EduFund Blogs

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

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

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

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

Incorporated in the midst of the Global Financial Crisis, Quantum Mutual Fund has been in existence for approximately two decades now. The AMC offers a variety of mutual fund schemes, including equity funds, debt funds, and hybrid funds. Quantum Mutual Fund is known for its focus on active management and its commitment to providing investors with high-quality investment products.  In this blog, we will explore its flagship product – Quantum Long Term Equity Value Fund. Quantum Long-Term Equity Value Fund Investment Objective The primary investment objective of the scheme is to achieve long-term capital appreciation by investing primarily in shares of companies that will typically be included in the S&P BSE 200 Index and are in a position to benefit from the anticipated growth and development of the Indian economy and its markets.  Investment Process  The scheme follows a bottom-up approach for stock selection with disciplined research and investment process.  The scheme follows the thought process of investing in high-conviction stocks with long-term time horizons and hence has a lower portfolio turnover ratio.    Portfolio Composition The portfolio is biased towards large-cap stocks, with 86.49% of the funds allocated to large-cap stocks and the remaining 13.51% to mid-cap stocks. Significant sectoral exposure is to Financials, which accounts for more than one-third of the portfolio. The top five sectors hold more than 82% of the portfolio.  Data as of 31st July 2023Source: Value Research  Top 5 Holdings for Quantum Long-Term Equity Value Fund Name Weightage % HDFC Bank Limited 9.62 ICICI Bank Limited 6.80 Infosys Limited 4.78 State Bank of India Limited 4.73 Eicher Motors Limited 4.34 Note: Data as of 31st July 2023. Source: Value Research  Performance for Quantum Long-Term Equity Value Fund Particulars 1 Year 3 Year 5 Year 7 Year 10 Years Quantum Long Term Equity Value Fund 16.78 23.68 11.13 10.96 14.60 S&P BSE 100 TRI 13.08 22.20 12.76 13.94 15.21 Equity: Value Oriented 22.04 28.41 14.25 14.68 19.06 Note: Returns in % as of 10th August 2023. Source: Value Research  Since its inception, the fund has generated a CAGR (Compounded Annual Growth Rate) of 13.56%. Talk to an expert Fund Manager The scheme is co-managed by Mr. George Thomas & Mr. Christy Mathai.  Mr. George Thomas has more than six years of experience and has been managing this fund with effect from 01st April 2022.  Mr. Christy Mathai has approximately seven years of experience and has been managing this fund with effect from 23rd November 2022.  Who Should Invest in Quantum Long-Term Equity Value Fund?  The fund is suitable for investors who are seeking   Long-term capital appreciation.  An investment opportunity that invests primarily in equity and equity-related securities of companies in the S&P BSE 200 index.  Why Invest in this Fund? The fund uses the bottom-up approach for stock selection to minimize risk.  It follows disciplined research and investment process.  It has a low portfolio turnover.  It holds cash when stocks are overvalued and does not expose itself to derivatives.  It has one of the lowest expense ratios in the industry.  Time Horizon One should look at investing for at least five years or even more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion: The Quantum Long-Term Equity Value Fund is an open-ended fund that allows investors to invest in undervalued equities. Although it has underperformed its benchmark over the long term, the fund has shown outperformance in the recent past. Thus, it will be important to monitor how the fund performs in the upcoming future. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

As per SEBI regulations, a liquid fund is one that invests in debt and money market instruments with a maturity of up to 91 days only, such as Certificate of Deposits, Treasury Bills (T-bills), Commercial Paper (CP), etc. The aim of these funds is to provide capital preservation/safety along with reasonable returns. Advantages: High Liquidity: The main aim of such funds is to provide liquidity for their investors. So, investors can redeem their units at any time. Low Exit Loads: These funds have exit loads of less than 7 days. So, you can redeem your funds after 7 days without any penalties. Indexation Benefit: Long-term taxation will be calculated based on inflation. Only returns over inflation will be taxable. Better Returns: Investors can enjoy better returns than their regular savings bank account by investing in these funds. Top 5 liquid mutual funds S.No.Fund Name3-Yr Annualized Performance1Quant Liquid Plan Growth Option Direct Plan5.01 %2IDBI Liquid Fund Direct-Growth4.27 %3Mahindra Manulife Liquid Fund Direct Plan-Growth4.23 %4Edelweiss Liquid Fund Direct-Growth4.23 %5Franklin India Liquid Super Institutional Plan Fund Direct-Growth4.22 %Note: Data as of July 25, 2022Source: Morningstar 1. Quant Liquid Plan Fund analysis: The fund is the top-performing fund in its category. The fund has a low-risk profile. The fund has outperformed the category and the benchmark. The fund has invested in high-quality bonds i.e., AAA-rated. The fund can be used to park your emergency funds. ProsConsHigh liquidity. Invested in AAA quality bonds.High expense ratio.Note: CRISIL Liquid Fund BI Index Start Investing 2. IDBI Liquid Fund Fund analysis: The investment objective of the Scheme will be to provide investors with a high level of liquidity along with regular income for their investment. The Scheme will endeavor to achieve this objective through an allocation of the investment corpus in a low-risk portfolio of money market and debt instruments with a maturity of up to 91 days. The fund has outperformed the category over the period. The fund has invested 100% in AAA-rated bonds. The fund is a good alternative to fixed deposits (F.D.) ProsConsLow Expense Ratio.Attractive risk-to-reward ratio.Fund has underperformed the benchmark over 5-Yr trailing returns.Note: CRISIL Liquid Fund BI Index Start Investing 3. Mahindra Manulife Liquid Fund Fund analysis: The Scheme seeks to deliver reasonable market-related returns with lower risk and higher liquidity through a portfolio of money market and debt instruments. The fund has outperformed the category average over different trailing periods. The fund holds high-quality debt and money market instruments. ProsConsFund has outperformed the category average over different trailing periods. Low expense ratio.Fund has underperformed the benchmark over 5-Yr trailing returns.Note: CRISIL Liquid Fund BI Index Start Investing 4. Edelweiss Liquid Fund Fund analysis: The fund’s objective is to provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through a portfolio of money market and debt securities. The fund has invested 100% in debt and money market instruments that have the highest rating i.e., AAA-rated bonds. The fund has delivered consistently better returns than the category average. ProsConsHigh liquidity. Invested in AAA quality bonds.Fund has underperformed the benchmark over 3-Yr & 5-Yr trailing returns.Note: CRISIL Liquid Fund BI Index Start Investing 5. Franklin India Liquid Fund Fund analysis: The fund’s objective is to provide current income along with high liquidity. The fund has relatively high volatility. The fund is a good alternative to bank accounts along with high liquidity. The fund has invested in AAA-rated bonds and money market securities. ProsConsInvested in AAA quality bonds. High liquidity.Relatively high volatility.Note: CRISIL Liquid Fund BI Index Start Investing Features of Liquid Mutual Funds Liquid mutual funds are a type of mutual fund that primarily invests in short-term, highly liquid money market instruments such as government securities, certificates of deposit, commercial paper, and treasury bills. They are designed to provide investors with a safe and convenient avenue to park surplus funds for the short term. Here are some key features:  Liquidity: Liquid funds offer high liquidity, allowing investors to redeem their units quickly with minimal impact on the net asset value (NAV).  Low Risk: These funds invest in low-risk securities, making them relatively safer compared to other mutual fund categories. However, they may not offer high returns.  Low Investment Minimums: Many liquid funds have low investment minimums, making them accessible for both individual and institutional investors.  Steady Returns: While liquid funds aim to generate steady returns, the focus is on capital preservation and liquidity rather than aggressive growth.  Taxability: The gains from liquid mutual funds are subject to taxation based on the investor's holding period. If the investment is held for up to three years, the gains are treated as short-term capital gains and taxed at the investor's applicable income tax rate. If held for more than three years, they are considered long-term capital gains and taxed at a flat rate with indexation benefits. Who are these Funds suited for? Corporates: Businesses often use liquid funds to manage short-term cash surpluses efficiently, earning a return on excess funds.  Individuals: Liquid funds are suitable for individuals who want a safe alternative to traditional savings accounts and are willing to compromise slightly higher returns for greater liquidity.  Emergency Funds: They can serve as a part of an individual's emergency fund, providing quick access to funds without the risk associated with other investments.  Major Advantages Safety and Liquidity: Liquid funds offer a balance between safety and liquidity, making them an excellent choice for short-term goals and funds you may need at short notice.  Better Returns Than Savings Accounts: While liquid funds might not offer the same interest as savings accounts, they generally provide better returns due to their investments in higher-yielding money market instruments.  No Exit Load: Most liquid funds have no exit load, allowing investors to redeem their units without incurring any additional charges.  Tax Efficiency: The tax treatment for gains from liquid funds can be more favorable than other fixed-income investments, especially for investors in higher tax brackets.  Professional Management: Liquid funds are managed by professional fund managers who have expertise in managing short-term investments, enhancing the chances of achieving consistent returns.  Conclusion: Liquid funds are a good alternative to bank accounts. Investors can also park their emergency funds in these mutual funds because of their high liquidity. This results in better returns than a regular savings bank account as the exit load is maximum for 7 days only. Talk To An Expert FAQs Which mutual fund scheme is highly liquid? Liquid mutual funds are highly liquid as they primarily invest in short-term money market instruments. They offer quick and easy redemptions with minimal impact on the fund's net asset value (NAV). Which is the safest liquid fund? Liquid funds, by nature, aim for safety and stability. Funds from reputable asset management companies like HDFC Liquid Fund, ICICI Prudential Liquid Fund, and SBI Liquid Fund are generally considered safe due to their investments in high-quality, short-term instruments. However, no investment is entirely risk-free, so research and diversification are still important. What liquid fund is best? Determining the best liquid fund depends on your specific financial goals, risk tolerance, and investment horizon. Some reputable options included ICICI Prudential Liquid Fund, Aditya Birla Sun Life Liquid Fund, and Nippon India Liquid Fund. However, it's crucial to research the latest performance, expense ratios, and other factors, and consider consulting a financial advisor before making a decision. Disclaimer:This is not recommendation advice, use it for educational purposes only. Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of the future performance of the schemes

Best dividend-paying mutual funds are one of the types of mutual funds in India that invest in equity and equity-related instruments that can yield a high dividend to its shareholders. These companies have strong fundamentals as they are profit-making companies. Only profit-making companies can distribute dividends to their shareholders. Having said that the primary intention of these companies is to provide regular income and capital appreciation to their investors. As per SEBI (Securities and Exchange Board of India) norms, a dividend yield fund invests at least 65% of its portfolio in dividend-yielding instruments. Features of Dividend-Paying Mutual Funds  Dividend-paying mutual funds offer several features that make them distinct from other types of funds:  1. Income Generation: These funds focus on stocks or securities of companies known for consistent dividend payments, aiming to provide a steady income stream to investors.  2. Diversification: Dividend-paying mutual funds typically invest in a diversified portfolio of dividend-yielding stocks, reducing the risk associated with relying on the performance of a single company. 3. Reinvestment Options: Investors can opt for dividend reinvestment plans (DRIPs), where the dividends received are automatically reinvested to purchase additional fund shares, potentially compounding returns over time.  Start Investing in Mutual Funds Taxability  Dividend income from mutual funds can have tax implications:  1. Taxation of Dividends: Dividend income received from mutual funds is generally taxable as per the investor's income tax slab. However, dividends from equity-oriented funds might be tax-free up to a certain limit due to the Dividend Distribution Tax (DDT) paid by the fund.  2. Dividend Distribution Tax (DDT): Prior to Budget 2020, mutual funds were subject to DDT before distributing dividends. Now, investors are liable to pay tax on the dividend income received as per their tax slab.  Who are these funds suited for?  Dividend-paying mutual funds can be suitable for:  Income-Oriented Investors: Individuals seeking regular income from their investments, such as retirees or those looking for a supplementary income source.  Conservative Investors: Those who prefer a lower-risk investment option with potentially stable returns, as dividend stocks tend to be established companies.  Major Advantages of Dividend-Paying Mutual Funds Steady Income: Dividend-paying funds can offer a reliable income stream, making them appealing to investors who rely on investment income.  Potential for Growth: Some dividend-paying companies might also experience capital appreciation, providing growth potential alongside regular income.  Diversification: By investing in a range of dividend stocks, these funds offer diversification benefits, spreading risk across various industries and sectors.  Compounding Effect: Dividend reinvestment can harness the power of compounding, where dividends are reinvested to potentially generate higher returns over time.  Advantages of the best dividend-paying mutual funds These funds have the potential to regular income through dividends. These funds invest majorly in strong companies having strong fundamentals. These funds provide equity exposure with lower risk. 5 High Dividend Mutual Funds S.No.Fund Name3-Yr Annualized Performance1Templeton India Equity Income Fund Direct Payout of Inc Dist cum Cap Wdrl22.43 %2IDBI Dividend Yield Fund Direct Payout of Income Distribution cum Cap Wdrl18.83 %3Sundaram Dividend Yield Fund – Direct Plan Half Yearly Payout of Income Dis cum Cap Wdrl18.59 %4Aditya Birla Sun Life Dividend Yield Fund Direct Plan Payout Inc Dist cum Cap Wdrl17.44 %5ICICI Prudential Dividend Yield Equity Fund Direct Payout Inc Dist cum Cap Wdrl17.30 %Note: Data as of July 26, 2022Source: Morningstar 1. Franklin Mutual Fund The scheme seeks to provide a combination of regular income and long-term capital appreciation by investing primarily in stocks that have a current or potentially attractive dividend yield, by using a value strategy. The fund has outperformed the category average over different tailing period returns. The fund has invested majorly in large-cap companies (81.41%) followed by mid-cap (17.77%) and small-cap companies (0.82%). ProsConsAttractive risk-to-reward ratio. The fund outperformed the category average when the market was falling & rising.High volatility than the category average. Invest Now 2. IDBI Mutual Fund Fund analysis: The fund’s aim is to provide capital appreciation and/or dividend distribution by investing predominantly in dividend-yielding equity and equity-related instruments. The fund has a beta of 0.78 indicating that the fund performance is less relative to the market. The fund follows a blended style of investing which means that the fund has invested in both value and growth stocks. The fund has outperformed the category average marginally. ProsConsLess volatile than the category average. Fund has outperformed the category average when the market was falling.Fund has underperformed the category average when the market was rising. Invest Now 3. Sundaram Mutual Fund Fund analysis: The fund has given consistent performance over the long-term period. The fund has a well-diversified portfolio, spread across sectors except for real estate. The fund has invested across market capitalization companies i.e., large-cap (84.79%), mid-cap (13.42%), and small-cap (1.79%) companies. The fund has also invested some portion in the debt category also. ProsConsFund has outperformed the category average when the market was falling. Well-diversified portfolio.High expense ratio. Invest Now 4. Aditya Birla Mutual Fund Fund analysis: The fund has a beta of 0.91 indicating that the fund’s performance is closely related to the performance of the market. The fund has invested across market capitalization, but the major investments are in large-cap (60.07%) followed by mid-cap (26.37%) and small-cap (13.55%) companies. The fund has a high risk (measured by standard deviation) than the category average. ProsConsWell-diversified portfolio. Fund has outperformed the category average when the market was rising.High expense ratio. Invest Now 5. ICICI Prudential Mutual Fund Fund analysis: The fund’s objective is to provide medium to long-term capital gains and/or dividend distribution by predominantly investing in a well-diversified portfolio of equity and equity-related instruments of dividend-yielding companies. The fund has given reasonably good performance over the period. The fund follows a blended style of investing, which means that the fund has invested in both value and growth stocks, and has invested across market capitalization companies. The fund has a higher risk (measured by standard deviation) than the category average. ProsConsLow expense ratio. Fund has outperformed the category average when the market was rising.The fund underperformed the category average when the market was falling. Invest Now Conclusion: Investors looking for regular income and capital appreciation from the stock market should consider such funds as part of their portfolios. FAQs Which mutual fund gives monthly dividends?  Ans. Sundaram Dividend mutual funds – Direct Plan-Growth - NAV: INR 91.29 Expense Ratio: 2% AUM: INR 321.27 Cr  Aditya Birla Sun Life Dividend Yield Fund – Direct Plan-Growth - NAV: INR 280.57 Expense Ratio: 1.85% AUM: INR 810.28 Cr  Which 5 mutual fund is best? Ans. Tata Digital India Fund Direct-Growth   ICICI Prudential Technology Direct Plan-Growth  Quant Small Cap Fund Direct Plan-Growth  SBI Technology Opportunities Fund Direct-Growth  Aditya Birla Sun Life Digital India Fund Direct-Growth  Which dividend yield fund is best?  Ans. Templeton India Equity Income Fund, ICICI Prudential Dividend Yield Equity Fund, IDBI Dividend Yield Fund.  What are the 5 highest dividend-paying stocks? Ans. V.F. Corporation (VFC), Devon Energy (DVN), Dow Inc. (DOW), International Business Machines (IBM), and Verizon Communications (VZ).  Which mutual fund gives the highest dividend?  Ans. It's important to note that mutual fund returns can vary over time. Funds that focus on high dividends might sacrifice growth potential. Some funds known for higher dividends include Vanguard Dividend Appreciation Index Fund, Fidelity Equity Income Fund, and T. Rowe Price Dividend Growth Fund. Research and professional advice are recommended before investing.   Which top 5 companies give dividends?  The top dividend-paying companies included Apple Inc., Microsoft Corporation, Johnson & Johnson, JPMorgan Chase & Co., and Procter & Gamble.    What are the highest-yielding monthly dividend funds?   Some of the highest-yielding monthly dividend funds included Global X SuperDividend ETF, AGFiQ U.S. Market Neutral Anti-Beta Fund, and PIMCO Monthly Income Fund. However, yield and performance can change, so ensure you research and verify the status before making any investment decisions.  Disclaimer:This is not recommendation advice, use it for educational purposes only. Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of the future performance of the schemes

In the previous article, we discussed NFO in mutual funds. In this article, we will discuss CAGR in mutual funds CAGR or Compound Annual Growth Rate refers to the mean annual growth of any investment over a period usually longer than a year. It is an accurate way to calculate and determine the return for investment portfolios, and individual assets that may rise or fall in value with time.  Investment consultants who boast about their market knowledge and funds advertising their returns use the phrase CAGR. What is CAGR?  The compound annual growth rate, or CAGR, measures your investments' yearly compounding rate. Let's spend some time considering the word compounding. Imagine you put Rs 1,000 into stock and received a 10% return. In the first year, the stock price will have increased by Rs. 100. Now that we are in the second year, the price has risen by 10% once again.  Will the cost increase by Rs 1,200 after two years? The answer is no. After a year, your initial investment of Rs. 1,000 has increased to Rs. 1,100. At this point, a 10% growth of Rs. 1,100 increases the investment's worth to Rs. 1,210 after two years. The fundamental idea behind CAGR, or compound annual growth rate, is compounding. https://youtube.com/shorts/HMvmvNppjtk?feature=share How does the compound annual growth rate work?  Several restrictions are associated with calculating the mean or arithmetic average of results. Because it offers a rate of return that is smoothed, CAGR aids in overcoming them. It may be used to compare the success of various assets over time and provides a reasonable prediction of the yields from an investment when compounded yearly.  Most of the time, when we evaluate the success of our assets, we are just interested in the total return. However, we frequently fail to consider the temporal worth of money. CAGR differs in this manner. In actuality, CAGR prefers taking the time value of money. CAGR calculator and mutual funds  Mutual fund investors can benefit significantly from the CAGR calculator. This can help you find out how good-performing your fund is for helping you take the required investment decisions. Uses of a CAGR in Mutual fund  Compare returns between different funds and benchmarks  The CAGR calculator may also be used to contrast the returns you receive from one fund with those of other funds of a similar type. This might help you understand the mutual fund's performance compared to its competitors. For further clarity, you may also evaluate against the benchmark indexes.  How should investors interpret the compound annual growth rate over a period of time?  As we previously mentioned, CAGR displays the average annual rate of return on your assets. CAGR accurately gauges an investment's growth (or decline) over time. A typical rule of thumb is that stocks generally favor firms with CAGR growth over 4-5-year intervals.  Profits are expected to be reinvested after each year of the time horizon for calculating CAGR. The CAGR is illustrative and inaccurate. This is so that people understand that when you state something like "CAGR has risen 15% over five years," it does not always indicate that it did so continuously over the five years. It may have fluctuated between positive, flat, and even negative growth during this time. Tax Saver Mutual Funds Read More Advantages of CAGR  It enables investors to evaluate the returns in various situations. For instance, you may model different CAGR scenarios to see how much your original investment would increase over time. It helps with financial planning.  It is simple to use and comprehend. Only the beginning value, the end transaction, and the preferred investment time must be entered. You may simplify the calculation using Internet calculators, excel spreadsheets, or scientific calculators.  Absolute returns over a longer time horizon may be deceptive. In these situations, the CAGR can assist you in comparing with other comparable instruments to see whether you outperform the market. For instance, if you previously bought units of an equity fund and their value has since grown, you can efficiently utilize the CAGR to evaluate the average yearly gains you have achieved.  When comparing CAGR to the cost of funds, it is essential to remember that CAGR is a return on the capital metric. For instance, to make a spread, you would need to look at an investment with a CAGR return of above 12% of your cost of funds was 9%.  Small Cap Mutual Funds Read More CAGR and mutual fund returns While investing in mutual funds, you need to know if it’s worthy of an investment. You need to measure the performance of a mutual fund over a period of time. Mutual fund fact sheets usually give you growth rates across various time horizons of a fund, which makes it difficult to understand the performance of a fund based on multiple rates. If you knew how it grew gradually over a specific period of time, it would get easier. CAGR does that, and it gives the investor the single annual growth of a fund. CAGR is one of the effective ways to calculate fund performance.   Limitations of CAGR CAGR doesn’t take into account the volatility of investment since it gives you a smoothed rate of return over a period of time. CAGR calculations will be accurate only if you don’t withdraw your initial investment and reinvest the returns you gained out of an investment. In case you withdraw or add funds to the investment, the calculation may not be accurate. CAGR can also be used to compare funds that have similar investment periods. CAGR is usually used to calculate returns for extended periods, and it may not help in calculating the rate of returns over small investment tenure.     Points to remember about CAGR The compound Annual Growth Rate assumes compounded growth, which basically means any returns you gain on the investment are reinvested. If you had invested Rs. 200 and earned a return of Rs. 30 after one year of investment, your gain of Rs. 30 gets reinvested. If you plan to use CAGR for two different investments, you need to make sure to keep the same time period for both investments because CAGR offers a rate of return over a specific time period. You may not be able to know the risks involved in the investment and the volatility of an investment with the help of CAGR.   FAQs What is a good CAGR for mutual funds?   An ideal compound annual growth rate can be between 8% and 12% for a long-term investment.   What does a 10% CAGR mean?   CAGR is the average rate at which a fund moves from one value to another within a specific period. Imagine you put Rs 1,000 into stock and received a 10% return. In the first year, the stock price will have increased by Rs. 100. Now that we are in the second year, the price has risen by 10% once again.    Will the cost increase by Rs 1,200 after two years? The answer is no. After a year, your initial investment of Rs. 1,000 has increased to Rs. 1,100.   At this point, a 10% growth of Rs. 1,100 increases the investment’s worth to Rs. 1,210 after two years. The fundamental idea behind CAGR, or compound annual growth rate, is compounding.      Is a CAGR of 5% good?   For large-cap companies, the compound annual growth rate of 5 – 12% is considered good.   What does 5-year CAGR mean?   CAGR, or Compound Annual Growth Rate, refers to the mean annual growth of any investment over a period usually longer than a year. It is an accurate way to calculate and determine the return for investment portfolios and individual assets that may rise or fall in value with time.  CAGR is a beneficial formula for estimating an investment's growth rate. It can help enhance the returns on the assets or evaluate historical profits as well. How much CAGR is considered good?  A good CAGR for mutual funds depends on the investor's financial goals and risk tolerance. Generally, a CAGR of 12-15% is considered good for equity mutual funds, while a CAGR of 8-10% is considered good for debt mutual funds. It is important to note that these figures are not guaranteed and can vary depending on market conditions and the specific mutual fund in question. Investors should consider their investment objectives, time horizon, and risk appetite when evaluating the potential returns of mutual funds.  How is CAGR calculated in mutual funds?  CAGR, or Compound Annual Growth Rate, is a measure of the annualized rate of return of an investment over a specific period of time. In mutual funds, CAGR is calculated using the formula: [(Ending value/Beginning value)^(1/number of years)] - 1. The beginning value is the value of the investment at the start of the period being measured, while the ending value is the value of the investment at the end of the period. The number of years is the length of the investment period. By using this formula, investors can assess the average annual growth rate of their mutual fund investment.  How can I use CAGR to compare mutual funds?  CAGR can be a useful tool for comparing the returns of different mutual funds over the same investment period. By calculating the CAGR for each fund, investors can get a sense of the average annual growth rate and compare the performance of different funds. However, it is important to compare funds with similar investment objectives and risk profiles. For example, comparing the CAGR of an equity mutual fund with a bond mutual fund may not provide meaningful insights due to the different risk-return characteristics of these asset classes. Additionally, CAGR should not be the only factor considered when selecting a mutual fund, as past performance does not guarantee future results. Investors should also consider other factors such as fund expenses, investment strategy, and the expertise of the fund manager.  What are the limitations of using CAGR to evaluate mutual funds?  While CAGR is a useful metric for evaluating the performance of mutual funds, it does have certain limitations. One limitation is that CAGR assumes a steady rate of growth over the investment period and ignores volatility. In reality, mutual fund returns can fluctuate significantly from year to year. Additionally, CAGR does not account for when an investor adds or withdraws funds from the portfolio over the period being measured. This can impact the overall return and may not be accurately reflected by the CAGR. Lastly, CAGR may not be representative of the fund's performance if the investment period is short. It is important for investors to consider other factors such as risk-adjusted returns, expense ratios, and fund manager track record when evaluating mutual funds.  TALK TO AN EXPERT

As per SEBI regulations, an ELSS fund has to invest a minimum of 80% of its assets in equity and equity-related instruments. It is a savings scheme that comes with tax benefits. An individual can claim a tax rebate of an amount up to Rs. 1.50 lakh and save up to Rs. 46,800/- in a financial year. Advantages: Tax Deduction: Any investor investing in an ELSS fund can claim the tax benefit of an amount up to Rs. 1.5 Lakh under Section 80C of the Income Tax Act and save up to Rs. 46,800/- a year. Shortest Lock-in Period: Only the ELSS fund is the scheme that comes with the shortest lock-in period when compared to other tax savings options available. Higher Returns: ELSS is the only scheme among other options available that have delivered higher returns. The habit of Savings: An individual can develop the habit of savings by investing in these funds through SIP (Systematic Investment Plan) with as low as Rs. 500. Top 10 ELSS mutual funds S.No.Fund Name3-Yr Annualized Performance1Quant Tax Plan Direct Option Growth Plan36.22 %2Bank of India Tax Advantage Fund Direct Plan-Growth25.13 %3IDFC Tax Advantage (ELSS) Fund Direct Plan-Growth22.18 %4Canara Robeco Equity Taxsaver Fund Direct Plan Growth Option21.59 %5Mirae Asset Taxsaver Fund Direct Plan-Growth20.94 %6UTI Long-Term Equity Fund Growth Option Direct19.99 %7Mahindra Manulife ELSS kar Bachat Yojana Direct Plan-Growth19.91 %8DSP Tax Saver Fund Direct Plan-Growth19.61 %9PGIM India ELSS Tax Saver Fund Direct Plan-Growth19.32 %10UTI Long Term Equity Fund Growth Option Direct18.87 %Note: Data as of July 24, 2022Source: Morningstar 1. Quant Tax Plan Direct Option Growth Plan Fund analysis: The fund’s objective is to generate Capital Appreciation by investing predominantly in a well-diversified portfolio of Equity Shares with growth potential. The risk grade is high and the return grade is high. The fund has a beta of 0.99 which means that the fund movement is very much relative to the market movement. The fund has a high risk (measured by standard deviation) than the category average. ProsConsWell-diversified portfolio.Tax benefit.Highly volatile. 2. Bank of India Tax Advantage Fund Direct Plan-Growth Fund analysis: The fund has outperformed the category average over the long-term period. The risk grade is below average and whereas the return grade is high. The fund has invested majorly in large-cap growth companies with 83.14% of its assets. The fund has low risk (measured by standard deviation) than the category average. ProsConsMajor holding is in Bluechip companies. Tax benefit.Fund has underperformed the category average in 1-Yr trailing returns. 3. IDFC Tax Advantage (ELSS) Fund Direct Plan-Growth Fund analysis: The fund is a consistent performer and has been rated 4 stars by Morningstar. The risk grade is high, and the return grade is high. The fund has a beta of 1.16 indicating an aggressive approach toward the stock selection. Along with investing in large-cap companies, the fund has exposure to mid-cap (19.32%) & small-cap (13.60%) companies. The fund has a high risk (measured by standard deviation) than the category average. ProsConsFund has outperformed the category average when the market was rising. Tax benefit.Fund has underperformed the category average when the market was falling. 4. Canara Robeco Equity Taxsaver Fund Direct Plan Growth Option Fund analysis: The fund has given consistent performance over the period. The risk grade is below average, and the return grade is high. The fund flows growth style of investing and the majority of holding is in large-cap companies. The fund holds a well-diversified portfolio. The fund has invested across market capitalization and sectors. The fund has low risk (measured by standard deviation) than the category average. ProsConsFund has outperformed the category average when the market was falling. Tax benefit.Fund has underperformed the category average when the market was rising. 5. Mirae Asset Tax Saver Fund Direct Plan-Growth Fund analysis: The fund is one of the top-performing funds in its category. It has outperformed the category average over the long-term period. The fund is rated 5-star by Morningstar. The risk grade is average, and the return grade is high. The fund follows a blended style of investing which indicates that the fund is holding both value and growth stock in the portfolio. The fund has good assets under the management of Rs. 11,494.59 crore, which shows the reliability of investors. The fund has a high risk (measured by standard deviation) than the category average. ProsConsFund has outperformed the category average when the market was falling. Tax benefit.Assets Under Management are high. 6. Union Long-Term Equity Fund Direct Plan Growth Option Fund analysis: The fund has outperformed the category average over the long term. The risk grade is average, and the return grade is high. The fund has a low beta of 0.95 indicating that the movement of the fund is less relative to the market movement. The fund has invested 85.27% in large-cap companies and the rest is in mid-cap (13.13%) & small-cap (1.60%) companies. The fund has invested across sectors. The fund has low risk (measured by standard deviation) than the category average. ProsConsWell-diversified.Tax benefit.The fund has a high expense ratio. 7. Mahindra Manulife ELSS Kar Bachat Yojana Direct Plan-Growth Fund analysis: The fund has given stable returns over the different trailing time periods. The risk grade is average, and the return grade is average The fund has a well-diversified portfolio of 49 holdings spread across sectors. The fund has majorly growth stocks in its portfolio. The fund has low risk (measured by standard deviation) than the category average. ProsConsFund has outperformed the category average when the market was rising. Tax benefit.Low Assets Under Management. 8. DSP Tax Saver Fund Direct Plan-Growth Fund Analysis: The fund’s objective is to generate medium to long-term capital appreciation from a diversified portfolio that is substantially constituted of equity and equity-related securities of corporates and to enable investors to avail of a deduction from total income, as permitted under the Income Tax Act, 1961 from time to time. The risk grade is above average, and the return grade is above average. The fund has a beta of 1.01 indicating fund movement is very much related to the market movement. The fund is rated 4-star by Morningstar. The fund has a relatively high risk (measured by standard deviation) than the category average. ProsConsFund has outperformed the category average when the market was falling. Tax benefit.The return grade is above average. 9. PGIM India ELSS Tax Saver Fund Direct Plan-Growth Fund analysis: The fund has outperformed the benchmark and the category marginally over the long-term period. The fund is rated 5-star by Morningstar. The risk grade is average, and the return grade is above average. The fund follows a blended style of investing, which means it has both value and growth stocks in its portfolio. The fund has low risk (measured by standard deviation) than the category average. ProsConsConsistent performer.Tax benefit.The fund has a high expense ratio. 10. UTI Long-Term Equity Fund Growth Option Direct Fund analysis: The fund has a well-diversified portfolio of 59 stocks, investing in growth stocks across market capitalization except for the energy sector, with major holdings in large-cap (69.73%) companies and the rest in mid-cap (24.14%) & small-cap (6.12%) companies. The risk grade is average, and the return grade is above average. The fund is rated 4-star by Morningstar and the fund has given satisfactory returns over the long term. The fund has low risk (measured by standard deviation) than the category average. ProsConsFund has outperformed the category average when the market was rising. Tax benefit.The fund has a high expense ratio. What are the features of ELSS Funds?  Here are some of the features of ELSS Funds to help you become an educated investor:  1. Lock-in period  ELSS Mutual funds have a lock-in period of 3 years. You can keep your money in the fund for longer than the given period but the 3-year period is mandatory. You cannot take the money out before this period ends.    2. Equity-based investment  One of the features of ELSS is that it is an equity-based investment. About 80% of investment is equity while 20% is invested in debt and hybrid funds. The portfolio is well-diversified and helps you as an investor beat the odds in the long run with sufficient exposure and risk management.  3. Portfolio Manager  ELSS mutual funds are managed by fund managers who have years of experience and adequate financial knowledge to make sound financial decisions. Your money is protected and managed by the best professionals.  4. Different ways to invest  When it comes to ELSS investments, you can either place a lump sum order or a SIP order. Some lumpsum amounts as little as Rs. 500 while some SIP investments start at Rs. 500 to Rs. 1000. You can invest more and build a bigger corpus by the end of the 3-year period to meet your financial goals.   5. Tax benefits   You can have up on taxes with ELSS mutual funds. This investment is covered under Section 80c of the Indian Income Tax Act, 1961. You can claim a tax refund of Rs. 1.5 Lakhs in a financial year. Thus a tool to save money and build a sizeable corpus for your financial goals.   What are the advantages of investing in ELSS Funds?  Some advantages of ELSS Funds:  1. Disciplined Investor  ELSS mutual funds have a lock-in period of 3 years which means that you will automatically become a disciplined and long-term investor. This helps you create a list of goals and manage your funds accordingly. If you invest via SIP, then making regular investments to this ELSS mutual fund plan is a great way to start.   2. Benefits of savings   ELSS Funds gives the opportunity to create wealth and save on taxes. The ELSS funds generate a minimum of 10%* investment (This is subject to change with market risks) and is considered tax deductible.   3. Tax Benefit  As per Section 80C of the Indian Income Tax Act, 1961, you can claim a tax rebate of INR 1.5 Lakh of your ELSS Fund investment. The gains from ELSS funds up to INR 1 lakh is not taxable by law, while above the set limit of INR 1 Lakh is taxable at 10%.  4. Lower lock-in period  ELSS Mutual Funds have a lock-in period. It is shorter than that of other investment tools like the National Pension Scheme (NPS), the Provident Pension Fund (PPF Scheme), and tax-saving Fixed Deposits. Your money is locked in for 3 years only.   5. Tax Savings   ELSS can save taxes and claim up to Rs. 1.5 lakhs under Section 80c of the Indian Income Tax Act.   Whom the funds are suited for?   ELSS are tax-saving funds that every investor should have in their portfolio. This fund adds value to your overall investment plan, helps you stay invested without any breaks, and saves you money in taxes. Whether you are a risk-loving or risk-averse investor, this type of investment is stable, managed by professionals, and has the dual benefit of creating wealth as well as saving your money in taxes.   Conclusion ELSS is the only equity-linked mutual fund scheme that provides Tax Benefits to its investors under Section 80 C of the Income Tax Act for an amount up to Rs. 1.5 Lac. And has the shortest lock-in period. There are two ways to invest in this scheme i.e., SIP (Systematic Investment Plan) or Lumpsum. The preferable mode of investing is Lumpsum as funds will be locked for 3 years. FAQs Is ELSS taxable after 3 years? ELSS has a lock-in period of three years. The gains generated up to Rs 1 lakh are tax-free, and any gains above this limit attract a long-term capital gains tax at 10% What ELSS means? ELSS stands for Equity Linked Savings Schemes. These are Mutual fund investment schemes that help you save tax and create wealth. It has a lock-in period of 3 years. Is ELSS better than PPF? Both ELSS and PPF are tax-saving investments. These investments allow you to create wealth while saving your current income tax. The former has a lock-in period of 3 years while the latter has 15 years. Are ELSS and SIP the same? No, SIP is a medium of investment while ELSS is an investment tool. You can start a SIP for an ELSS mutual fund. What are ELSS mutual funds?   ELSS mutual funds are equity-linked savings schemes that invest primarily in equity and equity-related instruments. They offer tax benefits under Section 80C of the Income Tax Act, making them an attractive investment option for those looking to save taxes while generating wealth in the long run. ELSS funds invest 80% of their corpus in equity-oriented instruments, which have the potential to generate inflation-beating returns.    What is the minimum and maximum investment amount for ELSS mutual funds?   The minimum investment amount for ELSS mutual funds varies from fund to fund and can range from Rs. 500 to Rs. 5,000. There is no maximum limit on the investment amount, but tax benefits are available only up to Rs. 1.5 lakh per financial year. This means that you can invest more than Rs. 1.5 lakh in ELSS funds, but you will not get any additional tax benefits on the excess amount.  What is the lock-in period for ELSS mutual funds?   ELSS mutual funds have a lock-in period of three years, which is the shortest among all tax-saving investment options under Section 80C of the Income Tax Act. This means that you cannot redeem your ELSS investment three years from the date of investment. However, after the completion of the lock-in period, you can redeem your investment or continue to hold it for the long term.   How to invest in ELSS mutual funds online?   You can invest in ELSS mutual funds online through various platforms such as the fund house website, online brokers, and mutual fund aggregators. You need to complete the KYC process and have a bank account to invest in mutual funds online. KYC stands for "Know Your Customer," which is a process of verifying the identity and address of an investor. You can complete the KYC process online or offline by submitting the required documents.   Disclaimer:This is not recommendation advice, use it for educational purposes only. Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of the future performance of the schemes.

Investing 10 lakhs for one year can be a challenging task that requires careful consideration of various factors, such as risk appetite, investment goals, and expected returns. It's crucial to make informed investment decisions that align with your financial objectives and tolerance for risk. In this comprehensive article, we will delve deep into the world of investment options available in India and explore the best ways to invest 10 lakhs for a one-year period. By understanding the pros and cons of each option, you can make well-informed decisions that optimize your investment potential while mitigating risks. https://www.youtube.com/watch?v=l8Hyb77tkM8 INR 10 Lakhs Investment Plan | 1-Year Guide 1. Fixed Deposits (FDs) Fixed deposits are a reliable and widely popular investment option due to their safety and stability. With FDs, you can deposit a lump sum amount for a fixed tenure and earn a predetermined interest rate. The interest rates offered by banks typically range from 4% to 6%, providing a predictable return on your investment. FDs are an ideal choice for conservative investors who prioritize capital preservation and a guaranteed return on their investment. Furthermore, they offer the convenience of easy liquidity, allowing you to access your funds when needed. How to Invest INR 500 for Child Education every month? Read More 2. Recurring Deposits (RDs) Similar to fixed deposits, recurring deposits allow you to invest a fixed amount every month for a predetermined period. RDs offer similar interest rates as FDs, making them suitable for individuals who want to build a habit of regular savings. This investment option is particularly appealing to those with a steady income who prefer a disciplined approach to investment. By contributing a fixed amount regularly, you can accumulate a sizeable corpus over time while enjoying the benefits of compounded returns. 3. Public Provident Fund (PPF) The Public Provident Fund (PPF) is a long-term investment option that not only offers attractive interest rates but also provides tax benefits under Section 80C of the Income Tax Act. Currently offering an interest rate of 7.1%, the PPF comes with a lock-in period of 15 years. It is an excellent choice for investors seeking a safe and secure investment avenue that can also help in building a retirement corpus. The PPF provides the advantages of compounding and tax-free returns, making it an appealing option for long-term wealth creation. https://www.youtube.com/watch?v=tdwqQH0xkFw 4. Equity-Linked Savings Scheme (ELSS) The Equity-Linked Savings Scheme (ELSS) is a tax-saving mutual fund that primarily invests in equities. ELSS offers investors the dual benefit of potential capital appreciation and tax deductions under Section 80C. However, it is important to note that ELSS comes with a lock-in period of three years, making it suitable for individuals with a higher risk appetite and a long-term investment horizon. ELSS investments expose you to the volatility of equity markets, but historically, they have delivered attractive returns over the long run. Careful selection of ELSS funds and a systematic investment approach can help you navigate market fluctuations effectively. 5. Mutual Funds Mutual funds have gained significant popularity in recent years due to their ability to provide diversification and professional management. Mutual fund investments help you gain exposure to a portfolio of stocks, other securities, and bonds, which decrease the risk associated with investing in individual assets. Mutual funds offer various categories, such as large-cap, mid-cap, small-cap, debt, and hybrid funds, catering to different risk profiles and investment objectives. Mutual fund investments allow you to benefit from the expertise of professional fund managers and leverage their in-depth market research. 6. Gold Gold has long been considered a traditional safe-haven investment option, providing a hedge against inflation and economic uncertainties. Investors can choose to invest in gold exchange-traded funds (ETFs), physical gold,  or sovereign gold bonds. The returns on gold are influenced by international gold prices, making it subject to price fluctuations. Gold serves as a diversification tool in an investment portfolio and is suitable for those seeking stability and protection against market volatility. Additionally, gold investments offer the flexibility to convert your holdings into cash easily when required. 7. Real Estate Real estate investments offer the potential for long-term returns and act as tangible assets. Investing in residential or commercial properties can provide rental income and capital appreciation over time. However, real estate investments require significant capital and can be illiquid. It is essential to carefully evaluate factors such as location, market conditions, and legal compliance before venturing into real estate. Real estate can be a viable option for investors seeking a long-term investment avenue and are willing to take on the responsibilities associated with property ownership. Talk To An Expert

Inflation affects the cost of everything, from basic goods like edible oil, crude oil, and vegetables to big events like education, foreign trips, or property rates.    This year, inflation reached its all-time high at 7% and has maintained that record over the past 3 months. This means your savings need to beat the rising inflation rate before inflation beats your savings.   To protect your savings from inflation, you need to consider multiple investment instruments. Relying on fixed deposits, land or gold alone is not enough. Beating inflation requires a financial plan that distributes your money wisely across different saving and investing options. It allows your money to work in different areas – like mutual funds, bonds, PPF, Digital Gold, ETFs, and much more.   How can the average Indian investor beat inflation?  By gaining financial knowledge and opening up to investment, risk, and newer opportunities, the average Indian can beat inflation. If you are a young adult in your 20s, then saving in FDs or stashing your money in a savings account is not enough. You need to start exploring different alternatives that can benefit from the power of compounding and help you create a corpus for future needs.   Savings accounts in most banks offer a 2% annual rate while 5-6% interest rates on fixed deposits. These interest rates fail to compete with the growing inflation rate of 7%. Thus, by saving on these instruments, you are likely to reduce your purchasing power and lose money rather than gain from them!  Ways to protect your savings from inflation   1. Manage your expenses  Budgeting is the only way to ensure you don’t overspend or live paycheck to paycheck. Your cost of living should be less than your monthly income so that you can invest or save a part of your income. By budgeting, you may be able to spare a bigger portion for this cause. Tips to manage your expenses-   Follow your expenses carefully   Pay bills and EMIs on time to avoid penalties  Go for cheaper alternatives for food, clothes, and gadgets  Cutback on eating out, unnecessary subscriptions   Develop productive habits   2. Look for long-term investing options  Domestic and international stocks, bonds, and equity funds offer great returns on your initial investment. Sometimes double the returns as opposed to FDs, gold, and even property. These investments are great for those who wish to remain invested for 10-15 years, maximize their gains, and allow the market to average out the risk and loss. The beauty of the share market is that in the long run, it corrects itself and rewards its oldest members.  3. Go beyond PPFs and FDs   Beating inflation means looking past PPFs and FDs, stocks, gold, and exchange-traded funds (ETFs), mutual funds can help you diversify your investment and savings. This does not mean that you need to break your FD or PPF plan, it means starting a small SIP for Rs. 1000 or more for mutual funds or ETF can help you save better and reap the benefits of compounding.   4. Invest in gold and real estate  Gold is a natural deterrent against inflation; the rise of gold rises with inflation which means gold will remain an ever-green investment as long as inflation is here. But don’t restrict yourself to physical gold, invest in digital gold, gold ETFs, and sovereign gold bonds.  Similarly, in real estate, the cost of the property rises as well as rent with inflation Thus, invest in property or through real estate investment trust (REITs).  5. Mutual funds and ETFs  A SIP as low as INR 500 can help you stay financially secure in the near future. There is a good reason behind the popularity of mutual funds and ETFs, these are great instruments for beginners as well as professionals. Mutual funds are managed by a fund manager who invests on your behalf. This means you get to protect your savings from inflation without any effort.   Don’t let inflation eat at your savings. Invest wisely and remember that the cost of commodities is only going to increase so should your savings. FAQs How do you stay ahead of inflation?   To stay ahead of inflation, consider investing in assets with returns that outpace inflation, such as stocks, real estate, or commodities. Diversify your portfolio to spread risk. Focus on long-term investments, maintain a budget, and periodically reassess your financial strategy to adapt to changing economic conditions.  How do you manage inflation times?  During inflation times, manage by diversifying investments, focusing on assets with historically inflation-resistant returns, and avoiding excessive cash holdings.  Where do I put my money during inflation?   During inflation, consider allocating your money to assets that historically perform well in such conditions, like equities, real estate, commodities, and Treasury Inflation-Protected Securities (TIPS). Diversify your investments to spread risk and preserve purchasing power. Avoid keeping excessive cash, as it may lose value during inflationary periods. 

Australian universities are a dream for many students aspiring to do higher education overseas. According to QS world rankings 2022, Australia’s 7 universities make it to the list.   As per Top University’s stats, “A 4-year degree in Australia costs up to $ 45000.”   The tuition fee varies between 30000 AUD - 50000 AUD a year, which is the average cost. Depending on the course and the university, tuition fees may differ. However, the tuition and living costs are comparatively high depending on individual circumstances.  As a parent, you must worry about overseas study costs. Here are the best ways to save and finance your child's Australian dream.  What are the estimated costs for studying a course in Australia? Degrees in Australia Approximate costsEnglish Language Study AUD 18,240/YearVocational Education Up to AUD 28,500/YearUG (Undergraduate Degree) Up to AUD 45,000/YearPG (Post-Graduation) Around AUD 48,000/Year Doctoral DegreeAround AUD 48,000/Year  How to plan finances for your child’s education in Australia?  So, these are some estimated costs of studying in Australia. The expenses differ according to the course chosen. Given the cost, here is how you can finance the child’s tuition fee and living expenses in Australia.  1. Applying for a scholarship  Every university aspires to nurture talents from around the world and to encourage students; universities offer scholarships based on merit. Students should keep a keen eye on such scholarships and apply for them. An eligible student may be able to cover their tuition fees throughout the course by getting the scholarship.  2. Applying for personal loans  The parent can apply for personal loans if a student does not qualify for funds, scholarships, or grants through different sources. Personal loans are easy to prepare for and have competitive interest rates. You can manage it feasibly by splitting the repayments. Such loans may be a good option for average students pursuing higher education at Australian universities.  Bachelor's for Australia Read More 3. Work while studying  In Australia, one can quickly get a part-time job that pays hourly. It will help the student financially but also help gain exposure to the different industries and how they function.  Students can work for different paid internships, apprenticeships, and as a trainee for other firms to fund their daily expenses and tuition fees.   4. Check out student loans   Student loans are high-interest loans taken for the specific purpose of funding overseas education. You can apply for these loans through lenders, the government, or financial institutions.  Eligibility criteria for student loans:  The applicant must be an Indian citizen.  The age must be 18 years, or their parents will have to take the loan on their behalf.  Admission confirmation from an Australian university is required.  The candidate must enroll in a course recognized by the funding institution, such as a job-oriented degree, diploma courses, etc.  The student/parent should keep up with the terms of the loan/loans and their tenure. They must assess the best option available. One can take student loans for a longer duration ranging from 10-20 years.  Expenses covered under the student loan include:  Tuition fees for the course.  Cost of accommodation of student.  Purchase books, laptops, and stationery as needed.  Other such expenses as required to complete the course.  Cost of study tours, project work, etc  5. Minimize the risk of investments  If you have been investing in your child's Australian dream for a long time, safeguard it. Shift these investments to a minimal-risk fund like an FD (Fixed Deposit) towards the last stages of the investment horizon. You can also switch to a savings account. It ensures safety and provides interest in your money.  How do I apply for an education loan? What documents do you need?  If you want to finance your child's education, make sure you have these documents:  Admission letter from the university  Study-related documents  Candidate's PAN number  Statements of the guarantor, borrower, or student's account  A copy of the income proof of the parent or guarantor  Proof of assets  FAQs How can I fund my studies in Australia?   You can fund your studies in Australia through various means such as scholarships, grants, part-time work, student loans, and financial aid. Research available scholarships and grants, explore part-time job opportunities, and inquire about student loan options to cover tuition fees and living expenses during your study period.  Do I need proof of funds to study in Australia?   Yes, international students typically need to show proof of sufficient funds to cover tuition and living expenses in Australia.  How many funds required for Australia?  The funds required for studying in Australia vary depending on the course, location, and duration of study. Generally, you'll need to show sufficient funds to cover tuition fees and living expenses.  Conclusion These are some ways to finance your child's Australian dream. What is the best option for you? TALK TO AN EXPERT

Equity Linked Savings Schemes, also known as ELSS, are mutual fund investment plans that enable income tax reduction. They are also referred to be tax-saving funds for this reason. According to section 80c of the Income Tax Act, taxpayers may invest up to INR 1.5 lakh in certain stocks and deduct that amount from their taxable income. ELSS is one of the securities that has been legalized; other securities include PPF, postal savings such as NSC, tax-saving FDs, NPS, etc.  Features of ELSS mutual funds  Equity makes up a huge part of the portfolio of ELSS funds.  They all have mandatory lock-in periods, although theirs is the shortest at only three years.  You profit from tax savings in addition to capital growth from equity investment.  If you want a consistent income, you can choose dividend payouts, or you can choose growth for capital growth.  Entry or exit loads are not present in ELSS Mutual Funds.  Long-term returns from good ELSS Funds are in the 10 – 12% range, among the greatest of all financial vehicles in the tax-saving category. ELSS does, however, carry some risk.  Advantages of best ELSS mutual funds  Only 10% of the gains are taxed on earnings.  There is no upper investment limit.  The three-year lock-in period is the shortest of all Section 80C options.  Investors are not required to have extensive market understanding. The return on your investment is maximized by expert fund managers who have exceptional experience managing mutual funds.  The potential returns are significantly larger when comparing ELSS mutual funds to other tax-saving options like PPF or NPS Top 10 ELSS Mutual Funds Read More Who should invest in ELSS mutual funds?  A Hindu Undivided Family (HUF) or any individual may invest in ELSS. It is only appropriate for individuals who are knowledgeable enough, have the capacity for risk, and are committed to their investments over the long term. Young investors who are just starting their professional careers can make long-term investments. Young investors are the best candidates for ELSS since they have the time to fully harness the power of compounding and earn significant profits while saving up to Rs 46,800 in annual taxes. Options for investing in the best ELSS Mutual Funds  1. Growth Option  The holder won't get any benefits in the form of dividends under the growth option. Gains are received by the investor during redemption, which increases the profits by increasing the entire NAV. The one word of caution is that there is a market risk associated with the returns. It's possible that markets don't always favor investors.  2. Dividend reinvestments option  This is a choice whereby the investor reinvests dividends to raise the NAV. This is a wise move, especially if the market is performing well and is expected to do so in the future.  3. Dividend option  An investor who chooses this option receives timely advantages in the form of fully tax-free dividends. Only when there are excessive profits over and above are dividends issued.  Source: Pexels How to evaluate the best ELSS mutual funds  1. Fund returns  To check that the fund has remained stable over the years, compare its performance to that of its peer competitors. An investor can invest in the suggested funds based on these criteria.  2. Expense ratio  The expense ratio shows how much of your investment is used to manage the fund. Higher take-home returns were the result of a decreased expense ratio. It goes without saying that you should select the fund with the lower expense ratio.  3. Fund History  Select investment companies with a track record of steady performance over a lengthy period, such as five to ten years. Based on its benchmark and the caliber of the equities in its portfolio, a fund's performance is represented. A fund will provide significant returns if it outperforms its benchmark or if the stocks perform better.  4. Financial Parameters  To analyze a fund’s performance, consider a number of criteria, including Standard Deviation, Sharpe ratio, Sortino ratio, Alpha, and Beta. A fund that has a higher beta and standard deviation is riskier than one that has a lower beta and deviation. Because they give better returns for each additional risk you take, choose funds with a higher Sharpe ratio.  Building trust in the fund is mostly dependent on the fund manager. The fund manager is crucial because choosing the right stocks and building a solid portfolio are what enable the fund to generate high returns. Their competency skills and experience help to build confidence in this regard. Why do you invest in ELSS Funds? Read More Best ELSS Funds to Invest in 2023 Fund Name and their 3-Year Compound Annual Growth Rate (3Y CAGR) Fund Name 3-Y CAGR Quant Tax Plan 33.6% Bank of India Tax Advantage Fund Eco 24.4% Bank of India Tax Advantage Fund 23.8% Union Long-Term Equity Fund 20.6% Canara Robeco Equity Tax Saver fund 20.2% UTI Long-Term Equity Fund 19.3% Mirae Asset Tax Saver Fund 19.2% DSP Tax Saver Fund 18.5% UTI Long Term Equity Fund 17.8% Kotak Tax Saver Scheme 17.1% Principal Personal Tax Saver Fund 16.8% Baroda ELSS 96 Plan A 16.3% SBI Magnum Long Term Equity Scheme 16.3% ICICI Prudential Long Term Equity Fund Tax Saving 15.5% Invesco India Tax Plan 15.1% Tata India Tax Savings Fund 15% Baroda BNP Paribas ELSS Fund 13.8% SBI Magnum Long-Term Equity Scheme 12.9% Nippon India Tax Saver ELSS Fund 12.7%  FAQs Are ELSS funds better than mutual funds?   ELSS funds are a type of mutual fund that invests primarily in equity, providing the potential for higher returns and tax benefits.  What are the advantages of ELSS over the tax-saver FD?  The advantages of ELSS (Equity Linked Savings Scheme) over tax saver Fixed Deposits (FDs) include the potential for higher returns due to equity investments, tax benefits under Section 80C with a limit of 1.5 lakh INR, and the opportunity for wealth creation through long-term equity market exposure.  What are the advantages of ELSS funds?   The advantages of ELSS (Equity Linked Savings Scheme) funds include the potential for higher returns due to equity investments, tax benefits under Section 80C of the Income Tax Act, and a lock-in period of three years, which encourages long-term investment.  TALK TO AN EXPERT