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The Indian mutual fund industry has witnessed phenomenal growth in recent years, with a surge in investor participation. According to the Association of Mutual Funds in India (AMFI), the total Assets Under Management (AUM) in the Indian mutual fund industry crossed ₹38.03 lakh crore (US$510.4 billion) as of March 31, 2023.   This growth can be attributed to several factors, including rising disposable incomes, increasing financial literacy, and the long-term wealth creation potential offered by mutual funds.  As this trend continues, a growing number of investors are exploring cost-effective investment options. This is where direct mutual funds come into play. Let's delve into the world of direct mutual funds and understand how Indian investors can benefit from them.  Understanding mutual funds and investment options  Mutual funds are investment vehicles that pool money from many investors and invest it in a diversified basket of securities such as stocks, bonds, or a combination of both.   These funds are professionally managed by experienced fund managers who aim to achieve specific investment objectives based on the chosen fund type.  Types of mutual funds in India  Mutual funds in India are broadly categorized into three main types based on their asset allocation:  Equity Funds: These funds invest primarily in stocks of companies listed on Indian stock exchanges. Equity funds offer high growth potential but also come with higher risk compared to other types.  Debt Funds: These funds invest primarily in fixed-income instruments like government bonds, corporate bonds, and treasury bills. Debt funds offer relatively lower risk and stable returns.  Hybrid Funds: These funds invest in a combination of equity and debt instruments, offering a balance between risk and return potential.  Benefits of investing directly in mutual funds Direct mutual funds eliminate the involvement of brokers, leading to significant cost savings for investors. Here's a breakdown of the key advantages:  Lower Expense Ratio: Traditional broker-assisted investments involve commissions paid to brokers, which are reflected in the expense ratio of the mutual fund scheme. Direct plans eliminate this cost, resulting in a lower expense ratio for the investor. A lower expense ratio directly translates to higher returns over the long term.  Average Expense Ratio of Equity Mutual Funds in India (Regular vs Direct Plans)  Investment Type Expense Ratio (Regular Plan) Expense Ratio (Direct Plan) Expense Ratio Difference Equity Large Cap 1.75% 1.20% 0.55% Equity Mid Cap 2.00% 1.45% 0.55% Equity Small Cap 2.25% 1.70% 0.55%  Source: SEBI  Greater Control: Direct investing empowers investors to manage their portfolios independently. Investors can choose funds based on their own research and investment goals, without relying on broker recommendations.  Transparency: Direct plans offer increased transparency to investors. Investors have direct access to fund information and performance data published by the Asset Management Company (AMC) managing the scheme.  How to invest directly in mutual funds in India? Choosing an Investment Platform:  Gone are the days when you needed to visit a broker's office to invest in mutual funds. Today, a variety of convenient platforms facilitate direct mutual fund investments in India. Here's a breakdown of the most popular options:  Investor Portals of Asset Management Companies (AMCs): Most AMCs offer dedicated investor portals for direct investments. These portals allow you to invest directly in the mutual fund schemes offered by that particular AMC. While convenient for investors seeking funds from a specific AMC, they limit your choices to that AMC's offerings.  Online Investment Platforms: Several online investment platforms like the EduFund App aggregate mutual fund schemes from various AMCs. These platforms offer a wider range of investment choices, portfolio management tools, and research resources. They may charge a minimal platform fee, but the convenience and features can outweigh the cost for many investors.  Here's a table summarizing the key considerations when choosing an investment platform:  Factor Investor Portals of AMCs Online Investment Platforms Investment Choice Limited to schemes offered by that AMC Wider range of schemes from various AMCs Convenience Convenient for investing in a specific AMC's schemes One-stop platform for diverse investment options Fees Typically, no platform fees May charge a minimal platform fee Research & Tools Limited research resources May offer investment research tools and portfolio management features  KYC Compliance:  KYC (Know Your Customer) compliance is a mandatory requirement for all mutual fund investments in India. KYC verification helps prevent financial fraud and money laundering. The KYC process typically involves submitting documents like PAN card, ID proof, and address proof.  You can complete your KYC online or offline depending on the chosen platform:  Online KYC: Many platforms offer a paperless online KYC process. This involves uploading scanned copies of your documents and undergoing a video verification call.  Offline KYC: You can visit the nearest branch office of the chosen platform or AMC and submit your documents physically.  Investment Process:  Once your KYC is complete, you can open an investment account with your chosen platform. The process is generally user-friendly and can be completed online within minutes. Here's a simplified breakdown of the investment process:  Account Opening: Fill out the online application form with your personal details and investment preferences.  Fund Selection: Browse through the available mutual fund schemes and choose the ones that align with your investment goals and risk tolerance. Research tools and fund performance data provided by the platform can be helpful during this stage.  Investment Mode: Decide on the investment mode – lumpsum or Systematic Investment Plan (SIP). A lumpsum investment involves a one-time investment of a larger amount. An SIP allows you to invest a fixed amount periodically (monthly, quarterly, etc.) inculcating discipline and potentially benefiting from rupee-cost averaging.  Transaction Initiation: Specify the investment amount, chosen fund scheme(s), and preferred investment date (for SIPs). Review the transaction details carefully before finalizing the investment.  Additional considerations before investing directly in mutual funds While direct investing empowers you, it's crucial to approach your investment decisions thoughtfully:  Investment Goals: Clearly define your investment goals – short-term (less than 3 years), medium-term (3-5 years), or long-term (5+ years). This helps choose funds with suitable investment horizons and risk profiles.  Risk Tolerance: Evaluate your risk tolerance – aggressive, moderate, or conservative. Aggressive investors can consider high-growth equity funds, while conservative investors may prefer debt funds with lower risk.  Fund Performance History: Analyze the fund's past performance but remember past performance is not necessarily indicative of future results. Look beyond just returns and consider factors like fund manager experience, portfolio characteristics, and expense ratio.  By carefully considering these factors, you can make informed investment decisions when choosing direct mutual funds. 

The journey of parenthood is a beautiful one, filled with moments of joy, challenges, and the constant desire to provide the best for your child. One crucial aspect of this journey is planning for your child's future, especially their education and college. With the ever-increasing cost of higher education, it's essential to start saving early. This brings us to the question: Should you be investing in mutual funds or stocks for your child's college fund? Let's delve into the details to help you make an informed decision.  Understanding mutual funds and stocks What are mutual funds and stocks? What is the difference between the two investment options? Are mutual funds better than stocks because they are cheaper and professionally managed? Are stocks more profitable than mutual funds because they allow you to invest with the company directly? Before we dive into the comparison, let's briefly understand these two investment avenues.  Mutual Funds  A mutual fund is a pool of money collected from multiple investors and invested in various securities like stocks, bonds, and other assets.  It is managed by professional fund managers who aim to achieve specific investment objectives.  Mutual funds offer diversification, which means your money is spread across multiple investments, reducing the risk of significant losses.  They are generally considered less risky compared to individual stocks.  Stocks  A stock represents ownership in a company.  When you buy a stock, you become a shareholder of the company.  The value of your investment depends on the company's performance.  Stocks offer the potential for higher returns but also carry higher risk.  Investing in Mutual Funds vs Stocks | A Closer Look  Choosing between mutual funds and stocks for your child's college fund depends on several factors, including your risk tolerance, investment horizon, and financial goals. Let's compare the two based on key factors:  Risk:  Mutual Funds: Generally considered less risky due to diversification.  Stocks: Higher risk as the performance of individual companies can be volatile.  Returns:  Mutual Funds: Offer moderate returns over the long term.  Stocks: Have the potential for higher returns but also the risk of losses.  Liquidity:  Mutual Funds: Generally, more liquid, meaning you can sell your units and get your money back relatively easily.  Stocks: Liquidity depends on the stock's trading volume. Some stocks may be less liquid.  Expertise:  Mutual Funds: Managed by professional fund managers, requiring less investor expertise.  Stocks: Require in-depth knowledge of the company and market trends.  Why are mutual funds a better choice? Considering the factors above, mutual funds often emerge as a preferred choice for long-term goals like your child's education. Here's why:  Affordability: Mutual fund investments start at ₹100. Individual stocks can be expensive – a single stock in a successful company can cost you nearly ₹1000 to ₹1,00,000, depending on your market value.   Diversification: Mutual funds spread the risk across multiple investments, reducing the impact of poor performance by individual companies.  Professional Management: Fund managers handle the investment decisions, saving you time and effort.  Long-Term Perspective: Mutual funds are generally suitable for long-term investment horizons, aligning with the goal of saving for college.  Accessibility: Mutual funds are easily accessible through various platforms, making it convenient to start investing.  Less Volatile: Mutual funds are less volatile than stocks. They are diversified to minimize risk which allows you to steadily grow your child’s college savings without stressing over market ups and downs.  Best mutual funds for child education in India in 2024 Mutual Fund is the best investment asset for saving for higher education. Mutual funds have historically given returns of 10-12% over a long horizon. Successfully keeping pace with education inflation rate which is at 10%. Mutual funds are affordable, you can start investing with just ₹100 monthly and increase your investments systematically.   The greatest benefit of Mutual funds is that they are managed by professional fund managers. At minimal cost, you have experts watching your portfolio and making the necessary adjustments to ensure your money grows at the intended pace. Mutual funds’ transparency over costs and its investment strategies is another major benefit. Here are some mutual funds that you can consider you are planning to invest for child education and their college needs.  Sr. No. Scheme Name Category Sub-Category Inception Date AUM Expense Ratio 1Y Return 3Y Return 5Y Return 1. Nippon India Small Cap Fund Equity Small Cap 1/1/2013 43,816 0.67% 59.3% 42.60% 31.57% 2. HDFC Mid-Cap Opportunities Fund Equity Mid Cap 1/1/2013 56,033 0.80% 53.99% 33.89% 25.41% 3. SBI Contra Fund Equity Contra 1/1/2013 21,482 0.69% 45.69% 33.46% 26.70% 4. HDFC Balanced Advantage Fund Hybrid Dynamic Asset Allocation 1/1/2013 73,349 0.80% 38.43% 27.55% 19.72% 5. DSP Nifty 50 Equal Weight Index Fund Equity Index (Large) 10/27/2017 1,004 0.40% 33.31% 23.64% 18.89%  Note: All are Direct plan and growth option; AUM and Expense ratios are as on December 31, 2023; 3Y/5Y returns are annualized and as on January 30, 2024.   Source: Value Research  Note: Mutual fund investments are subject to market risk, please read all scheme related documents before investing. Past performance is not indicative of future results. This is not an investment recommendation.  Fund Details  Nippon India Small Cap Fund:  This fund is being managed by Mr. Samir Rachh (Since January 2017) and Mr. Tejas Sheth (Since February 2023) who is an assistant fund manager.  The fund has provided 27.07% of return since inception and it has outperformed the category over the last 1/3/5/7/10 years.  It has delivered the highest returns in the category over the last 7 and 10 years and has been in the top 3 over the 3 and 5-year period.  The fund has delivered the best risk-adjusted returns over the last three years, depicted by the highest Sharpe ratio.   Click here to know more HDFC Mid Cap Opportunities Fund:  This fund is being managed by Mr. Chirag Setalvad who has been the head of equities since June 25, 2007, and Mr. Dhruv Muchhal who is an Equity Analyst and Fund manager for Overseas investment.  HDFC Mid Cap Opportunities Fund is the largest fund in the mid-cap space with an AUM of Rs. 56,033 crores and is the only fund in the category to have an AUM of more than Rs. 50,000 crores.   The fund has provided a 21.76% return since inception and has outperformed its category and the mid-cap index in all the time horizons of 1/3/5/7/10 years.  The fund has delivered better returns per unit of risk depicted by the lower standard deviation and the beta compared with the category average.   Click here to know more SBI Contra Fund:  The fund has been in existence for approximately 25 years and has been managed by Mr. Dinesh Balachandran since May 2018 who has 17 years of rich experience in this field.  This fund has provided a whooping return of 19.59% since its inception date and has outperformed its benchmark S&P BSE 500 TRI in all the time horizon.   The fund follows a contrarian strategy while investing in equity and provides exposure to companies of all sizes.   The fund has delivered the best risk-adjusted returns in the category, as depicted by the highest Mean Return, Sharpe Ratio, Sortino Ratio and Alpha.   Click here to know more HDFC Balanced Advantage Fund:  HDFC Balanced Advantage Fund is one of the oldest funds in India and is the largest fund in the balanced advantage category, with an AUM of Rs. 73,349 crores.  The fund has been the top performer in the category for over 1/3/5 years and has delivered an impressive return of 16.04% since inception.   Although the fund has been volatile more than the category, it has delivered a significantly higher alpha of 10.34% compared to the category average of 1.35% over three years.     This fund has been managed by Mr. Srinivasan Ramamurthy, Mr. Gopal Agarwal, Mr. Anil Bamboli, Mr. Arun Agarwal, and Mr. Nirman Morakhia.  Click here to know more DSP Nifty 50 Equal Weight Index Fund:  This fund is being managed by Mr. Anil Ghelani (since July 2019) and Mr. Dipesh Shah (since November 2020).  This fund tracks the Nifty 50 Equal Weight TRI, allowing us to have exposure to large-cap equities where the probability for alpha generation is very low.   Compared with Nifty 50 TRI, Nifty 50 Equal Weight Index TRI has delivered better returns with lower volatility over a long-term period from June 2000 to April 2023.   The fund delivered an alpha of 3.75% whereas the other funds in the category struggled to outperform the benchmark over the last three years.   Click here to know more Important Note: These mutual funds are not our recommendations. Please consult your financial advisor before investing money in mutual funds.  Introducing EduFund: simplifying college savings While mutual funds offer a solid foundation for your child's college savings, choosing the right fund and managing the investment can be overwhelming. This is where platforms like EduFund come into the picture.  EduFund is a dedicated platform designed to help parents invest in their child's education through mutual funds. Here's why it stands out:  Simplified Investment Process: EduFund makes investing easy with a user-friendly app. You can start investing with just a few clicks.  Expert Guidance: The platform offers guidance on choosing the right mutual funds based on your child's age and financial goals.  College Cost Calculator: EduFund's advanced college cost calculator helps you estimate future education expenses, allowing you to plan your investments accordingly. This tool provides valuable insights into the amount you need to save and the potential returns.  Transparent Fees: EduFund provides clear information about fees, ensuring you understand the costs involved.  By leveraging EduFund, you can focus on your child's growth and development while confidently investing for their future education.  Investing in your child's future is a significant step in responsible parenting. While both mutual funds and stocks offer investment opportunities, mutual funds often provide a more suitable option for long-term goals like college savings due to their diversification benefits and professional management. Platforms like EduFund make the process even simpler and more efficient.  Remember, investing involves risks, and past performance is not indicative of future results. It's essential to conduct thorough research or consult with a financial advisor before making investment decisions.  By starting early and making consistent contributions, you can significantly increase your child's chances of achieving their higher education dreams. 

Have you ever wondered how much it might cost to send your child to college in the future?  Education costs in India are rising steadily, with prestigious institutions like IITs witnessing significant fee hikes. Planning for these expenses early is crucial to ensure your child has every opportunity to succeed.  Here's where a college fund for baby comes in.  There are several investment options to consider for your child's college fund. Mutual funds are a great place to start, especially for those new to investing.  Mutual funds pool money from many investors and invest it in a variety of stocks and bonds. This diversification helps spread risk and offers the potential for higher returns compared to traditional savings accounts.  You can opt for Lumpsum (one time investment option) or Systematic Investment Plans (SIPs) which allow you to invest a fixed amount regularly, making it a convenient and affordable way to grow your college fund for baby over the long term.  In this article, let’s look at the rising college costs, sharp rise in education inflation and why every Indian parents needs a college fund for their baby to keep up with these ever-inflating education costs.  Understanding College Costs College expenses for Indian parents can vary significantly depending on the type of institution, location, and program chosen. However, one thing remains constant – the cost is on the rise. The average cost of studying engineering in India is Rs 2,00,000-3,00,000 annually. Some courses like MBBS (due to limited seats and high demand) costs have crossed ₹1 crore. The situation abroad is even more peculiar. Indian parents are expected to pay no less than ₹30 to 40 lakhs for tuition fees alone.    Current Landscape:  Average Tuition: Currently, the average annual tuition fee for undergraduate programs in India can range from ₹50,000 to ₹5,00,000 for government and private colleges respectively. Prestigious institutions like IITs can reach even higher, with fees exceeding ₹20 lakhs annually. If you are planning to send your child abroad then costs can be higher with tuition fees starting at ₹10 lakhs to ₹50 lakhs.   Room and Board: Adding to this, room and board expenses can add another ₹2-5 lakhs annually, depending on factors like college facilities, chosen accommodation type (hostel vs. private housing), and city living costs.  Future Projections:  Based on historical trends, we can expect these costs to continue rising. For example, a recent report highlights how a popular journalism course that cost ₹42,000 per semester four years ago can now cost up to ₹72,000. This translates to a nearly 70% increase in just a few years! Following this trend, a conservative estimate suggests an annual cost increase of 5-7% over the next decade.  The costs of every course are determined by various factors – its university, country, technical aptitude, its demand tenure and inflation. Every year, education costs are adjusted keeping all these factors in mind. To ensure you are saving correctly for the expected increase in the costs of college, we have the College Cost Calculator.   To use the College Cost Calculator, all you need to do is provide basic information about your child’s dream college and course and find out how much it will cost in the future.   Factors Driving the Rise:  Several factors contribute to the rising costs of college education in India:  Increased Demand: The growing number of students aspiring for higher education puts pressure on available resources, leading institutions to raise fees to maintain quality standards.  Education Inflation: General inflation in the economy also impacts on college expenses, with institutions needing to adjust fees to cover rising operational costs.  Improved Facilities and Infrastructure: Many colleges are investing in upgrading infrastructure, improving faculty, and offering specialized programs, all of which add to the overall cost structure.  Understanding these factors and starting to plan early with a college fund for your child can help bridge the gap between rising costs and your child's educational aspirations.  Saving & investment options for a college fund for babies If you want to build a powerful college fund for your baby, then here are some investments that can help you make it stronger!  529 College Savings Plans  529 plans are a powerful tool for US residents to save for a child’s future education.  529 plans are tax-advantaged investment accounts. They are designed specifically to encourage saving for education expenses.     The beauty of 529 Plans is that contributions to a 529 plan grow tax-free federally.  This means all earnings on your investments compound without being reduced by taxes, maximizing your potential returns. Similarly, withdrawals from a 529 plan are completely tax-free at the federal level if the earnings are used for qualified education expenses.  Some states also offer additional state tax benefits.     Contributions to a 529 plan can be made by anyone, not just the account owner. This allows grandparents, relatives, or friends to contribute towards a child’s education. This plan is not available for Indian citizens and only open for American citizens.    Real Estate   Real estate is a great way to invest for your long-term goals. Real estate can offer significant capital appreciation over the long term, especially in growing locations. Additionally, rental income can provide a steady income stream. You can use your properties are collateral for taking different kinds of loans which makes it a good asset for rainy times.    However, investing in real estate is not easy. Real estate requires a significant upfront investment, which might not be feasible for everyone. Real estate is a relatively illiquid asset. Selling property can take time and involve additional costs.  Mutual Funds  As mentioned earlier, mutual funds are a game-changer. They are the best investment asset in India to save for your child’s education needs. The ease of investing in mutual funds, transparency, affordability as well as the tax benefits may make them an amazing investment tool for your long-term goals such as your child’s college savings.    When saving for your child’s education through mutual funds, you need to consider the investment horizon (timeframe until the funds are needed) and your risk tolerance.  Types of Mutual Funds for Education Savings  Equity Mutual Funds: Invest primarily in company stocks. They offer the potential for higher long-term returns but come with higher risk due to market fluctuations. Suitable for: Long-term investment horizons (10+ years). Investors who are comfortable with market volatility. Within Equity Mutual Funds, you have a special fund category called ELSS (Equity Linked Saving Scheme). They tax deductions under Section 80C of the Income Tax Act, 1961 and have a lock-in period of 3 years.   Debt Mutual Funds: Invest in fixed-income securities like bonds and government securities. They offer lower risk and predictable returns, but growth potential is limited. Suitable for: Shorter investment horizons (5-10 years). Risk-averse investors seeking capital preservation.   Balanced Funds: A mix of equity and debt funds, offering a balance between risk and return. They can be a good middle ground, but returns may be lower than pure equity funds. Suitable for: Moderate investment horizons (7-12 years). Investors seeking a balance between growth and stability.   Strategies for Building a College Fund Here are some tips and strategies on building a college fund:  Start early: The sooner you start investing for your child’s college, the bigger your child’s college fund. Time is the best aggregator, compounder and risk-minimizer. Use it powerfully and ensure that you start investing for your child’s college plans as soon as they are born.  Calculate the costs: You would never study for an exam without figuring out the syllabus, would you? Then why invest without figuring out the future costs and how much you need to invest? Use our College Cost Calculator to find out how much you are supposed to save and then plan your investment amount, tenure and investments accurately.   Choose the right investment plans: Education inflation is 10-11%. Thus, your investments need to be on par with the costs. You can go for investments like mutual funds that have the potential to keep pace with the costs of education.   Annually revise your plan: Education financial planning for your child is not a single-day task. It requires you to revisit the plan to avoid losing sight of your objective. Try to increase your investment amounts annually, adjust your funds, speak to a financial advisor who can help you get closer to your goal faster and efficiently.   Automate your savings: Set up automatic SIPs for mutual funds so that you don’t have to worry about forgetting a payment or tranfer. This will help you stay on track with your savings goals.   Explore additional funding sources: Scholarships and grants can significantly reduce college costs. Encourage your child (or yourself if you're going back to school) to research and apply for scholarships that fit their academic achievements, interests, and background.   Utilize calculators for systematic planning: If you are planning to invest in mutual funds for your child’s college fund then try our calculators like the SIP calculator and lumpsum calculator to easily assess how much you can save in your set tenure. Using the calculators will help you see in real time the result of your potential investments.   Managing and Withdrawing from the College Fund The goal of starting a college fund is to use it in the future and withdraw the money you have saved for your child’s future. If you are investing in mutual funds, then withdrawing money is easy and convenient. There is no concept of lock-in period for most mutual funds; only tax saving mutual funds have a lock-in period of 3 years. To withdraw money, you'll need to initiate a redemption request, which involves telling the mutual fund company (AMC) or transfer agent (RTA) that you want to sell some or all your shares (units) in the fund.   Information Needed: You'll need to provide some basic information, including your folio number, PAN details, the number of units you want to redeem (or the amount), and your bank account information for receiving the proceeds.  Redemption Timeframe: The timeframe for receiving your redeemed funds can vary depending on the fund and the processing time. It typically takes 3 to 5 business days for the money to be deposited into your bank account.  Exit Loads: Some mutual funds, especially closed-end funds, may charge an exit load if you redeem your shares within a certain period of time after purchase. Be sure to check the fund's prospectus for any applicable exit loads before redeeming.  Tax Implications: Depending on the type of mutual fund and how long you've held the shares, there may be tax implications associated with your withdrawal. Capital gains taxes may apply, so be sure to consult with a tax advisor if you have any questions.  Building a college fund for your baby is the best way to secure their future. The rising costs of education are here to stay and our best bet to ensuring our children get the best opportunities is to start investing early on via mutual funds so they can live a debt-free life in the future.  

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant.  The family behind DSP has been very influential in the growth and professionalization of capital markets and the money management business in India over the last one-and-a-half centuries. Let us talk about their – DSP Banking & PSU Debt Fund.  About the DSP Banking & PSU Debt Fund  Investment Objective: The primary investment objective of the scheme is to seek to generate income and capital appreciation by primarily investing in a portfolio of high-quality debt and money market securities that are issued by banks and public sector entities/undertakings.  However, there is no assurance that the investment objective of the scheme will be realized.   Asset Allocation Pattern  This fund allocates 80% - 100% in money market and debt securities issued by banks and public sector undertakings, public financial institutions and Municipal Bonds.  It also allocates up to 20% in Government securities, other debt and money market securities including instruments/ securities issued by non-banking financial companies (NBFCs).    Portfolio Composition  The portfolio holds 95.68% in debts and 4.32% in cash & cash equivalent. The fund invests in high quality debt securities of banks & public sector companies.  Note: Data as of 30th April. 2024. Source: Value Research  Top 5 Holdings of DSP Banking & PSU Debt Fund  Name Instrument Weightage % HDFC Bank Ltd SR US004 Debenture 7.65 25/05/2033 Debenture  6.67 National Bank for Financing Infrastructure and Development SR NABFID.43 Debenture 16/06/2033 Debenture 6.63 Small Industries Devp. Bank of India Ltd SR IV Bonds 7.79 19/04/2027 Bonds 5.43 State Bank of India SR I Debenture 7.81 02/11/2038 Debenture 4.82 Indian Railway Finance Corporation Ltd SERIES 129 Debenture 8.45 04/12/2028 Debenture 4.27 Note: Data as of 30th April. 2024. Source: Value Research Performance   DSP Banking & PSU Debt Fund CRISIL 10 years Gilt Index  CAGR (%) CAGR (%) 1 Year 6.89 6.23 3 Years  5.22 3.7 5 Years 7.00 6.04 Since Inception 7.92 6.67 Note: Data as of 30th April, 2024. Source: Value ResearchThe fund was launched on 14th Sept. 2013.  Fund Manager  Shantanu Godambe has been managing this fund since June 2023. He has 16 years of rich experience in this field.   Karan Mundhra has been managing this fund since July 2023. He has total 16 years of experience in this field.  Who Should Invest in DSP Banking & PSU Debt Fund?  Consider this fund if you  Are a relatively new debt market investor.  Are willing & able to remain invested for at least 3 years.   Diversify your portfolio of FDs.  Start Investing for your Child's Education! Why Invest in this Fund?  It earns potentially stable & consistent investment income.  The fund manages high quality portfolio.  It is a credible alternative to a single 3-year bank FD.  Active management by managers can aid in generating alpha over FDs.  Time Horizon  One should look at investing for a duration of at least 3 years.   Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The DSP Banking & PSU Debt Fund is a good option for those who are new to debt market and wants to invest in an alternative to FDs . The fund has consistently outperformed its benchmark in since inception.   Disclaimer: This is not recommendation advice. All information in this blog is for educational purposes only. 

Tata Asset Management Private Limited (TAMPL) manages investments of Tata Mutual Fund. TATA is one of the pioneers of the Indian Mutual Fund Industry. With an average AUM of almost Rs 1.5 Lakh crore, the AMC is among the oldest in the country. It has a track record of 30 years in investment management.   Let us get to know about – Tata Nifty 50 Index Fund.  About Tata India Consumer Fund  Investment Objective – It is an open-ended equity scheme tracking Nifty 50 Index. The investment objective of the scheme is to reflect/mirror the market returns with a minimum tracking error. However, the scheme does not assure or guarantee any returns.    Investment Philosophy The scheme is a passively managed index fund which will employ an investment approach designed to track the performance of Nifty 50 Index.   The scheme seeks to invest in securities constituting the Nifty 50 Index in same proportion as in the index. It will invest at least 95% of its total assets in the securities comprising the underlying index.  The scheme may also invest in money market instruments to meet the liquidity and expense requirements.  Portfolio Composition  The portfolio comprises 99.86% allocation in Equity and the remaining 0.14% is held in cash and cash equivalents.   Top 5 Holdings for Tata Nifty 50 Index Fund   Name Sector Weightage % HDFC Bank Financial 11.46 Reliance Ind Energy & Utilities 9.95 ICICI Bank Financial 8.10 Infosys Technology 5.08 Larsen & Toubro Industrials 4.26 Note: Data as of 30th April, 2024. Source: Value Research  Performance Since Inception  Period Tata Nifty 50 Index Fund return (Annualised) (%) Benchmark (%) 1 Year 25.87 26.27 3 Years  16.61 16.92 5 Years 14.95 15.30 Since Inception 13.53 13.85 Note: Data as of 30th April, 2024 Benchmark: Nifty 50 TRI, Inception date: 25th February, 2003 Source: tatamutualfund.com  Start Investing for your Child's Education! Fund Manager The fund is managed by Mr. Sonam Udasi and Mr. Kapil Menon. Mrr Sonam Udasi is backed with 25 years of his expertise in Equities Research is presently the Senior Fund Manager for multiple equity schemes at Tata Asset Management, since 1st April, 2016. He has joined TATA Asset Management Pvt. Ltd. As Head of Research in April 2014   Who Should Invest in Tata Nifty 50 Index Fund?  This fund is suitable for Investors  Who are seeking Long Term Capital Appreciation.  Who would like to invest in passively managed fund investing in a diversified portfolio of well-known companies as represented by Nifty 50 Index.  Ideal Time to Stay Invested   A minimum investment period here is 3 to 5 years.   Conclusion  Index funds can be a prudent investment option given the limited possibility of alpha generation in the large cap sector. If your investment horizon is long and want to participate in India’s growth story by investing in well-diversified portfolio of well-known large cap companies comprising the index you can consider looking at this fund.  Disclaimer: This is not recommendation advice. All information in this blog is for educational purposes only. 

UTI is one of the pioneers of the Indian Mutual Fund Industry. With a total AUM Rs 15.56 lakh crore the AMC is among the most trusted names in the mutual fund space. The UTI Mutual Fund offers products across asset classes.   Let us talk about the – UTI Dynamic Bond Fund.  About UTI Dynamic Bond Fund  Investment objective – The scheme's primary objective is to generate optimal returns with adequate liquidity through active management of the portfolio, by investing in debt and money market instruments across duration.   Note: There is no assurance or guarantee that the investment objective of the scheme would be achieved.   Investment Process   The Fund aims to earn accrual income by investing its assets in debt instruments. It follows tactical allocation to invest among corporate debt, government securities (G-Sec), guided by the fixed income strategy of the fund manager.  Source: UTI MF  Portfolio Composition  Currently the dynamic bond fund allocation comprises 89.63% in debt fund and 10.36% in cash & cash equivalents.   Top 5 Holdings for UTI Dynamic Bond Fund  Name Sector  % GOI Sec 7.10 08/04/2034 GOI Securities 41.88 GOI Sec 7.18 24/07/2037 GOI Securities 21.80 GOI Sec 7.37 23/10/2028  GOI Securities 8.82 GOI Sec 7.18 14/08/2033 GOI Securities 8.75 Power Finance Corporation Ltd SR 223 Debenture 7.64 22/02/2033 Debenture 4.40 Note: Data as of 30th April. 2024. Source: Value Research  Start Investing for your Child's Education Performance Since Inception  Period UTI Dynamic Bond Fund (%) CRISIL Dynamic Bond A-III Index (%) CRISIL 10 Year Gilt Index (%) 1 year 6.17 6.37 6.24 3 years 9.85 4.99 3.70 5 years 6.90 7.42 6.04 Since Inception 7.70 7.86 6.22  Note: Fund performance since launch; Inception Date – 16th June.2010 to 30th April 2024. Returns are of direct plan.  Source: UTI MF  Fund Manager  The fund is managed by Mr. Sudhir Agarwal holds who holds a degree of M.com, PGDBA(Finance) and CFA charter from The CFA Institute, USA.  He is Executive Vice President and Fund Manager – Fixed Income at UTI AMC Ltd. He joined UTI AMC in 2009 after 4 years of experience. He has been managing this scheme since December 2021 and has previously worked with CARE (Credit Analysis and Research Ltd.), Transparent Value LLC and Tata Asset Management Company Ltd in different roles.  He is fund manager managing various debt schemes.   Who Should Invest?  Investors looking to capitalize on interest rate movement along with reasonable returns and adequate liquidity.   Investors seeking to do asset allocation across various asset classes.   Investors who want to build their medium-term debt portfolio in an uncertain environment.  Investors having a moderate risk appetite with short term investment horizon can explore this fund.  Why Invest?  The fund dynamically manages duration by investing across the yield curve in response to the change in market environment.   It maintains a diversified portfolio of bonds, debentures and government securities.   It seeks to invest across different maturities and credit ratings to optimize returns with commensurate risk.   The fund intends to maintain adequate liquidity through active management of the portfolio.  Time Horizon  Investors with a time horizon of one to three years may consider this fund.   Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  UTI Dynamic Bond Fund has provided consistent higher annualised return than category average for the past 1 Year, 3 Years and 5 Years. The fund is having moderate risk so investors can explore this as an alternative to traditional instruments like fixed deposits for long term capital appreciation.  Disclaimer: This is not recommendation advice. All information in this blog is for educational purposes only. 

Although nothing compares to the delight of having a child, raising a child, and giving him or her, it comes at a high cost. Parenting involves a significant financial commitment and emotional and physical investment. Raising a child in India is challenging and expensive. If you are wondering how much money does it take to raise a child in India? List of major expenses for child education plans 1. School expenses  Children's schooling and extracurricular activities take up a huge chunk of a parent’s annual income. Over 65% of parents spend at least half of their annual income on schooling. Every parent wants the best education for their child, even if it means that they occasionally struggle to make ends meet owing to escalating school costs.   A private school charges between 50,000 to 2 lakh rupees annually. In the 12 years between Classes I to XII, there would be an outlay of between 11 to 43 lakh rupees, assuming a 10% annual inflation rate for schooling. This fee is in addition to any tuition or extracurricular activities the child will enroll in.  2. College expenses  College expenses are a big part of how much money it takes to raise a child in India. Indian parents are most concerned about rising college costs, which constitute a major expense. The average cost of an engineering degree ranges from ₹12 to ₹15 lacs today; it will cost about ₹42 lacs to ₹50 lacs in around 15 years. In the same vein, it is reasonable to predict that in 15 years, a medical degree will cost more than one crore if it costs ₹30 to ₹40 lacs today. Although parents may choose to use student loans to pay for more expensive studies, the interest rate still remains high even after-tax exemptions. Top best child investment plans in India Read More 3. Miscellaneous expenses Miscellaneous expenses are important to consider when estimating exactly how much money it takes to raise a child in India. Up to the age of 18 are food, housing, and child care, but these are not the only costs to take into account. It can be expensive to purchase other basics like clothing, education, and healthcare. When calculating the costs of having and raising a kid, all of these categories should be taken into account as well.   According to a 2011 report by the Economic Times, the average cost of raising a child in India was ₹ 2.1 lacs. Healthcare costs are also increasing quite swiftly. The price of healthcare has increased steadily since that time by more than twice its previous level. Therefore, the typical health care expenses for raising a child will be between ₹ 4 to ₹ 5 lacs.  Food and other related costs, such as eating out, can range from ₹ 5000 to ₹ 6000 per person on average. Therefore, this could result in an additional ₹70,000 in expenses each year. As food prices rise, this will rise as well, therefore over the next 20 years, food may cost you ₹15 to ₹20 lacs.  Although this is changeable depending on your needs, an ordinary middle-class household that goes to the movies once a week and sometimes to a play or a weekend getaway should expect to pay roughly ₹ 4000 per person. A domestic holiday can run you roughly ₹ 30,000 per person, so your average annual entertainment price is between ₹70,000 to ₹ 80,000. All of these costs are based on current prices and do not account for inflation, so you will need to adjust your budget to account for inflation as you raise your child annually. When it comes to how much money does it take to raise a child in India? Then it can cost you from ₹65 to ₹80 lacs to raise a kid in India today. Join our robust WhatsApp Community that helps parents invest! FAQ How much does a parent spend on a child in India?  Tier 1 city households may spend up to ₹43,000 on their children, but Tier 2 families spend nearly 23% less, Tier 3 families spend more than 22% less, and Tier 4 city parents spend roughly 32% less than Tier 1 city families. So, on an annual basis, Indian parents spend ₹32,000 on their children's education.  How much do you need to have a baby in India?  Given that infants are vulnerable to infections in their first few years of life, children need intensive medical care. Therefore, keeping that in mind, according to the reports of Aditya Birla Capital, the average cost of raising an infant would range from 5 to 6 lacks rupees which would include all the expenses from monthly pediatrician visits to accessories for a child.

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP Mutual Funds is backed by the DSP Group, an almost 160-year-old Indian financial giant.  In this blog let us explore their – DSP Short Term Fund.  About the DSP Short Term Fund  Investment Objective: The primary investment objective of the Scheme is to generate returns commensurate with risk from a portfolio constituted of money market securities and/or debt securities.    Note: There is no assurance that the investment objective of the Scheme will be realized.  Read On: Is investing in mutual funds safe? Addressing all your concerns! What is in the DSP Short Term Fund?  This fund invests in high quality debt securities, primarily AAA rated corporate bonds and sovereign (government) bonds and can invest up to 20% in AA+ rated instruments.  It is one of DSP’s oldest debt funds with a 19 year+ track record.  Portfolio Composition  Top 5 Holdings  Name Instrument Weightage % GOI Sec 7.18 14/08/2023 GOI Securities 9.68 Power Finance Corporation Ltd SR BS221B Debenture 7.59 17/01/2028 Debenture 4.61 GOI Sec 7.32 13/11/2030 GOI Securities 4.35 GOI Sec 7.17 17/04/2030 GOI Securities 3.46 Titan Company Ltd SR 2 NCD 7.75 03/11/2025 Non-Convertible Debenture 3.44 Note: Data as of 31st March 2024. Source: Value Research Performance   Particular DSP Short Term Fund CRISIL Short Duration Debt A-II Index ^ CRISIL 10 year Gilt Index  CAGR (%) CAGR (%) CAGR (%) 1 year 7.65 7.5 8.55 3 years  5.44 5.42 4.3 5 years 6.73 6.59 6.15 Since Inception 7.79 7.61 6.4 Note: Data as of 28th March 2024. The fund is of direct-growth option. Source: DSP MF  Check Out: Top Mutual Funds to Invest In for your child's education! Fund Managers The Fund is managed by  Mr. Laukik Bagwe - he has been managing this fund since July 2016 and he has a total work experience of 23 years.  Mr. Sandeep Yadav - he has been managing this fund since March 2022 and has a total work experience of 21 years.  Who Should consider the DSP Short Term Fund?  Investors can consider this fund if they  Value stability and consistency of returns.  Do not want to take a high level of credit or interest rate risk.  Are looking to reduce the overall risk level of their portfolio.  Want to invest for short term.  Why should one invest in DSP Short Term Fund?  This fund can be a credible alternative to a 3 year bank FD.  As this fund is actively managed by fund managers, it can aid in generating alpha.   Time Horizon  One should look at investing for a period between one to three years.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broad markets.  Conclusion  The DSP Short Term Fund has a proven track record of more than 19+ years, where it has delivered a CAGR (Compounded Annual Growth Rate) of 7.61% as of 28th March 2024. As the fund invests in money market and debt securities it carries low to moderate risk. One can consider it for a short-term period as an alternative of FD.   Disclaimer: This is not recommendation advice. All information in this blog is for educational purposes only.  Invest Now

UTI is one of the pioneers of the Indian Mutual Fund Industry. With a total Asset Under Management of INR 15.56 lakh crore. The AMC is among the most trusted names in the mutual fund space and offers products across asset classes. Let us talk about the – UTI Innovation Fund.  Read On: Is investing in mutual funds safe? Addressing all your concerns! About UTI Innovation Fund  Innovation fosters unique ideas that could create new markets, increase growth, and/or disrupt incumbents in their domains. Over the past few years, India’s focus on innovation and adoption of technology has led it to emerge as the third-largest start-up ecosystem globally. We believe innovation is an important catalyst for economic growth and wealth creation. This fund by UTI aims to capture this innovation theme.  Investment Objective It is an open-ended equity scheme following innovation theme. The Fund aims to invest predominantly in innovation-oriented companies and disruptors with potential of delivering non-linear growth outcomes.   The scheme intends to provide medium to long-term capital appreciation through investment primarily in growth and innovation-oriented equity and equity-related instruments.  Note: There is no assurance or guarantee that the investment objective of the scheme would be achieved.   Check Out: Top Mutual Funds to Invest In for your child's education! Investment Thesis  The investment strategy of the scheme focuses on the below:  Innovation – Companies that use innovation to enhance productivity, create environmental and social impact  Growth – Companies having significant potential for growth, demonstrated track record of developing the market and/or gaining market share  Quality – Companies that are financially strong with market leadership, robust business models, quality management and corporate governance  Source: UTI MF  Portfolio Composition  The funds are allocated 93.8% to equity, 0.92% debts and 5.29% Cash and Cash Equivalents.    Top 5 Equity Holdings for UTI Innovation Fund  Name Sector  % Zomato  Technology 6.66 Pb Fintech  Financial 6.49 Info Edge (India) Technology 5.88 FSN E-Commerce  Consumer Discretionary 5.43 Praj Industrials 4.53 Note: Data as of 31st March. 2024. Source: Value Research  Performance Since Inception  Period NAV (%) Nifty 500 TRI (%)  (%) Since Inception 5.27 16.84 13.44 Note: Fund performance since launch; Inception Date – 13th October. 2023. Returns are of direct plan. Source: UTIMF Fund Manager  The fund is managed by Mr. Ankit Agarwal. He holds a post graduate degree in Management (PGDM) from IIM, Bangalore. He joined UTI in August 2019. Presently he has been designated as Fund Manager; managing UTI Mid Cap Fund. He has more than 12 years of experience. Prior to joining UTI, he was working with Lehman Brothers, Barclays Wealth and had been associated with Centrum Broking Ltd in the capacity of Senior Vice President.   Who Should Invest?  Investors looking for a true to label innovation fund that is benchmark agnostic and backed by research expertise.  Investors seeking relatively high growth potential and willing to ride the underlying waves of innovation.  Investor who wants to invest through lump sum or staggered (SIP/STP) allocation and with a long-term horizon.  Time horizon  The fund is ideal for investment with a time horizon of 5 years or above.   Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The equity portion of the fund's portfolio is managed actively with a bottom-up stock-picking approach, while the debt portion is managed with a focus on credit quality and liquidity. The fund has performed with a CAGR of 5.27% since inception, while having very high risk. Since the fund has just  6 month ago and it would be interesting to see whether the fund will meet its benchmark return in the future or not.  Disclaimer: This is not recommendation advice. All information in this blog is for educational purposes only.  Invest Now

UTI is one of the pioneers of the Indian Mutual Fund Industry. With a total AUM of Rs 15.56 Lakh crore, the AMC is among the most trusted names in the mutual fund space for 20 years now. The UTI Mutual Fund offers products across asset classes.  Let us discuss about – UTI Corporate Bond Fund.  Read On: Is investing in mutual funds safe? Addressing all your concerns! About UTI Corporate Bond Fund  Investment Objective – The investment objective of the scheme is to generate optimal returns by investing predominantly in AAA/equivalent rated corporate bonds.    However, there can be no assurance that the investment objective of the scheme will be realized. The scheme does not guarantee/indicate any returns.  Investment Strategy  A corporate bond debt fund focusing accrual-oriented income strategy.  This fund intends to invest 100% portfolio in AAA/ equivalent assets.  This fund has up to 72% allocation in higher credit quality corporate bonds.   Portfolio Composition  The portfolio comprises 93.89% allocation in debt, and the remaining 6.12% is held in cash and cash equivalents.   Top 5 Holdings for UTI Corporate Bond Fund   Name Instrument Weightage % GOI Sec 7.18 14/08/2033 GOI Securities 18.62 LIC Housing Finance Ltd FD 7.67 15/04/2033 Debenture 4.93 National Bank for Agriculture & Rural Development SR 24E Debenture 7.80 15/03/2027 Debenture 4.67 Power Finance Corporation Ltd SR 223 Debenture 7.64 22/02/2033  Debenture 4.28 Indian Railway Finance Corporation Ltd SR 173 Debenture 7.68 24/11/2026 Debenture 4.11 Note: Data as of 31st March, 2024. Source: Value Research  Performance Since Inception  Period UTI Corporate Bond Fund Nifty Corporate Bond Index A-II (%) CRISIL 10 Years Gilt Index (%) 1 Year 7.35 7.41 8.54 3 Years  5.25 5.20 4.30 5 Years 7.02 6.65 6.15 Since Inception 7.20 6.97 6.64 Note: Data as of 31st March, 2024 Source: utimf.com  Fund Manager  The fund is managed by Mr. Anurag Mittal, Deputy Head- Fixed Income and Fund. He is a CA from ICAI and holds a MSc from University of London. He has been managing the scheme since December, 2021.   Check Out: Top Mutual Funds to Invest In for your child's education! Why Invest in UTI Corporate Bond Fund?  The scheme seeks to capture yield movements at the short to medium (1 to 5 years) segment of the curve, depending on the interest rate outlook and yield. Further, the current elevated real bond yields offer patient investors a favourable chance to earn decent accrual income and capital gains as the interest rate cycle shifts.  Who Should Invest in UTI Corporate Bond Fund?  This fund is suitable for Investors  Who are seeking for reasonable income and liquidity over the medium term.  New debt mutual fund investors who do not wish to take high levels of credit risk  Those looking to diversify their fixed-income portfolio.  Ideal Time to Stay Invested   Investors may consider this fund as a part of the core fixed income portfolio allocation for an investment horizon of 2 years and above.  Conclusion  UTI Corporate Bond fund is an open-ended debt scheme investing in highly rated debt instruments. The fund aims to generate reasonable income and capital appreciation by investing in high credit quality debt instruments. Currently, one to three-year corporate bonds stand a good chance of gaining from rate cuts, enhanced interbank liquidity and a decrease in corporate bond issuance during the first half of the fiscal year. Investors who are looking for an alternative to traditional instruments like FDs can consider this fund after studying risk metrics of the fund.  Disclaimer: This is not recommendation advice. All information in this blog is for educational purposes only.  Invest Now

Investing in mutual funds is a smart way to grow your wealth and potentially beat the rising costs of college education. With a variety of top mutual funds available, it's important to choose the ones that align with your financial goals and risk tolerance. In this guide, we'll explore the top mutual funds for different investment needs, from long-term growth and SIP to high returns and dividends. We'll also answer common questions about the safety of mutual funds and how they compare to fixed deposits (FD). Top Mutual Funds to Invest Here are some of the best mutual funds to invest in 2023 for your kid’s future. Top Mutual Funds to invest in 2023Sr. No.CategoryScheme Name1Large CapCanara Robeco Bluechip Equity Fund2Mid CapAxis Mid Cap Fund3Small CapSBI Small Cap Fund4Small CapTata Small Cap Fund5Large and Mid-CapKotak Equity Opportunities Fund6Flexi CapHDFC Focused 30 Fund7Multi CapHDFC Multi Cap Fund8Aggressive HybridSBI Equity Hybrid Fund9Conservative HybridICICI Prudential Regular Savings Fund10Dynamic Asset AllocationHDFC Balanced Advantage Fund Important Note: This is not investment advice. Please do not invest in these mutual funds without proper financial consultation and review. Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. Start Investing in Mutual Funds Top Mutual Funds for SIP (Systematic Investment Plan) These are some of the top mutual funds for SIP in 2023 to consider for your kid’s future college fund: 1. HDFC Equity Fund Category: Equity Large Cap SIP Returns: This fund has a strong track record of delivering consistent returns over the long term. 2. Mirae Asset Emerging Bluechip Fund Category: Equity Mid Cap SIP Returns: Known for its potential to generate high returns over time, ideal for those with a longer investment horizon.Note: This is not an investment advisor. Please consult your financial advisor before investing in mutual funds. Mutual funds are subject to market risks. Read all scheme-related documents carefully.                               Top Mutual Funds High ReturnsSr. No.CategoryScheme Name1Small CapNippon India Small Cap Fund2Small CapAxis Small Cap Fund3Small CapTata Small Cap Fund4Mid CapPGIM India Mid Cap Opportunities Fund5Mid CapKotak Emerging Equity Fund6Mid CapSBI Magnum Midcap Fund7Flexi CapParag Parikh Flexi Cap Fund8Flexi CapCanara Robeco Flexi Cap Fund9ContraSBI Contra Fund10ValueICICI Prudential Value Discovery Fund Important Note: This is not investment advice. Please do not invest in these mutual funds without proper financial consultation and review. Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. Top Mutual Funds for High Returns  These are some top mutual funds for higher returns that parents can use to pay for their child’s future college plans. Remember staying invested for a long time can help you yield higher returns. 1. Aditya Birla Sun Life Small & Midcap Fund Category: Equity Small Cap High Returns: This fund has historically provided high returns, but it comes with higher volatility. 2. Axis Long-Term Equity Fund Category: Equity ELSS (Tax-saving) High Returns: Offers the dual benefit of potentially high returns and tax savings under Section 80C.Note: This is not an investment advisor. Please consult your financial advisor before investing in mutual funds. Mutual funds are subject to market risks. Read all scheme-related documents carefully. Top Mutual Funds with DividendsSr. No.CategoryScheme Name1Dividend Yield FundAditya Birla Sun Life Dividend Yield Fund2Dividend Yield FundHDFC Dividend Yield Fund3Dividend Yield FundICICI Prudential Dividend Yield Equity Fund4Dividend Yield FundLIC MF Dividend Yield Fund5Dividend Yield FundSBI Dividend Yield Fund6Dividend Yield FundSundaram Dividend Yield Fund7Dividend Yield FundTata Dividend Yield Fund8Dividend Yield FundTempleton India Equity Income Fund9Dividend Yield FundUTI Dividend Yield Fund Important Note: This is not investment advice. Please do not invest in these mutual funds without proper financial consultation and review. Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. Top Mutual Funds with Dividends Consider these top mutual funds that offer dividends to their investors 1. ICICI Prudential Dividend Yield Equity Fund Category: Equity Dividend Yield Dividend Focus: Seeks to provide regular dividends while aiming for capital appreciation. 2. Franklin India Equity Hybrid Fund Category: Hybrid Equity-oriented Dividend Focus: Balances equity and debt investments, making it suitable for regular income.Note: This is not an investment advisor. Please consult your financial advisor before investing in mutual funds. Mutual funds are subject to market risks. Read all scheme-related documents carefully. Top Mutual Funds for Long-Term Investment 1. SBI Bluechip Fund Category: Equity Large Cap Long-Term Potential: Known for its stability and potential for wealth creation over the long haul. 2. Kotak Standard Multicap Fund Category: Equity Multicap Long-Term Potential: Offers flexibility to invest across market caps for sustained growth. Note: This is not an investment advisor. Please consult your financial advisor before investing in mutual funds. Mutual funds are subject to market risks. Read all scheme-related documents carefully. Top Mutual Funds to invest in short termSr. No.CategoryScheme Name1Short DurationTop Mutual Funds to Invest in short term2Dynamic BondICICI Prudential All Seasons Bond Fund3Dynamic BondAditya Birla Sun Life Dynamic Bond Fund4Dynamic BondSBI Dynamic Bond Fund5Dynamic BondUTI Dynamic Bond Fund6Corporate Bond FundICICI Prudential Corporate Bond Fund7Corporate Bond FundNippon India Corporate Bond Fund8Money MarketTata Money Market Fund9Liquid FundAditya Birla Sun Life Liquid Fund10Liquid FundUTI Liquid Cash Fund Note: This is not investment advice. Please consult your financial advisor before investing in mutual funds. Mutual funds are subject to market risks. Read all scheme-related documents carefully. Top Mutual Funds for Short-Term Investment  These are some of the best mutual funds for short-term investment that parents can consider for your kid’s future college plans.  1. UTI Banking & PSU Debt Fund Category: Debt Banking & PSU Short-Term Stability: Suitable for conservative investors seeking stable returns in the short term. 2. IDFC Banking & PSU Debt Fund Category: Debt Banking & PSU Short-Term Stability: Focuses on safety and liquidity, making it ideal for short-term parking of funds.Note: This is not investment advice. Please consult your financial advisor before investing in mutual funds. Mutual funds are subject to market risks. Read all scheme-related documents carefully. FAQs Are Mutual Funds 100% Safe? Mutual funds are not risk-free. They are subject to market fluctuations, and the returns are not guaranteed. However, investing in diversified funds with a long-term horizon can mitigate risks. Are Mutual Funds Safer than FDs? Mutual funds and fixed deposits serve different purposes. FDs are considered safer but offer lower returns, while mutual funds have the potential for higher returns but come with market-related risks. What Are the Top Mutual Funds to Invest in 2023? The top mutual funds for 2023 depend on your financial goals and risk tolerance. Consider consulting a financial advisor to choose the right funds for your specific needs. Thus, to beat the rising costs of college education, investing in mutual funds can be a viable strategy. Provide your child with a better future by choosing the right mutual fund. Choose funds that align with your investment horizon and risk tolerance, and consider a diversified portfolio for better risk management. Keep in mind that mutual funds carry some level of risk, so it's essential to invest wisely and for the long term.

Inflation is snowballing. To cope with the growing cost of inflation, one needs to plan investment at an early stage. When we think about investment, we can choose from multiple options available in the financial market. Traditional tools provide a nominal return on your investment, while mutual funds offer varied products suitable for different needs with attractive return potentials.  What is a Mutual Fund?  A mutual fund is a pooled investment vehicle that collects the savings of several investors who share a common financial goal. It manages the investors' money by investing in securities to generate a return. It charges fees from that return generated, and the remaining return is passed on to the investors.  One of the main advantages of investing in mutual funds is that it provides investment diversification. This means that the money invested is spread across various companies and sectors, which reduces the risk of losing all the money in case of a market volatility downfall of one company or sector.  Concerns amongst investors are prevalent when they start investing money in any financial asset class as they put their hard-earned money into that investment.  Let us address and discuss the different concerns in detail for better understanding.  Risks and Disadvantages of Mutual Funds Market Risk - When we choose to invest in securities, there will always be a market risk i.e. the macro-economic risks all firms in the economy are exposed to. You can't control the market risk, but you can be prepared for it. Understanding the market risk and diversifying your investment can help you survive the market storm.  No Guarantee – Compared to other traditional tools available in the market, there is no guarantee that you would get a minimum of this much return or that your principal is protected. As we know, mutual fund returns are subject to market risk.   Management Risk: Mutual funds also include management risk, which means that the fund manager may not perform well and could not generate the requisite return. Sometimes, even experienced fund managers can get caught off guard by unexpected market events or make emotional decisions based on fear or greed.  High annual expense ratio: Mutual funds must disclose how much they charge their investors annually in percentage terms to compensate for the cost of running an investment business. The percentage of expense ratio reduces the mutual fund's gross return.  Mutual Fund Loads: Mutual funds may apply exit loads, which are one-time expenses levied when exiting a mutual fund scheme. The charges applicable here are as follows.   Exit Load: The exit load must be paid when an investor exists in the mutual fund scheme within a short span. This fee is levied to stop investors from opting out of the scheme.  Transaction Charges: An investor must pay a nominal amount as transaction fees. For example, if A wants to invest 10,000INR into a mutual fund and transaction charges are 100INR, then that investor will have 9,900INR in total to invest.  Other Costs - Investors incur indirect costs during the investment journey, including opening and maintaining a demat account, brokerage charges, etc. While buying and selling stocks, a security transaction tax is levied, which must be paid by investors.  As mentioned earlier, professionals manage mutual funds, making smart decisions for investors like you. This way, you can gain from the manager's knowledge and experience. Keep in mind that due to rules and regulations, many funds may dilute returns, which could limit potential returns.  Investing in mutual funds isn't risk-free, but risk can be minimized in an effective way to grow your wealth over the long term. By managing expectations, understanding risks, and choosing the right funds for your needs, you can turn this rollercoaster into a smooth and rewarding ride towards your financial goals. Remember, knowledge is power, and with a little research and guidance, you can navigate the world of mutual funds with confidence.  If you are still confused about your investment journey and need guidance, then book a meeting with our wealth advisor.   Join our robust WhatsApp Community that helps parents invest!

In the pursuit of providing an exceptional education experience for their children—be it during the formative years, primary schooling, or higher education—every parent shares a singular concern: financing this educational journey. With the education costs skyrocketing, every single moment becomes crucial because time is money. As the adage goes, "The early bird catches the worm.", delving into preparations for your child's future sooner rather than later is akin to higher corpus maturing over time. Thereby, ensuring a more robust foundation for their educational endeavours.   To help you better understand the situation, consider two friends, Ram and Lakhan. They both decided to invest for their child’s future a sum of Rs. 10,000/Month SIP in a fund that gave 12% annualized returns. The only difference is Ram started investing when he was 24 years old and Lakhan started investing when he had his first child at age 30. At the age of 40 Ram would have had Rs. 58.13 Lakhs whereas Lakhan would have had just Rs. 23.23 Lakhs, loss of almost Rs. 35 Lakhs because of delaying the investments. Therefore, the earlier you start, the better it is.  But how to find a good investment? How to know if a scheme is good for you as there are “n” number of things that hover around.  Perplexed yet? Don’t worry, we’ve got you.  To simplify this vast world of mutual funds for you, we have prepared a list of the important factors one should consider while investing in Mutual Funds.  Time Horizon - How much time do you have in hand determines your risk-taking ability. The higher the time horizon, higher the risk you can take and vice versa.  Risk Appetite - Determine how much risk you can take. This will depend on various factors such as time horizon, certainty of cashflows, amount of investment, etc.  As a general rule of thumb:  Equity funds are suitable for individuals with high-risk appetite and longer time horizon (5 - 10 years or even more).  Hybrid Funds are suitable for individuals with low to moderate risk appetite and having medium term time horizons (3-5 years).  Debt Funds are suitable for low-risk appetite investors for short term time horizon.  Investment Strategy – The investment strategy adopted by the fund plays a crucial role to determine if it is suitable for you. A high risk investment strategy might    Fund Details - See who is managing the fund and for how much time, where it invests, how much are its assets (higher the better), what is the expense ratio (lower the better).  Past Performance - How the fund has performed in the past, whether it has outperformed in the bull markets and protected your capital in the bear markets, etc. will give you an idea whether the fund manager has managed the fund appropriately.  Note: this is not an all-inclusive list.  Top Mutual Funds for Parents Still worried? Below is a list of top mutual funds parents can consider for their child’s education planning.   Sr. No. Scheme Name Category Sub-Category Inception Date AUM Expense Ratio 1Y Return 3Y Return 5Y Return 1. Nippon India Small Cap Fund Equity Small Cap 1/1/2013 43,816 0.67% 59.3% 42.60% 31.57% 2. HDFC Mid-Cap Opportunities Fund Equity Mid Cap 1/1/2013 56,033 0.80% 53.99% 33.89% 25.41% 3. SBI Contra Fund Equity Contra 1/1/2013 21,482 0.69% 45.69% 33.46% 26.70% 4. HDFC Balanced Advantage Fund Hybrid Dynamic Asset Allocation 1/1/2013 73,349 0.80% 38.43% 27.55% 19.72% 5. DSP Nifty 50 Equal Weight Index Fund Equity Index (Large) 10/27/2017 1,004 0.40% 33.31% 23.64% 18.89%  Note: All are Direct plan and growth option; AUM and Expense ratios are as on December 31, 2023; 3Y/5Y returns are annualized and as on January 30, 2024.   Source: Value Research  Fund Details:  Nippon India Small Cap Fund:  This fund is being managed by Mr. Samir Rachh (Since January 2017) and Mr. Tejas Sheth (Since February 2023) who is an assistant fund manager.  The fund has provided 27.07% of return since inception and it has outperformed the category over the last 1/3/5/7/10 years.  It has delivered the highest returns in the category over the last 7 and 10 years and has been in the top 3 over the 3 and 5-year period.  The fund has delivered the best risk-adjusted returns over the last three years, depicted by the highest Sharpe ratio.   HDFC Mid Cap Opportunities Fund:  This fund is being managed by Mr. Chirag Setalvad who has been the head of equities since June 25, 2007, and Mr. Dhruv Muchhal who is an Equity Analyst and Fund manager for Overseas investment.  HDFC Mid Cap Opportunities Fund is the largest fund in the mid-cap space with an AUM of Rs. 56,033 crores and is the only fund in the category to have an AUM of more than Rs. 50,000 crores.   The fund has provided a 21.76% return since inception and has outperformed its category and the mid-cap index in all the time horizons of 1/3/5/7/10 years.  The fund has delivered better returns per unit of risk depicted by the lower standard deviation and the beta compared with the category average.   SBI Contra Fund:  The fund has been in existence for approximately 25 years and has been managed by Mr. Dinesh Balachandran since May 2018 who has 17 years of rich experience in this field.  This fund has provided a whooping return of 19.59% since its inception date and has outperformed its benchmark S&P BSE 500 TRI in all the time horizon.   The fund follows a contrarian strategy while investing in equity and provides exposure to companies of all sizes.   The fund has delivered the best risk-adjusted returns in the category, as depicted by the highest Mean Return, Sharpe Ratio, Sortino Ratio and Alpha.   HDFC Balanced Advantage Fund:  HDFC Balanced Advantage Fund is one of the oldest funds in India and is the largest fund in the balanced advantage category, with an AUM of Rs. 73,349 crores.  The fund has been the top performer in the category for over 1/3/5 years and has delivered an impressive return of 16.04% since inception.   Although the fund has been volatile more than the category, it has delivered a significantly higher alpha of 10.34% compared to the category average of 1.35% over three years.     This fund has been managed by Mr. Srinivasan Ramamurthy, Mr. Gopal Agarwal, Mr. Anil Bamboli, Mr. Arun Agarwal, and Mr. Nirman Morakhia.  DSP Nifty 50 Equal Weight Index Fund:  This fund is being managed by Mr. Anil Ghelani (since July 2019) and Mr. Dipesh Shah (since November 2020).  This fund tracks the Nifty 50 Equal Weight TRI, allowing us to have exposure to large-cap equities where the probability for alpha generation is very low.   Compared with Nifty 50 TRI, Nifty 50 Equal Weight Index TRI has delivered better returns with lower volatility over a long-term period from June 2000 to April 2023.   The fund delivered an alpha of 3.75% whereas the other funds in the category struggled to outperform the benchmark over the last three years.    Above all the funds have given stellar returns and fare better amongst peer schemes. Parents can consider a fund that is appropriate based on their financial goal, risk tolerance and time horizon. Before embarking on any investment decision, consult a financial advisor for guidance. Their expertise not only enriches your understanding but also strengthens your strategy, ensuring a secure and informed financial journey.  Disclaimer - Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The past performance of the mutual funds is not necessarily indicative of the future performance of the schemes. The mutual fund schemes mentioned are only for educational and informational purposes, and no investment is recommended.   Join our robust WhatsApp Community that helps parents invest!