EduFund Blogs

Mutual funds are one of the most preferred avenues for multiplying investments over the years. Hence it is important to track the performance of mutual funds for that you must understand the necessary risk elements associated with it. Mutual fund houses release the performance sheet of the funds every month. Investors should track performance by multiplying the fund units with the current NAV and adding the received dividends. Comparing this amount with initial projections helps to identify whether the ongoing mutual fund is in alignment with the set financial goals or not.  Investing in a mutual fund scheme is not the end game as it will not ensure the achievement of your investment goals. Investors must track performance and review regularly to determine whether that specific scheme can meet their investment needs adequately. Track the performances of mutual funds Different parameters and tools to track the performance of mutual fund schemes include- 1. Mutual fund ratios Mutual fund ratios like standard deviation, Sharpe ratio, alpha, beta, and concentration ratio are primary tools to assess, analyze, and track the performance of mutual funds. The numerical figures help to identify and compare vital information in simple terms so that the investors can understand the overall scheme. For example, a positive alpha means that the scheme is profitable as it has surpassed the benchmark index. Similarly, a higher Sharpe ratio signifies the potential for higher returns and encourages investors to opt for the scheme. Start Investing in Mutual Funds 2. Fund fact sheet A fund fact sheet is published by the AMC every month to show the growth of the investments. Keeping track of this report card helps investors to know how the money is allotted in different schemes, the size of the investment, and overall fund performance in terms of standard deviation, beta, CAGR, and Sharpe ratio.  The fund fact sheet lists all the schemes in an easy-to-read manner and compares the mutual funds in the same category. Investors can know about the fund’s performance and turnover compared to other schemes.  3. Historical returns One of the simplest ways to track performance is by comparing and checking the historical returns for at least 5 – 15 years. These act as viable scorecards and allow investors to check the returns over a specific period.  Investors must treat historical returns as performance indicators to look for consistency and solid fundamentals in the schemes.  A regular spike in returns shows that it is the right mutual fund for investing and a one-time occurrence acts as a red flag and urges investors to stay away from it.  How to Start Investing in Mutual Funds? Read More 4. Portfolio composition Tracking mutual funds through portfolio composition helps to check the portfolio holdings. It also helps to verify whether the stocks included in the portfolio can generate higher returns and comply with the risk profile that the investor had foreseen at the time of investing.  Portfolio composition is used to understand whether the scheme is made of quality assets and whether it can handle short-term market volatility.  https://www.youtube.com/watch?v=uYlrsx9_yog&pp=ygUHZWR1ZnVuZA%3D%3D 5. Expense ratio The expense ratio is the overall expenses incurred in the mutual fund schemes charged to the investor. It minimizes the NAV and thus has a direct impact on the returns.  A lower expense ratio means higher returns because of minimum commission or intermediary fees. Using this tracker helps to choose the funds that will give the highest possible returns.  5. Peer factor One of the simplest ways to track the performance of your mutual fund is by comparing it against peer performance.  Investors must compare the scheme in the same category to get accurate results, for example, compare a blue-chip fund like Axis Blue Chip Fund with SBI Blue Chip Fund to know which one is showing better results.   6. Benchmark performance Keep track of the investment by comparing it with the benchmark performance. Investors can know whether the fund is showing a good performance by outperforming the benchmark index or if it is a below-par investment. A higher benchmark index means lower returns and vice-versa. When a mutual fund generates more returns than the benchmark index then it is the right fund for investing.  7. Risk-adjusted returns Track performance by comparing two funds with similar returns. The risk-adjusted returns help to identify and choose the fund with less risk option. Investors should be aware that funds with low risk than the benchmark will yield low returns and more risk will generate higher returns.  8. Rolling returns Checking the average of rolling returns helps to maintain the consistency of the mutual funds. It tracks the fund’s behavior in terms of volatility, loss proportion, and outperformance.  When the rolling returns are higher than the benchmark, it means that the investment will yield better results.  9. Online portfolio trackers Online portfolio trackers help to track and monitor mutual fund investments in a hassle-free way. The online platforms provide an updated value of all the investor’s funds.  A perfect example is EduFund’s scientific fund tracker which helps to track and monitor more than one lakh data points and 400+ financial situations. The RIA-registered app uses 128-SSL security for tracking transactions in a safe environment.  Advantages of tracking the performance of mutual funds Both new and seasoned investors should track the performance of mutual fund schemes for the following reasons- The mutual fund industry assures good returns but every scheme will not give high returns. Tracking performance and comparing the different schemes help to identify and choose the best scheme with consistent returns. Tracking performance regularly helps to stay in the loop and determine whether the funds are giving the expected returns. Investors can either add more units, stay invested, or switch to profitable funds based on the performance of the fund. Understanding key investment Metrics for Mutual Funds When considering mutual funds for your child's education, it's important to assess various metrics that provide insights into the fund's performance, risk, and suitability. Here are key factors to consider:  1. Alpha: Alpha measures a fund's performance relative to its benchmark after accounting for market risk. A positive alpha indicates the fund has outperformed the benchmark, potentially adding value to your investment.  2. Beta: Beta quantifies a fund's sensitivity to market movements. A beta of 1 suggests the fund moves in line with the market, while a beta greater than 1 indicates higher volatility and less than 1 suggests lower volatility.  3. Expense Ratio: The expense ratio represents the annual fee charged by the fund to manage your investment. Lower expense ratios are generally preferable as they impact your returns over time.  4. Do a Comparison of Similar Funds: Comparing similar funds helps you identify top performers within the same category. Analyze factors such as historical returns, risk measures, and fund manager track records.  5. Rolling Returns: Rolling returns provide insights into a fund's consistency over different time periods. Look for funds with consistently positive rolling returns, indicating sustained performance.  6. Sharpe Ratio: The Sharpe ratio assesses a fund's risk-adjusted returns. Higher Sharpe ratios imply better returns for the level of risk taken. Consider funds with higher Sharpe ratios within their category.  7. Consider Market and Economic Cycles: Understand that markets and economies go through cycles. Choose funds that have shown resilience across different cycles. Funds that perform well in various market conditions might provide better stability for long-term goals.  8. Risk Tolerance: Evaluate your risk tolerance. For long-term goals like funding education, you might accept a slightly higher risk for potentially higher returns. However, ensure the risk aligns with your comfort level.  9. Investment Horizon: The time until your child's education is a crucial factor. Longer horizons can accommodate more volatility, allowing for potential recovery from market downturns.  10. Diversification: Consider funds that offer diversification across sectors and asset classes. Diversification can help mitigate risk and enhance the potential for stable returns.  11. Past Performance vs. Future Outlook: While past performance provides insights, remember that it's not a guarantee of future success. Analyze a fund's strategy, manager's approach, and economic trends.  12. Professional Advice: Consult a financial advisor who can assess your financial situation, goals, and risk appetite. They can recommend suitable funds and help tailor a portfolio to your child's education needs.  Incorporating metrics into investment decisions When selecting mutual funds for your child's education, utilize these metrics collectively. Prioritize funds with favorable alphas, lower expense ratios, and consistent rolling returns. Balance risk and reward by considering beta and Sharpe ratios. Conduct thorough research perform due diligence, and consult a financial advisor to make informed decisions that align with your child's education goals. Remember that investments carry inherent risks, and diversification is essential for managing these risks effectively.  Conclusion Investors can use the above-mentioned tools to track the performance of their mutual fund schemes. Due diligence helps to measure the profitability of the fund, conduct informed decisions, and keep hard-earned money safe. TALK TO AN EXPERT

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.

Investment is extremely important for your child’s future. But deciding the best investment tool is tough. Let’s look at Recurring deposits (RD) vs Mutual Funds to find out which tool can safeguard the future financial needs of your child.  Both Recurring deposits and Mutual Funds have their pros and cons. Let’s understand both of them in detail. What are Recurring deposits? Recurring deposits are a monthly financial commitment that provides customers with the flexibility to invest a specific amount. It follows a proper flow of saving money with ease. This facility is provided by most of the banks and NBFCs in India whose period can range somewhere between 6 months to 10 years. Key features of recurring deposits The schemes offering recurring deposits aim to habituate people to a regular saving pattern. The amount that can be saved depends from one bank to the other and it can be as small as rs 10. The minimum period for which you can avail of the scheme is 6 months and the maximum goes up to 10 years. The interest rate will the same as that of fixed deposits offered in the same bank. Interest rates vary from 5.8% to 7.8%. It provides an additional benefit of taking a loan against the deposit which acts as collateral. You can open an RD with your bank but remember that all RDs offer a fixed interest rate and are free of risk! Start Saving with EduFund What are Mutual funds?  Mutual Fund is a popular form of investment that acts as a financial tool that collects assets from different shareholders to invest in securities like bonds, debt, equity, stocks, and so on.   Each fund has a fund manager who looks after the performance, manages the risk, and allocates the fund’s assets.   Mutual funds are great for investors who cannot actively follow market performance and manage their investments on a daily basis. The fund manager acts as a custodian of your investments and takes calculated risks to provide maximum benefits! Key features of mutual funds Mutual funds manage a portfolio that contains stocks, bonds, and other types of securities. Mutual funds invest in different markets, industries, and companies. They offer market exposure to new investors who can reap the benefits of various professionally managed portfolios at a very low cost. There are different types of mutual funds such as equity, debt, hybrid, and gift funds. Mutual funds charge annual fees and a commission for managing the portfolio which might affect your overall returns. Debt funds are relatively safer than equity funds or hybrid funds. Invest in Mutual Funds Difference between recurring deposits and mutual funds  Frequency of Investment: Recurring Deposits require the investor to be regular and pay at fixed intervals of time whereas mutual funds involve frequencies like weekly, monthly, quarterly, and so on.  Returns: The returns in recurring deposits are based on the interest rate provided by the bank. In the case of mutual funds, the returns are variable and depend on the scheme which is opted by the investor.  Investment Schemes: There exists no schemes or options in the case of recurring deposits whereas there are various schemes available if you go for mutual funds.  Market Linked: Recurring deposits offer fixed interests at regular intervals of time because they are not affected by market performance. In the case of mutual funds, lumpsum, and SIP are subject to market risks. Hence, the returns are not guaranteed or fixed. How can these financial commitments be useful for your child? If your child is young and you have a low-risk appetite, then recurring deposits can be safe play for you. You can deposit a specific amount every month in his or her name which can be helpful for their higher education. It has no risk which assures that you will receive a good corpus at the end of your savings tenure. On the contrary, mutual funds are very effective if you consider the increasing rate of inflation in the domain of education. Equity is also a good option that you can go for. However, it is advised that you start these schemes well in advance so that you can counter volatility or crashes that may arise. Talk to an Expert FAQs Are mutual funds good for child education?  Yes, mutual funds can be a suitable investment option for funding a child's education due to their potential for growth over time. However, it's important to choose funds based on your risk tolerance and investment horizon.   Which mutual fund is best for child education?  To find out the best mutual funds for your child's education savings, you need to visit EduFund. You can find class-wise mutual funds for your child's future savings. For instance, if your child is in 1st grade then there are plenty of mutual funds selected by our experts that you can invest in for their college! What is the best way to invest in a child's education?  Investing in a mix of diversified mutual funds, specifically those with a long-term growth focus, can be a strong approach to funding a child's education. Regular contributions through SIPs, starting early, and adjusting risk as the child grows older are key considerations. Consulting a financial advisor is recommended.  

The Indian government offers tax benefits on child education fees to encourage a higher literacy rate and child education in India. The tuition fees paid by a parent for their children are excluded from income tax and are subject to various benefits that you can avail of. Parents can enjoy tax benefits on their child’s education fees and additional deductions that are permitted for the same under section 80C of the Income Tax Act. Deduction for tuition payments received under section 80C The tuition fees paid to a university, college, school, or other educational institution may be claimed by parents. Transport and development fees, among other fee components, are not deductible under Section 80C. Together with the deduction for insurance, provident fund, pension, etc., the maximum deduction for payments made toward tuition fees can be recorded for up to Rs 1.5 lakh in a fiscal year. Eligibility of tuition fees for Section 80C deductions People who pay any amount or fees for their children's education may be eligible for a tax deduction under Section 80C if they meet the requirements listed below: Only an individual parent, guardian, or sponsor is qualified for this deduction. A limit of 2 children per person is eligible for the deduction. Therefore, a maximum of 4 children's deductions, or 2 for each parent, may be claimed. Every financial year, each parent may deduct up to Rs. 1.50 lakh individually. Please be aware that the parent's total deductions under Sections 80C, 80CCC, and 80CCD cannot exceed INR 1,50,000. Regardless of the class the child attends, a deduction is possible. Even if it is partnered with a foreign university, the institution, college, or university must be located in India. Only full-time education programs that have a nursery school, creche, or play school are eligible for the deduction. As an illustration, the amount that the parent pays in April 2021 for the quarter ending in March 2021 will be eligible for a deduction in the fiscal years 2021–22. A parent who is divorced or unmarried may also claim tax benefits. School costs for an adopted child are also deductible. Non-eligibility of payments toward tuition fees Payments made for development fees, charitable contributions, private coaching centers, or other expenses like mess fees, library fines, or similar payments are not eligible for the deduction. Paid tuition for part-time courses is not eligible for the deduction. The deduction cannot be used to pay for the education of yourself, your spouse, your brother or sister, your mother or father, or any other relative. This deduction does not apply to tuition fees paid to foreign universities that are located outside of India. Additional School Fees Parents Must Save For Read More Exemption for hostel and education expenses for children Employees in India are given the following exemptions*: Children's Education Allowance: Up to two children are eligible for a monthly allowance of ₹100 each. Allowance for Hostel Expenditure: ₹300 per month for each child, up to a maximum of 2. (*Only in cases when expenses are made in India following Section 10(14) of the Income Tax Act.) The Income Tax Act of many countries offers exemptions for certain expenses related to children's education and hostel expenditures. These exemptions aim to alleviate the financial burden on parents while promoting education. Taxpayers can often claim deductions for tuition fees paid for up to two children, and in some cases, for hostel expenses as well. Specific limits and eligibility criteria vary by jurisdiction. It's crucial to understand local tax laws, keep proper documentation, and consult tax professionals to ensure you're accurately availing of these exemptions within legal boundaries.  Deduction on Tuition Fees under Section 80C  Section 80C of the Income Tax Act in many countries provides taxpayers with the opportunity to claim deductions on specified investments and expenses, including tuition fees. While section 80C is commonly associated with investments like Provident Fund contributions and life insurance premiums, it also includes deductions for tuition fees paid for the education of children.  Taxpayers can claim deductions for tuition fees paid to educational institutions for up to two children. The deduction is available for full-time education, including any fees paid for play school, primary school, secondary school, and higher education courses. However, the deduction does not extend to coaching classes, development fees, donations, or other similar expenses. It's important to note that the tuition fee deduction under section 80C is part of an overall limit, which can vary by jurisdiction. Taxpayers need to be mindful of this limit and any other deductions they claim under section 80C. To avail of this deduction, individuals should ensure that they have proper receipts or evidence of payment from the educational institution. This documentation is crucial in case of any scrutiny by tax authorities. While claiming deductions can help reduce taxable income and the overall tax liability, it's recommended to thoroughly understand the provisions of section 80C and other relevant tax laws. Consulting a tax professional or financial advisor can provide guidance tailored to individual circumstances and ensure compliance with legal requirements.  https://www.youtube.com/watch?v=q_aEt61HEuk Eligibility for Tuition Fee Deduction under Section 80C:  To be eligible for the tuition fee deduction under Section 80C, taxpayers must fulfill certain criteria:  Parent-Child Relationship: The deduction is applicable to individual taxpayers who are parents or legal guardians of the child for whom the tuition fees are being paid.  Full-Time Education: The deduction is available for tuition fees paid for the full-time education of up to two children. This includes expenses for education from play school to higher education courses.  Recognized Institutions: The tuition fees must be paid to a recognized educational institution, whether in India or abroad. This typically includes schools, colleges, universities, and educational boards.  Restricted to Tuition Fees: The deduction is specifically for tuition fees and does not cover other expenses such as development fees, transport charges, or hostel fees.  Total Deduction Limit: The tuition fee deduction falls within the overall limit of deductions allowed under section 80C, which can vary by jurisdiction.  Taxpayers should ensure that they retain proper documentation such as fee receipts, admission letters, and any other relevant proof of payment. This documentation is essential in case of any tax assessment or audit. Before claiming the deduction, it's advisable to understand the provisions of section 80C and consult a tax professional or financial advisor to ensure accurate compliance with tax regulations.  Non-eligibility for Tuition Fees Deduction under Section 80C:  While Section 80C offers a deduction for tuition fees, there are certain situations where taxpayers might not be eligible to claim this benefit:  Not a Parent or Legal Guardian: Taxpayers who are not parents or legal guardians of the student for whom the tuition fees are being paid cannot claim this deduction.  Other Expenses: The deduction is specifically meant for tuition fees and does not cover expenses like development fees, transport charges, or hostel fees.  Not Recognized Institutions: If the tuition fees are paid to an institution that is not recognized as an educational institution by relevant authorities, the deduction may not be applicable.  Part-Time Education: The deduction is applicable only for full-time education. Part-time courses or self-study programs are generally not covered.  Exceeding Limit: The tuition fee deduction is part of the overall limit of deductions under section 80C. If the total of all deductions under this section exceeds the prescribed limit, the taxpayer may not be able to claim the full deduction.  It's essential to thoroughly understand the eligibility criteria and limitations of section 80C before claiming any deductions. Consulting a tax professional or financial advisor can provide accurate guidance based on individual circumstances and help ensure proper compliance with tax laws.  How to claim tax exemption for Children’s education allowance and tuition fee deductions?  To claim tax exemptions for Children’s Education Allowance and tuition fee deductions, follow these steps:  Collect Documentation: Gather receipts, fee payment proofs, and any necessary documents from the educational institution for both allowances and tuition fee payments.  Calculate Eligibility: Determine the eligible amount for Children’s Education Allowance and tuition fee deductions based on the relevant tax laws and your expenses.  Fill in the Income Tax Return (ITR): While filing your ITR, look for sections related to these deductions. In some jurisdictions, Children’s Education Allowance might be under "Other Allowances" and tuition fee deductions under "Deductions."  Enter Details: Provide accurate details of the expenses, allowances, and deductions as required in the ITR form. Double-check the information to ensure accuracy.  Attach Documents: Attach supporting documents like fee receipts and proofs along with your ITR filing. Many jurisdictions allow for electronic submission of documents.  Review and Submit: Review your ITR form to make sure all information is correct. Submit the ITR with the attached documents through the designated online portal or via your tax consultant.  Keep Records: Maintain copies of all submitted documents and ITR for future reference in case of any audit or inquiries.  Remember, tax laws and procedures can vary by jurisdiction. It's advisable to consult a tax professional or refer to the official tax authority website for specific guidelines and regulations relevant to your region.  How to claim the tax benefits on your child’s education fees? Parents can submit the school's receipt for the fee paid throughout the fiscal year to their employer. Before filing the investment proofs at the close of the financial year, parents must additionally demonstrate it in form 12BB. You must prove the number of fees paid under section 80C on the income tax return to claim the deduction for a person who is not a salaried employee under the VI-A schedule. The children's education allowance, which is a part of the wage structure, and the fees paid for the children's tuition are both separate deductions, it is vital to note this. As a result, these may be claimed individually up to the permitted maximum (given above) by the rules of the Indian Income Tax Act, 1961. You should utilize these tax benefits to reduce the cost of your children's education and lower your overall tax burden. By taking advantage of these exemptions, you can lower your tax liability and use the money you save to invest further and create a fund for your children's higher education. Therefore, as a way of increasing literacy rate and awareness, the Indian government has provided an opportunity for everyone to educate our children by exempting parents from paying taxes when it comes to our children’s tuition fees, but of course, it has its limitations. This is an attempt at national development and for us to reach new successes and explore what we can do with education. FAQs Can an unmarried person claim a deduction u/s 80C of the Income Tax Act, 1961 for school fees paid for 2 children? Yes, taxpayers can enjoy tax benefits on their child’s education fees and additional deductions that are permitted for the same under section 80C of the Income Tax Act. Is school fees eligible for an 80C deduction? Yes, school fees are eligible for tax benefits under Section 80C deduction. The amount of tax benefit is within the overall limit of the section of Rs 1.5 lakh a year. Can we get tax exemption on school fees? Yes, school fees are eligible for tax exemption under Section 80C deduction. The amount of tax benefit is within the overall limit of the section of Rs 1.5 lakh a year. How much I can claim for tuition fees? The amount of tax benefit is within the overall limit of the section of Rs 1.5 lakh a year. How do I fill my tuition fee in ITR? Salaried employees need Form 12BB to claim tax deductions for tuition expenses along with the necessary documents in support of the declaration. Self-employed or non-salaried professionals can claim tax benefits under Section 6 of the Income Tax Return (ITR) form. Can I claim a deduction u/s 80C of the Income Tax Act, 1961 for my adopted child’s school fees? Yes, it is possible to claim a deduction for adopted kids as well under Section 80c of the Income Tax Act. Can I claim a deduction under section 80C for tuition fees paid to an Indian institution for my wife’s education? No, you cannot claim a school fees deduction for your spouse under section 80c of the Income Tax Act. I and my wife both paid for the education of our one child. My wife paid 70,000 and I paid 1,10,000/- can we both claim a deduction? Yes, both parents can claim a deduction on your income tax return for the amount you paid. I am a working woman and I am paying the education fees for my husband's education. Can I claim the deduction for this? No, it is not possible to claim a deduction for your husband's education fees under section 80c.

Many young adults’ first experience with financial management is in college. Parents must understand the value of this information, but some struggle to convey it to their children, and the majority of universities do not provide courses in this area. You can teach your children money management skills that they will need throughout their lives, and the money management habits they form in college are likely to stick with them for the rest of their lives. As parents, the lessons you teach about money management will give them the confidence to manage their finances in the future, save money, and stay out of debt by putting good money management skills into practice. Your children will be better prepared for the tension-free financial future they deserve if they learn how to manage money early. Long-term money management strategies As college students, they are always short on time as well as money and that is precisely why it is the right time to start building their financial habits. Some long-term strategies you can teach your child are- 1. Teach them how to budget Creating a budget is extremely important and it is something you should teach your child before sending them off to college. Recognizing the line between wants and needs is the key to budgeting. Make sure they fully portray their spending patterns by having them list their expected monthly costs for things like books, school supplies, laundry, eating outside, meal plans, and personal care products. Don't forget to include recreational activities. They will be on the right path to the future with better money management by establishing these limitations in advance. 2. Emergency savings fund Starting an emergency savings fund is essential for anyone's long-term financial stability, whether they are students or not. An emergency fund acts as a safety net that one can rely on for those "rainy days" when they find themselves in a financial crisis. They will be able to recover thanks to their emergency money. It is up to them how much money they save each month. No matter how tiny the amount may appear at first, they must save something each month. 3. Finding cheap housing Housing is a significant and inevitable expense in college. If you are preparing your child to manage their funds and create a budget on their own, encourage them to explore the options available on campus. The most affordable option to have the entire college experience is to live on campus. When it comes to housing, living with roommates is also a great way to save money. Your child needs to interact with the students around them who are also looking for a place to live. Who knows, maybe they'll find some of their closest friends! Money Management Tips for HomeMakers Read More Try to Save Money as Much as Possible Saving money isn't just a financial practice; it's a mindset that sets the tone for responsible adulthood. Even as a young adult, adopting a disciplined saving approach can yield substantial benefits over time. Here's how you can lay the groundwork for a successful savings journey:  Set Clear Goals: The foundation of effective saving is setting specific goals. Whether it's building an emergency fund, planning for a dream vacation, or saving for a down payment on a house, having well-defined objectives provides direction and motivation.  Automate Savings: Capitalize on automation by setting up automatic transfers from your checking account to your dedicated savings account. Treating saving as a non-negotiable expense encourages consistency.  Start Small, Think Big: It's not the initial amount but the consistency that matters. Even if you can only save a small percentage of your income initially, remember that small contributions compound over time to create substantial savings.  Embrace the 50-30-20 Rule: Divide your income into three categories: necessities (50%), discretionary spending (30%), and savings and debt repayment (20%). This balanced approach fosters responsible spending while prioritizing saving.  Build an emergency fund with enough money in it to cover three to six months' worth of expenses. This cushion safeguards you against unexpected financial shocks.  Start Investing in Mutual Funds Keep Track of Your Debts Effectively managing your debts is a pivotal aspect of financial stability. Proactively addressing your debt situation during your early adult years can avert future financial turmoil. Here's how you can navigate the complex terrain of debt management:  Catalog Your Debts: Start by creating a comprehensive list of all your debts, ranging from student loans and credit card balances to any outstanding loans. Note down interest rates and minimum payment requirements for each.  Prioritize High-Interest Debts: Tackle high-interest debts with unwavering focus. By paying off these obligations first, you're effectively minimizing the total interest you'll end up paying overtime.  Punctual Payments: Ensure that you meet at least the minimum payment requirement for each debt on time. Timely payments not only prevent late fees but also bolster your credit score.  Prudent Borrowing: Exercise discretion when considering new debt. Only borrow when it's necessary and within your means. Keep in mind that every debt you take on affects your future financial commitments.  Start Investing in US Market Stop Spending on Unnecessary Things Disciplining your spending habits is pivotal for maintaining financial equilibrium. Developing the ability to differentiate between essential needs and superfluous desires is a hallmark of fiscal prudence:  Create a Budget: Formulate a comprehensive budget that outlines your monthly income and expenditures. This provides clarity regarding your financial standing and empowers you to allocate funds judiciously.  Practice Delayed Gratification: Cultivate the habit of delaying purchases. This approach offers a cooling-off period that helps you evaluate whether a purchase is truly essential or merely impulsive.  Prioritize Quality Over Quantity: When making purchases, quality gives precedence. Investing in a few high-quality items that endure over time is more cost-effective than buying numerous lower-quality products.  Opt for Cash or Debit: Minimize reliance on credit cards. Opting for cash or debit cards makes you more mindful of your spending and curbs the tendency to overspend.  Guard Against Lifestyle Inflation: As your income increases, resist the urge to immediately inflate your lifestyle. Instead, continue living within or below your means, allowing you to save and invest more substantially.  https://www.youtube.com/shorts/jjXF-KC9iWI How to earn while in college? Your child will be able to cover their costs while in college and gain valuable work experience that will benefit them in the long run. They will be able to avoid future debt by making some income themselves. Students have a lot of work opportunities at universities. Your child should find out about working at the school bookstore or as a (resident assistant) RA. College students may also be eligible for additional employee benefits from several nearby businesses. Ask them to think about applying for summer jobs if work becomes a burden while studying. 1. Daily money-saving strategies You can teach your child a variety of money management techniques to help them become more frugal while they are in college. Here are a few daily financial management techniques. 2. Meal plans Ask about the college's meal plans. Teach your child to make the most of what they have by using it to the fullest. They should buy snacks they could use the next day if they have any spare cash left. 3. Student discounts A student ID card has a lot more uses than just serving as identification, including various ways your child can use it to save money. You should advise them to call ahead the next time they want to go watch a movie, get school supplies, or go for a haircut to see if the business provides any student discounts for nearby college students. They will have access to all campus facilities, including the gym, pool, library, etc., with their student ID card. 4. Cooking at home Teach them how to cook and how to utilize ingredients. Cooking their own food will help them save a lot of money that they’d be spending if they ordered or went out for meals. These are great skills they will value for life. They can also make cooking a fun activity by inviting their friends over and trying out new recipes. 5. Public transportation If your child does not live close to their college, they should take public transportation instead of driving there. They will be able to save money and avoid the stress of crowded school parking lots thanks to public transport. They will also save on the cost of car insurance, gas, and university parking passes. FAQs How do I teach my child to manage money? Start with simple concepts like saving, spending, and giving. Use clear jars for each purpose. Set an allowance, encouraging saving for goals. Involve them in budgeting decisions. Teach about needs vs. wants. As they grow, introduce bank accounts, investments, and wise spending. Be a role model for responsible money habits. What are the best money management tips? Create a budget, track spending, and prioritize saving. Pay off high-interest debt. Build an emergency fund. Invest for long-term goals. Live below your means. Avoid impulse buying. Comparison shop and look for deals. Continuously educate yourself about personal finance. Regularly review and adjust your financial plan. How do I teach my 4-year-old about money? Introduce coins and their values through play. Use a clear jar to show savings. Associate coins with small rewards. Teach basic needs vs. wants. Keep conversations simple and age-appropriate. Use stories or games to explain money concepts. Be patient, reinforce lessons, and set a positive example of smart money choices. How can a 10-year-old save money? A 10-year-old can start by setting a savings goal, like buying a toy or game. Help them create a simple budget and allocate a portion of their allowance or gifts to savings. Use a piggy bank or a savings jar to visually track progress. Encourage patience and celebrate milestones together. Conclusion The main conclusion is that although college is expensive, there are ways to lessen the financial pressure. Early financial management in college will help your child set themselves up for success in the future. Money management will make it easier for them as well as you while they’re studying in college. If they have the basic knowledge of how to handle their finances before going to college, they will be able to do it stress-free and be able to learn better with time. TALK TO AN EXPERT

All investments are associated with risks. Yet, the risk is not uniform, and it's essential to be aware of the different levels of risks linked with all types of investment instruments. This is why the first thing to consider before investing is how much of a risk appetite has – how much risk one is willing to take. Want to know the best investment options for risk-averse investors but still generate good returns? Continue reading this article to know more! What is risk averse? Risk-averse refers to an investor who chooses to preserve the capital over and above its potential to generate returns that are higher than the average. Risk can refer to many factors – volatility, currency, market, credit rating, etc. Risk-averse can also refer to a conservative investor. Low risk symbolizes stability in investments. A low-risk investment generates guaranteed reasonable returns, if not outstanding, above benchmark returns. But chances are near zero that the principal investment amount will be lost. Whereas a high-risk investment option may gain or lose money over time. Risk-averse investors are unwilling to accept market volatility. They prefer their investments to be highly liquid - readily available to be withdrawn. Such investors usually include old investors or retired individuals who depend on their savings for their daily expenses. Start Investing in Mutual Funds Is FD a good option for risk-averse investors? One should constantly adjust their returns against the current inflation rate. The current Fixed Deposit interest rates are 5-7% p.a. on average. But the current inflation rates are around 6-8% p.a. Give these figures a thought. The price you pay for your everyday goods and services is rising at 6-8%, whereas your FD investments are growing at only 5-7%. FDs do not increase the value of your money over time. In fact, you actually lose money or its purchasing power over time. Do you think FDs are the safest investment option? Banks defaulting on payments is rare but definitely possible. The Deposit Insurance and Credit Guarantee Corporation (DICGC) guarantees Rs. 5 lakhs per person per bank if the bank defaults. Let's not forget the liquidity part of this instrument. Fixed deposits can have a lock-in ranging from 3-5 years. Banks penalize the investors for withdrawing money before the lock-in is over. This penalty is in the form of a reduction of interest rate by a certain percentage. Download App and Start Saving for Child Education What are the best investment options for risk-averse investors? The market is filled with many investment options for investors with varying risk appetites. Let's look at some of the best investment options for risk-averse investors: 1. Short-term bond fund The best alternative for investors who do not want exposure to FDs or volatile instruments. Short-term bond funds – bond funds with low maturity and a high potential to offer better returns. Debt Funds with longer maturity are subjected to interest rate risk. But short-term bonds have a lower interest rate risk as their maturity period is much lower. 2. Municipal and Corporate Bonds State and local governments and companies usually raise money by issuing bonds to the public. Bonds offer lower risk than stocks. When a company is winding up, the bondholders are given first preference in the payment and settlement order. 3. Other debt funds Other debt funds include banking and PSU Funds, ultra-short duration funds, Dynamic Bonds, etc. You could always invest a lump sum in these debt-based mutual funds and opt for a Systematic Withdrawal Plan (SWP). This would ensure that along with the returns being generated on your investments, you would also get a monthly income from these investments. This investment option is one of the best options for older people who want a monthly income. 4. Liquid funds Invest in top-rated liquid funds to avoid loss of capital with a higher degree of safety for your primary investment. Also, when the market moves up, your investment performs better and generates higher returns in line with the market. 5. Dividend growth stocks Stocks are not as safe as cash, savings, or other debt-based instruments. But they are safer than options and futures. Dividend-paying stocks are considered safer than high-growth ones as they minimize volatility, if not eliminate it. You don't depend on the value of the stock as you get a dividend as a regular income on your investment. Apart from debt-based investments, you could also apply a staggered investment approach in equity-based mutual funds for a long-time horizon. A periodically rebalanced portfolio helps you minimize your portfolio volatility and ensures efficient capture of up-market and down-market movements even with equity exposure.  Take the help of an Investment Advisor who will guide you through goal-based planning and help you choose the investments that are most suitable to your goals and objectives and your risk appetite. FAQsWhat type of investments do risk-averse investors prefer?  Risk-averse investors typically prefer conservative investments with lower volatility and more predictable returns. These may include government bonds, high-quality corporate bonds, certificates of deposit (CDs), and stable dividend-paying stocks. These options aim to preserve capital while providing modest growth, aligning with the risk tolerance of such investors.   What are 3 high-risk investments?  Three high-risk investments include investing in individual stocks of volatile and speculative companies, trading in cryptocurrencies known for their price volatility, and investing in startups or early-stage ventures that have higher failure rates. These investments offer the potential for significant returns but also carry a substantial risk of loss.   Which investment is the riskiest for investors?  Investing in highly speculative and unproven assets like cryptocurrencies, especially in lesser-known or new coins, can be among the riskiest options for investors. The volatile nature of these assets can lead to substantial financial losses due to sudden price fluctuations and lack of regulation.   Which investment has the highest return without risk?  No investment offers guaranteed high returns without any risk. Investments with potentially higher returns often come with varying degrees of risk. While some low-risk options like government bonds or savings accounts provide stability, they usually offer lower returns. Diversification and a clear understanding of risk are important for any investment strategy.  TALK TO AN EXPERT

Mutual funds have given exceptional performance over the period. Some investors just look for the returns irrespective of the risk and other parameters. So, here we have shortlisted the top-performing best SIP mutual funds with returns as a filter. https://www.youtube.com/watch?v=uYlrsx9_yog What is a SIP? SIP or the Systematic Investment Plan refers to the investment tool associated with various mutual funds. SIP allows investors to invest money periodically for a long period.  Start Investing in Mutual Funds https://www.youtube.com/watch?v=0ETi60GetP8 Ignite Prosperity: Unleash the Power of SIP Mutual Funds S.No.Fund Name3-Yr Annualized Performance1Quant Small Cap Fund Growth Option Direct Plan44.30 %2PGIM India Mid-cap Opportunities Fund Direct Plan-Growth39.28 %3Canara Robeco Small Cap Fund Direct-Growth38.83 %4Bank of India Small Cap Fund Direct-Growth38.82 %5Quant Tax Plan Direct Option Growth Plan36.88 %6Quant Infrastructure Fund Growth Option Direct Plan36.47 %7Quant Mid Cap Fund-Growth Option Direct Plan35.89 %8Kotak Small Cap Fund Direct-Growth35.37 %9Quant Active Fund Growth Option Direct Plan33.28 %10Quant Flexi Cap Fund Direct Plan Growth Option32.25 %Note: Data as of July 25, 2022Source: Morningstar 1. Quant small cap fund direct plan-growth Fund analysis: The fund has delivered an exceptionally good performance. The fund is investing predominantly in small-cap companies. The fund is rated 5-star by Morningstar. The risk grade is high, and the returns grade is high. The fund follows a blended style of investing. The risk is spread across companies with the top 10 holdings consisting of 38.96%. The fund has a high risk (measured by standard deviation) than the category average. ProsConsA top performer in its category. Fund captured the market well when it was rising.Volatility is very high. https://www.youtube.com/watch?v=BIRf2Dm1wB8 2. PGIM India mid-cap opportunities fund direct plan-growth Fund analysis: The fund has outperformed the category and the benchmark with good margins. The fund is investing predominantly in mid-cap companies. The fund is rated 5-star by Morningstar. The risk grade is above average, and the returns grade is high. The fund follows a growth style of investing. The risk is spread across companies with the top 10 holdings consisting of 35.25%. The fund has a high risk (measured by standard deviation) than the category average. ProsConsA top performer in its category. The fund captured the market well when it was rising and falling, better than the category average.The minimum monthly SIP amount is Rs 1000/- thus marginal investors may not be able to take exposure Calculate Investment Using SIP Calculator 3. Canara Robeco small cap fund direct-growth Fund analysis: The fund has outperformed the benchmark over different horizons. The risk grade is average and the returns grade is high. The fund has a well-diversified portfolio invested across market capitalization. The top 10 holdings consist of a total of 22.88%. The fund is rated 5-star by Morningstar. The fund holds a good risk-to-reward ratio. The fund has low risk (measured in standard deviation) than the category average. ProsConsFund captured the market well when it was rising. The fund captured the market well when it was falling.Less exposure to small-cap stocks. 4. Bank of India small cap fund direct growth Fund analysis: The fund is rated 5-star by Morningstar. The risk grade is below average, and the returns grade is high. The fund has a beta of 0.84 indicating that the movement of the fund is less relative to the market movement. The fund follows a growth style of investing. The fund has a low risk (measured by standard deviation) than the category average. ProsConsMy risk grade is below average. Well-diversified portfolio.The fund has a high expense ratio. 5. Quant tax plan direct option growth plan Fund analysis: The fund’s objective is to generate capital appreciation by investing predominantly in a well-diversified portfolio of equity shares with growth potential. The risk grade is high and the return grade is high. The fund has a beta of 0.99 which means that the fund movement is very much relative to the market movement. The fund has a high risk (measured by standard deviation) than the category average. ProsConsWell-diversified portfolio.Tax benefit.Highly volatile. 6. Quant infrastructure fund growth option direct plan Fund analysis: The fund’s objective is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio of infrastructure-focused companies. The risk and return grade of the fund is high. The fund follows a blended style of investing, indicating the fund has both value and growth stocks. The fund has invested majorly in large-cap companies. The fund has outperformed the category average with good margins. ProsConsFund has outperformed the category average over 1-Yr, 3-Yr & 5-Yr trailing returns. Fund has outperformed the category average when the market was falling.Low Assets Under Management. 7. Quant mid-cap fund-growth option direct plan Fund analysis: The fund’s objective is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio of mid-cap companies. The risk grade is below average, and the returns grade is high. The fund has a beta of 0.85 indicating that the movement of the fund is less relative to the market movement. The fund has a concentrated portfolio of 34 stocks, investing in both value & growth stocks. The fund has low risk (measured by standard deviation) than the category average. ProsConsA consistent top performer in its category. The fund captured the market well when it was rising and falling, better than the category average.Concentrated portfolio of 34 stocks. 8. Kotak small cap fund direct growth Fund analysis: The fund has outperformed the category average in terms of trailing returns over different horizons. The risk grade is above average and the returns grade is above average. The fund has a beta of 0.95 indicating that the movement of the fund is quite closely relative to the movement of the market. The fund has a well-diversified portfolio of growth stocks consisting of 72 companies spread over different sectors and market-cap companies. The fund has a high risk (measured in standard deviation) than the category average. ProsConsThe fund has a favorable expense ratio. Fund captured the market well when it was falling.Too much diversification may hamper the returns. 9. Quant active fund growth option direct plan Fund analysis: The fund’s primary objective is to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio of large-cap, mid-cap, and small-cap companies. The risk grade is above average and the returns grade is high. The fund is rated 5-star by Morningstar. The fund has invested 59.45% in large-cap, 28.07% in mid-cap, and 12.48% in small-cap companies. The fund has outperformed the category average over 1-yr, 3-yr & 5-yr trailing returns. ProsConsThe fund has a risk grade of above average, whereas the returns grade is high. Consistent performance over the period.Fund has underperformed the category average over 5-Yr trailing returns. Source: pexels 10. Quant Flexi cap fund direct plan growth option Fund analysis: The fund’s objective is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio of consumption-driven companies. The risk grade is above average high. The fund has outperformed the category average and the benchmark with good margins over the long-term period. The fund has limited holdings of 36 stocks but is well-diversified across sectors. ProsConsAttractive risk-to-reward ratio. The fund captured the market well when it was rising & falling, better than the category average.Exit load of 1.00%, if units redeem within 1 year. Benefits of SIP investments Compounding: SIPs are based on the compounding theory and prove more advantageous at the end of a specific period. The interest rates are calculated and added based on compound interest which brings forth a better investment return than simple interest.  Discipline: SIPs help parents become disciplined and regular investors who are fully involved in their child’s future. Systematic and easy to manage: In this era, where everyone is so busy, SIPs are very easy to handle. Investors are allotted units every month based on the NAV at the time of their SIP. The amount is automatically deducted from the account of the investor. Flexibility: SIP helps to gain control of the finances as it is possible to start or stop a SIP anytime. Higher returns: It helps investors to earn greater returns compared to other investment opportunities like fixed deposits. Small investments: It is possible to start a SIP investment with as low as INR 100 per month, hence anyone willing to invest in their child’s future can do so easily.  Tax benefits: Some SIPs like ELSS funds have tax benefits, hence it is doubly advantageous for investors to invest in such schemes. The abundance of options: Numerous asset management houses offer SIP options to meet even the minimum criteria of an investor. Best deals: The most important benefit of a SIP for regular investors is that they can buy mutual fund units at different prices. The average investment premium is much lower compared to other investments. How to get higher returns from SIP mutual funds? To get higher returns from SIP mutual funds, you need the help of an expert or a financial advisor. They can help you invest right, manage the funds properly and conduct market research to help you maximize your returns. Here is a helpful way to get higher returns from your SIP mutual funds: Research the funds that are performing well for a longer time and shortlist the names which show good potential. It is important to start investing in SIP as early as possible as it will give you a longer window to save more. Create a rough layout financial goal, for example, the time horizon, the amount needed, and your risk profile. Invest in mutual funds that have a diversified portfolio to reduce the risk of losing money all at once. Take the help of experts in the EduFund App to make wiser and safer investment decisions.  Consider the additional expenses and costs associated with the funds like expense ratio (the cost charged by the AMC to manage your funds). Tax-saving benefits are attached to several mutual fund schemes that can help parents to save a considerable amount through tax exemptions. How to start a SIP investment on the EduFund App? Step 1: Download and Sign up with EduFund Go online with SIP investments with EduFund. Download the application and sign up with personal details. The whole signup process takes just 3 seconds.  Step 2: Identify your goals for your child’s future  The application provides a gamut of options for your child’s education. Evaluate the goal. Whether you wish to: Save for school fees Save for higher education in India or overseas Step 3: Calculate the total cost with a FREE calculator After identifying the goals, calculate the total costs of higher education for undergraduate or postgraduate studies. You could calculate basing National or International academic education expectations. Select the specialization and the country you are seeking higher education. Step 4: Get your investment map and invest Soon after filing the details, you will get how much you could get after investing for the respective number of years. You will get a number of SIP suggestions that you could compare with yours. You could increase or decrease the sum to invest monthly as per financials. We provide an overview of your savings transitioning into returns until you get the investment sum. You could go for a lump sum payment if you are an entrepreneur with unstable finances. Place the order as a secured investment through UPI or other methods. You could start with just ₹100 in Edufund SIP investments. Step 5: Track, revisit and reset goals anytime Once you set up a SIP plan, you can edit goals according to the revised economic situation. Edufund captures the sensitivity that comes with finances. Revisit the plan and modify it as per goals and finances. You will get a new investment plan with new goals. Plan your savings accordingly. Factors to Take into Account Before Choosing the Best Mutual Funds for SIP 2023 Investing Systematic Investment Plan (SIP) is a popular way to invest in mutual funds by making regular, fixed investments over time. Selecting the right mutual funds for your SIP investments requires careful consideration of various factors. Here are key points to evaluate before making your investment decisions in 2023:  1. Investment Goals and Horizon: Identify your investment goals—whether it's wealth creation, retirement planning, or funding-specific goals. Determine your investment horizon, as different funds suit short, medium, or long-term goals.  2. Risk Tolerance: Assess your risk tolerance before investing. Different funds carry varying levels of risk. Choose funds aligned with your risk appetite to avoid discomfort during market fluctuations.  3. Fund Performance: Analyze the historical performance of mutual funds. Look for consistent returns over multiple market cycles rather than just short-term outperformance.  4. Fund Category: Understand the different mutual fund categories such as equity, debt, hybrid, and thematic funds. Choose categories that match your risk profile and investment goals.  5. Fund Manager Expertise: The fund manager's experience and track record play a crucial role. Research the manager's history and style to ensure their approach aligns with your investment philosophy.  6. Expense Ratio: Lower expense ratios are preferable as they directly impact your returns. Compare expense ratios among similar funds to choose cost-efficient options.  7. Fund Assets and AUM: A fund's size can influence its performance and liquidity. While larger funds might offer stability, smaller ones can be more agile in taking advantage of market opportunities.  8. Consistency of Returns: Look for funds that consistently deliver steady returns over time, even if they are not the highest performers in the short term.  9. Portfolio Holdings: Examine the fund's portfolio holdings to understand its asset allocation, sector exposure, and quality of securities. Diversification is key to managing risk.  10. SIP Period and Amount: Determine the SIP period and the amount you can comfortably invest regularly. Consistency in SIP investments is more important than the amount invested.  11. Exit Load and Lock-in Period: Check for any exit loads or lock-in periods associated with the mutual funds. These can impact your ability to withdraw funds when needed.  12. Market Conditions and Economic Outlook: Consider the current market conditions and economic outlook while selecting funds. Different sectors perform differently in various market cycles.  13. Tax Implications: Understand the tax implications of the funds you're considering. Different funds have different tax treatments for gains.  14. Regulatory and Corporate Governance: Research the fund house's reputation, regulatory compliance, and corporate governance practices to ensure a trustworthy investment.  15. Diversification: Diversify your SIP investments across different fund categories and asset classes to mitigate risks and capture potential opportunities.  Conclusion: If one selects the right mutual fund then it can fetch you good returns over the period, but the selection criteria should not be based on the returns only. One should consider other factors like risk, expense ratio, etc. FAQs Which is best for mutual fund SIP? Quant Small Cap Fund Growth Option Direct PlanPGIM India Mid-cap Opportunities Fund Direct Plan-GrowthCanara Robeco Small Cap Fund Direct-GrowthBank of India Small Cap Fund Direct-GrowthQuant Tax Plan Direct Option Growth PlanQuant Infrastructure Fund Growth Option Direct PlanQuant Mid Cap Fund-Growth Option Direct PlanKotak Small Cap Fund Direct-GrowthQuant Active Fund Growth Option Direct PlanQuant Flexi Cap Fund Direct Plan Growth Option What is SIP mutual fund? A Systematic Investment Plan (SIP) is an investment tool in mutual funds at regular intervals. The investor can decide the amount, and date of investment and choose to stop or pause. Is SIP better than FD? A SIP is likely to get you better returns than an FD. FD is an investment product while SIP is an investment tool - a way to invest rather than a product itself. You can start a SIP in mutual funds, direct stocks, or ETFs that have historically beaten inflation and FD rates in India. What is the difference between a SIP and a mutual fund? Mutual Fund is an investment product while SIP is an investment tool - a way to invest rather than a product itself. TALK TO AN EXPERT 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 the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of the future performance of the schemes.

Securing an education loan for abroad studies opens the door to a world of academic and personal growth. Let’s break down the process for getting educational loans for abroad studies and find out the eligibility criteria, documents needed, how to get an education loan, and much more. Education Loans for Abroad Studies In an increasingly interconnected world, pursuing education abroad has evolved from being a mere aspiration to a transformative experience. The exposure to diverse cultures, cutting-edge academic programs, and unparalleled opportunities for personal growth has made international education a sought-after endeavour. However, the costs associated with studying abroad can be overwhelming. This is where investment in education loans comes to the rescue, acting as a bridge between dreams and reality. https://www.youtube.com/watch?v=4gTQkdePOWM Are you eligible to get a study loan abroad? To be eligible, applicants often need to meet certain requirements that the bank has set. For instance, if you are applying for a study loan to study abroad from India then here are the basic eligibility criteria that you need to meet. The applicant must be 18 years old and an Indian citizen Co-applicants must be an Indian citizen Ability to offer collateral for certain cases Co-borrower(s) must have a bank account in any bank in India with cheque writing facilities Confirmed admission to the colleges before disbursement Admission Confirmation: Having an admission offer from a recognized foreign institution is a prerequisite for applying for an education loan. The institution's reputation and the chosen course play a role in determining loan approval. Co-Applicant/ Guarantor: Many lenders require a co-applicant, usually a parent or guardian, to share the responsibility of repaying the loan. The co-applicant's financial stability can influence the loan's terms. Collateral: Depending on the loan amount, lenders might ask for collateral as security. Property, fixed deposits, or other priceless assets can be used as collateral. Eligibility criteria differ on the basis of your nationality. Co-Applicant Education Loan Guide Read More How should you apply for an education loan abroad? Navigating the education loans for abroad studies application process can be overwhelming, given the multitude of options and procedural complexities. To get an education loan, you can visit public and private banks, find out the interest rate and start the process with your chosen provider. Rather than visiting all the banks, you can opt for an education loan counselor. An educational loan counselor is an expert who serves as an intermediary between aspiring students and financial institutions, helping them find the best loan options tailored to their needs. They streamline the loan application process, help with documentation, and get your fast approval. Education loan counselors can help you save both time and effort. https://www.youtube.com/watch?v=fufyFB9aMQI Documents you need for an Education Loan When applying for an education loan, the documentation process is a crucial step. Commonly required documents you must have: Loan application form Passport-size photos PAN card and Aadhar card Indian passport (if you are going abroad) Marksheets for 10th, 12th & Graduation Entrance exam results (like IELTS, GMAT, GRE, TOEFL, etc.) Offer letter or a conditional admission letter (if received) Work experience proof (if any) In the case of self-employed co-applicant 8-month bank statements of savings & current account 2- years ITR statement Collateral documents (if needed) In the case of salaried co-applicant6-month bank statements of the salary account of the co-applicant2-year ITR / FORM 16 co-applicant3-month salary slips Collateral documents (if needed) How to use Education Loan Calculator for abroad studies? An education loan calculator is a way to find out the monthly payments you will be making to close your student loan! An education loan for abroad studies is a huge responsibility and the calculator helps you find out the EMIs you will potentially be repaying, the duration of repayment, and the total payable amount after adding the interest. It’s very easy to use and can help you determine the future EMIs on your loan. For instance, you decide to take a loan of Rs. 25,00,000 at an interest rate of 10%. The decided loan tenure is 10 years. If you put all these details in an educational loan calculator, it will tell you the exact EMI amount, which is Rs. 33,038, the total payable amount, that is Rs. 39,64,522 along with the payable interest amount (Rs. 14,64,522) on top of the principal amount of Rs. 25 lakhs. An education loan calculator is a powerful tool that helps you prepare for the future, let's gauge the estimated costs you will be repaying and helps you budget for it in advance. What is the interest rate of education loans abroad? The interest rate depends on many factors. The interest rate of education loans for abroad studies is determined by the bank, individual profile, co-applicant history, and whether it’s a secured or unsecured loan. If you are applying with EduFund, you can get low and attractive interest rates starting from 9.85% with the top loan providers like Prodigy Finance, IDFC First Bank, ICICI Bank, Axis Bank, and many more. Things to Know Before Choosing an Education Loan Selecting the right education loan requires a careful evaluation of several factors: Interest Rate: The interest rate significantly impacts the overall cost of the loan. For the best deal, compare the rates provided by several lenders. Repayment Tenure: Longer repayment tenures might result in lower monthly installments but higher overall interest payments. Choose a tenure that aligns with your financial plans. Processing Fees: Understand the processing fees associated with the loan application. Some lenders might have hidden charges that could affect your repayment burden. Tax Benefits: In some countries, education loan interest payments are eligible for tax deductions. Familiarize yourself with the tax implications of the loan. Prepayment Terms: Check if the lender allows prepayment without penalties. This can help you save on interest payments if you have the means to repay the loan early Higher interest rate of education loans for abroad:  While investing in education loans serves as a lifeline for many students aspiring to study overseas, the interest rates can vary significantly. Factors like the bank's policies, the applicant's credit history, and the loan type (secured or unsecured) play a role in determining the interest rate, exchange rate fluctuations, repayment challenges in foreign currency, and the global economic scenario. https://www.youtube.com/watch?v=TJ4qgFj46Uw Importance of selecting the right repayment plan Choosing the right repayment plan for your education loan is a critical decision that can significantly impact your financial well-being post-graduation. Financial institutions often offer various repayment options, such as fixed, variable, or income-based plans. Understanding the nuances of each plan and aligning it with your future income projections and financial goals can ensure a smoother repayment process and alleviate undue stress. Partnering with EduFund: Shaping a Bright Future for International Education Pursuing education abroad is a transformative experience that opens doors to academic and personal growth. However, the costs associated with international education and education loans for abroad studies can be daunting. Amidst this process, EduFund stands as a reliable partner, offering attractive interest rates and partnering with esteemed institutions to make the dream of studying abroad a reality. EduFund provides access to a range of loan providers, each with its own interest rate structures. Keeping in mind that lower interest rates can significantly reduce the long-term financial burden, applicants should strive to secure the best possible rate for their circumstances. With EduFund's support, students can embark on their educational journey confidently, knowing that their financial needs are well taken care of. Talk To An Expert FAQs Can I apply for a loan before receiving the admission offer? It's recommended to have an admission offer in hand before applying for a loan, as lenders often require it for processing. What's the typical loan repayment grace period after completing the course? What's the typical loan repayment grace period after completing the course? Does a good credit score essential for loan approval? While a good credit score can enhance your chances of approval, some lenders offer loans to students with co-applicants who have strong credit profiles. What happens if I'm unable to secure a job immediately after completing the course? Some lenders offer extended grace periods or flexible repayment options for students who face challenges in finding employment Can I get a loan for living expenses in addition to tuition fees? Some lenders do offer education loans that cover both tuition fees and living expenses. Check with the lender for specific terms. An education loan for abroad studies bridges the financial gap between your aspirations and the realization of international education. EduFund aims to help you bridge that gap by offering low and attractive interest rates on your education loan. EduFund connects you with India’s top lenders, helps you compare loan plans, and even get collateral-free education loans up to Rs. 1 crore

Incorporated in the midst of the Global Financial Crisis, Quant Mutual Fund has been in existence for approximately two decades now. The AMC offers a variety of mutual fund schemes, including equity funds, debt funds, and hybrid funds. Quantum Mutual Fund is known for its focus on active management and its commitment to providing investors with high-quality investment products. Quantum India ESG Fund Investment Objective The investment objective of the scheme is to achieve long-term capital appreciation by investing in shares of companies that meet Quantum’s Environment, Social, and Governance (ESG) criteria.  Investment Process  The Quantum India ESG Equity Fund invests in companies that are focused on conserving the environment, positively impacting communities that they operate in, and conducting business ethically.  These sustainable businesses are not only environmentally and socially responsible but also make great sense as investments as you look to build wealth over the long term.  The fund invests after comprehensive research on Environmental, Social, and Governance or ESG factors following the risk and liquidity controls on investing.    Portfolio Composition The portfolio is biased towards large-cap stocks, with 78% of the funds allocated to large-cap stocks, the remaining 19% and 3% to mid-cap and small-cap stocks respectively. Note: Data as of 31st July 2023. Source: Quantum Mutual Fund, Value Research Top 5 Holdings for Quantum India ESG Equity Fund Name Weightage % HDFC Bank Limited 8.21 TVS Motor Company Limited 4.35 Tata Communications Ltd 4.13 Tata Consultancy Services Ltd 3.95 The Indian Hotels Company Ltd 3.59 Note: Data as of 31st July 2023. Source: Quantum Mutual Fund Performance for Quantum India ESG Equity Fund   NIFTY100 ESG TRI S&P BSE Sensex TRI Period Scheme (₹) Benchmark Additional Benchmark Since Inception  17.24%  15.81%  15.65%  3 Years  22.52%  20.82%  22.38%  1 Year 15.69%  13.53%  20.70%  Note: Returns in % as of 31st, July 2023. Source: Quantum Mutual Fund  Since its inception, the fund has generated a CAGR (Compounded Annual Growth Rate) of 17.24%. Invest in Fund Fund Manager  The scheme is co-managed by Mr. Chirag Mehta & Ms. Sneha Joshi.  Mr. Chirag Mehta has more than 19 years of experience and has been managing this fund since July 2019.  Ms. Sneha Joshi has more than 9 years of experience and has been managing this fund since July 2019.  Who Should Invest in Quantum India ESG Equity Fund?  The fund is suitable for investors who are seeking.   Long-term capital appreciation.  An investment opportunity that invests in shares of companies that meet Quantum's Environment, Social, Governance (ESG) criteria.  Why Invest in this Fund? The fund offers a solution for investing in businesses where sustainable practices drive long-term performance.  It invests after comprehensive research on Environmental, Social, and Governance or ESG factors.  It provides exposure to good quality sustainable companies with low volatility and downside risk.  It is a well-diversified portfolio that follows a disciplined investment process.  It follows risk and liquidity controls on investing.  Time Horizon One should look at investing for at least five years or even more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion Quantum India ESG Equity Fund is an open-ended fund that allows investors to invest in equities following the ESG theme. The fund has outperformed its benchmark consistently. However, the fund was launched approximately 3 years ago, so it will be important to monitor how the fund performs in the upcoming future. Hence, investors who believe in the ESG theme of investing can consider this fund with a long-term time horizon. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

The education experience that the United Kingdom provides foreign nationals is truly remarkable. From superior education institutions to unmatchable facilities blended with experimental teaching frameworks, the UK helps students unlock their fullest potential. Going to study in another country entails more than just gaining knowledge. This also allows students to gain a global perspective, which greatly influences them as individuals. https://www.youtube.com/watch?v=v4gmR-U_vHA&pp=ygUHZWR1ZnVuZA%3D%3D Reasons why, the United Kingdom is one of the most popular locations for higher education 1. Reputable universities are known worldwide International acclaim is accorded to the UK's academic program and elite universities. With connections through the United Kingdom, one can access prestigious academic institutions with histories that date back to the 12th and 13th centuries. Undoubtedly, degrees from such universities are highly regarded and appreciated. As a result, if your child's profile includes a degree from a UK university, be assured that they shall increase competition in the professional world. Furthermore, such institutions motivate learners to advance their careers, showcase their talents, and pursue their dreams. Start Saving with EduFund 2. Universities promote utility-based knowledge The United Kingdom provides students with opportunities to conduct coursework as per their interests. Students will have greater research viable alternatives as a result of this.  Constructive content-focused methods and participative-based understanding is preferred over textbook education in the United Kingdom. This signifies that learners can fine-tune their ability to analyze and think critically in their selected discipline of study.  In addition, the Quality Assurance Agency, a reputable UK organization, regularly assesses the academic standards at all colleges and universities. The body uses subject assessments and quality audits to assess effectiveness. Cost of Studying LAW in the UK Read More 3. The pool of diverse culture Britain is a diverse nation that has long been popular for international students seeking higher education. Britain is the second most sought-after country among international students seeking an education abroad.  As a natural outcome, UK universities are bustling with students from various cultures. Students can socialize in a multicultural environment and enjoy a welcoming campus environment. As a student, meeting and learning about people from all over the globe is possible. source: Pexels 4. Impressive employment opportunities During the academic year, overseas students may work up to 20 hours per week. A few universities perhaps assist students in obtaining internships as a component of their coursework. Students will have a comparative advantage once they graduate. Students gain confidence about excellent job opportunities upon completing their graduate or postgraduate studies. Besides this, the British government has adopted a new post-study working visa that allows international graduates to stay and work in the UK for an additional two years. This extends to students who graduated in the summer of 2021. https://www.youtube.com/watch?v=EyP3Li4ofNg 5. Financial privileges Most students pick the UK as their higher education destination due to the government's many financial benefits. The foremost and most significant reason is that students can finish a degree program in the UK sooner than anywhere else in the country.  An undergraduate course lasts four years in several countries around the world. It would be beneficial if students completed their postgraduate degree in two to three years. In the UK, students can accomplish their undergraduate degree in three years and their postgraduate qualification in one year unless individuals pursue medicine or research. International students studying in the UK can also apply for financial assistance like scholarship opportunities, student grants, and bursaries. International students who intend to attend British universities are entitled to free medical treatment through the National Health Service. Uk, 2020/21 - Higher education student statistics Enrolment in first-year higher education by level of study - 2011/12 to 2020/21 academic years. First-year degrees have recently become a popular type of higher education, increasing by 8% between 2019/20 and 2020/21. The number of first-year postgraduates taught increased by 16% over the previous academic year. First-year student enrolment in postgraduate research courses has returned to 2017/18 levels, following a 6% increase since 2019/20 6. The national student survey report Former students who studied in different universities in the UK share their experiences learning in their respective colleges with the NSS. This is a UK-wide survey, and many students participate in it. The most recent National Student Survey published in 2020 indicates that  84 % of respondents were satisfied with their course's teaching, and  86 % were satisfied with their learning resources. 83 % were pleased with their educational opportunities. Conclusion British universities ensure consistent academic standards, with industry professionals on various academic topic areas. These aspects keep the universities higher in the global ranking. With revolutionary instructional approaches, the higher education system in the UK is widely acknowledged as the preferred standard for university education. There were 2.38 million students enrolled in educational institutions in the UK in 2018-19. Start saving early to consider the UK for your child's higher education Talk To An Expert FAQs Why did you choose the UK for higher education? The UK offers world-renowned universities, diverse academic programs, and rich cultural experience. Its education system emphasizes research, critical thinking, and practical skills. With a global network, top-notch faculty, and vibrant student life, studying in the UK can provide an excellent foundation for future success. Why UK is better than India for higher studies? The UK offers a broader range of internationally recognized universities, advanced research facilities, and diverse study options compared to India. With a focus on experiential learning and global exposure, studying in the UK can offer a competitive edge in terms of quality education and career prospects. What are the benefits of being a student in the UK? Being a student in the UK offers access to top-tier education, global networking opportunities, cultural diversity, and a chance to explore historic landmarks. It fosters personal growth, academic excellence, and memorable experiences. What are the benefits of choosing to study in the UK? Studying in the UK offers access to world-class universities, diverse academic programs, renowned faculty, research opportunities, and a multicultural environment. It provides a chance to enhance career prospects, gain international exposure, and develop valuable skills, all within a rich historical and cultural backdrop.

Managing finances as a single parent could be challenging in today's changing environment if not appropriately planned. Things could get out of control if not managed adequately. The child/children could be deprived of basic needs like education, clothing, etc. How single parents can plan finances? 1. Get rid of debt The first step is to get rid of debt. If you have any, try to pay off all the debt to reduce liability. And there is no stress about paying the EMIs. Education planning advice for new parents Read More 2. Emergency corpus The next step is creating an emergency corpus for yourself and your child to remain protected in uncertain events like job loss. The ideal way of making an emergency corpus is to put aside 6 months of your expenses. For example: if you have monthly expenses of Rs. 30,000, then you should put Rs.1,80,000 in a liquid fund or fixed deposit. 3. Life Insurance If something wrong happens to you, how or who will care for your child's expenses? For such a situation, consider having life insurance, preferably Term insurance. Calculating the amount of life insurance can be calculated in many ways. One could be 25 times your CTC. Suppose you have a CTC of 6 Lacs. The ideal life insurance cover you should consider is 1.5 crore. How Single Women can Start Investment Journey? Read More 4. Medical insurance Anyone can face health issues at any point in time. So, it is better to be well prepared by buying medical insurance. 5. Make a budget After having all these things in place, make a monthly budget. Calculate all your inflows and outflows, and categorize them into different categories Start SIP for child education savings 6. Define short-term & long-term goals Now, you need to prioritize your goals based on their importance and the time left to achieve them. Suppose you have to buy a house and a car and pay your child higher education fees. Now, you need to define which one is a short-term goal or which one is a long-term goal. Buying a house or car can come under long-term goals, but paying for your child's education could be short-term or long-term, but it needs to be prioritized at the top of your goals. Define the goals and prioritize them so that you achieve all your goal in time.  7. Make a financial plan Create a financial plan to achieve your goals which will define the time to achieve it, your risk appetite, and how much amount will be required to achieve that goal. Draw your investment strategy to help you achieve your goals effectively and efficiently. Conclusion When you are the only person to take care of your child, you should try to plan everything well in advance to provide a quality of living for your child. Having a sound financial plan will also help you ease your financial journey during the downturn. Talk To an Expert FAQs What are some financial tips for single parents? Here are some financial tips that all single parents must follow: Get rid of debt Emergency corpus Life Insurance Medical insurance Make a budget Define short-term & long-term goals Make a financial plan How important is it to save for parents? Education inflation is the reason why every parent needs to save for their child’s future! The cost of tuition is increasing every year. The education inflation rate is 11-12 percent; double of CPI which is at 6%. This means that the costs of education are growing faster than consumer price inflation as well. Fees for prominent courses and colleges are likely to reach 1 crore in the next 15 years. Parents need to be prepared for hefty fees in the future. Why should parents save money?   Financial security for emergencies and unexpected expenses.  Funding their child’s education and future endeavors.  Building wealth and assets for retirement.  Preparing for major life events like buying a house or starting a business.  Leaving a financial legacy for their family. 

Being a parent in the 21st century is challenging. There are plenty of financial goals that seem impossible because the world is much more expensive. Raising a child requires disciplined budgeting, education planning, and financial independence. It's not to say the previous generation had it easy – inflation, recession, capitalism – they faced it all. Yet some new challenges can make meeting financial goals for Millennials and Gen Z parents trickier.    The rise in education inflation and consequent pricing is making education harder to afford for millions of new-age parents. The pandemic setback, global crisis, raised prices, and unemployment has made raising children in the technologically-proficient world much more competitive.    Here are some financial goals that every millennial and Gen Z parent should adopt to secure their child's future in this changing economy: Create Goals for Child Education Tips for achieving financial goals! 1. Create an education fund   Borrowing money from relatives, taking out a loan on your house, or worse, stopping your child from pursuing the dream they want are some inevitable financial decisions you may have to take - if you don't start an education fund for your child. Investing Rs. 1000 every month for the next 18 years (assuming returns of 12%) can give you nearly Rs. 6,00,000 - Rs. 7,00,000!    Disciplined education planning can help you pay for your child's tuition, living expenses, shifting expenses, books, laptops, etc. You can do this easily from home - calculate the future cost of college through the College Cost Calculator - fill out your child's details to get an accurate estimate of what tuition fees and living expenses can cost you. Once you know the exact amount, you can start saving up with different options designed to help you achieve your goal faster on the EduFund App.    https://www.youtube.com/watch?v=v4gmR-U_vHA&pp=ygUHZWR1ZnVuZA%3D%3D 2. Get a health insurance   Another financial goal parents should aim toward is getting health insurance coverage for their children. Good health insurance can help you cover your child's medical bills and expenses without burning a hole in your pocket. The idea that only the sick need health insurance is a huge financial mistake you can avoid. From minor injuries to seasonal diseases and hospital bills, insurance can help you cover the bills partially or entirely, depending upon the coverage you opt for!    3. Try the cookie jar approach   Many parents forego their retirement savings for their college. You can avoid this by using the cookie jar approach to investing. Define specific long-term goals you want to save towards, like a child's college, retirement fund, travel fund, or house fund, and allocate funds to every category based on when you wish to complete this goal. By defining your goals and allocating appropriate funds to achieve the goals in the set time frame – the chances of hitting your goals increase!    https://www.youtube.com/watch?v=uYlrsx9_yog&pp=ygUHZWR1ZnVuZA%3D%3D 4. Start an emergency fund The tragedy is a part of life; unfortunately, we can only prepare for it to soften its blow. Creating an emergency fund does precisely that. It is a cushion to fall back on when an emergency like job loss, health crisis, or sudden financial expense. An emergency fund should have enough money to help you sustain yourself and your family for a couple of months. For instance, if your monthly expense is Rs. 20,000, you must have Rs. 1,20,000 in your savings account to fall back on.    This emergency fund is a financial goal for all millennials and Gen Z parents to embrace. This fund can help you prioritize your goals, savings, and investments.    Start Investing in Mutual Funds 5. Budgeting is king Another financial goal that most parents overlook is budgeting. We all want to give our newborns everything possible – the best bed, the latest gadgets, toys, brilliant daycare, schooling, etc. Doing so makes it easy to go overboard and spend more than you want. Budgeting can help you eliminate this oversight – by allocating a specific budget to different needs; you ensure that you can meet all of them and avoid stretching your wallet.    These financial goals for millennials and Gen-Z parents can be a short survival guide. With the cost of education rising yearly, basic education needs and schooling are likely to be affected. The only solution is to start saving early and systematically to provide a secure and safe learning experience for your child from school to college! Talk to an Expert FAQs How can I ensure I can afford my child's education, given the rising costs? It’s crucial to start an education fund to secure your child’s education. By investing Rs. 1000 per month for the next 18 years with an assumed return of 12%, you could accumulate nearly Rs. 6,00,000- Rs 7,00,000. \ This disciplined planning can help cover tuition, living expenses, shifting costs, books, laptops, and more. Use tools like the College Cost Calculator on the EduFund App to accurately estimate and achieve your education savings goal. What's the importance of having an emergency fund? An emergency fund is crucial to cushion financial setbacks such as job loss, health crises, or unexpected expenses. Aim to have enough money to cover your family's expenses for a few months. For instance, if your monthly expenses are Rs. 20,000, having Rs. 1,20,000 in your savings account, provides a safety net. This fund ensures you're prepared for unforeseen situations while prioritizing your goals, savings, and investments. How can I balance saving for my child's college and my retirement? You can avoid sacrificing your retirement savings by using the "cookie jar" approach to investing. Set clear, long-term goals for different needs like college, retirement, travel, and more. Allocate funds to each category depending on your timeline. This strategic approach helps you allocate resources efficiently and increases the likelihood of achieving your financial goals. Why should I consider health insurance for my child? Health insurance for your child is essential to cover medical bills and expenses. Even minor injuries and seasonal diseases can lead to unexpected costs. Health insurance ensures you're financially prepared to handle these situations without straining your budget. Remember, insurance coverage varies, so choose a plan that aligns with your needs and budget.

The United Kingdom has been one of the preferred global destinations for Indian parents who want to send their children abroad for higher education.  The thought is exciting enough as it opens new doors of opportunity for a flourishing career but it requires a considerable sum of money that every parent cannot afford. Education, especially higher education in foreign countries like the UK, is revered in India, no doubt. But it is a fact that every Indian parent cannot afford to send his child abroad without an appropriate loan. Knowing about the education loan process for the UK must be a priority for a parent as it will help in fulfilling their children’s dreams to a great extent. https://www.youtube.com/watch?v=sRiktJ_KLmo Cost to study in the UK   Studying in the UK entails various costs, including tuition fees, accommodation, living expenses, and study materials. Tuition fees differ based on the university and program, with undergraduate fees ranging from £10,000 to £38,000 per year for international students. Postgraduate fees can vary similarly. Accommodation expenses vary by city and housing type, with average rents ranging from £800 to £2,000 per month. Additional living costs, such as food, transportation, and utilities, might average around £700 to £1,000 per month. Scholarships can help offset these expenses. It's crucial to budget for visa fees, health insurance, and potential travel costs. Researching scholarships, part-time job opportunities, and efficient budgeting strategies can make studying in the UK financially manageable.  Documents required for Education Loan Approval:  Applying for an education loan to study in the UK is a significant step towards realizing your academic aspirations. To ensure a smooth loan approval process, it's essential to provide the necessary documents that demonstrate your eligibility and commitment to your education journey. The documents required typically include:  Admission Letter: A formal confirmation of your acceptance into a recognized educational institution in the UK is a crucial document that validates your need for financial support.  Cost Estimate: Present a detailed breakdown of the anticipated costs of your education, including tuition fees, accommodation expenses, living costs, study materials, and travel expenses. This estimate will guide the lender in determining the loan amount.  Academic Records: Submit copies of your academic transcripts, certificates, and standardized test scores, such as IELTS or TOEFL results. These documents showcase your academic prowess and your commitment to your studies.  Collateral Documents: If you're applying for a secured education loan, provide relevant collateral documents. These might include property papers or certificates of fixed deposits that demonstrate your capacity to secure the loan with valuable assets.  Proof of Identity: Present a valid passport, Aadhar card, or any other government-issued identification document to establish your identity.  Proof of Address: Furnish documents that verify your residential address. This could include utility bills, rental agreements, or any other official documents.  Income Proof: Showcase your parents' or co-borrowers income stability and capacity to support your education. This might involve salary slips, income tax returns, or business-related documents.  Co-borrower Documents: If you're including a co-borrower, such as a parent or guardian, provide their identity and address proofs, as well as income-related documents.  Letter of Admission: A critical piece of evidence that affirms your intention to study in the UK. This document outlines the course details, duration, and starting date.  Types of Education Loans for the UK:  When pursuing an education loan to study in the UK, you'll typically encounter two primary types: secured education loans and unsecured education loans.  Secured Education Loan: This type of loan requires you to offer collateral, which could be property, fixed deposits, or other valuable assets. For the lender, the collateral serves as security, lowering their risk. In return for this security, secured loans often come with lower interest rates compared to unsecured loans.  Unsecured Education Loan: Unsecured loans do not require collateral. These loans are based on your creditworthiness, academic performance, and the financial stability of your co-borrower. While they provide a valuable avenue for those without significant assets, unsecured loans usually come with higher interest rates to compensate for the increased risk borne by the lender.  Expenses Covered in Education Loan for the UK Education loans for the UK are designed to comprehensively cover the various expenses associated with pursuing higher education overseas. These expenses typically include:  Tuition Fees: The loan covers the tuition fees required for the chosen course of study.  Accommodation Expenses: The loan encompasses accommodation costs, including rent and related charges.  Living Costs: This includes day-to-day expenses such as food, transportation, study materials, and personal needs.  Travel Expenses: The loan can cover travel costs related to your journey to and from the UK.  Insurance Fees: Comprehensive health insurance is essential when studying abroad, and education loans often account for these costs.  It's essential to have a clear understanding of what expenses your education loan covers. This knowledge will allow you to plan your finances effectively and avoid unexpected financial burdens.  Eligibility for Education Loan for the UK While eligibility criteria can vary among lenders, certain common factors determine whether you qualify for an education loan to study in the UK. These typically include:  Indian Citizenship: You need to be an Indian citizen to be eligible for most education loans.  Admission Confirmation: You must secure admission into a recognized educational institution in the UK.  Co-borrower Requirement: Education loans usually require a co-borrower, often a parent or guardian, who demonstrates the ability to repay the loan in case you face difficulties.  Academic Performance: Lenders often consider your academic performance as an indicator of your commitment to your studies.  Financial Stability: The financial capacity of your co-borrower to repay the loan is a crucial factor in the approval process.  Education Loan Documents Required for the UK When applying for an education loan to study in the UK, the following documents are commonly required:  Completely fill out the application form that the lender provides.  Admission Letter: A formal letter of admission from your chosen UK educational institution.  Cost Estimate: An estimate of the total expenses involved in your education, including tuition, living costs, and other related expenses.  Academic Records: Copies of your academic transcripts, certificates, and standardized test scores like IELTS or TOEFL.  Collateral Documents: If applying for a secured loan, provide relevant collateral documents.  Income Proof: Documents that establish the income stability of your co-borrower, such as salary slips or income tax returns.  Proof of Identity: A valid passport, Aadhar card, or other government-issued ID.  Documents that attest to your residential address serve as proof of address.  How to Make a UK Student Loan Application:  Acquiring an education loan for studying in the UK involves a structured process:  Research: Begin by researching the various lenders that offer education loans for studying in the UK. Compare the terms, interest rates, and qualifying requirements of each.   Application: Once you've selected a lender, complete their application form and gather the necessary documents.  Document Submission: Submit the application form along with the required documents to the lender's designated branch or online portal.  Loan Approval: The lender will review your application and documents to assess your eligibility and creditworthiness.  Loan Sanction: Upon approval, the lender will issue a sanction letter outlining the loan amount, terms, and conditions.  Repayment of Education Loan Repaying your education loan is a significant responsibility that begins after the completion of your course or after a predetermined grace period. The repayment term varies, typically ranging from 5 to 15 years, depending on the loan amount and terms. It's essential to factor in your post-education financial situation and choose a repayment plan that aligns with your capacity to repay. How to Choose the Best Lender? Selecting the right lender for your education loan significantly impacts your financial journey. Here is some advice on how to choose wisely:  Interest Rates: Compare the interest rates offered by various lenders and opt for one with competitive rates.  Loan Amount: Ensure that the lender covers the full extent of your education-related expenses.  Repayment Terms: Evaluate the flexibility of repayment terms and choose a lender with options that suit your financial situation.  Processing Time: Opt for a lender with an efficient and streamlined loan processing system to avoid unnecessary delays.  Customer Service: A responsive and supportive customer service team can make your loan journey smoother.  Additional Benefits: Some lenders offer additional benefits such as pre-visa disbursement and reduced interest rates for female students. When choosing, keep in mind these benefits.  How to start the UK education loan process? Some important facts about the education loan procedure for the UK are as follows: Step 1: Research the education loan procedure Research is the key. So, start looking at viable options at least 8 – 10 months before the new semester begins in the UK. The loan procedure of every country is different. Hence, going through reputed sites like EduFund to gain the correct information is absolutely crucial. https://www.youtube.com/watch?v=Obks6fyQyhs Check Education Loan Eligibility Step 2: Know the difference between secured and unsecured education loans Secured loans: Secured loans refer to collateral-based finance options like government banks for funding higher education in foreign countries.  The low interest rates and fewer processing fees make them look inexpensive when compared to other types of education loans Unsecured loans: Unsecured loans refer to education loans secured with the help of NBFCs or non-bank financial companies.  The interest rates are high, no doubt, but it is a feasible option if a student wants to pursue an education course in one of the top 10 or 20 universities in the UK.  This service is also available on the EduFund App at zero hidden charges and fast disbursal. Step 3 - Decide the university in which you want to enroll Identify the university in which you want to enroll. Make sure it is offering the education course you want to pursue. Look at the eligibility criteria for admission. Look at the average fee structure. Calculate the amount of education loan you will need to study at the specific university.  Include both academic and non-academic expenses like tuition fees, other compulsory fees, accommodation expenses, transportation costs, books and supplies costs, and, health insurance premiums. Look at the amount you can shelve out from your pocket and the amount needed to pursue the studies. Calculate the difference and identify the actual loan amount you will need. Download App and Start Saving Step 4 - Make inquiries about the banks and loan options Identify the banks that offer loan opportunities. Check the criteria for loan eligibility. Look at the interest rates. Calculate the actual amount you will have to pay. Know about the payment schedule and the terms of payment. Enquire about the penalty or the additional amount you will have to pay in case you are unable to pay on schedule or as directed. For a hassle-free process, you can check your eligibility for easy educational loans at EduFund. Why? No hidden charges, low-interest rates, and collateral-free loans up to Rs 75 Lakhs. Step 5 - Compare the education loan options in the UK You have already shortlisted the banks with viable education loan options.  Compare all the relevant details like interest rate, processing fee, processing time of the loan, loan margin, payment terms, and also available income tax exemptions. Do not hesitate to make comparisons as it will help to save a good amount of your money. https://www.youtube.com/watch?v=mW0VH10uH9I Conclusion The presence of widespread Indian communities and numerous academic courses like Medical, Engineering, Hotel Management, Finance, and Business coupled with an easy education loan processing for the UK acts as a magnet to lure in students from all over the country. To interested Indian parents, EduFund is here to help you. Explore all of your options and compare them all in one platform.