, as well, both parents can go for the gold savings option so that you can better return.   3. Mutual Funds  Mutual funds are perfect for those parents whose child is still young. These are risky instruments but can be beneficial in the long run. Once you know how much you need to save using our College Cost Calculator, you can choose the recommended funds or opt for funds you believe in – to achieve your goal!   How to set a goal amount for higher education?  Parents often have this question in mind regarding the approximate amount that they need to save for their children’s education. The perfect way to get through this question is to account for the best opportunities that are available in your country. It involves tuition fees, living expenses, miscellaneous, and so on.   Lesser financial burdens, better returns, and a bigger fund are possible if both parents decide to save for their child’s education. It’s not necessary that both parents have to be working, you can start an SIP for Rs. 1000 and save up to lakhs in 12-13 years with the power of compounding.  Create Goals for Child Education
How to find the best country for your child's higher education?

How to find the best country for your child's higher education?

Selecting the best country for higher education may seem easy until you actually start researching. The idea of studying abroad can be fascinating but it comes with its own challenges. As per data from the Bureau of Immigration, 4 out of every 44,553 students in 2021 went abroad to pursue higher studies. And, with the plethora of study options opening up, students are spoilt for choice.  As a responsible parent, you would want to get the best country for your child's higher education. Now the big question is, “How to find that best country?”  Here is a list of some top parameters that you must consider in your search for the top country for your child’s higher education. Best country for child's higher education 1. Significance of a cost-benefit analysis Money is always an important parameter when it comes to higher education. And when you are sending your child abroad for higher studies, you’ll need lots of funds. You want to get the best possible advantage of every penny you spend. Furthermore, it is essential to look at the long-term return on every investment you make. Here are some questions that would help you with a cost-benefit analysis. What kind of career path does your child wish to pursue? Which countries have greater employment scope? What are the tuition fees and living costs in the foreign country where your child will study? As a parent, it is also necessary to consider what kind of loan you can apply for. Take into account visa costs, medical fees, etc., while sending your child abroad. 2. Affordability of the foreign country We all know that studying abroad can be expensive. But as a parent, you have to consider other big expenses too. Here are certain expenses you should take into account.  Accommodation  Food and utility costs  Shifting costs  Transportation charges  If your child is meritorious, then they will get scholarships that will fund the college tuition fees. However, still you have to manage other costs of their education. Hence, smart investments are the best way to plan your child’s higher education abroad. Additional read: Tata Digital India fund 3. Check university affiliations and recognition Higher education is a huge marketplace with thousands of universities but not all universities are recognized by local and government bodies. Always check the university before your child starts applying. Suppose, your child is applying to Canada then you can check the Designated Learning Institutions list provided by the Canadian government website and see if the university is listed there. The list also includes a list of colleges and courses eligible for the Post-Graduation Work Permit Program. The Department of Education in many foreign countries periodically publishes a list of accredited universities and colleges. You should ensure that your child seeks admission to accredited foreign universities only. 4. Try to go for a tried and tested foreign country There are various perks of sending your child to a tried and tested country for higher studies. The perks are multifold as your child will feel comfortable in the community of Indian students. It would be easier for your child to adapt to a familiar environment.  Moreover, in a tried and tested country, it becomes easy to plan and manage education well. Therefore, the employment opportunities for your kid increase once they graduate from college.  Your child will have a database of friendly folk and referrals that can help them in hard times. The immigration authorities and the admissions office of the college or university will be accustomed to your country’s cultural uniqueness. That’s why sending your child to a tried and tested country always exudes practicality. 5. Review the economic and political climate of the foreign country Nowadays, economic and political climate are the main parameters for selecting an appropriate foreign country for your child’s higher education. Even in developed nations across the world, education inflation is pretty much present.  The political climate of the country should be sound so that students can easily concentrate on their studies. For instance, during the first two months of the pandemic, the Trump administration tightened regulations for international students seeking employment in the USA. The event made it harder for Indian students to get jobs after studying for years in the country. Additional read: Tata balanced Advantage fund 6. Importance of a community Traveling to another country for education can be a bit terrifying for your child at the beginning. Culture shock can be hard on some children, they may find it hard to adjust to new situations and the independence that comes with studying abroad. There are many ways to make your child feel at home, you can opt for homestays or assign local guardians or relatives for your child’s care. Universities play a significant role in creating a holistic community for international students by organizing cultural events and sessions where students can get to know each other. For instance, top universities in the USA, UK, and Canada celebrate popular Hindu festivals like Diwali and Holi. While universities in Russia serve Indian food in their canteen to help students acclimatize to the space. Always search for countries, universities, and campuses that can help your child adjust nicely. These are some parameters that can help you find the best country for your child’s higher education in no time! Want to send your child to a foreign country but are worried about the cost? Then start saving and investing early to send your child with us!
Is SIP a good way to save for your child’s college?

Is SIP a good way to save for your child’s college?

Introduction The rising cost of education is a cause of concern for parents as everyone can't afford the hefty fee structure.  Parents should look to start saving for their child’s education, especially for college and higher studies from an early age. It helps to lower the monetary burden considerably. Education fees are like any other necessary expenses that last for a considerable time, hence, parents have to prepare for them with a proper plan. College education expenses are going to be massive and the sooner a parent starts planning, saving, and investing the chance of a better future becomes more feasible. One of the best ways to do so is through regular SIPs as it will help reduce any monetary hassles during college. What is a SIP? SIP or the Systematic Investment Plan refers to the investment tool associated with various mutual funds. SIP allows investors to invest money periodically for a long period.  Additional read: How SIP Calculator Works? What should parents do for their child’s college? Parents can explore the SIP option as it is a tried and tested method of saving for a child’s college. Financial independence will help your child to get a college education without the hassle of arranging for appropriate funds. Research the funds that are performing well for a longer time and shortlist the names that show good potential. It is important to start investing in SIP as early as possible as it will give you a longer window to save more. When parents start investing early then they have a long time in hand. For example, if Mr. Sharma has been investing in his child's education for 10 years then his investment amount will be lower with greater returns as compared to Mr. Pascal who may have invested for only six years. A more extended period means less investment and more returns. Create a rough layout of the child’s future regarding education, especially college fees as it is very expensive. Invest in mutual funds that have a diversified portfolio to reduce the risk of losing money all at once. Take the help of experts in the EduFund App to make wiser and safer investment decisions.  Consider the additional expenses the child will need besides the tuition fees and save accordingly. Tax-saving benefits are attached to several mutual fund schemes that can help parents save a considerable amount through tax exemptions. Why is SIP beneficial for saving for your child’s college and future? SIPs are based on the compounding theory and prove more advantageous at the end of a specific period. The interest rates are calculated and added based on compound interest which brings forth a better investment return than simple interest.  SIPs help parents become disciplined and regular investors who are fully involved in their child’s future. In this era, where everyone is so busy, SIPs are very easy to handle. Investors are allotted units every month based on the NAV at the time of their SIP. The amount is automatically deducted from the account of the investor. SIP helps to gain control of the finances as it is possible to start or stop a SIP at a time. It helps investors to earn greater returns compared to other investment opportunities like fixed deposits. It is possible to start an SIP investment with as low as INR 100 per month, hence anyone willing to invest in their child’s future can do so easily.  Some SIPs like ELSS funds have tax benefits, hence it is doubly advantageous for the investors to invest in such schemes. Numerous asset management houses offer SIP options to meet even the minimum criteria of an investor. The most important benefit of a SIP for regular investors is that they can buy mutual fund units at different prices. The average investment premium is much lower compared to other investments. Best SIP Mutual Funds to Invest in Read More Conclusion Doesn’t SIP sound like a good investment tool to save for your child’s education? It is one of the best and the most preferred options by parents all over the world.  The Edufund App helps Indian parents plan and save for their children’s education easily and effectively. Parents can calculate the future costs of college and save towards their goals in mutual funds with the help of the SIP Calculator available. The SEBI registered investment advisor also has financial experts to guide parents in choosing suitable savings plans. Investors can choose from 4000+ mutual funds, US stocks, and digital gold, speak to experts, and enjoy tax benefits while saving for their child’s education. TALK TO AN EXPERT
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Hidden costs of sending your child to Australia

Hidden costs of sending your child to Australia

Australia is a well-liked study abroad location since it offers some of the greatest programs and the most prolonged work permit for international students. While tuition fees and cost of living are obvious costs, there is a host of hidden costs of sending your child to Australia that you may have missed. Let’s find out the invisible costs of studying in Australia! https://www.youtube.com/watch?v=MwQWKYxxJ8o Cost of Education in Australia Most of the cost of studying abroad is tuition fees. According to our college cost calculator, the average tuition for an undergraduate degree in Australia ranges from 70 to 96 lakhs. Several factors, such as the chosen subject, degree program, university type, etc., affect the cost of attending an Australian university. Australia is less expensive to study abroad for a bachelor's degree because it provides a range of scholarship options for international students who may have financial difficulties. But there are some hidden costs such as flights, security deposits on a flat, visa applications, mandatory health insurance, and much more that most parents do not account for when budgeting for their child’s bachelor's or master’s in Australia. How to plan a child's bachelor's in Australia? Read More 5 hidden Costs for Indian Students in Australia From visa application fees to mandatory health insurance, flights, and accommodation; there are several invisible costs you have to pay while planning your child’s future education in Australia. While parents focus on tuition fees and general living costs, they often miss out on these expenses! 1. Visa Application Fees Students frequently apply on their own for a Student Subclass 500 visa. This is essential information for students who enroll in undergraduate or graduate programs at an educational institution. A visa application fee for students is approximately ₹34,500. 2. Insurance for health The Department of Immigration and Citizenship has mandated that your child gets an Overseas Student Health Cover (OSHC) as a requirement of their visa application procedure. An individual's annual health insurance premiums typically range between ₹40 - ₹45,000. It is available for private or institutional purchase. One is solely responsible for keeping the policy up to date. 3. College application fee When submitting their application forms, students must pay a non-refundable application fee. The price will change based on the university. The majority of application fees, however, fall between ₹2,700 - ₹5,500. 4. Entrance Exams  Depending on the chosen program's requirements, students must take and pass a few exams if the institute asks for them. ExaminationsExam FeesIELTS₹15,500TOEFL₹14,200GRE₹17,000GMAT₹20,000 5. Flight tickets One-way fare can be around ₹50,000 - ₹1 lakh. Your child must also have the money for a return flight per the rules when applying for an Australian visa. This amount may vary depending on the type of journey taken, the airline chosen, the booking dates, the location from which they’re departing, etc.   Consult an expert advisor to get the right plan TALK TO AN EXPERT
Upcoming career choices for child's future.

Upcoming career choices for child's future.

As per the World Economic Forum, "Analytical and innovation will be the most demanding skill by 2025." Nearly 50% of the millennials would need to upgrade themselves.  While SEO analysts and social Media Marketing managers are slowly vanishing, Artificial Intelligence, Gene Editing, Blockchain, and Cryptocurrency are the talk of the town. These are India's most in-demand career scopes; preparing kids for the future is still challenging. Okay, imagine this ideal scenario - By receiving apt guidance from Edufund, Manoj ensures clarity over the technicalities of a data scientist.  Based on his capabilities and passion, he enrolled in an internship program.  It proves a breakthrough, and he grabs an INR 40 - INR 50 lakh p.a. job offer.  Interesting, right?  This could be your child. But, how? By analyzing their skills and exploring suitable careers for your Child's future. Read the full piece below to know more. 5 most in-demand career choices for your child As per the World Economic Forum, these are the most in-demand skills - Metaverse Specialist  Digital Marketer Process Automation Specialist Blockchain Developer  Cloud Computing Specialist  In collaboration with soft skills like Problem-solving, analytical thinking, and self-management, it creates an all-encompassing spectrum for kids to master. Now, let’s talk about these careers in detail. 1. Metaverse specialist  As a result of the emergence of AR (Augmented Reality) and VR (Virtual Reality), Metaverse offers promising job opportunities such as computational photography, scene reconstruction, visual-inertial odometry, computational imaging, and sensory estimation for children.  Initial Annual Salary - ₹1 - ₹11 LPA (estimate) Skills required C++  Educational requirement Ph.D. in deep learning and computational graphics. 2. Digital marketer As per research by Goldman Sachs, the scope of digital marketing in India is expected to reach 160 billion by 2025, which is thrice its current value. Anyone from any educational background can specialize in digital marketing. It is ideal for students who wish to explore the backstory of online marketing using digital tools and software. Initial Annual Salary: ₹2 - ₹9 LPA Skills required: Creativity, uniqueness, ideation, knowledge of search engine (Google)  Educational requirement: Digital Marketing course from verified government or private university after 12th or graduation. One can also enroll in an MBA in Digital Marketing. Some of the top institutes for the same are Symbiosis, Pune, and NIIT (National Institute of Informational Technology) Additional read: How single parents can plan finances? 3. Process automation specialist Skills like automation and business intelligence are in-demand skills for process automation. Both skills lay their foundation in Artificial Intelligence. It tops the world’s business technology trends list.  The technology helps in transforming business operations and employee experience. The primary responsibilities of a process automation specialist include - reviewing, repairing, and maintaining systems for seamless business operations. Initial Annual Salary:  ₹4 - ₹24 LPA Skills required Knowledge of automation technologies - NET, VBA, Windows, SQL, ability to explain technical things to a non-technical audience. Educational requirements Pursue B. tech in Robotics and Automation, excelling in Physics, Chemistry, and Maths. 4. Blockchain developer  Blockchain developers help design the architecture of blockchain networks used in products. The products include applications and contracts. The person is responsible for maintaining front-end and back-end development, design, and maintenance issues.  Initial Annual Salary: ₹3 - ₹7 LPA Skills required:  Proficiency in C++, Javascript, Python (Anyone) Understanding of blockchain technology Hands over a few tools ( Geth, Solium, BaaS, and Parity) Knowledge of algorithms and data structures Grasp over cryptography and security principles Hyperledger Ripple  Ethereum Educational requirements  A bachelor's degree in Computer Science or Information Technology Understanding of data structures Fun Fact: The industry is growing by 2000% - 3000%, and as Gartner predicts, "the business value of Blockchain Technology will exceed $3 trillion post-2030.” Additional read: What is CAGR in mutual funds? 5. Cloud computing specialist Cloud Computing is a technique of transferring information from computers to a virtual platform - the Cloud.  Cloud Computing Specialists help companies migrate their data to Cloud systems utilizing the best of their knowledge and expertise. The person helps them select apt cloud computing platforms per industrial demands and data.  A cloud computing specialist designs inputs and collaborates with customer services and analysts. She/he helps them configure the cloud system pointing out potential glitches. She/he must be professional enough to weigh down the risks of IT solutions against company requirements.  As per recent stats by Financial Express, “India is to garner over $100 million by cloud computing in 2023. It may create 2.4 lakhs cloud computing jobs by 2023.” It is the most sought-after opportunity for the upcoming generation. Skills required System architectural skills Virtualization of technological skills Strong analytical skills Collaborative skills Annual Salary: ₹6 - ₹27 LPA Educational requirements A bachelor’s degree in Computer Engineering/ Computer Science/ Database Administration, and Software Testing. Conclusion These are some researched-based futuristic career options for your Child. Every Child requires expert guidance at crucial career moments. EduFund helps counsel a child quintessential to her/his interests and helps her/him choose the best. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT
How to send your child to New Zealand debt-free?

How to send your child to New Zealand debt-free?

New Zealand is a popular educational destination for studying a host of subjects from Business and Management to Tourism. As per NZ immigration info, there are over 1 lakh international students studying in New Zealand. Yet, sending your child to a foreign country is not cheap. Here are some tips on how to send your child to New Zealand debt-free. Why choose New Zealand for your child’s higher education?  Top 8 universities rank in World University Ranking Top 500 Affordable cost of studying as compared to the US, Canada, and the UK It hosts a plethora of opportunities for experimental and theoretical learning Around 97% of students get placed right after the degree completion; Students on scholarships may work 20 hours as a part-time Reasons to Study in New Zealand for Child Education Read More How to send your child to New Zealand? 1. Check education eligibility criteria  New Zealand requires Indian students to have the following requirements to study at their top universities:  Relevant 12th certificate / undergraduate degree from a recognized school/ university IELTS/ TOEFL score qualifications Statement of Purpose GRE OR GMAT scores Valid passport Bank statement as proof of financial coverage 2. Apply for Student Visa  International students wishing to study in New Zealand for more than 3 months must hold a relevant VISA. Indian students can opt for Fee Paying Student VISA. Having this VISA, an international Indian Student can learn, stay, and work part-time in the country for up to 4 years. On the flip side, students planning to land with guardians can opt for a generic Student VISA. Students must apply for the VISA 6 months earlier. Student Visa Qualification Requirements Valid passport, which must be valid for at least 6 months Age - 17-25 Student Visa Application Form and Fees ( ₹14,791) Proof of funds to cover your expenses, study, and accommodation costs Acceptance letter from the University, your child enrolled to confirm the eligibility for the particular course  Evidence of guarantor and their relationship to the child Evidence of tuition fee Duly signed and attested certificates for Health and Character IELTS Score Requirement - 6.0 Top Affordable Universities in NewZealand Read More 3. Explore the government-funded scholarships  The primary criterion to qualify for a New Zealand scholarship is MERIT. However, the cost of education depends on the location, course, university, and educational level. Some universities in New Zealand consider extra-curricular activities and volunteering experience as the base for providing scholarships. Always check the eligibility criteria before applying for New Zealand Government Scholarships. Some scholarships waive 100% of the tuition fee while others may waive a part.  Apply for Scholarship with EduFund Government Funded Scholarships:  NZIDRS (New Zealand International Doctoral Research Scholarship) for Ph.D. courses. (₹12,48,178.25) for a living stipend New Zealand Development Scholarships  New Zealand Commonwealth Scholarships for master’s degrees and PhDs (₹1,49,827.16 as Allowance) NZIUFS (New Zealand International Undergraduate Fees Scholarship).  Agatha Harrison Memorial Fellowship i) University-funded scholarships for Indian students Victoria Doctoral Scholarships It is provided to all the Doctorates studying at Victoria University of Wellington ($23000 (₹11,48,827) stipend + Fees)  Bamforth Postgraduate Scholarships Post-graduate students studying at the University of Otago are eligible for the scholarship. It waives tuition fees and provides $13000 (₹6,49,172.68.) University of Waikato International Scholarships The scholarship is for all Undergraduates and Postgraduate Indian Students. It waives off $5000 (₹2,49,704.09) tuition fees. University of Auckland Doctoral Scholarships International Students pursuing a Doctoral in the University of Auckland are eligible for it. Waives off $27,300 ((₹11,48,827) plus other compulsory costs. ii) Studentships provided by New Zealand This funding type is usually provided for a specific project, covering the cost of tuition fees and research material. It also offers stipends to students. Check for the eligibility requirement from the respective university or educational institution. Universities of Auckland, Otago, and Waikato University provide such studentships to Ph.D. students.  These are some ways to help your child study in New Zealand Debt-free. Scholarships are the best way to send your child to a foreign country without any financial stress. If you are someone who is planning to send your child to a foreign country in a few years then investing and saving early for your child’s higher education is a must! TALK TO AN EXPERT
Complete guide: How to plan child's education inflation?

Complete guide: How to plan child's education inflation?

The continuous and sharp rise in the cost of education, whether abroad or in India, is a clear indicator of the requirement to plan financially for your child's higher education. Most parents choose to invest and save for their children's education, but they miss out on beginning early. Hence, it gives rise to inadequate funds. Amidst the inflation bubble, taking care of your child's education cost may be exorbitant Why is starting early essential? The earlier you start investing in your children's education, you will have more time to grow your money; if you consider delaying the investment, the possibility of you not achieving the desired amount increases because of education inflation.   Parents need to start investing in their children's higher education as early as possible. If you start early, it will decrease your monthly investment amount required to accumulate the target. You can also concentrate on other financial goals like home finance, children's marriage, retirement corpus, and more. The importance of securing your child's education amidst inflation Education is one of the primary things that can secure your child's future. It can help them through uncertainty brought by the ever-changing world, including inflation.  Inflation is a factor that devalues the buying power of money. Items essential to you today that you can still afford may get expensive over the years. The quality of living that you wish to provide your child may come with a hefty price tag.  EduFund, the most trusted app by Indian parents to help them plan for their child’s education can help you plan and save for your child’s education.  Additional read: What is the cost of school education in India? How to plan a child's education during inflation? Parents may feel grappled with the idea of rising education costs in India. As a parent, you will likely meet the education expenses by stretching your budget. But, it doesn't end here.  Soon, you will realize that you must plan for your children's higher education well. The tuition fees would be too high amid the education inflation. Check out the tips that can help you invest appropriately to help cover educational expenses.  The education costs in India have been rising in the last two decades. Every institute has hiked its tuition fees. The best thing would be to check the increasing education costs of premier institutes every year. Where should you invest? Rather than investing in traditional investment tools, you may consider investing in investment vehicles that can give you returns that help you reach the required amount to send your child to a quality university. One such investment tool is mutual funds. EduFund app has several investment schemes that suit every Indian parent. Here’s why you could invest in the EduFund app Edufund is one of the best platforms for Indian parents to invest in their child’s education.  Edufund helps you calculate the future cost of college and plan accordingly. A parent can invest in mutual funds, the US market, and digital gold to save for their child’s education. The app has financial experts to help you with investing for your child Conclusion: It is important to plan for your child’s education well in advance. Considering the rise in the cost of education, it is paramount that parents start saving for their children’s education much earlier so they can support their children’s dreams. TALK TO AN EXPERT
Benefits of refinancing an education loan

Benefits of refinancing an education loan

What does refinancing a loan mean?   Refinancing an education loan lets a new lender take over the existing loan and pay out the old lender. The new lender typically offers a lower interest rate on your loan, may offer a refinancing bonus, and provides better pay-back terms and service, making the shift attractive.    Why do students refinance education loans?   Most education loans have a tenure ranging from 5 years to 20 years. During this tenure, the loan rates may change in the market, and the current lender may not pass on the benefits of lower interest rates to the borrowers.    To ensure your education loan has the lowest interest rates, you can monitor the education loan market closely after taking the loan. Even a slight lowering of interest rates can impact the repayment tenure or per month EMI. As your child starts their career and begins to repay the loan, every small amount saved will enable them or them to repay the loan faster.    There are usually three main reasons to refinance an education loan:    To optimize the monthly pay-outs   Lower the interest rate   To change the loan tenure   Additional read: 5 ways to make getting an education loan easier for your child What are the eligibility criteria to refinance an education loan?   To refinance an education loan in India, the student should have taken the loan to pursue graduation or post-graduation degrees from well-known institutes and colleges.      The repayment process of the education loan usually begins once the student has already started earning.   Accordingly, the student should have completed the course and either could have begun the repayment process or be in the process of starting repayment.    The borrower must have a good credit history and score, with financial resources in terms of a regular salary to pay back the EMI month after month. Most lenders will also check on the other debt that the borrower may have.    Dos and don’ts of refinancing an education loan   Apply for Education Loans While refinancing an education loan, ensure you do the following:   Do due diligence before rushing in to shift the loan to a new vendor. In India, refinancing a loan may invite charges from the old and the new lender. The Old Lender typically charges a foreclosure penalty, and the New Lender has processing charges upfront that will add to the overall payout. Before deciding to shift your lender, check on the additional costs that the refinancing will incur.   Monitor the education loan market carefully. Changing rates can impact the total amount payable by you considerably. When you find the market rates dropping, you can speak to your existing lender to refinance your existing loan at the current rate or connect with a new lender for the same.    Opt for a fixed interest rate, and explore the possibility of a student loan refinancing bonus. These amounts can considerably impact young students starting out in their careers.    If your child’s refinancing application has been rejected initially due to low salary / insufficient funds, a promotion or salary increase can make them eligible later. Ensure your child uses these career developments smartly to refinance the education loan.    Instruct your child not to default on the student loan as it impacts the individual’s credit score in the long run. Poor loan repayment habits will affect their chances of getting a refinance and even new loans in the future.    To see how a change in interest rates will affect the monthly pay-out and tenure of your education loan, check out our Loan Calculator. This will help you understand the benefits of having the education loan refinanced.    If your refinance application is rejected for any reason, you will do well to start saving money through our various investment options and build your own corpus to settle the education loan at the earliest. Early loan repayment helps you minimize the interest you are paying and keeps your overall payout under control. TALK TO AN EXPERT
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