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DSP Dynamic Asset Allocation Fund

DSP Dynamic Asset Allocation Fund

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant.  The family behind DSP has been very influential in the growth and professionalization of capital markets and the money management business in India over the last one-and-a-half centuries   Let us talk about the consumer product – DSP Dynamic Asset Allocation Fund.  About the DSP Dynamic Asset Allocation Fund  Investment objective The investment objective of the Scheme is to seek capital appreciation by managing the asset allocation between equity and fixed-income securities. The Scheme will dynamically manage the asset allocation between equity and fixed income based on the relative valuation of equity and debt markets.  The Scheme intends to generate long-term capital appreciation by investing in equity and equity-related instruments and seeks to generate income through investments in fixed-income securities and by using arbitrage and other derivative strategies.  Investment process   Investment Strategy for Equity Investments - The stock selection process proposed to be adopted is generally a bottom-up approach seeking to identify companies with long-term sustainable competitive advantage (as this is one of the key factors responsible for withstanding competitive pressures and does not allow rivals to eat up any excess profits earned by a successful business). The fund would also use a top-down discipline for risk control by ensuring the representation of companies from select sectors.  Investment Strategy for Debt Investments - The Fund Manager will invest only in those debt securities that are rated investment grade by a domestic credit rating agency such as CRISIL, ICRA, CARE, FITCH, etc., or in unrated debt securities that the Fund Manager believes to be of equivalent quality. The securities mentioned above could be listed, unlisted, privately placed, secured, unsecured, rated, or unrated (subject to the rating or equivalency requirements discussed above) and of any maturity. The Fund may also invest in Securities of issuers supported by the Government of India or State Governments subject to such securities satisfying the criteria relating to rating etc.  Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 65% and sectoral major exposure is Banks which account for roughly 8% of the portfolio. The top 4 sectors hold nearly 18% of the portfolio.  Note: Data as of 31st Dec 2022. Source: DSP MF  Top 5 holdings DSP Dynamic Asset Allocation Fund  Name Weightage % HDFC Bank Limited 3.93 Bajaj Finance Limited 3.29 ICICI Bank Limited 2.22 Avenue Supermarts Limited 2.14 Maruti Suzuki India Limited 1.94 Note: Data as of 31st Dec 2022. Source: DSP MF  Performance Note: Data as of 31st Dec 2022. Source: DSP MF  The fund has generated a CAGR (Compounded Annual Growth Rate) of 8% since its inception.  Fund manager  Mr. Atul Bhole is the fund manager and brings over 16 years of experience. He joined DSP in May 2016 and is the Vice President. He is managing the fund since February 2018. He has previously worked with Tata Asset Management Ltd, JP Morgan Services (India) Private Limited, and State Bank of India (Treasury). He holds a B. Com, MMS (Finance from JBIMS), and Chartered Accountant (ICAI India).  Mr. Dhaval Gada is the fund manager and brings over 13 years of experience. He joined DSP in September 2018 and is managing the fund since September 2022. He has previously worked with Sundaram AMC Pvt. Ltd, Motilal Oswal Securities Ltd, Evalueserve.com Pvt. Ltd. He holds a PGDM – Finance from Welingkar Institute of Management.  Mr. Laukik Bagwe is the fund manager and brings over 22 years of total professional experience. He has been managing the scheme since July 2021. He has previously worked with Derivium Capital & Securities Private Limited, and Birla Sunlife Securities Ltd. He holds a B.Com, and PGDBA (Finance).  Who should invest in DSP Dynamic Asset Allocation Fund?  Investors want to invest in the equity markets but don't know how to begin.  An investor who gets confused by the noise when markets fluctuate and also believes that an unemotional asset allocation strategy has a higher chance of success.  Investors not looking to chase the highest returns.  Why invest in this Fund?  Helps you invest unemotionally by 'doing what it needs to', instead of you having to react to changing markets.  It offers you 'built-in-advice' & actions on your behalf.  Offers the potential to grow your wealth by investing in equities but with a smoother long-term investment journey.  It tries to reduce the impact of market fluctuations in the portfolio.  Potential capital preservation during falling markets through debt allocation.   Time horizon  One should look at investing for a minimum of 5 years or even more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The DSP Dynamic Asset Allocation Fund was launched in February 2014 and in its track record of nearly nine years, the fund has delivered ~8% CAGR consistently. Thus, it is best for investors who are willing to take equity exposure but not knowing how to begin and where to begin. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 
ICICI Prudential Value Discovery Fund

ICICI Prudential Value Discovery Fund

ICICI is a leading Asset Management Company (AMC) in the country focused on bridging the gap between savings and investments and creating long-term for investors through a range of simple and relevant investment solutions.    Let us talk about the consumer product – ICICI Prudential Value Discovery Fund. https://www.youtube.com/shorts/C3w_oegGkFY About the ICICI Prudential Value Discovery Fund  Investment objective To generate returns through a combination of dividend income and capital appreciation by investing primarily in a well-diversified portfolio of value stocks.  Investment strategy   Diversification: The Scheme aims at maintaining a well-diversified portfolio with the flexibility to invest across sectors and market capitalizations.  Value investing: The Scheme, through its process of discovery, seeks to identify stocks whose prices are low relative to their historic performance, earnings, book value, cash flow potential, and dividend yield.  Special Situations: The fund manager may also capture special situations. Typically, these are large-cap stocks that the fund manager believes are beaten down due to non-fundamental reasons.  Bottom-Up Approach: The scheme shall adopt a bottom-up approach in identifying stocks that have strong fundamentals but are trading at prices lower than their intrinsic value.  Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 60% and sectoral major exposure is Banks which account for roughly 13% of the portfolio. The top five sectors hold nearly 50% of the portfolio. Note: Data as of 31st Dec 2022. Source: Morningstar, ICICI MF Top 5 holdings of ICICI Prudential value discovery fund Name Weightage % Oil & Natural Gas Corporation Ltd 8.79% Sun Pharmaceutical Industries Ltd 7.95% NTPC Ltd 6.42% Bharti Airtel Ltd 5.07% ICICI Bank Ltd 4.48% Note: Data as of 31st Dec 2022. Source: ICICI MF  Performance Fund name 3M 6M 1Y 3Y 5Y 7Y 10Y ICICI Pru Value Discovery Dir 2.93 9.01 11.12 24.97 13.61 15.55 17.92 S&P BSE 100 TRI -1.44 2.52 4.36 15.23 10.75 14.39 12.89 Note: Data as of 30th January 2023; Data is for Direct Plan Growth Option Source: ICICI MF  The fund has generated a CAGR (Compounded Annual Growth Rate) of 19.70% since its inception.  Fund manager  Mr. Sankaran Naren has been managing the fund since January 2021 and is associated with the AMC since October 2004. He oversees the entire investment function across the Mutual Fund and the International Advisory Business of the Company. Mr. Naren joined the AMC in 2004 as a fund manager and has worked in various capacities in the investment function culminating in his taking over as the Chief Investment Officer. He currently manages some of the flagship schemes of the ICICI Prudential Mutual Fund. Mr. Sankaran Naren has rich experience of around 30 years in almost all spectrums of the financial services industry ranging from investment banking, fund management, equity research, and stock broking operations. During his career, he has also worked with organizations such as Refco Sify Securities India Pvt. Ltd, HDFC Securities Ltd, and Yoha Securities in various capacities. He holds a B. Tech from IIT Madras and PGDM from IIM Calcutta.  Mr. Dharmesh Kakkad is also the fund manager since January 2021. He is associated with ICICI Prudential Asset Management Company Limited since June 2010. Prior to working in the Dealing function, he was working in the Operations Department of ICICI Prudential AMC. He is a CFA Charter holder in USA, CA, and B.Com.  Who should invest in ICICI Prudential Value Discovery Fund?  Investors who are willing to participate in the process of discovering stocks that are undervalued but have the potential to do well due to strong fundamentals.  Investors who are willing to invest for a fairly long term with an aim to benefit over the full investment cycle and have over 5 years of the investment horizon.  Why invest in this Fund?  The scheme’s investments in undervalued stocks provide a reasonable margin of safety and help to minimize downside risk in a market fall.  Horizon  One should look at investing for a minimum of 5-7 years or even more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The ICICI Prudential Value Discovery Fund was launched in August 2004 and in its track record of nearly nineteen years, the fund has delivered ~20% CAGR consistently. Thus, it is best for investors who are willing to take equity exposure and are looking for long-term investment. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 
DSP Tax Saver Fund

DSP Tax Saver Fund

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant.  The family behind DSP has been very influential in the growth and professionalization of capital markets and the money management business in India over the last one-and-a-half centuries   Let us talk about the consumer product – DSP Tax Saver Fund. About the DSP Tax Saver Fund  Investment objective The primary investment objective of the Scheme is to seek to generate medium to long-term capital appreciation from a diversified portfolio that is substantially constituted of equity and equity-related securities of corporates and to enable investors to avail of a deduction from total income, as permitted under the Income Tax Act, 1961 from time to time.  Investment process   The fund follows the following investment strategy   The Investment Manager will select equity securities on a bottom-up, stock-by-stock basis, with consideration given to low price-to-earnings, price-to-book, and price-to-sales ratios, as well as improving margins, asset turns, and cash flows, amongst others.  The fund is sector-agnostic and also market-cap agnostic.  Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 70% and sectoral major exposure is Banks which account for roughly 32% of the portfolio. The top 4 sectors hold nearly 55% of the portfolio.  Note: Data as of 31st Dec 2022. Source: DSP MF  Top 5 holdings DSP Tax Saver Fund Name Weightage % HDFC Bank Ltd 9.68 ICICI Bank Ltd 7.59 Infosys Ltd 6.31 State Bank of India Ltd 5.04 Axis Bank Ltd 4.63 Note: Data as of 31st Dec 2022. Source: DSP MF Performance  Note: Data as of 31st Dec 2022. Source: DSP MF  The fund has generated a CAGR (Compounded Annual Growth Rate) of 14.25% since its inception.  Fund manager  Mr. Rohit Singhania is the fund manager and brings over 20 years of experience. He joined DSP in September 2005, as Portfolio Analyst in the firm’s PMS division. He was transferred to the Equities Investment team in June 2009 as Research Analyst. Previously, he was with HDFC Securities Limited as a part of its Institutional Equities Research Desk. He spent 13 months at HDFC Securities as Sr. Equity Analyst. Prior to HDFC securities, he was employed with IL&FS Investment Limited as Equity Analyst.  Mr. Charanjit Singh is fund-managed and brings over 17 years of total professional experience. He has been managing the scheme since January 2021. He has previously worked with B&K Securities India, Axis Capital Ltd, BNP Paribas India Securities, Thomas Weisel Partners, HSBC, IDC Corp., and Frost & Sullivan.  Who should invest in DSP Tax Saver Fund?  Investors looking to save tax by investing in equity-oriented funds with the lowest lock-in of three years. An individual can save up to Rs 46,800 by investing up to Rs 1.5 lakh in this fund.   Why invest in this Fund?  Helps you aim to grow your wealth by investing in a mix of large & mid-sized companies, offering growth at reasonable prices.  The lowest lock-in period of 3 years as compared to other tax saving options under Section 80C.  Can help you beat the impact of rising prices over the long-term   Time horizon  One should look at investing for a minimum of 3 years or more due to lock-in.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The DSP Tax Saver Fund is one of the oldest funds with a track record of more than 16 years and has delivered ~14% CAGR consistently. Thus, it is best for investors who are willing to take some additional risk for good returns over a long-term spectrum and also at the same time look for saving tax.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 
ICICI Prudential Multi Cap Fund

ICICI Prudential Multi Cap Fund

ICICI is a leading Asset Management Company (AMC) in the country focused on bridging the gap between savings and investments and creating long-term for investors through a range of simple and relevant investment solutions.    Let us talk about the consumer product – ICICI Prudential Multi-Cap Fund.  About the ICICI Prudential Multi Cap Fund  Investment objective To generate capital appreciation through investments in equity & equity-related instruments across large-cap, mid-cap, and small-cap stocks of various industries.  Investment strategy   The investment universe of the Scheme is a unique blend of large-cap, mid-cap, and small-cap stocks. The Scheme will aim to hold optimum exposure to large, mid, and small-cap stocks depending on the fund manager's view on market valuations.  The portfolio construction involves investing in high-conviction quality stocks. The Scheme will remain sector agnostic and would use a combination of top-down and bottom-up research for stock selection.  A top-down approach will be based on macroeconomic conditions, and underlying trends while a bottom-up approach shall be followed for selecting stocks with growth prospects, low leverage levels, good corporate governance, robust financials, and good cash flow management.  Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 60% and sectoral major exposure is Banks that account for roughly 15% of the portfolio. The top five sectors hold nearly 42% of the portfolio. Note: Data as of 31st Dec 2022. Source: Morningstar, ICICI MF Top 5 holdings of ICICI Prudential Multi-cap Fund Name Weightage % ICICI Bank Ltd 6.45% Infosys Ltd 3.07% HDFC Bank Ltd 3.02% TVS Motor Company Ltd 2.60% Sun Pharmaceutical Industries Ltd 2.50% Note: Data as of 31st Dec 2022. Source: ICICI MF  Performance Fund name 3M 6M 1Y 3Y 5Y 7Y 10Y ICICI Pru Multicap Dir -1.26 3.4 4.37 15.81 10.73 14.47 15.01 S&P BSE 500 TRI -2.52 1.69 2.47 16.00 10.31 14.48 13.4 Note: Data as of 30th January 2023; Data is for Direct Plan Growth Option Source: ICICI MF  The fund has generated a CAGR (Compounded Annual Growth Rate) of 19.70% since its inception. Invest Now Fund manager  Mr. Sankaran Naren has been associated with the AMC since October 2004. He oversees the entire investment function across the Mutual Fund and the International Advisory Business of the Company. Mr. Naren joined the AMC in 2004 as a fund manager and has worked in various capacities in the investment function culminating in his taking over as the Chief Investment Officer. He currently manages some of the flagship schemes of the ICICI Prudential Mutual Fund. Mr. Sankaran Naren has rich experience of around 30 years in almost all spectrums of the financial services industry ranging from investment banking, fund management, equity research, and stock broking operations. During his career, he has also worked with organizations such as Refco Sify Securities India Pvt. Ltd, HDFC Securities Ltd, and Yoha Securities in various capacities. He holds a B. Tech from IIT Madras and PGDM from IIM Calcutta.  Mr. Anand Sharma has been appointed as the Senior Investment Analyst – MF Equity in the Investments Department of ICICI Prudential Asset Management Company Limited w.e.f. November 10, 2021. He joined ICICI Prudential Asset Management Company in April 2014. He has previously worked with Oracle Financial Services Software Ltd. He holds a B.E. (Computer Engineer), and a Master of Management Studies, from the University of Mumbai.  Who should invest in ICICI Prudential Multi Cap Fund?  Investors who aim to take advantage of India’s long-term growth potential with an investment horizon of 5 years and above.   Why invest in this Fund?  The scheme focuses on identifying stocks across sectors that are likely to transform into tomorrow’s market leaders resulting in potential capital appreciation over time.  The scheme’s exposure to mid and small-caps provides an opportunity for higher capital appreciation over the long term whereas the large-cap exposure aims to provide less volatile reasonable returns.  Horizon  One should look at investing for a minimum of 5-7 years or even more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The ICICI Prudential Multi-cap Fund was launched in October 1994 and in its track record of nearly twenty-eight years, the fund has delivered ~15% CAGR consistently. Thus, it is best for investors who are willing to take equity exposure and are looking for long-term investment. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 
Best 5 divided paying mutual funds. You never knew!

Best 5 divided paying mutual funds. You never knew!

Best dividend-paying mutual funds are one of the types of mutual funds in India that invest in equity and equity-related instruments that can yield a high dividend to its shareholders. These companies have strong fundamentals as they are profit-making companies. Only profit-making companies can distribute dividends to their shareholders. Having said that the primary intention of these companies is to provide regular income and capital appreciation to their investors. As per SEBI (Securities and Exchange Board of India) norms, a dividend yield fund invests at least 65% of its portfolio in dividend-yielding instruments. Advantages of the best dividend paying mutual funds These funds have the potential to regular income through dividends. These funds invest majorly in strong companies having strong fundamentals. These funds provide equity exposure with lower risk. 5 High Dividend paying Mutual Funds S.No.Fund Name3-Yr Annualized Performance1Templeton India Equity Income Fund Direct Payout of Inc Dist cum Cap Wdrl22.43 %2IDBI Dividend Yield Fund Direct Payout of Income Distribution cum Cap Wdrl18.83 %3Sundaram Dividend Yield Fund – Direct Plan Half Yearly Payout of Income Dis cum Cap Wdrl18.59 %4Aditya Birla Sun Life Dividend Yield Fund Direct Plan Payout Inc Dist cum Cap Wdrl17.44 %5ICICI Prudential Dividend Yield Equity Fund Direct Payout Inc Dist cum Cap Wdrl17.30 %Note: Data as of July 26, 2022Source: Morningstar 1. Templeton India equity income fund direct payout of inc dist cum cap wdrl Fund analysis: The scheme seeks to provide a combination of regular income and long-term capital appreciation by investing primarily in stocks that have a current or potentially attractive dividend yield, by using a value strategy. The fund has outperformed the category average over different tailing period returns. The fund has invested majorly in large-cap companies (81.41%) followed by mid-cap (17.77%) and small-cap companies (0.82%). ProsConsAttractive risk-to-reward ratio. The fund outperformed the category average when the market was falling & rising.High volatility than the category average. 2. IDBI dividend yield fund direct payout of income distribution cum cap wdrl Fund analysis: The fund’s aim is to provide capital appreciation and/or dividend distribution by investing predominantly in dividend-yielding equity and equity-related instruments. The fund has a beta of 0.78 indicating that the fund performance is less relative to the market. The fund follows a blended style of investing which means that the fund has invested in both value and growth stocks. The fund has outperformed the category average marginally. ProsConsLess volatile than the category average. Fund has outperformed the category average when the market was falling.Fund has underperformed the category average when the market was rising. 3. Sundaram dividend yield fund – direct plan half yearly payout of income dis cum cap wdrl Fund analysis: The fund has given consistent performance over the long-term period. The fund has a well-diversified portfolio, spread across sectors except for real estate. The fund has invested across market capitalization companies i.e., large-cap (84.79%), mid-cap (13.42%), and small-cap (1.79%) companies. The fund has also invested some portion in the debt category also. ProsConsFund has outperformed the category average when the market was falling. Well-diversified portfolio.High expense ratio. Read more: Top 10 large-cap mutual funds in India 4. Aditya Birla sun life dividend yield fund direct plan payout inc dist cum cap wdrl Fund analysis: The fund has a beta of 0.91 indicating that the fund’s performance is closely related to the performance of the market. The fund has invested across market capitalization, but the major investments are in large-cap (60.07%) followed by mid-cap (26.37%) and small-cap (13.55%) companies. The fund has a high risk (measured by standard deviation) than the category average. ProsConsWell-diversified portfolio. Fund has outperformed the category average when the market was rising.High expense ratio. Read more: Top 10 ELSS mutual funds in India 5. ICICI prudential dividend yield equity fund direct payout inc dist cum cap wdrl Fund analysis: The fund’s objective is to provide medium to long-term capital gains and/or dividend distribution by predominantly investing in a well-diversified portfolio of equity and equity-related instruments of dividend-yielding companies. The fund has given reasonably good performance over the period. The fund follows a blended style of investing, which means that the fund has invested in both value and growth stocks, and has invested across market capitalization companies. The fund has a high risk (measured by standard deviation) than the category average. ProsConsLow expense ratio. Fund has outperformed the category average when the market was rising.The fund underperformed the category average when the market was falling. FAQs Which mutual fund gives monthly dividends?  Ans. Sundaram Dividend mutual funds – Direct Plan-Growth - NAV: INR 91.29 Expense Ratio: 2% AUM: INR 321.27 Cr  Aditya Birla Sun Life Dividend Yield Fund – Direct Plan-Growth - NAV: INR 280.57 Expense Ratio: 1.85% AUM: INR 810.28 Cr  Which 5 mutual fund is best? Ans. Tata Digital India Fund Direct-Growth   ICICI Prudential Technology Direct Plan-Growth  Quant Small Cap Fund Direct Plan-Growth  SBI Technology Opportunities Fund Direct-Growth  Aditya Birla Sun Life Digital India Fund Direct-Growth  Which dividend yield fund is best?  Ans. Templeton India Equity Income Fund, ICICI Prudential Dividend Yield Equity Fund, IDBI Dividend Yield Fund.  What are the 5 highest dividend-paying stocks? Ans. V.F. Corporation (VFC), Devon Energy (DVN), Dow Inc. (DOW), International Business Machines (IBM), and Verizon Communications (VZ).  Conclusion: Investors looking for regular income and capital appreciation from the stock market should consider such funds as part of their portfolios. Disclaimer:This is not recommendation advice, use it for educational purposes only. Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of the future performance of the schemes Consult an expert advisor to get the right plan for you TALK TO AN EXPERT
How much crypto should you hold in your portfolio? 

How much crypto should you hold in your portfolio? 

On 1st February, India's Finance Minister, Nirmala Sitharaman, announced that The RBI would issue digital Rupee or Central Bank Digital Currency in the coming fiscal year. She also said that discussions about private cryptocurrencies and central bank-backed digital currency have continued with the Reserve Bank. A decision is to be made after due deliberations. Besides the taxation announcement, the FM did not touch upon legalizing private cryptocurrencies. What is a digital asset? A digital asset or virtual asset is generated through cryptographic means, offering a representation (digitally) of value exchanged. It functions as a storage of a unit of account or value, including use in an investment or financial transaction, but not limited to investment scheme, and can be transferred, stored, or traded electronically. 1. Cryptocurrency A cryptocurrency is a currency that has digital or virtual existence. It uses cryptography to secure transactions. Cryptocurrencies do not have a regulating authority or central issuing. Instead, it uses a decentralized system to record transactions and issue new units. Cryptocurrency does not rely on banks in order to verify transactions and is a digital payment system. It is a system that enables anyone anywhere to send and receive payments. Some of the very well-known cryptocurrencies are Bitcoin, Solana, Ethereum, Tether, etc. Here are it's advantages and its disadvantages Advantages Disadvantages Potential for high reward 30% tax rate plus a TDS of 1% on the purchase price Replacing traditional banks Price Volatility with Cyber security issues Round-the-clock trading Complicated regulations are accompanied by transaction difficulties.  2. Crypto Volatility Investing in something that includes speculation is a way to add volatility to your portfolio. Without anything intrinsically valuable backing up the currency, crypto's market value is based entirely on speculation. This means that the invested money isn't very safe or secure, which makes its price extremely sensitive to even the slightest change in the investors' expectations and perceptions. Photo by Worldspectrum from Pexels 3. Crypto Taxation A flat 30 percent tax on digital asset gains regardless of any long-term or short-term holding by the investor. Additionally, if a virtual digital asset investor incurs losses during the transaction, it can't be set off against any other income. The gifting of virtual digital assets has also been proposed to be taxed in the hands of the recipient. The above example shows the profits earned in the period of 1 year by investing in Bitcoin. Here, there is a 30% taxation on capital gains or profits. Additionally, the buyer of the crypto pays a TDS of 1% on the purchase price to the government. What is CBDC? CBDC is Central Bank Digital Currency which is an electronic form of central bank money that citizens can use to make digital payments and store value. A CBDC, in short, is a digital currency issued by the central bank and is universally accessible. It eliminates the risks of extreme volatility and lack of government backing, which is seen in cryptocurrencies. Should you invest in crypto? Investing in crypto has definitely made money for a lot of investors. Investing in crypto assets is very risky but, at the same time, extremely profitable. But it is like signing up for a bumpy ride. Consider the volatility and the standard deviation. Imagine the value of your investments changing in value (increase or decrease) by almost 20-30% in a day. Now, let's consider the taxation part. The official budget announcement acts as the first step towards a full regulatory framework and a classification of crypto as a virtual digital asset. But a flat tax rate of 30% on capital gains is like losing almost a third of your profits generated from crypto. This tax rate further discourages day trading in the crypto market. Moreover, the central governments are also moving towards the banking sector for issuing CBDC, which is well-regulated and legalized. This provides a currency with more backing. Investing in the crypto market is very time-consuming. Since the market is working round the clock and is highly volatile, investors are likely to spend more hours in a day analyzing the market to keep a check on their investments. Investors also face a challenge of a time difference in the markets of different countries. For e.g., an Indian investor would have to be up in the middle of the night to check the movement of the crypto market. Another major factor to be considered in the Crypto market is the weightage of the investors. The majority of the crypto market is held by 4-5% of the big players in the market. This causes a great sense of unpredictability for retail investors. Any big decision (to buy or sell) by these players causes great manipulation in the market, which has an adverse effect on retail investments. In short, an investor with an extremely high-risk appetite can hold not more than 5% of the digital virtual asset (preferably a digital currency) in their portfolio. FAQs How much crypto should I have in my portfolio? Investing in crypto has definitely made money for a lot of investors. Investing in crypto assets is very risky but, at the same time, extremely profitable.   But it is like signing up for a bumpy ride. Consider the volatility and the standard deviation. Imagine the value of your investments changing in value (increase or decrease) by almost 20-30% in a day.   Can crypto make you a millionaire?   There is no guarantee that any investment will make you a millionaire. Investors should keep in mind that investing in crypto is extremely risky and can attract a flat 30% tax on their capital gains.  Is it worth investing a small amount in crypto? Given that investing in crypto can be extremely risky, it is advisable to hold 5% or less than that in your portfolio. You should ensure that you can afford to lose the amount you invest. How much should you have invested in crypto? Investing in crypto has definitely made money for a lot of investors. Investing in crypto assets is very risky but, at the same time, extremely profitable. But it is like signing up for a bumpy ride. Consider the volatility and the standard deviation. Imagine the value of your investments changing in value (increase or decrease) by almost 20-30% in a day.   In short, an investor with an extremely high-risk appetite can hold not more than 5% of the digital virtual asset (preferably a digital currency) in their portfolio. Anything more than this would increase the volatility of the entire portfolio and would question the safety of the principal amount. One must understand that crypto is a highly speculative and highly volatile investment.   Anything more than this would increase the volatility of the entire portfolio and would question the safety of the principal amount. One must understand that crypto is a highly speculative and highly volatile investment. Consult an expert advisor to get the right plan TALK TO AN EXPERT
Is investing in BigTech companies beneficial for you?

Is investing in BigTech companies beneficial for you?

Investing in Big Tech companies is beneficial. These companies have a history of success and have gained thousands of loyal customers. But firstly, let us understand what Big Tech is. Big techs are major technology companies with unparalleled influence on technology and our lives indirectly. These are the most prolific and burgeoning companies of our times. Often big names like FAANG, i.e., Facebook, Apple, Amazon, Netflix, and Google, are considered members of this elite club. These Big Tech companies are so vast in their operations that no other player is comparable. Most of us consume products of these FAANG companies in one way or another, like using a platform for ordering something from amazon or having a social media account, etc. If we look at the cumulative market cap of FAANG stocks is $7.07 trillion, which is double the size of India's market cap (which stood at $3.46 trillion). Furthermore, when we look at the following five players in the US, the market cap of (Microsoft, Tesla, Taiwan Semiconductor, NVIDIA, and Visa) stands at $4.83 trillion depicting tremendous difference and room for growth when compared to the top five players. While these numbers are enormous, these companies have been growing sustainably and are commanding their sweet share in the market. For example – Facebook is possibly the most prominent social networking platform (including WhatsApp, Facebook, and Instagram). Similarly, Google is the undisputed leader when it comes to search engines. The following charts depict the growth story of these companies Source: EduFund Research TeamNote: Period understudy is between Mar’19-Sep’21 The revenues of these companies often surpass the value of the GDP of several countries. For example, the revenue of Amazon and Apple both surpassed the value of the GDP of Pakistan (296 $ billion) by almost 90 $ billion and 69 $ billion, respectively! Source: EduFund Research Team The GDP comparison shows the efficiency of these companies in their business operations and how well they'll augur in the future. The most significant plus point for these companies is that they run their business on the new oil of the industry – data What is the conclusion? - these companies are sure to grow more in the future. Imagine investing in these companies and how your wealth would have increased by now. But there's no need to worry because we live in a technology-driven world. In the words of Joseph Krutch, 'Technology made large populations possible; large populations now make technology indispensable.' As the name suggests, various firms are investing heavily in new-generation technologies like - Let's briefly go through these next-gen technologies. Internet, this is just unmissable! We all know how rapidly internet technology is progressing. 5G services are already up and running commercially in over 64 countries worldwide. Robotics and AI is the new talking point of the industry Automation and AI have helped solve several problems industries face and will grow even in the future. Self-driving cars as a field have tremendous scope and lot. The future of automobile manufacturing will get entirely automated. In 2020, the 3D printing industry was worth 13.7 $ billion with an expected growth of 63.46 $ billion by 2026, which means a CAGR of 25% approx. All these industry projections show how resilient the future is - various chipsets power today's world. Almost all devices have a semiconductor chip installed, from a simple LED bulb to a complex supercomputer. Thus, this industry is sure to flourish in the future. Unified Payments Interface (UPI) is living proof of how strong the fintech industry can grow. Fintech unapologetically has to be a next-gen industry. We don't want to miss the bus this time. Several ETFs invest in such next tech. Here are a few theme-based US ETF recommendations from us: Ticker NameSegmentName1 Year Return3 Year Return5 Year ReturnDRIVEquity: Global MobilityGlobal X Autonomous & Electric Vehicles ETF-0.02%113.23%N/APRNTEquity: Global Robotics & AI3D Printing ETF-29.95%31.60%25.64%SNSREquity: Global InternetGlobal X Internet of Things ETF1.54%87.85%102.81%ARKFEquity: Global FinTechARK Fintech Innovation ETF-44.17%N/AN/AFIVGEquity: Global 5GDefiance Next Gen Connectivity ETF2.11%N/AN/AIGFEquity: Global InfrastructureiShares Global Infrastructure ETF11.11%19.57%34.25%CIBREquity: Global CybersecurityFirst Trust NASDAQ Cybersecurity ETF0.67%80.84%122.84%Source: EduFund Research TeamNote: Period understudy is between Mar’19-Sep’21 Investing in all the themes under one roof Now since we have seen several theme-based ETFs, let's look at some ETFs that take care of all! The more diversity in the portfolio, the lower is the risk involved. Below are the five ETFs that invest majorly in tech companies; these are not theme-based. The portfolio diversification of these ETFs is oriented toward tech companies Ticker NameNameTotal Assets ($ B)1 Year Return3 Year Return5 Year Return3-Year Net Flows ($ B)QQQInvesco QQQ Trust180.367.30%110.74%182.08%36.55VUGVanguard Growth ETF77.387.43%93.76%145.59%7.84IWFiShares Russell 1000 Growth ETF67.238.43%91.87%152.41%-7.70IVWiShares S&P 500 Growth ETF34.3612.54%87.50%142.75%-3.88TQQQProShares UltraPro QQQ19.178.46%361.00%721.84%18.02Source: EduFund Research TeamNote: Data as of 30th Jan’22. The above-listed funds have the highest Assets Under Management and provide investors with constant returns. Thus, these funds are ideal for investors seeking long-term capital growth. What's in it for Indian investors? There are two ways in which Indian investors can reap benefits from their investments in the US markets: From the returns that these ETFs have generated.  From the rupee depreciation, which has been depreciating at 4% approx. Annually for the past ten years. So, if the fund gives a 20% return and the rupee depreciates by 4%, the total gain will be 24% for the Indian investor. The below chart explains how the rupee is depreciating over the period. Source: EduFund Research Team.Note: The period under study is between Feb’14 to Feb’22 FAQs What is the best tech company to invest in? The best tech companies to invest in 2022 according to Forbes are: Apple Inc. ( AAPL)Microsoft Corporation (MSFT)Alphabet Inc. ( GOOGL)Meta Platforms Inc. ( FB)Taiwan Semiconductor Manufacturing Company (TSM)Tencent Holdings (TCEHY)Samsung Electronics Co. ( SSNHZ)Apple, Microsoft, Alphabet, and Meta are also part of the FAANG companies that have shown tremendous growth in the past few years. They are leading technological advancements in the USA and the world. What are the Top 5 tech stocks called? The top 5 tech stocks are called Facebook, Amazon, Apple, Microsoft, and Google. They are also known as FAAMG. An abbreviation coined by Goldman Sachs. Is tech a good investment? Yes, historically, tech has had a strong performance and has outperformed the market indices. What are some ways to invest in tech companies? You can invest in teaching companies directly by buying their listed stocks or you can purchase them indirectly by investing through mutual funds, ETFs or small cases. Before investing any money, it is advised to consult a financial expert. What is the best high-tech stock to buy now? Here are some high-tech stocks you can buy: 1. Apple inc. (AAPL)  Microsoft Corporation (MSFT)  Alphabet inc. Class A (GOOGL)  Tencent holdings  NVIDIA Corp (NVDA)  What are the top 5 stocks called? The acronym FAAMG, created by Goldman Sachs, stands for Facebook, Amazon, Apple, Microsoft, and Google, five of the best-performing tech stocks on the market. Is tech a good investment? In general, buying tech stocks during a recession can be a wise choice. Tech stocks have the potential to offer stability and profits over the long term, even if there are dangers associated with all investments. Which sector will boost in 2023? One of the finest industries to invest in going into 2023 is Internet and Information Services. With a compound annual growth rate of 13.5%, the market for IT services worldwide increased from $3,471.35 billion in 2021 to $3,938.75 billion in 2022. At a CAGR of 10.7%, the market is anticipated to reach $5,905.09 billion in 2026. Conclusion The big tech companies or tech-based ETFs have generated stable and healthy returns over the period. So, as an investor, you should consider adding US ETFs to your portfolio. Consult an expert advisor to get the right plan TALK TO AN EXPERT
Empower Your Wealth: Proven Money Management Tips

Empower Your Wealth: Proven Money Management Tips

Becoming wealthy is a matter of good money management. My salary dries up before the end of the month is a statement we hear very often. It happens due to multiple reasons like lifestyle inflation, expenses racing ahead of income, and also uncontrolled (or untracked) spending habits. It constrains us from saving up for our future as well.  Our spending habits affect our future spending capacity. There is a practical rule that helps people channel what they earn to balance both their current and future spending capacity. The name of the rule is the ‘50/30/20 budget rule’.  1. Realistic monthly budget Elizabeth Warren (US Senator from Massachusetts since 2013) stated this rule in her book All Your Worth: The Ultimate Lifetime Money Plan. It serves as a benchmark for most people by providing a well-defined optimum mix of needs, wants, and savings. A rule is a powerful tool for emergency money management, achieving long-term goals, and retirement planning. According to the ‘50/30/20’ split, every monthly income (post-tax) must be divided into three categories of spending: Needs, wants, and savings. What exactly is the 50/30/20 rule? Needs, wants, and savings can be broken down into fragments as follows: NEEDS: 50% of income - This category consists of expenditures on the basic requirements of daily life, for example, food, school fees (considering that the person is a parent), utility bills such as grocery and electricity, life and health insurance premiums, and debt payments too.  WANTS: 30% of income - These include facets of life that are not important for dear life but serve as amusement. Some good examples are purchasing items in the shopping cart like mobile phones, non-essential clothing, etc.  Also, the OTT subscriptions that people buy belong to this category. Dining is an essential part of this category of expenses.  SAVINGS: 20% of income - This component of the 50/30/20 rule tells us to put aside some money into return-generating assets like stocks, bonds, ETFs, and more.  Assume we figure out how to produce a sound return (an abstract figure) over an extensive stretch with a steady increase in contribution (with an expansion in pay) to this category. All things considered, we will then be sitting on a decent corpus of wealth 20-30 years down the line, given the power of compounding. The savings component also allows us to plan for particular future expenses like children’s higher education and retirement.   Begin investment money management Strategy However, it's worth noting that the 50/30/20 split might be altered for a different ratio, based on a person's stage of life. For example, a student earning Rs. 25000, is bound to have a break which is highly skewed towards the savings component of the rule, whereas an adult earning Rs. 25000, might not devote a very high percentage of income to savings because of the expenses to be borne.  One thing might go unnoticed – the fact that the ‘needs’ part of expenditure will saturate at some point, which then allows for higher spending toward the other two categories.  The rule does not seem to work for people with very high and very low-income levels. The former group faces the crunch to accommodate even the necessities, and the very high-income people have the liberty not to divide their income into stringent ratios.  Why money management is important?   Following this rule will help people empower themselves to deploy their due diligence in money matters. Once people gain insight into their monetary inflows and outflows, they will be able to exercise better command over the way they spend their salary, and thus, consequently, become mindful of their spending habits and balance all facets and take maximum benefit from this. The most essential grasp of the rule is not the exact proportion as stated earlier, but the framework that the rule provides. The category split is subjective in nature, depending on the size of the income and the age of the individual.  FAQs What is the 50/30/20 rule? Ans. You are required to divide your in-hand money into three equal portions. 30% of income is spent on wants, 50% on needs, and 20% is set aside for savings and investments. By doing this, you will have established buckets for everything and be operating inside each bucket's allowable limits. What are the 3 most important rules of money? Ans. The first and most important rule is to save a set amount of money—no less than 10% of your income—before you do anything else with it. Keep this number as high as you can, I assure you. 90% of my wages are saved (my parents support my living expenses). Start at 20% and monitor your progress over the next three months. The remaining money may be spent, but exercise caution as to how, when, and where you do it.  Keep a record of your spending, both total and by item. You'll be able to make wiser financial decisions as a result of this.  You can begin creating a monthly budget that specifies how much you can spend on each item once you have a handle on your spending. Create a thorough budget using the data gathered from the tracking app. All expenses, including those for food, rent, bills, and travel, should be included in the budget. Once one has been established, follow it.  What are the 5 simple steps to save money? Ans. 1. Set one distinct objective.  2. Plan for savings.  3. Set up automatic saving.  4. Maintain distinct accounts.  5. Invest  What’s the golden rule of money? Ans. Don't spend more than you make is the basic rule; instead, concentrate on what you can keep. Although it might seem apparent, you'd be astonished at how many people don't comprehend or adhere to this rule, which leads to debt. Take credit card usage as an illustration.  Consult an expert advisor to get the right plan TALK TO AN EXPERT
Maximize Your Wealth: Learn How to Choose Right ETFs

Maximize Your Wealth: Learn How to Choose Right ETFs

What is an ETF? How to choose the right ETF in India? Let's answer these questions in this short blog! ETFs had come a long way since 1993 when the United States launched the first ETF. Since then, ETFs have been a vehicle to grow investor wealth manifold. However, it is paramount that the investor should know how to choose the right ETF. He should base his choice upon various underlying qualities of the ETF.  Selection criteria for how to choose the right ETF 1. Fund size   Any investor must bear the fund size before investing in the ETF. Fund size means the Assets Under Management (AUM). A large AUM implies that many investors are interested in this ETF. The AUM can be a proxy of a soundly-managed fund. They also have higher liquidity, enabling the investor to offload his ETFs with comparative ease as and when the need arises. With a larger fund size, the fund is most likely profitable and is safe from liquidation danger.   2. Age of the ETF The age of the fund is usable as a proxy for the reliability of the fund. A fund that has been around for a considerable amount of time must have a proven track record. Newly launched ETFs generally have a lower trade volume, with no definite reason. There can be two reasons why an ETF has a low trade volume. The trade volume could be lower because it is relatively new or low because of weak demand. New and novice investors should stay vary of such ETFs. The test of time is the safest bet for a beginner.   3. Volume  The higher the ETF volume, the lower the bid price spread, and more is more demand for that ETF. This line sums up the entire game of the book. An investor must look at the volume of the ETF before investing. Analyzing and carefully studying the declining trend and then picking up the ETF is the way to march ahead.  4. Expenses The greatest thing about ETFs is that they cost less than traditional mutual funds. Minimizing costs is the best way to maximize returns. These are the costs that eat up an investor’s profit. The lower the costs, the better. An ETF charges an expense ratio for management; thus, this has to be minimal. So, comparing the expense ratio is a must. The broker charges the transaction cost; this also is a cost whilst trading in ETFs, and this also needs to be minimized.  5. Tracking difference  An ETF tracks the underlying index to the best of its capability. Some ETFs replicate the index entirely by adding all the securities in the exact proportion present in the index. For instance, if an ETF replicates the Sensex, it will have all the guards in the same ratio as the Sensex in its basket. On the other hand, some ETFs will sample some securities from the index and make an ETF. The aforementioned basketing is called a sampled strategy. Both these ETFs may either underperform or overperform their underlying index. The deviation in performance can be due to faulty replication or the expense ratio that eats into your potential gains.   For example: An ETF that has an expense ratio of 0.2% and tracks an index growing at 10%, your profits are automatically reduced to 10-0.2=9.8% compared to the index. Thus, tracking difference plays a crucial role in ETF selection. 6. Benchmark  Studying the underlying assets of an ETF helps gauge its performance of the ETF. Thus, the underlying benchmark is a gauge of its performance. From the diversification point of view, having a broad-based ETF is preferable. Taking a closer look at the underlying assets and their weights is also essential, as it will ensure that the ETF you have invested in suits your goal and investment strategy.   7. Structure of the ETF  Check whether the ETF is a physical ETF or a synthetic ETF.   Physical ETF: It holds the underlying assets or securities of the index, which the ETF tracks in similar or representative proportion according to the fund’s strategy.  Synthetic ETF: These ETFs seek to replicate the index using complex derivatives. For instance, an ETF tracking crude oil prices will not hold barrels of oil but will invest in oil futures. A counterparty would be responsible for delivering the return if oil reaches a specified price level.   A physical ETF is more transparent and accessible to understand than these synthetic ETFs but will protect from counterparty risks. However, synthetic ETFs provide better access to specific markets than physical ETFs. Choose wisely!  FAQs How to choose the best ETF in India? Here are some checkpoints to complete before choosing the best ETF in India: Liquidity: How easy is it to withdraw your money from any given ETF Expense Ratio: What is the cost of managing the ETF and how much percentage would you have to pay? Tracking errors in any ETFs Check past performances and returns of the ETFs you will be investing in Is ETFs worth investing? A fantastic way to vary your investment portfolio is with an ETF. Whenever you participate in the stock market, you have a finite amount of equity options. What are some advantages of ETFs? Some of the biggest advantages of ETFs are: Diversification and global stock exposure Trading flexibility Low costs Transparency Tax efficiency Risk management Professional management What are some disadvantages of ETFs? Some of the biggest disadvantages of ETFs are: Additional charges like Hidden fees, trading fees, and operating fees Lack of liquidity Tracking errors lower interest yields. Following the above steps and keeping in mind your investment strategy and goals is the way to go forward.  Consult an expert advisor to get the right plan TALK TO AN EXPERT
ETF
Russia-Ukraine crisis – Should you buy gold? 

Russia-Ukraine crisis – Should you buy gold? 

Gold, often referred to as a safe haven, acts as a diversification product against the stock market. Currently, the Ukraine-Russia conflict has quite an impact on the market. This geopolitical issue has had a significant negative effect on the stock market, whereas gold prices increased tremendously.  Gold crossed ₹51,500 per 10 gm on February 24, 2022 – the highest in 13 months, as Russia declared war on Ukraine. Over the past twelve months, gold prices have been inching north due to the global market's heightened volatility considering Covid-19, Omicron, and rising geopolitical tensions and factors such as rising inflation.   Gold vs Capital market  The correlation between gold and the stock market cannot be established directly. Gold has an inverse relationship with the stock market. Gold has a negative correlation to the stock market movement. The chart below shows how the market panned out over the past 12 months. One thing is evident the market witnessed high volatility owing to multiple economic and global factors.  The above graph shows the monthly gold price movement over one year.  Also, going by the VIX chart, it is evident that the volatility in the market has increased, and in some small-cap and mid-cap segments, the price corrections have been very steep. On February 24, the market fell massively by nearly 4.7% - the single largest fall in the last two years.  Should you consider investing in gold?  Investors commonly perceive gold as a haven in a severe stock market downturn. Historically it has been proved that whenever the stock market plummets, gold performs very well. The sale of gold coins, gold bars, and gold ETFs is maximum when the stock market performs poorly.   Similarly, gold demand picks up fast when a country's GDP is faltering. This is because when the economy is unstable, investors prefer to park their money in hard assets.  Value is held for ages - Unlike other currencies or assets, gold has maintained its value throughout the ages. While people see it as a means of transferring wealth from one generation to other, we believe gold is one of the best instruments that have sustained value for centuries now.  Helps beat inflation – Gold has always been an excellent hedge against inflation. Its price tends to increase with the rising cost of living. Typically, while stock tends to plunge during the high-inflation period, gold, on the contrary, results in a direct correlation with the price increase. Thus, it provides a natural hedge against inflation.  Geopolitical Uncertainty – Gold as a universal investment instrument holds its value in times of uncertainty – be it financial uncertainty or geopolitical uncertainty. Often referred to as the "crisis commodity", the yellow metal seems to see a high demand from people when world tensions rise. For example, in response to the crisis in the European Union, gold prices started to inch north.    Portfolio Diversification – One of the basic concepts of diversification is finding investments that are not closely correlated to one another. Historically, it has been found that gold has had a negative correlation with other financial instruments such as stocks. This can be vetted with the following example:  During 1970, while the stock prices were terrible, it was great for gold.  Between the 1980s and 1990s, while the era was good for stocks, gold prices crashed significantly.  In 2008, the stock market saw a significant correction and many investors migrated to gold.  We believe a well-diversified portfolio with the right combination of stocks, bonds (both standalone and in the form of mutual funds), gold, and liquid cash in a portfolio will help reduce the overall risk of the portfolio while maximizing returns.  Weakness in global currency – US Dollar is regarded as one of the most important currencies in the world and constitutes to be a part of every treasury reserve held by economies globally. During times when the value of the dollar falls against other currencies, as it happened in 2008, it is likely that people flock to the security of gold.  Demand-Supply mismatch – The supply of gold in the market has been falling since the 1990s, and much of the gold sales are made from the vaults of central banks, given the production of new gold from mines has been declining. On the other hand, rising wealth in emerging markets has boosted the demand for gold over the past couple of decades. Thus, as a general rule, reducing supply coupled with rising demand results in increasing gold prices.  How much allocation is ideal for the gold  Investment in gold, as discussed above, should only be considered as a protection against macroeconomic shocks. Thus, it should form a part of your portfolio based on your risk appetite. We believe people in India generally act too extreme. They tend to either invest a 100% portfolio in gold or don't invest at all. Based on the risk-return profile of gold and other asset class, it should not account for more than 10% of the total portfolio.  How to invest in gold?  Once an investor has determined the allocation of gold to the overall portfolio, an investor should look at the ways by which an investor can invest in gold:  Physical Gold - Can be bought as coins or bars  Jewelry - It is another option, but the cost of converting gold into jewelry is high.   Gold Funds and ETFs - Passive investment in gold. An investor can invest in units of gold funds or gold exchange-traded funds (ETFs) that are managed by asset-managed companies.  E-gold - It can be bought on a commodity exchange through any broker. Re-materialization of e-gold allows conversion into physical gold as per the requirement of the investor.  Sovereign Gold Bonds - Bonds offer similar returns that are offered by physical gold. It also provides tax benefits.  Why digital gold and the benefits of investing in digital gold  Digital Gold is issued by MMTC (Metals and Minerals Trading Corporation of India) or Augmont. Investing in digital gold is just like buying physical gold. The only exception is that there is no physical possession of gold. This offers a clear advantage over issues like purity, storage, making charges, wastage, and liquidity.     Gold mutual funds and ETFs are also alternatives to physical gold. However, their efficiency doesn't match that of digital gold. This is mainly because of their expense ratios and other relevant charges that are paid to the fund house.   Here are some benefits of investing in digital gold -   Can be started with as low as Rs. 10/- No charges such as expense ratio  Holdings can be exchanged against physical gold with the option of door delivery.  Thus, digital gold is increasingly becoming one of the best ways to invest in gold.  Exchange-traded funds (ETFs) that invest in gold and other precious metals have seen massive inflows as investors rush to shield themselves. Investors are mainly panic selling their stock investments under the current conflict situation and investing in gold, gold ETFs or digital gold to hedge against their massive losses in stocks.  With the situation worsening, having Russia started its invasion of Ukraine, the markets are likely to correct until the tension between the two countries eases. This is like shooting the gold prices north. It is advisable for an investor looking to protect the portfolio from short-term volatility to take a position in gold.  FAQs Why do people buy gold in crisis?   The sale of gold coins, gold bars, and gold ETFs is maximum when the stock market performs poorly. Similarly, gold demand picks up fast when a country’s GDP falters. This is because when the economy is unstable, investors prefer to park their money in hard assets. People invest in gold during a crisis because:   Gold maintains its value for a long period   It helps beat inflation   Gold holds its value during geopolitical uncertainty   It offers portfolio diversification  Should we buy gold during the war?   Investors commonly perceive gold as a haven in a severe stock market downturn. Historically it has been proved that whenever the stock market plummets, gold performs very well, which is the case when two countries are at war.   The sale of gold coins, gold bars, and gold ETFs is maximum when the stock market performs poorly. Similarly, gold demand picks up fast when a country’s GDP falters. This is because when the economy is unstable, investors prefer to park their money in hard assets.   Will gold go up because of Ukraine?   When Russia declared war on Ukraine several months back, the gold crossed ₹51,500 per 10 gm on February 24, 2022, which was the highest in 13 months. From 2021 to 2022, gold prices continued to rise because of Omicron spread and rising geopolitical tensions.   Will Russia's war affect gold?   Gold, often referred to as a safe haven, acts as a diversification product against the stock market. The Ukraine-Russia conflict has had quite an impact on the market. This geopolitical issue has had a significant adverse effect on the stock market, whereas gold prices increased tremendously.   Also, keep in mind that gold prices will always keep growing due to the never-ending demand for gold. 
How to choose abroad education loans?

How to choose abroad education loans?

261,406 Indian students studied abroad in 2022, according to the Ministry of External Affairs, and more students are anticipated to enroll in top-notch programs next year.  The best way to pay for studying abroad is often thought to be through student loans. Loans for studying abroad come in a variety of forms. Let's learn about them and help you choose your best option. Types of education loans  Let's first explore the two major forms of education loans accessible to international students who want to study abroad through collateral-free education loans: 1. Collateral education loan  To get the required loan amount for a collateral education loan, the borrower must pledge collateral (such as a house, property, gold, insurance policies, land, fixed deposits, etc.) as security. Collateral loans can further be divided into three categories; Immovable property: This comprises buildings, flat surfaces, uncultivated land, and areas with well-defined borders. Liquid security: This covers LICs, government bonds, fixed deposits, etc. Third-party collateral: Only government and public banks are covered by this law. In this situation, if a candidate lacks the necessary assets listed above or is unable to provide the value to match the necessary loan amount, they may pledge the asset of a third party as collateral. In essence, the term "third party" refers to those who are not members of the candidate's close family. For instance, the candidate's uncle, aunt, pals, or the major co-applicant, etc. 2. Non-collateral education loan  The borrower of an education loan for international studies without collateral is not required to provide collateral as security, in contrast to an education loan with collateral. In the case of an education loan without collateral for abroad, borrowers are required to submit documentation and fulfill relevant requirements and eligibility criteria. Types of education loans based on lenders The following are the different types of education loans based on lenders:  1. Loans from Public-Sector Banks In India, public-sector banks or government banks give education loans to those who want to study abroad mostly based on collateral that is given as security. Government banks offer unsecured loans to students for INR 7.5 lakh. Applicants must offer collateral as security for sums more than this. Compared to commercial lenders, public sector banks provide lower interest rates. Section 80E offers tax advantages for government bank student loans. Major public-sector banks that provide loans for international schooling include: State Bank of India Bank of Baroda Punjab National Bank Union Bank of India 2. Loans from Private Banks Both secured and unsecured loans for study abroad are available from private Indian banks to students. The amount that may be approved depends on several variables, including the applicant's profile, the co-applicants financial situation, the nation, the course, etc. Private-sector banks provide better interest rates than NBFCs and foreign lenders, but they are higher than government banks. ROI generally begins around 11% annually. Private bank student loans are also eligible for Section 80E tax advantages. Compared to government banks, private banks require less time to approve an education loan. Several of the largest private sector banks providing loans for international schooling are: ICICI Bank Axis Bank 3. Loans from Non-Banking Financial Companies (NBFCs) NBFCs provide unsecured and secured student loans for international studies. The maximum loan amount that can be approved varies depending on several variables, including the applicant's profile and the financial status of any co-applicants. When compared to commercial banks and government banks, the interest rates on loans from NBFCs are on the higher side. The interest rate for NBFC education loans normally ranges from 11.5% to 16% per annum. NBFC education loans do not qualify for Section 80E tax advantages. Compared to government banks and commercial banks, NBFCs require less time to complete an education loan. Some of the largest NBFCs providing loans for international schooling include: HDFC Credila Avanse  InCred Auxilo https://www.youtube.com/watch?v=4gTQkdePOWM&feature=youtu.be&ab_channel=EduFund How to choose the right abroad education loans for higher education?  Research and thorough comparison are necessary while selecting the best education loan for higher education. Before choosing an education loan, compare the interest rates and repayment options offered by several institutions. You may also get in touch with an expert. They can assist you in negotiating a lower interest rate and in organizing your repayment plan to help you save money. Before choosing to take out an education loan, ascertain how much money you require to fund your higher education. Our College Cost Calculator will help you determine how much additional money you'll need to live comfortably in your college city by providing you with information on the tuition and living costs there. In the modern, dynamic world, a good education is crucial because it gives students more self-confidence and gives them the tools they need to live their best lives. Therefore, although taking out a loan first seems scary, as long as the student is dedicated and makes the most of the opportunity, it will ultimately pay off. Consult an expert advisor to get the right plan TALK TO AN EXPERT
UTI India Consumer Fund

UTI India Consumer Fund

UTI is one of the pioneers of the Indian Mutual Fund Industry. With over Rs 2.4 lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMF offers products across asset classes.   Let us talk about the consumer product – UTI India Consumer Fund.  https://www.youtube.com/shorts/2kO9_PCtunA About the UTI India Consumer Fund  Investment objective The objective of the scheme is to generate long-term capital appreciation by investing predominantly in companies that are expected to benefit from the growth of consumption, changing demographics, consumer aspirants, and lifestyle. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.  Investment process   The fund follows the following investment strategy –   Universe of companies with B2C focus across sectors.  Companies are likely to benefit from the growth of consumption through bottom-up stock picking.  Emphasis on companies with the longevity of growth while generating sustainable cash flows.  High active weights with a market cap agnostic approach Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 75% and sectoral major exposure is Fast Moving Consumer Goods which accounts for roughly one-fourth of the portfolio. The top 4 sectors hold nearly 75% of the portfolio.  Note: Data as of 31st Dec 2022. Source: UTIMF  Top 5 holdings for UTI India Consumer Fund  Name Weightage % Maruti Suzuki India Ltd. 7.79 Bharti Airtel Ltd. 7.44 Asian Paints Ltd. 5.46 Titan Company Ltd. 5.16 Nestle India Ltd. 4.55 Note: Data as of 31st Dec 2022. Source: UTIMF  Performance  Note: Data as of 31st Dec 2022. Source: UTIMF  The fund has generated a CAGR (Compounded Annual Growth Rate) of 9.16% since inception. Invest Now Fund manager  Mr. Vishal Chopda is a Vice President and Fund Manager in the domestic Equity Division of UTI Asset Management Company Ltd. Vishal joined UTI AMC in January 2011. In UTI he has worked for the past 7 years in the Department of Fund Management as Research Analyst.  Who should invest in UTI India Consumer Fund?  Investors looking to supplement their core equity portfolio with a differentiated portfolio strategy and invest in the theme of growing consumerism and changing the lifestyle of the Indian consumer.  Why invest in this fund?  The fund endeavors to invest in companies that are predominantly consumer-facing.  Invests in sectors that benefit directly or indirectly from rising consumption, changing demographics, consumer aspirations, and lifestyles.  In stock, picking funds emphasize earnings growth prospects, management, valuation, macro trends, etc.  The Fund would be agnostic to the market capitalization spectrum.  Horizon  One should look at investing for a minimum of 5 years or more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The UTI India Consumer Fund is one of the oldest funds with a track record of 15 years and has delivered ~10% CAGR consistently. Thus, it is best for investors who are willing to take some additional risk for good returns over a long-term spectrum.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 
UTI Midcap Fund

UTI Midcap Fund

UTI is one of the pioneers of the Indian Mutual Fund Industry. With over Rs 2.4 lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMF offers products across asset classes.   Let us talk about the flagship product – UTI Mid Cap Fund About the UTI Mid Cap Fund  Investment objective The objective of the scheme is to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of mid-cap companies.  Investment strategy   The fund follows the following investment strategy –   Focus on companies with scalable business models and long growth runway  Open to investing in good companies whose business is going through a transitory phase of weakness OR undergoing a transformational change.  Bottom-up approach for stock picking with sector agnostic allocation approach.  65% of the corpus is invested in mid-cap companies, with the balance distributed in small caps.  Flexibility to stay invested in mid-caps that graduate to the large-cap status Portfolio composition  The portfolio holds the major exposure in mid-cap stocks at 68% and the sectoral major exposure is Financial Services which accounts for roughly 17.60% of the portfolio. The top 4 sectors hold nearly 55% of the portfolio. Note: Data as of 31st Dec 2022. Source: UTIMF  Top 5 holdings for UTI Mid Cap Fund  Name Weightage % Tube Investments of India Ltd 4.37% Cholamandalam Investment & Finance Company Ltd 3.14% Federal Bank Ltd. 3.05% Shriram Finance Ltd 2.42% PI Industries Ltd 2.38% Note: Data as of 31st Dec 2022. Source: UTIMF Performance  Note: Data as of 31st Dec 2022. Source: UTIMF  The fund has given healthy returns by generating a CAGR (Compounded Annual Growth Rate) of 17.55% since inception.  Fund manager  The fund manager, Mr. Ankit Agarwal, joined UTI in August 2019. Presently, he has been designated as Fund Manager for managing UTI Mid Cap Fund. He has more than 12 years of experience. Prior to joining UTI, he was working with Lehman Brothers, and Barclays Wealth and had been associated with Centrum Broking Ltd. also in the capacity of Sr. Vice President. He has done his graduation from the National Institute of Technology (B.Tech.) and holds a postgraduate degree in Management (PGDM) from IIM, Bangalore.  Who should invest in UTI Mid Cap Fund?  Investors looking to invest in a portfolio that invests in the high growth potential of medium-sized companies.  Why invest in this Fund?  A true-to-label mid-cap fund with a focus on scalable business models and a long growth runway.  A portfolio of mid-caps tends to offer higher growth potential than large-cap stocks, however, this is accompanied by potentially higher volatility. The strategy endeavors to manage this through prudent diversification and risk management.  The Fund pursues a bottom-up process for stock selection and has a blended approach for both value and growth-style investing with a growth bias.  The Fund maintains a well-diversified portfolio and follows a patient approach toward companies in the portfolio.  Horizon  One should look at investing for a minimum of 5 years or more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The UTI Mid Cap Fund is one of the oldest funds with a track record of 18 years and has delivered ~17.5% CAGR consistently. Thus, it is best for investors who are willing to take some additional risk for good returns over a long-term spectrum. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.
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