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What is Rupee Cost averaging?

What is Rupee Cost averaging?

Have you always heard Fin Gods in your circle saying it is next to impossible to time the market? Have they also told you that “Buy Low, Sell High” is the mantra that you should follow when you are investing in equities? Well, you have a way to bypass this myth and build a large piggy bank for yourself despite the fluctuations in the market. All you need to do is have some financial discipline and make sure that you invest a fixed amount on the same day every month without breaking the chain. Rupee cost averaging As the name suggests, you are averaging your costs and buying the mutual fund units accordingly. For instance, when the onion prices are hiked up to Rs 80/Kg, you cut down on your onion consumption and limit yourself to say 1 kg/month. But when the prices are on the lower end, you would want to feast on various onion delicacies like pakodas, spicy sabzis and garnish every dish with onions. Similarly, you would want to buy lesser units of mutual funds when the prices are high and more when the prices are low (since the markets are high/low, the underlying securities or stocks would be high/low ? Increased/decreased price of the mutual fund units invested in them). As an investor, however, I would give into the market euphoria and buy when the markets are high and sell the units when the market has taken a downturn (in the hope to limit my losses). As one can see in the above table, the average price that was in the market was Rs 52.14 and when one had invested in a SIP, the average price at which the units were purchased was Rs 44.93. Averaging gives you the advantage of riding along with the market. A SIP could be considered one of the best strategies in market up as well as downturns. Invested lump sum in April itself7000Price/Unit50Number of Units140Investment value in March - 21*2800Alternatively, if invested in SIP as followsSIP Investment Value in March -21*            4,818.15  Consider, an investor who invested in the market by deploying a lumpsum amount. For example, in the following case, the investor buys the units in the month of March 20 (consider that the investor attempted to time the bottom, and the market was going down before the investment). Market Downturn AmountPrice/UnitNumber of unitsFeb-2050050                  10.00 Mar-2050046                  10.87 Apr-2050045                  11.11 May-2050042                  11.90 Jun-2050040                  12.50 Jul-2050035                  14.29 Aug-2050032                  15.63 Sep-2050029                  17.24 Oct-2050025                  20.00 Nov-2050024                  20.83 Dec-2050022                  22.73 Jan-2150021                  23.81 Feb-2150020                  25.00 Mar-2150020                  25.00 Total7000                 240.91  FAQs What is Rupee Cost Averaging? In the rupee cost averaging approach, an investor keeps investing a fixed amount of money at regular intervals irrespective of market behavior. What is rupee cost averaging for example? The rupee cost averaging approach allows an investor to buy more when the market is down and less when the market is high. For instance, when the onion prices are hiked up to Rs 80/Kg, you cut down on your onion consumption and limit yourself to say 1 kg/month. But when the prices are on the lower end, you would want to feast on various onion delicacies like pakodas, spicy sabzis and garnish every dish with onions. What is the benefit of cost averaging? Cost averaging is the way to spread out your investments over a period of time. It allows you to invest your money in equal portions, at regular intervals, regardless of the ups and downs in the market. You can get started on your investment journey with a SIP on the EduFund platform. You have all the top mutual funds in the country to choose from and a corpus to be made.
Aditya Birla Sun Life Mutual Fund: NAV, Performance & Latest MF Schemes

Aditya Birla Sun Life Mutual Fund: NAV, Performance & Latest MF Schemes

Aditya Birla Sun Life Mutual Fund is a joint venture between two well-known brands- Aditya Birla Group from India and Sun Life Financial from Canada. The strategic joint venture blends the rich experience of Aditya Birla Group in the Indian market and the vast global experience of Sun Life to bring some of the best mutual funds and wealth creation opportunities for customers. The fund was set up in 1994 and has played an important role in expanding the penetration of mutual funds in India. Apart from offering mutual funds, it also offers pension funds, real estate investments, wealth management, and portfolio management services. Based on the domestic average AUM, Aditya Birla Sun Life is considered one of the largest fund houses in the country. As of March 31st, 2020, the total fund size of the AMC has reached a whopping ₹247521 crore. Known for its impressive and diversified product suite, strong performance, well-defined investment strategies, and simplified processes, the fund has grown its investor portfolio count to almost 7 million. The Aditya Birla fund house deals in 4 main fund classes- Equity Funds Debt Funds Income Funds  ELSS Funds Having completed more than 20 years in its journey, all these funds have a good credit rating and offer excellent wealth creation solutions to their customers. Aditya Birla Sun Life Mutual Fund Name of the AMCAditya Birla Sun Life Mutual FundFund Setup DateDec-23-1994Date of IncorporationSep-05-1994SponsorAditya Birla Capital Ltd. / Sun Life (India) AMC Investments Inc.TrusteeAditya Birla Sun Life Trustee Private LimitedChairmanMr Kumar Mangalam BirlaCEO / MDMr. A. BalasubramanianCompliance OfficerMs. Hemanti WadhwaInvestor Service OfficerMs. Keerti GuptaAssets ManagedRs. 214591.96 crores (as of Jun-30-2020) AuditorsMessrs Deloitte Haskins & Sells LLP - For Asset Management Company / S. R. Batliboi & Company - For Mutual FundRegistrarsComputer Age Management Services Pvt. LtdAddressOne India Bulls Centre, Tower 1, 17th Flr, Jupiter Mill, 841, S.B. Marg, Elphinstone Rd. Mum - 400 013Fax Nos.022-43568110/8111E-mailcare.mutualfunds@adityabirlacapital.comSource - AMFI 10 top-performing Aditya Birla SunLife Mutual Fund Schemes Leveraging the extensive knowledge and deep understanding of Aditya Birla Group along with the global experience of Sun Life, Aditya Birla Sun Life Mutual Fund has displayed consistent performance and become a credible name in the industry.  With over 140 MF schemes across categories, the fund caters to all kinds of investors, regardless of their financial goals, risk appetite, and investment time horizon. Here we are listing ten top-performing Aditya Birla Sun Life Mutual Funds across various fund categories. 1. Aditya Birla Sun Life Digital India Fund (Category-Equity: sectoral) It is an open-ended growth scheme launched on 15 Jan 2099 with the key objective of long-term growth of capital. The fund has a portfolio with a target allocation of 100% equity, with a focus on investing mainly in technology and technology-dependent companies, software, telecom, media, hardware, peripherals and components, and other technology-enabled companies. The fund has a NAV of  ₹98.8 (as of 28 Apr 21). Key information Minimum InvestmentINR 1,000Minimum Additional InvestmentINR 1,000Minimum SIP InvestmentINR 1,000Minimum WithdrawalINR 1,000Exit Load1% for 0-365 Days (1%) and above(NIL). Return Since InceptionCAGR/Annualized return of 11.4% since its launch. Absolute return for 2020, 2019, and 2018 was 59%,  9.6%, and  15.6% respectively. Assets ₹ 1,148 crores (As of 31 Mar 21) Expense Ratio2.6.% (as of 31st March 2021) 2. Aditya Birla Sun Life Gold Fund (category- Gold) An Open-ended fund of-funds scheme, with a NAV of ₹14.5162 (as of 28 Apr 21), it has an investment objective to offer returns that track returns provided by Birla Sun Life Gold ETF (BSL Gold ETF).  This Gold fund by ABSL mutual fund was launched on 20 Mar 12 and comes under the moderately high-risk category.  Key information Minimum InvestmentINR 1,000Minimum Additional InvestmentINR 1,000Minimum SIP InvestmentINR 1,000Minimum WithdrawalINR 1,000Exit Load1% for 0-365 Days (1%) and above(NIL)Return Since InceptionCAGR/Annualized return of 4.2% since its launch. Return for 2020, 2019, and 2018 was 26, 21.3 and 6.8% respectivelyAssets₹212 crores (as of 31 Mar 21)Expense Ratio0.48% (as of 31st March 2021) 3. Aditya Birla Sun Life Index Fund (Category-Index fund) An open-ended index-linked growth scheme, the fund has a NAV of ₹146.259 (as of 21 Apr 21). The objective of the fund is to generate returns that are aligned with the performance of Nifty subject to tracking errors. The fund was launched on 18 Sep 02 and cones under the moderately high-risk category  Key information Minimum InvestmentINR 1,000Minimum Additional InvestmentINR 1,000Minimum SIP InvestmentINR 1,000Minimum WithdrawalINR 1,000Exit Load1% for 0-365 Days and NIL for above Return Since Inception CAGR/Annualized return of 15.5% since its launch. Return for 2020, 2019  and 2018 was 15.2, 12.4 and 3.2% respectivelyAssets₹239 crores (as of 31 Mar 21) Expense Ratio0.64% (as of 31st March 2021) 4. Aditya Birla Sun Life Focused Equity Fund (Category-Equity-Focused) It is an open-ended growth scheme with a NAV of ₹76.7779 (as of 28 Apr 21). Launched on 24 Oct 05, the fund has the objective to offer medium to long-term capital appreciation, by investing mainly in a diversified portfolio of equity and equity-related securities of top 100 companies (based on market cap). Key information Minimum InvestmentINR 1,000Minimum Additional InvestmentINR 1,000Minimum SIP Investment1000Minimum Withdrawal1000Exit Load1% for 0-365 Days and NIL for above Return Since Inception CAGR/Annualized return of 14% since its launch. Return for 2020, 2019 and 2018 was 16%, 11.3% and -4.1% respectivelyAssets₹4610 Crore (as of 31st March 2021)Expense Ratio2.04% (as of 31st Mach, 2021) 5. Aditya Birla Sun Life Equity Fund (Category-Equity - Multi-Cap) An Open-ended growth scheme with a NAV of ₹964.83 (as of 28 Apr 21), the fund has an objective of long-term capital growth through a portfolio with a target allocation of 90% equity and 10% debt and money market securities. It was launched on 27 Aug 98 and is placed under the moderately high-risk category Key information Minimum InvestmentINR 1,000Minimum Additional InvestmentINR 1,000Minimum SIP InvestmentINR 1,00Minimum Withdrawal-Exit Load1% for 0-365 Days and NIL for above Return Since Inception CAGR/Annualized return of 22.3% since its launch. Return for 2020, 2019, and 2018 was 16.5, 8.1 and-4.1% respectively, Assets₹13,026 Crores (as of 31st March 2021)Expense Ratio1.89% (as of 31st March 2021) 6. Aditya Birla Sun Life International Equity Fund - Plan A(Category-Equity-Global) Open-ended diversified equity with a NAV of ₹30.002 (as of 28 Apr 21), the fund has an objective to generate long-term capital growth, by investing mainly in a diversified portfolio of equity and equity-related securities in the international markets. The fund was launched on 31 Oct 07 and is placed under the high-risk category. Key information Minimum InvestmentINR 1,000Minimum Additional InvestmentINR 1,000Minimum SIP InvestmentINR 1,000Minimum WithdrawalINR 1,000Exit Load1% for 0-365 Days and NIL for above Return Since Inception CAGR/Annualized return of 8.5%  Return for 2020, 2019 and 2018 was 13.2, 24.7 and 4.1% respectivelyAssets₹110 Crores (as of 31st March 2021)Expense Ratio2.53% (as of 31st March 2021) 7. Aditya Birla Sun Life India GenNext Fund (Category-Equity-Sectoral) With a NAV of ₹111.99 (as of 28 Apr 21), this one-ended growth scheme has the objective to focus on capital growth by investing in equity/equity-related instruments of companies that are likely to benefit from the rising consumption patterns in India (fuelled by disposable incomes of Generation Next). The fund was launched on 5 Aug 05 and is placed under the high-risk category. Key information Minimum InvestmentINR 1,000Minimum Additional InvestmentINR 1,000Minimum SIP InvestmentINR 1000Minimum WithdrawalINR 1,000Exit Load1% for 0-365 Days and NIL for aboveReturn Since Inception CAGR/Annualized return of 16.6% since its launch. Return for 2020, 2019, and 2018 was 14.6, 14.6 -1.6% respectivelyAssets₹1,937 Crores (as of 31st March 2021)Expense Ratio2.49% (as of 31st March 2021) 8. Aditya Birla Sun Life Balanced Advantage Fund (Category-Hybrid - Dynamic Allocation) The key objective of the scheme with a NAV of ₹66.46 (as of 28 Apr 21) is to generate long-term capital growth and income distribution relatively lower. The fund invests primarily in a dynamically balanced portfolio of equity & equity-linked investments and fixed-income securities. It was launched on 25 Apr 00 and is placed under the moderately high-risk category. Key information Minimum InvestmentINR 1,000Minimum Additional InvestmentINR 1,000Minimum SIP InvestmentINR 1,00Minimum Withdrawal-Exit Load1% for 0-365 Days and NIL for aboveReturn Since InceptionReturn for 2020, 2019, and 2018 was 15.4, 8.1 and 0.7% respectivelyAssets₹3,181 Crores (as of 31st March 2021)Expense Ratio2.06% (as of 31st March 2021) 9. Aditya Birla Sun Life Financial Planning FOF Aggressive Plan (Category-Others-Funds of the fund) The Scheme with a NAV of ₹29.5771 (as of 28 Apr 21), primarily aims to generate returns by investing in mutual fund schemes selected as per the BSLAMC process and the risk-return profile of investors. There are 3 plans under the scheme, each of which has a strategic asset allocation based on satisfying the needs of a specific risk-return profile of investors. The fund was launched on 9 May 11 and is placed under the moderately high-risk category. Key information Minimum InvestmentINR 1,000Minimum Additional InvestmentINR 1,000Minimum SIP InvestmentINR 1,000Minimum WithdrawalINR 1,000Exit Load1% for 0-365 Days and NIL for aboveReturn Since Inception CAGR/Annualized return of 11.5% since its launch. Return for 2020, 2019, and 2018 was 19.2, 6.9 and-2.6% respectivelyAssets₹146 Crores (as of 31st March 2021)Expense Ratio1.33% (as of 31st March 2021) 10. Aditya Birla Sun Life Government Securities Find (Category-Debt-Government Bond) An open-ended government securities scheme with a NAV of  ₹63.6537 (as of 28 Apr 21) has the objective to generate income and capital appreciation by investing exclusively in Government Securities. It was launched on 12 Oct 99 and is placed under the moderate risk category. Key information Minimum InvestmentINR 1,000Minimum Additional InvestmentINR 1,000Minimum SIP InvestmentINR 1,000Minimum WithdrawalINR 1,000Exit Load0.5% for 0-90 Days (0.5%), and NIL above 90 Days Return Since Inception (16th July 2019:CAGR/Annualized return of 9% since its launch. Return for 2020, 2019, and 2018 was 12.1, 11 and 6.9% respectivelyAssets  ₹518 crores (as of 31st March 2021)Expense Ratio1.18% (as of 31st March 2021) How can you invest in Aditya Birla SunLife Mutual via EduFund? Investing in ABSLAMC is quite simple and quick with EduFund, for both seasoned and first-time investors. All you need to do is visit EduFund to pick from a diverse list of chosen funds that are specially designed, keeping in mind the varied risk profile and investment objectives of investors. At EduFund, you can be assured of a quick and hassle-free process of selecting any product from ABSLAMC, The process requires just one KYC formality that will take not more than 5 minutes of your time. Here is the stepwise procedure for investing with EduFund- Step 1: Select the fund(s) of your choice and the amount you want to invest every month. Step 2: Provide all your details. Step 3: Make the payment, and you are done. Other important details - KYC verification through EduFund is a simple process. You can either verify by: i. Using an OTP sent to your Aadhaar-registered mobile number  Or ii. By uploading photos/scan copies of the required documents ID Proofs You need to submit a Xerox copy of your PAN Card, Aadhaar Card, Passport, Voter ID, Driving License or any other central government-approved documents Residential proofs For residential proof, you need to submit the same ID proof (except PAN) if the address on it is your current residential address. Other documents that you can use include a rental/lease agreement, utility bill, and ration card. In case your permanent address and correspondence address are different, you need to submit proof for both. Leading fund managers at Aditya Birla Sun Life Mutual Fund ABSLAMC has a powerful mix of experience and expertise in their fund managers who have the qualification and acumen to identify opportunities and the ability to maneuver investor portfolios and help them achieve optimal returns. Here are the top 5 fund managers at ABSLAMC- 1. Mr. Mahesh Patil - Co-Chief Investment Officer Mr. Patil is the Co-Chief Investment Officer (Equity) at ABSL fund. He holds an Engineering degree from VJTI in Mumbai and an MBA in Finance from Jamnalal Bajaj Institute in Mumbai. Apart from this, he is also a charter holder from ICFAI in Hyderabad.   With an extensive industry experience 27 years, he joined Aditya Birla Sun Life Mutual Fund in 2005 and was later promoted to Co-Chief Investment Officer (Equity) in 2008. Heading a team of 20 expert analysts and fund managers, Mr. Patil and his team manage funds to manage a massive amount of 92,000 Crores in the equity market both in the form of Birla Sun Life One Time Investment and  Birla Sun Life SIP. Being an Equity expert, Mr. Patil manages various top-rated equity funds, including Aditya Birla Sun Life Frontline Equity Fund, Aditya Birla Sun Life Focused Equity Fund, and Pure Value Fund. 2. Mr. Maneesh Dangi - Co-Chief Investment Officer Managing various fixed Income-related funds, Mr. Dangi has rich experience and expertise in handling Debt Funds, Corporate Bonds, PSU Debt Funds, and much more.  He heads a big team of more than 20 analysts and fund managers with expertise in handling a portfolio of more than 1.6 lakh Crores both in the form of Birla Sun Life SIP and Birla Sun Life One Time Investment. Among the key funds managed by Mr. Dangi include Aditya Birla Sun Life Short-term Opportunity Fund, Aditya Birla Sun Life Banking, PSU Debt Fund, Aditya Birla Sun Life Corporate Bond, and Aditya Birla Sun Life Credit Risk Fund. 3. Mr. Ajay Garg - Sr Fund Manager An electronics engineer from Bangalore University and an MBA in Finance from Mumbai University, Mr. Garg also holds a degree from Hartmann College Class of 1987. Before joining the ABSL fund, he had been working with the American Express bank and other stockbroking firms. Want the extensive experience of more than twenty-five years of managing equity-oriented funds for Aditya Birla Sun Life Mutual Fund, Mr. Garg is an expert in equity. 4. Mr. Anil Shah - Sr Fund  Manager As a senior fund manager with Aditya Birla Sun Life AMC Limited, Mr. Shah brings with him more than three decades of rich professional experience in Indian equity markets. Before joining ABSLAMC in 2012, he was a part of RBS Equities (India) Limited for around 15 years. Mr. Shah is a qualified CA and cost accountant by qualification and executes and regularly reviews various investment strategies for equity portfolios. 5. Mr. Kaustabh Gupta - Sr Fund Manager A senior fund manager with Aditya Birla Sun Life AMC Limited (ABSLAMC), Mr. Gupta brings with him 15+ years of extensive investment experience. He has previously worked in areas such as treasury finance and liquidity management in various capacities. Me. Gupta is a chartered accountant and CFA (Level 2) by qualification. Before joining ABSLAMC in 2009, he worked with ICICI Bank for 5 years in the Asset Liability Management team. Why should you invest in Aditya Birla Sun Life Mutual Fund? Aditya Birla Sun Life Mutual Fund works with the mission of maximizing investors’ wealth and becoming a leader in the integrated financial services business. The AMC follows a long-term, fundamental approach to investments to identify companies with strong fundamentals and excellent growth prospects to be able to offer profitable and sophisticated investment schemes to the investors. The key focus of ABSL fund's financial planning department is to prioritize clients’ requirements and create niche solutions leading to desired results. With expertise in screening, while dealing with clients, the team at ABSL fund connects with clients directly and evaluates their financial status, investment goals, tenure, and source of income to build up a tailored financial plan using the deliberated process of financial planning. ABSLAMC consistently review the performance of the schemes to analyze their returns’ potential 8n various market scenarios regularly. Further, the team at ABSL continuously measures the risk factors of the schemes to bring out the plans that best suit the investors' risk appetite. Apart from this, the key benefits of ABSL funds schemes include- ABSL saving solutions benefits Helps you save money Offer available liquidity Much better & tax-efficient return  compared to FD and saving accounts  The key commitment of ABSLAMC is to enhance mutual fund penetration in India. As of May 2019, there are more than 83.2 million mutual fund folios in India, aggregating over 25.43 trillion and Aditya Birla Sun Life mutual fund has played a key role in it.  Select EduFund for investing in Aditya Birla Sun Life Mutual Fund EduFund makes the process of investing in Aditya Birla mutual funds convenient. EduFund's experienced consultants give you customized solutions for all your financial goals. You can start investing from a lowly INR 5,000 and grow your capital comfortably. With EduFund, you get the following benefits: Customized Research -  EduFund's scientific fund tracker screens over 1 lakh data points and 400 financial scenarios to recommend you the best mutual funds.  Invest Less, Earn More - EduFund also offers you the option to invest in US Dollar ETFs and international mutual funds. Customer-Friendly Counsellors -EduFund has professionally trained counselors to handle all your queries and resolve issues to help you create a robust financial plan. No Technical Expertise Required - With EduFund, you do not need to finance experience to understand which mutual fund is the best for you. EduFund does it for you. Secure Transactions - EduFund is RIA-registered and es the best 128-SSL security to enable safe and secure transactions. Use Free Tools - EduFund offers multiple free tools for its customers, including College Savings Calculator, SIP calculator, and more Value-Added Benefits - offer value-added benefits like no commission, free advisory, and nil hidden charges. FAQs Which is the best mutual fund in Aditya Birla Sun Life? Aditya Birla Sun Life Digital India Fund (Category-Equity: sectoral)   Aditya Birla Sun Life Gold Fund (category- Gold)   Aditya Birla Sun Life Index Fund (Category-Index fund)   Aditya Birla Sun Life Focused Equity Fund (Category-Equity-Focused)   Aditya Birla Sun Life Equity Fund (Category-Equity – Multi-Cap)   Is Aditya Birla Sun Life Mutual Fund good? Aditya Birla Sun Life Mutual Fund is a joint venture between two well-known brands- Aditya Birla Group from India and Sun Life Financial from Canada. Based on the domestic average AUM, Aditya Birla Sun Life is considered one of the largest fund houses in the country. The Aditya Birla fund house deals in 4 main fund classes-   Equity Funds   Debt Funds   Income Funds    ELSS Funds   Having completed more than 20 years in its journey, all these funds have a good credit rating and offer excellent wealth creation solutions to their customers. Please get in touch with a financial expert before you consider investing in the fund.   Is Aditya Birla good for SIP?   Aditya Birla Sun Life Mutual Fund works to maximize investors' wealth and become a leader in the integrated financial services business. With expertise in screening, while dealing with clients, the team at ABSL fund connects with clients directly and evaluates their financial status, investment goals, tenure, and source of income to build up a tailored financial plan using the deliberated process of financial planning.   ABSLAMC consistently reviews the schemes' performance to analyze their returns' potential 8n various market scenarios regularly. Further, the team at ABSL continuously measures the risk factors of the schemes to bring out the plans that best suit the investors' risk appetite.   Apart from this, the key benefits of ABSL funds schemes include -   ABSL saving solutions benefits   Helps you save money   Offer available liquidity   Much better & tax-efficient returns compared to FD and saving accounts    Please get in touch with a financial expert before you consider investing in the fund Can I close SIP after 1 year? It is not advisable to withdraw your investment prematurely when you have a financial goal that you are working towards. If you are still sure about withdrawing the SIP amount, you can do it with the help of the agent if you have invested via a mutual fund distributor.   
Best child plan for education and marriage

Best child plan for education and marriage

The best insurance policies can protect your child's financial future and provide flexible payouts at set intervals, enabling them to realize their dreams and achieve life milestones. The best child plan for education and marriage is based on a number of factors such as your long-term and short-term goals for your child, their educational dreams, and preferences. Benefits of child plan A child plan policy can not only secure your child's future but also provide the following extra benefits: 1. Benefit Guarantee Unlike some other forms of investments, a child insurance program gives a secured child education plan. A premium exclusion benefit is a common built-in reward found in many education programs. Whether or whether the parent is still living at the time of maturity, this benefit provides to pay a maturity benefit. Thus, you can protect your child's future by choosing a kid's life insurance policy.  2. Dual Benefit A dual plan is the greatest child education insurance option (investment-cum-insurance plan). The creation of a financial foundation, particularly for children, is one aspect, and peace of mind is the other. This user-friendly designed calculator can help you calculate your investments. The link for this calculator is here.  Five of India's best child insurance programs for 2022  Despite the numerous insurance plans on the market, how can you know which one is the best for your child in India? Here, we've included information on a few of the top child insurance policies to guide you in making the best choice.  HDFC Life Youngster Super Premium Plan  Are you trying to find your child the greatest insurance? This is the greatest kid's policy available for both insurance coverage and investing choices. This unit-linked plan may be utilized throughout your child's life, including during their further education years, their marriage, etc. Some benefits include  The ability to modify the plan to meet the specific needs of your child.  The policy used to pay 100% of the upcoming premiums in the event of the life assured's death.  If the parent passes away while the term policy is in effect, 50% of the premiums are levied as annual income.  The "Save-n-Gain" payment is preferred by the parents.  There are four investing funds offered. Ten, fifteen, and twenty years are the lengths of the policy tenure periods.  INVEST NOW ICICI Pro Smart Kid Solution This is a unit-linked plan that offers comprehensive protection to your child for a better future.   Choose an investment strategy as per your child’s evolving requirements.  This plan offers each- protection to your child. Your child will get a lump sum quantum in case of an unfortunate incident during the policy term.  This plan offers two ultra-expensive payment options (regular pay and single pay).  The benefits of fidelity addition and wealth boosters are offered under this plan.  The range of policy period is between 10- 25 times. INVEST NOW LIC New Children Money Back Plan  Your best option may be the LIC New Children Money Back plan because it covers all of the needs of developing children, such as their education and wedding.   The maturity benefit under this plan is equal to the amount assured plus any relevant bonuses.  This plan provides a longevity reward (equal to 20 percent) of the respondents of the base sum assured) after the insured individual reaches a particular age.  LIC offers discounts for paying a large rate.  Under this policy, you may obtain a loan.  The candidate will get a death benefit under this plan.  INVEST NOW Bharti AXA Life Child Advantage Plan Let us just examine some of the components of this proposal.  Depending on the requirements and demands of your child, this non-linked plan offers two payment choices (money return and endowment).  The benefit of a built-in premium waiver is included in the plan.  You can select the insurance term for this plan.  Section 80C of the Income Tax Act applies to the tax benefit.  For this plan, the minimum and maximum ages for enrollment are both 18 years. INVEST NOW Birla Sun Life Vision Star Plan This program offers guaranteed reimbursements to help you pay for your child's education and protect their future even if you are not around. Several traits include  Both death and maturity benefits are included with this plan.  At the time of maturity, the accumulated incentives will be paid.  After five years of the policy's term, regular payouts.  By selecting different additional riders, you can extend your coverage.  After 2 years, if you quit paying your premium, the policy will still be in effect, albeit on a lower Paid-Up basis.  INVEST NOW Conclusion Examine the terms and requirements of each policy before making an investment decision, then pick the best insurance coverage for kids. Make a good investment strategy after that to make sure your child is as secure as possible. Consult an expert advisor to get the right plan TALK TO AN EXPERT
ICICI Prudential Mutual Fund: NAV, Performance & Latest MF Schemes

ICICI Prudential Mutual Fund: NAV, Performance & Latest MF Schemes

ICICI Prudential Asset Management Company Ltd is a leading asset management company (AMC) in India focused on bridging the gap between savings & investments and creating long-term wealth for investors through a range of simple and relevant investment solutions. The AMC is a joint venture between ICICI Bank, a well-known and trusted name in financial services in India, and Prudential Pie, one of the UK's largest players in the financial services sectors. Throughout these years of the joint venture, the company has forged a position of pre-eminence in the Indian Mutual Fund industry. The AMC manages significant Assets under Management (AUM) in the mutual fund segment. The AMC also caters to Portfolio Management Services for investors, spread across the country, along with International Advisory Mandates for clients across international markets in asset classes like Debt, Equity, and Real Estate. The AMC has witnessed substantial growth from two locations and six employees at the inception of the joint venture in 1998 to a current strength of 1926 employees with a reach across over 300 locations reaching out to an investor base of 6.2 million investors (as of September 30, 2020). The company's growth momentum has been exponential, and it has always focused on increasing accessibility for its investors. Driven by an entirely investor-centric approach, the organization today is a suitable mix of investment expertise, resource bandwidth, and process orientation. The AMC endeavors to simplify its investor's journey to meet their financial goals and give a good investor experience through innovation, consistency, and sustained risk-adjusted performance. The AMC has two decades of rich experience in fund management and still going strong. Over 62 lakh investors have trusted their finances with them. The Asset Under Management is INR 4,05,220.91  Cr as of March 31, 2021, and it has over 68 mutual fund schemes offering an array of investment opportunities. Some of the well-known equity schemes from its stable are ICICI Prudential Bluechip Fund, ICICI Prudential Multicap Fund, ICICI Prudential Midcap Fund, etc., and ICICI Prudential Mutual Fund also offers some good debt funds. Some of the prominent debt schemes are ICICI Prudential All Seasons Bond Fund, ICICI Prudential Debt Management Fund, ICICI Prudential Credit Risk Fund, etc., ICICI Prudential Equity & Debt Fund, ICICI Prudential Balanced Advantage Fund, ICICI Prudential Regular Savings Fund are prominent names in hybrid schemes category. The percentage of schemes beating the benchmark across its various categories for a one-year time period collectively is approx. 72% as of February 28, 2021. ICICI Prudential Mutual Fund has a large team of good fund managers. The fund house’s growth momentum has been exponential and is driven by an entirely investor-centric approach. The AMC endeavors to simplify its investors’ journey to accomplish their financial goals and provide a high-quality investor experience through innovation, consistency, and sustained risk-adjusted performance. Important information about ICICI Prudential Mutual Fund Name of the AMCICICI Prudential Asset Management Company LtdIncorporation Date22 June 1993SponsorsPrudential Plc and ICICI Bank Ltd.TrusteeICICI Prudential Trust Ltd.Trustees' Name1. Mr. P.H.Ravikumar, 2. Mr. Jyotin Mehta, 3. Mr. R. Ranganakulu Jagarlamudi, 4. Mr. Pramod Rao, 5. Mr. Lakshmi Kumar Mylavarapu  MD/CEOMr. Nimesh ShahCIOMr. Sankaran NarenCompliance OfficerMr. Rakesh ShettyChief Investment OfficerMr. Sankaran NarenRegistrar and Transfer agentComputer Age Management Services (P) Limited (CAMS) Unit: ICICI Prudential Mutual Fund, Spencer Plaza, Phase II,S49A, 172, Anna Salai, Chennai - 600 002.India   Contact Person: S V Karthick Babu Contact Number: 1800-419-2267 (Toll-free anywhere in India)044 66073600 (Chargeable)   Email: ICICI Prudential Mutual Fund @ CAMSToll-free Number 1800-200-6666 1800-222-999Email Addressenquiry@icicipruamc.comRegistered AddressICICI Prudential Mutual Fund 1201-1212, Narian Manzil, 23, Barakhamba Road, Connaught Place, New Delhi, Delhi NCR - 110001 10 top-performing ICICI Prudential Mutual Fund Schemes ICICI Prudential Technology Fund (Category- Equity: Thematic/Sectoral) ICICI Prudential Bluechip Fund (Category- Equity: Large Cap) ICICI Prudential Focused Equity Fund (Category- Equity: Growth) ICICI Prudential Long Term Equity Fund (Tax Saving) (Category- Equity: ELSS) ICICI Prudential Sensex Index Fund (Category- Equity: Growth) ICICI Prudential Value Discovery Fund (Category- Equity: Growth) ICICI Prudential Multicap Fund (Category- Equity: Multi-Cap) ICICI Prudential Banking And Financial Services Fund (Category- Equity:Direct Growth) ICICI Prudential Large & Mid Cap Fund (Category- Equity: Long Duration) ICICI Prudential MidCap Fund (Category- Equity: Multi-Cap) 1. ICICI Prudential Technology Fund (Category- Equity: Thematic/Sectoral) This is ideal to generate capital appreciation by creating a portfolio that is invested in equity and equity-related securities of technology and technology-dependent companies.  Key information Minimum InvestmentINR 5,000      Minimum Additional Investment INR 1,000Minimum SIP InvestmentINR 1000Entry LoadNil Exit LoadIf units purchased or switched in from another scheme of the fund are redeemed or switched out within 15 days from the date of allotment 1% of the applicable NAV.Return Since Inception11.96 (Growth) (Date of Inception: March 3, 2000).NAVINR 109.04 (April 20, 2021) (Growth)AUMINR 1817.80 Cr (As on March 31, 2021) 2. ICICI Prudential Bluechip Fund (Category- Equity: Large Cap) ICICI Prudential Bluechip Fund, an open-ended equity scheme, invests predominantly in large-cap stocks. The scheme provides growth and stability to your portfolio as it invests in blue chip stocks, which are market leaders in their industry. The stocks are well-diversified across sectors. Key information Minimum InvestmentINR 100      Minimum Additional Investment INR 100Minimum SIP InvestmentINR 100Entry LoadNil Exit Load1% of NAV for 365 Days. After one year NilReturn Since Inception13.64 % (Growth) (Date of Inception: May 23, 2008).NAVINR 52.15 (April 20, 2021) (Direct-Growth)AUMINR 26467.80Cr (As on March 31, 2021) 3. ICICI Prudential Focused Equity Fund (Category- Equity: Growth) This is an open-ended equity scheme, investing in a maximum of 30 stocks.  across market capitalization. Key information Minimum InvestmentINR 5000    Minimum Additional Investment INR 5000Minimum SIP InvestmentINR 100Entry LoadNil Exit Load1% of NAV for 365 Days. After one year NilReturn Since Inception12.04% (Growth) (Date of Inception: May 28, 2009).NAVINR 38.92 (April 20, 2021) (Direct-Growth)AUMINR 1216.87 Cr (As on March 31, 2021) 4. ICICI Prudential Long Term Equity Fund (Tax Saving) (Category- Equity: ELSS) This is an equity-linked saving scheme (ELSS), that comes with tax benefits as per section 80C of the Income Tax Act, 1961. The fund aims at generating long-term capital growth and invests primarily in equity & equity-related securities of companies. Key information Minimum InvestmentINR 500    Minimum Additional Investment INR 500Minimum SIP InvestmentINR 100Entry LoadNil Exit LoadNilReturn Since Inception19.43% (Growth) (Date of Inception: August 19, 1999).NAVINR  471.58 (April 20, 2021) (Direct-Growth)AUMINR 8310.40 Cr (As on March 31, 2021) 5. ICICI Prudential Sensex Index Fund (Direct: Growth) The important benefit of investing in this fund is that you gain exposure to equities of top-performing stocks across all sectors. Investing in this fund is a better way of diversifying your portfolio. However, as this fund invests only in stocks, the fund may have a direct impact on the market conditions. Key information Minimum InvestmentINR 100    Minimum Additional Investment INR 100Minimum SIP InvestmentINR 100Entry LoadNil Exit LoadNilReturn Since Inception11.99% (Growth) (Date of Inception: Sep 21, 2017).NAVINR  15.11 (April 20, 2021) (Direct-Growth)AUMINR 248.40 Cr (As on March 31, 2021) 6. ICICI Prudential Value Discovery Fund (Category- Equity: Growth) This is an equity mutual fund that invests in value stocks. It is an open-ended scheme, it invests in stocks that are undervalued and are expected to perform well in the coming days. As this scheme invests in value stocks, you may get a high sale price, and the gains can be big when the market is doing well. Key information Minimum InvestmentINR 1000    Minimum Additional Investment INR 500Minimum SIP InvestmentINR 500Entry LoadNil Exit Load1% of NAV for 365 Days. After one year NilReturn Since Inception19.39% (Growth) (Date of Inception: August 16, 2004).NAVINR  192.77 (April 20, 2021) (Direct-Growth)AUMINR 17798.55 Cr (As on March 31, 2021) 7. ICICI Prudential Multicap Fund (Category- Equity: Multi-Cap) This is a scheme that aims at capital appreciation by investing assets in equity and equity-related instruments across large-cap, mid-cap, and small-cap stocks from a wide range of industries. Key information Minimum InvestmentINR 5000    Minimum Additional Investment INR 1000Minimum SIP InvestmentINR 500Entry LoadNil Exit Load1% of NAV for 365 Days. After one year NilReturn Since Inception14.28 % (Growth) (Date of Inception: Oct1, 1994).NAVINR  349.72 (April 20, 2021) (Direct-Growth)AUMINR 5890.42 Cr (As on March 31, 2021) 8. ICICI Prudential Banking And Financial Services Fund (Category- Equity: Growth) This is an open-ended equity mutual fund that invests predominantly in the stocks of companies operating in the financial sector. The returns from this mutual fund scheme are comparatively stabler than other mutual fund plans. Key information Minimum InvestmentINR 5000    Minimum Additional Investment INR 1000Minimum SIP InvestmentINR 500Entry LoadNil Exit Load1% for 15 DaysReturn Since Inception16.33% (Growth) (Date of Inception: Aug 22, 2008).NAVINR  69.24 (April 20, 2021) (Direct-Growth)AUMINR 3865.10 Cr (As on March 31, 2021) 9. ICICI Prudential Large & Mid Cap Fund (Category- Equity: Long Duration) This is an open-ended equity scheme, that aims to generate a long-term capital growth scheme that predominantly invests in equity and equity-related securities of large-cap and mid-cap companies. This is suitable for conservative investors expecting high returns with medium-term goals, such as wealth creation through SIPs. Key information Minimum InvestmentINR 5000    Minimum Additional Investment INR 1000Minimum SIP InvestmentINR 1000Entry LoadNil Exit Load1% for 15 DaysReturn Since Inception17.59% (Growth) (Date of Inception: July 9, 1998).NAVINR  403.08 (April 20, 2021) (Direct-Growth)AUMINR 3752.71 Cr (As on March 31, 2021) 10. ICICI Prudential MidCap Fund (Category- Equity: Direct Plan-Growth):   This fund provides investors with returns in the form of capital appreciation. This mutual fund scheme invests majorly in midcap stocks. The portfolio is a diversified one, as it invests in stocks across all sectors. Key information Minimum InvestmentINR 5000    Minimum Additional Investment INR 1000Minimum SIP InvestmentINR 1000Entry LoadNil Exit Load1% for 365 DaysReturn Since Inception15.49 % (Growth) (Date of Inception: Oct 28, 2004).NAVINR  124.18 (April 20, 2021) (Direct-Growth)AUMINR 2338.33 Cr (As on March 31, 2021) How can you invest in ICICI Prudential Mutual Fund Via EduFund? Investing in ICICI Prudential Mutual Fund via Edufund is a simple, four-step process.  Step 1: Download the EduFund App from Google Play Store or Apple App Store and create an online account. Step 2:  Select a Scheme - Browse a wide range of ICICI Prudential Mutual Fund schemes and choose the right scheme suiting your financial goals. You may invest in a Systematic Investment Plan (SIP) or a lump sum. The inbuilt recommendation engine suggests the best scheme for your financial objectives. Step 3: View and Track Your Transaction(s) - The amount you have invested will reflect in your EduFund account within four working days. You can track the ICICI Prudential Mutual Fund NAV, account balance, statement, and other information in the app. Alternatively, you can purchase, redeem, or switch ICICI Prudential Mutual Fund units. Step 4: Speak With a Mutual Fund Counsellor - You can connect with a mutual fund consultant to share your goals and get personalized advice.  EduFund uses top-class authentication and encryption technologies to ensure bank-like secured transactions and safeguard your investments.   9 best-performing fund managers at ICICI Prudential Mutual Fund Fund managers play a significant role in driving value and generating growth. The following are some of the best-performing fund managers in ICICI Prudential Asset Management Company whose funds have consistently churned out the best returns.  1. Mr. Sankaran Naren S Naren joined ICICI Prudential AMC in October 2004. As ED & CIO, Naren oversees the entire investment function across the mutual fund and International advisor business. He is instrumental in the overall investment strategy development and execution. He has a rich experience of around 31 years in almost all spectrum of the financial services industry ranging from investment banking, fund management, equity research, and stockbroking operations. His qualifications include a B Tech degree from IIT Chennai and MBA (Finance) from IIM Kolkata. 2. Mr. Rahul Goswami Rahul has re-joined ICICI Prudential AMC now as CIO of Fixed Income. He has been earlier associated with the AMC for the period July 2004 to October 2009 as Co-Head-Fixed Income. In his earlier stint, he was responsible for managing 8 debt funds with prime responsibility on Govt. Bonds and Corporate Bonds trading involved monitoring factors like key economic developments, market liquidity, and Forex movement. He has an overall experience of over 24 years. In his previous role with Standard Chartered bank, he was a Senior Rates Trader & Head of the Primary Dealership Desk. Rahul currently manages 8 funds at ICICI Prudential, i.e. ICICI Prudential Liquid Plan, ICICI Prudential Flexible Income Plan, ICICI Prudential Floating Rate Fund, ICICI Prudential Banking & PSU Debt Fund, ICICI Prudential Medium Term Plan, ICICI Prudential Gilt Fund(All Options). ICICI Prudential Multiple Yield Fund and ICICI Prudential Capital Protection Oriented Fund. Rahul holds a bachelor's degree in Science and an MBA from Bhopal University. Besides Standard Chartered Bank, he has worked with various other organizations like Franklin Templeton, UTI Bank, SMIFS Securities, Khandwala Finance Ltd, and RR Financial Consultants. With over 20 years of experience, he handles an AUM of INR 1,64,265 Cr and 73 schemes (Feb 28, 2021). 3. Mr. Rohan Maru Rohan joined ICICI Prudential AMC in November 2012. As a fund manager, he handles ICICI Prudential Corporate Bond Fund and ICICI Prudential Liquid ETF, along with co-managing ICICI Prudential Liquid Fund, ICICI Prudential Savings Fund, ICICI Prudential Overnight Fund, and ICICI Prudential Global Stable Equity Fund. He also manages the Indian debt portion in ICICI Prudential US Bluechip Equity Fund. Previously, he was a Dealer – Corporate Bonds of the fund house. With an experience of over 10 years, he was associated with Kotak Mutual Funds and Integreon Managed Solutions. He holds a Master of Commerce from Mumbai University and a PGDBA from MET Mumbai. With over 8 years of experience, he manages an AUM of INR 1,09,378 Cr and 34 schemes (Feb 28, 2021). 4. Mr. Rajat Chandak He manages/co-manages several flagship funds, including ICICI Prudential Bluechip Fund, ICICI Prudential Value Fund (Series 4 & 11), ICICI Prudential Bharat Consumption Fund (Series 4), ICICI Prudential Long-Term Wealth Enhancement Fund, ICICI Prudential R.I.G.H.T. Fund, ICICI Prudential Regular Savings Fund, and ICICI Prudential Balanced Advantage Fund. He started his career with ICICI Prudential AMC and has been with the AMC ever since. He carries an overall work experience of more than 10 years. He completed B.Com from Sydenham College of Commerce and Economics in 2005 and an MBA in Finance from the Institute for Financial Management and Research (IFMR) in 2008. With over eight years of experience, he has an AUM of  INR 63,689 Cr under his management and 17 schemes (Feb 28, 2021). 5. Mr. Kayzad Eghlim Mr. Eghlim has over 29 years of experience and is a B.Com (H) and M-Com. Prior to joining ICICI Prudential AMC, he worked with IDFC Investment Advisors Ltd., Prime Securities, and Canara Robeco Mutual Fund. He manages an AUM of INR 13,439 Cr and 20 schemes. 6. Mr. Vaibhav Dusad Mr. Dusad has done B. Tech, M.Tech, and MBA. Prior to joining ICICI Prudential AMC Ltd, he worked with Morgan Stanley, HSBC Global Banking and Markets, CRISIL, Zinnov Management Consulting, and Citibank Singapore. He manages an AUM of INR 27,445 Cr and 7 schemes (Feb 28, 2021). 7. Mr. Mittul Kalawadia As a fund manager, Mittal currently manages multiple funds at ICICI Prudential AMC. Prior to being a fund manager, he was a research analyst for multiple key sectors. He started his career with ICICI Prudential AMC and has garnered an overall work experience of 11 years. His core competency lies in portfolio management and security analysis. By qualification, he is a Chartered Accountant. With over 10 years of experience, he manages an AUM of INR 17,546 Cr and 11 schemes (Feb 28, 2021). 8. Mr. Prakash Gaurav Goel Mr. Goel is a Chartered Accountant & a Bachelor of Commerce Prior to joining ICICI Prudential Mutual fund, he worked with IREVNA Research & Hindustan Unilever. He manages an AUM of INR 6,624 Cr and 9 schemes (Feb 28, 2021). 9. Ms. Priyanka Khandelwal Ms. Khandelwal is a Chartered Accountant and Company Secretary. She has been working with ICICI Prudential Mutual Fund Since October 2014. She manages an AUM of INR 1,074 Cr and 100 schemes (Feb 28, 2021). Why should you invest in ICICI Prudential Mutual Fund?  ICICI Prudential Asset Management Company Ltd. is one of India’s premier fund houses, boasting over 30 lakhs of clientele. The fund house handles considerable Assets under Management (AUM) across diverse asset classes like equities, debt instruments, and sectorial funds, to name a few. Following a totally customer-centric tactic, they flaunt a blend of expertise and resourcefulness, giving investors innovative, consistent, and optimum returns against market risks. This way, it gives customers a way to strike a balance between investments and savings. Their sponsors include ICICI Bank, Prudential Plc, Prudential Corporation Asia, Eastspring Investments, and Jackson National Life Insurance Company, among others. Select Edufund for investing in ICICI Prudential Mutual Fund EduFund makes the process of investing in ICICI Prudential Mutual Fund convenient. EduFund's experienced consultants give you customized solutions for all your financial goals. You can start investing from as low as INR 5,000 and grow your capital comfortably. With EduFund, you get the following benefits: Customized Research-Based Financial Plan - EduFund's scientific fund tracker screens over 1 lakh data points and 400 financial scenarios to recommend you the best mutual funds.  Customer-Friendly Counsellors Help You Create a Financial Plan - EduFund's counselors are trained to handle all kinds of queries from customers. They spend as much time with you as you need and resolve all your issues to help you create a robust financial plan. Invest Less, Earn More - Not only the best Indian mutual funds, but EduFund also offers you the facility to invest in US Dollar ETFs and international mutual funds. Use Free Tools - EduFund offers various free tools for its customers, including College Savings Calculator, SIP calculator, etc.  No Technical Expertise Required - You do not need to be an expert in finance to understand which mutual fund is the best for you. EduFund does it for you. Value-Added Benefits - You may get value-added benefits like no commission, free advisory, and nil-hidden charges. Secure Transactions - EduFund is RIA-registered and uses top-class 128-SSL security to enable safe transactions. Special Support for Children's Education - EduFund has a dedicated team of experts who help you fulfill your children's educational goals.  FAQs What is the best ICICI Prudential Mutual Fund?   Top-rated ICICI Prudential Mutual Fund:   ICICI Prudential Technology Fund (Category- Equity: Thematic/Sectoral)   ICICI Prudential Bluechip Fund (Category- Equity: Large Cap)   ICICI Prudential Focused Equity Fund (Category- Equity: Growth)   ICICI Prudential Long Term Equity Fund (Tax Saving) (Category- Equity: ELSS)   ICICI Prudential Sensex Index Fund (Category- Equity: Growth)   Which is better SIP or Lumpsum? SIPs usually perform better during volatile markets, while lumpsum investments are best suited in ELSS, where they draw higher returns when the market is steady. Which MF is better than FD? Mutual funds usually generate greater returns than FDs since they invest in equities. Though the risk is greater while investing in mutual funds, it can give you inflation-beating returns, which may not be the case with FD returns. Is it good to buy ICICI Prudential mutual fund?   ICICI Prudential Asset Management Company Ltd is a leading asset management company (AMC) in India focused on bridging the gap between savings & investments and creating long-term wealth for investors through a range of simple and relevant investment solutions. The AMC manages significant Assets under Management (AUM) in the mutual fund segment. The company’s growth momentum has been exponential, and it has always focused on increasing accessibility for its investors. The fund house’s growth momentum has been exponential and is driven by an entirely investor-centric approach. Please get in touch with a financial expert before considering investing in the fund.   TALK TO AN EXPERT
What is the 15*15*15 Rule in Mutual Funds?

What is the 15*15*15 Rule in Mutual Funds?

What if we told you that you could be a crorepati without going to KBC or without winning a lottery? Would you want to follow that mantra and build a huge corpus for yourself? The Mantra is called *drum roll* the 15 x 15 x 15 rule of investing! It means that, if one follows a diligent financial discipline of investing Rs 15,000 for 15 years in a mutual fund that offers returns of 15% - one would be building a huge corpus that would be greater than Rs 1 Cr. Upon investing Rs 27 lakhs, one creates a wealth of over Rs 73 lakhs! SIP - 15 x 15 x 15Amount15000Expected Return15%Number of years15At the end of the time period – Maturity Invested Amount          27,00,000 Wealth Created          73,27,601 Final Amount        1,00,27,601  If one continues this financial discipline and continues to invest for another 10 years the corpus would build to Rs 4.86 Cr i.e., 4X times in another 10 years. If you want to maintain this for another 15 years i.e., the entire period of investing would be 30 years – the corpus would be over Rs 10.38 Cr which is 10X times what one would have obtained for being invested for 15 years. Compounding has a magical effect on our investments by growing our small contributions into a large sum. Hence, it is always advisable to start the magic early – because “Kal kare so aaj kar aur Aaj kare so ab” applies even to your portfolio of investments. Consider that you would like your child to study in a reputed Ivy league school or a grand college in the States (US). The current tuition and fee for a Public 4-year program are $10,560, which is Rs 7.65 lakhs after the $/Rs conversion rate (1 $ = Rs 72.59). However, this is for a resident of the state. For Indian students or out-of-state students, the fees would be $23,890/year – for 4 years it would be $95,560 which is Rs 69 lakhs. The tuition and fees have increased by 16% over the period of 2011-21 (inflation-adjusted). This implies that after 20 years the fees would rocket to over Rs 1 Cr. Hence, one would have to take this factor of “educational inflation” into consideration when one is saving for their little one’s education. Similar to all investments, it is always better to start as early as possible to reap the benefits of compounding. If your child is to pursue his/her higher education after 15 years, you could follow the 15-cube mantra (15*15*15) to fund the dreams of your little one.  Education Expenses Today          70,00,000 Education Inflation (over 10 years) 16%Number of years20Expected Education expenses (future)          94,19,200 Monthly saving required                                                                    6,697 Expected return rate15%Time Period20 There could be cases where you have a higher time frame for your child. For example: If your child is 2 years old, and would fly off to pursue his or her education after 20 years, the amount that you should be saving to fund his/her education effortlessly would be as shown in the table. Hence as a parent, you would have to save Rs 7000/month to fund your child’s education. The easy way to do this is by downloading the EduFund app and getting started on your investment journey to fulfill your child's dreams. FAQs What is the 15 * 15 * 15 Rule in Mutual Funds? It means that, if one follows a diligent financial discipline of investing Rs 15,000 for 15 years in a mutual fund that offers returns of 15% - one would be building a huge corpus that would be greater than Rs 1 Cr. Upon investing Rs 27 lakhs, one creates a wealth of over Rs 73 lakhs! What is the average return in SIP for 15 years? SIPs in mutual funds can generate an average return of 15 to 18% over the duration of 15 years. However, this return can change according to market changes. Which SIP gives the highest return in 5 years? Axis Bluechip Fund Monthly SIP Plan ICICI Prudential Bluechip FundSBI Bluechip FundMirae Asset Large Cap FundSBI Multicap Fund Is mutual funds taxable after 10 years? Yes, you need to pay the applicable taxes only when you redeem the units or sell the scheme. However, your total income for the financial year in question includes your dividend income from mutual fund schemes.
The Best Debt Funds to Invest in 2023

The Best Debt Funds to Invest in 2023

What are Debt Funds? Debt Mutual funds invest in fixed-income securities such as corporate bonds, government securities, money market instruments, etc. These funds are also known as income funds or bond funds. The difference between the purchase price and the selling price of the securities adds to the NAV of the fund. If the fund bought security for Rs 1000 and had to sell it in extreme market conditions at Rs 900 by making a loss, it would result in the depreciation of the NAV. How do debt funds make money? Debt funds earn through capital appreciation and interest income from fixed-income securities. Consider that a debt fund receives 10% interest per annum; this is divided by 365 and is added to the NAV every day. A debt fund’s NAV hence depends upon the interest rate and the credit rating of its portfolio. If the credit rating of one of the securities that a fund is invested into goes down (due to default), the NAV of the fund also depreciates. The interest rate regime also has an effect on the NAV of the fund. For example, if a fund ABC holds security that offers 8% interest. If the RBI announces a decrease in the interest rates, then any new security would adhere to these new regulations and offer a lower interest rate. This would drive up the demand for pre-existing securities which were offering a higher rate (similar to our security which offered a rate of 8%). Consequently, the price of these bonds/securities would increase, leading to an increase in the NAV of the fund. Types of Debt Funds In the following paragraphs, we aim to provide 2 top-performing funds in each of the debt fund categories and also aim to provide insights on which category would be ideal for you. 1. Liquid & Money Market Funds These funds invest in money market securities with a maturity lower than 91 days. They are considered to be a good alternative to savings accounts and fixed deposits as they offer higher returns and are tax-friendly (when compared to traditional instruments). They have a reasonable level of safety of the invested principal, coupled with liquidity. They typically do not have exit loads. Investor If you have surplus cash or a sudden influx of money – sale of real estate property, bonus, or something similar, instead of parking it in a savings account and earning a meager 4% return, you could consider Liquid funds as an alternative. These are also suitable for risk-averse investors and for investors looking for stable returns and liquidity. Scheme Name1-year ReturnAUMProsConsQuant Liquid Fund4.85%Rs 174.84 CrHave higher 1-year, 3-year, and 5-year returns than the category average.The age of the fund is greater than 3 years.A high expense ratio of 0.62% (could potentially dent your earnings). AUM is less than Rs 1000 Cr, where investors need to keep an eye on the expense ratio as the fees for the operation of the fund are collected from a small base of investors.IDBI Liquid Fund Rs 1114.21 CrHave higher 1-year, 3-year, and 5-year returns than the category average.The age of the fund is greater than 3 years.The expense ratio is on the lower end – 0.13%.AUM is slightly higher than Rs 1000 Cr, where investors need to keep an eye on the expense ratio as the fees for the operation of the fund are collected from a small base of investors. 2. Gilt Funds Gilt funds invest in Government securities of State and Central governments with different bond tenures (or varying maturities) such as 1-year, 3-year, 10-year, etc. Government bonds are considered to be risk-free and have a zero probability of default (Credit risk is zero). However, these funds are subject to interest rate risk i.e., the portfolio’s worth appreciates or depreciates depending on the interest rate regime in the economy. Investor These are suitable for a risk-averse investor. They are beneficial in a falling interest rate environment as these funds would have underlying securities which would carry a high coupon. Scheme Name1-year ReturnAUMProsConsICICI Prudential Gilt FundExpense Ratio: 0.61%Min SIP Amount:Rs 100011.12%Rs 4,086.85CrHave higher 1-year, 3-year, and 5-year returns than the category averageExit Load is ZeroNoneDSP Government Securities FundExpense Ratio: 0.54%Min SIP Amount: Rs 50010.36%Rs 444.52 CrHave higher 1-year, 3-year, and 5-year returns than the category averageExit Load is ZeroNoneEdelweiss Government Securities FundExpense Ratio: 0.41%Min SIP Amount: Rs 50012.07%Rs 88.68 CrHave higher 1-year, 3-year, and 5-year returns than the category averageExit Load is ZeroAUM is slightly higher than Rs 100 Cr, where investors need to keep an eye on the expense ratio as the fees for the operation of the fund is collected from a small base of investors. 3. Short-Term Funds Funds that invest in securities that have a maturity of 1-3 years with high liquidity. The fund invests in corporate bonds, certificates of deposit, commercial paper, and government securities with medium and long-term maturities. They are prone to a lower interest rate risk when compared to medium and long-term funds. This aids the funds to sail through adverse market conditions. Investor They are ideal for risk-averse investors who aim to receive higher post-tax interest or returns (when compared to FDs). When the investment horizon is greater than 1 year. Scheme Name1-year ReturnAUMProsConsAditya Birla Sun Life Short-Term FundExpense Ratio: 0.39%Min SIP Amount: Rs 10012.00%Rs 7,001.71 CrHave higher 1-year, 3-year, and 5-year returns than the category average.Exit Load is ZeroThe expense ratio is on the lower endNoneICICI Prudential Short-Term Fund Expense Ratio: 0.44% Min SIP Amount: Rs 10010.92%Rs 22,254.84 CrHave higher 1-year, 3-year, and 5-year returns than the category averageExit Load is ZeroThe expense ratio is on the lower endThe AUM of the fund is greater than Rs 20,000 Cr. After crossing this benchmark, the returns of the fund tend to be stagnated or experience a downturn 4. Medium-Term Funds Funds that invest in securities that have a medium-term maturity of 3-4 years. SEBI mandates that these funds invest in securities that have a Macaulay duration of 3-4 years. They earn higher post-tax returns when compared to a 5-year bank FD. One can also choose to opt for monthly income plans if one wishes to receive a periodic income from their investments. Investor They are ideal for risk-averse investors who aim to receive higher post-tax interest or returns (when compared to FDs). They are also ideal for the diversification of risk. They are less volatile when compared to equity funds and are also less prone to interest rate risk when compared to long-term funds.  Scheme Name1-year ReturnAUMProsConsSBI Magnum Medium Duration FundExpense Ratio: 0.68%Min SIP Amount: Rs 50010.88%Rs 8,505.15 CrHave higher 1-year, 3-year, and 5-year returns than the category averageNoneICICI Prudential Medium Term Bond FundExpense Ratio: 0.73%Min SIP Amount: Rs 100011.12% Rs 6,437.31 CrHave higher 1-year, 3-year, and 5-year returns than the category averageNone 5. Dynamic Bond Funds Funds are actively managed or employ a dynamic investment/asset allocation strategy by reducing the average portfolio duration (or maturity) in increasing interest rate environments and increasing the duration in a falling interest rate regime. These funds hence provide an option to the investor to earn from the interest rate fluctuations. Investor They are suitable for investors who would like to stay invested for the long term without worrying about the interest rate movements affecting their wealth creation.   Scheme Name1-year ReturnAUMProsConsAxis Dynamic BondExpense Ratio: 0.25%Min SIP Amount: Rs 100010.88%Rs 8,505.15 CrHave higher 1-year, 3-year, and 5-year returns than the category averageExit Load is zeroThe expense ratio is on the lower endNoneKotak Dynamic Bond FundExpense Ratio: 0.47%Min SIP Amount: Rs 100011.12% Rs 6,437.31 CrHave higher 1-year, 3-year, and 5-year return than the category averageExit Load is zeroThe expense ratio is on the lower endNone 6. Credit risk funds These funds allocate 65% of their total assets for the purchase of lower-rated securities (lower than AA- credit rating) and offer higher returns to their investors. The credit risk is higher for these funds. The interest rate risk is comparatively lower as these funds invest in securities with low maturities. The funds also gain from capital appreciation if the underlying security is upgraded to a higher credit rating. Investors These are only suitable for investors who are willing to take a higher risk. This is due to the lower credit securities as a part of the portfolio which have a higher probability of default. Scheme Name1-year ReturnAUMProsConsICICI Prudential Credit Risk FundExpense Ratio: 0.90%Min SIP Amount: Rs 100010.01%Rs 7,209.19 CrHave higher 1-year, 3-year, and 5-year returns than the category averageNoneHDFC Credit Risk Debt FundExpense Ratio: 1.06%Min SIP Amount: Rs 50011.25% Rs 7,315.34CrHave higher 1-year, 3-year, and 5-year returns than the category averageThe expense ratio is on the higher end FAQs What are debt funds? A debt fund is a mutual fund that invests in fixed-income instruments such as treasury bills, commercial paper, government bonds, corporate bonds/debentures, money market instruments, etc. What are the benefits of debt funds? High Liquidity Investment Horizon Higher Returns Tax Efficiency Flexibility Who should invest in debt funds? Debt funds are for investors looking for a passive and regular income. These are ideal for risk-averse investors who prefer Is it good to invest in debt funds? Yes, debt funds are a great investment option for investors. These offer higher returns over a long investment horizon and are tax-efficient as well. Which are the best debt funds to invest in now? Here are the best debt funds to invest in:Aditya Birla Sun Life Low Duration FundNippon India Money Market FundICICI Prudential Ultra Short-Term FundAxis Ultra Short-Term Fund How Do Debt Funds Make Money? Debt funds earn through capital appreciation and interest income from fixed-income securities. Consider that a debt fund receives 10% interest per annum; this is divided by 365 and is added to the NAV every day. A debt fund’s NAV hence depends upon the interest rate and the credit rating of its portfolio. If the credit rating of one of the securities that a fund is invested into goes down (due to default), the NAV of the fund also depreciates. You can start your research as well as investments on the EduFund app!
How to invest in Debt Funds?

How to invest in Debt Funds?

Most of our parents and grandparents have invested their hard-earned money into trusted FDs, and PPFs and relied on gold for wealth creation. That was a good option a long time ago, but today, that's a way to lose wealth than make wealth. A bank deposit earns 6% per annum. The interest earned on the principal is taxed according to the tax bracket. If the tax bracket of the individual is 20%, the net interest earned is 6%*(1-20%) = 4.8%. The current inflation ranging from 4% to 6%, erodes the wealth that is created by the bank deposit. Hence, in the current economic scenario, these instruments are not sufficient for beating inflation and creating wealth with reasonable returns over the years. Debt as an investment vehicle has always been trusted as there is a fixed promised return and a guaranteed principal payment, giving a sense of comfort to the investor. The debt market is a platform that enables the purchase and sale of loans in exchange for a rate of interest and periodic payments of the coupon. These markets are lesser risky than their equity counterparts, and hence also have lower returns when compared to equity instruments. In the following article, we explore various facets of this financial instrument.  What is a Debt Mutual Fund? A debt fund is a mutual fund that invests in fixed-income instruments such as treasury bills, commercial paper, government bonds, corporate bonds/debentures, money market instruments, etc. All the instruments that the fund invests in have a maturity and a fixed coupon or interest rate payment that the buyer/investor can rely on – hence have the name - fixed-income instruments. These funds are also known as bond funds or fixed-income funds. As the returns are pre-decided, they are not affected by market fluctuations when the instruments are held until maturity. Hence, these funds are low-risk options for an investor. Every debt security is assigned a credit rating which indicates the risk/probability of default, based on which the fund managers take a decision to either include or exclude them in their portfolios. If a paper or debt security has a high credit rating, it implies a low probability of default i.e., the borrower has a high propensity to pay back the principal and interest. Fund managers sometimes also choose a lower-quality debt to earn higher returns by taking a calculated risk. A debt fund with a higher amount of high-quality debt is more stable and less prone to market fluctuations however, earns a lower return. The fund manager also has the flexibility to choose long-term or short-term debt based on the existing yield curve or interest rate regime in the economy.  Types of Debt Funds Debt funds are classified based on the maturity period as follows - Liquid Fund: This fund invests in money market instruments that have a maturity of fewer than 91 days (3 months). The returns earned by these funds are greater than the savings accounts. These are considered one of the best alternatives for liquid and short-term investing. Gilt Fund: These invest over 80% of the assets into Government securities over a range of maturities (10 years, 5 years, etc). These funds are credit risk-free (as one is lending to the Government of India, which cannot default on its payments), however, are highly vulnerable to interest rate risk. Dynamic Bond Fund: These invest in debt securities with a range of maturities, adjusting for the interest rate regime or yield curve prevailing in the economy. These funds are ideal for investors seeking moderate risk with an investment horizon of 3-5 years. Money Market Fund: The fund invests in debt securities with a maturity of less than 1 year. These are sought after by investors looking for short-term investment options in low-risk vehicles. Corporate Bond Fund: This fund invests over 80% of the assets in corporate bonds with the highest credit rating (implying a low risk of default). These are suitable for investors seeking low risk and provide exposure to corporate bonds which provide higher returns than the G-secs. Banking and PSU Fund: The fund invests over 80% of its assets in Banks and PSU bonds. Credit Risk Fund: These funds are mandated to invest over 65% of their assets in bonds with a credit risk rating below AA+. They aim to generate a return higher than the funds invested in G-secs and other high credit-rating debt securities, by taking on more risk in their portfolios. However, these funds only thrive in a credit conducive environment where the economy is booming. These funds are very volatile and are suitable for investors seeking moderate-high risk. Floater Fund: These funds invest over 65% of their assets in bonds with a floating interest rate. One should consider investing in floater funds when there is a rise in interest rates in the economy to reap the maximum benefits. Short-term floater funds typically invest in Government securities with a tenure of less than one year. Longer-term floater funds invest in corporate bonds, debentures, and government bonds. Flexibility in tenure makes it an attractive investment to all investors in the market. Despite these funds providing higher returns (lower than equity funds), they are heavily reliant on market conditions, implying uncertainty in the prediction of returns that can be expected from these funds. Investors looking to make gains from the interest rate fluctuations, dilute the interest rate risk factor in their portfolio, or have their wealth unaffected by the volatile market fluctuations prefer to invest in these funds. Overnight Fund: These invest in securities with a maturity of 1 day. Due to the extremely small-time horizon, the interest rate and credit risk are almost negligible (SEBI also mandates these funds to invest in low-risk debt securities). The returns earned from these funds are also lower ranging from 3-5%. These funds do not charge exit loads even when the units are redeemed in a day, which was the primary reason for their popularity among investors. What is Macaulay's duration? This financial jargon indicates how many years it would effectively take for the bond to repay back to the investor with its periodic cash flows. It can also be considered as the time at which the investor’s investment reached a breakeven. It is also used as an indicator for the interest rate sensitivity of the bond, the higher the duration, the higher the sensitivity. The following table indicates the type of bonds that the funds would invest in depending on their fund type. FUND TYPEMacaulay DurationUltra-Short Duration Funds3-6 monthsLow Duration Fund6-12 monthsShort Duration Fund1-3 yearsMedium Duration Fund3-4 yearsMedium – Long Duration Fund4-7 yearsLong Duration Fund>7 years What type of Investor should invest in Debt Funds? Debt funds are considered ideal for risk-averse investors who aim to generate a regular income out of their investments. The funds diversify across various securities and ensure a stable return to their investors. If an investor has been saving in bank deposits for their stability, then he/she could prefer debt mutual funds and earn similar or higher returns in a tax-efficient manner. The funds are available for short-term (3-12 months) and medium-term investors (3-5 years). As an investor, if you are looking for a more liquid investment, you could prefer a short-term fund over a savings account and earn 7-9%. Monthly Income Plans (MIPs) also provide an option for the investor to receive a monthly payout, similar to FDs. Risks in debt funds We are not suggesting that debt funds are risk-free. That tag only belongs to the Government of India (Sovereign Debt). The underlying risks that one must consider while investing in debt funds are as follows - Liquidity Risk: In an economic downturn, the fund house could receive an umpteen number of redemption requests from the pool of investors. There is a possibility that the fund may not have enough cash and cannot sell/reverse their positions due to the economic conditions to oblige to all the requests. This risk is known as liquidity risk. Interest Rate Risk: When the interest rates increase, the NAV of the fund falls. In case of the interest rate decline, the value of bonds in the portfolio increases, due to their higher pre-decided coupon rates. This also pushes the NAV of the debt funds in an upward direction. Hence, the NAV of the fund is prone to interest-rate fluctuations in the economy. Credit Risk: The probability of default, i.e., the event when the borrower does not pay the principal and interest.  Expense Ratio: It is the fees paid to the fund house for managing your money. One should also consider this expense while investing in a debt fund. These funds earn lower returns than their equity counterparts. If the expense ratio is high, it could dent future returns/earnings. Hence, it is always advisable to stay invested for a longer duration and to choose funds with a lower expense ratio. Benefits of debt funds High Liquidity: Debt funds are typically considered alternatives to fixed deposits. Along with providing recurring returns, debt funds (especially liquid funds and overnight funds) have high liquidity where investors can redeem their investments in the shortest time frame. Investment Horizon: There are umpteen options available for any type of investment horizon that is preferred by the investor – a large number of options to choose from and hence make a portfolio customized for yourself. Higher Returns: The debt funds provide a higher return than the typical FDs, and savings accounts. Tax Efficiency: The interest rate earnings are taxed every year in the case of FDs. However, in the case of debt mutual funds, the investor reaps the benefits of indexation after a holding period of 3 years. Flexibility: The funds also provide an option to transfer the units to equity schemes if the investor is ready to take on additional risk for higher returns. Such options or alternatives are absent in the traditional route of FDs and bank deposits. FAQs What are debt funds? A debt fund is a mutual fund that invests in fixed-income instruments such as treasury bills, commercial paper, government bonds, corporate bonds/debentures, money market instruments, etc. What are the benefits of debt funds? High Liquidity Investment Horizon Higher Returns Tax Efficiency Flexibility Is it good to invest in debt funds? Yes, debt funds are a great investment option for investors. These offer higher returns over a long investment horizon and are tax-efficient as well. Is a debt fund better than an FD? Both are great investment options. FDs are more secure and offer fixed stable returns. A debt mutual fund offers high returns and has a risk factor involved.
How to compare two mutual funds?

How to compare two mutual funds?

Comparison is an integral part of our life. Be it our constant nemesis Sharma Ji ka beta or be it our “friend” who always has everything that we aspire to. We all have parameters and factors with which we compare ourselves – salary, number of cars/bungalows owned, or something else. Similarly, there are factors that one should consider when one is planning to invest in mutual funds. There are n (n tending to infinity) number of options in the market for different goals and risk appetite of the investor. So, how do you evaluate a mutual fund and make the choice? Read on to understand the same! Expense ratio The expense ratio is the management fees that the fund charges – for managing your money and giving you the promised returns. This is generally a % of your investments, hence will impact your earnings from the fund. Always chose the fund with a lower expense ratio, as it forms a smaller dent in your long-term earnings. The expense ratio of a regular plan tends to be more than a direct plan. This is due to the intermediary distributor in the value chain who would also need a piece of the pie. For example, if a regular plan has an expense ratio of 2%, 1% goes to the fund and 1% goes to the distributor. However, in the direct plan, you would be charged only 1% which is attributed to the efforts of the fund. While comparing two funds, ensure that you are comparing direct-direct and regular-regular plans. (Apples to apple comparison) Benchmark SEBI mandates that each fund declare a benchmark, as it promises the investor that it would aim at achieving a return that is higher than the market. For example, ABC fund has declared the Nifty 50 as its benchmark. When the market rallies by 15% and the fund have delivered a return of 12%, it indicates that the fund has underperformed. However, when the market falls by 12% and the fund declines only by 10%, it indicates that the fund has outperformed the benchmark. Hence, a fund should beat the benchmark during market upturns and should decline lesser than the market in case of a downturn. Hunt for funds that have consistently performed better than their benchmarks.  Risk measurement A typical thumb rule or mantra in the financial industry is that - higher risk implies higher returns (Bank FD interest rate < Stock Returns). However, measuring the risk with only the returns becomes complex in the case of mutual funds, as there are factors such as sector allocation and other market conditions which affect the returns of the fund. Alpha and Beta then come to your rescue. These Greek alphabets are your crystal balls which give you a fair idea about the risk involved. Alpha indicates the surplus return generated by the fund when compared to its benchmark. Beta indicates the volatility or risk involved in the fund. For example, Fund ABC generated an alpha of 1 and had a beta of 1.5 whereas Fund XYZ had an alpha of 1 and a beta of 2. Then chose Fund ABC, since the risk is lower and the return generated is the same – in finance parlance, the risk-adjusted returns of Fund ABC > Fund XYZ. Allocation of sectors within the fund Consider a large-cap fund, SEBI mandates it to invest over 65% of its portfolio into large-cap companies. However, there is no restriction on the sector in this case. The fund manager may choose to invest in the pharma sector which has seen a boom post-COVID or could invest in the FMCG industry or the financial sector. Sector exposure also determines the risk of the fund. Depending on your risk appetite, and your preference for the sectors - accordingly do a right swipe on your fund match. Category average One last factor to consider would be a comparison against the Category average. What is the category you ask? Large-cap, mid-cap, and small-cap would classify as the category. The category average is the median of all the data of the funds. This gives insights into how our fund has performed when compared to all the other players in the market. There could be cases where your fund has provided returns greater than the benchmark, but all the other funds in the category have also outperformed the benchmark. Comparing with the average in the same class (Category) gives you another realistic indicator of how your fund has performed. For example, if the category average is 33% and your fund has given you returns of 39%, it indicates that your fund has outperformed its peers.  FAQs How can I compare the best mutual funds? There are a few categories to consider when comparing mutual funds such as returns generated over 3 - 5 years, fund managers and their professional history, category average, asset allocation, and portfolio diversification, benchmark, risk management, and expense ratio. Where we can compare mutual funds? You can also compare the mutual fund performance manually, through online investment sites, or ask your financial advisor for help. What is the 15x15x15 rule in a mutual fund? The 15x15x15 rule in mutual funds is a popular rule in investment which says that investing Rs.15, 000 for 15 years at a 15% interest rate can make any investor a crorepati. When there are two mutual funds How will you compare and take investment decisions? By comparing mutual funds' Net Asset Value, you can determine their potential and make the right choice. You can also consult a financial advisor if you are new to the field of investment. Conclusion You can get detailed information on the performance and other aspects covered above on the EduFund app. You can start your investment journey with EduFund and even get advice from wealth experts to invest in the top mutual funds in the country.
Does a SIP of INR 500 really help?

Does a SIP of INR 500 really help?

What can you do with Rs 500 today? Get an amazing lunch or dinner for two at a decent restaurant in town? Or get a Pizza for two? Or get a cool T-shirt from an online store? Alternatively, with Rs 500, you could have a large pot of money to send your child to their dream college and fulfill their aspirations. One can choose the route of saving Rs 500/ month through SIP plans with mutual funds and have a considerable sum of money by the end. What is a SIP? A Systematic Investment Plan or SIP is a way in which you can choose to invest a fixed amount with the mutual fund at regular intervals (say a month or a quarter). SIPs aid in creating financial discipline and saving towards a goal. They reduce the burden on the investor by allowing them to invest small sums instead of a large cash outflow or lumpsum amount at once and provide the investor with decent returns. To forgo lifestyle expenditure and to start investing would be difficult for early boomers in the starting stages of their careers. Once the investor opts for an SIP (or more SIPs), the amount as specified by the investor automatically gets debited from the bank account that is linked to the SIP. Hence, you are investing for your future automatically without you making any separate effort towards it. Can I save Rs 500 and have something tangible in the end? SIPs in India allow for investing with a minimum amount of Rs 500. Hence, as an investor, instead of ogling at the stock/trading screens and making desperate attempts to time the market and fanatically buying and selling stocks, you could simply invest in Mutual funds. Mutual funds take care of diversification (putting your eggs into different baskets), invest in the best stocks, and finally earn you a decent return. Let us consider some scenarios - Case 1 As a very young investor, a graduate who has earned his or her first paycheck, you could start saving Rs 500 into a SIP. Even if you maintain this as your amount and invest for 35 years, by the time you are 56, you will have Rs 1.76 Cr in your investment pot. Hence with an investment of Rs 2.1 lakhs, you would be creating a wealth of Rs 1.7 Cr. SIPAmount500Expected Return18%Number of years35At the end of the time periodInvested Amount2,10,000Wealth Created1,70,79,403Final Amount1,72,89,403 Case 2 Even if you do not have 35 years till your child starts to go to college, you can still create a large amount of wealth by having this discipline for 20 or 25 years. The results are as follows. SIPAmount500Expected Return18%Number of years20At the end of the time periodInvested Amount            1,20,000 Wealth Created          10,34,427 Final Amount          11,54,427  SIPAmount500Expected Return18%Number of years25At the end of the time periodInvested Amount            1,50,000 Wealth Created          27,18,627 Final Amount          28,68,627  In both cases, the wealth created is 9x or 18x times the amount invested by you. As one can see in the above charts a small difference of 5 years creates a great compounding effect where Rs 500 amounts to Rs 28.6 lakhs when invested for 25 years and amounts to less than half the amount of Rs 11.54 lakhs when invested for 20 years. Hence, by being an early saver, one can create a tremendous amount of wealth with minimal effort. You can start your investment journey today with a SIP in the top mutual funds in the country with EduFund. FAQs Is SIP really beneficial? Yes, SIP is one of the best ways to start investing in mutual funds, index funds, or ETFs. It allows you to invest in a systematic way over a long period of time. Can I start a SIP of 500 per month? Yes, many mutual funds allow investors to invest a minimum of Rs. 500 every month. It helps in growing your wealth over a period of time. Which mutual fund is best for 500 per month? There are many mutual funds that offer Rs. 500 per month such as Axis Long-Term Equity FundAxis Bluechip FundSBI Equity Hybrid FundParag Parikh Flexi Cap FundSBI Focused Equity Fund
SIP
The 5 best mutual funds you can invest in today

The 5 best mutual funds you can invest in today

Equity Funds primarily invest in equity (stocks) and equity-related instruments. According to SEBI’s regulations, an equity fund should invest at least 65% of its assets into equity and equity-related instruments. These funds are ideal for most people who aim to invest for a longer time horizon for wealth creation. Investors need not possess any financial knowledge before investing their hard-earned money into these well-managed funds, as sufficient research and analysis are conducted by the fund manager and their army of analysts before investing. The funds are also diversified, hence reducing the blow of volatility (the higher the diversification, the lower the effect of adverse market or underlying security movement) in the market, and also allowing the retail investor to gain returns over smaller investment corpora.  Below is the list of top-performing equity funds, which includes information on their 1-year, and 3-year returns, AUM, the performance of the fund, and their pros, and cons. 1. Axis Long-Term Equity Fund Minimum Investment Amount (Lump Sum)Rs 5000Minimum SIP Investment AmountRs 500Expense Ratio 0.72%AUMRs 28,556.83 Cr Performance The fund has delivered an annualized return of 14.85% over the last 3 years (54.47% over the past 1 year) and has constantly outperformed its benchmark (S&P, BSE 200 Total Return Index).  Pros  The fund has higher 3-year and 5-year returns as compared to the category average. ELSS fund – Tax haven for 80C Cons Assets Under Management (AUM) of the fund are greater than Rs 20,000 Cr. When a fund crosses a certain AUM threshold, the returns from the fund tend to decrease or stagnate. Investors should monitor the performance 2. Parag Parikh Flexi Cap Fund Minimum Investment Amount (Lump Sum)Rs 1000Minimum SIP Investment AmountRs 1000Expense Ratio 0.96%AUMRs 8,701.65 Cr Performance The fund has delivered an annualized return of 21.11% over the last 3 years (76.57% over the past 1 year) and has constantly outperformed its benchmark (NIFTY 500 Total Return Index). The fund is suitable for investors who are looking to invest for greater than 3-4 years. The fund invests across market capitalizations (Flexi cap – large, mid, and small-cap) to deliver above-category average returns to its investors. Pros Fund has higher 1-year, 3 years and 5-year returns as compared to the category average Low expense ratio Cons None. 3. SBI Equity Hybrid Fund Minimum Investment Amount (Lump Sum)Rs 1000Minimum SIP Investment AmountRs 500Expense Ratio 0.97%AUMRs 38,080.12 Cr Performance The fund has delivered an annualized return of 12.20% over the last 3 years (42.72% over the past 1 year) and has constantly outperformed its benchmark (CRISIL Hybrid 35+65 Aggressive Total Return Index). The fund invests in a mixture of debt and equity (as the name hybrid suggests) - invests in high-growth companies and balances this risk/volatility by investing in fixed-income securities. (At least 65% in equity and 20-35% in debt and money market instruments)   Pros Fund has higher 1-year, 3 years and 5-year returns as compared to the category average Low expense ratio Cons Assets Under Management (AUM) of the fund is greater than Rs 20,000 Cr. When a fund crosses a certain AUM threshold, the returns from the fund tend to decrease or stagnate. The investors should monitor the performance. 4. SBI-Focused Equity Fund Minimum Investment Amount (Lump Sum)Rs 5000Minimum SIP Investment AmountRs 500Expense Ratio 1.77%AUMRs 14,533.37 Cr Performance The fund has delivered an annualized return of 13.08% over the last 3 years (51.60% over the past 1 year) and has constantly outperformed its benchmark (S&P BSE 500 Total Return Index). The fund aims to deliver high returns to its investors by investing in a highly concentrated portfolio containing equity and equity-related instruments. (At least 65% in Equity and 20-35% in debt or fixed income and 0-10% in REIT/InVIT) Pros Fund has higher 3-year 5 year and 10-year returns as compared to the category average. The fund has been in the market for over 10 years. Cons High expense ratio 5. Axis Bluechip Fund Minimum Investment Amount (Lump Sum)Rs 5000Minimum SIP Investment AmountRs 500Expense Ratio 0.55%AUMRs 25,134.85 Cr Performance The fund has delivered an annualized return of 16.55% over the last 3 years (46.32% over the past 1 year). The fund has constantly outperformed its benchmark index (NIFTY 50 Total Return Index). It invests in large-cap companies which have stable balance sheets and are market leaders in their respective sectors. It provides its investors with stable, reliable, and high returns. Suitable for investors seeking long-term investment options (of greater than 5 years).  Pros Fund has higher 1-year 3 years and 5-year returns as compared to the category average. The expense ratio is on the lower end. The fund has no lock-in period. Cons Assets Under Management (AUM) of the fund are greater than Rs 20,000 Cr. When a fund crosses a certain AUM threshold, the returns from the fund tend to decrease or stagnate. Investors should monitor the performance FAQs Which mutual fund is best in the current situation? Here are some of the best mutual funds in the current situation: Axis Long-Term Equity Fund Axis Bluechip Fund SBI Equity Hybrid Fund Parag Parikh Flexi Cap Fund SBI Focused Equity Fund What are the best 5-star mutual funds? Axis Long-Term Equity Fund Axis Bluechip Fund SBI Equity Hybrid Fund Parag Parikh Flexi Cap Fund SBI Focused Equity Fund What are the top 3 mutual funds? Some good performing mutual funds in India are:Parag Parikh Flexi Cap Fund Axis Bluechip FundSBI Focused Equity Fund Is today the right time to invest in mutual funds? There is no fixed right time for investing in mutual funds. You can start investing whenever you wish to enter the market and reap the benefits of compounding. Conclusion In a nutshell, here's why should you invest in equity funds - Highly diversified Can invest in smaller amounts and still reap the benefits of high returns Highly regulated by SEBI (Investor Protection) Tax benefits - Indexation, LTCG and STCG Offer higher returns than traditional instruments (however, have a higher risk than debt funds) You can get started on your investment journey by downloading the EduFund app today! DisclaimerMutual fund investments are subject to market risks. The past performance of a fund is no surety of the future performance of the fund.
Blue-chip companies & their role in your portfolio through mutual funds

Blue-chip companies & their role in your portfolio through mutual funds

What are blue-chip companies? The blue-chip companies with a large market capitalization (i.e., how much a company is worth. For example, ABC Corporation has 10 lakhs of outstanding shares the shares held by the shareholders which include retail investors like you and me, institutional investors like large companies, and owners of the companies themselves. Assume that the price of each share in the market is Rs 1000. Then the market capitalization would be = Price of the share * Number of outstanding shares = 100* 10 lakhs = Rs 10 Cr). The Market Cap of these companies runs in lakhs of crores and these companies have been in the market since your grandfather had his first tooth. So, these companies are ancient and have been in the market for a very long time. Most of them are market leaders in their respective sectors and have been showing consistent performance despite the ups and downturns of the volatile market. Why are these considered safe bets? These stocks belong to large companies which are established and are financially sound where they have large amounts of cash or their profits fund their growth or they can honor their debt obligations without any nasty case of default or bankruptcy. They have stable cash flows (Unilever, P&G, ITC, TCS, etc.) as they sell widely accepted, recognized, and high-quality products. As they have stable earnings, they also provide dividends to their shareholders (dividends are a share of profit that the company has earned in a quarter or in that financial year). Investors also categorize them as safe havens and rely on them to bounce back faster than the market owing to the experience and stability (less volatile) in stormy and rough market conditions. Wait, why are dividends important? Smaller companies borrow from financial institutions and invest their profits earned to fuel their growth. These companies do not have the ability to share the profit pie with their investors until they grow to a sufficient size. Bluechip companies, on the other hand, provide you with a regular income in the form of a dividend (apart from the price fluctuations – usually upwards in the market). This becomes important to an investor like you and me because these dividends are our other income or earnings which typically increase with inflation – hence we receive a higher dividend than the previous year to match that standard of living. They also indicate the stability and resilience of the company to economic downturns (a positive side effect indeed). These stocks and the funds which invest in these stocks are ideal for risk-averse or conservative investor who wants to grow their wealth with minimum exposure to volatility and risk of the market. As an investor, if you are looking to invest over a longer period (say for your 4-year-old’s education or your 10-year-old daughter’s wedding etc.) – i.e., a time frame greater than 5 or 7 years, bluechip stocks provide you with a safe and stable return. How do you invest in these stocks? You can either invest directly by choosing a sector, studying the company, performing your analysis, and adding your stock to your beloved portfolio or you can pay someone to do the above for you as you sit back and relax and see your money grow into a large corpus this is the idea of a Mutual Fund. Most mutual fund advisors/companies use Blue Chip funds synonymously with large-cap funds. Some of these funds also contain the name Blue Chip in them – for example, SBI Bluechip fund, ICICI Prudential Bluechip Fund, etc. SEBI mandates that > 80% of the fund’s portfolio should be invested in the top 100 companies sorted by market cap – which would be the blue chip companies. These funds also have the minimum SIP requirement of Rs 500, (or less) which makes it affordable to start building your retirement pot or the corpus for your future generation. FAQs What are blue-chip companies? The companies with a large market capitalization (i.e., how much a company is worth. For example, ABC Corporation has 10 lakhs of outstanding shares the shares held by the shareholders which include retail investors like you and me, institutional investors like large companies, and owners of the companies themselves. Why are companies called blue chip? Companies that have a large market capitalisation are called blue chip companies. These companies are very large and well-recognised companies with a long history of sound financial performance. For example, Unilever, P&G, ITC, TCS, etc. What are 10 bluechip stocks in India? 10 bluechip stocks in India are State bank of India, Bharti Airtel, Tata consultancy services, Reliance Industries, Coal India, HDFC, ITC, Infosys, ICICI Bank, ONGC, GAIL, and Sun pharma. Conclusion In short, Bluechip funds have consistent returns, are highly reliable companies (financially), and have a lower risk (as they are stable and less volatile) partly describing the qualities of a life partner. These funds also offer diversification into multiple sectors, hence giving you a balanced and low-risk portfolio suitable for your risk appetite. Consult an expert advisor to get the right plan TALK TO AN EXPERT
What does volatility mean in mutual funds?

What does volatility mean in mutual funds?

We often hear the word 'volatility in our day-to-day lives. What does volatility mean? A constant change or a rapid change, and can also mean unpredictability. Well, we live in a VUCA world (Volatility, Uncertainty, Complexity, and Ambiguity) where Volatility is a part and parcel of our life. We try to reduce financial uncertainty by constantly saving in our piggy banks (aka our investment portfolio). We also minimize the uncertainty of life using life insurance products. Funds and securities are also volatile in this VUCA world. However, we can measure the volatility and make informed choices about our investments. When we go to some of the websites to make our choice for investing in one of the funds, we often come across indecipherable Greek alphabets such as alpha, beta, etc. This article is to decode the jargon around volatility, and we assure you that the next time you visit a website or read a report on a fund, it will surely make more sense. What is volatility in mutual funds? It means a simple up-and-down, market movement in the value (prices or Net asset value).  Consider the two cases as shown in the following figures. If the expected price of the stock based on the analysis of historical data is Rs 58. In Case A, in a short span of time, as an investor or a market participant, I see that the stock has sudden upward movements ranging to Rs 80 and also has a downward movement reaching Rs 40. Hence, the stock is deviating from the expected price (or the mean price) – this case is considered to be highly volatile or highly unpredictable. In Case B, we observe that the price is stable or is hovering around the expected price. This stock or fund is considered to be less volatile. Higher volatility indicates unpredictability – and is perceived as a risk. As an investor, I hence command a higher return as a “price” for my sleepless nights. If I am willing to take a risk, I invest in Case A, where I could be earning a profit of Rs 22 (higher than Case B) or losing Rs 18 (based on the example) – a double-edged sword indeed. Volatility is hence a measure that one must consider before investing. As investors, each of us has a different risk appetite. Some of us can sleep even when our portfolio suffers a downward swing of 15%, whereas some of us have nail-biting moments when our portfolio sinks by a mere value of 5%. Determining your risk aversion becomes a paramount factor in building a tailored portfolio – It is up to you to determine if you want to jump onto the roller-coaster or to take on an easy slide. How to measure volatility in mutual funds? Going back to 10th-grade Mathematics - Standard Deviation The standard deviation essentially indicates the fall and rise of the returns of a fund or the prices of a stock/security. Does it indicate the variation from the mean return? higher the variation, the higher the standard deviation implying higher volatility. Consider Case B or a fund with a constant return of 9% over a 3-year horizon. Here, the standard deviation is said to be zero (as the mean is 9% and the return every year is 9%) and the fund is less volatile. However, consider Case B or a fund with returns of 9%, -18%, and 15% in each of the 3 years considered. The mean return of the fund is 6% (average of the returns), and the standard return would be a very high value (here, 17.58%) as the returns of the fund vary from the mean. However, volatility is one of the indicators of risk, and should not be the only variable that is considered by the investor. Stable past performance does not indicate the same for the future, but it could serve as a good way to project the future. Hence, as an investor what should you be looking at when you are choosing a fund? Try to minimize risk (volatility) and maximize returns – look for funds that give you similar returns and compare the standard deviations. Add the one with a lower standard deviation into the portfolio. The Greek letter - Beta (β) This Greek letter compares the returns of the fund with its benchmark. The beta of the market (here, the benchmark) is 1. If the fund has a β>1, say 1.5 then it indicates that the fund is more volatile when compared to its benchmark, and a fund with a β<1, is considered to be lesser volatile than the benchmark. When the β is closer to 1 it indicates that the volatility of the fund is closer to that of its benchmark.  Example: Consider β =1.5 for a fund. When the market rises by 10%, the fund’s Net Asset Value would rise by 10%* β = 15%. Similarly, if the market falls by 5%, the fund would decline by 5%* β= 7.5%. Hence, while choosing a fund consider the one which offers maximum returns with a lower β. FAQs How do you calculate the volatility of a fund? The volatility of a fund is calculated as the standard deviation multiplied by the square root of the number of periods of time, How do you explain volatility? Volatility refers to the movement of stock prices. When the price of a stock increases or decreases over a particular period, it indicates its volatility. How do you explain the volatility of a portfolio? Portfolio volatility means portfolio risk. It talks about the fund or portfolio's deviation from the set standard. What is good volatility? Volatility within a range of 10-20% is average and therefore, indicates minimal risk and deviation from the standard. DisclaimerMutual funds are subject to market risk. Please read all documents carefully before investing
What are Index Funds? Cons of index funds

What are Index Funds? Cons of index funds

We sometimes mimic the best strategies or life plans of our role models. Similarly, the index funds track or mimic the market indices such as Nifty 50, Sensex, etc. These funds use a passive investment strategy, where the responsibility of the fund manager is to only mimic the composition of the Index. This is the opposite of the active investment strategy used by mutual funds which promise to beat the benchmark or market returns, where the fund manager carefully analyses the market for opportunities and picks the perfect stocks for the portfolio by constantly buying and selling stocks and other assets to deliver the best return.  Whereas, the Index fund merely mirrors the companies or securities present in a particular index. For example, if ABC stock makes up 5% of the value of the Index, then the fund manager of XYZ fund with a Net Asset Value (NAV) of 10,000 will allocate 5% which is 500 to buy ABC stock. The idea of this investment strategy is “If you can’t beat them, then join them” – where one receives the average market return. Hence the responsibility of the manager is limited to only following the composition of the index and including the same in the fund, with an objective to deliver similar returns (with the same risk exposure) as the index. Index funds deliver a return smaller than the benchmark that they are tracking. Since there is no such thing as a free lunch, this is the expense ratio which is the fees charged by the fund to manage your money. An Index fund tracking Sensex (India’s benchmark stock index. Its composition is 30 of the largest and large-cap stocks), would invest in the same 30 stocks in the same proportion. Index funds can track different assets such as – stocks, bonds, commodities (Such as Oil, Gold, etc.), and currencies.  Cons of Index funds 1. Vulnerability to market crashes and market risks These funds are exposed to the same risk as that of the indices that they mimic. For example, if the Sensex comes down in value (similar to the crash of the Sensex in March 2020, where it fell by 23%), the funds tracking this index would follow the decline and have wealth destruction or decrease in NAV. Index funds which track bonds (This financial instrument are similar to the loan. Here, the investor is the lender, and the party which issues the bond is the borrower. The lender/investor receives a periodic interest payment – also known as a coupon. However, the bonds are tradable on stock exchanges), are prone to changes in interest rates. When the interest rates in the market decrease (regulated by RBI), the demand for bonds increases, and hence the price of the bonds increases. This leads to an increase in the NAV or the Index funds which track these bonds. Whereas, when the interest rates increase, the bonds decline in value and hence put these funds in the danger zone. 2. Less Flexibility & Limited Gains The fund cannot invest in a sector that is performing extremely well if it is not a part of the Index that it tracks. Hence, the gains that could be earned in case of a sector boom become limited. The investor only earns the returns of the market, whereas an investor in an actively managed fund could earn higher. Why should you consider investing in Index Funds? 1. Lower Expense Ratio? Lower cost (Paisa Vasool) As mentioned earlier, due to the passive investment strategy, the expense ratio or the fee charged to the investor is lesser when compared to actively managed funds which frequently buy and sell. charge higher for these transactions and services provided. This could drag down the growth of the portfolio over a longer period of time. This is illustrated by an example as shown below. If an investor had invested Rs.50,000 in 1991 (30 years ago) in Index fund A, he would have received a return of 11.7% and his investment would amount to 12.2 lakhs. Whereas, in Fund B it would amount to 10.1 lakhs (as shown in the figure). This difference of 2.1 lakhs is due to the lower expense ratio of the Index fund. Hence, in the longer term, these funds perform better than the actively managed funds offering similar returns. It is important to check the benchmark of an actively managed fund and decide if it is doing justice for the higher expense ratio that is being charged. Hence by surrendering to war with the market, you actually win.      2. Diversification: Ensuring that you don’t put all your eggs in one basket These funds are an indirect instrument of buying into the entire market, which implies that as an investor you are exposed to the entire market and its risks. If a sector such as Pharma was in the boom during March 2020, but the Financial sector stocks saw a decline – the stocks that are appreciating make up for the ones that are declining to keep the returns constant or increasing – implies a diversified portfolio.  FAQs What are Index Funds? Index funds are investment funds that follow a benchmark index like Nifty 50, Sensex in India and globally, S&P 500 or the NASDAQ 100. Are index funds a good investment? Index funds are a good investment for long-term investors. It passively tracks the benchmark index like S&P 500 or the NASDAQ 100 and invests in companies that have a proven history of profit. What is index funds for beginners? Yes, Index funds are a good investment for long-term investors. It passively tracks the benchmark index like S&P 500 or the NASDAQ 100 and invests in companies that have a proven history of profit. What is an example of an index fund? Here are some examples of index funds in India -IDFC Nifty 50 IndexNippon India Index S&P BSE Sensex Why Should You Consider Investing In Index Funds? Index funds replicate indices such as Nifty 50 and SENSEX which means they are not actively managed and the expense ratio for these funds is low. Another benefit of investing is portfolio diversification as the fund invests in companies across sectors from finance to pharma. Conclusion When you are choosing an Index fund, aim to invest in a fund that tracks a large portion of the market hence giving a wider range of a diversified portfolio. Also, chose a fund with low tracking error – which is the difference between the Index returns and the funds' returns. Hence a fund with a low tracking error indicates that it mirrors or tracks the index closely. Another aspect to consider while choosing the fund is the cost of the fund and past performance.
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