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Best Child Investment Plans in 2024 

Best Child Investment Plans in 2024 

As we have stepped into 2024, although the year has changed, what has remained constant is parents' worry about rising inflation and education costs. Despite the uncomfortably high inflation (5.69, general, as of Dec. 2023), these rising figures do not reflect the hardship brought on by rising education costs. According to one news article, education inflation is higher(twice) than the inflation rate. Education costs include tuition fees, co-curricular fees, and other fees. Parents can consider the investment a suitable tool to mitigate these worries and the inflation risk.  When parents start investing in their child's future early, it is always beneficial as they will see the magic of compounding over the years. Along with inflation, the return on investment will also rise. One can beat rising inflation by making the right decision at the right time.  Generally, when a person wants to start investing, there are a few parameters that he needs to keep in mind before planning.  What amount does an investor want to invest? The investment amount should be pre-decided, like the amount you are ready to start your journey. (E.g. An investor can start an SIP with an amount as low as ₹100)  What is the time horizon? The asset class to be invested in will depend on the time horizon. Generally, the longer the time horizon, the greater the risk an investor can take and vice versa. Therefore, the investor should decide when he would require the money, and based on that, he can consider the risk he can undertake.  What is the risk appetite of that investor? Every asset class has different risk characteristics. Few asset classes are considered highly risky, such as equity funds, but rewarding, whereas few other asset classes, like debt funds, can be less risky but have low return potential. The risk appetite will depend on factors such as time in hand, the financial position of the investor, the amount of investment, certainty of the cashflows or income, etc. Considering these factors, the investor should decide his risk appetite and which asset he can invest in.  Considering this, the following are a few investment options that people generally undertake:  FD (Fixed Deposit) – A traditional tool of investment that provides steady returns of 5-7% over the period, but the return on FD generally fails to beat inflation.  PPF – A secure investment that provides a 7-8% (est.) return on your investment. It falls under the EEE(Exempt-Exempt-Exempt) concept, which means the principal amount, the interest earned, and the maturity amount of PPF are completely Tax-free.  LIP – Endowment plans are offered by life insurance companies that facilitate both risk protection and investment options, and many people consider these for the child’s investment planning.  Gold – Gold is one of the most popular investment options that act as a hedge against inflation.  Real estate – Although real estate provides decent return potential, it has limitations, such as high-ticket size, high transaction costs, high maintenance costs, illiquidity, etc.  If we look at all the above asset classes, they all come with various limitations, the primary and the most important being their underperformance against the elevated education inflation. Therefore, the investors lose their money in real terms if the investment cannot beat the education inflation, which is often seen in the case of the above asset classes. However, one asset class offers a solution to this and many other problems.   Mutual Funds - Investment in mutual funds is an excellent option. Mutual funds offer different products for the different needs of the investors. There is always a product available for every need of the investors. For example, investors can consider debt funds for short-term time horizons, which offer better return potential than bank deposits with lower risk. Hybrid funds can be considered for medium-term time horizons, providing limited growth potential and portfolio stability. Equity funds are suitable for long-term time horizons, which provide high growth potential with reduced volatility over a longer duration. Apart from this, mutual funds offer benefits such as professional money management, liquidity, diversification, lower ticket size, etc. Thus, parents can start their investment journey by regularly investing through SIP or one-time investment through lumpsum.  Top Performing Mutual Funds Following are some of the top-performing mutual funds from different categories:  Fund Name Category Sub-category Inception AUM  (Rs Cr) Expense Ratio 3Y Return  5Y Return  Nippon India Small Cap Fund Equity Small Cap 01-01-2013 43,816 0.67% 41.76% 30.94% HDFC Mid Cap Opportunities Fund Equity Mid Cap 01-01-2013 56,033 0.80% 32.32% 24.97% SBI Contra Fund Equity Contra 01-01-2013 21,482 0.69% 32.20% 26.29% DSP Nifty 50 Equal Weight Index Fund Equity Index (Large) 23-10-2017 1,004 0.40% 21.79% 18.48% HDFC Balanced Advantage Fund Hybrid Balanced Adv. 01-01-2013 73,349 0.80% 26.29% 19.43% ICICI Prudential Multi-Asset Fund Hybrid Multi-Asset 01-01-2013 30,650 0.84% 25.51% 19.79%  Note – All are Direct Plan and Growth Option; AUM and Expense ratio are as of December 31, 2023; 3Y/5Y returns are annualized and as on January 29, 2024  Source - valueresearch.com  Nippon India Small Cap Fund Nippon India Small Cap Fund is among the best performers and has consistently outperformed the category over the last 1/3/5/7/10 years.  It has delivered the highest returns in the category over the last 7 and 10 years and has been in the top 3 over the three and 5-year period.  The fund has delivered the best risk-adjusted returns over the last three years, depicted by the highest Sharpe ratio.  HDFC Mid Cap Opportunities Fund HDFC Mid Cap Opportunities Fund is the largest fund in the mid-cap space with an AUM of Rs. 56,033 crores and is the only fund in the category to have an AUM of more than Rs. 50,000 crores.    The fund has consistently outperformed the category and the mid-cap index over all the 1/3/5/7/10 years.  The fund has delivered better returns per unit of risk, depicted by the lower standard deviation and the beta compared with the category average.  SBI Contra Fund The fund follows a contrarian strategy while investing in equity and provides exposure to companies of all sizes.  The fund has been in existence for approximately 25 years and has generated a since inception return of 17.13% for its direct plan as of January 29, 2024.  The fund has delivered the best risk-adjusted returns in the category, as depicted by the highest Mean Return, Sharpe Ratio, Sortino Ratio and Alpha.  DSP Nifty 50 Equal Weight Index Fund This fund tracks the Nifty 50 Equal Weight TRI, providing exposure to large-cap equities where the probability for alpha generation is very low.    Compared with the Nifty 50 TRI, the Nifty 50 Equal Weight Index TRI has delivered better returns with lower volatility over a long-term period.  The fund has delivered an alpha of 4.23%, whereas the other funds in the category have barely managed to generate the alpha in the last three years.  HDFC Balanced Advantage Fund HDFC Balanced Advantage Fund is one of the oldest funds in India and is the largest fund in the balanced advantage category, with an AUM of Rs. 73,349 crores.  The fund has been the top performer in the category for over 1/3/5 years and has delivered an impressive return of 16.15% for its direct plan since its inception.  Although the fund has been volatile more than the category, it has delivered a significantly higher alpha of 10.98% compared to the category average of 2.62% over three years.  ICICI Prudential Multi-Asset Fund ICICI Prudential Multi-Asset Fund has the largest AUM of 30,650 crores in the category.  The fund provides exposure to various asset classes such as equities, debt, real estate, commodities, etc.  It has delivered a significantly higher alpha of 11.90% against the category average of 4.70% over the three years.  Note: All the details of the funds mentioned above are of direct plan growth option unless otherwise specified and as of January 29, 2024.   Source: valuereasearch.com  Investing in your child's future will provide a world-class education to help them remain competitive among peers. Here, competitive means allowing them to be well-settled with their career choices and to live a confident and happy life. The sooner you start, the better you can provide for your child eventually.  Choosing the right plan and sticking to your investment decision will reward you with an extensive corpus. Investors can research before selecting any fund or consult a financial advisor who can give investment advice suitable to their risk appetite.  Happy Investing!  Disclaimer - Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The past performance of the mutual funds is not necessarily indicative of the future performance of the schemes. The mutual fund schemes mentioned are only for educational and informational purposes, and no investment is recommended. 
Investment options for beginners. You never knew

Investment options for beginners. You never knew

Mutual funds, the stock market, and bank deposits are India's best beginner investment options. The majority of novice investors are young and just starting their careers. They will therefore be investing for the long term. Beginner investors should aim to maximize their investments as they have experience and time on their side. In this article, we will be discussing the following topics: Why should you begin investing right away? You may take full advantage of the benefits of a long-term investing horizon by starting to invest when you are young. You might use an aggressive approach to your investment methods because of your age. Even if something went wrong, you would still have ample time to recover and go on to make a profit. Therefore, the key to maximizing investment prospects is to start investing early. Investment options for beginners in India Here are some investment options for people with no background or experience in investing. These options have lower, moderate, and higher risks, and an investor can choose to invest in different investment vehicles based on their needs. 1. Bank deposits People who don't like taking risks should put money in a bank. Minimal-risk investments have equity runs, though. You should consider investing in fixed deposits assuming you have a lump sum available. The interest rates on fixed deposits are rather decent and, if invested for a long time, can return a large sum. You may invest in a recurring deposit if you can put aside a set amount regularly, such as monthly or quarterly. One thing to keep in mind is that the potential profits provided by mutual funds and the stock market never match those provided by bank deposits. 2. Stock markets Among all investment options, investing in stocks gives you the possibility to get the best returns. You may invest with a long-term investing horizon because time is on your side. By doing this, you will combat market volatility and gain long-term advantages. To invest in the stock market, you must have some market understanding, though. If not, you should avoid the stock market. Without market expertise investing in stocks is equivalent to gambling. Your investment would be worth Rs 4.75 crore now if you had invested Rs 55,000 in shares of Eicher Motors, the company that makes Enfield motorcycles, in the year 2001 ($17.50 per share). The stock market has that kind of power. Additional read: What is foreign direct investment? 3. Mutual funds If you have a long-term investment plan, you can invest in mutual funds and take advantage of the power of compounding. Additionally, you do not need to be market-savvy. Mutual funds are run by expert fund managers with a proven track record of running successful investment portfolios. You may invest in equity funds given that you are a young investor and that these are recognized for providing outstanding long-term returns. Although investing in hybrid and debt funds might reduce your profits, they are still attractive options. You can invest in an equity-linked savings plan to reduce your taxes (ELSS). With this money, you can defer up to Rs 46,800 in taxes each year as per Section 80C of the Income Tax Act of 1961. No other tax-saving investment provides the twin advantage of tax deductions and wealth building like ELSS mutual funds do. 4. Government schemes A few government programs are available for investment. The Public Provident Fund is the most well-liked government savings program (PPF). It has a 15-year lock-in period with returns of between 7% and 9% annually. Additionally, you can put money into a Voluntary Provident Fund (VPF) or National Savings Certificate (NSC) (VPF). Starting to invest early in life is the secret to being wealthy. This will provide you with the chance to build a significant amount over time, and you can rely on this to achieve different goals. 5. Savings Accounts and Certificates of Deposit (CDs): Savings Accounts and Certificates of Deposit offer low risk and are ideal for short-term goals or emergency funds.  6. Real Estate Investment Trusts (REITs): Real Estate Investment Trusts invest in real estate without owning physical property.  7. Robo-Advisors: Robo-advisors are automated platforms that create a diversified portfolio based on your risk tolerance. Starting your investment journey can help you build wealth, achieve financial goals, and beat inflation over time.  Important Considerations for New Investors:  Set Clear Goals: Establish your financial objectives and investment horizon.  Determine your level of comfort with risk by evaluating your risk tolerance.  Spread your investments among various asset types to lower risk through diversification.  Research: Learn about the investments you're considering and the market trends.  Costs: Be aware of fees, including management fees, commissions, and taxes.  Taking the long view: Investing is a marathon, not a race. Avoid reacting to short-term market fluctuations.  Emergency Fund: Have an emergency fund in place before investing to cover unexpected expenses.  Stay Informed: Keep up with financial news to regularly review your portfolio.  How Much Money is Needed to Begin Investing:  The amount of money needed to begin investing can vary widely depending on the investment option you choose and your financial goals. Here's a general overview of how much you might need to start investing in different asset classes in Indian Rupees (INR):  Stock Market: You can begin investing in stocks with as little as INR 500 to INR 1,000 if you choose to buy shares of individual companies. However, it's recommended to have a diversified portfolio, so having INR 5,000 to INR 10,000 or more is a better starting point. A lot of brokerage firms have no minimum investment requirements.  Mutual Funds: The minimum investment amount can vary depending on the fund and the fund house. It typically ranges from INR 500 to INR 5,000 or more. Some mutual funds offer systematic investment plans (SIPs), where you can invest smaller amounts regularly, often as low as INR 500 per month.  Index Funds: Like mutual funds, the minimum investment for index funds varies but is usually in the range of INR 1,000 to INR 5,000.  Savings Accounts and CDs: You can open a savings account with a minimal deposit, often as low as INR 1,000 or even less. Certificates of Deposit (CDs) may require larger amounts, typically starting at INR 10,000 or more.  Real Estate Investment Trusts (REITs): Investing in REITs often requires purchasing shares through a stock exchange, so the minimum investment amount would be like that of the stock market, varying from 500 to 5,000 or more Indian rupees.  Robo-Advisors: Robo-advisors typically have lower minimum investment requirements compared to traditional financial advisors. You might be able to start with as little as INR 5,000 or less.  Keep in mind that while these are general guidelines, the specific minimum investment requirements can vary among different providers and investment options. It is critical to conduct research and select assets that are compatible with your financial objectives and risk tolerance. Additionally, it's advisable to consult with a financial advisor before making any significant investment decisions to ensure they are suitable for your individual circumstances.  When deciding how much to invest, consider the following factors:    Your Financial Situation: Ensure you have an emergency fund and pay off high-interest debts before investing.  Investment Goals: Determine what you're investing in and your time horizon.  Risk Tolerance: Consider how much risk you're comfortable with; this can influence your initial investment amount.  Regular Contributions: Even if you start small, commit to regular contributions to your investments to benefit from compounding over time.  Costs and Fees: Be aware of any fees associated with your chosen investments; these can eat into your returns.  Starting with a small amount and gradually increasing your investments as your financial situation improves is a prudent approach. The key is to begin investing early, stay committed to your goals, and continuously educate yourself about investment options and strategies. Over a period of time, even small contributions can grow into a substantial portfolio.  FAQsWhat should I invest in as a beginner?  As a beginner, start with low-risk options like index funds or ETFs, offering diversification. These require minimal knowledge and provide exposure to the broader market.  How do I start investing if I don't know anything?   Start by educating yourself through books, online courses, or consulting a financial advisor. Then, open a brokerage account, begin with a small amount, and gradually increase your investments.  What is the simplest investment?   A savings account is the simplest investment. You deposit money, earn interest, and can withdraw it at any time without risk to the principal.  What is the smartest way to start investing?  The smartest way is to begin with a clear financial goal, assess your risk tolerance, diversify your investments, keep costs low, and invest consistently over time. Consider low-cost index funds or seek professional advice.  Conclusion There are various types of investment options in the market but only a few for people who don’t have enough knowledge to study their investments. Hence, you should compare the options available to know and find out the risks involved and whether they suit you. In any case, whenever you need advice or information regarding investment plans, reach out to a financial expert. TALK TO AN EXPERT
UTI Balanced Advantage Fund 

UTI Balanced Advantage Fund 

UTI is one of the pioneers of the Indian Mutual Fund Industry. With an AUM of more than Rs 2.80 Lakh crore, the AMC is among the most trusted names in the mutual fund space. The UTI Mutual Fund offers products across asset classes.   Let us discuss the flagship product – UTI Balanced Advantage Fund.  About UTI Floater Fund  Investment Objective – The investment objective of the scheme is to provide long-term capital appreciation and income by investing in a dynamically managed portfolio of equity and debt instruments.   Investment Process  The scheme seeks to allocate the funds towards equity and debt with an objective to manage the portfolio with optimal asset allocation.  The equity portfolio will be large-cap biased but sector agnostic, constructed with the bottom-up approach and blend of growth and value styles.  On the other hand, the fixed income portfolio will focus on the “Quality and Liquidity” of the portfolio by investing predominantly in Sovereign/AAA/equivalent rated securities.  Net equity long positions of the portfolio will range between 30-90%, whereas 10-35% of the portfolio will be in debt & money market instruments.  Portfolio Composition  The portfolio comprises 51.2% allocation in equity, 29.69% in debt, and the remaining 19.11% in cash and cash equivalents.     Note: Data as of 31st December, 2023. Source: Value Research  Top Equity Holdings   Name Sector Weightage % HDFC Bank Financial 6.62 ICICI Bank Financial 5.69 Larsen & Toubro Construction 3.39 Tata Consultancy Services Technology 3.18 Infosys  Technology 3.18 Note: Data as of 31st December 2023. Source: Value Research  Top Debt Holdings   Company Instrument Weightage % GOI Sec 7.06  GOI Securities 8.56 GOI Sec 7.38 GOI Securities 5.77 Kotak Mahindra Bank Ltd  Certificate of Deposit 2.82 REC Ltd Non-Convertible Debenture 1.90 HDFC Bank Ltd  Debenture 1.90 Note: Data as of 31st December 2023. Source: Value Research  Performance Since Inception  Particulars 1 Month 3 Months UTI Balanced Advantage Fund  0.99% 7.11% Hybrid: Dynamic Asset Allocation 0.80% 9.49% Note: Data is for Direct Plan – Growth Option as of 19th January 2024. Source: Value Research  Fund Manager  Mr. Sachin Trivedi (Equity Portion). He is B.com, MMS, CFA. He is a Fund Manager managing this scheme since August,2023.  Mr. Anurag Mittal (Debt Portion). He is B.com, Master of Science, Chartered Accountant and managing this scheme since August,2023.  Why Invest in UTI Balanced Advantage Fund?  The scheme focuses on the three D’s to provide risk-adjusted tax efficient returns.   Diversification:  The scheme intends to invest 30-90% of the portfolio in net equity; 10-35% of the portfolio in fixed income, a good mix of equity and fixed income.  Dynamic:  Dynamic asset allocation and rebalancing of the portfolio.  Discipline:  Model guided asset allocation based on valuations to eliminate behavioural biases.  Who Should Invest in UTI Balanced Advantage Fund?  This fund is suitable for Investors.  Who are looking for long term wealth creation.  Who are looking to diversified portfolio of equity and fixed income.  Who are looking for a dynamic asset allocation solution to minimise risk of market volatility.  Who are seeking better risk-adjusted and tax efficient reasonable returns.  Ideal Time to Stay Invested   Ideal for investment with a time horizon of more than three years.  Conclusion  UTI Balanced Advantage fund is an open-ended dynamic asset allocation fund. It endeavours to provide equity taxation benefits as per prevailing tax laws. The inception date is 17th August 2023, and it’s been just five months since the fund was launched. Therefore, it will be essential to see how the fund performs in the long run.   Disclaimer: This is not recommendation advice. All information in this blog is for educational purposes only. 
Your Guide to Education Loans in India

Your Guide to Education Loans in India

With quality education becoming expensive and costlier every year, education loans are becoming extremely popular among students. In reality, the price of attending a reputable university is already very high. An MBA that cost 13 lakhs a decade ago, would now cost almost double that. Parents who plan their child’s education in advance and want to provide them with the best opportunities possible to invest their money in mutual funds (MFs), fixed deposits (FDs), and stocks. Amid all this, there still is a possibility of a financial shortfall. In such a situation, an education loan plays a critical role in bridging the gap between the shortfall and the necessary amount. The rising cost of education According to Forbes, education costs are rising at double the rate of inflation. In 15 years, the cost of an MBA is expected to rise from Rs 2.5 lakh to Rs 20 lakh. So, if a couple saves Rs 2,500 per month for 15 years at a rate of 12%, they would have saved about Rs 12.5 lakhs, ultimately needing some more funds if their child decides to pursue an MBA. Now, you must have some questions on your mind regarding the intricacies of availing of an education loan. We have tried to answer a few commonly asked questions to enhance your understanding. Apply for your dreams, get an education loan with us! 1. Who can apply for a student loan? The primary creditor is a student. A co-applicant may be a parent, partner, or sibling. 2. What is covered by a student loan? It includes the basic course fee and other costs such as accommodation, exam fees, equipment, and other miscellaneous expenses. 3. Who can avail of a student loan? It is available to students who wish to study in India or further their education outside the country. The overall sum available for studies in India and abroad differs from one bank to the next. 4. For what courses can the loan be availed? It is available as a full-time, part-time, or vocational course leading to graduation or post-graduation in engineering, management, medicine, hotel management, architecture, and other fields. 5. What are the eligibility criteria and documentation requirements? To be eligible for the loan, one must be an Indian citizen who has been accepted into a college or university that is recognized by a competent authority in India or abroad. The applicant must have completed his senior high school education.Some banks can provide a loan even before a student has been accepted to a university. The Reserve Bank of India (RBI) guidelines state that there are no upper age limits, but some banks may impose them. Additional documents such as the institution's admission letter, fee structure, and Class X, XII, and graduation (if applicable) mark sheets are required by the banks. The co-applicants income records, such as salary slips or income-tax returns (ITR), are also needed. 6. Is collateral required for financing the loan? Depending on the amount, banks will fund up to 100% of the loan. There is currently no margin money required for loans up to Rs 4 lakh. To study in India, the applicant must contribute 5% of the necessary funds. The needed margin money for international studies, on the other hand, rises to 15%. Banks may also need collateral for loans exceeding Rs 7.5 lakh. For loans up to Rs 4 lakh, financial institutions currently do not need any collateral or third-party guarantee. A third-party guarantee is required for loans between Rs 4 lakh and Rs 7.5 lakh. For loans exceeding Rs 7.5 lakh, a security deposit is required. According to the fee structure, when a loan application is approved, the banks send the funds directly to the college or university. 7. What is the rate of interest charged on the education loan? To set an interest rate, banks use the Marginal Cost of Funds Lending Rate (MCLR) which in India ranges anywhere from 7% - 8% plus a spread (about 1 - 2.5%). Applying with EduFund can get you interest rates starting at just 9%! 8. What is the process of repayment? The individual availing the loan for their education is responsible for repaying the loan. In most cases, repayment begins when the course is completed. Some banks also give you a six-month grace period after you get a job or a year after you finish your studies before you have to pay back your loan. The repayment period is usually between 5 and 7 years, but it may also be extended to 15 or 20 years depending upon the bank and the applicant. The bank charges a basic interest rate on a loan over the repayment period. The student's equated monthly instalment (EMI) burden for future repayments is reduced by paying basic interest during the course duration. 9. What precautions should one take while applying for student loans? When availing of a loan, one must consider bank fees such as transaction fees, pre-payment fees, late EMI payment fees, and so on. The majority of lenders charge a processing fee of the total loan amount. 10. Are there any tax benefits? The interest paid on the repayment is deductible under Section 80E of the Internal Revenue Code. This tax benefit is only available to people who are paying interest on a personal loan. The whole amount of interest charged is deductible from your taxable profits. This deduction can be taken for up to 8 years. There are no tax deductions available for the principal sum. 11. How can I apply for an education loan? You can visit the Education Loans page on the EduFund website and fill up a simple form. You will get all the details, along with guidance from experts in the field. FAQs What is an education loan? An education loan is a type of loan used for educational expenses such as tuition fees and education-related expenses like books, accommodation, living expenses, and much more. Education loans can be availed for studying only and one of the requirements is an offer letter from a reputed university/college. Who can apply for an education loan? The primary creditor is a student. A co-applicant may be a parent, partner, or sibling. How can I apply for an education loan? You can visit the Education Loans page on the EduFund website and fill up a simple form. You will get all the details, along with guidance from experts in the field. Conclusion Good education is extremely important in the present dynamic world. It not only boosts self-confidence in students but also equips them with skills that in turn help them lead their life in the best possible way. Taking a loan might look frightening but in the long run, it definitely pays off, provided the student is focused and makes the best of the opportunity. Also, since an education loan is a person's first loan, it aids in the creation of a good credit score. If you repay the loan on time and without defaults, it would be easier for you to obtain a home loan, car loan, or any type of loan in the future. CONNECT WITH OUR LOAN EXPERTS
UTI Floater Fund | Add to your child's education fund!

UTI Floater Fund | Add to your child's education fund!

Know all about UTI Floater Fund and the UTI Asset Management Company. UTI is one of the pioneers of the Indian Mutual Fund Industry. With an AUM of more than Rs 2.66 Lakh crore, the AMC is among the most trusted names in the mutual fund space. The UTI Mutual Fund offers products across asset classes.   Let us discuss the flagship product – UTI Floater Fund.  About UTI Floater Fund  Investment Objective – The investment objective of the scheme is to generate reasonable returns and reduce interest rate risk by investing in a portfolio comprising predominantly of floating rate instruments and fixed rate instruments swapped for floating rate returns.  Investment Process The scheme uses a systematic approach to debt investing, the “GIMS”, which is as follows:  Gate:  Encompasses issuer onboarding through rigorous analysis and research process  Aims to build the investment universe in line with investment policies  Investments:  Comprehensive fund strategy framework  Incorporates Fund Strategy and Style, Risk management Framework and Potential Risk Class Matrix  Risk Limits are central to strategy  Monitoring & Surveillance:  Monitoring and review of the investment universe, Market Data Analytics, Early Warning Signal (EWS) parameters, Use of external sources for added surveillance, Automation for increased efficiency  Portfolio Composition  The portfolio comprises 93.03% allocation in debt, and the remaining 6.69% is held in cash and cash equivalents.      Note: Data as of 30th November, 2023.  Source: Value Research  Top 5 Holdings for UTI Floater Fund   Name Instrument Weightage % National Housing Bank Debenture 7.79 Debenture 8.80 Canara Bank CD Certificate of Deposit 8.65 Reserve Bank of India T-Bills 182-D 29/02/2024 Treasury Bills 6.92 Small Industries Devp. Bank of India Ltd CP Commercial Paper 6.87 Kotak Mahindra Bank Ltd CD Certificate of Deposit 6.62  Note: Data as of 30th November, 2023.  Source: Value Research  Performance Since Inception  Period UTI Floater Fund CRISIL Low Duration Debt Index (%) CRISIL 10 Years Gilt Index (%) 1 Year 6.70 7.50 6.77 3 Years  4.45 5.43 2.93 5 Years 5.85 6.57 5.96 Since Inception 5.87 6.65 6.30  Note: Data as of 30th November,2023  Source: utimf.com  Fund Manager  Mr.Sudhir Agarwal is the Fund Manager and Executive Vice President & Fund Manager-Fixed Income at UTI AMC Ltd. He joined UTI AMC in 2009 after four years of experience. He is a CFA Charter holder from CFA Institute, USA, and holds a post-graduate Diploma in Management and a master’s in commerce. He is a Fund Manager managing various debt schemes.  Why Invest in UTI Floater Fund?  The scheme aims to generate accrual income by investing in high-quality debt and money market instruments, which are hedged using OIS swaps.  The scheme is positioned to capture yield movement in the 6 to 12-month segment.  The scheme maintains a moderate duration to reduce interest rate volatility.  Who Should Invest in UTI Floater Fund?  This fund is suitable for Investors  Who are seeking for reasonable income and liquidity over the near to short term.  Who are looking to diversify their fixed-income portfolio.  Ideal Time to Stay Invested   Ideal for investment with a time horizon of 6 to 12 months.  Conclusion  UTI Floater fund is an open-ended debt scheme predominantly investing in floating rate instruments. The portfolio of this fund is High-Quality accrual oriented and is positioned to capture yield movement in the short term. Thus, investors who want to park their money for a short period with low to moderate risk metrics can consider this fund for investment.  Disclaimer: This is not recommendation advice. All information in this blog is for educational purposes only.  Create a goal for your child's future
Difference between investing at 25 vs 35 years: Benefits of Investing Early! 

Difference between investing at 25 vs 35 years: Benefits of Investing Early! 

Ever wondered why advisors recommend early investing? Why it is more beneficial to start investing at 25 vs 35 years? Let's find out the benefits of early investing and why you should start today! Ah, the investing world. It's a world where market crashes call out your name and compound interest whispers sweet nothings, a place of late-night fears and possible fortunes. But there's no one-size-fits-all approach to navigating this world.  In general, investment is about more than just making money; it's also about safeguarding your future, accomplishing your objectives, and building financial security. Your quality of life and peace of mind may be greatly enhanced by it, even though there is some danger and continuing education is needed. Investing is essential for many reasons, impacting your financial future and overall well-being. There’s no age bar for investing at what age you should start investing, but the earlier you start, the better return you will get. Let’s understand investing with two different ages just to get a clear idea.  Your decisions at 25 will (and should) look vastly different from those at 35. So, let's grab a metaphorical cup of coffee and dive into the exciting differences between investing at 25 and 35.  Risk Tolerance:   At 25, You have less of a financial cushion, but you're flexible and young. So you have more time on hand, and hence, you have a bigger risk appetite. It's affordable for you to try new things, make errors, and grow from them skillfully.  But by the time you're 35, obligations start to pile up like driftwood down the riverside. The presence of children, mortgages, or elderly parents influences your risk tolerance. You're creating a nest egg for others who rely on you. This necessitates taking a more cautious approach and putting your capital protection first while aiming for respectable returns.  Investment Goals:  Your aspirations at 25 are as diverse as a kaleidoscope. Perhaps your savings are going toward that new gadget, a dream vacation, or a down payment on your first house. It is advisable to be flexible here to modify your investment plan as your goals change.  The goalposts change at 35. Your finances should take that into account as retirement becomes a tangible goal. You must begin planning and assembling a portfolio that will last you many years after your retirement.  Time Horizon:  Consider your investment horizon as a water body. When you're 25, retiring seems like an infinite stretch of ocean before you. You can now afford to take on greater risk while keeping a part of your portfolio for long-term investments. Time is on your side, and that's most precious, isn’t it?  The water starts to flow more quickly at 35. Retirement is drawing near, and still, you have a long way to go; the situation now calls for a more sensible strategy. You need resources and knowledge that support growth in addition to stability, a stable boat that can handle both calm seas and rough rapids.  Power of compounding:  Here, let us understand the power of compounding and the benefits of early investing with a comparison of two different investors with different age groups.  Age 25 years 35 years Standard Target Age 55 years 55 years Monthly SIP Amount ₹10,000 ₹10,000 SIP period 30 years 20 years Expected Return Rate 12% 12% Invested Amount 36,00,000 24,00,000 Wealth Gained 3,16,99,000 75,91,000  Total wealth 3,52,99,000 (Approx) 99,91,000 (Approx)  This comparison shows how important it is to start investing early as the difference in the investment period is just ten years, and the difference in total wealth due to that is more than 2,50,00,000.  Over a more extended period, the corpus upon retirement increases significantly, even with a smaller monthly SIP. The analogy also highlights how crucial it is to modify your investing approach following changes in your age and level of risk tolerance.   Conclusion Overall, investment is about more than just making money; it's also about safeguarding your future, accomplishing your objectives, and building financial security. Your quality of life and peace of mind may be significantly enhanced by it, even though there is some danger, like future unpredictability.  Remember that investing is a process rather than a destination. Begin modestly - make consistent investments, and, if necessary, seek professional advice. You can create a better and more secure tomorrow by managing your money now. 
Common mistakes when taking an education loan  

Common mistakes when taking an education loan  

If you've come to this page, it's likely that you're looking into getting an education loan to pay for your studies abroad.   Studying abroad may be a rewarding experience that presents a wealth of chances for both professional and personal development. However, there might be a considerable cost associated with getting a degree abroad. To pay for their foreign studies, many students turn to student loans, but there are a few typical mistakes that can be made when applying for loans.   High interest rates, trouble repaying loans, and other financial problems might be brought on by these errors. In this post, we'll go over some of the most typical mistakes students make when taking out student loans to fund their international studies and offer advice on how to prevent them. Apply for Education Loans Stay away from these blunders 1. Not reading the terms and conditions  When taking out an education loan for international study, one error to avoid is failing to carefully read and comprehend the loan's terms and conditions. To make sure you comprehend the interest rates, repayment alternatives, and any costs or penalties associated with the loan, it's crucial to read the tiny print and ask any questions you may have.  It's also crucial to take into account the whole cost of the loan, which includes the principal borrowed, interest, and any other expenses. After you graduate, make sure you have a clear repayment strategy in place and that the payments are manageable given your anticipated post-graduation salary.  Finally, only take out as much credit as you need. Only borrow what is needed to pay for education, housing, and other necessities after carefully evaluating your financial condition. Overextending your borrowing capacity could result in future debt that is unneeded and financial stress.  Rules for taking education loans Read More 2. An incorrect estimate of the cost  It's a big financial choice that needs considerable thought and preparation to take out an education loan to study abroad. Underestimating their costs is one of the most frequent errors that students make when taking out a student loan.  Students frequently concentrate on the upfront expenses while making plans to study abroad, such as tuition, living expenses, and travel expenses. Yet, there are other additional indirect expenses that can mount up quickly, including those for books, supplies, meals, and travel. Accurately estimating these fees can be difficult, particularly if the student has never lived in the nation previously.  Many issues can arise because of underestimating costs. First, the student might become broke while studying, which could be stressful and have an effect on their grades. After graduation, they might have to take on extra debt or work part-time, which would add to their financial load. Second, kids might not be able to go on trips or take part in extracurricular activities, which could limit their international exposure. Finally, individuals might be forced to make painful lifestyle compromises that could harm their general well-being.  Students should think about the following advice to avoid underestimating costs while taking out an education loan for studying abroad:  Do your homework: Students should thoroughly examine the cost of living in the country they intend to attend school. They should take into account all costs, including indirect ones like food, transportation, and entertainment.  Talk with professionals: Students should speak with education loan companies or advisors who assist them in organizing their finances for study abroad programs. These professionals can give them precise cost information.  Create a budget: Students should put together a sensible budget that accounts for all costs and distributes money appropriately. Also, they need to budget for any unforeseen costs that might occur while they are away from home.  Be conservative: It's better to estimate costs that are too high than too low. When evaluating costs, students should use cautious estimates and make backup plans.  https://www.youtube.com/watch?v=7Y0V6Z0lcJs 3. Dependence on a single lender  It's crucial to weigh all of your options and not rely entirely on one lender when taking out an education loan because doing so increases your risk of making mistakes that could wind up costing you money in the long run. There may be fewer options available, so it's critical to evaluate and contrast the many loan options to choose which one best suits your financial condition and academic objectives.  It is crucial to take into account the possibility of higher interest rates, undisclosed costs, flexible repayment options, and diversification when taking out a student loan. Interest rates may be higher than expected, and you may not be aware of the expenses involved with the loan. Flexibility in repayment is also crucial because different lenders could provide different levels of flexibility.   Finding a loan that offers good conditions and matches your financial situation might help you spread your risk and diversify your portfolio.  An overseas school loan is a substantial financial choice that has to be carefully thought out and planned. When submitting a loan application, students and their families can make a number of typical blunders that can lead to long-term financial troubles.   While taking out an education loan, some typical mistakes to avoid include not doing your homework on the lender, borrowing more than you need, forgetting to read the loan's terms and conditions, not checking into all your loan possibilities, and depending on just one lender. It is crucial to do extensive research on the lender and loan terms, figure out the precise amount of money you need, read and comprehend the loan's terms and conditions, investigate multiple loan options, and avoid relying on just one lender to avoid making these blunders.   Planning and being proactive are ultimately the keys to avoiding blunders when taking an education loan overseas. You can locate a loan that matches your needs and enables you to pursue your academic objectives without experiencing undue financial hardship by taking the time to properly investigate and weigh your options. Taking out a student loan can be a wise investment in your future if you approach it correctly and make the necessary preparations. FAQs Why does an education loan get rejected? There are several reasons behind loan rejection. It could be due to incomplete and fake documents, the co-applicant's poor credit history, low marks in school or college, low repaying capacity, etc.  Can I get an education loan with 50% marks? Yes, some banks do provide loans to students who have scored 50% marks in school. Connect with us here to know more! What are the conditions for an education loan? Some basic conditions for an education loan are: The applicant must be a student between the age of 16 to 35 years of age, must be an Indian citizen, must have a co-applicant, must have a conditional or confirmed admission letter for processing, must have the capacity to pay back the loan and a satisfactory credit history that meets the bank's requirements. TALK TO AN EXPERT
HDFC Hybrid Equity Fund for Your Child's College Savings

HDFC Hybrid Equity Fund for Your Child's College Savings

Know all about HDFC Hybrid Equity Fund and HDFC AMC in this article. HDFC Asset Management Company Ltd. (HDFC AMC) is one of India's largest mutual fund companies. It is among one of the most profitable asset management companies (AMC) in the country. The company manages assets of over Rs. 5.24 Lakh crores (excluding domestic fund of funds) as of 30th September 2023.  Let us talk about the consumer product – HDFC Hybrid Equity Fund.  About HDFC Hybrid Equity Fund Investment Objective   The investment objective of the scheme is to generate capital appreciation/income from a portfolio, predominantly of equity & equity-related instruments. The scheme will also invest in debt and money market instruments.  Investment Strategy  Equity –   The fund assets are predominantly invested in equity and equity-related instruments (65%-80%) and the balance in debt instruments. Equity strategy will aim to build a portfolio of companies across market capitalization.  While selecting stocks, the fund follows a bottom-up stock-picking strategy, focusing on reasonable quality businesses, and prefers companies available at acceptable valuations.  The scheme aims always to maintain a reasonably diversified portfolio.  Debt –  Credit quality, liquidity, interest rates, and their outlook will guide investment in debt securities. Here, duration management is based on the fund manager’s view on the interest rate outlook.  Portfolio Composition  The fund holds 67.04% equity, 31.06% debt, 1.01% real estate, and 0.89% in Cash and cash equivalents. The significant sectoral exposure is to Financials, which account for 24.84% of the equity portfolio. The top five sectors hold more than 50% of the equity portfolio.     Note: Data as of 30th November. 2023.                                                                 Source: Value Research                                                                                    Top 5 Holdings for HDFC Hybrid Equity Fund  Name Sectors Weightage % HDFC Bank Financial 7.31 ICICI Bank Financial 6.44 ITC  Consumer Staples 4.69 Larsen & Turbo Construction  4.60 Reliance Energy 4.12  Note: Data as of 30th November. 2023.  Source: Value Research  Past Performance of Regular Plan as of 30th November 2023.  Fund name 1Y 3Y 5Y 10 Y Since Inception HDFC Hybrid Equity Fund (%) 10.69 18.15 14.14 16.15 15.12 Benchmark Returns (%) 7.94 12.75 12.54 12.21 11.60 Additional Benchmark Returns (%) 8.47 17.12 14.45 13.91 13.19  Benchmark Composition – Nifty 50 Hybrid Composite Debt 65:35 Index  Source: Value Research  Fund Managers for HDFC Hybrid Equity Fund  The following fund managers manage the HDFC Hybrid Equity Fund.  Mr Chirag Setalvad (Since 2nd April 2007) has been managing Equity Assets for this fund.  Mr Anupam Joshi (Since 6th October 2022) has been managing Debt Assets for this fund.  Mr Dhruv Muchhal  (Since 22nd June 2023) is an Equity Analyst and Fund Manager for Overseas Investments.  Who Should Invest in HDFC Hybrid Equity Fund?  Investors looking to generate long-term capital appreciation/income by taking exposure to both debt and equity can consider this fund.  Why Invest in this Fund?  It helps to achieve twin objectives through one fund:  Growth of Capital by investing in Equities  Stability of Capital by investing in debt  Equities have the potential to create long-term wealth and beat inflation over the long term.  The debt component makes the fund comparatively less volatile than Equity funds.  Defined asset allocation between Equity and Debt  Benefits of equity taxation   Conclusion  The HDFC Hybrid Equity Fund is an open-ended hybrid scheme that has been in existence for nearly two decades. The fund has consistently performed throughout its existence. Also, it has delivered better risk-adjusted returns depicted by lower standard deviation and higher Sharpe ratio than the category. Hence, investors who wish to allocate their funds for capital appreciation with a moderate level of risk can consider this fund.  Disclaimer: This is not recommendation advice. All information in this blog is for educational purposes only. 
ICICI Prudential Equity & Debt Fund: Should you consider it for your child's higher education investment?

ICICI Prudential Equity & Debt Fund: Should you consider it for your child's higher education investment?

About ICICI Prudential Mutual Fund (AMC) and its flagship product, ICICI Prudential Equity & Debt Fund! ICICI Prudential Mutual Fund is the second-largest asset management company in India. With over Rs 5.8 Lakh crores of AUM, the AMC is among the most trusted names in the mutual fund space. The AMC offers products across asset classes.   Let us discuss the flagship product – ICICI Prudential Equity & Debt Fund.  About ICICI Prudential Equity & Debt Fund  Investment Objective The scheme aims to generate long-term capital appreciation and current income by investing in a portfolio that invests in equities and related securities and fixed-income and money market securities.  Investment Strategy – The scheme's equity exposure would range between 65% and 80%, and debt exposure would be maintained between 20%-35%  Equity:  The scheme shall use a blend of top-down and bottom-up approaches for stock selection. The scheme shall remain sector-agnostic in its investment approach. The scheme may also take derivatives exposure for portfolio hedging or any other permitted strategy to minimize downside risk. The net equity exposure includes foreign equity and units of equity mutual fund.   Debt:   The scheme intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. The scheme also invests in fixed-income securities issued by the government, quasi-government agencies, and corporate and multilateral agencies.  Portfolio Composition  The equity exposure is widely in the large-cap, which comprises 86.48%, and midcap and small-caps comprise 12.28% and 1.24%, respectively.       Note: Data as of 30th November 2023   Source: Value Research  Top 5 Holdings for ICICI Prudential Equity & Debt Fund Name Sector Weightage % NTPC Ltd. Energy  7.43 ICICI Bank Financial 7.01 Bharti Airtel Ltd. Communication 6.00 Oil & Natural Gas Corporation Ltd. Energy 4.18 Maruti Suzuki India Automobile 3.92  Note: Data as of 30th November 2023.  Source: Value Research  Performance of the Fund  ICICI Prudential Equity and Debt Fund has performed consistently throughout its existence. It has outperformed both the benchmark and the category in all time horizons.  Particular 1 Year 3 Year 5 Year 7 Year 10 Year ICICI Prudential Equity & Debt Fund 24.98 26.12 19.34 17.38 18.26 Hybrid: Aggressive Hybrid 19.26 16.99 14.51 14.17 14.80  Note: Performance of direct plan; Data as on 20th December 2023.  Source: icicipruamc.com  Fund Managers for ICICI Prudential Equity & Debt Fund Equity:  Mr. Sankaran Naren has 34 years of experience in this field. He has been managing this fund since Dec.2015 and other 12 funds in total.  Mr Mittul Kalawadia has 18 years of experience and has been managing this fund since Dec. 2020, with 4 other funds in total.  Debt:  Mr. Manish Banthia has 20 years of experience and has been managing this fund since Sep.2013, with 23 other funds in total.  Mr. Nikhil Kabra has 10 years of experience and has been managing this fund since Dec.2020, with 6 other funds in total.  Ms. Sri Sharma has 7 years of experience and has been managing this fund since April 2021 and the other 7 funds in total.  Who Should Invest?  The fund is suitable for investors  who seek diversification across debt and equity to benefit from accrual income as well as long-term wealth-creation solutions.  who wish to participate in the growth story of the equity markets with a portion of their portfolio invested in fixed-income securities could consider this fund.  Ideal Time Horizon  One should look at investing for a minimum of 3 years or more.   Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  ICICI Prudential Equity & Debt Fund is an aggressive hybrid scheme investing in equity and equity-related instruments with a small allocation towards debt. This scheme has outperformed the benchmark and the category average over all the periods of 1/3/5/7/10 years. Also, the scheme has delivered risk-adjusted returns better than the category average with slightly higher volatility. It has generated an alpha of 12.60% vis-à-vis the category average of 3.96% over the three years. Therefore, investors who wish to have exposure to both equity and debt by going aggressively can consider this scheme.  Disclaimer: This is not recommendation advice. All information in this blog is for educational purposes only. 
Education loan vs Self-finance. Which is better?

Education loan vs Self-finance. Which is better?

Choosing between an education loan vs self-finance for your child’s higher education is as tough as planning for a child's higher education. Most parents consider self-financing a viable alternative to pay for their child's education by liquidating valuable assets like land or FDs or borrowing from family, friends, and relatives. Such financial assistance is not available to all families. This is when a student loan can help. Let’s look at the benefits of student loans and their preference over self-financing. Self-financing  Taking out an education loan can be a financial burden for most students and parents, so they prefer self-financing as a viable option to avoid future debt. For one reason or another, students don't want to be burdened with EMIs when they can pay for everything at once. What exactly qualifies as self-financing? Self-financing may be preferred in the following circumstances: Paying for your own education Request for financial help from family, friends, or relatives Securing funding from a third party (excluding government banks or education loan providers) Education Loans In the debate between education loan vs self-finance, education loan has emerged as a strong competitor. The demand for student loans in India has increased steadily even during the pandemic. Collateral loans or Secured loans are offered based on the collateral provided. When a borrower pledges collateral to obtain a loan, the lender is guaranteed partial compensation for any outstanding loan debt. In case payments are not made on time, they can seize the mortgage and sell the property. The best mortgage loan providers in India are government and commercial banks Collateral Free or Unsecured loans do not require any collateral to be pledged. These loans are available to students with insufficient assets to pledge. However, when financing unsecured loans, lenders consider factors such as parental income, university ranking, and fees are taken into account when considering unsecured loans. Education loans vs Self Finance Conclusion Student loans come with several benefits, whereas self-funding has limited benefits. Self-funding your child's higher education can help reduce your child's financial burden. Saving for a child's higher education may be tricky, but if you plan early, you can start from a small amount and create a large corpus over time to protect your child's future. If you are facing difficulty in saving and do not know where to invest your savings, then download the EduFund app today and connect with experts to know how you can save and plan for your child's higher education. FAQs What is self-financing? Self-financing is when you pay for your education or tuition fees out of your own pocket without taking on any debt or liability. Which is better, a personal loan or an education loan? An education loan is better if the aim is to pay for your education expenses. A Personal loan is better if you need it for vacation expenses or personal needs. What type of loan is best for education? An education loan is the best type of loan to finance your education. It is designed for students who wish to better their lives through good quality education and upskilling. Education loans have relatively low interest rates, a moratorium period to take debt-free while studying, flexible tenures and much more. TALK TO AN EXPERT
Financial blunders to avoid in your 30s

Financial blunders to avoid in your 30s

You are young and healthy. You don't care about the future. You like revelry and parties. You want to spend today rather than save for tomorrow. After all, who knows what the future has in store for us? Everything is fine until one day you realize that retirement is not far away and you need to start saving for it. Money mistakes to avoid in your 30s 1. Saving, not investing Many people put money into savings accounts thinking that the 4 percent return will be enough to meet all future needs, and this could be one of your costliest mistakes, as such a low yield would not be able to beat inflation. After you are convinced about investing, the next step is to choose the right product or asset class. During this stage, most people are confused between stocks and real estate. History proves that stocks have outperformed real estate for a long time. 2. Not investing enough If you're making any of the above-listed mistakes, you're almost certainly not investing enough money or even not investing at all. That is one mistake that must be changed. The time value of money is very precious, and you need to get it working in your favor. For example, suppose you start investing Rs 10,000 per month at age 30 at an average annual rate of return of 12%; you'll have over Rs 3.52 crore* by the time you turn 60!  But if you wait till you turn 40, you'll have just over Rs 99 lakh* at age 60.  When it comes to investing, you want to start as early as possible. Additional read: US ETFs for child higher education 3. Not creating an emergency fund Sooner or later, you will be 30 years old, and your obligations, like household expenses, loan EMIs, children's school, fees, etc., are much more than when you were 20 years old. Therefore, it is vital to avoid the financial mistake of not having a financial plan in place for unanticipated emergencies such as job loss, unexpected home repair expenses, etc., by creating an emergency fund. Having an emergency corpus in place will make sure that you don't have to borrow too much or have your savings drop to zero to cover unexpected expenses. To be on the safer side, the emergency corpus should be large enough to cover expenses for 9 to 12 months. This may seem like a considerably large amount to put down. So you can start with a smaller amount, such as 3 to 6 months of expenses, and gradually add it. This will ensure that the size of your emergency fund keeps up with your income and expenses so that your finances are not overstretched. 4. Not buying insurance Increased responsibilities mean you have to plan for different scenarios to protect your family's financial interests. While an emergency corpus can take care of key emergency expenses, you also need to avoid making the financial mistake of not purchasing life and health insurance as part of your overall financial strategy. Insurance is essential to ensure your family's financial well-being in the event of a medical emergency or your untimely death. Purchasing term life insurance can provide financial security for your loved ones at a low cost in the event of your untimely death. In addition, purchasing health insurance can help protect your and your family's financial interests by covering medical bills if a family member becomes sick/ill and requires hospitalization. 5. Not having clear financial goals Sooner or later, you will be 30 years old, and you should already have some savings and, ideally, you should already be investing to reach your various financial goals. If you haven't set specific short-, medium-, or long-term financial goals yet, you still have some time left to get back on track if you start immediately. If you don't start investing based on goals, you will be like a ship without a rudder, and you cannot plan how to achieve the desired goal. This is the biggest money mistake to avoid in your 30s. Setting specific financial goals such as buying a car, planning early for your child's higher education, saving money for a down payment on a house, planning to save for retirement, etc., will help you plan the best course to reach your goal. Conclusion When securing your future financially, the most typical financial mistake we make is not starting early for our future goals. By saving and investing early, it becomes easier to achieve your goals. During your 30s, you are laying the foundation for your future financial plans. Avoiding these money mistakes in your 30s could help you to achieve your financial goals quickly. FAQs How can I be financially stable in my 30s? The best way to achieve financial stability in your 30s is to reduce your debt and increase your investments. Investing is the key to a good life and retirement. For example, suppose you start investing Rs 10,000 per month at age 30 at an average annual rate of return of 12%; you'll have over Rs 3.52 crore* by the time you turn 60!  How can I build my wealth in my 30s? The best way to build wealth is through investment. Systematic and routine investing can help achieve multiple financial goals such as retirement, a house, a child's education and a world tour. Suppose you start investing Rs 10,000 per month at age 30 at an average annual rate of return of 12%; you'll have over Rs 3.52 crore* by the time you turn 60!  What personal finance mistakes should everyone avoid? It's important to regulate your budget, spending and savings as soon as you get old enough to earn. Here are some tips that will help you avoid financial mistakes: Always spend within your means, pay your credit bills on time to avoid paying extra, create an investment plan to invest for the future and save for an emergency fund. TALK TO AN EXPERT
How to save for MBA in New Zealand for your child?

How to save for MBA in New Zealand for your child?

New Zealand is one of the ideal educational destinations for students pursuing their MBA degree as it offers a wide range of academic choices, MBA specializations, high-quality education, affordable fee structure, and sustainable job prospects.  An MBA in New Zealand is a wise career move as the globally recognized degree can get students the desired job in any part of the world. Moreover, graduating with an MBA from New Zealand may get your child a considerably higher income than their peers in other countries. Getting an education loan for MBA in New Zealand is easier than you think! Apply wth EduFund today Overview of MBA course structure and fees in New Zealand New Zealand is home to some of the finest educational institutions in the world for MBA courses. A full-time MBA requires 180 credits over 12 - 16 months or 60 credits every semester. Students can choose an MBA degree with or without specialization.  Average tuition fees for an MBA in New Zealand are between $26,000 - $37,000 with the highest course fee of $51,396 levied by the University of Canterbury and the lowest tuition fee of $36,800 levied by Manukau Institute of Technology.  The fee structure for an Indian student is between INR 11.4 lakhs to INR 31.3 Lakhs per year, depending upon the university one chooses.  The living expenses of the students depend upon their lifestyle. How to save for an MBA in New Zealand? Although studying for an MBA in New Zealand is affordable compared to the study cost in countries like the UK and the USA, parents do need to save and invest money so that their child can get the desired degree without the burden of an education loan.  Take the following steps to save for an MBA degree - 1. Research Remember the first step of any plan is the most difficult one as it requires thorough research. Gathering information is necessary so that you can create a foolproof plan that will prove fruitful in the long run.  you can also use the College Cost Calculator on the EduFund App to find out how much you will have to pay for your child’s MBA. This will help cut your research time.  Reasons to Study in New Zealand Read More 2. Create a financial plan Create a financial plan that will give direction to your ideas and encourage you to take the necessary steps toward your goal.  How to send your child to study in New Zealand debt-free? Read More 3. Take the help of professionals If you are a new investor, it might become a tad difficult or confusing to make the right decisions. Take the help of professionals because they have the necessary tools and resources to compile the required data and make the correct choices.  The saving experts on the Edufund App are adept at creating a customized financial plan and selecting the best investment opportunities through mutual funds, US ETFs, US stocks, and Digital gold. These experts, along with the Edufund investment calculators, will act as a guiding force and be with you every step of the way.   https://www.youtube.com/watch?v=uYlrsx9_yog&t=4s Top Universities in New Zealand Read More 4. Create a diversified portfolio Do not be dependent upon only one type of scheme. Instead, create a diversified portfolio that includes managed funds, savings accounts, term deposits, mutual funds, etc. The high-accuracy fund tracker on the Edufund App can monitor over one lakh data points and 400 financial situations to make solid suggestions about the most profitable investment schemes. a) Managed funds According to available data, one of the most common reasons for setting up a managed fund is to save money for a child’s higher education. It is feasible to put some money aside in a growth-oriented managed fund as early as possible. By the time the child is of age to study for an MBA in New Zealand, the parents will have saved a good chunk of the required money.  b) Savings accounts and term deposits If you cannot deal with the volatility of the growth fund or have started late and have a considerably shorter period for saving and investing, do not worry. The safest and the best possible mode of saving is by investing in a savings account and term deposits. It is better to add to the term deposits whenever they come up for renewal so that after a few years you can have a good amount of the money for your child’s MBA degree in New Zealand. c) Mutual funds The best investment scheme in the current market is investing through mutual funds. Take the help of SIP for regular investments as the estimated returns are between 12% to 15% in large-cap equity funds and 14% to 17% in mid-cap equities. The SIP calculator on the Edufund App can prove useful in determining the available returns from the chosen funds.  Conclusion International students, especially Indian students consider an MBA in New Zealand a good move as it gives them global exposure to cash in excellent career opportunities in any business sector.  Parents who have the necessary funds through saving and investing can easily send their child abroad and fulfill their dreams of better education, as compared to the parents who have to look at other means to fund their child's education. TALK TO AN EXPECT
Find out if college application fees are refundable

Find out if college application fees are refundable

Students often apply to more than one college because admission is not guaranteed in any of the institutions. Even if someone has good marks, there is no certainty that it’s enough to reach your dream university. Hence it becomes difficult to know where one might ultimately end up.  Let us first understand what is a college application fee and why colleges levy an application fee before answering the question - Are college application fees refundable? What are college application fees? College application fees refer to the money students must pay when they apply for admission to a college. It is considered negligible compared to the cost of studying in a college, which will include tuition fees and other related expenses.  Why does the college charge an application fee? The application fees help colleges to recover the cost of reviewing the applications. Colleges generally receive a fair number of application forms and it takes time, money, and effort to review each one of them. They have to hire specialists to go through the application forms and assess which of them are eligible for admission. Colleges levy application fees so that only the students who are serious about attending apply. If there were no application fees, every student would be applying to every college, and the overwhelming number of applications would increase the burden on the colleges. What is the average cost of application fees? The average cost of an application fee is between $44 to $50 in most parts of the world. Some of the prestigious colleges charge as high as $105 and $100. The average application fee in these prestigious colleges is $78.  In India, the cost of the application fee is between INR 0 - and INR 3,000. Some of the colleges charge as low as INR 100, whereas some of the prestigious colleges for specific courses have an application fee range between INR 2000 - and INR 3,000.  As students often apply to several colleges as backup, the total cost of application fees can cost them hundreds of dollars.  Why are students worried about application fees if it is such a small amount? Students have to apply to several colleges to increase their chances of acceptance and thus pay the application fees every time. This amount adds up and becomes quite a lot, especially for someone short on funds. Are college application fees refundable? College application fees are non-refundable regardless of whether a student has been accepted into the college or not.  A student can sometimes avoid the application fee by taking the help of fee waivers.  What are fee waivers? Application fee waivers refer to the process where the student does not have to pay the application fees because of special circumstances.  Who is eligible for college application fee waivers? Are college application fees refundable? Well, the answer is no, but students can take the help of fee waivers to avoid the application fee. The applicants must check with a recognized authority or high school counselor to find out if they are eligible for the fee waiver and under which category.  Some of the eligibility criteria for a college application fee waiver are Applicants who are eligible for the Pell Grant. Students who are eligible for the Federal Free or Reduced Price Lunch Program. Applicants in financial aid programs. Member of a family whose annual income is very low. Students living in foster homes. Applicants who are a ward of the state or are homeless or orphans. Members of a family who live in subsidized public housing or on public assistance. Colleges also accept NACAC, ACT, or SAT fee waivers. Additional read: Why India needs a Higher Education Savings Fund? Ways to lower the overall cost of college application fees Application fees can range from $25 to $60 and, the total cost of the application becomes quite high if the applicant is applying to several colleges. Follow the below tips to lower the overall cost of college application fees. 1. Narrow down the list of colleges Students are often tempted to apply to almost all the colleges they prefer, but it is not feasible. Narrow down your choices by shortlisting the colleges that you consider a good fit. Make sure that you meet the eligibility criteria of the college because it will increase your chances of admission.  2. Apply for SAT, ACT, or NACAC fee waiver If the applicant is eligible for any of these waivers, they will not have to pay the application fees. 3. Ask the college Call the admission office and explain your circumstances if you are unable to pay the application fees. If they consider your reasons justified, then the application fees might be waived.  4. Look for colleges without application fees Apply to some of the colleges without any application fees, as it will reduce the overall costs.  FAQs What are college application fees? College application fees refer to the money students must pay when they apply for admission to a college. It is considered negligible compared to the cost of studying in a college, which will include tuition fees and other related expenses. Are college application fees refundable? College application fees are non-refundable regardless of whether a student has been accepted into the college or not. What are fee waivers? Application fee waivers refer to the process where the student does not have to pay the application fees because of special circumstances. Conclusion The most important thing to do before applying to college is to talk to educational counselors to find out the best-fit college for your child. Talking to counselors will also clear all your doubts about college application fees. Download the EduFund app now to talk to the best education counselors in the country.
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