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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

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

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. 

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

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. 

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. 

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

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

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. 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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.

For individuals just starting to explore the money markets, understanding the difference between capital and investment, profit and interest, mutual fund, and SIP can be challenging. In this article, we will help you understand the difference between capital vs investment. https://www.youtube.com/shorts/l8Hyb77tkM8 Capital = Productivity While there are several definitions of this, one that makes the concept easy to understand is: Capital is anything tangible or intangible that increases productivity. Tangible capital comprises computers, manufacturing machines, factory space, etc. Intangible capital comprises elements like human resources, training, knowledge, etc. Investment = Higher Returns On the other hand, investment is when money is put into any instrument with the objective of getting higher returns. So you invest in stocks and equities to get better returns than just keeping your funds in the savings account. There are different views of what accounts for capital. Some experts say loans can also be considered capital as they can be used to purchase a TV from which people can learn skills and make themselves more productive, but that is stretching the analogy too far. https://www.youtube.com/watch?v=BD_LIbnYDFQ&t=2s What are you expecting your money to do? From the perspective where you have funds and you wish to put them to good use, you need to first and foremost define what you wish to achieve in the long term. Are you a salaried person earning a salary and looking to get good returns on your savings? Then you should be making investments in various financial instruments such as equities and mutual funds. On the other hand, if you are an entrepreneur or would like to be one, you may be keener on purchasing goods/items that will help you further your business. It is important to understand that when you purchase capital goods, they depreciate over time, that is their value goes down in the market over time, and you have to put further money into the purchase to maintain it and keep it running at optimum capacity and get the best levels of productivity from it. 1. Returns on capital Your capital can bring you direct financial gains only when you sell it. Hence there is a concept of capital gains tax: short term and long term. When you purchase an asset like residential property and sell it in less than a year, you will have to pay short-term capital gains tax on it equivalent to your existing income tax slab. If you sell the asset after one year of purchase, you have to pay a long-term capital gains tax of 15% on the asset’s appreciation since purchase. 2. Returns on investment Investments in the markets are done with the exclusive purpose of obtaining higher returns. Accordingly, you can get returns on investment in the form of interest, dividends, stock options or bonus shares, etc. These are usually declared annually, and you do not need to sell your investment to claim your benefits. Further, purchasing capital assets usually requires large monies, whereas investments can be done in small sums via SIPs and other regular investment methods. Of course, you can make a capital asset purchase with a loan and EMI as well. 3. Money for the future Now if you are looking to save money and build a corpus for your future, say for your child’s education overseas; you may be wondering what to do: build capital or make investments. You must seriously consider how many years you will need the funds. If you are looking at long-term returns, building a capital asset and then selling it when the value appreciates adequately is a good idea. But if your horizon is a short one, you are better off with investments in financial instruments. https://www.youtube.com/watch?v=uYlrsx9_yog&t=4s How you will be able to redeem it? Capital assets are usually difficult to liquidate but can work as collateral if you want to take a loan. Alternatively, when you make investments, these are more liquid in nature. You can disinvest in parts and the process is as easy as getting money out of your FDs.  So when you are planning to build your corpus, keep all of these points in mind. Consult an expert advisor to get the right plan TALK TO AN EXPERT

There is an ongoing debate on the topic of debt mutual funds vs FD to determine which is the better savings option. The normal mentality of a common person has been to invest in FDs as it is convenient and safe with fixed returns, but with time the thought process has shifted in favor of debt mutual funds as they offer good returns compared to FDs.  Let us discuss the topic in detail depending on different parameters to understand the best possible option from the investor’s viewpoint. https://www.youtube.com/watch?v=v4gmR-U_vHA Differences between debt mutual funds vs FD 1. Capital protection In terms of capital protection FDs have an advantage over debt mutual funds. According to the RBI directive, a bank depositor has a protection cover of a maximum of 5 lakh for both principal and interest in case the bank fails. If the depositor has FDs in different banks, then the protection cover will apply to all the banks separately.  Debt funds do not include capital protection as the investors are faced with credit risk and interest rate risk.  2. Safest Instruments FDs are the safest instruments for investible surplus as they are protected by RBI guidelines. In contrast, debt mutual funds are subjected to market risk as the underlying securities are exposed to market fluctuations and capital erosion.  3. Interest rates and returns The interest rates of FDs remain fixed until their maturity date, irrespective of any changes in the rate over that period. The expected return of the investment thus remains the same as before. Suppose an investor has opened an FD for two years at 6% per annum, then the rate will remain fixed throughout the whole tenure even if the bank has increased or decreased the rate in the interim period, and they will be paid the same amount of money which was calculated at the start of the investment.  In the case of debt mutual funds, the returns depend on interest income and capital gains from the underlying securities.  4. Rate of returns  In the case of debt mutual funds vs FDs, the estimated rate of returns for debt mutual funds is generally 7% - 9% and for FDs is an estimated 5% to 8%. Although FDs have a fixed return and debt, mutual funds do not come with assured returns.  5. Short-term holding period The average rate of return of FDs is considered better than that of debt funds in the short haul as the former manages to outperform the latter.  6. Long-term holding period When the holding period is long-term, then it is better to invest in debt mutual funds than FDs. Even if the interest rates do not fall within that period, the corporate bond funds would easily beat the FDs in the same period.  7. Inflation-adjusted returns In debt mutual funds vs FDs, the FDs usually have low inflation-adjusted returns, whereas the debt mutual funds show potential for high inflation-adjusted returns.  8. Dividend option There is no dividend option on FDs, whereas the answer is yes for debt mutual funds.  9. Taxation The taxation on debt mutual funds is lower than the fixed deposits. Despite the TDS deductions by the bank, the interest income from FDs is included in annual income and taxed according to a person’s tax slab.  In debt funds, the returns on investment within 3 years are treated as short-term capital gains. It is included in annual income and taxed according to the individual’s tax slab. The returns on investments after three years are treated as long-term capital gains and are taxed at 20% with indexation benefits.  10. Premature withdrawal In debt mutual funds, premature withdrawal is allowed with exit load/no load, whereas in FDs, it is allowed with a penalty.  Banks generally levy a penalty of 1% on premature withdrawal of FDs, and the amount is deducted from the effective rate of interest. In debt funds, except for the fixed maturity plan, which restricts redemption, all the other funds are allowed withdrawal by paying a minimum amount of exit load.  11. Cost of investment The banks do not charge a fee for opening or maintaining an FD account. On the other hand, mutual fund houses charge multiple fees like commissions, management fees, legal fees, etc., for operating the debt funds.  https://www.youtube.com/watch?v=7hXeSyWLiZ4 Conclusion If you want to know who is the winner in debt mutual funds vs FDs, then both have advantages and disadvantages. FDs have the upper hand in terms of capital protection, safe investments, income certainty, and investment cost compared to debt mutual funds. In comparison, debt mutual funds are better options in terms of premature withdrawal, dividend options, long-term investments, taxation, and rate of return. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Equity-linked savings schemes are the best options for parents whose investment objective is securing money for their child’s higher education. The best ELSS funds offer both stable and good returns and are preferred over other schemes due to their ability to beat education inflation and achieve higher returns in the long-term period.  Higher education has become very expensive and adding to it is the high rate of education inflation, which currently stands at 10% - 11%.  It is a painful situation for parents who want to give their children the best possible education for meeting their desired goals.  The solution is a tax-saving mutual fund also known as ELSS funds, which primarily invests in only equity and related instruments to generate the highest possible returns. These are extremely beneficial as they offer a unique combination of tax benefits and equity-linked market returns. What is an ELSS Fund? https://www.youtube.com/shorts/yFM2b8-Zd60 ELSS funds in the market for 2022 Some of the best ELSS funds based on their upside potential are Features of ELSS funds for a child’s higher education Lock-in period of 3 years. Can make 100% investment in equity instruments. Tax benefits under Section 80C of the Income Tax Act, 1961.  The expense ratio is a maximum of 2.5% which can be further reduced via direct investment from the fund house.  The ELSS fund provides capital appreciation. https://www.youtube.com/shorts/3-JVg9rhDbM Benefits of investing in ELSS funds for a child’s higher education 1. High returns ELSS funds generally offer a return of 13% - 15% if it is held for 12 – 15 years. The high returns are a boon for parents who have started investing for the primary purpose of their child’s higher education.  2. Tax Saving Parents who are looking at the best ELSS funds for investing in their child’s higher education find it beneficial as it serves the two-fold purpose of saving taxes and creating wealth. INR 1.5 lakh in such schemes is eligible for tax exemption. 3. Disciplined investment The ELSS funds have a minimum lock-in period of 3 years and this helps the fund managers to avoid the pressure of a bear market.  4. Uniformed investment As the cash for the ELSS funds is received from a large number of salaried professionals via SIP, it creates a uniform pattern of investment.  5. Professional management The ELSS funds are managed by experienced professionals who are dedicated to staying relevant even during changing economic and market conditions.  The investment counselors and wealth coach at the Edufund App offer professional services to interested parents in creating and managing a personalized financial plan through tax-saving ELSS funds that will pay effectively for their child’s higher education. The scientific fund tracker at their disposal is a key tool that can screen more than 1 lakh data points and 400+ financial scenarios to recommend the best ELSS fund that will prove beneficial for a child’s higher education.  6. Low investment The best part of investing in an ELSS fund is that parents can invest as low as INR 500 in SIP and INR 5000 as a lumpsum investment. This gives them the flexibility to adjust according to their pockets.   7. SIP option ELSS funds allow parents to invest via SIP and reap the benefits of investing small amounts at regular intervals.  8. The power of compounding ELSS funds are the best investment opportunity as they help parents to earn via their principal amount and also on the returns generated from that investment through the power of compounding.  9. Diversified portfolio Best ELSS funds are spread across several industries and market capitalizations. An investment in such schemes gives access to a diversified portfolio at a nominal expense.  10. Distribution of market risks A diversified portfolio of ELSS funds distributes the market risk and helps parents earn high returns for their child’s higher education. Conclusion The reason for choosing the best ELSS funds for a child’s higher education is to meet the financial objectives of an education plan. The schemes provide capital appreciation and tax benefits so that the money can be used to fulfill the purpose of giving a child the higher education he deserves. Consult an expert advisor to get the right plan TALK TO AN EXPERT