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

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

With the rupee free-falling against the US dollar and increasing the cost of living for millions of Indian students studying in the USA or Canada, there can be no better time to start investing in international stocks for your child’s education.   Since immemorial, Indians have saved for education through investments in fixed deposits, gold, life insurance, and real estate. In an inflation-ridden economy, these investments may not be enough, especially if you plan to send your child abroad for higher education.   The growing cost of goods and services coupled with the depreciating value of the rupee against the dollar not only makes saving tougher but also affects your child’s future purchasing power. Consider the table below – if even tuition and living expenses are kept constant over 17 years - the rupee will lose its dollar purchasing power. This can easily make foreign education more expensive for the average Indian parent. Currency Jan-04Jun-21 TuitionDollar50,00050,000LivingDollar25,000 25,000 TotalRupee 75,000 75,000 1=USD Rupee 45.4573.32Total Cost Rupee 34,08,750 54,99,000Increase- 16%  On top of this, tuition fees are rapidly rising. Some universities in the USA like Northwestern University and the University of Pennsylvania have increased their fees by 3.5% and 2.9% respectively. Arizona State University hiked its tuition fees by 5% in 2021! This growing cost shows that Indians investing only in rupee assets to save for their child’s foreign education are likely to lose money over time.   To make sure your savings don’t lose value over time, investing in international stocks is the answer. This is a great way to diversify your investments.    Where to invest in the international stocks and the US market?  There are two types of US equity investments for Indian parents.  The first is stock listed on the Nasdaq and NYSE. One of the most popular and best-performing sets of stocks is FAANG, which represents Facebook, Apple, Amazon, Netflix, and Google. To invest in these stocks, you can buy certain shares of these companies individually or via mutual funds.  The second type is called Exchange Traded Fund (ETF). ETFs are traded on exchanges like Nasdaq and are several stocks put together. These stocks track indices such as the S&P 500 or one sector such as the tech or automotive industry.   Factors to consider before investing in the US market for your child  Note: Before investing in international stocks and the US market. Consider the risk, time horizon, and historical performance of the stocks or ETFs. Saving for education is a sensitive and tough goal so consider all factors carefully. The time on your hands can help you determine your risk level.   If you are a parent with a two-year-old then you can take more risks. You can consider riskier investments like a small-cap ETF such as the Invesco S&P SmallCap Value with Momentum ETF whose cumulative performance of over 100% over the past five years in dollars.  Whereas, as a parent of a 20-year-old aiming to study master's in Canada within two years, your risk appetite is less. You can consider fewer volatility investments and consult with a financial advisor to create a comprehensive plan.  How to invest in US markets?  Indians can start investing by opening a USA brokerage account from their couch! There are many banks and financial partners that help you open an account to invest in international stocks. Once the know-your-customer (KYC) process and verification are completed, you can fund your account and start saving.   Under LRS, Indians can remit up to $250,000 a year for any foreign capital or current account transaction. This includes investments in international stock markets. Market investments are a form of income generation, you are required to pay taxes.   Navigating investments in the US market can be daunting but worth the hassle. Considering the increasing cost of education, geographical diversification is key. By accepting that foreign education and domestic education are only going to rise up, you can make room for considering powerful financial tools to fund your child’s dreams!  FAQs Where should I invest in child education?   Ans. Investing in a diversified education fund or a 529 college savings plan can be a good option for child's education. These investment vehicles offer potential growth over the long term and may provide tax advantages. It's important to research and consult a financial advisor to make an informed decision based on your specific circumstances.  Is it good to have international stocks in your portfolio?   Ans. Yes, having international stocks in your portfolio can add diversification and potentially reduce risk. It allows exposure to different economies and markets, enhancing overall investment opportunities.  Is it good for kids to invest in stocks?  Ans. Investing in stocks for kids can be educational and promote financial literacy. However, it carries risks, so parental guidance and moderation are essential. Consider using custodial accounts or educational resources to ensure a responsible approach to investing. 

MBBS is considered one of the most expensive degrees in the world – it costs up to Rs. 1 Crore to study MBBS from a private university in India today. In the 10 years, this cost will only increase further - thanks to the impact of inflation. If you are those lucky parents whose children have decided to become a doctor in the future, then here’s how you can start saving early to avoid any hassles.   How to avoid education loans? More and more parents in India find it hard to manage the rising higher education cost. Even if they want to study abroad or choose any professional course, they find it challenging to meet the overall cost of their studies. MBBS is the most expensive course and arranging funds to enroll the child in the best MBBS college in the country is a difficult task. This growing cost of education has affected parents’ ability to meet the financial goals for their child's education.   Taking up an education loan is the fastest way to let your child enroll in medical coaching and medical school. There is no doubt that you have to be financially strong for the child to let them become a doctor. But, for low-middle-class and middle-class families, getting an education loan can be tough. They bring their own set of worries and tensions to the family as well.   Most education loans are non-collateral, which can cause high interest rates and fees. The average interest rate of 9.55% to 13.25% per annum can be hard to pay off after 5 years of medical schooling.  The interest rate can be cheaper if you take a collateral-secured loan. However it requires you to provide an asset, FD, or property to the bank as collateral. The collateral acts as protection in the event of repayment.   To avoid the pain of education loans, there are financial instruments that parents should consider if their child aims to become a doctor:   Mutual funds An underrated financial instrument, Mutual funds can be a great investment option if you have a time period of 10 to 15 years. Families that invest in Mutual Funds can get good returns over the years. With a small monthly SIP of Rs. 1000 for your child today, you can reap the benefits in the future.    Public provident fund It is an excellent solution where the banks give you a reasonable interest rate on the payment. It will ensure that you can save money on the superb return and keep your child's future for the better. There is no looking back if you save a child's money through PPF. People find it the safest investment option, meaning you do not have to think much. PPF generally has a lock-in period and allows you to save up to Rs. 1,50,000 yearly as deposits.   https://www.youtube.com/watch?v=tdwqQH0xkFw Digital gold Another option that will give a good return in the future and ensure you get the benefits of the saving. It has good market value, and there is nothing to fear about digital gold. You can save money from your income and invest in buying digital gold. Later if you want to sell the gold, you will get a reasonable market price as per the current gold value.   Fixed Deposit If you already have good income savings, you can put that bulk money in a fixed deposit for 20 years. It is a fixed source of income that will double up with the interest rate when it gets coverup after maturity. FD is the oldest form of saving and can be a good investment if the base lumpsum amount is large enough to give a good return.  Know the future cost of education Finally, the only way to save is to know how much you need to save in the future.  A good financial plan requires a set of targets, which is why by using the College Cost Calculator, you can find out the future cost of studying medicine across the globe. Find out this future cost before you start planning your savings.   If your child aspires to become a doctor, then support their dreams mentally and financially. While there is no harm in taking an education loan, it is harmful to ignore the plethora of financial instruments that can easily help you build a good education corpus to help your child actualize their dream. FAQs What will happen if I don't pay an education loan?   If you don't pay an education loan, it can have serious consequences. These may include accumulating interest and late fees, damaging your credit score, facing legal action or debt collection efforts, and potentially having your wages garnished or assets seized. It's crucial to communicate with the lender to explore repayment options and avoid default.  What happens if you don't pay an education loan in India?   If you don't pay an education loan in India, it will lead to serious consequences. The lender may initiate legal action, which can result in a damaged credit score, difficulty obtaining future loans, and potential asset seizure. It's crucial to communicate with the lender and explore repayment options to avoid such situations.  Can I get 50 lakhs education loan without collateral?  Getting a 50 lakhs education loan without collateral may be challenging. Most banks and financial institutions require collateral or a co-signer for large loan amounts. However, some lenders may offer unsecured loans for smaller amounts. It's best to research and compare loan options from different institutions to find the most suitable one for your needs.  TALK TO AN EXPERT

ICICI Prudential Mutual Fund is the second-largest asset management company in India. With over Rs 5 Lakh crore, the AMC is among the most trusted names in the mutual fund space. ICICI offers products across asset classes. https://www.youtube.com/watch?v=tdwqQH0xkFw ICICI Prudential India Opportunities Fund Investment Objective The scheme's primary objective is to generate long-term capital appreciation by investing in opportunities presented by special situations such as corporate restructuring, Government policy and/or regulatory changes, companies going through temporary unique challenges, and other similar instances.  Investment Process   Concentrated portfolio: The scheme would take concentrated exposure to high-conviction stocks.  Market cap and sector Agnostic: The scheme has the flexibility to invest across market caps. Also, the scheme may take aggressive sectoral positions.  Bottom-up Approach: The investing style is a bottom-up stock picking style because the core of its investment strategy is identifying companies in special situations requiring rigorous 360-degree stock research.  Portfolio Composition  The fund had invested more than 66.49% of the funds in large-cap companies, 28.94% in mid-cap companies, and the remaining 4.57% in small-cap companies. Also, the fund is diversified across various sectors such as Pharma & Biotechnology, Automobiles, Banks, Telecom-Services, Finance, etc. The top five sectors hold approximately half of the portfolio. Note: Data as of 30th June. 2023. Source: ICICI Pru AMC, Value Research  Top 5 Holdings Name Sector Weightage % Oil and Natural Gas Corporation Ltd. Oil 9.03 Sun Pharmaceutical Industries Ltd. Pharma and Biotech 7.76 Bharti Airtel Ltd. Telecom Services 6.76 NTPC Ltd. Energy 6.40 Infosys Ltd. Information Technology 5.40 Note: Data as of 30th June 2023. Source: ICICI Pru AMC Performance Since Inception  If you had invested 10,000 at the fund's inception, it would now be valued at Rs 22,240. Note: Fund performance as of 30th June 2023 since launch; Inception Date:15th January 2019.  Source: icicipruamc.com  The fund has performed consistently and has generated an annualized return of 19.64% since inception. The fund has outperformed both benchmarks consistently.  Invest in Fund Fund Manager  Mr. Sankaran Naren and Mr. Roshan Chutkey ably manage the fund. Mr. Sankaran Naren has over 31 years of experience, and Mr. Roshan Chutkey has over 14 years of experience.  Who Should Invest?  The scheme is suitable for investors with an appetite for volatility and who would like to benefit from taking concentrated stock bets. Investors looking to benefit from investment opportunities presented by special situations such as corporate restructuring, Government policy and/or regulatory changes, companies going through temporary unique challenges, or other similar instances face time to time may consider investing in the scheme.  Why Invest in ICICI Prudential India Opportunities Fund?  Special situations are unique situations that companies may face from time to time.   These situations present an investment opportunity to a fund manager who can foresee and interpret the implications of that opportunity.  ICICI Prudential India Opportunities Fund has performed consistently following this investment strategy.    Ideal Time Horizon  One should look at investing for a minimum of five years or more.  Investment through Systematic Investment Plan (SIP) may help tackle broader equity market volatility.  Conclusion  The scheme provides access to well-researched companies currently undergoing special situations and provides a higher return potential. This allows investors to generate high returns over the long term by taking aggressive risks. Also, the fund has consistently outperformed its benchmark. Hence, investors seeking to invest for a long-term time horizon to generate high returns with higher risk through exposure to the banking and financial sector can consider this fund.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

B.Tech is a professional undergraduate technology program designed for individuals sharing a love for machines and software. It is a 4-year program designed to build competitive intelligence, logical thinking, and technical and interpersonal skills.   How much does B.Tech cost in India?   The average cost of a 4-year B.Tech degree program in India is around 3 lakhs in Government colleges, and the fees go up to 20-30 lakhs in private colleges in India.   The numbers catch the concern - How to Fund your Child’s B tech in India?   To know the answer, read ahead.  4 Tips to Fund Your Child’s B.Tech Program in India   Finance must not be a barricade to a meritorious student. Check the below ways to fund your child’s B.Tech program in India:  1. Invest in Aggressive Funds   If your child has 3-5 years to start their engineering degree, check Aggressive Hybrid Funds. If you invest up to 75%, you may receive good returns, which are less volatile and safeguard your money.  PRO TIP: If your child is yet to think about his Engineering future or has over 7 years to pursue the degree, tap into multi-cap funds. In these, you can invest across different sectors and company sizes. It diversifies your portfolio for better returns.  2. Start SIPs (Systematic Investment Plans)  SIPs make it easier to invest in and nurture the educational goals of your child. Invest a small sum every month. Some significant benefits include:  Only a minimal amount of money needs to be put forth every month.  It would not affect your budget and lifestyle.  The more years you have to finance your child’s B.Tech dreams, the less amount you need to invest in SIPs.    For example: If you put aside Rs.5000 every month in SIPs for 15 years, you can accumulate around 25.2 Lakhs in 15 years.   That’s huge. However, you must start it at the earliest.  3. Analyze different education loan   According To BankBazaar.com, “One in six students apply for a B-tech Degree in India.”   To finance education, guardians can check out education loan options. The tenure of these educational loans lies anywhere between 5-7 years. The loan covers –  exam fees,  library costs,  admission fees,  accommodation charges,  tuition charges, and  miscellaneous charges.   The repayment begins after the child’s education completion. However, you must repay the total amount within 5-7 years. You may find different interest rates from lender to lender.   If the loan is not for more than 4 lakhs, the interest rate would be less. Apart from that, some lenders do not ask for collateral as tangible security over the loan unless the amount exceeds 4 Lakhs.   Eligibility Criteria for an Education Loan:   The applicant must be an Indian resident.   The applicant's age cannot exceed 35.  The applicant must have an admission receipt from a recognized government or private B. tech University (accredited by UGC, Government or AICTE, or others)  The applicant must have a co-applicant on loan to qualify for a credit score and repayment guarantee.  You must check and apply carefully.  4. Scholarship programs   Many private and Government institutions provide scholarships to aspiring engineering students. The scholarship programs launched by the Government of India have criteria to qualify.   For example:  Pragati scholarship scheme  HMRC (Ministry of Human Resource and Development) designed this scheme, especially for female B.Tech candidates. Under this, if a girl’s household income is less than 8 lakhs, she can qualify for the program. Each candidate gets Rs.4000 annually. Apart from this, the scheme covers tuition fees of Rs. 30,000. In some mishappenings, the government takes care of the expenses and provides Rs. 20,000.  As per the latest update,   “Saint Gobain India, a renowned Glass Business company, announced Merit Scholarship for 40 girls’ students pursuing B.Tech at IITDM (Indian Institute of Information Technology, Design, and Manufacturing).”  Through this move, the company donated 2.24 crores and will support the B.Tech education of 40 girl students for 8 years.  There are a host of private and government scholarships to apply for. Some of them include:  NTPC Scholarship program (National Thermal Power Corporation  Tata Scholarship for engineering students  Siemens Scholarship programs  VIT Ignite Scholarship (Vellore Institute of Technology)  Conclusion These are some ways to fund your child’s B.Tech in India. Identify your finances and plan your child’s Engineering future without any hassle.  FAQs How can I secure my child's education?  Ans. Secure your child's education by saving early in dedicated education funds, investing wisely, researching scholarships and financial aid, fostering a love for learning, and encouraging open communication about educational goals. Prioritize their academic needs and explore diverse learning opportunities to ensure a bright future.  How do I plan my future child?   Ans. To plan for your future child, focus on your own physical and emotional well-being, consider your financial stability, create a supportive environment, discuss parenting values and responsibilities with your partner, research childcare options, and be open to adapting your plans as your family grows.   How do you secure your future financially?   Ans. Secure your future financially by creating a comprehensive budget, setting financial goals, saving consistently, investing wisely, diversifying your income streams, managing debt responsibly, and staying informed about personal finance. Additionally, consider seeking professional financial advice to perfect your financial planning and ensure a stable and prosperous future.  TALK TO AN EXPERT

As a parent, helping your child choose between domestic and international colleges can be extremely tough. Both have their own perks but differ largely in terms of cost. A common financial fallacy is that international colleges are always more expensive than domestic. Take studying medicine as an example, it is far more expensive to pursue medicine in India from a private university than to study at a medical university in Russia, Bangladesh, or Ukraine.     Let’s find out what you need to consider as a parent when helping your child decide on their dream university.   Studying Overseas vs. Studying in Your Country?  The main distinction between attending university overseas and studying in one's native country is global exposure. The opportunity to meet new people, learn life skills as well as budget. The potential for independence is tremendous, your child might be positioned in situations where they must work to meet their expenses. But it can be costly as well, if you are planning to send your child abroad for higher education to countries like the USA, Canada, or Singapore from India then diversifying your savings is extremely important.   Rupee depreciation as well as the annual increase in tuition fees can affect the overall cost of living for international students. While the latter can impact your child in a domestic college, the former can have little impact on their lifestyle.   Why is it worthwhile to pick between Foreign and Domestic Universities?  There are numerous countries around the globe, each with its own set of traditions, beliefs, and principles. Most of these nations are much established and developed. As a result, certain nations provide more advanced learning and education to outsiders than others. It might be challenging to pick between foreign and local institutions in today's society.   International colleges offer a wealth of opportunities in terms of academic programs, internships, and a better lifestyle. Studying abroad is often a stepping stone for students who wish to settle in a different country, gain diverse experience or excel in a specific career path. For instance, many Indian students prefer to move to the USA to pursue STEM courses because of the high level of exposure, and technological and research opportunities offered by US universities that can uplift their career trajectories, unlike their domestic counterparts.   Overseas education enrolments doubled over the previous five years   Over the previous five years, the number of overseas college students enrolled doubled.  Although most overseas students (60.6 %) were enrolled in academic institutions in 2019/2020, the number of enrolling in colleges (39.4 %) has been increasing. The number of overseas college students has more than doubled in the previous five years, going from 60,318 students in 2015/2016 to almost 153,360 students in 2019/2020. Over the same period, the number of overseas university students grew from 168,606 students to 235,422 students. In 2019/2020, universities accounted for 63.1 % of the total enrolments, while colleges accounted for 36.9 %. This included students across the globe.  In 2019, international college graduates led to an aggregate increase in graduates.  Focusing on graduates in the year 2019, approximately > less than 587,000 students cleared a certification from a governmental postsecondary school, which resulted in a 4.0 % increase over the previous year. While university programs managed to develop the majority of graduates, the rise (+22,446 students) was mostly driven by graduate students from academic programs related to colleges (+19,692 students), who accounted for 87.7 % of the overall increase. International students contributed the majority to this rise in fresh college graduates.   Close to 18,000 more international student graduates completed their certification at the college level, which accounted for 33.6% of graduates in 2018. However, in 2019, the international student graduates count increased to 22,000 and from 18,000. The percentage of foreign student graduates increased from 18.0% to 21.1 % from 2018 to 2019.  Statistics on student enrolments in Canada  Enrolment at Canadian public colleges and universities increased to about 2.2 million for the fifth straight academic year in the 2019/2020 school year, just before the commencement of the COVID-19 outbreak. The growth was primarily attributed to increased foreign student enrolment.  Enrolment of overseas students in higher education institutions increased by 13.7 percent (which accounted for +46,815 students) from 2018/2019 through 2019/2020, while enrollment of Canadian students decreased by 0.9 percent (which accounted for -16,005 students). The COVID-19 outbreak forced the formal suspension of higher education institutions across Canada before the completion of the academic year of 2019/2020.  Stats about the college enrolments in Canada and provinces before the covid pandemic outbreak are as follows:  Factors to consider when choosing between domestic and international college 1. Course over college  International enrolments have increased tremendously and Indians are flocking to countries like the USA, Canada, and the UK. It’s important to pick a course over the college in this battle of domestic and international colleges. Help your child analyze different universities based on the course they want to pursue as well as the job prospects of studying that course.   2. Cost-benefit analyze   Doing a cost-benefit analysis before deciding on a place of study or university is very important. This can help you determine whether sending your child to a specific country and spending lakhs on their education are worth it or not. While thousands of students go abroad every year, it also comes at the cost of taking loans, mortgaging family property, and even selling your personal jewelry. So, help your child analyze which is the best country for them to pursue their dreams.   3. College fund their education  If your child is in school, then start saving! Whether your child is going to study abroad or domestically, this education fund will help them with tuition fees as well as the cost of living. This kind of budgeting and financial planning gives your child flexibility in choosing between domestic and international colleges as well as the flexibility in choosing or switching courses. A small SIP today can help fund a part of your child’s education and ease your financial burden.   Let your child decide whether they want to study in a domestic vs international college by empowering them with financial stability with a college fund and freedom to choose their course. FAQs What is the main difference between studying abroad and studying in your native country? The significant difference between studying abroad and studying in your native country is the global exposure that studying abroad provides. This includes the opportunity to meet new people, learn life skills, and gain independence. However, studying abroad can also be more expensive and require careful financial planning. What are some factors to consider when choosing between domestic and international colleges? When choosing between domestic and international colleges, it is important to consider the course over the college and to help your child assess a variety of universities depending on the course they want to pursue as well as the job prospects of studying that course; it is also important to do a cost-benefit analysis to determine if sending your child to a specific country is worth it financially. Finally, it is helpful to start saving early to fund your child's education and provide them with the flexibility to choose between domestic and international colleges and courses. How has the number of international college students enrolled changed over the past five years? Over the past five years, the number of international college students enrolled has more than doubled, going from 60K students in 2015/2016 to almost 1.5 lakh students in 2019/2020. The number of international university students also grew from 168,606 students to 235,422 students over the same period. 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Investing in US index funds is a great way to save for your child’s foreign education. Index funds like the S&P 500, an index of the top 500 publicly traded US companies, have yielded great returns. From 2001 to 2020, the average US stock market return was 7.45 percent.  Suppose you are a young parent and you decided to invest $100 in the S&P 500 at the beginning of 2000, you would have about $421 in 2021. Your investment would have doubled over these years!  With thousands of Indians moving abroad and sending their children to study in dollar-driven countries like the USA, Canada, and Singapore, investing in the US market for good and stable returns can boost their child’s education fund. Another benefit of investing in the US market via USA index funds is the opportunity to save in dollars.   If you are planning to send your child abroad in a couple of years, you will be required to pay for their tuition fees, accommodation fees, and living expenses in dollars. Thus, it only makes sense that you gain stable returns from your investments in dollars to maintain your purchasing power in the country.  Rupee depreciation   The Indian rupee stands at a disadvantage against foreign currencies like the US dollar, the British pound, and the Euro. This makes foreign education more expensive for Indian parents making money in rupees. For instance, if your child wants to study MBA from Harvard University then the cost for the year will be $81,272 for a year, which means spending Rs 60 lakh in 2021 (1 USD = 74.96 INR). If your child had gone off to study at Harvard ten years back, it would have cost you Rs 50 lakh in 2015 (1 USD = 64.13 INR). This huge gap is a result of rupee depreciation as well as education inflation. To ensure you don’t have to spend an extra Rs. 10 lakhs on your child’s education, you can invest in US index funds and stocks.  Investing in the US market not only helps you save money for your child’s education, but it can also benefit you if the currency appreciates. This is because the additional return on your holding period return becomes an asset. For example, if you invest in the S&P 500 index, for example, a 5% appreciation in the S&P 500 and a 2% dollar appreciation against the rupee in the same year can double your returns!  To make the most of the US market, it's best to contact a financial advisor who can help you pick stocks and funds based on your personalized goals, risk level as well and time frame. Investing in International Stocks Read More Inflation and the Rupee’s Impact on the American Dream   The fall of the rupee and growing inflation directly impact your American dream. It not only affects parents whose children are enrolled at universities in the US but also those who are planning to send their children abroad. Visa costs, accommodation, tuition fees, exam fees as well as living costs are affected by these two events.   So that your child’s American dream stays strong – geographical diversification is highly important. It requires you to save and invest in US index funds and dollars so that you can get capital appreciation, dividends, and benefit from dollar appreciation and not rupee depreciation.  The average cost of college in the US has increased manifold. This cost will rise further due to the growing demand for international students to their universities as well as to adjust to the inflationary rates. As a parent, you have the freedom to choose your weapons against the rising cost and determine a financial plan to fund your child’s future education.   Saving today for your child’s tomorrow is a must and your #1 priority! If you are confused about how to start then reach out to experts and financial advisors, use the college cost calculator to determine the future cost of your child’s education, and based on the amount, explore funds that will help you get closer to that goal!  FAQs Which funds are good for child education?  Ans. For child education, consider investing in education-focused mutual funds, 529 college savings plans, or target-date funds designed to align with your child's expected college enrollment year.  How can I invest in the USA for kids?  Ans. To invest in the USA for kids, consider opening a custodial brokerage account and investing in US stocks, index funds, or ETFs on their behalf.  Can Indians invest in US index funds?  Ans. Yes, Indians can invest in US index funds. Many international brokerages and investment platforms allow Indians to invest in US-based funds, subject to regulatory compliance and any specific restrictions imposed by the investment platform. 

NAV or Net Asset Value refers to the price of the mutual fund at which an investor can buy or sell units of the mutual fund. The NAV of a mutual fund indicates its market value. Hence, one can view NAV and its current performance to assess the mutual fund's current performance to a certain extent. An investor can determine the fund value by identifying the percentage fluctuation in the mutual fund’s NAV.   A mutual fund house hires an accounting firm that calculates the net asset value of the mutual fund. According to the SEBI guidelines, mutual funds must display their NAV publicly by regularly updating them on the AMFI and AMC websites on business days.  How to calculate NAV for a mutual fund?  The formula to calculate the NAV of a mutual fund is:   Net Asset Value = [Total Asset Value— Expense Ratio] / Number of Outstanding units  In the above formula, the TAV refers to the mutual fund investment's market value and the accrued income, receivables less accrued expense, outstanding creditor debts, liabilities, etc.  The expense ratio refers to the fee you pay to the AMC for managing your investments. The expense ratio directly impacts the investors' returns. Direct plans offer a lower expense ratio while regular plans have a higher ratio. In direct plans, the investors manage their own investments by eliminating the middleman!  https://www.youtube.com/watch?v=6_0eNgRHRho Generally, there are two categories of mutual fund assets:  Scheme with fundamental liquid funds like cash  Securities which include bonds and stocks  When you subtract, you will get the net asset value when you subtract the overall expense ratio from its asset value. You can standardize the asset value for each unit by dividing it by the total outstanding units. This will give you the NAV. So, this is important to learn before calculating the mutual NAV using the given formula.  There is a difference between the total and net asset value of any mutual fund. The total asset value includes stocks, bonds, and cash. All of this is considered at the market value or the mutual fund's closing price. The total interest obtained from the fund, its dividends, and liquid assets includes the total asset value. Moreover, the outstanding debt to creditors, expenditures, or other liabilities is essential to the total asset value.  A mutual fund involves a variety of costs. The overall annual expenditures incurred by the mutual fund scheme are included in the expense ratio, which is deducted from the total asset value to determine NAV. Its management fees, operating costs, transfer agent fees, custodian and audit fees, as well as distribution and marketing expenditures, are all included in the expense ratio.  When is NAV calculated?  Since the price of the security, such as stock or bonds, fluctuates often, the NAV of a mutual fund cannot be determined during stock market hours. NAV can be determined after the trading day has ended and the closing bell has rung. It is determined using the fund's shares' daily closing prices. What do high and low NAV indicate?  The NAV of a fund does not indicate how costly or inexpensive it is. The NAV only informs you of a mutual fund scheme's current worth per unit. A high NAV could merely represent a mutual fund scheme's successful performance. It also suggests that the strategy has been in existence for a while.  Few distributors highlight the low NAV when offering new fund offers. They make the investors believe that a low NAV will give them a high return. But that’s where they mistake the NAV of the mutual fund with the company’s stock price. The low stock price indicates that it is available for a bargain price. However the same rule cannot be applied to the NAV of the mutual fund. So, basically, you cannot judge how cheap or expensive a fund is by its NAV value.   NAV impacts only the quantity of units you receive. You receive fewer units from a mutual fund scheme with a high NAV, but the value of your investment stays the same. The mutual fund's performance and your returns hold more value. Difference between NAV and stock price  Many investors tend to confuse the mutual fund's NAV with the stock market price. So, while you are investing in a mutual fund, you may think that a low net asset value would mean a low price; hence, it can be an excellent investment. But that's precisely where you can get wrong.  The market price of a company's stock and the NAV of a mutual fund is very different. Investors can purchase a firm's shares once it is listed on the stock market. The stock exchange lists the price of the company's shares. This indicates the price of the stock market price. The price of the company's shares is influenced by variables, including the demand-supply situation and the company's potential. As a result, the stock market price and book value are different. The market price of a unit does not exist for mutual funds. Units of mutual funds are purchased at book value. Thus, the book value of a unit equals the mutual fund's NAV. Misunderstanding about NAV  Needless to mention that quite a few investors fail to understand the working of NAV. Thus, there could be a high chance of making the wrong investment choices. Being an investor in a mutual fund, you need to properly understand how the NAV is connected to the fund's performance. Some of the common myths associated with NAV:  1. Schemes with low NAVs fall cheaper  Let's say you put the same amount of money into two mutual fund plans with the same portfolios. You will receive more mutual fund units from the plan with the lower NAV. However, this does not imply that it is less expensive.  So, when you want to get more units, it may not always get you the highest returns. Therefore, the net asset value is not the best measure to identify whether or not the funds are expensive or cheap.   2. Funds with higher NAVs are better investments  The example above demonstrates that whether the NAV is high or low doesn't matter. The returns of two mutual funds with the same portfolio will be the same.  The NAV on any particular day won't provide any information on a mutual fund's potential for growth. Instead, it would help if you researched the fund's NAV from recent times. You can predict how a fund will perform in the future by comparing these previous data points.  3. Book profits when the NAV rises  The NAV of a mutual fund should not be confused with the share price. When shares' prices increase, a stock trader sells them to make a profit. Mutual funds don't operate that way, though.  When the NAV rises, you can redeem fund units to leave an investment with promising long-term prospects. Additionally, you can keep hanging onto fund units whose NAVs are dropping or staying the same. Before redeeming any units, consider the fund's performance rather than just the NAV. It could be wise to keep investing in a fund if it performs well.  A mutual fund's book value is its NAV. When making a mutual fund investment, you should focus on the fund's performance rather than just its NAV. This may be accomplished by examining the fund's historical results.  FAQs How is NAV calculated with example?  Net Asset Value (NAV) of a mutual fund is calculated by dividing the total assets minus liabilities by the total outstanding units. For example, if a mutual fund's total assets are $10 million and it has 1 million outstanding units, the NAV would be $10 per unit ($10 million / 1 million units).  How is NAV per share calculated?   To calculate the Net Asset Value (NAV) per share of a mutual fund, divide the total net assets (assets minus liabilities) by the total number of outstanding shares or units of the mutual fund. The formula is: NAV per Share = (Total Net Assets) / (Total Outstanding Shares or Units)  What is the formula for calculating NAV?   The formula for calculating Net Asset Value (NAV) of a mutual fund is: NAV = (Total Assets - Total Liabilities) / Total Outstanding Units.  What is a good NAV for a mutual fund?  Suppose you are ready to invest in mutual funds and see that one has a NAV of 10 and another at 20. While you may want to opt for the former, it is good practice to consider factors like previous performance, AUM size, alpha, and beta.  How often is a NAV calculated?  After each trading day, an investment fund's NAV is determined using the closing market values of the securities in its portfolio. NAV for companies might be seen as being close to book value. Shares of a company or fund may trade in the market at prices that differ from its NAV.  Is low NAV better than high NAV?  NAV will only affect the number of units you will receive. High NAV may give you fewer units but the investment value remains unchanged. Therefore, a high or low NAV reveals nothing about your investment's future.  TALK TO AN EXPERT

Incorporated on December 10, 1999, HDFC Asset Management Company Ltd. is among India's most popular fund houses. HDFC Mutual Fund launched its first scheme in July 2000, and ever since it has been ambitious about offering a stable performance of funds across all the variants of schemes it offers. The HDFC Mutual Fund is managed by HDFC Asset Management Company (HDFC AMC) Limited.  Let us talk about the consumer product – HDFC Mid-Cap Opportunities Fund  https://www.youtube.com/watch?v=h0xun9aaj9s HDFC Mid-Cap Opportunities Fund  Investment Objective The primary objective is to provide long-term capital appreciation/income by investing predominantly in mid-cap companies.   Investment Process  To follow a stock-specific approach  Construct the portfolio on a bottom-up basis  Focus on good quality companies at acceptable valuations  Long-term orientation (resulting in low portfolio turnover)   Stick to the circle of competence  Portfolio Composition  The fund had invested 92.54% of its assets in equity & equity-related stocks, and significant sectoral exposure is to Finance, which accounts for roughly 11.89% of the portfolio. Note: Data as of June 30, 2023 Source: HDFC MF https://www.youtube.com/watch?v=UHYimOpW9Pw Top 5 Holdings  Name Weightage % Indian Hotels Company Ltd. 4.39 Cholamandalam Investment & Finance Co. Ltd. 3.66 Max Healthcare Institute Ltd. 3.65 Tata Communications Ltd. 3.58 Apollo Tyres Ltd.  3.30 Note: Data as of June 30, 2023. Source: HDFC MF  Performance    This Fund S&P BSE 150 MidCap TRI Equity: Mid Cap 1 Year 34.64% 24.82% 23.13% 3 Years 36.45% 33.34% 31.71% 5 Years 18.04% 16.83% 17.05% 10 Years 22.38% 20.17% 21.05% Note: Data as of June 30, 2023. Source: Value Research  Invest In Fund Fund Manager  Mr. Chirag Setalvad (Since June 28, 2014) has over 25 years of experience, of which 18 years in Fund Management and Equity Research and three years in Investment Banking. Before HDFC, he worked at New Vernon Advisory Services and started his career at ING Barings in India.   Who Should Invest in HDFC Mid-Cap Opportunities Fund?  Investors looking to generate higher returns by taking exposure to mid-cap equities can consider this fund. However, investors need to understand the aggressive risk exposure of this fund.  Why Invest in this Fund?  Opportunity to invest in a portfolio of predominantly mid-sized companies.  Aims to provide diversification to an investor’s overall equity mutual fund portfolio.  Experienced fund management and research teams with a track record of managing equity assets across market cycles.  Emphasis on risk management – portfolio diversification across stocks and sectors; focus on good quality businesses.  One of the largest funds in the mid-cap category with a track record of more than 15 years.  Time Horizon  One should look at investing for at least three years or even more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The HDFC Mid-Cap Opportunities Fund has a proven track record of over 15 years, with an Asset Under Management of ₹42,731.64 Cr as on  June 30, 2023. The fund has consistently outperformed both the benchmarks and the category average also. Therefore, investors looking to generate wealth over the long term can consider this fund with an understanding of high risk.   DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

Business Insider says, “The average expenditure on a child in India is ₹8,331 per annum. The average fee for enrolling in a professional course for higher studies can go above the ₹72,000 mark.”  According to Yourmoney.com, “Around 65% of parents set money aside for their children’s education once they turn 3”. But despite efforts to ensure long-term investments in Fixed Deposits (FD), Mutual Funds, Gold, and insurance plans, they seek ways to bridge the small amount required.  With parents striving to ensure quality education in India for their kids, it is essential to know about education loans.  Here’s your guide to understanding how education loans work What does an education loan imply?   An education loan is an offering that banks provide to guardians to fund a child’s secondary and higher education requirements. Different banks and government institutes offer education loans at other criteria and interest rates. An education loan is of 2 types - Domestic and Overseas.  General eligibility criteria for education loans in India  Education loan eligibility criteria  You must be a citizen of India  The age limit must be 18-35   The child must have a solid academic record  The child must ensure a confirmed admission receipt from the respective educational institution in India  They must be undergoing a post-graduation/ graduation/ diploma  The institution must share the UGC or AICTE affiliation  Students pursuing a full-time graduation course must have a co-signer on loan.  NOTE: These criteria may or may not vary depending on the bank offering these loans. You are advised to check the specific eligibility criteria for the education loan you are interested in. What does an education loan cover?   It covers the following costs:  Tuition fee  Hostel fees  Stationary  Exam fees  Library fee  Books fee  Educational trips Documents required to get a quick education loan approval in India   Seeking approval from a lender is easy if you meet the document requirements without fault.   Documents required:  Accurately-filled loan application form  A recent photograph of the student  Age Proof (Aadhar Card, Identity proof, voter ID card)  Address Proof  Admission proof (Admission letter)  Marksheet (10th/12th/graduation/GRE/TOEFL/IELTS, whichever is applicable)  Income proof of the co-signer on the loan. He can be a guardian/parent.  Bank statements (Last six months)  The previous two years’ income tax returns along with income computation  Audited balances sheet for previous two years  Proof of yearly revenue/salary receipts  Documents of assets for collateral requirements on the loan Read more: Pay off an education loan How does an education loan work?   An application process may vary from bank to bank. However, here is the general way an education loan works:  source: pexels Step 1 - Explore the interest rates from different banks  Check the factors below before applying:  Total costs over EMI (Equated Monthly Instalments)  Repayment period  Money margin: It is an upfront cost to pay on a loan. If the loan exceeds 4Lakh, the lender exempts the margin.  Check the bank’s partnership with NBFC (Non-Banking Financial Companies)  Check the tax deductions you may qualify for under Section 80 E of the income act. It is a tax deduction on education loans for higher education. A taxpayer applying for a child’s education abroad can qualify.  Guarantor or collateral over the loan  Step 2- Fill out the loan application  After choosing the bank to partner with and checking the terms, fill out the loan application. Check whether or not the banks provide loans for a particular course. Always check the loans for the periods before applying. Banks offer loans for both parts and full-time education.  Fill out and submit the application form with the documents mentioned below:  Passport size photographs (2)  Graduation, secondary or higher secondary Marksheets  KYC documents (Voter ID, PAN card) ID address  Age proof  Signature proof  Guardians/Parent’s income proof  Documentation of immovable property  You can file for a loan either online or offline at your convenience  Step 3 - Confirm the loan sanction   After meeting the requirements and attesting to the required documents, you will receive a mail detailing the loan terms and elements. Read carefully before signing. If applying for a secured education loan, the lender may ask you to provide collateral details.  Read more: How to avoid education loans? How does an Education loan repayment work?   After the loan sanction, the bank provides a memorandum period. It is a defined payment gap in the loan tenure until which a borrower is not liable to pay any repayments towards the loan. Banks generally provide a 6-12 months memorandum period. However, education loans have competitive interest rates. Talk with your lender and begin your repayments early.  If the lender agrees, you can improve your credit score by paying off the loan early. Enquire for pre-payment loan fee (if any). Do so only if not availing of tax deductions (Section 80E) on the loan. Else, qualifying for tax deductions, in this case, stands next to null. It is known as an auto-deduction loan.  Repayments vary from bank to bank according to the loan amount availed. If unmanageable, you can set up an auto-debit system to make monthly payments towards the loan.  Conclusion  Finding a low-interest and non-collateral educational loan is tasking. Edufund eases the process for you by filtering out the best loan options from multiple banks and NBFC partners. Contact us for more details. FAQs How does an educational loan work?   An educational loan is a financial product that helps students and their parents fund education expenses. The borrower borrows money from a bank or financial institution, and after completing the education, they start repaying the loan along with interest, typically in monthly installments over a specified period. The interest rate and repayment terms vary depending on the loan provider and the borrower's creditworthiness.  Is education loan interest-free?  Education loans are generally not interest-free. Interest is charged on the loan amount, and borrowers are required to repay the principal amount along with the accrued interest over the loan tenure.  Is taking an education loan a good idea?   Taking an education loan can be a good idea if it enables you to pursue higher education and career opportunities that would otherwise be financially challenging. However, consider the repayment terms, interest rates, and your future earning potential before making a decision.  TALK TO AN EXPERT

Teaching your child, the basics of money management and finance is not a usual activity despite its importance. While money as a concept is introduced to us early on in our lives; how to save and manage this money is introduced much later (or never). Let’s rectify this by exploring some saving tips for adults or young parents to help them save and manage better.  1. Control your expenses  An impulse shopping spree or ordering food from outside every other day or partying with your friends; all these events can significantly impact your monthly budget. This is where controlling and budgeting helps; by assigning yourself a budget for spending, saving, and investing you can discipline yourself and curtail your spending drastically.   2. Budget for the future  Create a plan, and make a budget that focuses on your monthly needs like rent, groceries, transport costs, utilities, loans, and EMIs. Your spending should ideally be less than your monthly budget so that you can set aside some money. Then move on to your luxuries like shopping or eating out and finally, tally all the costs and figure out how much you have saved up and if you can reduce your spending in any of the above categories. Once you have completed this task, you will know the amount you are comfortable sparing for investing and saving!  Tax Saving Options for Salaried Persons Read More 3. Save for an emergency  The sudden pandemic and the following health crisis show how unpredictable life can be. It's important to think about the future and plan for it financially - saving money for unforeseen financial crises is the first step. Create an emergency fund so that this fund can help you stay afloat for a while. Ideally, 10%-20% of your earnings is for an emergency fund and this acts as a cushion against job loss, medical crisis, or a sudden family emergency. This fund should be ready- available and highly liquid.   4. Save for long-term goals   Whether it's your child’s education or your executive MBA plan, saving for long-term goals is the best saving tip you will ever receive. From saving up for your first house or car, it’s important to find out the future cost, create a timeline for your goals and find out how much you need to invest monthly or yearly to reach that target. You can create multiple long-term goals and allocate money for each via SIPs.    Read Now: Smart Investment Plans for Middle-Class Families! 5. Consider investment seriously   Investments are a great method to grow your savings; the earlier you start, the more returns you have. Considering this route is extremely important, many young adults or new parents shy away from this tool because of a lack of awareness and knowledge. If you are unaware of the available investment options then educate yourself or get a financial advisor to help you. You can start investing monthly Rs. 100 in Mutual Funds or explore relatively safer options like Digital Gold or lock for money in tools like PPF.   The opportunity to invest and the wealth of knowledge around this subject is endless. You take up online courses or download apps that can help you invest and save for different goals based on your risk appetite and yearly income. By investing systemically and for a long period of time, not only do you get the benefit of compounding interest but also the opportunity to reach your financial goals with ease. 6. Learn to tackle debt   Debt is of two kinds – one is born from necessity and the other is for luxury. Taking on an education loan to finance your degree belongs in the former category while taking a personal loan to travel to Europe belongs in the second category. By understanding this small distinction, you can easily tackle debt as well as budget your finances. With credit cards and EMI options, indulging yourself with material happiness like buying a phone or a laptop may be enticing but can create a serious financial burden in the future.   It’s important to know the difference between need and luxury before taking on a loan or signing up for an EMI.    By taking control of your finances today as young adults you can save your future and save for your future! Inculcate the habit of budgeting, saving, and investing so that you can finance not only your MBA degree but also your child’s!  FAQs What is the 30-day rule? The 30-day rule is a great way to stop impulse shopping. People who love to shop and buy stuff spontaneously can put an end to this habit by thinking about it for 30 days. So if you want to buy a bag, think about the purchase for the next 30 days and revisit the idea. If you still want it then you really need it! What is the 50-20-30 rule? The 50-30-20 rule to divide your income. It means 50% of your money toward needs, 30% toward wants, and 20% toward savings. Every month if you invest 20% of your income then you stand a chance to complete financial goals in the future faster and more efficiently. Is there a way to avoid debt as an adult? Debt is of two kinds – one is born from necessity and the other is for luxury. Taking on an education loan to finance your degree belongs in the former category while taking a personal loan to travel to Europe belongs in the second category. Make you avoid loans for luxury and only take on loans that further your income. For instance, an education loan is a good debt to take on. TALK TO AN EXPERT

UTI is one of the pioneers of the Indian Mutual Fund Industry. With an AUM of more than Rs 2.4 Lakh crore, the AMC is among the most trusted names in the mutual fund space. The UTI Mutual Fund offers products across asset classes. https://www.youtube.com/watch?v=tdwqQH0xkFw UTI Nifty50 Equal Weight Index Fund  Investment Objective The investment objective of the scheme is to provide returns that, before expenses, correspond to the total return of the securities as represented by the underlying index, which is Nifty50 Equal Weight TRI, subject to tracking error.  Investment Process   UTI Nifty50 Equal Weight Index Fund follows a passive style of investing; that is, it invests in all the companies forming part of the Nifty50 Equal Weight Index (the underlying index) in the same proportion of the underlying index to earn a return as much as the underlying index, before expenses.     Portfolio Composition  The scheme had invested 98.52% of its assets in equities, and the remaining were cash and cash equivalents as of June 30, 2023. The scheme had significant exposure to financial services, followed by Automobile and Auto Components and Information Technology.  Note: Data as of June 30, 2023. Source: UTIMF, Value Research  https://www.youtube.com/watch?v=mVTKhy6XJME Top 5 Holdings Name Sector Weightage % Sun Pharmaceuticals Industries Ltd. Healthcare 2.03% Infosys Ltd. Information Technology 2.02%  Bajaj Auto Ltd. Auto and Auto Components 2.02% Tata Motors Ltd. Auto and Auto Components 2.02% JSW Steel Ltd. Metals and Mining 2.02% Note: Data as of June 30, 2023. Source: UTIMF Performance Since Inception  If you had invested 10,000 at the fund's inception, it would now be valued at Rs. 10,242, whereas the benchmark (Nifty50 Equal Weight TRI) would have fetched Rs. 10,501. Since the fund was launched just a month ago, monitoring how the fund tracks the underlying index in the long term will be essential.  Note: Performance of the fund as on June 30, 2023, since launch; Inception Date – June 07, 2023. Source: utimf.com Invest in Fund Fund Manager Sharwan Goyal is Fund Manager and Head - Passive, Arbitrage, and Quant strategies at UTI AMC. He is a CFA Charter holder from CFA Institute, USA, and holds a post-graduate degree in Management (MMS) from Welingkar Institute of Management, Mumbai. He has over 16 years of experience in Risk Management, Equity Research, Portfolio Analysis, and Fund Management at UTI AMC.  Who Should Invest?  This product is suitable for investors who are seeking:  Capital Growth in tune with Index returns.  Passive investment in equity instruments comprised in Nifty50 Equal Weight TRI.  Why Invest?  The index offers exposure to the Top 50 large companies on the NSE with equal weight (~ 2% to each stock) with quarterly rebalancing.  The index aims to benefit from the growth opportunities across stocks/ sectors rather than just relying on the performance of a few heavy-weight stocks/sectors.  The index represents smart and intelligent investing through "Auto Quarterly Rebalancing" and thus enables "Auto Profit Booking."  Ideal Time Horizon  Ideal for investment with a time horizon of, preferably, five years or above   Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  Investing by replicating Nifty50 Equal Weight TRI is a better approach to investing in large-cap companies. Historical data shows that the Nifty50 Equal Weight TRI has generated better returns than the Nifty 50 with lesser volatility. Therefore, this scheme suits investors looking for a simple yet smart way of investing in the Top 50 companies. However, monitoring how efficiently the fund tracks the underlying index over the long term will be crucial. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.