EduFund Blogs

A good college for your child is the end goal for every parent because it’s the stepping stone to a great career and life. But why save 10 years in advance for your child's education? Here is why! Ideally, you need to save 10 years in advance for your child’s college but many parents make the mistake of thinking they have enough time. Here’s why you need to start saving early and consistently for your child’s higher education to be financially independent in the future.    Why save 10 years in advance for a child's college? Increasing tuition fees  Do you know that the cost of education schooling, and college is going up by 10 -12% every year? Let’s say the annual fees in a private engineering college in 2022 stand at Rs. 6-7 lakhs. By 2027, this same one-year fee will be Rs. 27 lakhs, given the rate at which fees are being hiked. The standard rate of inflation does not apply to education and is almost always higher.  Increasing lifestyle cost   Changing lifestyle standards and greater disposable incomes mean parents don’t want their children to study in government institutes that at times have insufficient infrastructure. So, when you start looking for a college for your child, you will naturally find yourself drawn to contemporary universities with fancy buildings, equipped with all kinds of learning and teaching technology everything that comes with an expensive price tag. Especially as ICSE and international boards become increasingly accepted, the next step in a student’s academic career is a school that is comparable to global world-class educational institutes in terms of quality of education, opportunities, and facilities. When you plan to give your child the best of institutes, you must be ready for the financial demands that tag along.  High competition  Getting into good government colleges/universities was always challenging, but now it has become even more so with the growing numbers looking to pursue higher education. The intense competition at the govt universities has increased the demand for private universities that charge more than their government counterparts. This makes it necessary for parents to save up over time for the large fees that are required in private universities.  Similarly saving up for sending your child abroad comes with its own set of financial woes. You need to consider currency changes, the political and economic climate of both countries and the average cost of living rather than just your child’s college fees.   Source: pixabay How to save across 10 years?  Overseas undergrad education in the best of universities can cost you close to a crore of rupees. Sure, at the outset this amount sounds daunting, but it is not. If you start putting away Rs. 9000 – 12000 per month over the next 10-15 years, you will be able to touch your target of creating an education corpus of Rs. 1 crore. Investing in Equities across a long-term horizon usually brings you an average return of 15-16%. This is further enhanced when you do not pull out your earnings on a regular basis.   When you start early, you have the distinct advantage of the power of compounding. Your investment will grow and give you impressive returns over a long period.   If you think you will start late and makeup as you go along, you are sadly mistaken. A shorter investment term means your money has lesser time to grow. Yet there are many financial instruments you can depend on to reach your goal, it’s always better to approach a professional or a financial advisor when you are considering a huge expense like higher education.  Saving 10 years in advance for your child’s college gives you a huge advantage. It can you manage your daily spending and take care of one of the most challenging spending of your life. Don’t start saving blindly, get in touch with an expert to get a financial plan for your child’s unique goals. FAQs How do I save for my child's education? One of the most common questions among parents is how to save for their child’s education. The best and most effective way is to invest in mutual funds, US ETFs, stocks, etc. Within mutual funds, parents who have kids between the ages of 1-5 years should opt for equity-based mutual funds. These funds are great for long-term investors who are looking at 10-15 years of investment horizon. However, each plan depends on the parent’s risk appetite, time horizon, and the final amount needed for their goal. How much money do I need for my kid's education? An easier way to find how much money you need is through the EduFund College Cost Calculator. The calculator helps you in 2 pertinent ways: It estimates the final cost of any course and college after adjusting it for inflation It customizes a plan based on when and where your child wants to study It suggests investment plans and even scholarships + education loans that can assist you in paying for the amount Why is it important to save money for my child’s education? The average cost of education is increasing rapidly. Certain courses like medicine in private universities in India can cost you nearly 1 crore. If you are planning to send your child abroad then need to think of currency exchanges, LRS limits on spending, accommodation costs, and even expensive flight tickets. All these factors are important to consider while creating a corpus. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Recent events like the pandemic, the Russian - the Ukraine war, the consistently falling rupee, and high inflation have proved why investing at an early age and systematically is vital and a significant requirement today! Since it’s the only way to beat inflation and work towards wealth generation, here are 8 ways to invest in 2023 for beginners!  1. Know your financial goals  Every person has financial goals to achieve; whether it’s to cruise around the world or pay for your child’s foreign education. Everyone has them and everyone needs to work for them. The first rule of investing is to determine your short-term goals like buying a car and long-term goals like buying a house to figure out how to work towards it based on your finances and spending.  When it comes to financial planning, it's best to be realistic. Understand your goals and determine the best way to attain them without compromising your present needs!  2. Study your finances  Before investing a huge sum, it's good to budget your finances and understand where your money is going. For instance, if you have an income of Rs. 45,000 a month and if you spend Rs. 25,000 on rent then it’s not feasible for you to invest Rs.20,000. You have to take care of your utility bills, food, and other miscellaneous expenses. It's best to pick a realistic amount for investing every month that you can pay consistently before starting a SIP.  3. Time your financial goals  Knowing how much time you have and need to achieve your goal is a crucial aspect of investing. Some investments have a lock-in period; suppose you choose an investment that has a lock-in period of 5 years but you need your money in 3 years, this can throw your financial planning off the charts. So, it’s important to align your deadlines with your investments so that you can take care of all your needs on time.  4. Know your risk appetite  Some investments are riskier than others, some offer low to medium risks. Depending on your risk appetite you can choose the option that suits your financial goals and current needs. Risk appetite depends on a number of factors like your running income, sources of income, financial obligations, number of dependents, age, etc.  5. Put your eggs in different baskets  You have probably heard this line more than enough to know relying on one financial tool like an FD Mutual Fund or ETF alone can be a huge mistake. It is always beneficial to diversify your investments so that you can achieve your financial goals faster and more efficiently. Speak to an expert if you have trouble assessing the different investments for your unique goals!   6. Avoid impulse decisions  Many first-time investors make the mistake of investing everywhere without any specific goal in mind rather than the lure of lucrative returns. While these avenues may be a great investment opportunity, they could prove to be a loss. So do your research well, understand your needs, and then invest your hard-earned money into schemes you can vouch for!  7. Ensure you have enough liquidity   Some investments have lock-in periods and levy extra charges for redemption before the set date. This can be a huge loss on your investment! While you cannot foresee future emergencies, you can prepare for them with emergency funds and some liquidity, that is, cash in hand!    8. Market research is key  While the pandemic introduced various changes and led to the emergence of pharma companies like high-return investments, the winds are changing again. Companies like manufacturing and logistics are making a grand comeback, especially in India with the start-up culture in full swing. So, know your market before making any big investments. If you have no prior expertise in share market research then contact an expert!   How you invest in 2023 should be determined by your financial goals and needs while keeping research at the centerfold! The gamut of financial advice and instruments has increased in the past few years, it is easy to get overwhelmed so seek help wherever you can to make the right choices!  FAQs What are the top 5 sectors to invest in 2023? The top 5 sectors to invest in 2023 are: Information Technology, Pharmaceuticals, FMCG, Automobile Companies, Logistics, etc How to plan investment in 2023? The key to investing is knowing your time horizon, financial goals, risk profile, and lastly, diversification. Ideally, every month, every individual should invest an amount they prefer towards their financial goals to achieve them on time. You can opt for a bunch of investments like mutual funds, ETFs, stocks, insurance, PPF, government programs, bonds, and even FD based on your financial needs. Always consult an expert so that you can plan and implement smartly! Which sector will boom in India? Watch out for sectors like housing, banking, information technology, pharma, and automobiles TALK TO AN EXPERT

Placing a lumpsum order on the EduFund app is quick and easy! Simply log in, select the desired investment fund, specify the amount, and confirm the order. https://www.youtube.com/watch?v=tdwqQH0xkFw Enjoy hassle-free investing and take control of your education savings with EduFund.  Log in to the EduFund App  To begin, open the EduFund app on your device and log in using your credentials. You can easily make an account if you don't already have one by going through the signup process. Logging in grants you access to all the features and functionalities of the app.  PlayStore App AppStore App Navigate to the Investment Section  Once you're logged in, find the "Investments" or "Investment Funds" section within the app's interface. It may be located in the main menu or on the home screen, depending on the app's layout. This section provides an overview of the available funds you can invest in.   Choose the Desired Investment Fund  Within the investment section, you'll find a list of available funds. Take your time to explore the options and select the fund that aligns with your investment goals and risk tolerance. Consider factors such as historical performance, fund manager reputation, and any associated fees. The app may provide detailed information about each fund to help you make an informed decision.   Specify the Lumpsum Investment Amount After selecting the fund, it's time to specify the lumpsum investment amount you wish to contribute. Enter the desired sum in the appropriate field or use the app's intuitive interface to adjust the investment amount. The app may provide additional options, such as minimum investment requirements or maximum investment limits, ensuring flexibility for investors.   Review and Confirm the Order Before finalizing your lumpsum order, take a moment to review the details. Double-check the investment fund, the lumpsum amount, and any applicable fees or charges. It's crucial to ensure accuracy to avoid any unintended mistakes. Once you are satisfied, click on the "Confirm" or "Place Order" button to proceed. The app may also provide a summary of the order for your reference.  Monitor Your Investment Congratulations! You have successfully placed a lumpsum order on the EduFund app. Now, it's essential to stay informed about your investment. Utilize the app's tracking and reporting features to monitor the performance of your chosen fund. The app may provide real-time updates, including the current value of your investment, performance charts, and transaction history. Regularly reviewing your investments can help you make informed decisions and adjust your strategy if needed.  Explore Additional Features and Tools  While placing a lumpsum order is a significant step, the EduFund app offers a range of additional features and tools to enhance your investment experience. Take some time to explore these options within the app. You may find features such as goal tracking, portfolio diversification suggestions, educational resources, and personalized investment advice. These tools can help you make more informed decisions and optimize your education fund.   Set up Automatic Contributions To maximize your savings and maintain a consistent investment approach, consider setting up automatic contributions on the EduFund app. This feature allows you to schedule regular transfers from your linked bank account into your education fund. By automating the process, you can stay disciplined and ensure a continuous investment effort without manual intervention.  Stay Informed About Market Updates Education funds are subject to market fluctuations, and staying informed about the latest market updates is crucial. The EduFund app may provide access to news articles, market analysis, and economic trends. Keeping an eye on these updates can help you make timely adjustments to your investment strategy and take advantage of potential opportunities.  Seek Professional Advice if Needed While the EduFund app offers user-friendly features and guidance, it's always wise to seek professional advice if you have complex investment needs or specific financial goals. Consider consulting with a financial advisor or an investment professional who specializes in education savings. They can provide personalized advice tailored to your unique circumstances and help you make informed decisions regarding your lumpsum order and overall investment strategy.  Regularly Review and Adjust Your Investment Strategy As your education fund progresses, it's important to regularly review and adjust your investment strategy. Life circumstances, financial goals, and market conditions can change over time, and it's essential to adapt your approach accordingly. The EduFund app can assist you in evaluating your portfolio performance, making necessary modifications, and ensuring your investments align with your evolving needs.  Conclusion Placing a lumpsum order on the EduFund app is just the beginning of your education savings journey. By exploring additional features, setting up automatic contributions, staying informed about market updates, and seeking professional advice when needed, you can optimize your investment strategy. 

Are you eager to invest in your child's education? Look no further than the EduFund App! In this guide, we'll walk you through the simple steps to start a Systematic Investment Plan (SIP) on the EduFund App, ensuring a secure and convenient way to save for your child's future. Let's get started!  https://www.youtube.com/watch?v=tdwqQH0xkFw Download and Install the EduFund App  To begin, visit your device's app store and download the EduFund App. Once the installation is complete, launch the app and create a new account. Include any necessary information, such as your name, address, and preferred login information.  Playstore App App Store Complete the KYC Process  To comply with regulatory norms, the EduFund App requires you to complete the Know Your Customer (KYC) process. This step involves providing essential identification and address-proof documents. Simply follow the instructions on the app, upload the necessary documents, and wait for verification.  Link Your Bank Account  To facilitate seamless transactions, link your bank account to the EduFund App. Enter the required bank details securely within the app's interface. Ensure that the information provided is accurate and up to date to avoid any payment or withdrawal complications.   https://www.youtube.com/watch?v=wEA3dKj7q5U Explore Investment Options  After setting up your account and completing the necessary verifications, it's time to explore the available investment options. The EduFund App offers a range of SIPs specifically designed for educational purposes. Take your time to study the different plans, their returns, and associated risks. Consider factors such as investment duration, affordability, and your financial goals.   Select the Desired SIP Plan  Once you have evaluated the available options, select the SIP plan that best aligns with your investment objectives. Pay attention to factors such as the SIP duration, minimum investment amount, and expected returns. The EduFund App typically offers various SIP durations to suit different investment horizons.   Set the Investment Amount and Frequency  After choosing the SIP plan, specify the investment amount you wish to contribute regularly. Select a frequency that suits your financial situation, such as monthly, quarterly, or annually. It's important to decide an amount that you can comfortably invest over the chosen duration to maintain consistency.  Review and Confirm  Before finalizing your investment, review all the details thoroughly. Double-check the chosen SIP plan, investment amount, frequency, and duration.  If everything appears accurate, proceed to confirm your investment.   Monitor and Adjust  Once your SIP investment is confirmed, keep a close eye on its progress using the EduFund App. Regularly monitor the returns and review the performance of your chosen plan. If required, consider adjusting the investment amount or frequency in line with your evolving financial situation and goals.  Automate Your SIP Contributions  To ensure consistency in your savings, take advantage of the automation feature offered by the EduFund App. Set up an automatic deduction from your linked bank account on the specified date of each month. This way, you won't have to worry about manually making the contributions and can stay committed to your investment plan.   Benefit from Rupee Cost Averaging  One of the advantages of SIP investing is rupee cost averaging. As the market fluctuates, your fixed investment amount buys more units when prices are low and fewer units when prices are high. Over time, this strategy can help reduce the impact of market volatility and potentially enhance your long-term returns.   Consider Portfolio Diversification  While investing in a SIP, it's essential to diversify your portfolio. The EduFund App may offer various SIP plans, including equity-based, debt-based, or balanced funds. Diversification helps spread the risk and allows you to benefit from different asset classes. Consider diversifying your investments based on your risk appetite and investment goals.   Rebalance Your Portfolio Periodically  As time passes and market conditions change, it's advisable to review and rebalance your portfolio periodically. Some SIP plans may require adjustments based on the performance of different asset classes. Rebalancing ensures that your investments remain aligned with your risk tolerance and financial objectives.   Leverage Tax Benefits  Certain SIP investments may offer tax benefits under Section 80C of the Income Tax Act. Educate yourself about the tax implications of your chosen SIP plan and take full advantage of any applicable deductions. Consult with a tax advisor or refer to relevant tax guidelines to maximize the tax benefits available to you.   Stay Informed and Seek Professional Advice  Keep yourself updated on market trends, economic developments, and any changes in regulations that may impact your SIP investments. The EduFund App may provide resources like market insights and educational materials to enhance your financial knowledge. Additionally, consider consulting with a financial advisor to receive personalized guidance and ensure that your investment strategy remains aligned with your goals.   Stay Committed for the Long Term  SIPs are designed to be long-term investment vehicles. Stay committed to your investment plan and avoid making impulsive decisions based on short-term market fluctuations. By maintaining discipline and adhering to your chosen SIP duration, you increase the potential for achieving your desired educational savings goals.  Starting a SIP on the EduFund app is a convenient and reliable way to save for your child's education. By following the step-by-step process outlined in this guide, you can set up your SIP with ease and begin building a solid educational fund.  

Investment advisors say this all the time - Save smartly, Save for your child's college. Saving for your child’s college education is a financial project in its own right. It requires planning, research, investing, and consistency. There are several things you need to do to ensure you have the necessary funds when you need them. Let’s understand why you need to save before understanding where, how, and how much! Why saving for your child’s college is important? The reason why you need to save is education inflation. Just to give you a heads up on the costs, as of 2022, a four-year undergrad course in the US can cost you anywhere from Rs. 70 lakhs to Rs. 1 crore, while a 2 year's master will cost you Rs. 60-70 lakhs. Other countries are comparatively cheaper. So, if you start working with the US figures, you are fairly well taken care of for the other countries. Yes, the amount may seem huge and it will keep going up over the years, but if you start well in advance, you will have the power of compounding working for you. And with the right investment strategies, putting together the corpus you need is quite achievable. Source: Pixabay How to start saving? 1. Collect information · Start Early: Your kid is bound to go to college, whether in India or abroad so start early! · Select the country: Pick a country that you know you will be comfortable sending your child to when the time comes. · Identify the universities: Get a handle on the kind of universities you would like to send your child to, and work out ballpark numbers in terms of fees, years of study, etc. · Talk to your friends: Even if your child is really young yet, start speaking to parents who have recently sent their children overseas. There are several insights that you will get when you speak to someone who has actually walked the path you wish to traverse. 2. Chat with a financial planner · Talk to experts: Once you have a fix on the funds you need to accumulate to send your child overseas, have a serious chat with your financial planner. · Set your goals: Define your goals, and strategies that will help you put together the corpus you will need and exceed it by a bit as well. · Plan your funds: Take inflation, currency exchange rate, and rising education, and travel costs into consideration. 3. Choose your investment instruments carefully 1. Long-Term Investments: (12 – 15-year horizon) You can consider investing in equities, and stocks. These instruments can give you high returns as the stock market grows over the decade. But these are also high-risk investments. You must have the patience to stay invested even when the market indices fall, for ultimately, they do go up. That is why you need a longer horizon to invest in these instruments: so, you can wait for the markets to correct and get the best return on investment. You can also balance the risk with investment in a provident fund, which gives one of the highest rates of return in the fixed-return market. 2. Mid-Term Investments: (7–11-year horizon) If this is your investment horizon, Mutual funds are your best bet. You can choose a basket of mutual fund schemes that are best suited for your kind of risk appetite: there are funds that invest in equities, small-cap, mid-cap, and blue-chip companies, and also debt funds. The last two are quite safe and give you better returns than the standard savings or Fixed deposit options. You must note that mutual fund investments are dependent on the market movement and will be impacted by the rise and drop in the indices. But compared to Equities, they are less volatile and the good ones are known to outperform the market index over a long period of time. 3. Short-Term Investments: (4 – 7 years) If you will be requiring the funds within the next few years, you must invest carefully ensuring your capital is protected at all times and the investment can earn you some additional benefits beyond the Fixed deposit rates. You can invest in debt instruments and bonds directly or invest in debt mutual fund schemes. These are quite safe and can earn you better interest than your regular savings options. But do keep in mind, that most of these also come with a lock-in period, so check that out before you commit your money. Apart from the capital market instruments, families also look at the traditional avenues of investment to block their monies. Real estate, gold purchases, gold bonds, and real estate mutual fund schemes are some of the other options that can be considered for long-term investments. Financial planning can be tricky if you are just starting out. With so many saving and investment opportunities, it's important to understand which ones will help you get to your goals faster. So, don’t shy away from seeking help and building a strong saving plan! FAQs Why saving for your child’s college is important? The reason why you need to save is education inflation. Just to give you a heads up on the costs, as of 2022, a four-year undergrad course in the US can cost you anywhere from Rs. 70 lakhs to Rs. 1 crore, while a 2 year's masters will cost you Rs. 60-70 lakhs. The cost of education is rapidly increasing in India - it takes roughly Rs. 30 lakhs to raise a child in India till the age of 18 years. This cost is likely to increase and investments can help you keep up with the fees and other expenses. What is the best way to invest for your child's college? The best way is to invest via equity based mutual funds if you have a long-time horizon like 12 to 15 years. Based on your investment period, you can choose an investment plan that can get you closer to your financial goal and send your child to a college of their choice. How to start saving for your child's college? · Start Early: Your kid is bound to go to college, whether in India or abroad so start early! · Select the country: Pick a country that you know you will be comfortable sending your child to when the time comes. · Identify the universities: Get a handle on the kind of universities you would like to send your child to, and work out ballpark numbers in terms of fees, years of study, etc. · Talk to your friends: Even if your child is really young yet, start speaking to parents who have recently sent their children overseas. There are several insights that you will get when you speak to someone who has actually walked the path you wish to traverse. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

In the previous article, we discussed what is a better asset to invest in a child's future. It is common knowledge that parents should start investing in a child's education. But when should you start? How do you start? In this article, we will talk about when to start investing in a child's education. Saving up for children's education is a daunting task for parents. The question "When should you start to save for your child/children's education has a universal answer. The answer is "as early as possible".   Every parent aspires to provide their child with the most extraordinary life possible. Parents, particularly when it comes to their children's education, are always looking for methods to stay one step ahead.   Parents who take a proactive approach and invest methodically from an early age can protect their children's futures. As a result, financial planning is critical for achieving a goal as important as supporting a child's education.   https://www.youtube.com/watch?v=wUiUws6L2aY Time is the most critical component. The powerful notion of compound interest benefits you more the longer you invest.   Education costs are rising faster than inflation. As a result, the expense of sending your child to a university or college will almost certainly double every six to seven years.  Tax Benefits of Investing in Child's Education Read More An undergraduate course at the Indian Institute of Technology (IIT) costs around 2 Lac per year. The IIM charges roughly 20 lakhs for a two-year diploma program.   Starting investing early is the only way to protect your wealth against inflation and save enough money to send your child to a prestigious college.   While the annual rate of return and the original investments are essential, the length of time you invest the money is the most crucial element. So, if you want to put money aside for your child's education, get started immediately.  Example   Let us take an example to understand why you should not delay the investments for your child's future education:   Two mothers, Anita and Archana, want to save for their respective daughter's education. Both intend to save money and invest a lump sum of Rs 2,00,000 in equity-focused mutual funds (offering 12% per annum yearly returns).   However, the difference is that Archana made the lumpsum investment when her daughter turned ten years old, while Anita invested as soon as her daughter was born.   So, the time horizon for Archana is eight years and the time horizon for Anita is 18 years. Let us see the difference between the accumulated amount at the end for both mothers.    Anita will have Rs 15.3 lakhs for her daughter's college by the time she is 18, while Archana will have only approx. Of Rs 4.9 lakhs. In other words, by investing ten years sooner, Anita could save over three times as much as Archana.  The visual below gives a good representation of the example:  In the above example, Archana and Anita put money into the same mutual fund. The amount they invested and the rate of return were identical.   The only variation was the investment period. Anita continued to save for another ten years, but her final corpus was three times that of Archan.    For savers hoping to build money through compounding, time is everything. FAQs When to start investing in a child's education? Ideally, parents should start investing in their child's education before they are born. This can help them keep up with the rising costs of education which is growing at a faster rate of inflation than income. Planning, investing, and saving for a long duration allows one to take advantage of compounding. Why parents should invest early in their child's education? Parents should invest early in their child's education because education is costly. The cost is increasing every year due to high competition and education inflation. Saving and investing early on can help them take advantage of investment assets like mutual funds, ETFs, and stocks that can beat inflation and help them preserve the value of their money. What age is too late to start investing in your child's education? It's never too late to start investing. You can start with low-risk investments that can help you save up more in a short duration. You can consult a financial advisor to figure out your options based on your risk appetite. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Why invest early? - is a question that plagues most young adults. Many research and polls demonstrate that the sooner you invest, the better off you are. The best time to invest is during or after college when you are in your early 20s.   Investing early in life teaches you financial independence and discipline. Early investment explains the proper distinction between investing and saving.   Never consider your age to be a barrier to investing. You are never too young to do so. You will have more money in your pocket in the future if you invest a tiny bit of money from today onwards.   Investing early is advantageous because you can plan your investments and give them enough time to grow into a corpus that can meet your financial goals.   If you are a young investor looking for inspiration or wondering if it is a good idea to start investing early, here are some of the best reasons.   Reasons to start investing early 1. Save more Starting early, you will acquire the habit of saving more when you start investing at a young age. The more you invest now, the more you will receive in the future.   As a result of that cognitive process, you tend to save more by reducing unnecessary expenses on your part and investing the money you save.   2. More recovery time If you invest early, even if you lose money, you will have more time to recover your losses.   An investor who begins investing later in life, on the other hand, has less time to recuperate for his losses. As a result, if you invest earlier, money has more time to rise in value.   3. Time value of money Compounding gains arise from early investments. Money has a temporal value that increases with time. Regular savings started at a young age can pay off handsomely when it comes time to retire.   Furthermore, early investing allows you to enter the world of finance sooner. With time, your money will increase in value. You can buy items that others may not be able to afford at that age because of early investments - putting you ahead of those who would instead invest later in life.   Source: Pexels 4. Polished risk-taking ability Young investors are more capable of taking risks than older investors. Adult investors, on the whole, are conservative and desire stability.   Therefore, they reject high-risk investing opportunities. The more the risk, the greater the gain; as the old saying goes, with a tremendous risk-taking attitude, the likelihood of making substantial returns at an early age increases.   5. Not becoming a debtor Investments made young can be pretty beneficial. Whenever you need money, you will have it in surplus. You will never need to borrow money or become someone's debtor if you have enough money invested with you.   When you have money parked in the correct investment channels at the right age, you can lend it to others; that is, you can instead become a creditor.   6. Solid corpus for achieving the big dream Early-age investments enhance the probability of reaching financial stability at a very young age.   If you start your saving and investing journey at the age of 20, you will have a perfect corpus by the age of 40 to 50, and you will also have a better idea of how your investments worked out.   Post that, you will have a corpus big enough that you will be able to take care of that dream house of yours or have a good retirement life. With technology at a younger age, you invest in avenues that can give high returns.   Investment in self-research will give you confidence and help you make many bold decisions in life. So, the earlier you start, the easier it is to build wealth.  The example below shows how beneficial it is to embark on your investing journey early in life.  Example:   Ram invested Rs 2,000 per year in balanced mutual funds between the ages of 24 and 30; he earned a 12 percent after-tax return, and he continued to make 12 percent per year until he retired at age 65.   Shyam also invested Rs 2,000 per year and earned the same return, but he waited until he was 30 to start and continued to invest Rs 2,000 per year until he retired at age 65.   It is difficult to imagine at the end of the age of 65; both would end up having 10 Lakhs. But Ram had to invest only Rs 12,000 (i.e., Rs 2,000 for six years), while Shyam had to invest Rs 72,000 (Rs 2,000 for 36 years) or six times the amount that Ram invested to delay his investment by six years.   If you expect an annualized return of 18% on your investments, it means that after four years, your money will double, your investment will multiply four times in the next four years, and so on.   This shows how compounding has a significant positive impact in the later stages of the investing cycle. As a result, you must keep your money invested for longer so that the force of compounding can help you become wealthy.   There is a significant difference between investing from the age of 18 and starting to invest at the age of 28. The gap of 10 years between these two starting points will have a tremendous impact on the wealth corpus you will have at the end of your investment period.   The more you can compound interest on your investment, the faster investment will accumulate and the better off you will be when you retire and start enjoying your savings. So early investments in your career will help you build a secure future.  FAQs Why is it beneficial to start saving and investing early on in life? Save more More recovery time Time value of money Polished risk-taking ability Not becoming a debtor Solid corpus for achieving the big dream Why is it important to invest early on? It is important to invest early on because it is the best way to meet your financial goals on time. Investing early gives you benefits like the ability to stay invested for a long time, mitigate risk over a period of time, and even expand your investments as you grow old. Is 25 too old to start investing? No, it is not too old to start investing. You can start investing in different equities classes whenever you have the money and financial expertise to start. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

In the previous article, we discussed Mutual funds vs. FD to find out which is a better asset for your child's future. In this article, we will talk about Saving vs. Investing. Savings and investing involve different goals and functions in your financial strategy.   Saving money entails depositing money in secure, liquid accounts, whereas investing entails purchasing assets, such as stocks, to make a profit.   Before you start your journey to riches and financial independence, you must understand this fundamental difference.   Difference between Saving vs Investing   Saving money implies putting away money by depositing it in highly secure securities or accounts. The money is also liquid, which means it can be turned into cash quickly.   Above all, your cash reserves must be there when you need them. They must be ready for use to meet all your immediate needs and wants. Some examples are: keeping money in cash form, in a savings account, etc.  Investing money refers to utilizing your cash or capital to purchase an item you believe has a fair chance of creating an acceptable return over time.   Investing is to increase your wealth, even if it means going through significant volatility for months or even years. Actual investments have the backing of a margin of safety, usually in assets or earnings from the owner.  Stocks, bonds, and real estate are some of the best investment instruments.   Basis of Distinction Investing  Saving Definition The exercise involves investing the money saved so as to generate profits and capital appreciation The income or money left at hand after meeting all expenses Purpose The purpose of investing is capital appreciation and wealth creation. Investing in your alpha tool, which fights increasing inflation and helps you create wealth. The purpose of saving is to meet short-term and long-term requirements. And also, to tackle unforeseen events. Saving is the foundation of your investment portfolio. Returns The biggest advantage of investing in high returns is that it provides some exposure to market volatility as well. If you are a risk-averse investor or have a little risk appetite, you can choose to invest in debt funds. Saving is not done with the view to generating returns. Since there is negligible or little risk involved with the money, there is very little return - generally, a percentage or two on the instruments where you save your money. Risk Investing has its fair share of risks involved because of the market volatility, the risk and return depend on the mood of the market in general. Saving money has no volatility risk. The thing that can possibly happen with your money is that it can diminish in value owing to rising inflation. Liquidity Investments vary in liquidity depending upon the instruments.  Liquidity is the primary purpose of saving.  An important difference   The most significant distinction between saving and investing is the Risk Factor. When you place your money into a savings account, such as a money market account or a certificate of deposit, you are saving.  It has a very low danger of losing money but has very little chance of making money. When you save money, you have access to it as and when you need it.   When you invest money, you have the chance to make higher long-term profits or rewards. But you also have an opportunity to lose money. You can take on more risk for a higher return, but your potential loss is also more significant.   It is critical to assess your objectives to determine which alternative is ideal.    Making the wrong decision can cost you a lot of money in fees or even result in a loss of future investment revenue. Another distinction is interest or profit.   The primary purpose of investing is to make money, whereas the motive of saving is to keep money secure while earning relatively little.  Saving vs. Invest: Which comes first?   Almost often, saving money comes before investing money. Saving is the foundation upon which your financial dreams are based.  The logic is simple - unless you possess a certain sum of money, you will need to rely on your savings to fund your investments.   In rough times when you need money, you'll probably have to sell your investments at bad possible times, and that is not a prescription for financial success.  As a rule of thumb, your savings should be able to cover at least three to six months of your expenses - usually known as an emergency fund.   You can start investing until you have things in place, such as an emergency fund, health insurance, and life insurance.   You will benefit from significant tax cuts with the help of these instruments like insurance. You will also have a safety net to bear volatility even in your investments.   Which one is for you?   There is no particular answer to this question because saving is a means to your investment journey. If you have good savings and if you can generate a safety net around your wealth, you can start investing that day itself.   It all depends on your planning, your needs, and your future goals. Make your decision wisely and choose the instruments carefully. FAQs Which is better, investing or saving? Savings and investing involve different goals and functions in your financial strategy. There is no particular answer to this question because saving is a means to your investment journey. If you have good savings and if you can generate a safety net around your wealth, you can start investing that day itself. What are the benefits of investing? Investing money refers to utilizing your cash or capital to purchase an item you believe has a fair chance of creating an acceptable return over time. The returns an investment generates are the biggest advantage of investing, but investing involves some amount of risk. Which comes first, investing or saving? Almost often, saving money comes before investing money. Saving is the foundation upon which your financial dreams are based. The logic is simple – unless you possess a certain sum of money, you will need to rely on your savings to fund your investments. What is the difference between saving and investing? The most significant distinction between saving and investing is the Risk Factor. When you place your money into a savings account, such as a money market account or a certificate of deposit, you are saving. It has a very low danger of losing money but has very little chance of making money. When you save money, you have access to it as and when you need it. When you invest money, you have the chance to make higher long-term profits or rewards. But you also have an opportunity to lose money. You can take on more risk for a higher return, but your potential loss is also more significant. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

In the previous article, we discussed investing in the 30s. In this article, we will discuss how long should you invest in SIP. SIP (Systematic Investment Plan) is a method of investing that requires consistency in investments, even if the amount is small. It focuses on time and requires the compounding cycle to continue without any breaks. If the investment is made in a SIP format, the investor can take advantage of rupee-cost averaging over the long term to gain better returns on average.   Periodic investment also reduces volatility and can help in accumulating a sizeable corpus. SIPs usually allow you to invest weekly, quarterly or monthly.  An important question that plagues the topic of discussion is the duration of your SIP. Though it is a subjective question that depends on person to person, is there some ideal duration for running your SIP?  To answer the above question, we must understand that SIP is not an investment instrument, but it is a way to invest your money, opposite to a lumpsum investment.   Source: Pexels What is the ideal duration to invest in SIP? Ideally, the longer you stay invested, the better it will be to grow your wealth because of the cost of investment averaging out in the long term.   Another essential thing to keep in mind is that the period of your SIP can be different from your holding period. For example, you might stop your SIP after five years but remain invested for 10-15 years.   Investments in mutual funds, stocks, etc., do not require you to pull out your capital from the market immediately after your tentative investment period is over. The investment period will depend upon the goals and objectives that you aim to fulfill.  For example, if you are investing to buy a car, you may need to save for 3-4 years depending upon the monthly payment you plan to make. Your retirement planning needs more careful consideration, given that a considerable amount is required compared to usual expenses.  Benefits of long-term SIP investment strategy According to the Value Research team, SIPs can be said to be truly safe for close to 4 years and above. The study found that, on average, the risk of loss when an investment is undertaken for more than four years (investment done with due diligence) is negligible. Interestingly, the risk of loss and the chance of a high windfall gain is higher in the short run.   Over long periods, the maxima and the minima get averaged out. For example, consider the following fund with a multi-decade history; overall possible one-year periods, the maximum and minimum returns are 160% and 57%, respectively.   For two years, it is 82% and 34%. Over five years, 54% and 4%, never meaning a loss. Over ten years, the maximum is 30%, and the minimum is 13% (all annualized figures).   Thus, the comparison is obvious – the shorter the period, the higher the potential gain, but the worse the possible risk.  We get a good answer from the above data: we must carry on our SIPs for at least 3 to 4 years; some lumpsum additions in between can be beneficial for your portfolio.  It is vital to keep your investment objective in mind while deciding how long you wish to run your SIP. FAQs Is it good to invest in SIP for 20 years? Yes, 20 years is a good long-term horizon to stay invested in SIP. The longer you stay invested, the better the returns on your initial investment. When should I quit SIP? If a fund is consistently underperforming, it might be a good reason to stop investing. Another reason could be that the mutual fund and its performance no longer meet your financial goals. This is why it's important to revisit your portfolio and update it so that it can align better with your financial goals. Is it OK to start investing at 30? Yes, it is a good idea to start investing at 30 years of age. It is never to late to start investing your money towards your financial goals. You can consult a SEBI- registered financial advisor and get the best advice to make a success. How can I build my wealth at 30? Here are some ways to build your wealth at the age of 30- Create an emergency fund Become debt-free Align investments with life goals Beating inflation Do not fear risk Do not disregard liquidity Invest continuously Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

In the earlier article, we discussed the Step-up SIP calculator. In this article, we will talk about the SIP calculator. SIP stands for Systematic Investment Plan. It is a method of investing that requires consistency in investments, even if the amount is small. It focuses on time and needs the compounding cycle not to break.   The amount invested in an SIP format allows the investor can take advantage of rupee cost averaging over the long term and thus, get better returns on average.   Periodic investment also reduces volatility, and you can accumulate a sizeable corpus. SIPs usually allow you to invest weekly, quarterly, or monthly. What is a SIP calculator?  A SIP calculator is a tool that will help you to get a basic idea about the returns that you can generate through your investments.   It provides you with a rough estimate and a road ahead to achieve your financial goals based on a projected annual rate of return. With the help of a few numerical inputs, a SIP calculator makes your work easier by solving complex financial problems in no time. The calculator will calculate the increase in wealth and the expected return for your SIP investment.  How does a SIP calculator work?  The SIP calculator calculates the potential return with the help of the compound interest formula.   The working formula is as follows: M = P x ({[1 + i] n - 1} / i) x (1 + i) To calculate your SIP returns, you need to input the following values:  Monthly investment amount (that you wish to invest consistently)  Expected rate of return The investment periods The formula mentioned above has the following components  M = Total Amount you will receive on maturity.   P = Amount of money that you will invest periodically (at consistent time intervals)   n = Number of payments you make as an investment   i = Periodic expected rate of interest on your investment  Let us see the working of the above formula through an example  For example, you want to invest Rs 10,000 monthly for seven years with an expected rate of return equaling 12% per annum (so, the monthly return will be 12%/12 = 0.01).  Plugging these values in the formula, we get M =10,000({[1+0.01]  {84}-1}/0.01) x (1+0.01) = Rs. 13.19 lakhs.   The best thing about this calculator is changing the variables' values according to your investment goals and requirements. Source: EduFund How will a SIP calculator help you?   Trying to estimate what you wish to receive at the end of your investment tenure is an essential task. It depends upon how much return you expect on your investment and how much are you willing to invest.  The SIP calculator helps you to  Get instant results about your investment scenario with a single click   It tells you the estimated potential returns   Allows you to compare various SIP options by varying the inputs in the formula  Assists you in making well-informed and calculative decisions regarding your investments   Free-of-cost calculation   You can use a SIP calculator in multiple ways. It can be used backward to obtain the periodic investment amount, given your final wealth requirement, investment period, and expected return rate. Thus, a SIP calculator is a helpful tool for taking your investment journey a step ahead. FAQs What is a SIP calculator? A SIP calculator is a tool that will help you to get a basic idea about the returns that you can generate through your investments.   It provides you with a rough estimate and a road ahead to achieve your financial goals based on a projected annual rate of return. How will a SIP calculator help you? Trying to estimate what you wish to receive at the end of your investment tenure is an essential task. It depends upon how much return you expect on your investment and how much are you willing to invest. What are the benefits of a SIP calculator? Get instant results about your investment scenario with a single click   It tells you the estimated potential returns   Allows you to compare various SIP options by varying the inputs in the formula  Assists you in making well-informed and calculative decisions regarding your investments   Free-of-cost calculation Are SIP calculators correct? A SIP calculator is a tool that will help you to get a basic idea about the returns that you can generate through your investments.    It provides you with a rough estimate and a road ahead to achieve your financial goals based on a projected annual rate of return.   Can I withdraw SIP anytime? You can withdraw your SIP amount anytime you feel like funding the financial needs for which you were investing in the first place. Is SIP 100% safe? SIP is one of the best investment tools to invest in the long term. SIP is the best tool for beginners to invest. Like any other investment, SIP also carries some amount of risk. How do you calculate SIP with an example? The SIP calculator calculates the potential return with the help of the compound interest formula.    The working formula is as follows: M = P x ({[1 + i] n – 1} / i) x (1 + i)   To calculate your SIP returns, you need to input the following values:    Monthly investment amount (that you wish to invest consistently)    Expected rate of return   The investment periods   The formula mentioned above has the following components    M = Total Amount you will receive on maturity.    P = Amount of money that you will invest periodically (at consistent time intervals)    n = Number of payments you make as an investment    i = Periodic expected rate of interest on your investment    Let’s see how the formula works via an example    For example, you want to invest Rs 10,000 monthly for seven years with an expected rate of return equaling 12% per annum (so, the monthly return will be 12%/12 = 0.01).    Plugging these values in the formula, we get M =10,000({[1+0.01]    {84}-1}/0.01) x (1+0.01) = Rs. 13.19 lakhs. TALK TO AN EXPERT

The 30s are very crucial for you as an investor. In this article, we will try to understand the best way to start investing in the 30s.   Steps to take before investing   1. Create an emergency fund The first and foremost thing you need to do is create an emergency fund that will assist you in times of urgent need. Ideally, the emergency fund should be equivalent to 6- 8 times your monthly expenses.    2. Become debt-free Tension-free and full-fledged investments are possible when you are not reeling under your loans. In the case of personal loans like credit card bills, try to clear them off on or before the due dates.  What should be your investment strategy?   1. Align investments with life goals The 30s is that juncture of life where you have a lot to do ahead –in terms of responsibility and achievement. For this reason, you need a detailed time log of what you intend to do in the upcoming decades before you define your investment strategy. In general, some big-ticket expenses are your marriage, your kids’ future studies (maybe 15 years later), and planning your retirement. At this age, your portfolio should have a subtle combination of equity and debt to suit your long-term goals.   2. Beating inflation In your 30s, you still have time to get rich and enjoy the luxuries of life. So, you should put the investible money into assets that will beat inflation. Inflation is your enemy so treat it like one, and thus, do not invest your money (for growth purposes) into assets that do not even match inflation such as FDs and savings bank accounts. You should aim at investing in stocks and mutual funds or even real estate (if you have the proper knowledge and guidance).   3. Do not fear risk At this time of life, the risk is synonymous with living in terms of a career or investments. Risks depend on your appetite; if you wish to obtain asymmetric returns, you have to take asymmetric risks. However, you must have the potential to manage the risk (an emergency fund). Managing risk implies diversifying your investment portfolio by placing your money into various asset classes and reviewing your portfolio to check for risks.   3. Do not disregard liquidity Liquidity is a vital factor to consider. While investing, you must ensure that your investments are not tied entirely to illiquid assets, which might create problems in times of distress.   4. Invest continuously Continuity and patience will reap the highest benefits in your investments. The longer you remain invested, the more you can benefit from the power of compounding and through the systematic accumulation of stocks/mutual fund units over a long period.  FAQs Is it OK to start investing at 30? Yes, it is a good idea to start investing at 30 years of age. It is never too late to start investing your money toward your financial goals. You can consult a SEBI-registered financial advisor and get the best advice to make a success. How can I build my wealth at 30? Here are some ways to build your wealth at the age of 30- Create an emergency fund Become debt-free Align investments with life goals Beating inflation Do not fear risk Do not disregard liquidity Invest continuously Is 32 too late to invest? No, 32 is not too late to invest. Be sure to connect with an expert who is SEBI-registered with ample finance experience to guide you on how to invest properly. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

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

Every year, schools increase their annual fees in India. The average school fees in India range between Rs. 50,000 to 1,00,000 per annum. 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. 5 ways to save for your kid's dream college! https://www.youtube.com/shorts/N6RKPu_zoY8 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. 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. https://www.youtube.com/watch?v=OQlg-E5rhBM&t=4s 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.