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The Public Provident Fund is a type of investment that encourages small amounts of savings. A life insurance policy is a type of insurance that provides protection from unfortunate occurrences like death. This article compares LIC and PPF and goes into detail about each financial product's features. Life Insurance Policy (LIC): What is it?  Corporation for Life Insurance, A state-owned insurance, and investment firm, is called LIC. The Life Insurance Corporation was founded in 1956. LIC was created post the Life Insurance of India Act was passed. It provides a way for people to get insurance to safeguard their loved ones against threats. A LIC policy is a contract that requires ongoing premium payments or a one-time payment to the insurance provider. Upon the LIC policy's maturity or the unfortunate passing of the policyholder, one will receive a lump sum payment. The people who need life insurance the most are those who have dependents who depend on their income. Consequently, the nominee will get the insured sum in the terrible event that a policyholder passes away. Therefore, LIC serves as a risk cover for the family of the policyholder. The policyholder will receive a lump sum payment if the insurance expires prior to the insured person's passing. The same might be used for the policyholder's retirement.  Section 80C of the Income Tax Act of 1961 allows for the tax deduction of insurance premium payments. However, the following prerequisites must be satisfied in order to claim a deduction:  If the policy is issued after April 1, 2012, the premium cannot be greater than 10% of the amount insured.  The premium paid for life insurance plans issued prior to April 1, 2012, should not be more than 20% of the amount assured. If the premium payment does not exceed 10% of the sum assured, the maturity amount from a life insurance policy is completely excluded from tax under Section 10 (10D). The sum the policyholder gets at the conclusion of the term is completely taxable if the premium is greater than 10% of the insured amount. Additionally, a TDS of 5% is applicable to the revenue portion of the maturity value of policies not covered by Section 10 (10D). TDS is only deductible if a life insurance policy's maturity value reaches INR 1,00,000. Additional read: Lumpsum vs SIP Public Provident Fund (PPF): What is it? The Indian government launched the Public Provident Fund program. In 1968, the National Savings Institute introduced it. This long-term post office savings program is backed by the government, so the returns are assured. Every three months, the Ministry of Finance releases the PPF Interest Rate. The yearly compounded PPF rate for the latest quarter, January 2022 through March 2022, is 7.1%.  According to Section 80C of the Income Tax Act of 1961, investments up to Rs 1.5 lakh each fiscal year are totally tax-free at the disposal of investors. Additionally, the proceeds from interest and maturities are tax-free as well. As a result, a person investing in PPF to save for retirement should not be concerned about taxes. Following is the table comparing LIC vs PPF LIC vs PPF People frequently mix up investments with insurance. Investments are for a secure future, whilst insurance is for risk protection. Having sound financial standing is vital for any investment. A person needs an emergency reserve for unforeseen costs, insurance to safeguard against terrible situations, and investments to ensure a solid financial future. Therefore, if a person has dependents who depend on their income, they must have insurance. The market offers a wide variety of insurance products, including term insurance, ULIPs, and endowment plans. A term policy and PPF investments, however, are advised for investors. In the most economical manner possible, it offers investment security and insurance safety. That being the case, the question shouldn't be LIC or PPF or LIC vs PPF. Which term policy works best with PPF should be the question instead. Conclusion There are insurance programs that also provide investing alternatives, including ULIPs. However, when it comes to expense ratio, they are on the upper end of the spectrum. They also have a number of unstated fees. Therefore, it is advised that people separate their insurance needs from their investment demands and purchase term coverage while investing in PPF. If there’s any confusion regarding this or any other financial matter, EduFund’s team of efficient financial advisors is always available to help you. TALK TO AN EXPERT

What is financial planning? Financial planning refers to acquiring information about your financial needs and then making a comprehensive plan to reach your financial goals with as much certainty as possible.   Financial planning considers the following factors: your current financial situation, what you wish to do with the money you will acquire, and how you are willing to invest your money to achieve your goal.   Thus, to define it in a sentence, we can say that financial planning is a means to achieve your future goals through proper development and implementation in accordance with some general guidelines.  Financial planning includes applying globally accepted management principles like planning, directing, organizing, and procurement of funds to invest and generate the maximum possible returns.   It helps you prioritize your investment decisions based on the urgency of your goals. People have both short-term and long-term goals.   For example, a short-term goal like buying a car in two years requires a much different planning approach than a long-term goal like buying a house in 10 years.   Both these aims have entirely different capital, returns, and financing requirements.  We can say that financial planning will lead to asset management and not the other way around. Once a plan is laid out, the implementation requires proper management of the available assets to generate maximum returns to fulfill your goals. Source: pexels Importance of financial planning  A significant advantage of a financial plan is that it helps you build financial security for yourself and your family as well can grow your assets and prepare for financial emergencies.   It helps you fulfill your dreams. Some reasons why you should consider building a financial plan:  1. Give a perspective on your financial goals Once you have a clear goal in mind, you will be able to employ financial literacy in a well-defined direction to achieve your goals.   With a plan, you also employ popular money-management techniques like the 50/30/20 rule (See here: Tips to follow for 50/30/20 Money Management Rule) and the (15-15-15 rule of investing), according to your needs.  2. Income management Through financial planning, you can prioritize monitoring a fixed budget for your expenses and moving towards investing a chunk of your income.  3. Growth of assets The ultimate purpose of a financial plan is to increase your asset base. By investing intelligently (with proper diversification and allocation), you will earn high returns and preserve your wealth, thus extending your investments and increasing your net worth.  Start your financial planning journey now so that you don't miss your goals by the margin.  Steps to follow when creating a financial plan 1. Create an emergency fund The first and foremost step towards saving is to create an emergency fund so that you do not want to disturb your financial routine if any emergency arises. There are many formulas to create an emergency fund. One way is to create an emergency fund for six months of your expenses. So, in situations like job loss, your emergency fund can take care of your expenses until you find another job. You can park your emergency fund in liquid funds to maintain liquidity.  2. Make a monthly budget Making a monthly budget will help you save money better, as you will be able to identify and analyze your income and expenses better. In this step, identify all your income first and then expenses, where you spend most of your money. Making a monthly budget will assist you in segregating income and expenses into different categories. To create a proper budget, you can follow the 50-30-20 rule. It says that 50% of your income should go towards your needs, 30% toward wants, and 20% for saving and investing. By following this rule, you can manage your monthly budget.  3. Spend wisely Spending wisely is as critical as making a budget. After making a budget, you can evaluate where to cut down your unnecessary expenses. And where you do not need to spend your hard-earned money. For example, you may have bought a monthly subscription to some adventure park, but you may not be utilizing it. So, you can cancel your subscription and save a lot of bucks. Also, don’t make quick decisions in buying things. Evaluate its cost and usage, then make a thoughtful decision. If you spend wisely, you can make a huge difference in future savings.  4. Set goals The next step is to set your short-term and long-term goals. Categorize your short-term and long-term goals based on their priority. And start saving for them. For example, sending your child for higher education after ten years is an example of a long-term goal, but paying for the school fees in the next 11 months is an example of a short-term goal. Identifying and prioritizing your goals is very crucial. Some parents could have a short-term goal to pay for a child’s higher education. So, it is essential to prioritize your goals based on time availability to achieve them.   5. Create a savings plan After deciding on your goals, create a savings plan for each goal. Try to save a fixed amount for each specific goal. Evaluate the cost of your goals; save and invest some money to quickly achieve your target. For example, if you want to send your child for higher education in the future, and the cost of IIM Ahmedabad in 2030 may cost Rs 60 lakhs, to save Rs 60 lakhs in the next eight years, you need to save and invest Rs 34000 every month in such asset class which can generate 14% annualized returns over the period. So, creating a savings plan for each of your targets is vital, such that you know how much you need to save and for how long. Before investing your money in any of the asset classes, please do thorough research on it.  6. Review the plan After creating the savings plan, try to review the same yearly and see whether the savings and investment are on track. If they are not aligned with your goals, review your savings plan and make the changes accordingly. FAQs What is the meaning of financial planning? Financial planning refers to acquiring information about your financial needs and then making a comprehensive plan to reach your financial goals with as much certainty as possible.   What is financial planning and why? Financial planning is a means to achieve your future goals through proper development and implementation in accordance with some general guidelines.  What are financial planning and its types? Financial planning is a means to achieve your future goals through proper development and implementation in accordance with some general guidelines.  There are three types of financial planning - cash flow planning, investment, and insurance planning. What are the steps in the financial planning process? Here are the steps in the financial planning process: Give a perspective on your financial goals Income management Growth of assets What is the main benefit of financial planning? The main benefit of financial planning is the ability to meet your short-term and long-term goals while building wealth for your future retirement. A good financial plan helps you achieve your goals with ease and gives you financial stability for the future. TALK TO AN EXPERT

Vanguard is an American registered investment advisor based out of Pennsylvania. It was established in the year 1975 by John Bogle. As stated by the company, the core purpose is, 'To take a stand for all investors, treat them fairly, and give them the best chance for investment success.'   This investment company offers a varied range of investment products to a varied clientele. Since then, the company has shown unbelievable growth in the assets under management (AUM). From 1975 to 2021, the AUM has increased from 1.7 billion USD to 7300 billion USD. It is the world's largest mutual fund provider and second-largest ETF provider, just second to BlackRock's iShares. It is to the credit of Vanguard that index investing and indirectly cheaper investing came to focus and rescue smaller retail investors.   Vanguard, unlike other investment companies, offers a unique governance and ownership structure.   The company is indirectly owned by fundholders, generating a feeling of oneness between the investors and the company.    The company bagged several accolades. To name a few  September 2021, Morningstar rated eight Vanguard ETFs as 5-star ETFs with risk-adjusted returns in the top 10% of their peer groups and 36 as 4-star ETFs with risk-adjusted returns in the top third.  In May 2021, Vanguard found itself on the list of top Roth IRA providers, according to Money magazine.  In March 2021, Thirteen Vanguard funds received Refinitiv Lipper Fund Awards. The awards honor mutual funds and firms with the best risk-adjusted performance over three-, five-, and 10-year horizons.  September 2020, Ten Vanguard funds were there in Morningstar's Thrilling 36 list.  According to the company, its investment strategy is as follows:  1. Investment Merit Avoid short-term fads and speculative investments. Instead, concentrate on asset classes that generate positive actual returns from dividends, interest, and other recurring cash flows.  2. Client needs The company bases its products on the client's needs for the short term and the long term.  3. Competitive advantage The company aims to outperform its peers through credible investment strategies.  4. Feasibility All products come outpost a feasibility study based on regulatory needs, risk constraints, etc.  5. Vanguard offers various services like Mutual funds ETFs Brokerage services Asset Management services Advisory services Retirement services Vanguard currently provides around 417 funds across the globe, out of which 210 are available in the United States and 207 are outside the U.S. market.  The company offers advisory services tailored to meet the client's needs. Vanguard offers personal advisory services to clients to better settle their obligations and increase wealth - mainly aimed toward HNIs (High Net Worth Individuals). Moreover, Vanguard offers automated advisory services powered by proven investment methodologies for providing investment advice. State-of-the-art Robo-advisors run it. Employees who invest through employer-sponsored retirement plans may benefit from Vanguard Participant Advice Services. Vanguard also offers institutional advisory services.    Vanguard offers two asset classes: Namely investor shares Admiral shares. Admiral shares are the asset classes with lower expense ratios but higher minimum investment requirements between $ 3000 to $ 10,000 per fund. Investor shares have higher expense ratios and minimum investment requirements.    Vanguard also provides quality investment options in active and passively managed funds. Vanguard actively managed funds have an AUM of 1.7$ Trillion, and 87% of their funds have outperformed peer funds. They also offer a meager average expense ratio of 0.18%. Some of the actively managed Vanguard funds are Fund NameTickerAsset ClassAverage annual return (5 years)Expense RatioU.S. Growth Fund Admiral Shares  VWUAXDomestic Stock - General21.61%0.28%Emerging Markets Select Stock Fund  VMMSXInternational8.74%0.85%Diversified Equity Fund  VDEQXStock - Large-Cap Blend  16.91%0.35%Long-Term Treasury Fund Admiral SharesVUSUXMoney Market  5.67%0.10% Vanguard pioneered the index investment funds   69% of their index investment funds outperformed their peer funds over the last ten years.   The AUM under index funds is around 6.3 $ trillion.   On average, the expense ratio of an index fund is approximately 0.07%.  Some examples of index funds are  Fund NameTickerAsset ClassAverage annual return (5 years)Expense Ratio500 Index Fund Admiral SharesVFIAXStock - Large-Cap Blend16.74%0.04Balanced Index Fund Admiral Shares  VBIAXBalanced  11.06%0.07%Vanguard Consumer Discretionary Index Fund Admiral Shares  VCDAXStock - Sector  19.17%0.10%Vanguard Developed Markets Index Fund Admiral Shares  VTMGX  International  8.48%0.07% Several of their mutual fund choices are available in ETFs, traded freely on the U.S. stock exchange.  The bottom line is that Vanguard has been an industry leader and has showcased top-notch corporate governance standards, which has pitched the IRA as a very trusted partner in investing.  FAQs What is Vanguard and how does it work? Vanguard is an American registered investment advisor based out of Pennsylvania. It was established in the year 1975 by John Bogle. What is the purpose of Vanguard? Vanguard is an investment company that offers a varied range of investment products to a varied clientele. Since then, the company has shown unbelievable growth in the assets under management (AUM). From 1975 to 2021, the AUM has increased from 1.7 billion USD to 7300 billion USD. How many funds does Vanguard have? Vanguard currently provides around 417 funds across the globe, out of which 210 are available in the United States and 207 are outside the U.S. market. 

ICICI Prudential Mutual Fund is the second-largest asset management company in India. With over Rs 3 lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMF offers products across asset classes.   Let us talk about the flagship product – ICICI Prudential Multi-Asset Fund. ICICI Prudential Multi-Asset Fund  1. Investment objective To generate capital appreciation for investors by investing predominantly in equity and equity-related instruments and income by investing across other asset classes.  2. Investment process   The Scheme proposes to invest across asset classes, in line with the asset allocation mentioned in the SID, with the aim of generating capital appreciation and income for investors. With this aim, the Investment Manager allocates the assets of the Scheme predominantly in Equity and equity-related instruments, and the remaining portion of the corpus in Debt, units of Gold ETFs/ETCDs/units of REITs & InvITs/preference shares.  3. Portfolio composition  The equity exposure is majorly in large-cap stocks at 54% and sectoral major exposure is to financial services and software. The top 5 sectors hold nearly 40% of the portfolio. The major exposure in the Debt sector is to Government backed securities like Government Bonds and T-Bills. Note: Data as of 30th Sep 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: ICICI Pru AMC  Top 5 Holdings ICICI pru multi-asset fund growth Name Sector Weightage % NTPC Ltd.  Public Sector Undertaking 8.29 Gold – 1kg - 1000gms Commodity 7.98 ICICI Bank Ltd. Financial Services 7.38 Bharti Airtel Ltd. Telecommunications 5.82 Oil and Natural Gas Corporation Ltd. Energy 4.89 Note: Data as of 30th Sep 2022. Source: ICICI Pru AMC  Performance over 20 years If you would have invested 10,000 at the inception of the fund, it would be now valued at Rs 4.69 lakhs. This fund has outperformed the benchmark in all time horizons.  Note: Performance of the fund since launch; Inception Date – Oct 31, 2002. Source: icicipruamc.com  The fund has given consistent returns and has outperformed the benchmark over the period of 20 years by generating a CAGR (Compounded Annual Growth Rate) of 21.40%  Fund Manager at ICICI Prudential Multi-Asset Fund Mr. Sankaran Naren, Mr. Ihab Dalwai, Mr. Anuj Tagra, Mr. Gaurav Chikane, and Ms. Sri Sharma are the fund managers of the Scheme. Mr. Sankaran Naren has been managing this scheme for 10 years and 8 months i.e., since February 2012. Mr. Ihab Dalwai has been managing this scheme for 5 years and 4 months i.e., since June 2017. Mr. Anuj Tagra has been managing this Scheme for 4 years and 5 months i.e., since May 2018. Mr. Gaurav Chikane (for ETCDs) Managing this fund for 1 year and 2 months since August 2021. Ms. Sri Sharma has been managing the scheme for around 1 year and 2 months i.e., since August 2021 Who should invest in ICICI Prudential Multi-Asset Fund?  Investors looking for  Long-term wealth creation solution.  Looking for portfolio exposure in multiple asset classes within the same fund.  Why invest in ICICI Prudential Multi-Asset Fund?  The scheme is suitable for investors who are looking for diversified exposure across asset classes  The portfolio works in a three-fold manner providing the agility of equity stock, regular income through debt instruments, and gold acts as a good hedge against inflation.  Horizon  One should look at investing for a minimum of 5 years or more  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The ICICI Prudential Multi-Asset Fund has a multi-asset allocation strategy that helps in portfolio diversification for an investor by providing the wealth creation potential through equity, regular income through debt, and gold acts as a hedge against inflation and market volatility. Disclaimer:This is not recommendation advice. All information in this blog is for educational purposes only. 

ICICI Prudential Mutual Fund is the second-largest asset management company in India. With over Rs 3 Lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMF offers products across asset classes.   Let us talk about the flagship product – ICICI Prudential Balanced Advantage Fund.  ICICI Prudential Balanced Advantage Fund  1. Investment objective To provide capital appreciation and income distribution to the investors by using equity derivatives strategies, arbitrage opportunities, and pure equity investments.  2. Investment process    The scheme uses an in-house asset allocation model to maintain an effective equity investment level to be above 65%. However, the actual equity level may go below 65% after considering the derivative exposure.  3. Portfolio Composition  The equity exposure is majorly in large-cap stocks at 67% and sectoral major exposure is to financial services that account for roughly one-third of the portfolio. The top 5 sectors hold nearly 40% of the portfolio.  Note: Data as of 30th Sep 2022. Source: ICICI Pru AMC  Top 5 holdings Name Sector Weightage % Reliance Industries Conglomerate 5.96 ICICI Bank Ltd Financial Services 5.00 Infosys Ltd. Information Technology 4.28 HDFC Bank Ltd Financial Services 3.72 Bharti Airtel Ltd. Telecommunications 3.19 Note: Data as of 30th Sep 2022. Source: ICICI Pru AMC Performance over 16 years If you would have invested 10,000 at the inception of the fund, it would be now valued at Rs 52,450. Note: Performance of the fund since launch; Inception. Date – Dec 29, 2006. The investment horizon is from 30th Dec 2006 to 10th Nov 2022. Source: icicipruamc.com  The ICICI Prudential Balanced Advantage Fund has given consistent returns and has outperformed the benchmark over the period of 16 years generating a CAGR (Compounded Annual Growth Rate) of 11.03%. Fund manager  The fund is ably managed by   Ihab Dalwai – is a Chartered Accountant and has been associated with ICICI Prudential since 2011.  Rajat Chandak – has completed his BCom (H) and is an MBA. has been associated with ICICI Prudential since 2008.  Sankaran Naren - is a B.Tech from IIT Chennai and MBA (Finance)from IIM Kolkata. He has been with ICICI Prudential since 2012.  Who should invest in ICICI Prudential Balanced Advantage Fund?  Investors looking for  Long-term wealth creation solution.  Looking for a dynamically managed portfolio.  Why invest in ICICI Prudential's balanced advantage fund?  This equity fund aims for growth by investing in equity and derivatives.  Get a smartly allocated portfolio according to market conditions.  Horizon  One should look at investing for a minimum of 5 years or more  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The ICICI Prudential Balanced Advantage Fund has a smart asset allocation strategy that helps in portfolio diversification for an investor. The Scheme is suitable for investors who are seeking to benefit from market volatility while maintaining fair equity allocation levels based on market valuations.  Disclaimer:This is not recommendation advice. All information in this blog is for educational purposes only. 

Earlier, we saw some of the best investment plans in India for five years. In this article, we will learn about some of the best investment plans in India for one year.   The investment options for periods as small as 1 year are largely restricted, mainly because the equity exposure has to be reduced considerably because of the volatility factor.   Given the short duration, choosing an investment with no risk is preferable. Here are some options to invest in. Best investment plans in India for one year 1. Debt funds  A debt fund is a mutual fund, an exchange-traded fund (ETF), or any other pooled investment product with fixed-income securities as the majority of the underlying investments.   Because debt funds have lower managing costs, their fees are lower than equity funds. Debt fund investors have the option to choose between passive and active products.   Debt funds are often known as credit funds or fixed-income funds. Investors seeking to conserve their capital and achieve low-risk income frequently invest in these funds.   Debt funds invest in a wide range of securities, each with its own set of risks the safest is the debt of the United States. Companies with a steady outlook and high credit quality issue investment-grade debt. High-yield debt, which lowers credit-quality enterprises mainly issues with good growth prospects, delivers higher returns but also carries a higher risk profile.   Debt funds are appropriate for people with short to medium-term investment horizons, where “short-term” refers to a period of 3 months to one year (this is the period we are talking about in this article) and “medium-term” refers to a period of 3 to 5 years.  2. Short-term funds   These are open-ended mutual funds with a maturity duration of 15 to 91 days depending upon the underlying instruments’ maturity period. These funds primarily invest in high-quality, low-risk assets. Liquid funds are an amazing choice for risk-averse investors and a great way to park your surplus money.   If you have a longer time horizon, say 2 to 4 months, you can invest in ultra-short-term funds. Short-term funds give higher returns than bank deposits, along with the provision of liquidity. Returns on these funds have historically ranged between 6 to 8%.  3. Low-risk funds  Low-risk mutual funds are those funds that have a small number of risk elements. These funds have a greater return guarantee since they primarily invest in government bonds for infrastructure, real estate, and other uses.   The low-risk investment portfolios of these funds ensure that the inflation rate is taken care of. The investment horizon is short because these funds invest many of their assets in debt securities.   Investors wishing to put their money in tax-efficient schemes other than fixed deposits can choose low-risk mutual funds.  4. Money market instruments  For the short term, money market instruments are great investment options. The main feature of these kinds of securities is that they can be converted to cash with ease, thereby preserving the cash requirements of an investor.   Trading of money market instruments is through certified brokers or a money market mutual fund. Some funds aim to keep their portfolio as diverse as possible via a good combination of various money market products to maximize the yield.   Some money market instruments are treasury bills, certificates of deposit, commercial paper, and banker’s acceptance. Source: Pexels Some funds available in India  1. ICICI Prudential Medium Term Bond Fund - Direct Plan The plan aims to maximize income while preserving the best possible return of yield, safety, and liquidity by investing in various debt and money market securities with varying maturities.  2. Nippon India Short-Term Fund - Direct Plan The fund invests in debt and money market instruments to shell out reliable returns for clients with a short investment horizon.   3. Aditya Birla Sun Life Low Duration Fund - Direct Plan Seeks to invest in high credit quality debt and money market instruments of short maturities.  4. Tata Money Market Fund - Direct Plan Investors looking for a safer alternative to liquid funds can invest in this fund. It has a moderate risk profile and invests in short-term money market instruments.  5. Aditya Birla Sun Life Corporate Bond Fund - Direct Plan The scheme’s investment goal is to create optimal returns while maintaining high liquidity by actively managing the portfolio and investing in high-quality debt and money market instruments.  6. ICICI Prudential All Seasons Bond Fund - Direct Plan Invests in various debt and money market securities with different maturities to achieve a balance of return and safety. FAQs Which SIP is best for 1 year? Debt funds Short-term funds Low-risk funds How can I grow my money in one year? There are many ways to grow and invest your money for one year. You can consider the following types of investments: Debt funds Short-term funds Low-risk funds Money market instruments Can I withdraw SIP anytime? Yes, investors can withdraw the amount or stop their SIP whenever they want. Does SIP have risk? Yes, investing in mutual funds via SIP does involve some level of market risk. Risk differs based on the type of investment. Connect with an expert advisor to get the right plan for you  TALK TO AN EXPERT

In the previous article, we learned about the difference between debt funds vs hybrid funds. In this article, we will look into the difference between ETF vs FOF ETF (Exchange-traded funds) An ETF (Exchange-traded fund) is a collection or portfolio of stocks. It aims to track market indices and thus imitate at least the same returns.  They are the choice of those people who wish to trade in open-ended funds. Like stocks, ETFs are also listed and traded on the stock exchanges.   Since trading happens on the stock exchanges, the value of the ETFs depends upon the demand and supply the price fluctuates during trading hours and can be less or more than the NAV (Net Asset value).  ETFs are of various types, like Bond ETFs, Industry-specific ETFs, Commodity ETFs, Currency ETFs, etc. The taxability of ETFs is dependent upon the holding period LTCG (Long-term capital gains tax) is applicable if the holding period exceeds one year. Gains up to Rs 1,00,000 are not taxed and for gains above Rs 1,00,000, LTCG is suitable at 10% without indexation benefits. For a holding period of fewer than 12 months, an STCG (Short term capital gains tax) of 15% is applicable.  For Gold ETFs, STCG is applicable if the ETF’s holding period is less than 36 months; and LTCG post that period. The applicable STCG is in accordance with your income-tax slab, and the LTCG is 20% with indexation benefits. Source: Pexels FOF (Fund of Fund)  A Fund of Fund (FOF) is a fund that invests in various mutual fund schemes from either the same or different fund houses. FOFs are personalizable to cater to the investment goals and appetite of the investors.   In other words, FOFs are open-ended mutual funds that contain different types of mutual funds. Unlike ETFs, FOFs are not tradeable on the stock exchanges. FOFs’ trading happens once per day; hence they are less liquid than ETFs; The price of FOFs is calculated at the end of the trading day.   The different types of FOFs are international FOFs, gold funds, and asset allocation funds. For Funds of Funds, STCG is applicable if the ETF’s holding period is less than 36 months; and LTCG is suitable for a holding period exceeding 36 months.   The applicable STCG is per your income-tax slab, and the LTCG is 20% with indexation benefits.  In cost terms, ETFs are cheaper than mutual funds as they are passively managed; thus, their expense ratio is usually less than 0.5%. On the other hand, FOFs are a bit costly in that they are actively managed funds, and thus the management costs are added to the usual fee. ParameterETFFOFStructureETF is a basket of instruments (stocks, bonds, etc.) that tracks an index. For example – An ETF may track the Nifty 50 Index.FOF is a collection of mutual funds. May or may not track an index.PriceETFs trade like stocks on the exchange and thus they have a price and not NAV.Do not trade on an exchange and are available at NAV (Net Asset Value) as applicable. The NAV can be computed either daily, weekly, or as may be decided by the AMC in the prospectus of the fund.LiquiditySince it is traded like a stock, it has high liquidity. Thus, trading volume is a key indicator here.Low liquidity than ETF.ExpenseThe cheapest form of investment as the expense ratio is very low (generally less than 0.5%)Costlier than ETFs and also actively managed mutual funds. TaxesThe taxation for different ETFs is different which are Gold ETFs, Equity ETFs, and others.FOFs are taxed as debt funds despite the asset class they hold i.e. equity or debt. Taxation For Equity Exchange Traded Funds – Tax implications are dependent on the number of years an investor holds the ETFs. If –Holding period <1 year - capital gains earned will be considered short-term capital gains (STCG) and tax will be 15% Holding period >1 year - capital gains earned will be considered long-term capital gains (LTCG) and tax will be 10% after a 1 lakh exemption. For Gold and other Traded Funds - Tax implications are dependent on the number of years an investor holds the ETFs. If –Holding period <3 years - capital gains earned will be considered short-term capital gains (STCG). Gains will be added to the investor's income and will be taxed as per the slab. Holding period >3 years - Capital gains earned will be considered long-term capital gains (LTCG) and tax will be 20% after indexation benefits. FOFs - Tax implications are dependent on the number of years an investor holds the ETFs. If - Holding period <3 years - capital gains earned will be considered short-term capital gains (STCG). Gains will be added to the investor's income and will be taxed as per the slab. Holding period >3 years - capital gains earned will be considered long-term capital gains (LTCG) and tax will be 20% after indexation benefits FAQs Is ETF and FOF are same? ETFs are a set of securities much like mutual funds. While FOF is a Fund of Fund (FOF) that invests in various mutual fund schemes from either the same or different fund houses. Is investing in FOF good? Investing in FoF can help you save tax. Investors pay no capital gains tax at the time of rebalancing by the fund manager. Is ETF tax-free? No, Tax implications on ETFs are dependent on the number of years an investor holds the ETFs. If –o Holding period <1 year - capital gains earned will be considered short-term capital gains (STCG) and tax will be 15% o Holding period >1 year - capital gains earned will be considered long-term capital gains (LTCG) and tax will be 10% after 1 lakh exemption. TALK TO AN EXPERT

Business Insider reports that “Indian household savings fell to the lowest level in 5 years. With inflation eroding the purchasing power, individuals tap their savings for survival after the pandemic.” Furthermore, "gross financial savings in FY22 stood at 10.8% compared to 15.9% in FY21." It demonstrates a clear saving pattern during the pandemic and erodes it soon after the ban was lifted. The importance of saving money aligns with the lifestyle and the goals you want to achieve within the decided time frame. 6 reasons to save money wisely From blowing off emergency cash requirements to ensuring financial freedom, there are plenty of reasons to save money. 1. Live a debt-free lifestyle Business Insider news says, “ An average Indian spends ₹14,500 a month on average on credit cards."  As per Statista, “In June 2022, nearly 121 million points of sale transactions were made via credit card in India.” It was pretty low in 2019-2020, owing to pandemic blues. Relying on credit cards for every big and small purchase may impact your savings. A credit card is a high-interest debt that one must pay monthly. Instead, save a portion of your income to savings. It will help meet discretionary expenses. 2. Budgeting for retirement As per the Financial Express report, “A survey by PGIM Mutual Fund and Nielson reveals more than 51% of the Indians participants have not planned retirement savings yet. “  Shockingly, children’s spousal security and lifestyle emerged as primary concerns rather than retirement.  The allocation of household income fell from 34% to 30% over the past two years. It impacted the saving corpus and budgeting. Around 89% of respondents living in Joint families find themselves more financially secure than nuclear families in India.  The report reveals that 42% of Indians lack any secondary income source or have any thoughts about it. One must consider inflation and market conditions before choosing a retirement saving plan to counter this. Employers must work towards awakening employees on saving more towards PF or separate retirement accounts. The key aim here is to push the employees towards ensuring financial freedom. 3. Paying effortlessly toward a child’s education dreams As per the Economic Times, “the average yearly fee for middle school is around ₹1.6 lakhs to ₹1.8 lakh/year. It totals up to ₹9.5 lakh to 12 lakh for Higher Secondary Education.” Parents must ensure nearly 10 lakhs for legal education in India.   Parents pay ₹25000/year towards sports, extracurriculars, and school transport alone. The education expenditure graph goes up to ₹20 lakhs after including general education for up to college years. EduFund lets parents plan and save for their child’s education with the help of financial experts. 4. Attending Medical Emergencies However, there are other emergencies too, like - urgent cash needs, cash to suffice sudden job loss and fulfill a time-sensitive requirement, and medical tops them all.   It is the worst situation to encounter when one goes cashless in medical emergencies. Illness does not wait. Thus, it is ideal to invest at least 30% of your income in medical insurance and savings. However, the statistics are good regarding health insurance coverage awareness. The Times of India says, “Every 3 in 5 Indians saw their health insurance premiums shoot by 25% or more in 2022.” It impacts savings and discourages one from taking life for granted. 5. Leaving behind a legacy Financial freedom must travel from generation to generation. “Around 72% of Indians do not know the potential ways to save and invest money.” They encounter confusion while walking up to the aim of financial freedom If you are a first-time investor, you can begin by investing in low-risk instruments. Dedicate only a small and comfortable income portion to long-term investments. Go for fixed-income generating opportunities that reduce the risk of losing your wealth. It will help you analyze the importance of saving money as a source of multiplying wealth sources. 6. Purchasing big-ticket items and investments Big-ticket items or lifestyle-enhancing instruments like- car and home investments require significant savings. Buying a home is one of the common dreams that Indians share. As per Indian Housing Report, “Only 69% of urban households have their own home. Rest are migrants.” It is far lower than in rural areas (95%). The reason is – Affordability. For a mortgage, you must ensure at least a 20% deposit. For that, you must save. If you could provide a 20% deposit for the mortgage, you could fetch affordable interest rates and use the rest of the savings for renovation or cover moving costs. Conclusion Saving is crucial for every life goal. EduFund is an ideal platform to save for your child and family’s future: Financial planning and goal management assistance College Cost Calculator to find future costs Variety of savings plans - mutual funds, US ETFs, and digital gold Educational counseling and financial guidance Consult an expert advisor to get the right plan TALK TO AN EXPERT

What are the advantages of investing in emerging markets? What do you mean by emerging markets? Let’s figure it out in this blog. What is an Emerging Market Fund? A country that is rapidly expanding in size and scope and is anticipated to be a developed country is called an emerging market. Around 25 economies across the globe have been labeled as emerging markets by the main index provider in the world, MSCI.  The four biggest emerging markets worldwide are, however, Brazil, Russia, China, and India. These markets have stronger growth rates, but there is also a bigger risk involved. For investors looking to invest in a single nation or through a diversified portfolio, there are also a lot of possibilities accessible. So by restricting exposure to a single stock or nation, investing in an emerging market fund enables investors to spread the risk. An investment vehicle known as an emerging market fund puts the majority of its money into securities from developing nations. These funds, which invest in emerging market debt or equities to create a diversified portfolio, are equity funds, debt funds, or exchange-traded funds (ETFs).  These funds provide growth investors with a variety of appealing and risky investment possibilities. In other words, emerging market funds look to take advantage of the chance for return presented by these economies. Investors will have the choice of both passive and active mutual funds that offer exposure across nations, industries, and market capitalization in the emerging markets category. An emerging market fund, for instance, might opt to allocate 20% of its resources to Russia.  Additionally, it might extend this to the banking, auto, petroleum, power, etc. sectors and concentrate more on large-cap firms in these industries. It can also decide which option is chosen for each nation. As a result, this fund provides diversity as well as a chance to profit from the expansion of the economy. Features of Emerging Market Funds The characteristics of emerging market funds include the following:  1. Diversification  Emerging market funds give investors a fantastic chance to expand their investment portfolio because they invest in equity and debt instruments across developing nations. This also makes it possible for investors to profit from the dynamics of emerging market markets.  2. Risk  It is always challenging to monitor the social and economic aspects of rising nations because the investment portfolio consists of securities from those nations. Acquiring accurate technical understanding regarding their market movements is likewise challenging. This increases the risk that developing market funds face. 3. Money management  Real-time market monitoring is necessary since it is critical to keep tabs on the developments in rising markets. Therefore, these investments are handled by fund managers, who are experts with years of experience.  4. Exposure  Emerging market funds invest in equities and debt instruments of different nations, allowing them to profit from their investment by adjusting to changing market conditions. This enables them to profit from the expansion of these nations' economies. Advantages of Investing in Emerging Market Funds 1. Geographical Expansion  The success of the Indian markets has an impact on the returns on an investor's portfolio which includes Indian stocks. However, including exposure to these funds broadens the investor's portfolio's geographic diversification. Additionally, it enables investors to profit from the economic cycles of developing nations.  2. Diversification of holdings  The secret to a successful investment portfolio is diversification. For investors with a higher risk tolerance who want to diversify their portfolios by investing in various emerging markets, there are emerging market funds. 3. Professional Management  A fund manager can invest an investor's money wisely with the aid of precise data, technical know-how, and international investing experience. Any new investor can use an emerging market fund to take advantage of this opportunity in emerging markets.  Disadvantages of Investing in Emerging Market Funds 1. Risk Inflation Risk: In emerging markets, rapid economic expansion frequently causes inflation.  Currency Risk: If investments are held in other nations whose currencies fluctuate against the US dollar, those investments will likewise vary.  Liquidity Risk: Securities trade less frequently in many international marketplaces. In such circumstances, it becomes challenging to acquire or sell a few particular shares. In other words, these markets lack the developed economies' levels of liquidity.  Political Risk: Political unrest and wars are more common in emerging nations, which puts pressure on the stock and bond markets. 2. Constant Surveillance  Investors must monitor a variety of market trends. Any country's market performance may be impacted by political, social, or economic changes. The performance of funds may be impacted as a result.  3. Lack of information  Fund managers might not consistently follow a foreign company. Investors consequently frequently make decisions based on incomplete information. Who should invest in funds for Emerging Markets?  Investors must feel at ease with the dangers of investing in emerging markets. By utilizing overseas markets, investing in this fund allows for portfolio diversification. Investors might also think about investing in these funds if they have the time to research international markets and have a working knowledge of financial instruments and their components. For growth investors looking for long-term investment opportunities across international markets, these products are excellent. Conclusion  Emerging markets are quite risky and take a long time to grow. For long-term investors with a high-risk tolerance, this fund is a good choice. But these don’t come without their limitations, so read the terms and risks involved before investing in any funds.  If you are still confused or need information regarding this, our team of efficient financial advisors is constantly available to guide and help you through the process. Consult an expert advisor to get the right plan TALK TO AN EXPERT

UTI is one of the pioneers of the Indian Mutual Fund Industry. With over Rs 2.4 lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMF offers products across asset classes.   Let us talk about the flagship product – UTI Focused Equity Fund. UTI-focused equity fund 1. Investment objective The investment objective of the scheme is to generate long-term capital appreciation by investing in equity & equity-related instruments of a maximum of 30 stocks across market caps. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.  2. Investment process   The investment strategy of UTI Focused Equity Fund involves investing in companies that have sustainable business models, are run by seasoned management, and generate high returns on invested capital. The fund primarily relies on bottom-up stock picking to create substantial long-term wealth.  3. Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 67% and sectoral major exposure is to financial services that account for roughly one-third of the portfolio. The top 5 sectors hold nearly 75% of the portfolio.  Note: Data as of 30th Sep 2022. Source: UTIMF  Performance over 1 year Note: Performance of the fund since launch; Inception Date – Aug 26, 2021 Source: utimf.com  The UTI-Focused Equity Fund has underperformed against the benchmark. This is mainly because the investment horizon is very short in this case as the fund is very new. Investors have to be invested for a longer investment horizon to see the fund outperforming the benchmark. Fund manager at UTI-Focused Equity Fund The fund is ably managed by Vishal Chopda. Mr. Vishal Chopda is the Vice President and Fund Manager in the domestic Equity Division of UTI Asset Management Company Ltd. Vishal joined UTI AMC in January 2011. In UTI he has worked for the past 7 years in the Department of Fund Management as Research Analyst. He has previously worked with CARE Ratings (Credit Analysis and Research Ltd). He is a CFA Charter holder from The CFA Institute, USA, and also holds a PGDM from Management Development Institute, Gurgaon. He has completed his B.E. from Mumbai University.  Who should invest in UTI Focused Equity Fund?  Investors looking to  Build their core equity portfolio for long-term wealth creation.  Own a portfolio of both large & mid-capitalization stocks.  Why invest in a UTI-Focused Equity Fund?  Investors looking for a high-conviction and concentrated portfolio backed by research expertise and risk assessment framework.  who have a long-term goal of wealth creation and balance an overall conservative portfolio construct.  Horizon  One should look at investing for a minimum of 5 years or more  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The UTI Focused Equity Fund is a relatively new fund with a focused portfolio holding. It is best for investors who are looking for a concentrated portfolio backed by research and want to create wealth in the long term by having a high-risk strategy in their portfolio.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

UTI is one of the pioneers of the Indian Mutual Fund Industry. With over Rs 2.4 lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMF offers products across asset classes.   Let us talk about the flagship product – UTI Core Equity Fund. About UTI Core Equity Fund  Investment objective The objective of the scheme is to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of large-cap and mid-cap companies.  Investment process   The UTI Core Equity Fund carries a top-down approach, going through short-term challenges and trading at below long-term averages. It focuses on stocks that are below their long-term averages or when it is cheap relative to market aggregates. Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 50% and sectoral major exposure is to financial services that account for roughly one-third of the portfolio. The top 5 sectors hold nearly 75% of the portfolio. Note: Data as of 30th Sep 2022. Source: UTIMF  Top 5 holdings Name Sector Weightage % ICICI Bank Ltd. Financial Services 5.50 HDFC Bank Ltd. Financial Services 5.28 ITC Ltd. Consumer Goods 3.58 Federal Bank Ltd. Financial Services 3.56 State Bank of India Financial Services 3.55 Note: Data as of 30th Sep 2022. Source: UTIMF  Performance over 13 years Below are the rolling returns of the fund since inception.  Note: Data as of 30th Sep 2022. Source: UTIMF The fund has given consistent returns and has outperformed the benchmark over the period of 13 years by generating a CAGR (Compounded Annual Growth Rate) of 11.42%.  Fund Manager  The fund is ably managed by V. Srivatsa. Mr. V. Srivatsa. He is an Executive Vice President, Fund Manager – Equity at UTI AMC Ltd. He is a BCom graduate, C.A., C.W.A., and has a PGDM from IIM, Indore. He has been with UTI AMC since 2002. Prior to joining UTI, he worked with Ford, Rhodes Parks & Co., Chartered Accountants for 2 years, and as Officer-Audit in Madras Cements Ltd. He started in UTI AMC in the Department of securities research covering varied sectors such as Information Technology, Capital goods, and metals.  Who should invest in UTI Core Equity Fund?  Investors looking to  Build their core equity portfolio for steady wealth creation.  Own a portfolio of both large & mid-capitalization stocks.  Why invest in UTI Core Equity Fund?  Large-cap stocks endeavor to provide stability & liquidity and mid-cap stocks can potentially generate superior returns for the portfolio.  The Fund maintains a well-diversified portfolio and avoids sector as well as stock concentration.  Horizon  One should look at investing for a minimum of 5 years or more.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The UTI Core Equity Fund is one of the oldest funds with a proven track record of 13 years and has delivered 11.42% CAGR consistently. Thus, it is best for investors who want stable returns with large-cap stocks and high growth potential with mid-cap stocks.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

Setting both long-term and short-term goals may seem like a waste of time to you. However, creating goals is crucial to the process of planning a career. Lack of planning can result in a chaotic future. Let's explore how to set short and long-term goals in more detail. What are short-term goals? Any objective that may be completed in less than two years is regarded as a short-term aim. Although this is a helpful generalization, it is ultimately somewhat arbitrary to decide where to divide goals into short-term and long-term categories. There are no appreciable differences between a goal completed in one and a half years and one completed in two years and a month. For your child's educational needs, a laptop or a phone can be a short-term objective. To save up for the expense and easily reach your objective, you can choose the appropriate finances and a time frame. You expect to complete this short-term objective in the next one to two years. To start a short-term goal for your child's educational aspirations, click here. What are long-term goals? However, anything that takes more than five years is seen as a long-term objective. Long-term goals can be things like saving for retirement and paying off a mortgage. However, using the terms "short-term" and "long-term" alone isn't always enough. Some individuals advise adding medium-term goals as well. Usually, it takes two to five years to accomplish these goals. The two temporal periods work well together while appearing to contradict one another. Short-term goals are shaped by long-term objectives. A long-term objective might be for your child to attend their ideal college. A long time horizon is typically necessary for long-term goals. The best course of action is to start saving for your child's college 10-15 years in advance. This offers you enough time to grow your money and make the necessary adjustments over the years to have the appropriate sum by the time your child leaves for college. How to set short and long-term goals Your perseverance will be the most important factor in your success, but it will be much harder to achieve your goals if you don't set them up properly. Your long-term and short-term objectives must satisfy the following requirements: 1. Write down your Goals An unstated objective is nothing more than a wish. Humans have a tendency to fantasize and believe in impossible things. In order to achieve our goals, we must take decisive action. You must put your long-term objectives in writing. Your aim will enter the physical world as a result of this one action. Your chances of success increase significantly just by doing this. It is a reminder now, after all. A prompt to set out and achieve that objective. 2. Your goals must be measurable  Have a deadline for completing your goals and a method to determine whether you have done so. You may even divide them into more manageable checkpoints you can gauge along the road. 3. Be realistic Your long-term objectives must line up with your aptitudes and competencies. If you can't sing or play an instrument, saying, "I want to win a Grammy Award", might not be the best objective for you. Consider your abilities as you create goals, keeping in mind your level of experience. 4. Take baby steps over time to achieve your goals  A deadline for your objective is not required, but it may help you keep on track to accomplish it. Divide a long-term goal into smaller objectives. Baby steps are preferable to a single, enormous leap. 5. Pair each goal with an action Consider enrolling in a book writing seminar or practicing writing one chapter every week for a month if your objective is to write a book. 6. Be flexible If you run into roadblocks that endanger your development, don't give up. Change your objectives properly, instead. Let's imagine you must continue working to support yourself, preventing you from enrolling in college full-time. You can enroll in part-time classes and complete your bachelor's degree in six or eight years, even if it might not be practical to do so in four years. Being flexible also involves having the ability to let go of objectives that no longer serve you and focus your efforts on achieving new ones. The most crucial element is constancy. You have to make your unique road map to success by setting long-term goals and then dividing them into smaller goals that are simple to achieve. Consult an expert advisor to get the right plan TALK TO AN EXPERT

UTI is one of the pioneers of the Indian Mutual Fund Industry. With over Rs 2.4 lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMF offers products across asset classes.   Let us talk about the flagship product – UTI Long-Term Equity Fund.  About UTI Long-Term Equity Fund  Investment Objective The primary objective of the scheme is to invest predominantly in equity and equity-related securities of companies across the market capitalization spectrum. Securities shall also include fully/partly convertible debentures/bonds.  Investment Process  The UTI Long Term Equity Fund carries a top-down approach for sector selection and a bottom-up for stock selection. It follows a blended style of investing with a preference for companies with consistent cash flow generation, healthy balance sheets,s and reasonable valuations.  Portfolio Composition  The portfolio holds the major exposure in large-cap stocks at 76% and sectoral major exposure is to financial services which account for roughly one-third of the portfolio. The top 5 sectors hold nearly 75% of the portfolio.  Note: Data as of 30th Sep 2022. Source: UTIMF  Top 5 holdings Name Sector Weightage % ICICI Bank Financial Services 8.53 HDFC Bank Financial Services 7.58 Infosys Information Technology 6.35 Axis Bank Ltd. Financial Services 4.58 Bharti Airtel Ltd. Telecommunications 3.73 Note: Data as of 30th Sep 2022. Source: UTIMF   Performance over 22 years  If you would have invested 10,000 at the time of inception of the UTI Long Term Equity Fund, it would be now valued at Rs 2.22 Lakhs whereas the benchmark (Nifty 500 TRI) would have fetched you Rs 1.89 Lakhs. Note: Performance of the fund since launch; Inception Date – Dec 15, 1999 Source: utimf.com   The UTI Long Term Equity Fund has given consistent returns and has outperformed the benchmark over the period of 22 years generating a CAGR (Compounded Annual Growth Rate) of 14.65%.  Fund Manager  The fund is ably managed by Vishal Chopda. Vishal Chopda is the Vice President and Fund Manager in the domestic Equity Division of UTI Asset Management Company Ltd. Vishal joined UTI AMC in January 2011. After joining UTI, he has worked for the past 7 years in the Department of Fund Management as Research Analyst. He has previously worked with CARE Ratings (Credit Analysis and Research Ltd). He is a CFA Charter holder from The CFA Institute, USA, and also holds a PGDM from Management Development Institute, Gurgaon. He has completed his B.E. from Mumbai University.  Who should Invest in UTI Long-Term Equity Fund?  Investors looking for  Equity Linked Savings Scheme (ELSS) that aims to generate long-term capital appreciation by primarily investing in equity and related securities.  a long-term wealth creation vehicle investment horizon. Why Invest in UTI Long-Term Equity Fund?  Provides tax deduction up to the limits specified u/s 80C of the Income Tax Act, 1961.  The fund attempts to invest in businesses having healthy return ratios, cash flows, and sound management, with an aim to provide superior risk-adjusted return  Horizon  One should look at investing for a minimum of 5 years or more  Lumpsum is a better way to invest in ELSS to avoid a prolonged lock-in period on your SIP investments.  Conclusion  The UTI Long Term Equity Fund is the oldest fund with a proven track record of 22 years and has delivered 14.65% CAGR consistently. Thus, suitable for even first-time equity investors who want to earn better risk-adjusted returns and avail of tax exemptions at the same time.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.