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Once you have a clear understanding of the benefits of mutual funds and have decided to begin investing, you may look for the appropriate mutual fund schemes to help in your financial growth. Various mutual fund categories are suitable for different investment horizons, assume multiple amounts of risk, and seek different rates of return. So, the first thing you should do is decide clearly on specifics like how long you would like to invest, how much risk you would be able to face, and what type of profits you want. When you are certain of these basic points, it will be easier for you to choose the category of mutual fund scheme that is best for you. https://www.youtube.com/watch?v=uYlrsx9_yog&pp=ygUHZWR1ZnVuZA%3D%3D 1. Your mutual fund KYC According to the Prevention of Money Laundering Act (2002), the Know Your Customer (KYC) procedure is required for all financial institutions, including banks, insurance companies, and mutual fund firms. Simply put, the KYC procedure involves checking the background of anyone who wants to sign up as a client of these financial organizations. Establishing authenticity and making sure that the investments or deposits are made by a real person with valid identification is important. KYC can also assist in tracing any fraudulent transactions. 2. Start investing in mutual funds You can begin investing in any mutual fund company's schemes after your KYC is complete. You don't need to do many KYCs for various mutual fund companies. You can invest using either the offline mode or the online option Start Investing in Mutual Funds 3. Investing in mutual funds offline The majority of options for investing in mutual funds in offline mode only offer regular plans of the schemes. A portion of your gains is removed from your investments in a mutual fund’s Regular Plan and paid to the agent. However, there is no broker engaged if you invest in a mutual fund scheme's Direct Plans. As a result, there is no commission to pay, which lowers the expense ratio. The difference between an equity fund's Direct Plan and Regular Plan returns often stays at or below 1%. Over time, this 1% difference may add up to a significant sum. You can invest in mutual funds offline through distributors, banks, and NBFCs by going to the offices of RTAs like CAMS and Fintech, mutual fund companies, etc. Details are as follows: Registered Investment Advisors: To invest in mutual funds offline, you can also get in touch with SEBI-registered financial advisors in your area. You can invest in Direct Plans with them. However, there will be a price. This fee may be up to 2.5% of your capital investment or a predetermined sum of up to Rs. 1.25 lakh. Banks & NBFCs: Mutual fund programs are also offered offline by several banks and non-banking financial companies (NBFCs). To begin your investment journey, you must go to their office and speak with a representative, often known as a Relationship Manager (RM). They do, however, place your money in a Regular Plan so they can profit from your investments for the rest of your life. Therefore, even if the mutual fund schemes are not right for you, the RMs and agents may try to convince you to invest in them so they may earn a bigger fee. Mutual funds Distributors: Reaching out to a specific distributor of mutual funds is an additional offline option for investing in mutual funds. However, your money will be placed in a Regular Plan. Mutual Fund Companies: You could also invest offline by visiting the office of the mutual fund company and investing in the schemes there. The difficulty is that you must complete all the paperwork by yourself. Additionally, you have to go to each company's offices separately if you would like to invest in a few of the best plans offered by various mutual fund businesses. RTA Offices: By visiting the offices of SEBI-registered RTAs like CAMS and Fintech, you can invest in mutual funds in the offline form as well. A group of fund houses is served by CAMS and Fintech alike. As a result, if you go to the CAMS office, you can only invest in the fund firms they work with. How to Track the Performance of Mutual Funds? Read More 4. Investing in mutual funds online Online investing will be significantly quicker and less laborious than offline investing. You can choose a mutual fund that suits your goals by visiting the website of your chosen fund house. Enter the required information and wait for the OTP to arrive on your registered mobile number. After that, you may enter the amount and choose whether you wish to invest via SIP or lump sum. You have two options for making the transaction: using your UPI ID or online banking. For most fund houses, this is standard procedure. However, you will need to sign up to each fund house's website separately if you would want to invest in a few of their plans. However, the EduFund app has a number of mutual fund schemes offered by different asset management companies all in one app. You can choose the option that suits you and begin investing. To go with it, you can also talk to financial experts on the app who will guide you to invest in the right schemes that suit your risk profile and investment strategy. Conclusion The mutual fund market has been working hard to attract additional investors ever since it began. Earlier, completing the documentation for mutual fund investments used to be a laborious process, and completing your KYC required you to travel to an AMC or RTA office. But thanks to the introduction of technology, all of these inconveniences are now gone. It can still be tough to choose the right plan for you. FAQs What are mutual funds, and how do they work for beginners? Mutual funds are investment vehicles that pool money from multiple investors to buy a diversified portfolio of stocks, bonds, or other assets. To start, research, choose a fund, and invest through a brokerage or directly with the fund company. How much money do I need to start investing in mutual funds? Many mutual funds have low minimum investment requirements, some as low as $100. However, the minimum amount can vary, so check with the fund company for specific details. Where can I buy mutual funds? You can buy mutual funds through brokerage accounts, online platforms, or directly from the fund company. Consider factors like fees and convenience when choosing where to invest. What should I consider when selecting a mutual fund to invest in? Consider factors like your financial goals, risk tolerance, fees, historical performance, and the fund's investment strategy when choosing a mutual fund. Are there tax implications when investing in mutual funds? Yes, there can be tax implications, such as capital gains and dividends. It's important to be aware of tax consequences and consult with a tax advisor for guidance.

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

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

As the name suggests, the fund invests in the international market except in the country the investor is residing. International funds invest in foreign companies not listed in the investor’s country. Like we have different funds based on market cap, i.e. large-cap, mid-cap, and small-cap funds. Similarly, international funds invest in different sizes of companies. Types of International Funds International funds are available for Indian investors to invest in. And these funds could have a different approach to investing in the international market. Let’s see the categories: 1. Regional fund These funds invest in the stock market of a specific country or region. Some funds may offer investment in the US market only, and others may offer investment in Asian markets only. The main objective is to gain the maximum benefit from investments in the developing stock market of a specific county or region. 2. Thematic funds These funds invest in a specific theme around the global stock market like artificial intelligence, infrastructure, semi-conductor, etc. The companies in these funds are foreign companies. 3. Global sector funds These funds invest in the focused sector foreign companies to benefit from its development. 4. Global funds Though the international and global funds sound similar, they are not. International funds invest in the world stock market except for the country the investor is residing. On the other hand, global funds invest around the world stock market, including the country the investor resides. Invest in US Market Advantages of International funds 1. Geographical Diversification By investing in these funds, your portfolio can benefit from geographical diversification. There are chances that some countries may outperform other countries. If such a scenario happens, your portfolio will benefit from it. 2. Currency benefit International funds give you the benefit of currency depreciation. Over the period currency, INR has depreciated against the USD. For instance, in 2008, USD to INR was at Rs.40 against $1, but in 2022, USD to INR is at Rs.80 against $1. If you had invested $1 in 2008, you could have only gained 100% on currency depreciation. That’s how currency depreciation helps your portfolio to grow. 3. Global Opportunity The opportunity worldwide is immense, and some world-leading companies have products and services in almost every country. Companies like Apple, Google (Alphabet), Facebook (Meta), etc. International funds provide the opportunity to invest in these companies. Invest in Mutual Funds Factors to consider before investing in international funds There are some essential points that you need to consider before investing: 1. Global exposure  If you want your portfolio to get global exposure, you can consider investing in these funds.  2. Risk International funds are exposed to high-risk factors like currency risk, policy risk, trade risk, etc. All these factors could increase the volatility of the portfolio.  3. Expense ratio International funds could have a higher expense ratio which funds can charge for maintaining the fund. 4. Economy risk Each country’s economy works differently, and all the macroeconomic factors could impact your portfolio returns in both ways, positively and negatively. Who should invest? Investors with a high-risk appetite looking for an opportunity with extra returns and who want to hedge their portfolio against the currency risk should consider investing in these funds. Example of International Fund Name: iShares Core S&P 500 ETF Launch Date: May 15, 2000 Ticker: IVV Index Tracked: S&P 500 Index Performance:  IVVETF Database Category Average1 Month Return11.09%11.05%3 Month Return5.21%5.37%YTD Return-9.26%-14.58%1 Year Return-1.20%-9.01%3 Year Return55.85%34.96%5 Year Return92.84%44.48%Source: etfbd.com Top 5 sectors SectorWeightageTechnology17.70%Electronic Technology15.42%Finance13.21%Health Technology10.44%Retail Trade7.54% Top 10 holdings Holdings% AssetsApple Inc.7.32Microsoft Corporation6.04Amazon.com Inc.3.48Tesla2.09Alphabet Inc Class A2.03Alphabet Inc Class X1.87Berkshire Hathaway Inc. Class B1.51UnitedHealth Group Incorporated1.41NVIDIA Corporation1.30Johnson & Johnson1.20 How can one invest in these funds? The process has become effortless with the EduFund app. Download the app for Android and iOS. And do the KYC process. Add funds and select the fund in which you want to invest.  And place the order. If not sure where to invest, connect with the EduFund team FAQs What are international funds? International funds invest in foreign companies outside the investor's home country, providing exposure to global markets. What types of international funds are available for Indian investors? Indian investors can choose from regional funds, thematic funds, global sector funds, and global funds, each with a unique investment focus. What are the advantages of investing in international funds? Advantages include geographical diversification, currency benefits from depreciation, and the opportunity to invest in world-leading global companies. What factors should investors consider before investing in international funds? Consider factors such as global exposure, risk (including currency and policy risk), expense ratios, and the impact of different economies on portfolio returns. Who should consider investing in international funds? Investors with a high-risk appetite seeking extra returns and looking to hedge against currency risk can benefit from investing in international funds. DisclaimerThis is not recommendation advice, use it for educational purposes only

The mutual fund industry has seen immense growth in recent years. According to numerous statistics, there has been a 5 ½ fold increase in the last ten years. This is simply because seasoned investors have realized the potential of mutual funds and have now started investing in them through SIP or Systematic Investment Plans. The vast universe of mutual funds often seems daunting to new investors because of the large investment horizon and involved risk profile. As such an investor needs to know whether he is investing in the right mutual fund or not and whether the investments can meet his set targets and achieve desired goals. There are normally two ways to go assuming you are interested in investing in the best mutual funds. The first is by yourself and the second is through a financial advisor.  An all-important question at such times is whether an investor has the required know-how to conduct a proper mutual fund analysis and determine whether he is on the right path.  For that, you can take the help of a reputed financial advisor or financial expert. This service is available on the EduFund app where both new and seasoned investors can opt for the services of the SEBI registered investment advisors and experts in investment management for investing in the right fund. The app also helps to stay updated on the mutual fund investment market. Start Investing in Mutual Funds Parameters that help to analyze whether you are investing in the right mutual fund 1. Expense ratio The expense ratio is charged annually by the mutual fund for managing the investor’s money as a percentage of total assets. The expense ratio at the end of the day will reduce the available returns hence the investor must look for mutual funds that have a low expense ratio. Minimize the expense ratio by opting for direct mutual funds as it does not charge broker commission or intermediary fees. Also, compare the expense ratios of preferred mutual funds as it will help to decide whether the investment is the right one or not.  Download App and Start Investing 2. Performance of mutual fund against a set benchmark Each mutual fund scheme has a set benchmark that it tries to outperform. The investor must check for the benchmark to understand the percentage return that is considered a good performance. Compare both benchmark and actual performance to identify whether you have been investing in the right mutual fund. If a mutual fund consistently generates more returns and outperforms the benchmark index then the investor can know that he is doing right by his investment portfolio. SIP Plans for Child Education Read More 3. Level of risk Mutual funds are subject to risk and checking the level of the risk factor for every scheme is as important as checking for the expected returns. The risk is often defined in terms like low, high, moderate, moderately high, and moderately low.  Generally, the schemes disclose the level of risk to make the investor aware of the involved risk factor. Investors must ensure that the higher the risk higher is the return on the investment commensurate with the risk. https://www.youtube.com/watch?v=uYlrsx9_yog 4. Fund’s history Look at the fund’s history to know whether you are investing in the right mutual fund. Knowing about the long-term previous performance of mutual funds is the right step in determining whether the fund has generated good returns over the last few years.  If the fund has seen one or two down cycles over the last five years and has regrouped once again to give solid returns then investors must believe that their investment is at par. Calculate Returns Generated 5. Portfolio turnover ratio The higher the Portfolio Turnover Ratio, the higher the buying and selling of the assets. This leads to higher transaction charges or brokerage fees. The portfolio turnover ratio helps to minimize the net returns from the investment. Investors must calculate the net return and compare funds so that they can know whether their investments are on the right path. 6. Fund manager The mutual fund manager can help in carrying out the necessary due diligence that will boost the chance of better gains. The investor must look at the performance history of the manager to know about his experience in handling mutual fund schemes.  A good reputation of the fund manager increases the investor’s confidence in the related schemes and helps him to know he is investing in the right funds. Conclusion An investor can determine whether he is investing in the right mutual fund if he can achieve higher returns at comparatively less risk. Selecting the right fund might seem a daunting task at the onset but a little research and understanding go a long way in finding the best mutual fund investments. FAQs How do I know which mutual fund is best for me? To determine the best mutual fund for you, consider your investment goals, risk tolerance, investment horizon, and financial situation. Research fund performance, categories, and managers' expertise. Consulting a financial advisor can provide personalized guidance based on your needs and preferences. What type of mutual fund should I invest in? The type of mutual fund you should invest in depends on your goals and risk tolerance. Equity funds offer growth potential but involve higher risk, while debt funds focus on stability. Hybrid funds combine both. Consider your needs and consult a financial advisor for personalized advice. How do you know whether you should invest in a mutual fund? Evaluate your financial goals, risk tolerance, and investment horizon. Research the fund's performance, expenses, and manager's expertise.

Both life and wallet will never be the same once you decide to have a baby. No event in your life will signify financial change quite the way this one does, from the first prenatal appointment to the day of college graduation (and beyond). 5 financial things to consider before child planning 1. Create a budget Before you start child planning, you need to have a budget in place. You and your partner may need to create a realistic budget based on your expenses and your streams of income. Once you know how much you can afford to spend, you will be able to tackle the costs easily. A new child is a new family member that needs space! So if you need extra space once the baby is born, figure out what kind of home you can afford, whether it's a slightly larger apartment, a warm cottage, or a pricey house. Will you want the latest baby things or your sister’s passed-on ones? Think about what sort of child care would you require and get candid with your expenses before you start making any purchases. Money Management Tips for Homemakers Read More 2. Costs associated with birth As new parents, you need prenatal vitamins, alternative therapies, labor and delivery alternatives, and screening tests. Give yourself enough time to change or upgrade insurance plans should you need more comprehensive coverage. Good health insurance is vital in this economy. Hospital bills, medical fees, and maternity costs can be high. According to estimates from the industry, a straightforward delivery could cost between Rs 50,000 and Rs 70,000, but a private specialty hospital could charge up to Rs 2-3 lakh. A cesarean delivery could result in a cost rise of up to Rs 4-5 lakh. Before having a kid, you should make financial arrangements for the costs associated with the delivery and child care. 3. Consider maternity leave The vast majority of Indian employees are not entitled to paid family leave. If the mother is employed, you might need to think about taking a lengthier (unpaid) maternity leave or a sabbatical for a year or two. This can be a huge financial loss for families that rely on both streams of income. Paid parental leave is not always an option. Find out if your workplace offers paid leave for new parents and if there are any policies in your favor that you can utilize. Determine the number of weeks covered and the proportion of your salary that is used. Do you have to use your sick and vacation days first? If you don't have access to paid time off or you're going to take more unpaid time off, you might want to cut costs or rely on your savings. 4. Purchase life and health insurance You'll want your child to be stable financially if something were to happen to you or your partner. A life insurance policy can assist in paying for things like child care, housekeeping, cooking, and more. Purchasing maternity insurance is the first action you can take to cover maternity costs. When purchasing health insurance, (even for a couple), it is important to confirm that the policy includes coverage for maternity costs and, if applicable, any applicable waiting periods. Additionally, by paying a larger rate, you might add pregnancy coverage to a current insurance policy. Buying health insurance is most important when considering having a child. Get your health covered in your plan so that you are not financially burdened in case of a health emergency. 5. Plan for the child’s education Just like the prices of lemons and oranges are growing, the cost of education is skyrocketing. Saving for your child’s college is a necessity. When it comes to saving money for college, time and compound interest are your best friends. Even while inflation is an unavoidable fact, keep in mind that education inflation is far higher. Utilizing the force of compounding is one approach to combat this, but it will only be effective if you have a long-term strategy in place. You indeed have no idea what career path your child will take, but you still need to put aside a portion of capital that can be utilized when the time comes. Right now, you need to think about the type of education you would like to offer because the practical costs of studying engineering in India vs. the US would be very different. From giving birth to seeing them off to college, watching your child grow and thrive is every parent’s dream! So give those dreams wings by planning ahead and investing for their bright future!  TALK TO AN EXPERT

How much I need to save to send my child to Harvard University is one of the top queries of a parent who wants to send his child abroad. Harvard is considered one of the best universities in the world, offering varied graduate and undergraduate programs like business administration, business management, bioengineering, law, economics, arts and science, sociology, etc.  Students dream of studying at this university but only a few with academic excellence are given the chance to step onto the campus to study and fulfill their heart’s desire.  Imagine if your child is one of the selected few who have managed to gain entrance to this top university. But what happens if they are unable to enroll just because they do not have the required funds?  At such times the first thought that crosses the mind of a parent is that it is necessary to plan and save to send my child to Harvard University from an early age. Start Investing in Mutual Funds Steps required to plan and save for sending a child to Harvard University How much I need to save to send my child to Harvard University is a question that can be answered by following the subsequent steps: Know about the current cost of education at Harvard University When your child starts showing an affinity for a specific course it is the right time to start planning and saving for his further studies. Be aware of the cost of studying at Harvard University, for example, on average the fee structure of most of the 3-year and four-year academic courses varies between $50,000 - $70,000 (Rs. 40 to 55 lakhs). Factor in the expected expenses  Tuition Fees:  Identify the tuition fees and the other mandatory fees  Room and board: Most of the students prefer to live on campus as it is less expensive compared to outside accommodations. It also offers easy access to meals, classes, and extracurricular activities which is a blessing for students who have traveled from different parts of the world to this esteemed university Transportation costs: If the student is living out of campus then the transportation cost should also be added to the total cost Food expenses: Factor in the food expense for both on-campus and off-campus scenarios Education inflation: You need to add the inflation rate (minimum 7%) to the total cost. You don’t need to guess - you can calculate this cost by using the College Cost Calculator for Free!  Calculate Cost of studying in College Calculate the average costs Calculate the average costs of studying at Harvard and identify how much money you need to save to send (\your child to Harvard University.  Go through all the expected costs and identify an average amount that you need to shelve out for instance 60,000 dollars (Rs. 47 to 48 lakhs). Now calculate how much time you have before sending your child abroad. Get a rough estimate about the amount you need to save every year, for instance, 60,000 dollars/8 years which amounts to 7500 dollars per year (Rs. 5- 6 lakhs) Effect of compounding Make the most of the compounding as it will reduce the principal amount to a great extent and magnify your returns. If a parent wants to save 60,000+ dollars, she will have to shelve only an average of an estimated 5,500 dollars instead of 7,500 dollars @ 5% interest per annum for eight years. Research the best available saving option that will help to save with better interest rates. Or you can talk to an expert to understand how much I need to save to send my child to Harvard University. It is a step in the right direction as it helps parents to plan and save effectively within their budget with the help of India’s first college cost calculator and with a curated plan to achieve that target.  Plan and start investing Parents who start planning for their child’s future from the very beginning have an additional advantage over parents who realize the importance of saving at a later stage. If you are one of the late investors do not panic, you can still make some well-advised investments that can help you make up for the lost time and get the required help in the planning and saving process for the child’s brighter future at Harvard University. Start Investing in US Market FAQs How much does it cost to send your kid to Harvard? The total annual cost to attend Harvard University, including tuition, fees, room, and board, was approximately $76,000. How much do you need to donate to get into Harvard? Donations to Harvard University, while they can have an impact on the institution, are not a direct means of securing admission. Harvard, like other reputable universities, has a competitive admissions process based on academic excellence, personal achievements, and other factors. Admission cannot be guaranteed solely through donations. Is Harvard expensive for Indian students? Yes, Harvard University's tuition and living expenses can be relatively expensive for Indian students due to currency exchange rates and the overall cost of living in the United States. However, Harvard does offer financial aid and scholarships to international students, which can significantly offset the costs for those who qualify. How do I raise my child to go to Harvard? Raising a child with a strong foundation for potential admission to Harvard involves fostering a love of learning, encouraging curiosity, developing leadership and community involvement, and maintaining excellent academic performance. Focus on their interests, extracurriculars, and character development while also allowing them to explore and pursue their passions.

If you consider Tier 1 cities, then families of these cities spend almost an average of Rs 43,000 annually on the school education of their children. Tier 4 cities spend nearly Rs. 29,000 annually on children's education. In after-school education, an average parent spends 16,000 a year.   If you want to send your child to a quality university, you need to save money regularly for this goal for at least 8 years. Parents have to consider the rising education costs of education, and a suitable university, whether it is foreign or local. You also have to start saving towards living expenses like accommodation, food, transport, etc.  Applying for an education loan is the first option many parents consider when their child is ready for college. While you can opt for an education loan, it is advisable that you start saving money early in different investment schemes so that after 15-20 years, when your child is ready for college, the loan amount is reduced.  Ways to save for child education:  1. PPF Public Provident Fund is considered one of the safe investment options while investing for the long term where the funds are locked for at least 15 years. You can create a PPF account with any bank or post office and start saving your income for a good future return in the coming years. It has the ability to grow your money. The rate of interest of PPF in 2012 was 8.80 % which is now 7.60% in the year 2022.   2. Mutual Fund The fund grows when the market rises. The overall return after a long period comes through stocks, equity, debt, and even from money market funds. You can invest in a (systematic investment plan) SIP for both the short-term and long-term, and it is an efficient tool to save money.  Equity and debt are some securities where investors’ money is invested in mutual funds.  3. Fixed deposit A fixed Deposit is considered a safe investment option though the returns are comparatively low. If you invest a lumpsum amount through FD, you will get a fixed percentage on the amount. The interest rate ranges from 5.75% for regular investors and 7% for senior citizens for 1 year.  4. NPS National Pension System is a government-based savings option. The fund invests in government securities, bonds, and even equity. It provides investors with two options to invest in active and a default auto. In the auto option, the funds are invested in an automatic way. In the active option, the investor invests in the assets of their choice. It matures when the investor turns 60 years. The overall pension withdrawal amount is tax-free as per the scheme.  5. RBI bonds Taxable RBI bonds have a tenure of almost 6 years, and it gives an interest rate of 7.75% per year. It is available in the Demat mode, and it gets credited in the BLA( Bond Ledger Account) of the investor. For proof of investment, the bond is issued at Rs. 1000, and investors even get certificates of holding.  6. Direct equity Direct equity is another investment option to consider while investing in the long term. Though investors find it a risky option, the return is much higher compared to other investments. For 1, 3, and 5 years of investment, the return is 8,13, and 12.5 percent, respectively. source: pexels Hire a financial advisor  If you are still confused about the best savings option for your child’s education, then you can consider talking to the best financial advisors on the EduFund app. The financial advisor will guide you as per your financial needs and risk profile.    The upside is that all this can happen in a matter of minutes and a few taps without any hassle. Parents can take the expert's suggestion and invest the money accordingly to minimize risk and find a way to get a better return on investment. The financial advisors help you rebalance your portfolio on a regular basis to give your funds a better chance of growth when the market sees drastic changes.    Conclusion  As a parent, it is very important to start saving for your child’s education as early as possible to fight the rising costs of education. While applying for a loan is an option, it is wise to reduce the loan amount and save for most of the cost through investment to minimize or avoid the financial burden. FAQs How much do families spend on school education in Tier 1 and Tier 4 cities? Families in Tier 1 cities spend around ₹43,000 annually on school education, while Tier 4 cities spend about ₹29,000 per year. What's the importance of saving for education if you want to send your child to a quality university? To send your child to a quality university, regular savings for at least 8 years are crucial. Rising education costs and living expenses need to be considered. Should parents rely solely on education loans for college funding? While education loans are an option, it's advisable to start saving early through investment schemes. This approach reduces the need for larger loans in the future. Disclaimer:Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

There are many roadblocks to investing as a woman – unequal pay, lack of financial knowledge, lack of personal finance help, the burden of the pink tax, feelings of intimidation and confusion, etc.   But the winds are changing, and more and more women are taking charge of investing their money in personal goals, family, and their child’s education.   The conversation about money, wealth generation and the need to start investing early is finally brewing – let’s see how women can start their investment journey.  Why should women start investing?  Investments are the key to a brighter and financially independent future – whether it's early retirement or financing your child’s Oxford education in 10 years. Investment can help you attain these goals.   In India, the percentage of women investors is very low. According to Financial Express, only 14% of women are investing in mutual funds and 10% in stocks.  Women in India make the mistake of only investing in Gold or Fixed Deposits. The rationale that these investments are safe and secure prevents them from taking risks and aiming for wealth generation.   With the inflation soaring high, women investors who are earning can start investing as low as Rs. 100 every month. This small amount can benefit from the power of compounding and help them save for different goals like a holiday, a degree, a car, or an emergency fund!  Homemakers who have saved up some money can also invest! Starting an SIP for a mutual fund can help you save for different financial needs and get a greater interest rate than any savings account or FD investment. This can go towards their child’s education or a home. The great thing about starting a SIP is that you can pause as well as increase the base sum based on your income and savings! Create Goals before Investing Source: pexels When should women start investing?  ‘Right now,’- is the best time to start. Whether you are 18 or 40, investing can start at any time. Starting early does have its set of benefits but that should not stop you from saving right now. Most young investors enter the market in their 20s and 30s.    If you are new to investing, consult a financial advisor. Talk money with your accountant and understand what are your future goals and what is the best route to achieving them. They can help you invest in a bunch of tools that will not any diversify your wealth generation but also make it less risk-prone.   Consult an expert advisr before investing What kind of investments work better for women and why?  Investments are not gendered; anyone can invest in any investment tool. What matters is your risk profile, investment capacity, and goals. Here are some investments that women can explore:  1. Mutual funds   Mutual funds are a great way to start investing. You can simply begin with a SIP in your favorite fund. This allows you to invest a certain amount of savings every month, this amount is auto-debited from your account every month without the stress of manually investing the sum. Mutual funds are easier to manage than stocks because there is a fund manager to help protect your savings and investments.  2. Exchange-traded funds (ETFs)  An ETF is primarily a basket of assets and securities such as equity, debt, stocks, bonds, commodities, or currencies. You can purchase a unit of these securities, just like buying shares of a company. ETFs are like a cross between stocks and mutual funds, they are traded on the stock exchange and offer the diversification benefits of mutual funds.  3. Stocks  Stocks, known as equities, allow you to own a part of a company. There are shares for TATA, Reliance, Unilever, Nykaa, and thousands more available for investors to pool their money in. You can pick the company you believe will grow in the years to come. Buying stocks is more volatile and riskier in nature. The decision to buy and sell resides with you.     4. US Market  Investing in US Markets is possible for every investor and a great way to add geographical diversification to your portfolio. There are two ways to invest in US markets direct stocks or ETFs. This is an opportunity to make the most of the falling rupee and gain returns in dollars. US markets allow you to do rupee hedging; which means you will have more funds by allocating the same amount of money in dollars than in rupee because of the greater value of US dollars.   If you want to make wise investments then get in touch with a professional financial advisor. They can help you understand the value of choosing investments based on your goals, and risk appetite as well as how to shift your funds from one basket to another when the market fluctuates!   Invest in US Market 5. Investment mistakes to avoid   The biggest mistake a woman can make is not investing! Many women in India shy away from the market because of the fear of risk or knowledge. This decision can be detrimental in the long run and will be a huge hindrance in the face of wealth generation!   6. Fearing loss and not taking risks  Many women and men hurt their chances of wealth generation by playing it safe. They are too cautious and do not allocate enough funds to different assets and lose out on the money they could have accumulated over the years. Thus, don’t be averse to taking risks especially if you have time on your hands.    7. Allowing your partner to make an investment decision  Indian women rely on their partners to make investment decisions for them. To be truly independent, you have to manage your own wealth generation and investment portfolio. Try to be aware of the investments you make and whether they will help you achieve your goals in the future.  8. Putting their money in only physical gold   Gold is a great investment but it should not be your only investment. Indian women spend lakhs of rupees buying gold jewelry as a form of investment but they forget that there are maker charges, storage issues as well as the possibility of loss when reselling the items. Instead, if you are a gold-lover then look at Digital Gold, Gold ETFs, or Bonds to invest. It’s important to only keep some portion of your portfolio dedicated to gold.   9. Keeping cash in savings accounts or fixed deposits  Saving money in accounts or fixed deposits beyond a limit is counterproductive. Banks do not offer a great interest rate, which means your money is losing value against the rate of inflation in the country. Try keeping some money in the bank while a majority in growth-oriented investments like MFs, PPFs, ETFs, Bonds, etc.   Women in India are gradually catching up! With thousands of investment options, young women and men find it hard to remain neutral on the benefits and risks of investments. The only way to make money is to invest money. Investing can not only secure your future, but it can enable you. Enable you to send your child to the best schools or enable you to take that Europe trip. Big or small, investing can help you actualize your dreams faster than any form of wealth creation tool. FAQs Why should women start investing? Investments empower financial independence. In India, only 14% of women invest in mutual funds and 10% in stocks. Diversify from traditional investments to grow wealth. What investment mistakes to avoid? Avoid not investing out of fear. Don't rely solely on partners' decisions. Diversify beyond gold, move beyond savings accounts, and understand that caution can hinder growth. When should women start investing? Start now, regardless of age. Consult financial advisors for personalized plans aligning with goals. Begin with SIPs, mutual funds, and equities, and explore US markets. What investments work better for women? Investments aren't gender-specific. Consider mutual funds for steady growth, ETFs for diversification, stocks for ownership, and US markets for currency gains.

IDCW in mutual fund means Income Distribution cum Capital Withdrawal. It is a dividend option in the market of mutual funds, and one can term it IDCW Mutual Fund.  The change in the name introduced by (the Securities and Exchange Board of India) SEBI became operational in April 2021. Irrespective of the name change, the role of the dividends is the same. As per SEBI regulations, the investors must know that they can use and distribute the income capital as dividends.  Why did SEBI change the dividend name to IDCW?  The term means the distribution of income of a mutual fund scheme. It includes dividends paid by stocks and capital gains made by selling stocks from the scheme portfolio. The name change happened to highlight that the income is coming out of the depositor’s income value, which means the withdrawal of capital.  The term IDCW accurately represents mutual fund dividends and will remove any misunderstanding about mutual fund dividends for the investors as per SEBI.   The highlights of IDCW in mutual funds   The IDCW is mainly selected by investors who want to access a periodic inflow of funds. Note that the IDCW happens at the discretion of the fund manager. There is no specific assurance that it will be declared at periodic intervals.  Investing in an IDCW mutual fund is a great alternative to conventional investment instruments like fixed deposits or savings schemes. Senior citizens and investors who want to access low-risk returns can always consider IDCW mutual funds to brighten their investment portfolios.   Things to consider about IDCW in mutual fund There are many misconceptions floating around this field. Here are some facts that would help you break out of those misconceptions and plan better.   Mutual fund scheme dividends may include the ones received from underlying stocks in the portfolio and profits books by selling those stocks.  The dividends are not an extra income over the redemption profits you’ve made. The dividends, instead, are capital appreciation, which is ultimately paid from your capital. Therefore, the dividend scheme’s Net Asset Value (NAV) falls to the extent of dividends paid to you.  In the case of the growth option, the profits are reflected in the NAV and reinvested in the scheme.  At the discretion of the AMC or fund manager, a portion of the profit gets distributed to the investors in IDCW. However, it must be noted that this is not mandatory for an AMC under the dividend option. Tax benefits associated with IDCW in mutual funds   If you are a short-term investor, opting for IDCW in mutual funds is a viable option. That’s why an IDCW in a mutual fund is more appealing to conservative investors. However one cannot deny the importance of the tax benefits of IDCW in mutual funds.   Since the payout of IDCW in mutual funds is regular, whatever payout you receive is included in the income of the investor. And as IDCW offers an investor the promise of regular cash flow, you can always opt for such a mutual funds scheme. Note that the payout frequency of the IDCW is solely dependent on the fund manager.   IDCW pays out from the surplus investment accumulated. Income received by the investor as IDCW is added to the gross taxable income. Moreover, it is taxed based on the income tax slab rate of the investor.  Being a dividend distribution plan, dividends in IDCW exude practicality to the investors. Usually, retired investors want regular income from their portfolios. In that case, opting for IDCW in mutual funds is an excellent idea. Here are some noteworthy points of IDCW funds you should be aware of.   Based on SEBI, the dividends can only be paid from the profits earned by the respective mutual fund.   The payout rates of dividends may vary based on the payout cycle   Dividends paid on both debt and equity mutual funds can be taxed as per the investor’s tax slab.   Investment experts recommend the IDCW option when the market trajectory is moving upwards. During this time, the net asset values of funds rose consistently. Moreover, there is a greater likelihood of a fund declaring great dividends.   Where should investors invest? IDCW or Growth  Considering the in-growth option, the profits made by the scheme remain in the scheme investment. For long-term investment, the investor will profit for a long time. It is also known as compounding and will have a prominent role in wealth creation for investors.   IDCW in a mutual fund is something where the profits will improve the scheme, and the investor will get the best distribution with full or partial discretion of the fund manager with AMC. In this option, you will lose the compounding advantages the investors receive periodically. If the investor wishes to have a daily cash flow of the investment, then IDCW will be your best option.   Who should opt for the IDCW in mutual funds? IDCW in mutual funds is best suited for -  Investors looking for a regular income through their investments. Investors with low-risk tolerance levels.  Those looking for dividends during the bare market phase. Conclusion  Your choice of investment depends entirely on your financial goals. Moreover, you should also consider your investment horizon and tax situation to choose the best mutual fund. To be precise, IDCW mutual funds are suitable for those who want to have access to periodic payouts. Investing in mutual funds is a viable way to accumulate money for bigger purposes in life. If you want an investment portfolio with minimum risks, opting for IDCW is a better alternative.  FAQs Is IDCW income subject to tax? Yes, the IDCW income is added to your taxable income. It is subject to normal tax-slab rates. And if the dividend exceeds INR 5,000, there's also TDS on IDCW. What does IDCW stand for? IDCW stands for 'Income Distribution Cum Capital Withdrawal’. Can we change from IDCW to growth? Yes, you can. But it must be noted that depending on how long you had invested, the switch will attract capital gains and exit load.

There are various methods to choose from when it comes to developing a financial plan, but the proper plan needs a few components, regardless of the process utilized for creating it. Components for financial planning   1. Your net worth statement  Every financial plan demands a baseline. So, it is worthwhile to determine the net worth before finding a financial plan. Make sure to note down all the assets and debts. This will include investment accounts, bank accounts, valuable personal property, real estate, mortgages, student loans, and credit cards.   Make sure to deduct your liabilities from your assets to find your net worth. If you find that your liabilities are outweighing the assets, make sure to not be discouraged because when people are starting to establish a solid financial plan, it is something that happens. So, it needs to be considered when looking for the components of financial planning. 2. Financial goals  You cannot consider making a financial plan until you understand what you are going to do with your money. Your plan needs to begin with a complete list of goals, both small and big.   A proper list can help you organize all the goals. Be aware that your short-term goals will be those that you are hoping to achieve in the next 2-5 years. When it comes to medium-term goals, those are the ones that you want to achieve in the next 7-8 years. Finally, your long-term goals will be those that you want to achieve in the next 10 to 50 years. Listing down financial goals is one of the primary components of financial planning.   7 Types of Financial Planning Read More 3. Debt management  Having a debt management strategy is something that can help you reach your financial goals. If there is high-interest debt, ensure creating a strategy that can assist you to pay them quickly. You can also hire a financial professional advisor if you are not certain about where to begin. They will help you determine the amount from your budget that should be spent on the debts every month.   4. Cash flow and budget planning  Your budget assists you to find out where all your money is going and it helps you cut back to meet your goals. You can make use of a proper budget calculator to be sure that you do not ignore the important expenses. While jotting down your list, make sure to separate the expenses into two categories when considering the components of financial planning.   One category will have must-have items and the other will have luxury items. When you are considering how the financial goals will fit within the budget, make sure to consider all your expenses. You can also take the help of any advisor that offers procedures and tips that enable you to adjust particular assumptions to check how they would affect the savings plan.   Financial Planning Contingencies Read More 5. Retirement plan  You are going to need 80% of the income you're earning today in your retirement. But, you can also assume that retirement can free you from taxes and other work-related expenses. You must consider that medical insurance does not cover everything. You need to keep those expenses under long-term health care expenses. Make use of a savings calculator for your retirement to help you understand what you might require during your retirement period.   6. Insurance coverage  Insurance refers to an integral part of safeguarding your financial downside. Disability insurance, health insurance, life insurance, and home insurance are some of them. When it comes to life insurance, it is a good concept for people having dependents. Make sure to talk to an insurance professional to acknowledge what kind of coverage works best for you.   When it comes to disability insurance, just like the components of financial planning, it safeguards you and your family when you are not able to work. It replaces approximately 60% of your monthly salary. If you have a home or a car and you cannot afford to pay the entire bill from your pocket, ensure that you have adequate protection. The same is true with health insurance which can get you back thousands of money during a severe injury.   Wrapping Up  These components of financial planning are growing effectively to confirm that the present plans in your life are in a positive direction.   In a nutshell, you need to -  Keep a regular check on your enrolled plans, mutual fund, and assets;   Analyze your essential expense;  Cut down excess expenses for your future investment to be more structured;  Optimize your goals.   So, follow the above-mentioned components of financial planning to make your financial goals realistic as well as achievable. It is one of the best and workable ways to help take a step toward your financial goals. FAQs How do I determine my net worth? List all assets and debts (e.g., investments, bank accounts, loans), subtract liabilities from assets to find net worth. Why is goal setting essential in financial planning? Goals provide direction. Categorize them into short-term (2-5 years), medium-term (7-8 years), and long-term (10-50 years) goals. How do I manage debt effectively? Create a strategy to pay off high-interest debt. Seek advice from a financial advisor if unsure where to start. Why is insurance coverage crucial for financial security? Insurance safeguards against financial downsides. Types include disability, health, life, and home insurance, offering protection in various situations. TALK TO AN EXPERT

Investors always look for better investment opportunities to get regular returns. It helps them save taxes and create long-term wealth. While there are many investment options generating profits, they come under taxation according to income tax laws.  But, an investor can also save income tax by investing in a tax saver mutual funds. This article will explain what a tax saver mutual fund is and what are the numerous aspects that can help you make a good decision for investment.  https://www.youtube.com/watch?v=x9stEF-4ZuY Let’s understand the tax saver mutual fund.  Tax-saver mutual funds are just like any other mutual fund scheme. But, diving further into the concept of tax-saver MFs, let’s understand mutual funds.   A mutual fund is an investment fund that is professionally managed. It takes money from various investors to buy securities. It is generally used in India, Canada, and the United States. You can consider a mutual fund as a trust that takes money from many investors sharing a common investment objective. Now let us again come to tax saver mutual funds.   A tax-saver mutual fund helps investors save taxes. This initiative qualifies for a deduction of tax of up to rupees 1.5 lacks. Through these mutual funds, one invests in growth-oriented equity markets. It helps investors to get good returns and build long-term wealth.   Let’s understand this with an example. If you want to invest rupees 60,000 in a tax-saving mutual fund, this amount will be eliminated from your entire taxable income. It will reduce your tax burden.  How does a tax saver mutual fund work?  Tax-saver mutual funds collect money from many investors. They invest the money in the equity market. The equity market is the stock market or the share market which is a combination of cells and buyers of stocks. They may also include the securities that are listed on public stocks.   A tax-saver mutual fund includes a lock-in period of 3 years. It means that you cannot withdraw your money for 3 years. When you want to invest in mutual funds through the systematic investment planning route, the lock-in period for every installment remains to be 3 years.   When you are redeeming the units of a mutual fund, you can just get the units that have finished the period of lock-in. You can also redeem them at the present net asset value. Net asset value refers to the value of the fund of the investment without its liabilities. It is further divided by the shares outstanding.   You can invest some random amount or choose options for regular installments through systematic investment planning (SIP). When you invest with the help of installments, your installment is going to mature past 3 years from the date you have made it. Tax Benefits on Child Education Fees Read More It indicates that your last installment will be kept for 3 years from the date of investment, which is different from the first installment's maturity date.   The tax-saver mutual fund is the best option if you want to save tax. It offers many advantages because it comes with the unique feature of tax exemption. If you want to invest in a tax-saving mutual fund scheme, you need to learn and research the involved risks with every scheme.   You need to know that you do not have any kind of upper limit on the investment tenure, so you can continue giving your investment in the scheme if it seems to be profitable for you. Who should invest in tax-saving funds?  Tax-saving funds come with lots of good features and have been proven to give remarkable returns, but they may not be perfect for everyone. Here's who can invest:   If you are young and are paying taxes, you can make the most out of the dual benefit of investing in a tax-saving mutual fund.   Older people need to consider other investment options that come with no or lower capital risk.   Investments need to possess a flexible long-term horizon for reaching the best benefits or assuring better returns. So, it is recommended to invest for a duration of approximately 6 to 7 years to get long-term advantages.   Investors also analyze the track record of their fund after considering their investment based on their risk appetite and financial goals. So, it is ideal for young investors who can remain invested and take the best benefits. FAQs Which SIP is good for tax savings?  ELSS is the best SIP for good tax savings.   Can mutual funds be used for tax savings?  Yes, a tax saver mutual fund can be used for saving tax to a great extent in the long run.   Which is better, SIP or ELSS?  If you want to invest at the end of a financial year, then a tax-saving mutual fund will be the best option. But, if you want to have a constant source of income then SIPs are the best option. Who should invest in tax-saving funds? If you are young and are paying taxes, you can make the most out of the dual benefit of investing in a tax-saving mutual fund.   Older people need to consider other investment options that come with no or lower capital risk.   Investments need to possess a flexible long-term horizon for reaching the best benefits or assuring better returns. So, it is recommended to invest for a duration of approximately 6 to 7 years for getting long-term advantages.   How does a tax saver mutual fund work? Tax-saver mutual funds collect money from many investors. They invest the money in the equity market. The equity market is the stock market or the share market which is a combination of cells and buyers of stocks. They may also include the securities that are listed on public stocks. TALK TO AN EXPERT

In the previous article, we discussed how much salary to invest in mutual funds. In this article, we will discuss how to invest in direct mutual funds Mutual funds are the best way to peek into different and top-performing securities without constantly researching and handpicking them. It allows individuals the flexibility to invest and maintain excellent returns. It invests in stocks, bonds, and equities by pooling money from different companies.  Under this, an investor buys shares either directly or through a broker. The price that an investor pays per share is the net asset value plus other fees. Mutual funds are redeemable, which is one of their best features. An investor can sell the securities anytime, and the fund generally transfers the payment within seven working days. Direct and regular mutual funds make investing in mutual funds easier.  The blog talks about how to invest in direct mutual funds carefully. So, if you are worried about how to buy mutual funds directly, the blog is worth a read. What do direct mutual funds imply?   Direct funds are those offered by the fund house or Asset Management Company. AMC invests funds from clients by utilizing capital by investing in liquid assets like Stocks, bonds, real estate, and partnerships.  In “Direct” mutual funds, no third party intervenes in the transaction, and the investor directly interacts with AMC regarding the funds. Since the fund eliminates any third-party interaction, there are no brokerage fees or commissions here, and it is the primary difference between direct and regular funds. SIP in Mutual Funds Read More How do direct mutual funds differ from regular funds?   Direct and Regular Funds are the two options for investors to invest in mutual funds. These two differ drastically. The table below can be useful if you're having trouble deciding which to pick.  Direct mutual fundsIndirect mutual fundsIn this, the investor directly deals with AMC to purchase funds In this, the broker connects the investor with AMCAn investor can purchase an investment plan directly from the website The broker helps investors to pick the best plans. Direct Mutual Funds do not provide any facilities. The broker helps the investor with the account setup, documentation, and other legalities. No brokerage fees.The broker charges fees for his expertise and assistance.  The Total Expense Ratio (TER) and Net Asset Value (NAV) are significant parameters that investors must check before choosing the proper funds.  What are some tangible advantages of direct funds?  These funds have a lower expense ratio that translates into higher returns.  It keeps compounding for several years   It is better than reserving funds under the same scheme  Figure out the best way to invest in a direct fund and multiply your wealth.  Source: pixabay Top 8 mutual funds to invest in India in 2022?  Are you searching for the best direct mutual funds to invest in India? Check this out!  As per Economic Times’s June 2022 research, the best mutual funds to invest in are:  Parag Parikh Long-Term Equity Fund  Axis Bluechip Fund  Mirae Asset Large Cap Fund  Kotak Emergency Equity Fund  UTI Flexi Cap Fund  SBI Small Cap Fund  SBI Equity Hybrid Fund  Axis Midcap fund  Before exploring investment schemes in direct mutual funds in India, check the category and investment objective.  What are open-ended mutual funds? Read More 3 best ways to invest in direct mutual funds  You can invest in direct Mutual Funds both ways, online and offline. Invest online if you wish to avoid the hassle of conducting physical visits.  You will need to meet the KYC eligibility before investing. You must attach the following documents to become KYC compliant:  Identity proof (Aadhaar card, driving license, or Voter ID)  A PAN Card  Address proof  A passport-size photo  https://www.youtube.com/watch?v=7hXeSyWLiZ4 You can invest in Direct funds via many options.  Investment in Direct funds through AMC To invest in this, choose the scheme you like. Post that follows the below steps:  Step 1- Make an AMC account  Step 2- By choosing Plan Type as “Direct,” select the scheme  Step 3- Choose between Dividend and Growth. Choose according to the investment objective.  Step 4- Select an investment Plan or Lumpsum  Step 5- Select between a Demat account or trading without one  Step 6- Choose the payment Mode  Step 7- Confirm the bank details- IFSC code, account number, account holder name, and account type  Verify the details, and you are all set to go! Conclude the transaction using the verified payment mode. Once done, you will receive a quick ping confirming the same.  Invest in direct funds through a broker  One of the ways to invest in direct mutual funds is through a broker.    Choose a broker or a registrar to assist you in the process. The mutual fund program you want to invest in needs to adhere to the list, and the registrar or broker must have it in their brochure.  If confused, you can invest in the Direct Mutual Fund Scheme through SEBI. It has multiple platforms for Registered Investment Advisors, and you can leverage these.  Visit CAMS and KARVY, and view the investment opportunities on the portals.    Check out the mutual fund's utility option  Mutual Funds Utility is your best option if you wish to invest and transact across multiple utilities. It is a shared platform of unique fund houses.  You can begin investing in multiple funds just by creating an account. To invest in direct funds through MFU, CAN is mandatory. CAN (Common Account Number) helps check all the mutual fund portfolios and provides a consolidated view. You can create a CAN ID in 3 easy ways:  STEP 1: Visit the official website of MFU India   STEP 2: Select the CAN criteria  STEP 3: Select the holding Type  And you are good to go!   These are some ways to invest in Direct Mutual Funds. You can choose from online and offline modes. Pick the best Direct Mutual funds scheme and invest carefully. FAQs What are direct mutual funds? Direct mutual funds are offered by the fund house or AMC, allowing investors to directly interact with the AMC without third-party intervention, resulting in no brokerage fees. How do direct mutual funds differ from regular funds? Direct funds involve direct interaction with the AMC, with no brokerage fees. Regular funds involve brokers who charge fees for assistance and account setup. What are the advantages of direct funds? Direct funds have lower expense ratios, higher returns, and better compounding over the years, making them a preferable choice for investing. What are the top direct mutual funds to invest in India? As of June 2022, some top direct mutual funds in India are the Parag Parikh Long-Term Equity Fund, Axis Bluechip Fund, Mirae Asset Large Cap Fund, and more. TALK TO AN EXPERT