EduFund Blogs

If you don't find a way to make money while you sleep, you will work until you die.”   Warren Buffet Many people view saving and investing as the same thing. But they are not. You need to find a way to invest your money so that your money can work for you. There are many reasons to invest like planning for retirement, planning for your child's education, planning to bear inflation, or could be to save tax & create wealth, etc.  Let’s see what the reason for investing could be:  Financial Security – In the first place, people want to be financially secure so that they can protect themselves from unanticipated financial hardship.  Financial Independence – Your investments allow you to have financial independence as you reach retirement.  Building Wealth – People invest to create wealth from the process of saving and then investing the savings.   Attaining Any Specific Goal – Some people invest to achieve specific goals like child education.  You should always consider long-term investing to minimize your risk and let compounding work for you.  https://www.youtube.com/shorts/3-JVg9rhDbM Why should you invest in ELSS?  There are many investment instruments available in the market to save taxes like ELSS (Equity Linked Savings Scheme), PPF (Public Provident Fund), NSC (National Savings Certificate), and Tax Savings Fixed Deposits (FD). But there are many reasons to invest in the ELSS fund. ELSS fund is an effective way to create wealth and to save tax at the same time under one roof. ELSS funds are professionally managed funds.  ELSS funds invest in equity and equity-related securities. ELSS is the only mutual fund class that is eligible for a tax deduction. You can save up to ₹46,800 /- (tax deduction up to ₹1,50,000/-) in a financial year by investing in ELSS, which is covered under Section 80C of the Income Tax Act,1961. However, you can invest more than the designated amount; but there will be no tax benefit over ₹1.5 lac.  Let’s see what are the benefits of investing in ELSS:  Shorter Lock-In Period – ELSS has a short lock-in period of 3 years. Unlike the PPF, NSC & Tax Saver FD, all of which require a 5-15-years lock-in period.  High Returns – ELSS funds invest predominantly in equity and equity-related securities; the returns are higher than the other investment options with tax benefits. Historical returns show 12%-15% p.a. Higher returns will also help beat inflation.  Flexibility – There are two ways to invest in ELSS funds - SIP & Lumpsum. If you cannot invest in Lumpsum, then you can consider going with the SIP option.   Comparison between ELSS vs PPF vs Tax Saver FD vs NPS Investment ELSS PPF NSC Tax Saver FD Lock-in 3 Years 15 Years 5 years 5 Years Annual Returns Market-linked, historical returns show 12%-15% 7.10% 6.80% 6.00% Risk Market-related risk Low risk Low risk Low risk Minimum Investment ₹ 500 ₹ 500 ₹ 1,000 ₹ 100 Tax Benefit Yes Yes Yes Yes Maximum Deduction ₹ 1,50,000 ₹ 1,50,000 ₹ 1,50,000 ₹ 1,50,000 Premature/Partial Withdrawal Not Allowed Allowed only after 5th Year Under only special circumstances Not Allowed Taxation on Returns LTCG Applicable Tax-Free Tax Applicable TDS Applicable  ELSS of the Month 2023: Mirae Asset Tax Saver Direct Plan-Growth Objective The investment objective of the scheme is to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related instruments. The scheme does not guarantee or assure any returns.  Performance  Trailing Returns % Fund Benchmark Category 3 Years Annualized 26.71 20.15 18.29 5 Years Annualized 24.01 18.18 16.61  Invested Returns Accumulated Annualized Return (XIRR) Cumulative Return ₹ 7,30,000 ₹ 7,64,439 ₹ 14,94,439 23.99% 264.48%  Source: EduFund Note: Considering investing 10,000/month from Dec’15 to Dec’22 Suitability – For any investor looking to save tax on income through investment in the mutual fund.  Risk – High risk, as returns are totally dependent upon market risk. Returns are not guaranteed.  FAQs Why should you invest? Financial Security – In the first place, people want to be financially secure so that they can protect themselves from unanticipated financial hardship.  Financial Independence – Your investments allow you to have financial independence as you reach retirement.  Building Wealth – People invest to create wealth from the process of saving and then investing the savings.   Attaining Any Specific Goal – Some people invest to achieve specific goals like child education. Why should you invest in ELSS?  ELSS fund is an effective way to create wealth and to save tax at the same time under one roof. ELSS funds are professionally managed funds.  ELSS funds invest in equity and equity-related securities. ELSS is the only mutual fund class that is eligible for a tax deduction. Which is the best ELSS fund for 2023? ELSS of the Month 2023: Mirae Asset Tax Saver Direct Plan-Growth Conclusion When we have the best investment vehicle available to save tax then, why do we need to run for conventional tools to save tax? Every investor has a different risk appetite, but if anyone is ready to hold their investment for 15 years in an instrument like PPF then, he/she should consider investing in the ELSS funds that tend to give greater returns in the long term. DisclaimerMutual fund investments are subject to market risks. The previous performance of any fund is no guarantee of similar future performance. Please read the offer document carefully before investing.

Everyone speaks about the rewards of preparing early for education funds and securing them as soon as possible. What they forget to explain is how to reach that goal. Fear not, for we have prepared a list of things you might want to tick off if you want to secure your child’s education.  1. Choosing the right platform is important There are a number of investment platforms available for investors. As an investor with a goal in mind (the education fund for your child), it is important to choose a platform that is built for that purpose or has certain advantages in the pursuit of your goal. There are two great advantages of choosing a goal-specific platform - one, you separate your investments in a way that you know how much amount is set aside for that particular goal every month, and second, you get the added goal-related benefits that the platform could offer. In the case of EduFund, a platform built for parents to save for their children's education fund, you have added advantages like readily available education loans if you fall short, or free counseling if your child needs it. 2. Investing in the right mutual funds  Once you decide to invest in mutual funds to achieve higher returns than Fixed Deposits, you also need to do your research to find which investment schemes are best suited for you. Many factors play crucial roles in this procedure. For example, one of the first things you need to consider is the balance between your monetary goals and the level to which these will be fulfilled by the fund returns and the risk associated.  Time is another important factor that will shape your decision in this matter. You also need to consider what exactly you want out of your investment whether it is tax reductions high returns with high risks or more stabilized returns with low risks. To indulge in smart investments, stay aware of the best investment schemes currently trending in the stock market. 3. Investing in international stocks Parents who like to stay alert about the current trends related to the education system and finances must be well aware of the phenomenon called education inflation. This is what makes a global education exponentially more expensive than one attained within India.  The value of the Indian Rupee has depreciated over the years against foreign currencies like the American dollar. This means that the cost of a course pursued in a foreign land like the US or the UK will be tenfold compared to the same course pursued in this country. The cost of living will be equally high overseas. A smart way to deal with this problem is to invest in international equity funds. This means higher returns because if you invest in US stocks, you will be earning in dollars, not rupees. Moreover, if your investments in Indian stocks get affected by market fluctuations, you can still depend upon your foreign stock investments which will remain relatively more stable.  4. Consider the availability of education loans  Sometimes your life savings and your investment returns are not enough to fund your child’s education. Do not worry. Education loans can take care of your child’s aspirations in such situations. Even if you are in a position to be able to afford your kid’s dream college, student loans are still a healthy way to teach your kid the value of money and how to build credit.   Creditworthiness is a virtue that will financially discipline your child so that they can make monetary decisions in your absence. It will also ensure that they can take future loans as part of their education fund at low interest rates. Only loans exceeding a very high amount of money require collateral or a security deposit, which means you can easily avail of student loans.  5. The right guidance for your children Career and academic counseling sessions are crucial for your kid if they are going through a transition phase in their lives. As their primary caregiver, you are entitled to guide their way but sometimes what might be required is professional help. You are longer required to pay for these counseling sessions. A platform like EduFund offers them the best education counseling services in India for free of cost. Let nothing stop your child from achieving their goals.  6. Expert advice to get you to your goal EduFund believes in helping you attain as much clarity on financial affairs as possible. In case of expert advice on investment, you can rely on the world-class experts from EduFund. The Edufund app provides you with all the useful tools to attain the best from your child’s education fund.  For example, it comes with a calculator that helps you calculate the education cost. This is a smart calculator developed to give you inflation-adjusted rates. This is the first step toward getting an idea of how much you will need to invest or save up as an education fund.  Conclusion What seems like a mammoth task can be easily managed by dividing it into smaller tasks and simplifying it. Each small step is quite crucial in itself. But once you have the checklist ready, you can be sure if not losing sight of things. FAQs How do I plan my child's education fund? Starting early is key to building your child's education fund. You can start saving with mutual funds, PPF, US stocks, Indian stocks, fixed deposits, and much more. Before starting it is important to consult a financial advisor and figure out the cost of education before starting an SIP. Which fund is best for child education? Here are some of the best funds for your child's education fund: Axis Long-Term Equity FundSBI Equity Hybrid FundParag Parikh Flexi Cap FundAditya Birla Sun Life Tax Relief 96 Fund Growth Aditya Birla Sun Life Tax Plan-GrowthDSP BlackRock Tax Saver Fund Growth Axis Long-Term Equity Fund Growth How do you build a corpus for child education? The first step to building a corpus for a child's education fund is to figure out the cost using the College Cost Calculator. Knowing the financial goal you need to invest in before starting a SIP helps you remain focused and know the exact amount you need to save monthly to get started. DisclaimerMutual fund investments are subject to market risks. The previous performance of a fund or scheme is no guarantee of future success. Please read the offer document carefully before investing.

Look at the market fluctuations as your friend rather than your enemy; Profit from folly rather than participate in it.” Warren Buffet Market falling or fluctuation is extremely common. The market (NIFTY50 Index) has corrected by 6.31% from its recent peak of 18350 (17th Jan 2022) to 17149 (25th Jan 2022) & 7.82% from its all-time high of 18604 (19th Oct 2021).  Market movement for 15 days before & after the budget  Decoding the charts The EduFund Research Team has performed the study to determine the reason for the recent fall in the markets and here’s what they came up with.  Reasons for the fall Tightening of monetary policy by the US Fed department  Lower than expected results of major corporates  Tension on the borders of Ukraine-Russia  How the fall affects you?  According to Nifty50’s data for the past 2 years, we can see that the market has fallen by 6.56% in 2020 and 7.83% in 2021, just before the budget. And after these falls, the market rebounded 5.32% & 13.49% in 2019 & 2020 - in a short time frame from the correction.  This means that there is actually no need to be worried about the fall in the market. After the budget, we could see a positive movement in the market.  We believe such correction/volatility in the market is a great time for long-term investors.  Make the most of the recent market fluctuations  These short-term market fluctuations and volatility actually provide a good entry point in an otherwise rising market.   Also, if you are an investor investing through the SIP route, you should not panic about these volatile situations. Instead, let the rupee cost averaging work in your favor by topping up a lump sum during this time. India is currently trading at a PE of 24.84 (Median – 20.45).  Take a look at some of the top funds you can invest in Fund Name Category Annualized Returns (3-Years) Risk ICICI Prudential Corporate Bond Direct-Growth Corporate Bond 8.19% Low Tata Hybrid Equity Direct Growth Hybrid 15.28% Average Mirae Asset Large-cap Fund Direct-Growth Large-cap 18.61% Moderately High DSP Flexi-cap Fund Direct Growth Flexi-Cap 23.02% High  FAQs What is the reason of market going down? Tightening of monetary policy by the US Fed department  Lower than expected results of major corporates  Tension on the borders of Ukraine-Russia How the fall affects you?  According to Nifty50’s data for the past 2 years, we can see that the market has fallen by 6.56% in 2020 and 7.83% in 2021, just before the budget. And after these falls, the market rebounded 5.32% & 13.49% in 2019 & 2020 - in a short time frame from the correction. Should you stop your investments during market fluctuations? Yes, it is important to check on your investments when market fluctuates but stopping and/or pausing depends on the type of investment and the effect of the market on the industry. Consult your financial advisor before making changes to your portfolio. Consult an expert advisor to get the right plan TALK TO AN EXPERT

A full and fruitful life necessitates a high-quality education. For several, it is the equivalent of graduating from a prestigious university. However, the cost of education is increasingly rising. In reality, the price of attending a reputable university is already very high. Parents who plan their child’s education in advance and want to provide them with the best opportunities possible to invest their money in mutual funds (MFs), fixed deposits (FDs), and unit-linked insurance policies (ULIPs). However, amid all of this, there could be a financial shortfall. In such a situation, an education loan plays a critical role in bridging the gap between the amount in hand and the total amount needed. According to research, education costs are rising at a rate of 15% per year on average. In 15 years, the cost of an MBA is expected to rise from Rs 2.5 lakh to Rs 20 lakh. So, if a couple saves Rs 2,500 per month for 15 years at a rate of 12%, they would have saved about Rs 12.5 lakhs. Now, you all must have some questions in your mind regarding the intricacies of availing of an education loan. We have tried to answer a few commonly asked questions to enhance your understanding Apply for Education Loans 1. Who can apply for the loan? The primary creditor is a student. A co-applicant may be a parent, partner, or sibling. 2. What is covered by a student loan? It includes the basic course fee and other costs such as (college) housing, exams, and other miscellaneous expenses. 3. To whom is the loan being extended? It is available to students who wish to study in India or further their education outside of the country. The overall sum available for studies in India and abroad differs from one bank to the next. 4. For what courses can the loan be availed? It is available as a full-time, part-time, or vocational course leading to graduation or post-graduation in engineering, management, medical, hotel management, architecture, and other fields. Is it advisable to opt for Education Loans for an Online Degree? Read More 5. What are the eligibility criteria and documentation requirements? To be eligible for the loan, one must be an Indian citizen who has been accepted into a college or university that is recognized by a competent authority in India or abroad. The applicant must have completed his senior high school education. Some banks provide a loan even before a student has been accepted to a university. The Reserve Bank of India (RBI) guidelines state that there is no upper age limit, but some banks may impose them. Additional documents such as the institution's admission letter, fee structure, and Class X, XII, and graduation (if applicable) mark sheets are required by the banks. The co-income applicant's records, such as salary slips or income-tax returns (ITR), are also needed. 6. Is collateral required for financing the loan? Depending on the number, banks will fund up to 100% of the loan. There is currently no margin money available for loans up to Rs 4 lakh. To study in India, the applicant must contribute 5% of the necessary funds. The needed margin money for international studies, on the other hand, rises to 15%. Banks may also need collateral for loans exceeding Rs 7.5 lakh. For loans up to Rs 4 lakh, financial institutions currently do not need any collateral or third-party guarantee. A third-party guarantee is required for loans between Rs 4 lakh and Rs 7.5 lakh. For loans exceeding Rs 7.5 lakh, a security deposit is required. According to the fee structure, when a loan application is approved, the banks send the funds directly to the college or university. 7. What is the rate of interest charged on the education loan? To set an interest rate, banks use the Marginal Cost of Funds Lending Rate (MCLR) which in India ranges anywhere from 7% to 8% plus a spread (about 1-2.5%). The additional distribution is currently in the 1.35-3 percent range (as of 2017). 8. What is the process of repayment? The individual availing the loan for their education is responsible for repaying the loan. In most cases, repayment begins when the course is completed. Some banks also give you a six-month grace period after you get a job or a year after you finish your studies before you have to pay back your loan. The repayment period is usually between 5 and 7 years, but it may also be extended. The bank charges a basic interest rate on a loan over the repayment period. The student's equated monthly installment (EMI) burden for future repayments is reduced by paying basic interest during the course duration. 9. What precautions should one take while applying? When availing of the loan, one must consider bank fees such as transaction fees, pre-payment fees, late EMI payment fees, and so on. The majority of lenders charge a processing fee of 0.15 percent of the total loan amount. 10. Are there any tax benefits? The interest paid on the repayment is deductible under Section 80E of the Internal Revenue Code. This tax benefit is only available to people who are paying interest on a personal loan. The whole amount of interest charged is deductible from your taxable profits. This deduction can be taken for up to 8 years. There are no tax deductions available for the principal sum. FAQs What is an education loan? An education loan is a type of loan given to students who wish to pursue higher education but fall short of finances. Its primary goal is to help students sponsor their higher education. The eligibility criteria for education loans is simple, it requires students to be above the age of 18 and must have an offer letter. Is collateral required for financing the education loans? There are two types of education loans, one with collateral and the other one without collateral requirements. Depending upon the loan amount, banks may require the applicant to submit collateral as security. Loans below 4-5 lakhs do not require collateral, however, the policy may differ based on the issuing party. What are some precautions one should take before taking an education loan? When availing of the loan, one must consider bank fees such as transaction fees, pre-payment fees, late EMI payment fees, and so on. The majority of lenders charge a processing fee of 0.15 percent of the total loan amount. Conclusion Good education is extremely important in the present dynamic world which not only boosts self-confidence in students but also equips them with skills that in turn help them lead their best lives. Hence, taking a loan might look frightening but in the long run, it definitely pays off provided the student is focused and makes the best of the opportunity. You can fill in a simple form to get started with your education loan application. Also, since an education loan is a person's first loan, it aids in the creation of a good credit score. If you repay the loan on time and without defaults, it will be easier for you to obtain a home loan, car loan, or any type of loan in the future.

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant. The family behind DSP has been very influential in the growth and professionalization of capital markets and the money management business in India over the last one-and-a-half centuries. DSP Mid Cap Fund  Investment objective The primary investment objective is to seek to generate long-term capital appreciation from a portfolio that is substantially constituted of equity and equity-related securities of mid-cap companies. From time to time, the fund manager will also seek participation in other equity and equity-related securities to achieve optimal portfolio construction.  Investment process    The DSP Mid Cap Fund has an investment philosophy that selects stocks with durable business, which are run by able managers and have high sustainable Returns on Equity. It focuses on small and mid-cap stocks that have a strong alpha generation potential, competitive advantage, and high cash flows.  Portfolio composition  The portfolio major exposure of more than 70% in mid-cap followed by 17% in small cap. The top 5 sectors hold nearly 48% of the portfolio, with major exposure to Pharmaceuticals and Biotechnology. Note: Data as of 30th Nov 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: dspim.com  Top 5 holdings Name Sector Weightage % Supreme Industries Ltd. Plastic Pipes Company 4.67 The Phoenix Mills Ltd. Retail Mall Developer 3.65 Atul Ltd. Chemicals Company 3.49 IPCA Laboratories Ltd. Pharmaceutical 3.36 Bharat Forge Ltd. Forging Company 3.28 Note: Data as of 30th Nov 2022. Source: ICICI Pru Performance over 16 years  If you would have invested 10,000 at the inception of the DSP Mid Cap Fund, it would be now valued at Rs. 77,034. This fund has outperformed the benchmark in all time horizons.  Note: Performance of the fund since launch. Inception date – Nov 14th, 2006. Source: Moneycontrol  The DSP Mid Cap Fund has given consistent returns and has outperformed the benchmark over the period of more than 16 years by generating a CAGR (Compounded Annual Growth Rate) of 14.37%  DSP Top 100 Equity Fund Read More Fund managers at DSP mid-cap mutual funds Resham Jain: Total work experience of 9 years. He joined DSP Investment Managers in March 2016 as Assistant Vice President of the Equity Income Team.  Abhishek Ghosh: Total work experience of 14 years. He joined DSP investment managers in September 2018 as Assistant Vice President of the equity team.  Vinit Sambre: Total work experience of 16 years. Vinit joined DSPIM in July 2007, as a Portfolio Analyst for the firm's Portfolio Management Services (PMS) division.  Jay Kothari - Total work experience of 20 years. Vice President & Product Strategist -Jay has been with DSP Investment Managers since May 2005.  Who should invest?  An experienced investor with a well-defined core portfolio.  Investors with high patience understand that this category of funds is associated with high risk.  Why invest?  Offers the potential to grow your wealth & 'earn big' returns if this theme does well (a high-risk, high-return strategy).  Can be a suitable choice for tactical allocation.  Horizon  One should look at investing and holding the investment for more than 7 years.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  FAQs What are the top five holdings of DSP Midcap Fund? The top 5 holdings of DSP Midcap Fund: Supreme Industries Ltd.The Phoenix Mills Ltd. Atul Ltd. IPCA Laboratories Ltd. Bharat Forge Ltd. Who are the fund managers for DSP Midcap Fund? Resham Jain Abhishek Ghosh Vinit Sambre Jay Kothari What has the performance of DSP Mid cap fund over 16 years?   If you would have invested 10,000 at the inception of the DSP Mid Cap Fund, it would be now valued at Rs. 77,034. This fund has outperformed the benchmark in all time horizons. Conclusion  This scheme offers exposure to mid-size companies that have a durable business run by able managers. Mid-sized companies like these can offer more growth potential than larger companies but at lower risk levels than smaller-sized companies. This scheme is best suitable for investors with a long investment horizon. 

Want your child to go to the best possible college in India or abroad? Plan way ahead of time. Being prepared beforehand is the secret ingredient to being a successful parent when it comes to backing up your ward’s academic career. When you build an education fund it is important not only to save up but also to invest. Here are some pro tips on how to send your child to the best possible college.   1. Planning ahead The significance of planning ahead can not be stressed enough. There are multiple reasons why you should start having forethoughts about your family’s future. Firstly, an ideal way of demystifying a huge process is to break it down into short-term goals. Secondly, it can resolve all the stress that may come your way when you are faced with the biggest monetary decisions of your life. One such decision is regarding the college your child will eventually attend. When you are ready with your investment money and savings directed to your kid’s education, you can effortlessly offer financial backing in whatever dream college they aim for. The pandemic has not been entirely successful in distorting the trend of pursuing a global education. Make sure to start investing early so that you can keep many options open for your kid.   2. Choosing investment schemes  There are too many options to choose from when it comes to investment schemes. This is another reason why you should begin as soon as possible. This way you will have more time in listing out the most suitable choices and deciding how you are going to divide your money between savings and investments. You can go for mutual funds instead of investing directly in stocks. Investing in mutual funds is a hassle-free option, unlike direct investments as you will not be required to have in-depth knowledge of market trends. 3. Considering the possibility of a global education While it is not possible to know for certain the stream of education your child will opt for in the future, it is advisable to remain prepared. It can be useful to remember that the earlier you invest, the more wealth you generate. This principle works for every financial goal you set and it is particularly beneficial if there is a possibility of pursuing global education. Another concept you need to be familiar with in this situation is education inflation.  Education inflation is a result of the costs of education rising faster than the average income, and this rate of inflation is higher than the rate of general inflation in most countries. The only way to beat education inflation? Start investing early. FAQs What is important when choosing a college? The most important criteria for choosing a college for your child are the course and their reputation in that field. For example, if your child wants to study business, they should aim for universities like Harvard, Columbia, University of Pennsylvania, and MIT. Other factors to consider are rank, ROI of the university, acceptance rate, qualifications, and eligibility criteria as well as the fees and cost of pursuing the course. It's important to look at scholarships, application waivers, and the placement opportunities offered by the college. How do I choose the right college for my child? The right way to choose a college for your child is to plan ahead. Find out which course your child wants to pursue, and check out the best colleges and the best country to pursue that program. The next step is to figure out the future cost of college for the program. You can use the college cost calculator to determine the cost of tuition fees and living expenses, adjusted to inflation and price increase. How to plan for college? The most important aspect of planning for college includes cost and tuition fees. There are multiple costs involved in sending your child off to college such as tuition fees, accommodation, travel, books, stationary, lab expenses, and miscellaneous expenses. Tuition fees and accommodation are the two biggest expenses that parents need to bear, thus, starting an education fund after determining the costs is the best way to plan for college. Conclusion The above-mentioned points prove why simply looking up dream colleges for your kid is not enough. To be practical, financial backing is one of the most important factors in this matter. Plan ahead. Diversify your investments. Provide your child with the future that they deserve.

To get started with family investments, you need to make a list of goals you want to invest towards. These will create different funds that can be utilized for your family's needs when those moments arrive. This might be your first time as an investor. Worry not for it is always a good time to start investing - be it as a collective unit or individually. However, if you are investing as a family, there will be some added responsibilities.  You can follow a few pro tips so as not to get confused when you have more than one investment to deal with.  Separate investments from savings  Investments are a lot like savings. We invest or save money for future use. But investments are a better method of securing your future because, unlike your savings, investments can generate more wealth by themselves. Thus, to enjoy the blessings of compounding, you are advised to separate your savings and investment. This means that you are required to not mix them up. It also means that you can have separate saving goals and investment goals. List down your saving goals and investment goals so that you do not lose sight of them. Keeping track of this will also help you decide how much money you can afford to invest depending on your income and expenditures.  Fixing your investment goals Once you can tell your investments apart from your savings, the next step is to compartmentalize your investments. Like savings, investments must also be divided according to different financial goals. That is to say, do not put all your money in one place with just one goal in mind. Divide your priorities and list them down. It is advisable to separate your personal financial goals from your family goals. Your investments can be directed towards creating funds for emergencies, healthcare, childcare, education, housing, retirement, and so on. These are the common needs of a family unit but you might have special requirements. Prepare your list of priorities accordingly.  Creating diverse investments  Simply compartmentalizing your investments is not enough; you are also required to diversify your investments. The trick is to invest in different places instead of investing in the same company stock or fund.  You must remember that, as a family, your investment goals can be quite distinct and miscellaneous. They vary not only in terms of the time you can give for the money to grow but also in terms of the amount you can invest in the first place. There are other factors like the level of risk involved and the percentage of returns you will enjoy in the long run. There are various kinds of mutual fund schemes you can opt for - large-cap equity funds, small-cap equity funds, mid-cap funds, debt funds, taxing saving schemes, and so on.  When you diversify investments, you play safe by ensuring that if you incur a loss on one investment, it will be balanced by the profits earned on another. Moreover, you can invest in International Equity funds to satiate goals like your child’s education abroad. This will ensure that you do not get affected by the market fluctuations of the Indian stock market. Also, your returns will have more value because a foreign currency like the US dollar is more stable. FAQs What should a family invest in? Investing as a family is important, from starting a PPF to SIP for mutual funds, you can explore a huge set of diverse options. Remember, investing is different from savings so make sure you do both as a family because there are many expenses to care for. What is the number 1 rule of investing? The number 1 rule of investing is to start early and never lose money. The power of compounding helps you save money and generate wealth for big goals like education, buying a house or starting a fund for travelling. What do 30 year olds invest in? There are many investment options for 30 year olds such as stocks, ETFs, mutual funds, etc. What are 3 good investments? Stocks, index funds, mutual funds and ETFs are 3 categories of investments that are considered good. Conclusion When you make investment decisions as a family, your kids learn from you. Thus, as a financial role model, your responsibility increases. As a married person, sharing investment goals with your partner as well as having separate individual funds is an example of healthy investing. This is the most organized way to make sure that one fund does not get compromised to fulfill a goal it was not originally meant for.  Similarly, try not to use up your life savings or retirement fund to send your kids abroad for a college education. Only prior well-planned investments can prevent such bewilderment from occurring. Investing systematically also means zero stress in your retirement life. Consult an expert advisor to get the right plan TALK TO AN EXPERT

USA is known for its technological advancements. Afterall, it is home the top 10 Schools of Technology in the USA! If you are going through indecision regarding choosing the best college for technology in the USA or are confused about your options, this is the blog for you.   1. New Jersey Institute of Technology  The New Jersey Institute of Technology, located in Newark city of New Jersey, is counted among the best colleges in the country. One of the perks of studying at this public university is that it is located in one of the prettiest cities in New Jersey. The other perk is, of course, the high rate of placements that over 90 percent of the students are known to enjoy every year. The degrees are offered in interesting subjects like biometrics, computer science, information technology, and so on.  2. Illinois Institute of Technology  Located in Chicago, Illinois Institute of Technology is known for offering degrees like Bachelor, Master, and research to prepare students for exciting jobs of the future. The subjects covered by these courses include artificial intelligence, theory of computation, information and communication technology, cyber security, and so on. 3. Rochester Institute of Technology The Rochester Institute of Technology is located in Rochester city of New York state. It is considered one of the best when it comes to schools of technology in America because it has an impressive employment rate that crosses 70 percent. Innovative and enticing courses are taught here including game design and development, computing exploration, new media interactive development, human-centered computing, software engineering, and so on.  Additional read: What are the best-fit colleges? 4. Rensselaer Polytechnic Institute Troy, a city in Rensselaer County of New York state, houses one of the best technical colleges in the US - the Rensselaer Polytechnic Institute. Part of the legacy of this institution is also because it is one of the oldest. It offers M.S., B.S., and doctoral degrees in computer science. The renowned department of computer science incorporates interesting subjects like artificial intelligence and machine learning. The campus is also well-known for its technology park that spans over 1250 acres and its on-site business incubator.  5. Stevens Institute of Technology  Stevens Institute of Technology is located in New Jersey, right across the river from New York state. It is most prominently known for a particular program it offers - the cybersecurity education program. Stevens is also famous for ensuring one of the highest placement rates in the country. Students can earn patents or collaborate with investors to work on their projects. The subjects covered are data science, cybersecurity, and computer science. 6. Georgia Technology Institute Another public institution located in Atlanta, Georgia, that ranks among the top 10 colleges in the US for technology is the Georgia Technology Institute. Other than being one of the best schools of technology, it is also one of the highest-rated for research. It offers employable degrees in courses like mechanical engineering, industrial engineering, computer and information sciences, bioengineering, and biomedical engineering, among others.  7. Lehigh University Located in Bethlehem, Pennsylvania, Lehigh University offers B.A. as well as B.S. degrees. Other than the core courses in computer science and business, it offers exciting electives in robotics, artificial intelligence, bioinformatics, data mining, mobile app development, and so on, thus prepping students to be the best performers in a corporate setting. 8. Michigan Technological University Michigan Technological University in Houghton city of Michigan state might not be the biggest institution in the US but it is one of the best when it comes to job placements. B.S. and M.S. degrees are offered here alongside research. Some very interesting courses taught here include human-computer interactions, parallel computing, and virtual environments.  9. Stanford University Stanford is unanimously considered one of the best schools on a global scale. No wonder it is one of the most hard-to-get-in institutes of technology. It is not simply the percentage of placements that make it a top institution in the country. The courses offered are also one-of-a-kind. These include biocomputation, artificial intelligence, human-computer interaction, and graphics among others. 10. Massachusetts Institute of Technology  MIT is the best, be it technology or any other discipline. Massachusetts Institute of Technology is considered the most prestigious among the top 10 colleges for technology in the USA and is located in Cambridge city of Massachusetts. The Department of Computer Science offers B.S., M.S., and doctoral degrees in data science, electrical science, and engineering, among others.  FAQs What is the number 1 tech school in the US? The best tech school in the US is Massachusetts Institute of Technology (MIT). It has the lowest acceptance rate and reputation of launching world's most talented founders. What college has the best technology program? The colleges with the best technology program in the USA: New Jersey Institute of Technology Illinois Institute of Technology Rochester Institute of Technology Rensselaer Polytechnic Institute Stevens Institute of Technology Georgia Technology Institute Lehigh University Michigan Technological University Stanford University Massachusetts Institute of Technology What college is #1 in the US? The #1 college in USA is Harvard University. Conclusion It is important to go through the details of the chosen course offered by these premiere institutions way ahead of time. This way you can be well prepared for the application procedure in case you want to opt for an education loan. You will also know if you need to develop certain technical skills that will make you a better candidate. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Confused about how to get started with a fund for your child’s college education? Do not worry the stress of saving for college is quite natural. It is, however, avoidable. With certain smart steps, you can smoothly ensure the best for your child.  A college education is, in most cases, the final step before you embark on a whole new venture, namely your career. This is why having a proper college education is so crucial. To ensure that your kid gets to go to their dream institution and cherish their college life, you must start getting prepared as soon as possible.  College savings go a long way in securing a lot of things. It takes half the stress away in your retired life. It inspires your child to aim higher, unperturbed. A family that grows in the culture of financial regulation stays prepared to take on future monetary challenges. Saving for college is one such healthy habit that you should inculcate as your child’s primary caregiver and later pass it on to them as they come of age.  Now let us discuss some wise ways of building up that college fund.   1. Start early  The more time you devote to creating college savings, the more money you can accumulate. Going by that simple logic, time is money. You can even start before your child is born for that matter. Yes, college savings can be part of your preliminary family planning.  In fact, starting early helps in steering clear of all kinds of confusion when the actual moment arrives. You will not be required to compromise your retirement savings to make up for your kid’s dream college. This brings us to the next pro tip for college savings. 2. Organize your savings  The virtues of organization and compartmentalization are not just for college savings. Life itself works on such discipline and decorum. If you do not list out the various things you have to save for, you will always end up mixing up finances. For example, if you use up the savings meant for emergencies to help your kid get admission to a fancy college, that leaves you vulnerable to future crises. It is advisable to open a separate savings bank account meant for your child’s education. Once your child grows up, you can turn them into the beneficiary of that account.    3. Diversify your investments  Investments, unlike savings, generate wealth. Thus, like savings, it is beneficial to get started with investments as soon as possible. Investing in mutual funds can be an easy, stress-free, and lucrative option.  Nowadays parents are also advised to invest in foreign stocks because there is a high chance of their child pursuing a global education. Moreover, a college education abroad is not just about the tuition fee, it is also about the cost of living. When you make money in a foreign currency, you can counter the problem of education inflation that plagues the college lives of students from Asian countries desiring to study in the West. 4. Involve your child  Last, but not least, it is very important to involve your child in financial affairs that concern their future. As your child grows up to be sensible enough to understand the basics of how money works, start teaching them about the income-expenditure ratio and the art of saving. You can encourage them to save whatever they can every month from their pocket money. As they grow older, educate them on market trends and how investments work. This way the stress will not just be on your shoulders as you grow old. In fact, the idea that your ward is well-informed on such affairs will ease most of the stress of family life.  Conclusion Children can not learn to be judicious with money if they are not taught to be so on a day-to-day basis. If you can get your kid involved in the whole procedure of college savings, they will also learn to do effective budgeting when they are on their own in a foreign city or country. FAQs How do I start saving money for college? The best way to start saving money for college is to start early. If you are a parent then start saving for your child's education when they are as young as 2 -3 years. The sooner you start building a fund for them, the bigger it will grow. If you are preparing for your own studies then investing in mutual funds is also an option. Time is of great value, try to start as early as possible to get ahead. Is saving for college a good idea? Saving for college is a great idea for parents. It helps you build a fund for your child's education, allows you to meet different financial goals, and secures a good life for your children. At what age should you start saving for college? The best age to start saving for college for your children is when your child is young. It is ideal to start when they are 1-2 years old. TALK TO AN EXPERT

Wondering if investments are a good option for your child’s future? Not sure when or where to start? This article details why early investments not only serve the purpose of helping your kid realize their dreams but also secure the entire family’s future simultaneously.  Now there is a fine solution to avoid all kinds of bewilderment and anxiety surrounding the expenditure for your child’s college education. It is called early investment. Be it investing in mutual funds, or directly into stocks, investing from the beginning of your family life is the way to go. Especially, if you have children or planning to have kids, now is the time to begin if you haven’t already begun.  Here is a list of reasons why investing early is good for your children’s future. 1. Planning is key Plan your investments like you plan your savings - smart and quick. Savings play an important role in building up an education fund for your kid. But savings alone are not enough to accumulate enough wealth. This is where investments come in.  Break up your investment goals like you would with your savings. Your emergency fund or retirement fund should not get muddled up with your kid’s college fund. Don’t worry about the exact amount of money you ought to invest. Start with small amounts depending on how much you can spare from your income. 2. Scope to diversify investments  Part of your planning for investments should be to decide how to diversify them. For example, you can read up on how different mutual fund schemes work and decide on investing in more than one. This way, you will not be at the sheer mercy of market fluctuations.   You are also advised to go for international equity stocks if you expect your kid to pursue their college education abroad in the future. Investing in foreign stocks is an effective way of balancing the pressure of education inflation. The earlier you begin, the more time you will have on your hand to patiently do your research or even consult a financial expert if required.  3. The boon of compounding  The simplest logic behind indulging in early investments is the same as the logic of early savings. With more time, a larger amount of wealth gets accumulated. But investments enjoy an added benefit - compounding. The extra amount of money you earn in the first round of investments later adds to the amount you originally invested. This means your money will be multiplying at increased rates as time goes by. This is also why investments are a superior option when compared to saving and more importantly, why you should start investing immediately.  4. The most secure future  Investing early in your child’s future education is not simply about securing their future. It is also about creating a hassle-free retirement life for yourself. Now even if your child desires to go to a foreign institution, you will be able to back them up without having to sacrifice your retirement fund.  Moreover, in most cases, the tax liability is way less when you start investing at the beginning of your career. This way you save more money. For later, you can go for tax-saving investment options like ELSS to make the best out of your investments. SIPs make investing even more effortless as you will not have to worry about it manually investing your money every month.  5. Setting an example for your kids  If you are a new parent or have a kid on the way, this tip is specifically directed toward you. It is important to remember that kids learn by imitating adults. When you teach them the benefits of saving and investing early, they start growing a consciousness that will shape their financial habits when they grow up.  Make your kids a part of the investment plan as soon as possible. You can later turn them into the beneficiaries of the funds you have built for them. By that time, they will be adept at managing the economic resources at their disposal.   FAQs Why investing early is so important? Investing early is important. It helps you find a sizable fund for your child and family's financial goals. Whether its paying for your child's education or buying a house, investing can help you achieve financial goals. What are 3 benefits of investing? The 3 benefits of investing are: Beats inflationary prices Helps you grow wealth and meet different financial goals Allows you to reap benefits of compounding Why is education called an investment? Education is an investment in itself because it is the means to an end. End goal like better lifestyle, job opportunities and personal growth. It is the best way to grow as an individual and provide a better life to yourself and your family. Conclusion Investing early in your kid’s college fund not only takes away the pressure of student loans but also helps them focus on academics and their career. Consult an expert advisor to get the right plan  TALK TO AN EXPERT

Introduction The common myth about student loans is that they apply to only students who come from underprivileged family backgrounds. While education loans are crucial for meritorious students from not-so-well-to-do families, they can be a go-to event for families that can afford to pay for their kid’s education. You might wonder, why go for education loans when you have the money? Well, as understated as they are, education loans can help you inculcate some healthy monetary habits. They can help you compartmentalize your finances quite efficiently. Moreover, they come with a range of benefits.    https://www.youtube.com/watch?v=6eNtxkgpAbk a) Putting away pressure from other savings  A household runs on a variety of expenses, which is why it is so important to break these down. You can categorize your monthly income into expenditures and savings. When you compartmentalize, you can have some level of clarity on how much you would like to put away as savings. Saving for your child’s education is a brilliant idea but it is not entirely opposed to applying for education loans. This means that savings and loans are not alternative methods of securing your child’s education. In fact, they can go hand in hand in helping you manage your finances most effectively.  For example, covering all of the expenses related to your kid’s education it can take away all the strain on your savings and investments. You will no longer be required to liquidate your fixed deposits and mutual funds before their maturity period.  https://www.youtube.com/watch?v=O9P78xefVvQ b) Financial disciplining  Having money put away for your child’s education is a great decision on your part but that should not come in the way of your child learning to be self-dependent. In fact, education loans are a great way to teach your kid to manage their own finances.  It is a great start to the art of setting financial goals and meeting them no matter what. This kind of financial discipline can go a long way in teaching them to be responsible beings as they grow up.  Apply for Education Loans c) Creditworthiness & its rewards  Student loans are a great way to build credit. With the increasing credit score, your child will be qualified for future loans of this nature. It will instill self-belief in them regarding their capacity to be self-sufficient.  With education loans, you get to borrow money at relatively lower interest rates. On top of that, an impressive credit score makes your child more qualified to avail of future credits at low-interest rates.  d) Crucial if you are planning to go abroad  Education loans are particularly useful if the plan is to go out of the country for higher education. Global education takes into account not only tuition fees as an expense but also the cost of living, among other things. You should also consider that the value of the Indian currency has been depreciating for many years against most foreign currencies like the US Dollar. As such, the cost of sending your child abroad becomes exponentially high when weighed against the cost of sending them to a different city in India for higher education.  Thus, in most cases, your savings will not be adequate to support your kid’s education abroad, unless you have been saving for a child's education from an early age. If the candidate is worthy enough of the financial support, student loans are not only easy to avail, of but also within the capability of students to pay off simultaneously as they receive their degrees from reputed institutions abroad. Start Investing in Mutual Funds e) Tax benefits  Last but not least are the tax benefits that come as an added advantage to availing of education loans. Under Section 80E of the Income Tax Act of India, the interests paid on education loans can be claimed as deductible. This means although tax benefits can not be applied to the principal amount of a loan, one can be exempt from paying the interest amount. Once your taxable income has been evaluated, you can avail of this tax benefit on your interest money without any higher caps. Such benefits are usually availed either by the candidate who is pursuing an undergraduate or postgraduate course or by their legal guardian.  FAQs Is it wise to take a student loan? Yes, it is wise to take a student loan if it can help you sponsor your education or your child's education. Depending upon the interest rate, the repayment horizon, and the ROI of your course, you can determine whether or not you can afford the EMIs on your salary. What are the benefits of availing of an education loan? The biggest benefit of availing an education loan is the ability to finance your studies. It helps students across the globe pay for college and build a career for themselves. Other benefits of taking an education loan are affordable interest rates, grace period and repayment flexibility for students, tax benefits, help build credit, and help you save your savings for other financial goals. What are the disadvantages of education loans? There are many disadvantages of education loans - High interest rates and costly EMIs Loan repayment can last up to 15 - 20 years Students have to pledge collateral if the amount is higher Non-payment can lead to heavy penalties and affect your credit score Can induce stress and increase student debt in case of non-payment Conclusion Education loans are definitely a good idea because they can ease up not only your child’s educational path but also their prospective career routes. There are various kinds of education loan schemes available in the market. The things that you must consider while making this choice are low-interest rates, tax benefits, credit limits in the case of global education, and so on. Weigh your options carefully while choosing the best one for you.

While investing or saving, we have always come across one thing, “Be prepared for long-term goals”. We are always advised to save early to fulfill our long-term goals, objectives, and dreams. But, what about the short-term goals? What about an emergency corpus? How do you pay for or fulfill your immediate monetary requirements?  The answer to all the above goals is answered in this article! What are short-term goals?  Short term goals are something you want to do in the near future which can be today, this week, this month, this year, or even within two years.  Some examples of short-term goals in investment are: Paying for your child’s school fees every year.  Purchasing a smartphone.  Purchasing a laptop.  Purchasing jewelry for an occasion, etc.  Short-term goals are characterized in the following ways: They’re specific.  They’re measurable  They’re achievable  They’re relevant  They’re time-bound How can you save for short-term goals?  There are two main ways of saving for short-term goals with very low-risk levels.  Savings account: Keeping money or maintaining some cash balance in your savings accounts is one of the ways for achieving your short-term goals. But one main drawback of this method is that the interest on savings accounts is not at par with the inflation rate. This may cause you to lose money over time.  Mutual funds: For short-term goals debt funds are the best option. Based on the investor’s time horizon and risk appetite there are also various subcategories in debt funds for investors to choose from. These funds generate returns that are at par with inflation.  Best debt mutual funds for short-term goals  Now that we know what investment mode to choose, let’s look at some debt funds that are performing well. Fund name Annualized Returns (1yr) (%) Annualized returns (3yrs) (%) Short Term Fund Aditya Birla Sun Life Short-Term Fund 4.937.03ICICI Prudential Short-Term Fund 5.467.15 Banking & PSU FundUTI Banking & PSU Debt Fund 10.557.43Corporate BondICICI Prudential Corporate Bond4.816.63Aditya Birla Sun Life Corporate Bond Fund4.326.77Money Market Funds (for immediate short-term goals)Aditya Birla Sun Life Money Manager Fund3.014.92HDFC Money Market Fund2.954.88 When you have a time horizon between 3-5 years, you can also opt for Hybrid funds as they give you the added advantage of equity exposure along with debt diversification.  The above-mentioned funds are suitable for a time horizon of fewer than 3 years and for investors with a very low-risk appetite.  FAQs What are short-term goals? Short term goals are something you want to do in the near future which can be today, this week, this month, this year, or even within two years. Which mutual funds are best for short term? Here are some mutual funds for short term - Aditya Birla Sun Life Short-Term Fund  ICICI Prudential Short-Term Fund  HDFC Money Market Fund This is not an investment advice. Please consult a financial expert for investing in mutual funds for short-term goals. Are mutual funds good for short term investing? Mutual funds are good for short term investing. There are some mutual funds that you can invest in for 3-4 months. These funds are likely to get you better returns than fixed desposits and savings account. While planning for investments to achieve a goal, always consult an investment advisor who will help you with your goal-based investment journey in detail. Consult an expert advisor to get the right plan TALK TO AN EXPERT DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

Financial freedom is on the wish list of everyone who understands its importance in living a fulfilling life. So often, we get caught up with just working to pay the bills, rent, and everything else that enjoying life is left for a tomorrow that’s always still coming.  As a parent, financial freedom is the greatest gift you can give your child and we’re here to help you with that goal. Here are four things that you can do as a parent to help your child achieve financial freedom.  1. Help them understand how money works Everyone who has trodden the path to financial freedom has taken the time to understand how money works and the role that it plays in their life. Of course, to say that it just buys you things is like saying that cricket is just hitting the ball with a bat. It negates the skill, strategy, and work that it takes to be good at the sport.  You can help your children with financial literacy by talking to them about the basics, introducing them early to the concept of finance, and encouraging them to read books and watch movies/documentaries on the subject. This will help them see through the “transaction” aspect and beyond, laying the foundation for a greater understanding.  2. Inculcate habits that will help them Great parenting is so often just inculcating the right habits. Teach them the value of saving and investing very early with a piggy bank. Be precise with the pocket money that you give them and make sure that it is neither too much nor too little. Encourage them to create a budget for their expenses and teach them how they can save more.  These habits will give shape their financial mindset which is going to help them achieve financial freedom. Create a bank account for them when they are eligible and get them excited about financial institutions such as equity markets and their functioning.  3. Do not burden them with student loans or other debt Financial independence is surely a scalable path but any kind of debt means that your child is starting the race far behind everyone else. Good education always comes at a considerable cost and student loans seem like the easy way out, but they often end up being the reason why young graduates stick around in unfulfilling jobs. So what’s the better way?  Early planning on your part can help save your children from this kind of debt. With the use of platforms like EduFund, you start investing early in your child’s education. This way, it is neither a burden on you nor on your child. An education cost calculator can help you find out how much your child might need for a good education and help you plan things out.  And only in the rarest of situations, if you still happen to fall short, you can opt for student loans that don’t burden your child entirely.  4. Be their financial role model Your children learn things by looking at you tackle life. The easy way of teaching them the art of budgeting would mean including them in the conversation when you sit down to budget. Similarly, show them your investment portfolio, and show them the kind of diversification you are hoping for and why.  Tell them how much you save and why. They answer their curious questions patiently. Tell them why you could buy that new car but why you wouldn’t (right away). Teach them about debt and when it is good and when it is bad.  When your children grow up looking at you as their financial role model, they will try to replicate those same habits and that would help them achieve financial freedom.  FAQs What is the fastest way to achieve financial freedom? The fastest way to achieve financial freedom is to set financial goals,, determine how much you need to retire and start working towards the goals. Investments, creating multiple sources of income and sticking to the budget are some ways to achieving financial freedom. It is important to have assets that provide you with a regular income and help you manage your finances on a daily basis. What's the 50/20/30 rule? 50/30/20 rule is a budgeting rule for financial management and success. The idea is to divide your income into three categories, spending 50% on needs, 30% on wants, and 20% on savings. How can I be financially free in 10 years? Financial freedom means different things to different people. It is important to pen down your goals, the amount you need to be financially free and assess the ways to achieve that goal. There are some tried and tested ways like investing in mutual funds, creating multiple incomes, investing in stocks, starting a retirement fund that can help you achieve financial freedom. What are things that you can do as a parent to help your child achieve financial freedom? Help them understand how money works Inculcate habits that will help them Do not burden them with student loans or other debt Be their financial role model Conclusion The topic of financial literacy has been gaining footing in the global dialogue for a while. It is not such a taboo subject anymore given the rise of the millennials and their financial leanings. If you have children or are planning to have children anytime soon, make sure you familiarize yourself with the topic of financial literacy today. Consult an expert advisor to get the right plan TALK TO AN EXPERT