Fall 2024 Scholarship: Get Up to $10K for Your Master's Abroad! Fall 2024 Scholarship: Get Up to $10K for Your Master's Abroad!

Apply now

EduFund Blogs

DSP Nifty 50 Equal Weight Index Fund 

DSP Nifty 50 Equal Weight Index Fund 

 One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP Mutual Funds is backed by the DSP Group, an almost 160-year-old Indian financial giant.  In this blog, let us explore their  – DSP Nifty 50 Equal Weight Index Fund.  About the DSP Nifty 50 Equal Weight Index Fund  Investment Objective: The primary investment objective of the Scheme is to invest in companies that are constituents of the Nifty 50 Equal Weight Index (underlying Index) in equal proportions and it seeks to generate returns (before fees and expenses)  that mirror the performance of underlying index, subject to tracking error.   Note: There is no assurance that the investment objective of the Scheme will be realized  What is in the DSP Nifty 50 Equal Weight Index Fund?  This is an index fund that replicates the Nifty 50 Equal Weight Total Returns Index (TRI) i.e., same stocks and same weights.  Rebalancing an equal-weight index introduces a value tilt. By assigning equal weight to each constituent, the index leans towards smaller market-cap companies and lower valuations, which have historically outperformed their larger counterparts.   The portfolio is re-aligned every quarter so every stock's weight is brought back to 2%.  The portfolio is rebalanced semi-annually to adjust for any stock additions or subtractions to the Index.  Portfolio Composition  The portfolio is well diversified across market caps and sectors. It had 98.48% of the funds allocated to large-cap stocks, and 1.52% to mid-cap stocks. At the same time, significant sectoral exposure is to banks and automobiles. The top five sectors hold more than 60% of the portfolio.  Note: Data as of 29th February. 2024. Source: Value Research   Top 5 Holdings  Name Weightage % Bharat Petroleum 2.54 Tata Motors 2.51 Adani Ports and Special Economic Zone 2.44 Oil & Natural Gas 2.42 Sun Pharmaceutical 2.40 Note: Data as of 29th February. 2024. Source: Value Research  Performance   Particular DSP Nifty 50 Equal Weight Index Fund NIFTY 50 Equal Weight TRI ^ Nifty 50 TRI  CAGR (%) CAGR (%) CAGR (%) 1 year 42.87 43.61 28.42 3 years  21.75 22.39 16.12 5 years 18.97 20.09 16.64 Since Inception 13.87 14.83 14.23 Note: Data as of 29th February 2024. The fund is of direct-growth option. Source: DSP MF  Fund Manager  Mr. Anil Ghelani is a fund manager. He has been managing this fund since July 2019 and he has a total work experience of 26 years.  Mr. Diipesh Shah is a fund manager. He has been managing this fund since November 2020 and has a total work experience of 22 years.  Who Should you consider the DSP Nifty 50 Equal Weight Index Fund?  This is a smart way to build wealth by investing conveniently and equally in the top 50 Indian companies.   This fund follows the philosophy that every company has a chance to outperform accordingly.  This fund is relatively low-cost, with a comparatively lower expense ratio than active large-cap funds.    The portfolio of this fund is well diversified and it avoids undue concentration in a few stocks/sectors.  It can help you beat the impact of rising prices over the long term  This is a zero-bias product since it only replicates the index and does not carry any stock or sector bias.   Recognize market falls as good opportunities to invest even more.  Accept that equity investing means exposure to risk.  Start a goal to save for your child's college dreams! Time Horizon  One should look at investing for a period of ten years or more.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The DSP Nifty 50 Equal Weight Index Fund has a proven track record of more than 6 years, where it has delivered a CAGR (Compounded Annual Growth Rate) of 13.87% as of 29th February 2024, since its inception in October 2017. As the fund invests in Nifty 50 Equal Weight Index Fund it carries high risk. Hence one can consider it from a long-term point of view for wealth creation.   Disclaimer: This is not recommendation advice. All information in this blog is for educational purposes only.  Invest Now
Tata Money Market Fund 

Tata Money Market Fund 

Tata Asset Management Private Limited (TAMPL) manages investments of Tata Mutual Fund. TATA is one of the pioneers of the Indian Mutual Fund Industry. With an average AUM of more than Rs 1.3 Lakh crore, the AMC is among the oldest asset management companies in the country. It has a 30-year track record in investment management.  Let us get to know about – Tata Money Market Fund.  About Tata Money Market Fund  Investment Objective – The investment objective of the scheme is to generate returns with reasonable liquidity for the unitholders by investing in money market instruments.   Investment Style – A money market scheme (liquid fund category) that invests 100% of its net assets in money market securities i.e., securities having a maturity of less than one year.  Investment Philosophy   Liquidity: To manage the short-term cash surplus of investors and provide optimal returns with moderate levels of risk & high liquidity.  Low Risk: Effective credit risk management. Investments are only done in high-quality money market instruments  Transparency: Clearly defined investment universe & asset allocation. All disclosures & portfolios are publicly available.  Portfolio Composition  The portfolio comprises 92.35% allocation in debt, and the remaining 7.65% is held in cash and cash equivalents.   Note: Data as of 29th February, 2024. Source: Value Research Top 5 Holdings for Tata Money Market Fund   Name Instrument Weightage % Punjab National Bank CD 31/01/2025 Certificate of Deposit 4.24 ICICI Securities Ltd CP 365-D 23/01/2025 Commercial Paper 4.22 Reserve Bank of India T-Bills 182-D 06/06/2024 Treasury Bills 3.48 Small Industries Devp. Bank of India Ltd CD 07/02/2025 Certificate of Deposit 3.38 Kotak Mahindra Bank Ltd CD Certificate of Deposit 3.25 Note: Data as of 29th February, 2024. Source: Value Research  Performance Since Inception  Period Tata Money Market Fund return (Annualised) (%) CRISIL Money Market B-I Index (%) CRISIL 1-year T-bill Index (%) 1 Year 7.88 7.66 7..36 3 Years  5.85 5,68 5.06 5 Years 6.26 5.78 5.52 Since Inception 6.61 7.03 6.42 Note: Data as of 29th February,2024 Source: tatamutualfund.com Fund Manager  Mr. Amit Somani, has over 21 years of experience in Global and Indian financial markets specializing in Credit Analysis and Fund Management. Amit is currently managing Tata's Liquid Fund, Money Market Fund and Banking & PSU Fund. He joined Tata Asset Management Pvt. Ltd. as a Credit Analyst in the year June 2010 and since September 2012, he has been working as a Fund Manager (Fixed Income). He has been managing this fund since 16th October, 2013.  Who Should Invest in Tata Money Market Fund?  This fund is suitable for Investors  Who have a short-term investment horizon and low risk appetite.   Who are looking for regular income over short term.  Who wish to seek exposure in money market instruments.   Ideal Time to Stay Invested   Ideal for investment with a time horizon of up to 12 months.  Want to start investing for your child's future? Conclusion  Tata Money Market fund is an open-ended debt scheme investing in money market instruments. It has relatively low interest rate risk and moderate credit risk and serves as an alternative to traditional instruments such as FDs. The portfolio of this fund is composed of high-quality bonds and is positioned to capture yield movement in the short term. Thus, investors who want to park their money for a short period with low to moderate risk metrics can explore this fund.  Disclaimer: This is not recommendation advice. All information in this blog is for educational purposes only.  Invest Now
HDFC Asset Allocator Fund of Funds 

HDFC Asset Allocator Fund of Funds 

HDFC Asset Management Company Ltd. (HDFC AMC) is one of India's largest mutual fund companies and among the most profitable asset management companies (AMC) in the country. For the period from October 2023 to December 2023, the company had an average AUM of over Rs. 5.51 Lakh crores (excluding domestic fund of funds). Let us talk about the consumer product—HDFC Asset Allocator Fund.  About HDFC Asset Allocator Fund of Funds HDFC Asset Allocator Fund of Funds is an open-ended fund of funds investing in equity-oriented, debt-oriented and gold ETF schemes through a systematic and process-driven asset allocation approach based on the financial model.  Investment Objective   The scheme aims to generate long-term capital appreciation/income by managing the asset allocation between equity-oriented, debt-oriented and gold ETF schemes.   Investment Process   The scheme seeks to allocate 40-80% of its assets to equity-oriented schemes, 10-50% to debt-oriented schemes and 10-30% to gold ETF.  The scheme considers factors such as TTM P/E, 1 Year Forward P/E, TTM P/B and Earnings Yield while determining equity allocation.  For debt allocation, the scheme aims to invest predominantly in schemes with exposure primarily to issuers with high credit quality.   Portfolio Composition  The fund holds 43.82% equity, 36.79% debt, 12.1%commodities, 0.73% real estate, and 6.56% in Cash and cash equivalents. The significant sectoral exposure is to Financials, which account for over 14.66% of the equity portfolio. The top five sectors hold more than 30% of the equity portfolio.  Note: Data as of 29th February 2024. Source: Value Research                                                         Top 5 Equity Holdings for Asset Allocator Fund   Name Weightage % HDFC Flexi Cap  17.01 HDFC Top 100  16.61 HDFC Small Cap 4.24 HDFC Mid-Cap Opportunity 3.93 HDFC Large and Mid Cap 2.06 Note: Data as of 29th February 2024. Source: Value Research  Top 5 Debt Holdings for Asset Allocator Fund  Name Weightage % HDFC Short Term Debt 15.18 HDFC Gold ETF  12.32 HDFC Low Duration  6.71 HDFC Medium Term  5.89 HDFC Income Direct 3.50 Note: Data as of 29th February 2024. Source: Value Research  Past Performance  Fund name 1Y  Since Inception HDFC Asset Allocator Fund (%) 26.63 17.47 Benchmark Returns (%) 20.46 12.85 Additional Benchmark Returns (%) 28.40 16.97 Note – Returns are of Direct Plan as on 29th February 2024.  Benchmark Composition - 90% NIFTY 50 Hybrid Composite Debt 65:35 TR Index + 10% Domestic Prices of Gold arrived at based on the London Bullion Market Association's (LBMA) AM fixing price. Additional Benchmark Index – NIFTY 50 (Total Returns Index)  Fund Managers for HDFC Asset Allocator Fund of Funds  The following fund managers manage the HDFC Asset Allocator Fund of Funds.  Mr Srinivasan Ramamurthy (Since 13th January 2022). He has a total of 12 years of experience in this field.  Mr Anil Bamboli (Since 05th May 2021). He has a total of 28 years of experience in this field.  Mr Bhagyesh Kagalkar (Since 02nd February 2022). He has a total of 28 years of experience in this field.  Why Invest in this Fund?  Timing the market for various asset classes is difficult as different asset classes behave differently across different economic cycles.  Combining negatively correlated/ less correlated asset classes - Strong case of diversification and mitigates volatility of portfolio returns  Reduces dependency on a single asset class to generate returns  Financial model-driven approach to asset allocation  Who Should Invest in HDFC Asset Allocator Fund?  Investors who are seeking  Capital appreciation over long term  Investment predominantly in equity-oriented, debt-oriented, and Gold ETF schemes.  Time Horizon  One should look at investing for a minimum of three years or more.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The HDFC Asset Allocator Fund has been in existence for nearly three years. The fund allows exposure to different asset classes without worrying about identifying the individual mutual fund schemes. However, since it is a fund of funds, there is a double incidence of expenses charge. Investors who wish to have exposure to different asset classes for long-term capital appreciation can consider this fund.  Disclaimer: This is not recommendation advice. All information in this blog is for educational purposes only.  Invest Now
Boarding School or Day School: Advantages and Disadvantages

Boarding School or Day School: Advantages and Disadvantages

Your child needs a good school to be educated and gain skills to manage life challenges and become a better person. But it's tough to decide which is the best school for your child. The dilemma strikes between choosing a boarding school or day school.  The boarding school or day school debate is not new but is an essential pillar to choosing what is best for your child. Before we compare both the categories, let us have an understanding of what a boarding school and a day school are.  What is a Boarding school? A boarding school refers to an academic institution where students can stay full-time and do all their school activities. The students and teachers both stay within the school campus in their particular hostels.  A boarding school pays attention to holistic student development apart from academics. There are also girls-only or boys-only boarding schools within India that cater to the education of a particular gender.  Best International Boarding Schools in India Read More What is a Day school? A day school refers to an educational institution where students study within their particular classes throughout the day hours. They involve themselves in all the co-curricular, sports, and academic activities while staying in their houses.  The general day schools run from morning and go up to afternoon when teachers impart education with the primary focus of polishing the academic background of the students. Once school is finished, students can go back to their respective homes and spend time with friends and families.  Benefits of Day Schools Read More Boarding school or Day school? Boarding school and day school debate has been constant in the field of education. As the two institutions of giving education are different, parents often remain conflicted when it comes to choosing a school for their child.  The central and most important aspect of education refers to the round development of students. It is something that both these schools and boarding schools can ensure. But, there is an additional breakdown of boarding schools or day schools that may just help you make an informed decision as a parent.  Pros of Boarding school Let us begin by taking a look at the advantages of a boarding school for your child:  A boarding school provides round-the-clock development and education. They are strict about homework so you can rest assured that your children are getting it done in an environment free from destruction.  Boarding schools help foster independence. It cultivates self-reliance and gets the children used to the concept of staying away from home.  It is a perfect solution when it comes to busy parents. It provides the ideal solution for career-concentrated parents who are conscious that their kids are adequately supervised and encouraged to take part in many out-of-school activities.  Cons of Boarding school Now, let us understand the disadvantages of boarding schools:  Homesickness is going to strike the students at some point. They will stay away from home in an unfamiliar environment for the first time and it will take some time for them to get used to the new situation.  The cost of boarding schools is significantly higher. It costs a lot more than day school.  Parents think that they will be less involved in the upbringing of their children. They will relinquish many decisions that they would normally consider about their child. Pros of Day school Let us turn our attention to the day schools now. Here are some of the advantages:  You are going to see your kids every night and every morning when they wake up. Your kids can discuss any concerns with you.  The cost of day school is much more affordable than boarding school. It is one of the major arguments when it comes to the favor of sending your kids to day school apart from boarding school which is quite cheaper.  Cons of Day school What comes with advantages also comes with some disadvantages. Here are some of them:  Day school puts more demands on your time. This indicates that if you are a career-oriented person it will make it challenging for you to put the required time into taking care of your children.  Day schools also anticipate more parental involvement in parent-teacher meetings and other such occasions.  Daily transportation costs and daycare activities are other factors to consider when sending your child to a day school. How to make a decision: Boarding school or Day school? If money is not a restriction for you and you look forward to your kid being entirely immersed in the educational environment, a boarding school has much more to offer and is worth considering. On the other hand, a day school is the right option for you if you want to be more involved in daily educational activities!  FAQs Is boarding school better than day school? Boarding schools are a great option for parents who are constantly moving and want to offer their kids stability. Boarding schools provide a holistic learning environment and can do wonders for your kids' routine and, development growth. Both have their advantages and disadvantages, based on your preference you can opt for the type of schooling that agrees with your kid and your lifestyle. What are the advantages of day school than boarding school? The biggest advantage of day school is that your child can spend more time with you at home. They can develop hobbies after school, enroll in classes, and even develop social skills and networks separate from their school life. Is boarding school good or bad? Boarding schools have their pros and cons. Pros: They are great learning institutes that teach independence, and routine and contribute greatly to one's development and growth. Cons: Students may experience peer pressure, and separation anxiety and may experience loneliness because they are away from their parents and family.
What will be the value of 1 lakh after 20 years?

What will be the value of 1 lakh after 20 years?

Surprisingly, INR 1 lakh in 2001 is only worth about INR 27,000 today due to inflation. This means that the effect is exactly like compound interest since inflation happens on top of inflation from the prior year. In this blog, we'll examine the reasons why this happened as well as what will be the value of 1 lakh after 20 years. What will be the value of 1 lakh after 20 years? Simply said, with 1 lakh rupees of money 20 years ago, you could have bought a lot more than you can today. As a result, even if you can acquire 1 lakh rupees or more after saving for 15, 20, or 30 years, its actual value would be substantially lower.1 lakh would be worth roughly INR 48,000 in 15 years, assuming a 5% inflation rate. Additionally, the value decreases even more with a longer time horizon. Assuming an annual inflation rate of 5%, the value of one lakh will be about INR 37 thousand, INR 29 thousand, and INR 23 thousand after 20, 25, and 30 years, respectively. The answer is to set aside money that is adjusted for inflation. You must first inflate the goal's cost to determine the criteria for that. Start a SIP after that to begin saving for the inflated goal cost. How can SIP make you rich? SIP can be used to invest in long-term equity. You may use it to routinely make small mutual fund investments without attempting to time the market. It would be advantageous if you kept up with SIPs during both the bull and bear market periods to accumulate money. Let's take a look at an example of how SIP may make you rich Think about investing INR 10,000 in an equity fund every month. You may build an INR 3.53 crore corpus if you invest just INR 10,000 per month through a SIP in an equity fund over 30 years. Compounding power increases money and helps you become wealthy. To develop a sizable corpus for retirement, you will need to start saving early so that you may do so throughout your working life. Please be aware that we've projected a 12% average return from the equity fund. The markets and the fund might affect actual results. Value of 30 lakhs after 20 years READ MORE What is inflation? Inflation is sometimes quantified in generic terms, such as the overall increase in prices or the increase in the cost of living throughout a country. However, it may also be computed more precisely for certain products, like food, or services, such as haircuts or travel expenses. Inflation, regardless of the setting, is a measure of how much a certain set of products and services have grown in price over time. According to inflationary pressure, you should expect to pay more this year than you did last year for the same products and services. You can benefit if you had the assets before the price increase, such as houses and stocks. But your purchasing power decreases if your income does not keep up with inflation. Over time, inflation increases your cost of living, and if it is severe enough, it may be detrimental to the economy. For a nation's economy, high inflation has far-reaching effects. Calculate Mutual Fund SIP Returns Assessing the impact of inflation Let's calculate how much you would need to have in 10, 15, 25, and 30 years to equal the wealth valued at INR 1 lakh now. In 10 yearsIn 15 yearsIn 20 yearsIn 30 yearsEquivalent Corpus22.85.47.6Multiplication Factor22.85.47.6 Consider your child's further education as an example. Assume it costs INR 20 lakh at the moment. Assume once more that he would attend college in 15 years. Now you need to calculate how much this education which currently costs INR 20 lakhs will cost in 15 years. Utilize the 2.8 multiplicands from the chart above. To pay for your child's further education after 15 years, you would need a corpus of (INR 20 lakhs * 2.8) = INR 56 lakhs How to fully secure yourself and your family's future? You need to be more calculated and cautious if you're going to save money for your post-retirement lifestyle. In addition to inflation, you must take into account the likelihood of surviving past your planned retirement age and changes in interest rates. You should review and reevaluate your goals. Working with actual figures is necessary. You may speak with financial experts at EduFund if you're unsure about where or how to invest. By using EduFund to invest your money, you can support the dreams of your kids. Install the EduFund app on your device to book a free consultation call with the experts. To avoid having their child's bright future ruined by education inflation, parents may start saving for their child's college education early on. Related reads: What is the value of 30 lakhs after 20 years? What will be the value of 1 crore after 20 years? FAQs What will be the value of 1cr after 20 years? If we assume an inflation rate of 5%, the worth of Rs 1 crore after 20 years is about Rs 37 lakh! What will be the value of 1 cr after 15 years? If we assume an inflation rate of 5%, the worth of Rs 1 crore after 15 years is about Rs Rs 48 lakh. What will be the value of 1 cr after 30 years? The value of 1 Cr in 30 years will decline and become Rs. 23 lakhs due to inflation. What will be the value of Rs. 1 lakh in 15 years? 1 lakh would be worth roughly INR 48,000 in 15 years, assuming a 5% inflation rate. What is inflation? Inflation is sometimes quantified in generic terms, such as the overall increase in prices or the increase in the cost of living throughout a country. TALK TO AN EXPERT
What is the right time to invest in mutual funds? 

What is the right time to invest in mutual funds? 

Planning the investment journey is an important decision that one makes in their lifetime. All of us invest to achieve important goals such a buying a house, buying a car, financing children’s education, getting married, retirement planning and many more. Apart from the financial element here, these goals are also emotionally important to us. As such, we make sure to put in the best research and invest our money. Mutual funds are a popular choice amongst investors, given their returns, liquidity and professional management. An important question that comes up in the minds of us investors here is, ‘What is the right time to invest in mutual funds? At the outset, let us answer this question – the moment you decide to start your investment journey is the right time to invest in mutual funds. Before we delve further into this, it is important we understand more about mutual funds. Let us begin with the basics! Investment in mutual funds can be done in 2 ways! SIP - Systematic Investment Plan   Lumpsum.  SIP – is a pre-decided amount that will be deducted periodically from the registered bank account on the specified date.  Lumpsum: a single sum of money, typically invested at one time rather than in smaller, periodic instalments.  Now let us look at the parameters that one should bear in mind before planning their investments (Note: these parameters are not all-inclusive but are among the important ones).  Purpose of Investment:  When you start investing; the investment objective should be clearly defined. Distinguish if your goal and its time horizon are definitive or flexible. If you aim for higher long-term returns, you should be open to taking on more risk and might consider investing in pure equity funds. On the contrary, if your goal is capital protection, you can consider low-risk investments that offer relatively lower returns.  Investment Horizon:  Different categories of mutual funds are available depending on your time horizon, with debt funds suitable for short-term and pure equity funds for a long-term horizon. Mutual funds do not come with any lock-in period except ELSS funds, which have a lock-in period of three years. An aggressive or riskier portfolio can be built if your investment horizon is longer, but if your investment horizon is relatively shorter, then conservative funds are more apt.  Let us understand the different horizons (Note: these serve only as a general point of reference and can vary based on personal factors)  Short-term Investment Horizon: The short-term investment horizon refers to an investment expected to last about one to two years. This investment would be appropriate for investors whose retirement is near, may need large sums of cash soon and need to park their money. Debt funds can be a suitable choice for this type of horizon as they are relatively less risky and can be liquidated more easily.   Medium-term Investment Horizon: The medium-term investment horizon refers to an investment expected to last about three to six years. This investment would be appropriate for investors who want to save for their personal goals such as buying a car, school/college fees or marriage. Given a medium-term horizon, hybrid funds can be considered suitable investments as they provide exposure to both equity, which provides higher return potential and debt, which provides portfolio stability.  Long-term Investment Horizon: The long-term investment horizon refers to an investment expected to last six or more years. Goals such as wealth creation, buying a house and a child’s education planning are generally considered long-term. Pure equity funds are appropriate instruments in the long term as volatility smoothens out, providing balanced risk-adjusted returns.   Risk tolerance: Every fund has different risk characteristics. Few asset classes are risky, such as pure equity funds, whereas other asset classes, like debt funds, are relatively less risky. Depending on its category and style of management, each mutual fund carries a unique amount of risk. An investor should decide which asset he can invest in depending on his risk appetite and financial ability.  Coming back to our primary argument of ‘What is the right time to invest?’ and why it is advisable to start as early as possible. The answer is simple – Compounding. Postponing the investment diminishes the power of compounding.  Let us understand the power of compounding with a simple example of three friends who invest Rs. 2000 per month. Their retirement age is 60, but they start investing at different ages.  Person Age Investment term (years) Investment Amount (INR) Future Total Value at Retirement (INR) A 25 35 8,40,000 1,29,90,538 B 30 30 7,20,000 70,59,828 C 35 25 6,00,000 37,95,270 Source: EduFundNote: Assumed rate of return is 12% p.a.  Even though they have all earned the same rate of returns per annum on their investment, A, who started investing early, has a considerably higher corpus at retirement. Another surprising fact is if ‘A’ stops his SIP when he is 55 (i.e. a 30-year period) and leaves that amount to compound till he is 60, he still would have a higher corpus than ‘B’ and ‘C’ of Rs. 1,24,41.828. Therefore, starting the investment journey early is a boon if you want to build a considerable corpus for your financial goals.  Join our WhatsApp community to learn more! To conclude, there is no perfect time that is ideal for an investment. We should cultivate the habit of investing regularly and with discipline. The two mantras to achieve your financial goals are: The best time to invest is now, and the best way to invest is regularly.  Start Early, Invest Now!
Importance of Asset Allocation in Mutual Funds 

Importance of Asset Allocation in Mutual Funds 

As they say, never put all your eggs in one basket. Suppose you do so; there is a chance that when the basket falls, all your saved eggs will be gone, and you will get nothing. But if you had kept all the eggs in different baskets, you could have saved a few of them. Analogous to the example of the eggs, diversification is essential when we plan our investments.  Asset allocation distributes your investments across available asset classes such as equity, debt, gold, real estate or holding cash. Asset allocation is based on factors such as your financial goal, risk appetite, and financial conditions, which change over time. Simply put, asset allocation is similar to a buffet dinner where a variety of tempting dishes are available, and you need to help yourself with some of them, depending on your tastes. By allocating your assets, you essentially adopt an investment strategy that balances your portfolio's risk and reward.  The first step towards asset allocation is setting your goal, examining your finances and understanding risk tolerance. Investors can engage with a financial planner to undertake risk profiling tests that accurately capture their risk appetite. The next step is to be aware of one’s financial commitments and then arrive at the investment required to meet financial goals.  Can't Miss This Opportunity: Groww Nifty Small Cap 250 Index Fund Benefits of Asset Allocation Optimal returns: Many investors are investing impromptu. Some investors are very conservative, and some are very aggressive, so they invest accordingly. As a result, they may not earn adequate risk-adjusted results on their investments. The right asset allocation will help provide efficient returns as investments will be diversified.    Minimize risk: While each asset class has its own risk and return. When you diversify your investment, it minimizes volatility. Asset allocation ensures that your portfolio risk is spread over various asset classes.  Lower stress: Spreading investment across various asset classes provides a cushion during a volatile market. Which ultimately keeps your stress lower as an investor. Proper asset allocation helps investors cope with volatility or loss better.   To help you better understand why asset allocation matters, let us look at the annual returns for different asset classes in 2018 and 2023.   Source: Mint Source - Mint  As evident from the above graphs, asset returns exhibit significant fluctuations annually. Some assets yield higher returns in one year, whereas others outperform in other periods. As seen in the above charts, small caps and mid-caps delivered negative returns in 2018, where gold delivered the highest return in the calendar year amongst all the asset classes. On the other hand, mid-caps and small caps were the top performers in 2023, where gold was at the fourth rank. So, if an investor invests only in one asset class, he risks losing his returns.  Consider two examples to understand this better:  An individual solely invested in equities in 2018 with the allocation as follows:   Large Cap – 50 %  Mid Cap – 25%  Small Cap – 25%  would have experienced a loss of 6.3% in their portfolio, potentially encountering significant challenges in meeting financial obligations.   On the other hand, a well-diversified portfolio with asset allocation of:   Equities – 70% (50% large cap, 10% mid and small cap each)  Gold – 15%  G Secs – 15%  would have positive returns of 1.72% in 2018. This is the benefit of asset allocation; a well-diversified portfolio reduces drawdowns during bear markets and enhances portfolio stability. This would enhance your ability to meet financial obligations in such periods, if any.   Want to learn more about investing? Join our WhatsApp community! To conclude, we know that the investment journey comes with many twists and turns. Markets inherently are volatile; they rise and fall over time. So, an investor should build a well-diversified portfolio wherein investments are allocated to the different asset classes to ride this wave of volatility. By prioritizing asset allocation in your investing approach, you'll steadily progress towards achieving your goals with each passing day.  Happy Investing! 
Cost of Delay Explained 

Cost of Delay Explained 

There is a widespread notion amongst investors that the reward will be higher if you invest at the right time. Now, the question arises: what is the right time to start investing? Some might feel it is too early, some might feel it is too late, but the answer to this most asked question is the right time to start investing is NOW, i.e. the moment you decide to invest.  At the outset, let us first differentiate between saving and investing. Consider two siblings Ram and Lakhan.  Ram, as a child, is passionate about filling his piggy bank, so he puts all his pocket money in it. Here, what Ram is doing is Saving.  On the other hand, Lakhan gives all his pocket money to his mom, who puts that money in a mutual fund on his behalf, where the savings will multiply with time. Here, what Lakhan is doing with his mother’s help is Investing.   When we compare here, Lakhan will get a larger corpus than Ram after 15 years, as he will benefit from compounding! It is like your money is earning money for you!  The earlier you start and stay invested, the more time your money will get to grow and compound. When an investment gets delayed, investors see a significant impact on their investment. This is because the delay caused takes away the time available for compounding. This eventually creates a shortfall when it comes to meeting financial goals like retirement, a child's education, marriage, etc.   For better understanding, let us consider the example of two friends – Raju and Farhan, who want to create their retirement corpus. We assume the retirement age is 60, and both invest Rs. 2,000 a month at a return of 12%. Raju started early when he was 25, and Farhan started when he was 30.   Table 1   InvestorAge Term (years) Investment Amount (INR) Future Total Value at Retirement (INR) Raju 25 35 8,40,000 1,29,90,538 Farhan 30 30 7,20,000 70,59,828  Even though both have earned the same rate of returns per annum on their investment, Raju, who started investing early, has a considerably higher corpus at retirement.   To understand the cost of delay for Farhan, let us consider that Raju stops his monthly investment at age 55, i.e., a 30-year period, same as Farhan and let the accumulated amount compound till he retires at 60.  Table 2: Hypothetical Scenario Name Investment term Investment amount Future Total Value at Retirement (INR) Cost of Delay Raju 30 7,20,000 1,24,41,828 53,82,000  Given that both invested the same amount, but because Farhan started five years later, he lost out on returns of Rs. 53,82,000. Shocking, isn’t it? Therefore, starting the investment journey early is a boon if you want to build a considerable corpus for your financial goals.  Akin to the hare and tortoise story, slow and steady investments that start early will help you achieve your financial goals comfortably. In a nutshell, be mindful of these few things while investing:   Start today – Even if your investment amount is small, today is the best day to start.  Invest regularly – Make regular investments through SIP or lumpsum as and when you have money. Stay invested through market volatility, keeping your financial goal in mind. Invest with discipline, and most importantly, be patient to see the wave of compounding around your investment.  Join our robust WhatsApp Community that helps parents invest! By now, we know that delaying investments can impose a huge opportunity cost. Timing the markets is a tempting proposition. Still, over the years, multiple research reports have shown that the costs incurred from waiting for the ideal moment to invest generally outweigh the potential benefits of perfectly timed investments. Systematically investing over a period, in the long run, is a proven mantra for wealth creation. Always prioritize initiating investments at the earliest opportunity available.   Please consult your financial advisor before making any investment decisions, and happy investing!  Start early to save big!
Mutual Fund Fees and Expenses 

Mutual Fund Fees and Expenses 

Sometime back, I encountered a mythological tale from the Mahabharata depicting the narrative of Draupadi, who married five husbands. The story told how Draupadi had asked Shiva for a husband with five qualities - virtue, strength, learning, charm and wisdom. Since no single man could possess all five traits, Shiva gave her five husbands, each with one trait. Similarly, in investing, we would like to have a singular option that provides a plethora of benefits, such as higher returns, reduced risk, professional management, no lock-in period, and accessibility. Luckily, here we have mutual funds to our rescue. Let's look at mutual funds, how they work, and the mutual fund fees and expenses to consider before you embark on your investing journey! Join our robust WhatsApp Community that helps parents invest! What is a Mutual Fund?  A mutual fund is a trust that pools the savings of several investors who share a common investment rationale. Fund managers associated with schemes manage the investors’ money by investing in securities to generate returns and charge fees for that return generated. The remaining return is passed on to the investors. A mutual fund investment involves several expenses, and you, as an investor, should be aware of these fees.   Cost of Delay Explained What are the fees associated with Mutual Fund Investment?  Here are all the mutual fund fees and expenses that you need to be aware of before you start your SIP (monthly) or place a one-time order. Entry load Entry load is the amount or fees an investor pays while entering the scheme. Entry load is collected to cover costs of distribution by the company. Earlier, different mutual fund houses charged different fees as entry load. However, according to the latest SEBI regulations, no fund house can charge an entry load from investors.  Exit load Exit load is the amount that Asset Management Companies (AMCs) charge when an investor is exiting or redeeming their funds. It is a fee charged by the fund house as a penalty for an early exit. The primary objective behind these fees is to discourage investors from pulling out their investments too early. The exit load differs from scheme to scheme. Generally, in India, equity schemes attract an exit load of 1% if the units are redeemed within a year from the date of allotment.  Transaction charges This charge is levied on an individual when they make investments. On average, a transaction cost of 100- 150 is levied on investments worth 10,000 and above. If investments are less than 10,000, then it does not attract these charges. Further, the government collects 0.005% of the overall purchase amount of all mutual fund schemes as stamp duty.   Expense ratio The expense ratio is the fees mutual fund companies charge to manage the mutual funds. It is expressed as a percentage of total capital invested. An expense ratio for an actively managed portfolio generally lies in the range of 0.5% to 0.75%; an expense ratio greater than 1.5% is considered very high.  For example, if the expense ratio is 0.5%, it implies that an annual payment is Rs. 50 is charged for every 10,000 invested. Here, it is essential to understand that the expense ratio is an annual fee charged if an investor retains ownership of the fund annually. Though presented as an annual fee, the amount is deducted daily on a pro-rata basis. When investors invest in regular schemes through distributors or brokers, AMCs pay these mediators a commission, hence in such cases the expense ratio will be higher.  Taxation on capital gains provided by Mutual Funds Knowing about taxes on your mutual fund investments is crucial. Profits from mutual fund investments are taxable. The holding period and type of mutual fund affect the tax rate on capital gains. The holding period refers to the time investors hold units in mutual funds.   Summary of Taxation of Mutual Funds for units to be acquired on or after 01st April 2023  Particulars Allocation of the Scheme to Domestic Equities is Less than or equal to 35% More than 35% but less than or equal to 65% More than 65% Type of Capital Gain Short term irrespective of the holding period Long term if units are held for more than 36 months Long term if units are held for more than 12 months Tax Rate Slab rate LTCG^ - 20% with the benefit of indexation LTCG - 10% of gains exceeding Rs. 1 lakh without indexation benefit - STCG^ - Slab Rate STCG - 15%       Note: Surcharge and Education Health and Education Cess are applicable separately   STCG – Short-Term Capital Gain and LTCG – Long-Term Capital Gain  Remember to account for fees and expenses when investing. Awareness about all the charges you pay throughout your investment journey is necessary. Understanding these costs is crucial because it ensures transparency, impacts returns, helps manage costs and aids risk assessment. Thereby helping you better plan your financial goals.  Start Investing!
Top Boarding Schools in Dubai for International Students

Top Boarding Schools in Dubai for International Students

Embark on an extraordinary educational journey as we unveil the top boarding schools in Dubai, where innovation meets opportunity and diversity thrives. The annual tuition fees for these schools start at AED 50,000, which is nearly 11 lakhs in Indian rupees! Let's look at some of the best schools and their fees in this article. Check out India's Pricest Schools! Top Schools in Dubai for Indians Dubai College: Situated in the heart of Dubai, Dubai College is renowned for its academic excellence and holistic approach to education. With state-of-the-art facilities and a diverse student body, Dubai College provides a supportive environment for students to thrive. Estimated: Years 7-11: AED 29,735 per term, payable in advance. Years 12-13: AED 33,670 per term payable in advance. Repton School Dubai: Set amidst lush greenery in Nad Al Sheba, Repton School Dubai offers a British curriculum with a focus on individualized learning and personal development. With a strong emphasis on extracurricular activities and community service, Repton prepares students for success in a globalized world. Estimated annual fees: AED 54,449 for Nursery classes & AED 97,850 for the 13th Year. Fees depend on the grade your child is in. GEMS Wellington International School: Located in the prestigious Al Sufouh area, GEMS Wellington International School combines academic rigor with a nurturing environment. With world-class facilities and a diverse student body, GEMS Wellington provides a well-rounded education that prepares students for future challenges. Estimated fees: AED 45,259 for FS1 & AED 98,465 for 13th Year. Fees depend on the grade your child is in. Kings' School Dubai: Nestled in the vibrant community of Dubai, Kings' School Dubai offers a dynamic learning environment with a focus on creativity and innovation. With a commitment to personalized learning and holistic development, Kings' School empowers students to become lifelong learners and global citizens. Estimated fees: AED 44,928 to AED 68,374 annually. Jumeirah College: Situated in the prestigious Jumeirah area, Jumeirah College is known for its academic excellence and strong sense of community. With a wide range of extracurricular activities and a supportive learning environment, Jumeirah College fosters a culture of curiosity and exploration. Estimated fees: AED 75,178 to AED 93,972 per year. Dubai British School: Located in the heart of Dubai Marina, Dubai British School offers a vibrant and inclusive learning community with a focus on academic excellence and personal growth. With a commitment to innovation and creativity, Dubai British School prepares students to thrive in an ever-changing world. Estimated fees: AED 50,496 to AED 75,746 yearly. Join our robust WhatsApp Community that helps parents invest! In today's fast-paced and competitive world, investing in your child's education is more important than ever. With the rising cost of living and limited financial resources, it's essential to plan ahead and secure your child's future. EduFund understands the challenges parents face and is dedicated to helping families achieve financial security through smart investments like mutual funds. By partnering with EduFund, parents can create a solid foundation for their children's education and ensure they have access to the best opportunities the world has to offer. Together, we can unlock a brighter future for the next generation. Start investing for their big dreams!
Which investment is best for your child’s future? 

Which investment is best for your child’s future? 

Financial planning is crucial when discussing the ideal investment to secure your child's future. Parents strive to provide their children with the best financial stability. Rightly planning out costs and selecting suitable investment options is one of the most effective techniques for achieving this goal.   The cost of education in India has been rising significantly. Studies suggest that the inflation in the education sector has been between 11-12 % annually over the last decade. These figures indicate that the costs of school can double every six to seven years. Creating a robust financial cushion is the best approach to beat this growing education inflation. Several options in India are designed specially to cater to the needs of children.   Investing in your child's future is a significant responsibility of a parent. It is crucial to make informed decisions while selecting any option. Here are the investment options available.  Sukanya Samriddhi Yojana: This Yojana is a government supported initiative and it was launched as a part of the “Beti Bachao, Beti Padhao” campaign. Here, the investment value is a Minimum of 250 and a Maximum of 1.5 lakh per annum. The current interest rate is 8.2% per annum. The maturity duration is 21 years from the account opening or upon the daughter's marriage. Investors get tax benefits under Section 80C, and also the interest and maturity values are tax-free.  Real Estate: Apart from investing only in property, one can now invest in REIT (Real Estate Investment Trust) and Real Estate Funds. Investing in REITs provides substantial dividend income and delivers steady capital appreciation over the long term.  Gold: Indian households are famous for investing in physical gold. Alternatively, parents can also choose between gold ETFs and sovereign gold bonds (SGBs) as a promising avenue for long-term investment. These avenues can be more profitable than physical gold as one saves costs on making charges and misses out on the 2.5% annual interest received on SGBs (2023-24 series IV SGBs).   Bank deposits: Historic tools of investment available in the market to earn regular and steady returns. Parents can invest for a more extended period; however, the return on it will not beat the rising inflation with the nominal return it delivers.  Mutual Funds: In mutual funds, we have options based on individual financial position, time horizon and risk tolerance. Equity mutual fund investments rank high among children's investment plans. As we know, mutual funds deliver better returns than other investment options available in the market. Historically, it has provided 12%-15% annualized returns.   Join our WhatsApp Community! We'd like to point out that mutual fund investments offer distinct advantages over real estate, gold, and fixed deposits. They provide diversification, liquidity, and professional management, reducing risk while potentially offering higher returns. Unlike real estate, mutual funds require a lower initial investment and entail no maintenance costs. Compared to gold, they tend to offer greater returns and accessibility. Additionally, mutual funds typically outperform fixed deposits, offering the potential for inflation-beating returns over the long term.  With proper planning and strategies as an investor, one can make decisions that accurately reflect investing goals. An investor can set a step-up SIP to get better returns. With mutual funds, the longer you stay invested, the better you will get.  Learn about asset allocation in 2 mins! Benefits of investing in a mutual fund Mutual funds are managed by fund managers who have professional expertise. A fund manager continuously monitors the investors' investment and rebalances the portfolio to meet the objectives.   Mutual fund investments offer an easy way to diversify your investment portfolio. With the benefit of diversification, the risk associated with one security is countered by others. By investing here, investors will ensure they are not putting all their eggs in one basket.  For many investors, investing directly in an asset class requiring large amounts can be daunting. A mutual fund provides the benefit of investing in small amounts. An investor can start investing with as little as 100 rupees investment in a mutual fund.  Mutual funds are also on the liquid end of the spectrum; an investor can redeem the amount quickly if required. Redemptions are settled on a T+3 basis. Mutual funds also provide tax benefits under section 80C of the Income Tax Act, 1961, if you choose to invest in ELSS funds. Mutual fund investments are tax-efficient when held for a longer period.  Join our WhatsApp community to learn more! If you read this, you would have understood that there is no single definition of 'best investment for kids'; instead, it is based on your future financial requirements, time horizon, and risk appetite. As a parent, remember to diversify, rebalance, and reallocate your investments periodically. Doing this will significantly reduce the effect of market volatility on your portfolio. If you are a young parent and starting the investment journey for your kids, consider investing in equity as an early investor to get relatively higher returns. Remember to bring discipline to savings and stay invested for the longer term.  If you are a parent looking for the best investment options for your kid's future, you are at the right place. Please book your meeting and connect with our wealth advisor.   Happy investing! 
How to choose the right board for your child's schooling?

How to choose the right board for your child's schooling?

Selecting the right board for your kid’s schooling is an important and life-changing decision. In India, there are many boards to choose from! There are IB, CBSE, and ICSE are known for offering English-medium instruction, great quality education along extra-curricular opportunities.  You can also send your child to State Boards where the medium of instruction is in the native state language. The plethora of options available can be confusing, here are some ways to help you choose! https://www.youtube.com/watch?v=dXcrpN2v3x0&t=76s List of Education Boards in India CBSE - Central Board of Secondary Education NOIS - National Institute of Open Schooling CISCE Council for the Indian School Certificate Examination UP Board - Board of High School and Intermediate Education Uttar Pradesh JKBOSE - Jammu and Kashmir State Board of School Education RBSE - Board of Secondary Education Rajasthan HPBOSE - Himachal Pradesh Board of School Education MPBSE - Madhya Pradesh Board of Secondary Education CGBSE - Chhattisgarh Board of Secondary Education PSEB – Punjab School Education Board HBSE - Haryana Board of School Education BSEB - Bihar School Examination Board GSEB - Gujarat Secondary and Higher Secondary Education Board MSBSHSE – Maharashtra State Board Of Secondary and Higher Secondary Education BIEAP - Andhra Pradesh Board of Intermediate Education BSEAP - Andhra Pradesh Board of Secondary Education WBBSE - West Bengal Board of Secondary Education WBCHSE - West Bengal Council of Higher Secondary Education https://www.youtube.com/watch?v=j5uKaYCAbco Tips to choose the right board for child schooling 1. Understand your child’s preferences  Before you select the right board, try to understand your child’s persona. Figure out your child’s interests. Are they academically inclined or interested in sports art or theatre? Most parents force their preferences on the child which may create unnecessary pressure on your child later in life. Knowing their interests and preferences can help you shortlist and select the right board for them. Top Education Boards in India. How to Choose the Right One? Read More 2. Costs involved  Before admitting your child to a specific board, you should consider factors associated with cost. Different boards in India have different costs. For instance, the average fee structure of CBSE annually is between INR 40000 to INR 80000. On the contrary, the average fee structure of the ICSE board is between INR 65000 to INR 90000. Hence, you have to carefully select between boards to check the right expenses.  3. Location of the school  In India, education is the cornerstone of development. A school that is located at a good site allows your child to learn things harmoniously. You should always choose a school that is located near your house Do you know that the school location is the second teacher for your child? The proper location of the school has the power to organize and promote pleasant relationships. A school located nearby drastically decreases your child’s transport fees. You don't have to pay expenses in the form of bus fares and pooling cars. If the travel time to school is longer, your child may feel tired. This will increase their stress and fatigue at the end of the day.  4. University preparedness  You should select a school affiliated with an educational board that best prepares your child for future career prospects. There are boards that design curricula based on your child’s university preparedness. Parents should understand that the initial years of their child’s growth are very crucial. You should enroll your child in a school affiliated with a board that offers universal education. With universal education, your child can achieve good grades when they study in foreign universities.  5. Curriculum and co-curricular activities  Largely, a good school stands apart because of its curriculum. The most common curriculum choices today are those created by various state boards, ICSE, and CBSE. The depth and breadth of the curriculum along with the teaching methodology influence the future success of your child.  For instance, if you have already made up your mind to send your child to the US and save funds for the same, you might want to consider a US-recognized curriculum. That’s why you need to conduct extensive research into the curriculum of the school.  6. Pedagogical methods  Parents typically think that the pedagogical methods deployed by teachers are influenced by school authorities. However, this is not true, as the board has the final say on the teaching style of the teacher.  https://www.youtube.com/watch?v=v4gmR-U_vHA&t=16s Join our WhatsApp Community FAQs Which board is best for children's education? Some of the most popular boards and most wanted boards by parents in India for their child's education are the Central Board of Secondary Education (CBSE) and the Indian Certificate of Secondary Education (ICSE). Which is better CBSE or ICSE best? ICSE and CBSE are the most popular boards in India. They are recognized by universities and colleges across the globe. CBSE is considered better because a majority of schools in India offer it at an affordable price, they are also widely recognized and preferred by most Indian universities and colleges. School kids preparing for JEE, NEET, and other national entrance exams prefer CBSE because there is a lot of commonality in terms of syllabus and exam pattern. Which board is best for the future? There are many education boards in India. Some of the most common are CBSE, IB, ICSE, and state boards. Amongst these CBSE is the most preferred choice for parents. Should I put my child in CBSE or ICSE? CBSE is widely available in India. The coursework and syllabus are less competitive and difficult when compared to ICSE, IB, or state boards. ICSE and IB board can help your child set a strong foundation for foreign studies and communication in the future.
Top Boarding Schools in UK for Indian Students | Fees Included

Top Boarding Schools in UK for Indian Students | Fees Included

Choosing the right school for a child's education is not an easy task. Especially in this hyper-competitive world where seizing the right opportunities is extremely vital. To ensure you have all the information you need before making this major decision, here are the most popular boarding schools in UK for international students! Fact: The average admission fees is £16,000 (16 lakhs in INR) per half (term) for the boarding schools in UK. There are three halves (terms) in a year! List of Boarding Schools in UK for Indian Students Eton College: Nestled along the banks of the River Thames, Eton College stands as a beacon of academic excellence. With a rich history dating back centuries, this illustrious institution provides unparalleled opportunities for holistic development. The school fee includes tuition, board, lodging, and the cost of most games activities and the majority of educational materials. Estimated fees: £16,666 per term. Harrow School: Set amidst 300 acres of picturesque grounds, Harrow School boasts a tradition of academic rigour and cultural diversity. From state-of-the-art facilities to a vibrant community of scholars, Harrow offers an enriching experience for students from around the globe. Estimated fees: £16,850 per term. Winchester College: Founded in 1382, Winchester College epitomizes academic excellence and intellectual curiosity. With a strong emphasis on individual growth and character development, Winchester nurtures future leaders and innovators. Estimated fees: £49,152 per year or £16,384 per term. The fee for day scholars is £36,369 per annum (£12,123 per term). Rugby School: Steeped in history and tradition, Rugby School offers a dynamic learning environment where students thrive academically and personally. From innovative teaching methods to a wide range of extracurricular activities, Rugby fosters a spirit of exploration and discovery. Estimated fees: £15,330 per term for boarders and for day scholars, it is £9,630 per term. Charterhouse School: Located in the heart of Surrey, Charterhouse School combines academic excellence with a supportive community ethos. With state-of-the-art facilities and a commitment to holistic education, Charterhouse prepares students for success in an ever-changing world. Estimated fees: £15,845 per term and £47,535 per year. Westminster School: Situated in the heart of London, Westminster School offers a unique blend of tradition and innovation. With a diverse and inclusive community, Westminster provides a stimulating environment where students can thrive academically and socially. Estimated fees: £16,506 per term or £49,518. The fee for day scholars is £34,299 per year. Join our WhatsApp Community Expensive Schools in India for Child Education! Read More Why do you need to invest in your child's education? In today's fast-paced and competitive world, investing in your child's education is more important than ever. With the rising cost of living and limited financial resources, it's essential to plan ahead and secure your child's future. EduFund understands the challenges parents face and is dedicated to helping families achieve financial security through smart investments like mutual funds. By partnering with EduFund, parents can create a solid foundation for their children's education and ensure they have access to the best opportunities the world has to offer. Together, we can unlock a brighter future for the next generation. Invest Now!
whatsapp