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Mutual Fund Fees and Expenses 

Mutual Fund Fees and Expenses 

Sometime back, I encountered a mythological tale from the Mahabharata depicting the narrative of Draupadi, who married five husbands. The story told how Draupadi had asked Shiva for a husband with five qualities - virtue, strength, learning, charm and wisdom. Since no single man could possess all five traits, Shiva gave her five husbands, each with one trait. Similarly, in investing, we would like to have a singular option that provides a plethora of benefits, such as higher returns, reduced risk, professional management, no lock-in period, and accessibility. Luckily, here we have mutual funds to our rescue. Let's look at mutual funds, how they work, and the mutual fund fees and expenses to consider before you embark on your investing journey! Join our robust WhatsApp Community that helps parents invest! What is a Mutual Fund?  A mutual fund is a trust that pools the savings of several investors who share a common investment rationale. Fund managers associated with schemes manage the investors’ money by investing in securities to generate returns and charge fees for that return generated. The remaining return is passed on to the investors. A mutual fund investment involves several expenses, and you, as an investor, should be aware of these fees.   Cost of Delay Explained What are the fees associated with Mutual Fund Investment?  Here are all the mutual fund fees and expenses that you need to be aware of before you start your SIP (monthly) or place a one-time order. Entry load Entry load is the amount or fees an investor pays while entering the scheme. Entry load is collected to cover costs of distribution by the company. Earlier, different mutual fund houses charged different fees as entry load. However, according to the latest SEBI regulations, no fund house can charge an entry load from investors.  Exit load Exit load is the amount that Asset Management Companies (AMCs) charge when an investor is exiting or redeeming their funds. It is a fee charged by the fund house as a penalty for an early exit. The primary objective behind these fees is to discourage investors from pulling out their investments too early. The exit load differs from scheme to scheme. Generally, in India, equity schemes attract an exit load of 1% if the units are redeemed within a year from the date of allotment.  Transaction charges This charge is levied on an individual when they make investments. On average, a transaction cost of 100- 150 is levied on investments worth 10,000 and above. If investments are less than 10,000, then it does not attract these charges. Further, the government collects 0.005% of the overall purchase amount of all mutual fund schemes as stamp duty.   Expense ratio The expense ratio is the fees mutual fund companies charge to manage the mutual funds. It is expressed as a percentage of total capital invested. An expense ratio for an actively managed portfolio generally lies in the range of 0.5% to 0.75%; an expense ratio greater than 1.5% is considered very high.  For example, if the expense ratio is 0.5%, it implies that an annual payment is Rs. 50 is charged for every 10,000 invested. Here, it is essential to understand that the expense ratio is an annual fee charged if an investor retains ownership of the fund annually. Though presented as an annual fee, the amount is deducted daily on a pro-rata basis. When investors invest in regular schemes through distributors or brokers, AMCs pay these mediators a commission, hence in such cases the expense ratio will be higher.  Taxation on capital gains provided by Mutual Funds Knowing about taxes on your mutual fund investments is crucial. Profits from mutual fund investments are taxable. The holding period and type of mutual fund affect the tax rate on capital gains. The holding period refers to the time investors hold units in mutual funds.   Summary of Taxation of Mutual Funds for units to be acquired on or after 01st April 2023  Particulars Allocation of the Scheme to Domestic Equities is Less than or equal to 35% More than 35% but less than or equal to 65% More than 65% Type of Capital Gain Short term irrespective of the holding period Long term if units are held for more than 36 months Long term if units are held for more than 12 months Tax Rate Slab rate LTCG^ - 20% with the benefit of indexation LTCG - 10% of gains exceeding Rs. 1 lakh without indexation benefit - STCG^ - Slab Rate STCG - 15%       Note: Surcharge and Education Health and Education Cess are applicable separately   STCG – Short-Term Capital Gain and LTCG – Long-Term Capital Gain  Remember to account for fees and expenses when investing. Awareness about all the charges you pay throughout your investment journey is necessary. Understanding these costs is crucial because it ensures transparency, impacts returns, helps manage costs and aids risk assessment. Thereby helping you better plan your financial goals.  Start Investing!
Which investment is best for your child’s future? 

Which investment is best for your child’s future? 

Financial planning is crucial when discussing the ideal investment to secure your child's future. Parents strive to provide their children with the best financial stability. Rightly planning out costs and selecting suitable investment options is one of the most effective techniques for achieving this goal.   The cost of education in India has been rising significantly. Studies suggest that the inflation in the education sector has been between 11-12 % annually over the last decade. These figures indicate that the costs of school can double every six to seven years. Creating a robust financial cushion is the best approach to beat this growing education inflation. Several options in India are designed specially to cater to the needs of children.   Investing in your child's future is a significant responsibility of a parent. It is crucial to make informed decisions while selecting any option. Here are the investment options available.  Sukanya Samriddhi Yojana: This Yojana is a government supported initiative and it was launched as a part of the “Beti Bachao, Beti Padhao” campaign. Here, the investment value is a Minimum of 250 and a Maximum of 1.5 lakh per annum. The current interest rate is 8.2% per annum. The maturity duration is 21 years from the account opening or upon the daughter's marriage. Investors get tax benefits under Section 80C, and also the interest and maturity values are tax-free.  Real Estate: Apart from investing only in property, one can now invest in REIT (Real Estate Investment Trust) and Real Estate Funds. Investing in REITs provides substantial dividend income and delivers steady capital appreciation over the long term.  Gold: Indian households are famous for investing in physical gold. Alternatively, parents can also choose between gold ETFs and sovereign gold bonds (SGBs) as a promising avenue for long-term investment. These avenues can be more profitable than physical gold as one saves costs on making charges and misses out on the 2.5% annual interest received on SGBs (2023-24 series IV SGBs).   Bank deposits: Historic tools of investment available in the market to earn regular and steady returns. Parents can invest for a more extended period; however, the return on it will not beat the rising inflation with the nominal return it delivers.  Mutual Funds: In mutual funds, we have options based on individual financial position, time horizon and risk tolerance. Equity mutual fund investments rank high among children's investment plans. As we know, mutual funds deliver better returns than other investment options available in the market. Historically, it has provided 12%-15% annualized returns.   Join our WhatsApp Community! We'd like to point out that mutual fund investments offer distinct advantages over real estate, gold, and fixed deposits. They provide diversification, liquidity, and professional management, reducing risk while potentially offering higher returns. Unlike real estate, mutual funds require a lower initial investment and entail no maintenance costs. Compared to gold, they tend to offer greater returns and accessibility. Additionally, mutual funds typically outperform fixed deposits, offering the potential for inflation-beating returns over the long term.  With proper planning and strategies as an investor, one can make decisions that accurately reflect investing goals. An investor can set a step-up SIP to get better returns. With mutual funds, the longer you stay invested, the better you will get.  Learn about asset allocation in 2 mins! Benefits of investing in a mutual fund Mutual funds are managed by fund managers who have professional expertise. A fund manager continuously monitors the investors' investment and rebalances the portfolio to meet the objectives.   Mutual fund investments offer an easy way to diversify your investment portfolio. With the benefit of diversification, the risk associated with one security is countered by others. By investing here, investors will ensure they are not putting all their eggs in one basket.  For many investors, investing directly in an asset class requiring large amounts can be daunting. A mutual fund provides the benefit of investing in small amounts. An investor can start investing with as little as 100 rupees investment in a mutual fund.  Mutual funds are also on the liquid end of the spectrum; an investor can redeem the amount quickly if required. Redemptions are settled on a T+3 basis. Mutual funds also provide tax benefits under section 80C of the Income Tax Act, 1961, if you choose to invest in ELSS funds. Mutual fund investments are tax-efficient when held for a longer period.  Join our WhatsApp community to learn more! If you read this, you would have understood that there is no single definition of 'best investment for kids'; instead, it is based on your future financial requirements, time horizon, and risk appetite. As a parent, remember to diversify, rebalance, and reallocate your investments periodically. Doing this will significantly reduce the effect of market volatility on your portfolio. If you are a young parent and starting the investment journey for your kids, consider investing in equity as an early investor to get relatively higher returns. Remember to bring discipline to savings and stay invested for the longer term.  If you are a parent looking for the best investment options for your kid's future, you are at the right place. Please book your meeting and connect with our wealth advisor.   Happy investing! 
How do you need to save to send your child to Cambridge?

How do you need to save to send your child to Cambridge?

Did you know that international students have to pay college fees on top of tuition fees to study at Cambridge University? This is why you need to save to send your child to Cambridge University. UK’s oldest and top institute with the lowest acceptance rate and skyrocketing tuition fees – getting admission at this college is not enough. From expensive tuition costs to living expenses costing £12,400 on average (11-12 lakhs yearly), the need to invest and save is urgent! Suppose, if your child goes for an MBA in this university, he or she will have to pay Rs 58 to 59 lakhs per year for tuition fees. Similarly, if your child is going for BTech or MBBS here, he or she will have to pay somewhere around Rs 33 – 58 lakhs per year for tuition fees. How do you need to save to send your child to Cambridge?  1. Preparing an education fund  Preparing an education fund helps in growing your financial corpus. You can do this by investing in financial assets which have a longer-term plan. These plans include mutual funds, ETFs, and so on. Start by deciding your monthly budget. Choose an investment plan which suits your need and budget. Make sure that you do not invest in a plan which offers low returns. ULIPs are a really good option if you are saving up for your child’s education at the University of Cambridge.   Public Provident Fund is another great option that you can go for. Parents prefer going for PPF because it provides a specific interest rate and is extremely secure. Apart from this, you must always prepare a long-term investment option.   Start Investing in Mutual Funds 2. Balanced investment options  Fixed deposits are great ways to invest but do not beat inflation. You cannot rely on them for the long term since they provide fixed returns of 5-6% while inflation in the current economy averages around 7-8%. The chances are that as an investor, you will lose the opportunity to gain from the markets.   Equity funds will be a good option for you if you start early as a parent. Around eight to ten years are required for you to build the right amount of corpus. You can go for SIPs in equity funds because they have a good return value and do not require heavy sums of money in one go.   Equity exposure until five years to the date of maturity can prove to be extremely beneficial. In the last decade, equity mutual funds have delivered an average return of 15%.   If you consider yourself a moderate-risk investor, you can still invest 60% to 70% of your total investment amount in equities. Make sure that you have a sufficiently long investing horizon so that you can counter crashes and volatility. Remember investing is risky but a good plan and a great advisor can help you manage your money better even in the worst climate.    Start Investing in US Market 3. Aggressive investment options  Equity investment leads to higher risk but also good returns. If you want to add more options to your portfolio, you can go for aggressive investments. In such a type of investment option, the investor takes on more risk to that he or she can achieve a higher potential return. Investing in stocks is a way of doing so. Although it is quite volatile and requires daily inspection, it has the potential to offer a chance for greater gains when compared to other types of investment.   Some other types of aggressive investment options are stock mutual funds, real estate investment trusts, hedge funds, emerging markets, small-cap stock funds, private equity, foreign stocks, global funds, and so on.  There are many ways to save to send your child to Cambridge but all start with smart planning for the right cost with the right experts. If you want the best for your child’s education, connect with us!  FAQs What are the fees of the University of Cambridge in Indian rupees? Tuition fees - 21.57 - 56.31 lakhs. Is Cambridge expensive for students? Ans. Yes, the University of Cambridge is generally considered expensive for students due to tuition fees, living costs, and other associated expenses. However, scholarships, grants, and financial aid options are available to help mitigate the costs for eligible students. How much does it cost to go to Cambridge for 4 years? Ans. The expected four-year cost of tuition for members of the class of 2026 who were admitted in the fall of 2022 is $71,364. The anticipated four-year cost of enrollment, including living expenses and personal fees, is $132,625. Talk to Our Experts
How to choose the best mutual fund scheme?

How to choose the best mutual fund scheme?

Mutual funds are ideal investment options for both risk-aggressive and risk-averse investors as they help to achieve investment goals easily and effectively. Choosing the best mutual fund scheme irrespective of the various alternatives is a challenge in itself.  Both beginners and seasoned investors must take precautions while investing because of the immense risk involved. You do not want to throw away your hard-earned money on just a hearsay scheme or a fund that offers average returns, especially when you have a scope of earning higher returns at less risk. https://www.youtube.com/watch?v=uYlrsx9_yog 10 steps to Choose the Best Mutual Fund Scheme Step 1: Identify Investment Goals   Identify your investment goals by answering related questions like is the objective current income or long-term capital gain? Is the money for short-term like education expenses of children or future expenses like the retirement fund that is very far away? Identifying the investment goals helps to choose the mutual fund scheme that will fulfill the financial aspiration of the investor effectively. Step 2: Determine Risk Tolerance How much return are you expecting on your investment matters as it helps to determine whether the investor is a moderate or high-risk taker? Risk tolerance refers to the risk that the investor is willing to take with his investments.  It is now compulsory for all mutual fund houses to show the risk associated with the invested amount. Step 3: Look at the Time Horizon The time horizon is the period for which the investor desires to invest his money in a mutual fund scheme. It can be short or long term ranging from one day to even more than five years.  There are different fund categories meant for different time horizons and it is better to choose the best mutual fund scheme that will be able to meet your specific time horizons. Step 4: Focus on the Fund Type - Growth or Dividend Choose the fund type which is the best option to meet your specific needs. The growth option is best for long-term needs as it can handle higher volatility and risk factors. These funds also have greater potential for higher returns.  Dividend funds are short-term investment goals. They provide interest regularly and are considered stable investments with moderate returns. Step 5: Look at the Fees and Loads Some mutual funds charge a sales fee at either the time of purchase or sale of the investment known as a load. The purpose of the load is to cover the associated administrative charges and discourage turnover. Mutual fund houses levy various charges which are paid by the investors, who must know about them in detail before choosing the mutual fund scheme for themselves.  Step 6: Consider the Assets Under Active or Passive Management Determine the type of assets you want in your portfolio and then choose the mutual fund scheme accordingly.  Actively managed funds levy higher fees and try to outperform the benchmark index whereas passively managed funds levy lower fees and try to track the performance of a benchmark index. Step 7: Evaluate Managers and Past Results Conduct research about the fund's history by asking yourself whether the fund has suffered more volatility than other major funds and whether the fund manager was able to deliver the expected results.  Reviewing the fund’s prospectus gives a fair idea of its future and helps to choose the best fund. Step 8: Size of the Fund Although the size of the fund does not stop it from meeting the investment goals investors should keep it manageable for better handling. Step 9: Do not be Dependent Only on the History Although the fund history is an indicator of future performance it cannot guarantee high returns. Take related things into consideration like comparison with the benchmark index, fund types, fees, risk factors, etc. before making a viable choice about the mutual fund scheme you want to invest in. Step 10: Select What Matters Investors must focus on things that matter for instance expense ratios, investment strategy, risk factors fees, and a chance of future success. It is important to take the help of reputed platforms and understand the best ways of choosing the right mutual fund scheme for yourself.  The EduFund App along with the SIP calculator makes the process of choosing the mutual fund scheme an easy experience. Customer-friendly saving/ investment experts provide customized solutions, top-class security enables secured transactions, and a scientific fund tracker screens various financial scenarios to recommend the best out of the 4000+ mutual funds associated with the platform. Every investor wants to choose the best mutual fund scheme but they must consider their individual preferences, investment objective, risk appetite, and the fundamental features of the scheme before making a final decision. https://www.youtube.com/shorts/6dthLxZnOH8 FAQs What are the key factors to consider when choosing a mutual fund scheme? Key factors include investment goals, risk tolerance, time horizon, fund type (growth or dividend), fees, assets management style, fund manager's track record, fund size, and various other critical parameters. How can one determine their risk tolerance? Risk tolerance is determined by the investor's willingness to accept risk for potentially higher returns. It can be assessed by evaluating how much volatility or fluctuation in investment value one is comfortable with. What is the significance of the time horizon in selecting a mutual fund scheme? The time horizon indicates how long you plan to keep your money invested. It's crucial because different fund categories are suitable for different time frames, and choosing the right one aligns with your financial goals. What are the fees and loads associated with mutual funds? Mutual funds may charge sales fees, known as loads, at the time of purchase or sale. Investors should also be aware of other fees like expense ratios, which cover administrative costs, and impact overall returns. Why is it important to consider a fund manager's past results? Evaluating a fund manager's track record provides insight into their ability to deliver expected results and manage the fund effectively. Past performance is one of the factors investors consider when making investment decisions. TALK TO AN EXPERT
India's Priciest Schools: Top Picks

India's Priciest Schools: Top Picks

If you are an Indian parent looking forward to providing your kids with the best education possible and curious about the most expensive schools in India for a child's education, then keep reading!  Which are the most expensive schools in India? Let's find out the most expensive schools in India for children's education and where they are located. 1. The Doon School, Dehradun The Doon School in Dehradun is one of the most expensive and best institutions in India. Publications like The New York Times, BBC, and Times of India have framed it as one of the best schools in India. This school provides education of the greatest calibre. The school’s alumni list is enough to encourage you to send your child to this school!  Amitav Ghosh, Abhinav Bindra, Ali Fazal, Anish Kapoor, Karan Thapar, and Chandrachur Singh are some of the notable alumni of this school.  Annual fees: Cost around INR 10 lakhs - INR 11 lakhs Semester expenses: Around INR 25,000 Address: Mall Road, Dehradun 248001.Email: info@doonschool.comPhone: +91-135-2526400Website: www.doonschool.com Expensive Schools in Dehradun Read More 2. The Scindia School, Gwalior The Scindia School in Gwalior is a CBSE-affiliated school in India and is considered one of the most expensive schools in India for your child's education. It is also called the Sardar School. The school has one of the best features in the entire city because it is perched atop the Gwalior fort. The examinations are administered between January and February every year. Salman Khan, Mukesh Ambani, Anurag Kashyap, Arbaaz Khan, Nitin Mukesh, and Ameen Sayani are some of the notable alumni of this school.  Annual fees: Cost around INR 12 lakhs - INR 13 lakhs Address: The Fort, Gwalior, Madhya Pradesh 474008.Email: office@scindia.eduPhone: +91 751 248 0750Website: www.scindia.edu Schools in Gwalior for Child Education Read More 3. The Mayo College, Ajmer The Mayo College in Ajmer is an all-boys college in Rajasthan, popular among Indians and NRIs. It was established to provide modern education to Indian nobility. It is one of the oldest schools and is known for its reverence for Indian culture. The curriculum at Mayo College incorporates technological and technical proficiency, fine arts, theatre, music, sports, and academic excellence. Indra Sinha, Vivek Oberoi, The Sultan of Oman, and Tinnu Anand are some of the alumni of the school. Annual fees: Cost around INR 6.5 lakhs - INR 7 lakhs for Indians and 13 lakhs for NRIs. Address: Mayo College, Srinagar Road, Ajmer, Rajasthan 305001Email: principal@mayocollege.comPhone: 0145 – 2661154, 2664393Website: www.mayocollege.com Expensive Schools in Ajmer Read More 4. Welham Boys School, Dehradun Welham Boys School is one of the most expensive and prestigious colleges in Dehradun, Uttarakhand, India. It is the educational center of the nation situated on 30 acres of land and is affiliated with the CBSE board. Rajiv Gandhi, Sanjay Gandhi, Navin Patnayak, Zayed Khan, Mansoor Ali Khan Pataudi, and Captain Amrinder Singh are some of the notable alumni of the school.  Annual fees: Cost around INR 5.7 lakhs - INR 6 lakhs.  Address: Welham Boys’ School,5, Circular Road, Dehra Dun – 248001,Uttarakhand, India.Email: admissions@welhamboys.org and viceprincipal@welhamboys.orgPhone: 0135 – 2657944, 2657120Website: www.welhamboys.org Create Goals For Child Education in Premium Schools 5. Woodstock School, Mussoorie Woodstock School in Mussoorie is a reputed co-ed residential educational School that is one of the best and most expensive schools in India. It is the first institution in India to get a formal reputation as an international board World School with a middle-year program. There is diploma program authorization as well. Stephen Alter, Tom Alter, James Taylor, Philips Devol, and Jeet Singh are some of the notable alumni of this school.  The tuition fees of this school range from 16 lakhs for classes 6 to 8 and 17.7 lakhs for classes 10 and 12. Address: Woodstock School, Mussoorie, Uttarakhand,248179, India.Email: admissions@woodstock.ac.inPhone: +91 (135) 263-9000Website: www.woodstockschool.in Expensive Schools in Mussoorie Read More 6. Birla International School, Pilani Birla International School in Pilani is also known as the Vidya Niketan School. There are three sections of this school: the middle section, the senior section, and the junior section. Established in 1944, this is one of the most expensive schools in India for your child's education.  Vinod Rai, General VK Singh, and Vivek Chand Sehgal are some of the notable alumni of this school.  Annual tuition fees: Cost from INR 2.9 lakhs for classes 3 to 10 and 3.10 lakhs for classes 10 and 12.  Address:Vidya Niketan Birla PublicSchool, Pilani-333031Rajasthan-IndiaEmail: principal@bpspilani.edu.inPhone: (01596) 242132Website: www.bpspilani.edu.in Expensive Schools in Ahmedabad Read More 7. Good Shepherd International School, Ooty Good Shepherd International School in Ooty is a full-time residential School established in 1977 in Nilgiris, Tamil Nadu, India. It is a reputed school for its educational practices and has a top rank in the education world in India school ranking.  Malvika Vashishtha, Krishna Kishore, Mako Ravindran, and Sumesg Lekhi are notable alumni of this school. The tuition fees of this school range from INR 6.10 lakhs to INR 15 lakhs. If you are looking for one of the best schools in India for your child's admission, this can be a great option if you live in Tamil Nadu.  Address: Good Shepherd Knowledge Village, M.Palada Post, Ootacamund – 643 004 Tamil Nadu, India.Email: info@gsis.ac.inPhone: +91 423 2550 371 / 071Website: www.gsis.ac.in Schools in Ooty for Child Education Read More 8. Ecole Mondiale World School, Mumbai Ecole Mondiale World School, Mumbai is a prestigious school located in Mumbai. It is considered one of the most expensive schools in India and Mumbai. The school offers an IB curriculum board, an excellent teacher and student ratio of 6:1, and has had over 2800 university offers for its students.  It was established in 2004 and is among the top 5 IB World Schools in India.  Annual tuition fees: The annual fees for Ecole Mondiale World School is INR 6 to 7 lakhs per annum for KG to 1st-grade students. For 1 to 10th grade, it is INR 9 to 10 lakhs while the 11th and 12th grades is INR 10 to 11 lakhs.   The one-time admission fee is INR 3,00,000.  Address: Gulmohar, Cross Rd Number 9, JVPD Scheme  Juhu, Mumbai, Maharashtra 400049 Phone: 022 2623 7265 Website: https://www.ecolemondiale.org Expensive Schools in Mumbai Read More 9. Stonehill International School, Bangalore  Stonehill International School is an international IB school located in Bangalore and was founded in 2008. The school is truly global and has faculty members hailing from 35 countries. It is internationally accredited and recognized. It is considered one of the most expensive schools in India because of its infrastructure, state-of-the-art building, and adoption of the IB curriculum.   Annual tuition fees: The annual fees are INR 4 lakhs to INR 12 lakhs per annum.   Address: 259 / 333 / 334 / 335 Tarahunise Post, Jala Hobli, Bangalore North 562 157, India Phone: +91 8043418300 Website: https://www.stonehill.in Expensive Schools in Bangalore Read More 10. Bishop Cotton School, Shimla  Bishop Cotton School is located in Shimla. It is one of the oldest boys' boarding schools in India and Asia. The school conducts entrance exams across India as an admission criterion and is listed among the top expensive schools because of its facilities and academic excellence.   Annual Tuition Fees: The annual fee for 1st and 3rd-grade students is INR 6.2 lakhs and for students in 3rd to 12th grade, the annual fee is INR 6.5 lakhs.   Address: Shimla Bypass, Near Khalini, Shimla, Himachal Pradesh 171002, India Phone: (0177) 2620880 Email: secy@bishopcotton.com Website: https://bishopcottonshimla.com/  Choose the right board for child schooling Read More 11. Welham Girls’ School, Dehradun The Welham Girls School was established by Ms. H.S. Oliphant in 1957 in Dehradun. The school has classes from 6 to 12 and is affiliated to the CISCE board. It is a day cum residential institution. Some notable alumni include politician Priyanka Gandhi Vadra, Meira Kumar first lady speaker of the Lok Sabha, actress Kareena Kapoor Khan, etc.  Annual Fees: Rs. 8,50,000 Address: Welham Girls’ School, No 19, Municipal Road, Dalanwala, Dehradun-248001Email: mainschool@welhamgirls.com, wgs_admissions@welhamgirls.comPhone: 0135-2654754, 6670100Website: welhamgirls.com 12. The Lawrence School, Sanawar The Lawrence School is a co-ed boarding school located in Sanawar, (Solan) Himachal Pradesh. The school was established in 1847 and is affiliated to the CBSE board. Ashwajeet Singh, Ajai Thandi, Co-founders of Sleepy Owl Coffee, Captain Abhilasha Barak, the first woman officer to join the Army Aviation Corps as a Combat Aviator, Vipin Sondhi, MD & CEO of Ashok Leyland etc. are some of the notable alumni of this school.  Annual Fees: Rs. 13,00,000 Address: Sanawar, Dist Solan, Himachal Pradesh - 173202Email: office@sanawar.edu.inPhone: +91 1792 261208, 261209Website: sanawar.edu.in 13. Shri Ram School, Delhi & Gurugram Founded in 1988 by Mrs. Manju Bharat Ram, The Shri Ram School has 4 campuses, one in Vasant Vihar, and the other three in Gurgaon at Moulsari, Aravali, and Bhondsi respectively. It is affiliated with the CISCE and IB boards. Alumni include some popular names like actor Sonam Kapoor, Rhea Kapoor, actor-director Karan Johar, Anjali Tendulkar, etc Annual Fees: Rs. 4,00,000 Address: D-3 Street, Vasant Vihar, New Delhi - 110057Email: junior.school@tsrs.orgPhone: 26140884, 26149572Website: tsrs.org Address: V-37, Moulsari Avenue, Phase 3, DLF City, Gurugram Email: senior.school@tsrs.orgPhone: 0124-4784400Website: tsrs.orgHamilton Court ComplexPhase 4, DLF City,Gurugram - 122002Email: senior.aravali@tsrs.org, junior.aravali@tsrs.orgPhone: 0124-4784300 14. Mahindra International School, Pune Established in 1998, this school was originally named Mercedes Benz International School. It is located in Hinjewadi, Pune, and is a co-ed institution affiliated with the IB board. It is a popular school and boasts of a low student-teacher ratio. It is a day cum residential school.  Annual Fees: Rs. 17,00,000 Address: P-26 MIDC Phase 1, Rajeev Gandhi Infotech Park, Hinjawadi, Pune - 411057Email: admissions@misp.orgPhone: +91-2042954444Website: misp.org 15. The Cathedral & John Connon School, Mumbai One of the oldest institutions, this school was established in 1860 by the Anglo-Scottish Education Society in Mumbai. It is a co-ed day school offering national (ICSE, ISC) as well as international (IGCSE, IBDP) curriculum. Actors Kiara Advani, Madira Bedi, Rahul Bose, and Homi J. Bhabha are some of the distinguished alumni of this school.  Annual Fees: Rs. 8,70,000 Address: The Cathedral and John Connon School, 6, Purshottamdas Thakurdas Marg, Fort, Mumbai-400001Email: Not providedPhone: 022-2201282/022-40778140Website: cathedral-school.com https://www.youtube.com/shorts/l8Hyb77tkM8 FAQs Which is the most expensive school in India? Schools like Ecole Mondiale World School, Mumbai, Doon School, and Stonehill International School in Shimla are considered some of the most expensive schools in the country. What is the most luxurious school? Here is a list of the most expensive and luxurious schools in India: The Doon School, Dehradun The Scindia School, Gwalior The Mayo College, Ajmer Welham Boys School, Dehradun Woodstock School, Mussoorie Birla International School, Pilani Good Shepherd International School, Ooty Ecole Mondiale World School, Mumbai Stonehill International School, Bangalore Bishop Cotton School, Shimla What are the fees of an expensive school in India? Expensive schools in India cost anywhere between INR 6 to 10 lakhs per annum. This is only the annual tuition fee and does not include the cost of travel, boarding, uniform, and other school expenses. Most expensive schools in India for your child's education charge annual fees from INR 7 lakhs to INR 15 lakhs. These schools are extremely competitive and in demand with Indians as well as NRIs. They hold separate admission tests, and interview rounds as well as have a donation and referral system to select the best and most meritorious students. If you want to give your child the best opportunities then connect with us to plan your child’s education with ease! 
All About Groww Nifty Small Cap 250 Index Fund

All About Groww Nifty Small Cap 250 Index Fund

In this dynamic and ever-changing environment of mutual fund investments, it can become difficult to evaluate the right fund for you. This week, Groww is launching its Nifty Small Cap 250 Index Fund. Here is a short note as to why it should be on your watchlist: With a ten-year compound annual growth rate (CAGR) of 18.90%, the Nifty Small Cap Index has outperformed the Nifty 50, demonstrating the potential of small-cap stocks to deliver significant returns. The fund offers diversification across industries that are not usually included in the Nifty 50, such as media & publishing, textiles, media, and forest materials. The current valuations of the Nifty Small Cap 250 Index present an attractive proposition, trading at a price-to-earnings (P/E) ratio 19% below its ten-year averages. Furthermore, in comparison to actively managed funds in its category, which has a P/E of 42.62. the small-cap index trades at a P/E OF 25.63 as of January 31, 2024. Groww utilizes its proprietary high-frequency rebalancing technology called 'SPEAR', to closely align the fund with its index, enhancing the potential for returns to closely mirror the benchmark. Additionally, given its characteristics, investing in this fund can serve as a strategic step towards financing long-term education goals, as the potential for higher growth could support savings and investment objectives. In conclusion, this fund is directed towards those investors with a high-risk appetite seeking diversified exposure to small caps in the Indian equity sector.
How to save for child's gadgets?

How to save for child's gadgets?

Wish to save for child's gadgets? Do you want to know how to start? We have an easy solution for it! Electronics have evolved into a vital component of our day-to-day lives. It's crucial to teach your kids how to use technology responsibly in today's digitally driven world and to develop the knowledge and behaviors that will help them succeed as digital citizens. The latest gadgets for youngsters are rarely inexpensive and often appear out of reach. Are you looking for methods to save money on your child's gadgets? This article will assist you in planning your desired gadget without trying to empty your bank account. Follow these simple recommendations to keep your child's new tech costs low. Fun Fact: 27% of parents with children aged between 9 and 13 years reported that their kids had access to access to both desktops and smartphones for the entire day outside of in-person classes at school. Ways to save for child's gadgets 1. Start a SIP  Start a SIP plan to meet your short-term and medium-term goals. SIP allows an investor to invest a certain amount of money in a mutual fund scheme at predetermined intervals. SIP allows you to acquire units on a set date each month in order to create a savings strategy for yourself. EduFund assists parents in budgeting for electronic gadget purchases. It has a separate section dedicated to saving children’s electronic gadgets. The app also shows you different gadget options and provides you with savings plans to start saving for the gadgets on the app.  Electronic device prices have been skyrocketing, and with the Covid-19 outbreak, electronic prices are rising even further. EduFund addresses the financial needs of parents since electronic gadgets have become essential for children’s education in today's society. Start SIP with EduFund 2. Do your research Before actually buying electronic gadgets, it is essential to research. It is a good practice to look around at wide varieties and brands. Examine both offline and online retailers to gain a comprehensive analysis.  If you wait until your old equipment cracks, you'll feel compelled to purchase a brand-new one without looking around or looking for a good deal. When you browse online, you can instantly comprehend the pricing and position yourself for a good deal when it arises. Track the progress of the valuations of the gadgets you want to buy to save money on electronics. https://www.youtube.com/shorts/N6RKPu_zoY8 Source: EduFund 3. Return old gadgets The need for reconditioned technology has increased exponentially in recent years. In addition to global supply chain disruptions, customers have been convinced to buy used technology owing to price considerations, environmental considerations, and the accessibility of lifetime management solutions. While purchasing new gadgets, parents should look to return their old gadgets and concentrate on a buyback offer. They can exchange old products with the purchase of new products. Useful Gadgets for Students Read More 4. Request a price match or a discount Many retailers meet their competitors' electronics market prices on the same product. If you're loyal to a favorite retailer, find out if they can fit the competition's offer. You can also participate in a membership program that will earn you points or discounted rates once you connect.  If the seller fits a competitor's offer, you could use that membership program to get electronics at a cheaper rate. If you can't obtain a comparable object for a reduced price, it Is better to negotiate.  Most traditional retailers might not provide the same benefit; however, they might be more willing to cooperate with you to make a deal and discuss electronic purchases. 5. Warranties aren't worth it Numerous parents fear their child's new phone will end up in a pool of water or, even worse. Purchase extended warranties for their electronic gadgets. Read the fine print to avoid paying extra for something you don't need - or paying large amounts for a product that doesn't even protect against water damage.  A void warranty is a waste of money and certainly cause for concern. Choose a standard complimentary warranty over an extended warranty. Fun Fact: 18% of parents reported that their children had access to a combination of desktops, tablets, and smartphones. Advantages of gadget use Children of all ages can benefit from technology, which offers tools that encourage learning via play, let them express their creativity, and keep them socially linked. For kids under the age of five, it serves as stimulation. It can be applied to speech as well as to encourage learning. The young ones' visual representation may help them develop their senses. The use of technology to play games fosters cognitive development and analytical abilities. This encourages the child to think more creatively, strategically, and generally to be more productive. Tech-savvy children will also be more equipped for a workforce that will be largely digital. A few fundamental parenting principles will assist you in establishing ground rules and preserving technological harmony at home. https://www.youtube.com/watch?v=MJblBYWNxLo Conclusion Students nowadays rely heavily on technology. These devices are critical for children as they are required to boost their learning abilities and knowledge. Nowadays, independent learning is supported since children can study without the aid of teachers. Students use the internet for research and online libraries to complete their homework. As a result, technological devices have become unavoidable in the current world. Invest for their Gadgets here! FAQs Is it good to give gadgets to children? Yes, some gadgets are good for your children. However, you should have a time limit on how long they can use the gadgets in a day. Too much usage can affect your kid's attention span and even strain their eyes. How to save for your kid's gadgets? The best way to save for your child's gadgets is to start a goal and a SIP for it. Rather than buying or taking an EMI, you can start a SIP and save for the amount. You can do all this on the EduFund App. It helps you save for your kid's education expenses like buying a phone or a laptop. How can gadgets help children? Some gadgets are known for helping kids with motor skills, learning languages, and even sharpening their spatial knowledge.
What is the cookie jar method of investing?

What is the cookie jar method of investing?

Earlier we talked about what are the top 10 best investment options in India. In this article, let's look into what is cookie jar method of investing is. There are many rules of investing that help investors make good money. The cookie jar investing method allows you to pour your savings and investments into different areas (called jars) for specific purposes. The technique aims at allocating money purpose-wise for disciplined and continuous investment.   The multiple buckets of investments are earmarked for different purposes. You can consider it to be just like a child saving pennies in jars to buy their favourite toys.  What is the logic behind the cookie jar method of investing?  The Mental Accounting method’s logic is applicable here this enables you to mentally allocate and distribute your savings into different buckets and invest accordingly. This way your expenses can also be managed efficiently as you do not spend for one goal out of the savings you collected for another goal. When you have varied goals in life, you need to prepare for those goals in different ways with special efforts towards achieving those goals. Once these steps are taken, everything gets very simplified.  Once the goals are specified, the next step is to find which investing instruments will be favorable and for which purpose.   This needs careful consideration because the kind of instruments you invest in will determine how much returns will be generated in the future. This separation of funds for investing towards specific purposes is termed bucketing.   Once your investments are aligned with your goals, you will be able to get good returns.  Example to understand the cookie jar method of investing Consider that you have these three goals  First, to buy a costly smartphone this year Second, to buy a car worth 4 lakhs in the next five years  Third, to pay for your child’s education after 15 years Since it is a concise term for your first goal, you can save some cash from your salary and buy the smartphone soon. To buy a car, you need to put the required monthly investment amount into a semi-liquid type of fund, like debt funds or even ETFs with stable returns. This will help you save enough money to buy your car after five years.   Finally, the last goal, funding your child’s education after 15 years, is a mammoth task because it actually is a more costly affair than you first imagine it to be. So you must plan this investment with utmost care and invest early and in instruments that serve this purpose well. How to use the cookie jar method for investing? Similar to how budgeting works, for saving too, you should ideally create jars for separate objectives. For example - Emergency Fund, Wedding Fund, Children's Education Fund, Retirement Fund, etc. 1. Emergency fund It is meant for any unforeseen situation that may arise. The Thumb rule says it is good to have three months of expenses as an emergency fund for your rainy days. This money should be in liquid or fixed deposits and safe from volatility. 2. Retirement fund Plan for your retirement when you start earning. You will thank us later. If you start at 25 and assume you have 35 years ahead of you to work before retiring, a small monthly contribution can help you save big. But if you start late, the monthly contribution for the same amount will be exorbitantly high. Goal10 Cr10 CrTenure35 yrs20 yrsSIP/monthRs 6,750Rs 67,500Returns15%15% Similarly, it would help if you planned for other goals such as a car, house, child's education, child's marriage, holiday, etc. These can become your separate jar and would be dedicated to that specific goal. FAQs What is the cookie jar approach to investing? The cookie jar investing method allows you to pour your savings and investments into different areas (called jars) for specific purposes. How do you use cookie jars? Consider you have a goal of buying a car in the next 5 years. To buy a car, you need to put the required monthly investment amount into a semi-liquid type of fund, like debt funds or even ETFs with stable returns. This will help you save enough money to buy your car after five years.  This approach to investing is called cookie jars when you see each goal differently. What is the logic behind the cookie jar method of investing?  The Mental Accounting method’s logic is applicable here this enables you to mentally allocate and distribute your savings into different buckets and invest accordingly. This way your expenses can also be managed efficiently as you do not spend for one goal out of the savings you collected for another goal. What financial goals can you use the cookie jar investing approach? You can use it for long-term and short-term goals. Whether it's buying a car or financing your child's education, you can have a separate jar and investing approach based on how much you need, when you need it, and your risk profile. Need help planning and saving towards your child's education? Consult an expert advisor to get the right plan TALK TO AN EXPERT
What is there in the Budget for F.Y. 2024-25? 

What is there in the Budget for F.Y. 2024-25? 

The Union Minister of Finance, Nirmala Sitaraman, presented the interim budget for the F.Y. 2024-25 on 1st Feb. 2024. As expected, the budget did not bring any surprising element as it was an interim budget and a full-fledged budget will be presented after the general elections in July 2024. The following are some of the key highlights from the budget speech and The Finance Bill, 2024.  Key Points Vikasit Bharat by 2047.  Infrastructure Spend – Estimated Capex of Rs. 11.11 Lakh Crores in F.Y. 2024-25 – Highest ever Capex with an increase of 11.1% from F.Y. 2023-24.  A one lakh crore rupees corpus is to be established for today's tech-savvy youth, with a fifty-year interest-free loan to boost private sector research and innovation in emerging fields through long-term financing with low-interest rates.  All ASHA, Anganwadi workers and helpers will be covered under the Health Cover under the Ayushman Bharat Scheme.  Government to encourage Cervical Cancer Vaccination for girls (9-14 years).  The deadline for certain tax benefits for startups and sovereign wealth funds/pension funds extended to 31.03.2025 from 31.03.2024.  Proposed changes in TCS on Foreign Remittances:  No TCS if remittance is up to Rs. 7 lakhs, irrespective of the purpose of the remittance (currently, it is only for education or medical expenses).  TCS at 5% of the amount in excess of Rs. 7 lakhs if the remittance exceeds Rs. 7 Lakhs and is for education and medical treatment.  TCS at 20% of the amount in excess of Rs. 7 lakhs if the amount exceeds Rs. 7 Lakhs and is for other than education and medical treatment.  Key Numbers  Particulars Revised Estimates for F.Y. 2023-24 Estimates for F.Y. 2024-25 Total Receipts Excl. Borrowings Rs. 27.56 Lakh Crores Rs. 30.80 Lakh Crores Tax Receipts Rs. 23.24 Lakh Crores Rs. 26.02 Lakh Crores Total Expenditure Rs. 44.09 Lakh Crores Rs. 47.66 Lakh Crores Fiscal Deficit (% of GDP) 5.80% 5.10% Gross Borrowing through Dated Securities  Rs. 14.13 Lakh Crores Net Borrowing through Dated Securities  Rs. 11.75 Lakh Crores  Target to reduce Fiscal Deficit below 4.5% by F.Y. 2026.  There are no changes in taxation with the same tax rates for both direct and indirect taxes, including import duties.  Thanks for reading!  If you have any queries, feel free to write to us at research@edufund.in. 
Margin Money in Education Loans

Margin Money in Education Loans

Ever heard of the term Margin Money in Education Loans? How does it affect the average student? Do all students need to pay margin money? Find out in this article what margin money is, why it is important for students to know of it, and if it’s a compulsory fee or not!  https://www.youtube.com/watch?v=7Y0V6Z0lcJs&t=2s What is Margin Money?  In the context of education loans in India, margin money refers to the portion of the total educational expenses that the borrower (student or their parents/guardians) needs to fund from their own resources. In other words, it is the borrower's contribution toward the overall cost of education, and the remaining amount is covered by the education loan.  The concept of margin money is prevalent in the education loan process to ensure that students and their families have a financial stake in the education expenses. The margin money requirement helps in sharing the financial burden between the borrower and the lender. The margin money percentage can vary depending on the loan amount and the policies of the lending institution.  For example, if the total cost of education is ₹10,00,000 and the margin money requirement is 5%, the borrower would be required to contribute ₹50,000 from their own funds, and the education loan would cover the remaining ₹9,50,000.  It's important for students and their families to be aware of the margin money requirement when applying for education loans, as it influences the amount that needs to be arranged independently to meet the educational expenses. The terms and conditions, including margin money requirements, can vary among different banks and financial institutions offering education loans. The Role of Margin Money in Loan Disbursement  Margin money plays a significant role in the disbursement of education loans in India. Here's how it typically works:   1. Calculation of Total Cost:  Before applying for an education loan, the borrower needs to determine the total cost of the educational program. This includes tuition fees, accommodation, books, and other related expenses.  2. Determination of Margin Money:  The lending institution specifies a margin money percentage that the borrower must contribute from their own funds. For instance, if the margin money requirement is 10%, and the total cost of education is ₹5,00,000, the borrower needs to provide ₹50,000 as margin money.  3. Loan Amount Calculation:  The loan amount is calculated by subtracting the margin money from the total cost of education. Using the example above, if the total cost is ₹5,00,000 and the margin money is ₹50,000, the loan amount would be ₹4,50,000.  4. Disbursement Process:  The education loan is disbursed based on the approved loan amount. The lending institution releases funds directly to the educational institution or provides the borrower with the necessary funds, depending on the terms of the loan.  5. Use of Margin Money:  The margin money contributed by the borrower is typically used to cover initial expenses or as a security deposit, depending on the requirements of the educational institution.  6. Repayment Structure:  The repayment structure of the education loan is based on the disbursed loan amount. The borrower is required to repay the loan amount along with applicable interest over the agreed-upon repayment period.  Understanding and fulfilling the margin money requirement is essential for students and their families when seeking education loans. It ensures a shared financial responsibility and helps in the smooth disbursement and repayment of the loan. The terms and conditions, including the margin money percentage, may vary among different banks and financial institutions  7. Margin Money Calculation Formula  The formula for calculating margin money is straightforward. It is given by:  Margin Money = Total Cost of Education × (Margin Money Percentage/100)   Let's go through an example to illustrate this:  Suppose the total cost of education is ₹3,00,000, and the lending institution requires a margin money contribution of 15%.  Margin Money = ₹3,00,000 × (15/100)  Margin Money = ₹3,00,000 × 0.15  Margin Money = ₹45,000  Margin Money=₹45,000  So, in this example, the margin money required would be ₹45,000. The borrower would need to provide this amount from their own funds, and the education loan would cover the remaining ₹2,55,000 (₹3,00,000 - ₹45,000) based on the margin money percentage and total cost of education.  https://www.youtube.com/watch?v=AbYbP-HKAd8 Margin Money Requirements by Major Banks and NBFCs  When comparing margin money requirements, consider factors such as:  1. Loan Amount vs. Margin Money Percentage:  Evaluate how the margin money percentage influences the loan amount. Different institutions may have varying percentages.  2. Total Cost of Education:  Check if there are any restrictions on the types of expenses considered in the total cost of education.  3. Flexibility and Terms:  Assess the flexibility offered by each institution in terms of margin money payment and any variations based on the course or program.  4. Interest Rates and Repayment Terms:  Consider the overall terms of the education loan, including interest rates and repayment periods, in addition to the margin money requirement.  5. Eligibility Criteria:  Understand any specific eligibility criteria associated with margin money, such as the applicant's income, credit history, or collateral requirements.  To obtain specific and accurate information, reach out to the education loan departments of different financial institutions, and inquire about their current policies and margin money requirements.  Public Sector Banks vs. Private Sector Banks  The margin money policies of public sector banks (PSBs) and private sector banks differ based on their respective approaches, ownership structures, and government regulations. Here's a general comparison:  Public Sector Banks (PSBs) 1. Government Influence:  PSBs often have margin money policies influenced by government guidelines and regulatory frameworks.  Margin money requirements may vary based on the type of educational course and loan amount.  2. Flexible for Social Objectives:  Some PSBs may have more flexibility in margin money requirements for courses that align with national priorities or social objectives.  3. Government-Sponsored Schemes:  PSBs may participate in government-sponsored education loan schemes with reduced or no margin money for economically disadvantaged students.  4. Interest Rate Subsidies:  In some cases, PSBs may offer interest rate subsidies or concessions to certain categories of students, impacting the overall financial burden.  Private Sector Banks  1. Market-Driven Approach:  Private sector banks often adopt a market-driven approach, setting margin money policies based on their assessment of risk and profitability.  2. Varied Margin Requirements:  Margin money requirements in private banks may vary widely based on factors such as the loan amount, course type, and the creditworthiness of the borrower.  3. Focus on Risk Management:  Private banks may emphasize risk management, adjusting margin money requirements to mitigate potential loan default risks.  4. Customer-Centric Solutions:  Some private banks may offer customized margin money solutions, considering the unique circumstances and financial capabilities of individual borrowers.  General Considerations Regulatory Guidelines: Both public and private sector banks must adhere to regulatory guidelines set by authorities, impacting their margin money policies.  Negotiation Possibilities: While public sector banks may have more standardized policies, private sector banks may allow more room for negotiation based on individual cases and creditworthiness.  Loan Amount and Course Type: The margin money requirements often depend on the total loan amount and the type of educational course. Professional courses might have different requirements than undergraduate or postgraduate programs.  It's crucial for students to directly inquire with specific banks, whether public or private, to obtain accurate and up-to-date information on their margin money policies. Policies can vary not only between public and private banks but also among individual banks within each sector.  Zero Margin Money Options  Some banks and NBFCs in India may offer education loans with no margin money requirement or minimal margin. Keep in mind that these policies can vary based on factors like the course, loan amount, and the lender's discretion. Here are a few institutions that, in the past, have been known for flexible margin money requirements:  1. Avanse Financial Services:  Avanse is an NBFC that has been recognized for providing education loans with flexible terms, including competitive interest rates and customized repayment plans.  2. Axis Bank:  Axis Bank has been known to offer education loans with no margin money requirement for certain loan amounts. Their policies, however, may vary, so it's advisable to check with the bank directly.  3. IDBI Bank:  IDBI Bank has, in some cases, provided education loans with no margin money requirement, especially for specific courses or loan amounts. It's recommended to verify this information with the bank.  4. Canara Bank:  Canara Bank has offered education loans with minimal or no margin money requirement for certain categories of loans. Always check with the bank for the latest policies.  5. Bank of Baroda:  Bank of Baroda may offer education loans with a reduced margin or no margin money requirement for certain courses and loan amounts. Verify the current policies directly with the bank.  The Relationship Between Margin Money and Overall Expenses  The amount of margin money in education loans is often influenced by the total expenses of education. Generally, as the total educational expenses increase, the percentage of margin money required may decrease. Lenders may adjust the margin to accommodate higher overall costs, making education financing more accessible for students. However, specific margin money requirements can vary among lenders and institutions, and regulatory guidelines may also play a role in determining the relationship between margin money and total expenses. It's crucial for students to review the policies of individual lenders and educational institutions to understand how margin money is influenced in the context of the total cost of education.  Impact of Lower Overall Expenses on Margin Money  The inverse relationship between overall expenses and margin money lies in the fact that as overall educational expenses increase, the proportion of margin money required decreases. Higher expenses often lead to more substantial loans, and lenders may be willing to lower the margin percentage to accommodate larger loan amounts.  Strategies for Minimizing Margin Money  To minimize margin money, students can explore scholarships, grants, and part-time work opportunities to cover educational expenses. Negotiate with lenders for flexible repayment plans and consider community college or online courses for cost savings. Efficient financial planning can reduce the burden significantly.  FAQs What is margin money in the context of education loans?  Margin money refers to the portion of the total educational expenses that the student is required to fund from their own resources. It is the percentage of the total cost that is not covered by the education loan, and students are expected to contribute this amount.  Why do lenders require margin money for education loans? Lenders require margin money to mitigate risk and encourage financial responsibility. When students contribute their own funds, it reduces the likelihood of default, and it signals to lenders that the student is financially committed to their education. How is the margin money percentage determined? The margin money percentage is often influenced by regulatory guidelines, institution policies, and the total cost of the educational program. It varies among lenders and educational institutions. Always check with the specific lender or educational institution for their policies.  Can the margin money be borrowed from another source or does it have to be from personal savings? Generally, lenders prefer that margin money comes from the student's personal savings or contributions from family. Some lenders may not allow borrowing the margin money from another loan source. It's important to clarify this with the lender.  How does providing margin money benefit students?  Providing margin money benefits students by instilling financial responsibility, reducing the overall loan burden, enhancing creditworthiness, and fostering a sense of ownership and commitment to their education.  TALK TO AN EXPERT
Union Budget 2024 – What to look out for?

Union Budget 2024 – What to look out for?

As the country gears up for General Elections this summer, all eyes are on the upcoming Union Budget scheduled for February 1, 2024, at 11:00 am. This year's budget labelled as 'Interim Budget,' is a short-term financial plan for the outgoing government to manage finances until the new government takes charge. Unlike regular budgets, an Interim Budget doesn't include the presentation of the Economic Survey, a detailed analysis of the country's economic performance. Generally, the outgoing government refrains from making major announcements in an Interim Budget to avoid significant influence on voters before the elections. However, there have been instances where outgoing finance ministers strategically shaped budgetary measures to leave an impact. In 2014, P Chidambaram of UPA II adjusted expenses to the following year to present a better Fiscal Deficit for FY14, facing criticism for reducing capital expenditure without addressing subsidies. Also, In 2019, Piyush Goyal of the NDA government introduced tax relief for small taxpayers and launched the PM-KISAN scheme, providing Rs. 6,000 per annum support to small farmers. What to Expect? As the BJP government is looking to return to power, some of our expectations for this Interim Budget include: Targeting a Fiscal Deficit for FY25 in the range of 5-5.5% of GDP lower by 30-40 bps from the targeted ~5.8% of FY24. Medium term target of 4.5% by FY26. Targeting a nominal GDP growth between 11%-11.5% for FY25, surpassing the ~9% number for FY24 Continued focus on capital expenditure and infrastructure spending Prioritizing the strengthening of the agriculture and manufacturing sectors. Potential adjustments in standard deduction and tax slabs for individuals to help boost disposable income Reducing the arbitrage between equity and debt investments to make debt attractive. Currently, equities are taxed at 10%/15% for Long/Short-term Gains, while income from debt instruments faces slab rate taxation. This leads to a sub-optimal return post-tax. Thereby, the debt market remains under-penetrated. In summary, an Interim Budget is not a major event that significantly impacts investments. However, there remains a slight hope for positive developments after the budget announcement. Watch out this space for our update on February 1, 2024, when the Finance Minister unveils what’s in store for the people of the Republic of India. Note: The opinions presented reflect the beliefs of the author and the team of analysts. They should not be regarded as recommendations. Investing carries inherent market risks, and it is advisable to carefully read the offer documents before making any investment decisions. Invest for your child's education!
Analysing the HDFC Infrastructure Fund 

Analysing the HDFC Infrastructure Fund 

HDFC Asset Management Company Ltd. (HDFC AMC) is one of India's largest mutual fund companies. It is among one of the most profitable asset management companies (AMC) in the country. The company manages assets of over Rs. 5.5 Lakh crores (excluding domestic fund of funds) as of 31st December 2023. Let us talk about the consumer product – HDFC Infrastructure Fund.  About HDFC Infrastructure Fund Investment Objective: The scheme aims to invest predominantly in a diversified portfolio of equity and equity-related securities of companies that are either engaged in or expected to benefit from the growth and development of infrastructure.  Must Read: Top Mutual Funds for your child's education in 2024! Investment Process  The portfolio mainly invests in the following segments:  Asset Financiers – Banks and infrastructure financing companies.  Asset Creators – Engineering and construction companies.  Asset Owners/Developers – Companies that own infrastructure projects.  The scheme may invest up to 20% of the funds in non-infrastructure-related companies. Also, there is no bias related to the market cap of the companies, and the scheme shall invest across all market capitalization.  Portfolio Composition  The fund holds 92.11% equity, 3.06% real estate, and 4.83% in Cash and cash equivalents. The top five sectors hold more than 77% of the equity portfolio.  Note: Data as of 31st December. 2023Source: Value Research                                                          Top 5 Holdings for Infrastructure Fund  Name Sector Weightage % J Kumar Infraprojects Construction 7.11 Coal India Materials 6.21 ICICI Bank Financial 6.20 Larsen & Toubro Construction 5.64 Premier Explosives Capital Goods 5.03 Note: Data as of 31st December. 2023. Source: Value Research  Past Performance  If one had invested Rs. 10,000 at the fund's inception, it would now be valued at Rs. 37,776.  Fund name 1Y 3Y 5Y 10 Y Since Inception HDFC Infrastructure Fund (%) 55.42 38.54 18.86 14.90 8.77 Benchmark Returns (%) 61.08 41.24 22.65 16.09 9.12 Additional Benchmark Returns (%) 21.30 17.24 16.25 14.56 11.34 Note: Data as of 31st December. 2023 and the performance is of regular plan.Benchmark - S&P BSE India Infrastructure Index (TRI), Additional Benchmark - NIFTY 50 (Total Returns Index)  Source: HDFC Mutual Fund  Fund Managers for HDFC Infrastructure Fund  Currently, the HDFC Infrastructure Fund is managed by the following fund managers.  Mr. Srinivasan Ramamurthy is a Fund Manager – Equity and has collectively over 15 years of experience in equity research and fund management.  Mr Dhruv Muchhal is a Senior Equity Analyst and Fund Manager for Overseas Investments  Explore More: HDFC Hybrid Equity Fund Who Should Invest in HDFC Infrastructure Fund?  This product is suitable for investors who are seeking.  To generate long-term capital appreciation/income  Investment predominantly in equity and equity-related securities of companies engaged in or expected to benefit from the growth and development of infrastructure.  Why Invest in this Fund?  As Infrastructure plays a critical role in India’s self-reliance and economic prosperity, receiving significant focus from the government an investor gets an opportunity to invest in India’s infrastructure space through asset developers, asset owners, and asset financiers.   Investors can benefit from the growth and development of infrastructure due to increased budgetary capital spending and favourable policies.  The HDFC Infrastructure Fund has been in existence for the last 15 years. It provides an opportunity to invest in India’s infrastructure. The fund has consistently underperformed its benchmark. However, keeping in mind the government's focus on infrastructure and capex requirements in India for the economy's growth, the sector can show good performance in the upcoming future and can benefit the companies engaged in the sector. Hence, investors need to remain invested long-term to witness capital appreciation and outperformance with an understanding of high risk.  Disclaimer: This is not recommendation advice. All information in this blog is for educational purposes only.  Invest Now
Expenses under Education Loans

Expenses under Education Loans

Education loans to pay for your higher education overseas are common and effective; let's look at all the expenses under education loans to help you make the right choice. What are some expenses under education loans? Do education loans only help with tuition fees? Can education loans cover the cost of flights or help pay the living expenses?   Keep reading to find out the expenses under education loans.    One of the main issues facing the majority of Indian students who want to study abroad is how they would pay for their higher education. An education loan makes sure that all of the financial conditions for the application process for an education loan overseas are satisfied within the allotted time limit.  For the majority of students, the cost of an education loan in India for studying abroad is the main topic of conversation when it comes to financing higher education overseas. The information on this page is relevant to both secured and unsecured education loans in India for international studies.  https://www.youtube.com/watch?v=7Y0V6Z0lcJs&t=1s Costs of a typical course abroad for a student loan  One widespread misconception is that student loans do not fully cover the costs associated with studying abroad. This is untrue, though, as all educational loans, whether secured ones from government banks or unsecured ones from private lenders, cover the following list of costs that are essential to the educational process.  1. Student fees  One of the two main components of both forms of education loans in India for studying abroad is the tuition prices charged by foreign universities. An education loan in India for the international study is intended to assist students in covering their tuition costs. In India, all student loan repayments include tuition. Therefore, when deciding on the overall amount of your student loans, you should give top priority to covering your tuition costs.  2. Housing Costs  The term "factors" can refer to a wide range of things. The main living costs for a student include their rent or room and board, food, and costs for other daily necessities like transportation to and from school, a security deposit for housing, etc.  3. Medical Insurance  International students are frequently required to obtain health insurance by many foreign universities. This specific cost is covered by an education loan in India for studying abroad as it is one of the prerequisites for studying abroad for many students. Therefore, while applying for an education loan, health insurance can also be taken into account.  https://www.youtube.com/watch?v=4gTQkdePOWM 4. Flight Tickets  Another significant price covered by an education loan when applying for one overseas is airline tickets to the location of your choice. When quoting the education loan amount to your bank, this component might also be included.  5. Research Aid  You can include this information in the education loan application if your foreign university's offer letter states that you are responsible for paying for excursions and other extracurricular activities throughout the course of your studies. In addition, when applying for both forms of school loans in India, students can include the price of products like books, computers, and other study supplies in their total expenses.  https://www.youtube.com/watch?v=fufyFB9aMQI What elements must a student take into account when determining costs?  There is no way to change the loan arrangement because the student loan is a one-time transaction. Therefore, a student needs to be aware of the costs they can cover on their own and those for which they might require a loan. The student's financial stability at the time of study is of utmost importance, so the loan amount should be chosen with that in mind.  Before assessing the costs, a student must take the following into account:  The price of housing in a specific country and whether it will be possible to live in shared housing for a lower cost of living.  Food prices in the city where the university is situated.  Additionally, a student's ability to prepare meals on their own can significantly lower the cost of tuition.  Since academics are not just available on-campus, the cost of eating out or intercity travel will be included in the total fee.  Many regions, including the US and Australia, have cheap used car markets and reasonable gas prices. In contrast, students in countries like Ireland receive discounts on public transportation. All of this requires preliminary research.  In the city where the university is situated, there are opportunities for part-time employment. There are enticing part-time occupations with regulated minimum earnings in several nations. This assists students in paying for a sizable portion of their living costs.  Consult an expert advisor to get the right plan TALK TO AN EXPERT
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