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In the previous article, we discussed AUM in mutual funds. In this article, we will discuss NFO in mutual funds. When it comes to mutual funds, there are a lot of acronyms and jargon that can be confusing for new investors. One such term you may have heard of is NFO or a New Fund Offer.   NFO is a term used in the mutual fund industry to describe the initial public offering of a new mutual fund. In other words, an NFO is when a mutual fund company first offers shares of a new mutual fund to the public.  The NFO period is typically a limited-time offer, during which investors can purchase shares of the new mutual fund at a discount on the fund's actual value. After the NFO period expires, the claims of the new mutual fund will trade on the open market at their then-current market value. Understanding NFO (New Fund Offering)  NFO in a mutual fund can be very beneficial for new investors. So, how do you know whether an NFO is worth your time?   You'll want to consider when an NFO is happening in your market.   Let's say you're in the market for a new mutual fund. If you see that an NFO is happening, you'll want to pay attention to the dates when that NFO begins, how long it lasts, and which funds that one offers.  If you're interested in purchasing a new mutual fund, you'll need to watch the dates when that new fund begins its NFO. You'll also want to pay attention to the NFO terms, particularly the discounts you'd receive for purchasing the shares of a new fund during the period offered.  Finally, you'll want to pay attention to the new fund's performance history. If you're already familiar with the historical performance of a particular fund, you may want to purchase shares of that fund instead. Types of NFO in Mutual Funds 1. Open-ended mutual funds  The vast majority of funds available through NFO are open-ended mutual funds. There are no constraints on the investment time or the number of units in an open-ended mutual fund scheme.  Once the mutual fund is active, fund units can be purchased or sold based on the current NAV.   2. Closed-ended mutual funds  Closed-ended mutual funds do not enable investment or withdrawal from the fund after the NFO completes, usually 3 to 4 years. These funds' units trade on the open market. However, their liquidity is less when compared to open-ended funds. source: pixabay Benefits of NFO in Mutual Funds A new fund offer (NFO) is an offer of units in a mutual fund scheme made by the fund house to the public. It is a way through which a mutual fund scheme launches.   When a mutual fund house launches a new scheme, it first offers the units of the scheme to its existing unit holders.   If there are any unsold units after this, the mutual fund house can offer these to the public. A new fund offer is also a public issue of units or an initial public offer (IPO).  The benefits of investing in a new fund offer are many. Some of these benefits are:  The opportunity to invest in a new scheme that may not be available through regular channels such as banks and brokerages.  The chance to get higher returns than what is available in the secondary market. The chance to invest in a scheme is still in the initial stage of development.  The chance to invest in a scheme that may not have been listed on a recognized stock exchange.  The chance to invest in a scheme with a good track record of performance in the recent past.  The chance to invest in a scheme backed by a knowledgeable and experienced management team.  The chance to invest in a scheme may be an excellent long-term investment.  The chance to invest in a scheme backed by experienced investors.  The chance to invest in a scheme with a good track record of performing well.  The chance to invest in a reliable scheme backed by a reliable source.  How do you invest in an NFO?  An NFO or a New Fund Offer is an investment option made available by mutual fund companies to their investors. It is a way through which the mutual fund company can raise money from the public by issuing units or securities in a new fund.  Such a fund is called a new fund, and it can be of any type. It may be a balanced fund, a stock fund, or a debt fund. Mutual fund companies offer NFOs to investors in two ways. One is using a prospectus, and the other way is using a letter.  The difference between an NFO and an IPO (Initial Public Offering) is that in an NFO, the mutual fund company does not offer all the units or securities of the new fund to the public. It provides only a part of the total.  The rest is there with the mutual fund company for its use. In the case of an IPO, all the units are offered to the public. Therefore, it is called the total offer. Difference NFO vs IPO In the case of an IPO, the units or securities are offered in the form of a certificate. This certificate needs to be issued to the investor as a stock certificate. Then, the mutual fund company gives a prospectus and offers the certificate holders a chance to buy additional units or securities from the mutual fund company.  Things to keep in mind before investing in an NFO Here are 3 things to keep in mind before investing in an NFO: The reputation of an AMC: The track record of the AMC influences the assets under management and the performance of a new NFO.  Minimum Investment - There is always a stipulated number of units that must be bought in the NFO.  Nature of instrument - An NFO documentation provides information about the risk associated with the fund, suitability, expected ROI, etc. FAQs What is NFO in mutual funds? NFO is a term used in the mutual fund industry to describe the initial public offering of a new mutual fund. In other words, an NFO is when a mutual fund company first offers shares of a new mutual fund to the public.  Is it good to invest in NFO mutual funds? NFO mutual funds can be risky investments. Unlike other mutual funds, they do not have a performance history that can be checked to determine their success or past performance. Which is better NFO or IPO? NFO and IPO are two different investments. In an IPO, the units or securities are offered in the form of a certificate. This certificate needs to be issued to the investor as a stock certificate. Then, the mutual fund company gives a prospectus and offers the certificate holders a chance to buy additional units or securities from the mutual fund company. Is NFO taxable? Yes, NFOs are taxed like other mutual funds. What are the benefits of investing in NFOs?  Here are some benefits of investing in NFOs: The opportunity to invest in a new scheme that may not be available through regular channels such as banks and brokerages. A chance to get higher returns than what is available in the secondary market.A scheme is still in the initial stage of development. A new scheme that may not have been listed on a recognized stock exchange. Invest in a scheme backed by a knowledgeable and experienced management team.  Is NFO a good investment?  Ans. An investor should not invest in a fund only because its net asset value (NAV) is low during NFO. The price at which the cash raised during an NFO will be invested is more crucial. Let's say there are two schemes: Scheme A and Scheme B. Units in Scheme A are brand new and come with a face value of Rs.   Is it better to invest in an NFO or mutual fund?  Ans. Existing mutual funds have a competitive advantage in terms of information and performance, but NFO opens a new market.  What is the benefit of NFO?  Ans. A mutual fund house can raise money through an NFO to buy securities or debt instruments. Consumers can commonly purchase units from AMCs for INR 10 per unit NAV for a subscription period of ten (10) to fifteen (15) days.  Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

An emergency fund is a financial safety net that serves as a crucial component of personal financial planning. It refers to a dedicated pool of money set aside to cover unforeseen expenses or emergencies, providing individuals with a sense of security and stability in times of financial crisis. Understanding the Emergency Fund  An emergency fund is a designated savings account that is set aside specifically to cover unforeseen expenses. It serves as a financial safety net, providing you with a cushion to handle emergencies without derailing your long-term financial goals. The primary purpose of an emergency fund is to help you navigate through unexpected circumstances without resorting to high-interest debt or depleting your regular savings.  https://www.youtube.com/watch?v=NKh7YxTo9yc The Importance of an Emergency Fund  a) Financial Security  Having an emergency fund offers a sense of financial security. It provides peace of mind, knowing that you have funds readily available to tackle unforeseen expenses. With this safety net in place, you won't have to worry about how you will manage in times of crisis.  b) Breaking the Debt Cycle An emergency fund acts as a vital tool in breaking the cycle of debt. When faced with unexpected expenses, individuals often turn to credit cards or loans, which can result in mounting debt and high-interest payments. By having an emergency fund, you can avoid accumulating unnecessary debt and stay in control of your finances.  Reasons to Invest in Mutual Funds Read More c) Mitigating Life's Uncertainties Life is full of uncertainties, and having an emergency fund can help you weather unexpected storms. Whether it's a sudden job loss, a major home repair, or a medical emergency, having readily available funds can give you the flexibility to handle these situations without jeopardizing your financial stability.  d) Building an Emergency Fund  a) Set a Realistic Goal Start by setting a realistic goal for your emergency fund. Aim to save three to six months' worth of living expenses. Calculate your essential expenses, such as rent/mortgage, utilities, groceries, and insurance premiums. This target amount will provide you with a safety net during challenging times.  b) Create a Budget To keep track of the money you make and spend, create a budget. Identify areas where you can cut back on non-essential spending to allocate more towards your emergency fund. Small adjustments, like reducing dining out or entertainment expenses, can add up over time and help you reach your savings goal faster.  c) Automate Savings Make saving for emergencies a priority by automating regular contributions to your emergency fund. Set up an automatic transfer from your paycheck or checking account to a dedicated savings account. By making saving a habit, you'll ensure consistent progress toward your goal.  d) Separate from Regular Savings It's crucial to keep your emergency fund separate from your regular savings or checking accounts. This separation will prevent you from dipping into your emergency funds for non-urgent expenses. Consider opening a separate account specifically for your emergency fund to keep it easily accessible yet distinct.  Financial Aid Alternatives Read More e) Maintaining and Utilizing the Emergency Fund  a) Replenish and Reassess  Once you have established your emergency fund, it's essential to continue replenishing it regularly. If you need to utilize the funds for an emergency, make it a priority to build it back up as soon as possible. Reassess your savings goal periodically to ensure it aligns with any changes in your financial situation.  b) Define "Emergency" Clearly define what constitutes an emergency to avoid misusing your funds. An emergency should be an unexpected expense that threatens your financial stability. Distinguish between genuine emergencies and non-essential expenses that can be planned and budgeted for separately.  f) Maximizing the Benefits of an Emergency Fund  a) Evaluate Insurance Coverage:  While an emergency fund is essential, it's equally important to evaluate your insurance coverage. Adequate health, auto, and home insurance can provide an added layer of protection during emergencies, minimizing out-of-pocket expenses. Review your policies regularly to ensure they align with your needs and circumstances.  b) Continual Learning and Growth:  Building an emergency fund is not a one-time task; it requires ongoing commitment and financial discipline. Take advantage of educational resources, books, and personal finance courses to enhance your financial literacy. Continually learning about budgeting, investing, and risk management will empower you to make informed decisions and grow your emergency fund.  c) Consider Alternative Income Sources In today's gig economy, exploring alternative income sources can provide an extra layer of financial security. Freelancing, part-time work, or passive income streams can supplement your emergency fund and offer additional financial flexibility in times of crisis. Diversifying your income sources can be an effective strategy to protect your financial well-being.  d) Seek Professional Advice If you are unsure about financial planning or need assistance in building and managing your emergency fund, consider consulting with a financial advisor. A professional can help assess your unique circumstances, provide personalized guidance, and develop a comprehensive financial plan that includes an emergency fund tailored to your needs.  Conclusion an emergency fund is a crucial tool for financial security. Build one today and be prepared for life's unexpected challenges. Your future self will thank you.  Consult an Expert Advisor

As parents, we have a profound responsibility to ensure a bright and secure future for our children. While providing love, care, and education are crucial aspects, financial planning plays a pivotal role in setting the stage for their success. Investing wisely is key to securing their future aspirations and safeguarding against unforeseen circumstances. Let's explore five essential investment plans that every parent should consider, ranging from mutual funds and US ETFs to US stocks and insurance. So, we will dive in and discover the strategies that can pave the way for your child's financial well-being. Education Fund: The Power of Mutual Funds One of the most crucial investments you can make as a parent is in your children's education. Start by setting up an education fund that specifically caters to their academic pursuits. Consider tax-efficient options like a 529 plan, which allows you to invest in a variety of mutual funds, ensuring growth potential while enjoying tax benefits. Platforms like EduFund (www.edufund.in) offer valuable guidance and tools to help you plan and manage your child's education fund effectively. investment plans US ETFs: Diversification Made Easy 1. Exchange Traded Funds Exchange-Traded Funds (ETFs) have gained significant popularity in recent years due to their flexibility and global exposure. Just like mutual funds, ETFs represent a basket of securities, including stocks, bonds, commodities, or a combination thereof. However, unlike mutual funds, ETFs are traded on stock exchanges throughout the trading day at market prices. ETFs offer several benefits, including transparency, liquidity, and cost-effectiveness. Parents can buy and sell ETFs at any time during market hours, allowing for more flexibility in managing their investments. Additionally, ETFs disclose their holdings daily, ensuring transparency in the investment portfolio. With generally lower expense ratios compared to mutual funds, ETFs offer a cost-effective investment option for parents. 2. USA Stocks For parents who are comfortable with taking on more active roles in their investment journey, investing in individual stocks can be an exciting avenue. Owning shares of well-established companies can offer substantial returns over time. While investing in individual stocks requires careful research and monitoring, it can provide the potential for higher growth compared to mutual funds or ETFs. EduFund's resources can assist you in understanding stock investing basics and identifying companies with strong fundamentals. To mitigate risk, parents can consider diversifying their stock portfolios across different sectors and industries. This diversification helps reduce the impact of a single stock's performance on the overall portfolio. In addition, parents should adopt a long-term investment mindset and focus on the fundamentals of the companies they invest in rather than short-term market fluctuations. Investment Tips for Dad's in India Read More Insurance - Protecting Your Family's Future Insurance is a pivotal component of any comprehensive financial plan, especially for parents. Life insurance provides financial protection to your family in the event of your untimely demise. It ensures that your children's education, living expenses, and future aspirations are secure, even in your absence. Term life insurance offers coverage for a specified period, providing a higher coverage amount at an affordable premium. Additionally, health insurance safeguards against unexpected medical expenses, offering peace of mind during uncertain times. By securing adequate insurance coverage, parents can safeguard their family's financial well-being and ensure a secure future. Investment Tips for Mom's in India Read More Mutual Funds - Diversify and Grow Your Wealth Mutual funds are an excellent choice for parents seeking diversification in their investment portfolios. These funds pool money from several investors to invest in a variety of asset classes, including stocks, bonds, and money market instruments. Managed by professional fund managers, mutual funds allow parents to benefit from their expertise and experience in making investment decisions. By spreading investments across different sectors and markets, mutual funds help reduce the risk associated with investing in individual stocks. Parents can choose from many types of mutual funds on the basis of their risk appetite and financial goals. For those seeking stability, bond funds can offer a regular income with lower volatility. On the other hand, equity funds offer an opportunity for capital appreciation through investments in stocks. Balanced funds offer a blend of both equity and bond investments, providing a balanced risk-return profile. By investing in mutual funds, parents can access professional investment management and enjoy the benefits of diversification. You can lay a strong foundation for your family's future by incorporating these investment plans into your financial strategy. Remember that investment decisions should align with your risk tolerance, financial goals, and time horizon. It's always suggested as advice to seek guidance from financial advisors who can provide personalized advice based on your specific circumstances. Conclusion  Investing wisely is an integral part of parental responsibility. By incorporating these five investment plans into your financial strategy, you can take proactive steps toward securing your child's future while also protecting your own financial well-being. Remember to conduct thorough research, seek professional advice, and regularly review your investment portfolio to adapt to changing circumstances. By combining long-term vision with disciplined investment practices, you can build a strong financial foundation for your children, allowing them to chase their dreams with confidence. Start planning today and pave the way for a prosperous future for your family. Consult an Expert Advisor

As the name suggests, open-ended mutual funds are always open to investment along with redemptions. In the world of mutual funds, open-ended funds are a common type of investment. One of the key highlights of these funds is that they don’t have any form of lock-in period or maturities. Hence, it is always open.  An open-ended mutual fund is an investment scheme where the shares can be issued and redeemed at any time. Based on data from (the Association of Mutual Funds in India) AMFI, a total of 14 open-ended mutual funds were launched in March 2021 with a total mobilization of INR 4539 crores.   In an open-ended mutual fund, you have to calculate the (Net Asset Value) NAV daily on the value of underlying securities at the end of the day. Here are some essential things to know about open-ended mutual funds. Difference between an open-ended mutual fund and a close-ended mutual fund  To be precise, there are various types of differences between open-ended mutual funds and close-ended mutual funds. Here are the primary differences between the two mutual funds:  1. Liquidity   In open-ended mutual funds, investors enjoy higher liquidity. Simply put, you can purchase or sell units at any time except the units of ELSS funds. The units are locked in for three years from the date of investment. This is one of the primary advantages of open-ended mutual funds compared to close-ended mutual funds.   On the contrary, close-ended mutual funds have no liquidity during the lock-in time. You can redeem your units only after the mandatory lock-in period is over.   Ways in which you can invest  In open-ended mutual funds, you can invest via lump sum and through SIPs. Moreover, you can make any number of purchases in the fund.   On the contrary, in close-ended mutual funds, you can only invest during the (New Fund Offer) NFO. In other words, you cannot invest in SIPs.   1. Investment amount   In an open-ended mutual fund, you can start investing with as minimum as INR 500 or INR 1000.   On the contrary, in a close-ended mutual fund, the minimum amount for investment is INR 5000.   2. Track record of the funds   You can invest in open-ended mutual funds by carefully checking the track record of the schemes in which you want to invest.   Since you can purchase close-ended funds only during the NFO period, no track record is available. Investing in a close-ended fund requires attention and minute assessment.  3. Average rupee cost  Through SIPs in open-ended mutual funds, you can take the benefit of rupee cost averages of the unit price. In the case of a lump sum amount, you can also invest based on the market fluctuations. You can also add more units if the market is stable.   On the other hand, in close-ended mutual funds, there is no average rupee cost. This is because close-ended mutual funds don’t accept any investments when the NFO period gets over.  30 source: pixabay Advantages of open-ended mutual fund  1. Liquidity   As an investor, you can redeem the units of open-ended mutual funds. There is no lock-in period that makes you enjoy the liquidity of open-ended mutual funds.   2. SIP availability   In open-ended mutual funds, you can purchase units on any working day. You can even set up a systematic investment plan to deposit a fixed amount.   3. Performance of the funds   You can easily assess the performance of the funds and their past records in an open-ended mutual fund.   Disadvantages of open-ended mutual fund  1. High volatility   The NAV of open-ended mutual funds fluctuates based on the performance of its underlying securities.   2. Relatively high risk  Open-ended mutual funds have a relatively high risk attached to them since the NAV of the funds fluctuates on a daily basis due to market volatility.   Is SIP an open-ended mutual fund?  Open-ended mutual funds allow you to track the performance of the fund, which assists in making informed decisions. In other words, SIP is an integral component of open-ended mutual funds and allows you to enjoy greater flexibility.     How do I know if the mutual fund is open-ended?  There are various ways to know if the mutual fund is open-ended or not. For instance, an open-ended mutual fund contains SIPs. Moreover, you will enjoy greater flexibility and market regulations in an open-ended mutual fund.   Is the Index fund open-ended?  In case you didn’t know, index funds are open-ended. It attempts to replicate an index like the S&P 500. Hence, it doesn’t allow the manager to actively select securities to purchase.  Investing in mutual funds is a great way to enhance your investment portfolio. By knowing about open-ended mutual funds, you will be able to gain greater flexibility. Open-ended funds are suitable for investors who can invest in a liquid investment instrument and undertake market risks. FAQs What is the difference between open-ended and closed-ended mutual funds?  Ans. Contrary to closed-ended funds, which may only be redeemed when the fund's investment tenure has been completed, open-ended funds allow for the purchase or sale of assets at any time.  What is a closed-ended mutual fund?  Ans. Close-ended funds are defined by the Securities and Exchange Board of India (SEBI) as mutual funds with a predetermined maturity period. At the moment the program is launched, these mutual funds are accessible for subscription for a set amount of time.  Is SIP an open-ended mutual fund?  Ans. Systematic Investment Plans (SIPs) allow you to invest in open-ended schemes. SIPs cannot be used to invest in closed-ended schemes; during the NFO period, only lump sum investments are permitted.  Consult an expert advisor to get the right plan for you    TALK TO AN EXPERT

Being a parent comes with multiple responsibilities, and managing finances is a crucial aspect of providing for your family. It's easy to fall into the trap of overspending, especially when it comes to raising children. However, with careful planning and a few simple strategies, you can avoid overspending and maintain financial stability while still meeting your family's needs. Effective ways to avoid overspending as a parent.   1. Create a Budget   Setting up a comprehensive budget is the foundation for managing your family's finances. By allocating specific amounts to different expenses, you can track your spending and identify areas where you may be overspending. Here's how to get started:    Assess Your Income and Expenses:   Begin by evaluating your monthly income and fixed expenses, such as rent/mortgage, utilities, and loan payments. Then, calculate variable expenses, such as groceries, childcare, and entertainment.   Prioritise Essentials:   Assign a reasonable portion of your budget to essential expenses like food, housing, healthcare, and education. Ensure that these necessities are covered before allocating funds to discretionary spending.     Set Savings Goals:   Include a savings category in your budget to build an emergency fund and plan for future expenses like education or retirement. Try to set aside a certain portion of your money each month.  Early Decision vs Early Action Read More 2. Differentiate between needs and wants   One of the most effective ways to avoid overspending is to differentiate between needs and wants. Teach your children the importance of making wise financial decisions by following these steps:    Identify Necessities:   Distinguish between essential items and discretionary purchases. Discuss with your family the difference between needs (such as nutritious food and clothing) and wants (like expensive gadgets or designer clothes).   Encourage Delayed Gratification:   Teach your children the value of patience and delayed gratification. Help them understand that waiting and saving for something they want can be more rewarding than instant, impulsive purchases. https://www.youtube.com/watch?v=sNqwEZbjEvc 3. Embrace frugal habits   Adopting frugal habits can significantly reduce unnecessary expenses and help you save money in the long run. Consider implementing the following strategies:   Plan Meals and Shop Smart:   Create weekly meal plans and make a grocery list before going shopping. Keep to your list and abstain from impulsive purchases. Keep to your list and abstain from impulsive purchases. Look for sales, use coupons, and buy in bulk whenever possible.    Choose Quality over Quantity:   Invest in durable and high-quality products for your children rather than constantly buying inexpensive, low-quality items that may need frequent replacement. Long-term financial savings are possible with this strategy.   Emphasise Experiences over Material Possessions:   Instead of spending excessively on toys and material possessions, focus on creating memorable experiences with your children. Engage in activities like picnics, nature walks, or family game nights that promote bonding without straining your budget. https://www.youtube.com/watch?v=NKh7YxTo9yc 4. Teach financial literacy to your children   Educating your children about money management from an early age can empower them to make responsible financial decisions in the future. Consider the following steps:     Introduce the Concept of Saving:   Encourage your children to save a portion of their pocket money or earnings from chores. Help them open a savings account to witness their money grow over time.    Involve Children in Financial Discussions:   Include your children in age-appropriate discussions about budgeting, saving, and financial goals. This involvement will instill a sense of responsibility and encourage them to make thoughtful choices. Importance of Family Budgeting Read More Additional Tips to Avoid Overspending Limit Impulse Purchases: Avoid making spontaneous purchases on non-essential items. Before buying something, give yourself a cooling-off period of 24 hours to assess whether it's a necessary expense or an impulsive desire.   Comparison Shop: Take the time to compare costs and explore different options before making major purchases. Look for deals, discounts, or alternative brands that offer the same quality at a lower price. Online shopping platforms can be helpful for finding competitive prices.   Utilise Hand-Me-Downs and Borrowing: Children outgrow clothes, toys, and other items quickly. Take advantage of hand-me-downs from friends or family members, or consider borrowing items that your child may need temporarily. This can significantly reduce expenses on items that are only used for a short period.   Avoid Peer Pressure: Kids often desire things because their friends have them. Teach your children the importance of individuality and not succumbing to peer pressure. Encourage them to make choices based on personal preferences and needs rather than trying to keep up with others.   Prioritise Debt Repayment: If you have outstanding debts, allocate a portion of your budget to paying them off systematically. Reducing debt will alleviate financial stress and free up resources for other priorities.   Regularly Review and Adjust Your Budget: As your family's needs and circumstances change, it's important to revisit your budget periodically. Analyze your spending patterns and adjust your allocations accordingly. This ongoing assessment will help you identify areas where you can make further improvements and avoid unnecessary expenses.   Seek Support from Parenting Communities: Connect with other parents who share similar financial goals. Join parenting groups or online forums where you can exchange money-saving tips, advice, and support. Learning from others' experiences can provide valuable insights and motivation.   Remember, the goal is not to deprive your family but to strike a balance between meeting their needs and maintaining financial stability. By practicing mindful spending and instilling good financial habits in your children, you are setting a positive example for their future financial well-being.  Consult an Expert Advisor

For accumulating money and accomplishing long-term financial objectives, investing is a great option. However, many people believe that investing requires substantial capital, making it inaccessible for those on a limited budget. The good news is that there are affordable ways to start investing, even with limited funds. Here are some affordable ways to invest without breaking the bank!  Systematic Investment Plans (SIPs): Systematic Investment Plans, or SIPs, are an excellent option for those who want to invest in mutual funds with a small amount of money regularly. By investing a fixed amount at regular intervals, such as monthly or quarterly, you can take advantage of the power of compounding and mitigate the impact of market volatility. With SIPs, you can begin with a little contribution and progressively increase it as your financial condition improves.  Starting with a Small Lump Sum: If you have a small lump sum of money available, you can begin investing by allocating it wisely. Rather than leaving your funds idle in a savings account, consider investing them in low-cost index funds or exchange-traded funds (ETFs). These investment vehicles provide diversification across multiple stocks, bonds, or other assets, making them a suitable choice for long-term growth.  Gradually Investing Your Savings: If you've been diligently saving money, you can gradually invest those savings to generate additional returns. This approach allows you to deploy your funds strategically, ensuring you don't invest all your savings at once. By adopting a disciplined approach and investing a portion of your savings regularly, you can mitigate the risk of investing a large sum at the wrong time.  Follow a Budget and Set Goals: One of the most important aspects of affordable investing is maintaining a budget and setting realistic financial goals. By tracking your expenses, cutting down on unnecessary expenditures, and prioritizing savings, you can free up more money to invest. Additionally, setting specific investment goals, such as saving for retirement or a down payment on a house, will help you stay motivated and focused on your long-term financial objectives.  Opt for SIPs Over EMIs: Instead of opting for expensive purchases through equated monthly installments (EMIs), consider redirecting that money towards SIP investments. While EMIs may seem convenient, they often come with high-interest rates and can lead to unnecessary debt. By investing the equivalent EMI amount in SIPs, you can build wealth over time and achieve financial stability without incurring additional debt.  Manage Your Debt: Before diving into investing, it's crucial to address any existing debts. High-interest debts, such as credit card balances or personal loans, can hinder your financial progress. Prioritize paying off these debts before focusing on investing. By reducing your debt burden, you'll have more disposable income available for investments in the future.  Explore Exchange-Traded Funds (ETFs): ETFs are investment funds that trade on stock exchanges and offer exposure to a diversified portfolio of assets. These funds are designed to track the performance of a particular index, sector, or commodity. ETFs often have low expense ratios and can be a cost-effective way to invest in a broad range of assets, such as stocks, bonds, or commodities. They are particularly suitable for beginners due to their simplicity and affordability.  Mutual Funds: Mutual funds pool the money of several investors to invest in a wide range of stocks, bonds, or other securities. They are managed by professional fund managers, making them an attractive option for individuals with limited investment knowledge. Mutual funds offer the advantage of diversification, allowing you to spread your investment across various assets, thereby reducing risk. Many mutual funds offer affordable initial investment requirements, making them accessible to beginner investors.  Direct Investing in US Stocks: With the rise of online brokerage platforms, it has become easier for individuals to invest directly in US stocks. Investing in individual stocks allows you to take a more hands-on approach and potentially earn higher returns. However, it is essential to thoroughly research and understand the companies you invest in to mitigate risks. Additionally, diversification is crucial, so consider investing in a mix of different stocks across various sectors.  In conclusion, starting to invest in a budget is possible. By setting goals, utilizing affordable options, and staying consistent, you can build wealth and work towards your financial objectives.  Consult an Expert Advisor

Investing can be a powerful tool for securing your financial future and building wealth. However, many individuals often shy away from it due to fear and anxiety. The fear of investing is a very common sentiment that is driven by various factors such as the fear of losing money, market volatility, and a lack of understanding about investment strategies. In this comprehensive guide, we will explore some practical steps to help you manage your fear of investing, empowering you to make informed decisions and take control of your financial journey. How to manage your fear of investing? 1. Understanding your fear The first step in moving ahead of any fear is to understand its root cause. Take the time to identify the particular concerns that are holding you back from investing. Are you nervous about losing money? Do you lack confidence in your investment knowledge? By pinpointing the exact sources of your fear, you can face them directly and create a plan to overcome those fears. Reflect on past experiences, assess any negative beliefs or biases you may have, and recognize that fear is a natural part of the investment process. 2. Educating yourself Knowledge is the major key to overcoming any fear. Arm yourself with information about investing by reading books, attending seminars, and following reputable financial websites. Understand the basic concepts of investing, different asset classes, and investment strategies. Learn about risk management and how to evaluate investment opportunities. The more you learn, the more prepared and confident you will feel in making investment decisions. 3. Setting clear financial goals Establishing clear financial goals is crucial for overcoming fear and staying focused. Determine what you want to achieve through investing. Are you saving for buying a home, retirement, or funding your child's education? Having some specific goals will help you to align your investment strategy and give you a sense of purpose and direction. Write down your goals, break them into smaller milestones, and regularly review and adjust them as needed. Role of Investment in Funding Your Studies Read More 4. Starting with small steps If you are hesitating and unsure to jump headfirst into the world of investing, just start small. Consider opening a low-risk investment account, such as a mutual fund or a robo-advisor. These options allow you to invest a relatively small amount of money while diversifying your portfolio. Starting small allows you to become familiar with the investment process, gain confidence, and experience the potential rewards of investing. As you gain confidence and see positive results, you can gradually increase your investment contributions. 5. Diversifying your portfolio One of the most effective ways of managing risk is through diversification. Spreading your investments across different asset classes, such as bonds, stocks, commodities, and real estate, can help reduce the impact of market fluctuations on your overall portfolio. By diversifying, you are less reliant on the performance of a single investment, thereby mitigating the fear of losing everything. Research thoroughly and understand different investment options. Also, consider consulting with a financial advisor to create a diversified portfolio that aligns with your risk tolerance and financial goals. Benefits of Investment in the US Market Read More 6. Developing a long-term mindset Investing is a really long-term game. Short-term market volatility is just inevitable, but history has shown that the market tends to grow over time. Keep yourself focused on your long-term goals and avoid making impulsive decisions based on short-term fluctuations. Understand that investing involves ups and downs, and it's important to stay committed to your investment strategy during market downturns. Remember, successful investing requires patience and discipline. 7. Seeking professional advice If you feel overwhelmed or lack the confidence to navigate the investment landscape on your own, consider seeking professional advice. A certified financial planner or investment advisor can provide valuable guidance tailored to your specific circumstances. They can help you create an investment plan, review your risk tolerance, and keep you accountable to your financial goals. Working with a professional can alleviate some of the anxiety associated with investing and provide you with expert insights to make informed decisions. https://www.youtube.com/watch?v=C2K84ePN4IU 8. Practicing emotional discipline Emotions often play a significant role in investment decision-making. Fear and greed can lead to irrational choices that can harm your long-term returns. Develop emotional discipline by sticking to your investment plan, avoiding impulsive buying or selling, and focusing on your long-term goals. Regularly remind yourself of your investment strategy and the reasons behind it. Consider implementing strategies like dollar-cost averaging, where you invest a fixed amount regularly regardless of market conditions, to help remove emotional biases from your investment decisions. 9. Stay informed, avoid overexposure Keeping up with financial news and market trends is important, but be cautious of information overload. Excessive exposure to media hype or doomsday predictions can amplify fear and lead to irrational decision-making. Focus on reputable sources of information and consider limiting your exposure to financial news if it triggers anxiety. Stay informed about the factors that can affect your investments, but maintain a balanced approach and avoid making impulsive decisions based on short-term news. 10. Tracking your progress Lastly, regularly track and evaluate your investment progress. Set aside time to review your portfolio, assess your returns, and adjust your strategy if necessary. Celebrate your successes and learn from your mistakes. By actively monitoring your investments, you will gain confidence and become better equipped to manage your fear of investing. Consider using investment tracking tools or consulting with a financial advisor to help you analyse your progress and make informed decisions. Overcoming the fear of investing is a transformative journey that requires self-awareness, knowledge, and discipline. By understanding your fears, setting clear goals, educating yourself, and taking gradual steps, you can confidently navigate the investment landscape. Remember that investing is a long-term endeavor, and embracing a diversified, disciplined approach will help you weather the inevitable ups and downs of the market. With patience, perseverance, and a commitment to personal growth, you can conquer your fear of investing and unlock the potential for long-term financial success.

In the previous article, we discussed the top 10 large-cap mutual funds in India. In this article, we will discuss the top 10 midcap mutual funds in India. A mid-cap fund is a fund that invests majorly in mid-cap companies as per market capitalization. As per SEBI regulations, a mid-cap fund is required to invest a minimum of 65% of its assets in mid-cap companies through equity. Advantages: High Growth Opportunity: Companies in these funds have a high growth opportunity because of their size and operations. The companies have the potential to become large-cap companies in the future. Diversification: These funds provide a good diversification in your portfolio by spreading the risk across market capitalization companies Top 10 mid-cap mutual funds S.No.Fund Name3-Yr Annualized Performance1PGIM India Mid-cap Opportunities Fund Direct Plan-Growth34.66 %2Quant Mid Cap Fund-Growth Option Direct Plan32.87 %3SBI Magnum Mid Cap Fund Direct-Growth25.55 %4Motilal Oswal Midcap 30 Direct Growth24.46 %5Edelweiss Mid Cap Fund Direct Plan-Growth Option24.39 %6Kotak Emerging Equity Scheme Direct-Growth23.33 %7UTI Mid Cap Fund-Growth Option Direct23.06 %8Mahindra Manulife Mid Cap Unnati Yojana Direct Growth22.66 %9Baroda BNP Paribas Mid Cap Fund Direct Plan Growth Option22.06 %10Axis Mid Cap Fund Direct Plan-Growth22.05 %Note: Data as of July 16, 2022Source: Morningstar 1. PGIM India Mid-cap Opportunities Fund Direct Plan-Growth - Midcap mutual fund Fund analysis: The fund has outperformed the category and the benchmark with good margins. The fund is investing predominantly in mid-cap companies. The fund is rated 5-star by Morningstar. The risk grade is above average, and the returns grade is high. The fund follows a growth style of investing. The risk is spread across companies with the top 10 holdings consisting of 35.25%. The fund has a high risk (measured by standard deviation) than the category average. ProsConsA top performer in its category. The fund captured the market well when it was rising and falling, better than the category average.The minimum monthly SIP amount is Rs 1000/- thus marginal investors may not be able to take exposure 2. Quant Mid Cap Fund-Growth Option Direct Plan - Midcap mutual fund Fund analysis: The fund’s objective is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio of Mid Cap companies. The risk grade is below average, and the returns grade is high. The fund has a beta of 0.85 indicating that the movement of the fund is less relative to the market movement. The fund has a concentrated portfolio of 34 stocks, investing in both value & growth stocks. The fund has low risk (measured by standard deviation) than the category average. ProsConsA consistent top performer in its category. The fund captured the market well when it was rising and falling, better than the category average.Concentrated portfolio of 34 stocks. 3. SBI Magnum Mid Cap Fund Direct-Growth - Midcap mutual fund Fund analysis: The fund’s objective is to provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme by investing predominantly in a well-diversified basket of equity stocks of Midcap companies. The risk grade is above average and the returns grade is high. The fund has invested across market capitalization and sectors of growth stocks. The fund holds a good risk-to-reward ratio. The fund has a high risk (measured in standard deviation) than the category average. ProsConsFund has outperformed the category average over the different horizons. Consistent performer.The fund has a high expense ratio. 4. Motilal Oswal Midcap 30 Direct-Growth - Midcap mutual fund Fund analysis: The fund’s objective is to achieve long-term capital appreciation by investing in a maximum of 30 quality mid-cap companies having long-term competitive advantages and potential for growth. The risk grade is high and the returns grade is above average. The fund has a beta of 0.95 indicating that the movement of the fund is quite closely relative to the movement of the market. The fund has a concentrated portfolio of growth stocks consisting of 27 companies spread over different sectors. The fund has a high risk (measured in standard deviation) than the category average. ProsConsThe fund captured the market well when it was rising. The fund captured the market well when it was falling.Concentrated portfolio. Source: pixabay 5. Edelweiss Mid Cap Fund Direct Plan-Growth Option - Midcap mutual fund Fund analysis: The fund has outperformed the category and the benchmark with good margins. The risk grade is average and the returns grade is above average. The fund has delivered consistent returns over different horizons and has a well-diversified portfolio of 61 growth stocks, investing across market capitalization. The fund has a high risk (measured in standard deviation) than the category average. ProsConsFund captured the market well when it was rising. Consistent performer.Returns are above average. 6. Kotak Emerging Equity Scheme Direct-Growth - Midcap mutual fund Fund analysis: The fund’s objective is to generate long-term capital appreciation by investing predominantly in mid-companies. The scheme may also invest in debt and money market instruments, as per the asset allocation table. The risk grade is above average and the returns grade is above average. The fund has a well-diversified portfolio across market capitalization and sectors except for the communication services sector. The fund has a high risk (measured in standard deviation) than the category average. ProsConsWell-diversified portfolio.Good risk-to-reward ratio.Minimum monthly SIP amount Rs 1000/- 7. UTI Mid Cap Fund-Growth Option Direct - Midcap mutual fund Fund analysis: The fund is rated 4-star by Morningstar. The risk grade is average and the returns grade is above average. The fund has a well-diversified portfolio across market capitalization and sectors. The top 10 holdings of the fund consist of 25.87% only and the fund holds a total of 72 stocks in the portfolio. The fund has low risk (measured in standard deviation) than the category average. ProsConsThe fund captured the market well when it was rising. Fund captured the market well when it was falling.The fund has a high expense ratio. Source: pixabay 8. Mahindra Manulife Mid Cap Unnati Yojana Direct-Growth - Midcap mutual fund Fund analysis: The fund has delivered marginally good returns over the long-term period. The risk grade is low and the returns grade is above average. The fund has a blended style of investing which means the fund is having both value & growth stocks in its portfolio. The fund has a well-diversified portfolio across market capitalization and sectors. The top 10 holdings of the fund consist of 28.33% only. The fund has low risk (measured in standard deviation) than the category average. ProsConsWell-diversified portfolio.Relatively low risk.6-Month returns are less than the category average. 9. Baroda BNP Paribas Mid Cap Fund Direct Plan Growth Option - Midcap mutual fund Fund analysis: The fund will emphasize companies that appear to offer opportunities for long-term growth and will be inclined toward companies that are driven by a dynamic style of management and entrepreneurial flair. The risk grade is below average and the returns grade is above average. The fund is rated 4-star by Morningstar. The fund has a blended style of investing which means the fund is having both value & growth stocks in its portfolio. The fund has low risk (measured in standard deviation) than the category average. ProsConsThe fund captured the market well when it was falling. Broad exposure to the market.1-Yr returns are less than the category average. 10. Axis Mid Cap Fund Direct Plan-Growth - Midcap mutual fund Fund analysis: The fund is giving consistent returns over the long term with an attractive risk-to-reward ratio. The fund is 5-star rated by Morningstar. The risk grade is low and the returns grade is above average. The fund has a beta of 0.76 indicating that the movement of the portfolio has very less relation to the market movement. The fund has outperformed the category and the benchmark. The fund has low risk (measured in standard deviation) than the category average. ProsConsAttractive risk-to-reward ratio.Consistent performer.Fund was not able to capture the market well when it was rising. Features of Midcap Mutual Funds  Before we delve further, let’s check out what features midcap mutual funds have and how would you identify the best ones.   1. Risk-return Ratio Not too much. Not too less. Unlike small-cap mutual funds, with the best mid-cap mutual funds, you get a moderate risk-return ratio. Despite the low risk, these MF schemes often outperform large-cap equity funds and generate greater returns in the long run.   2. Asset Allocation When it comes to investing equity or equity-based securities of mid-cap companies, the SEBI mandates at least 65% of the total assets to be invested. The rest of the assets can be allocated to debt securities.   Major Advantages of Midcap Mutual Funds in India 1. Transparency SEBI (Securities and Exchange Board of India) mandates all mid-cap mutual funds and displays their expense ratios, NAVs, and month-end portfolios. This data is also regulated closely by the apex body.   Who are the Top Midcap Mutual Funds Suited For?  Midcap mutual funds come with a probable capacity for market-beating returns. For this, investors who are willing to sit through long-term plans and face volatility would best fit. Some factors that must be considered before opting for these schemes are -  One must understand their financial goals before making a commitment.   Everyone has a certain capacity to bear the risk levels of mutual fund schemes. One must evaluate the risk levels carefully before investing.  Investors can opt for schemes that have a low expense ratio (the portfolio management fee one has to pay to the AMCs) and a decent track record.   If one redeems their funds before a specific period, the AMCs levy a penalty called Exit Load. Investors must check the Exit Load, which is denoted in percentage and mentioned in the scheme-related documents.    Tax on Midcap mutual funds  Here is the taxability of top midcap mutual funds.   1. TDS A midcap funds’ dividend that exceeds INR 5,000/ fiscal year is applicable for 10% TDS.  2. Long-term Capital Gains Tax (LTCG Tax) If a sold unit’s holding period is over 1 year and the gains exceed INR 1 L, the LTCG tax will be 10%. Any amount below INR 1 L/ FY is exempted from LTCG tax.   3. Short-term Capital Gains Tax (STCG Tax) If one sells the fund units within one year of the purchase, they’ll have to pay a 15% STCG tax on the capital gains. Conclusion: For any investor who is looking for capital appreciation with comparatively lower risk than the small-cap mutual funds. Companies in this fund are fast-growing companies with the potential to become large-cap in the future. TALK TO AN EXPERT FAQ Can I liquidate my midcap mutual funds easily?  Yes, these funds are highly liquid and one can sell their units whenever they want. What kind of taxes would I have to pay on midcap mutual funds?  You’ll have to pay 10% TDS if any dividend from the funds exceeds INR 5,000/ FY. 10% LTCG tax if your gains exceed INR 1 L and the holding period of the sold units is over 1 Year. 15% STCG tax on your capital gains if you sell your fund units within 1 year of purchase. Which is the best midcap mutual fund in India right now?  As of now, PGIM India Mid-cap Opportunities Fund Direct Plan-Growth is the top midcap mutual fund in India.   What is mid-cap mutual funds?  Ans. A form of equity mutual fund known as a "mid-cap fund" invests in the stock of mid-sized businesses. According to the rules, mid-cap companies are defined as those ranked 101 through 250 on the basis of market capitalization.  Are Midcap funds safe?  Ans. Mid-cap funds can be quite volatile in the short term; therefore, experts advise investors to avoid them if their investment horizon is short. They should make up less than 20% of their overall investment portfolio, they advise. A 20% allocation to mid-cap funds may be considered, depending on risk tolerance.  Which type of SIP gives the highest return?  Ans. Multi-cap schemes provide better ROIs than both types of SIPs, but they are more volatile than large-cap or mid-cap schemes. For investors who desire high returns but don't mind taking some risk with their investments, these SIPs are the perfect option.  Disclaimer:This is not recommendation advice, use it for educational purposes only. Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of the future performance of the schemes.

In today's rapidly evolving world, education plays a vital role in shaping our professional paths and opening doors to countless opportunities. However, the rising cost of education often poses a significant financial barrier for many individuals. This is where education loans come into the picture, offering a way to finance higher studies and bridge the gap between aspirations and affordability. In this blog, we will explore the advantages and disadvantages of education loan, providing a comprehensive understanding of the pros and cons associated with this financial decision. https://www.youtube.com/watch?v=gbPJ_XjILUA Advantages of taking an education loan Education loans offer several advantages that make them a viable option for individuals seeking financial assistance to pursue higher education. Here are some key advantages to consider: Accessibility to Education: Education loans make education accessible to a broader range of students who may not have the immediate financial means to fund their studies. By providing funds to cover tuition fees, books, accommodation, and other related expenses, education loans enable individuals to enroll in desired courses and institutions. Flexible Repayment Options: Most education loans offer flexible repayment options, allowing borrowers to start repayment after completing their studies or opt for affordable installment plans. This flexibility provides students with the necessary time and resources to focus on their education and secure employment before beginning loan repayments. Building a Positive Credit History: Taking an education loan and making timely repayments can help individuals build a positive credit history. This can be advantageous in the future when applying for other financial products, such as mortgages or car loans, as lenders often consider creditworthiness. Potential Tax Benefits: In some countries, education loan interest may be tax-deductible, offering potential tax benefits for borrowers. This reduces the overall cost of borrowing and provides additional financial relief. Focus on Education: By obtaining an education loan, individuals can focus on their studies without the constant worry of managing immediate financial obligations. This allows students to dedicate their time and energy to academic pursuits, maximizing their learning experience and increasing their chances of academic success. taking education loans Disadvantages of taking an education loan While education loans provide an avenue for individuals to finance their education, it is important to consider the potential disadvantages that come with borrowing. Here are some key points to be aware of: Accumulating Debt: Taking an education loan means accumulating debt that needs to be repaid. Depending on the amount borrowed and interest rates, this debt burden can be significant and may take years to pay off, impacting an individual's financial situation for an extended period. Interest Accrual: Education loans typically accrue interest over the repayment period, adding to the overall cost of borrowing. Higher interest rates can significantly increase the total amount repaid, making education more expensive in the long run. Repayment Obligations: Loan repayments can be a financial burden, especially for individuals who are just starting their careers or facing other financial obligations. Monthly loan payments can limit financial flexibility, affecting one's ability to save, invest, or pursue other life goals, such as homeownership or starting a business. Risk of Default: Failing to meet loan repayment obligations can lead to serious consequences, including damage to credit scores and potential legal action. Defaulting on an education loan can have long-lasting effects on an individual's financial health and future borrowing opportunities. Dependency on Income: Loan repayments are often tied to income, which means that individuals may be required to allocate a significant portion of their earnings toward loan repayment. This dependency on income can limit career choices and job flexibility, as individuals may feel compelled to prioritize higher-paying jobs to meet their repayment obligations. https://www.youtube.com/watch?v=uPGJr3BiXpI Considerations for Taking an education loan Before committing to an education loan, it is essential to consider various factors to ensure a well-informed decision. Here are some key considerations to keep in mind: Financial Planning: Evaluate your current financial situation and future earning potential. Create a budget to determine the amount you can comfortably borrow and repay without compromising your financial stability. Alternative Funding Options: Explore scholarships, grants, part-time work, or employer-sponsored education programs as alternatives to borrowing. These options can help reduce the amount of debt you need to take on. Loan Terms and Conditions: Thoroughly research and compare loan options from different lenders. Pay attention to interest rates, repayment terms, fees, and any hidden charges. Understand the implications of deferment, forbearance, or early repayment. Future Career Prospects: Consider the potential return on investment for your chosen field of study. Research the job market and earning potential to ensure that your education loan is aligned with your future career prospects. Ultimately, by carefully considering the advantages and disadvantages, individuals can make informed decisions and strike a balance between financing their education and managing their long-term financial well-being.  When approached responsibly, education loans can be a valuable tool in achieving academic dreams and building a brighter future.

College admissions can be exciting and overwhelming for students and their families. As you navigate the many options, you'll likely come across the terms "Early Action" and "Early Decision." These two popular admissions strategies can give you a competitive edge and potentially increase your chances of securing a spot at your dream college. In this blog, we'll delve into the key differences, benefits, and considerations of Early Action (EA) and Early Decision (ED) to help you make an informed decision. Early decision vs Early action Differences between early decision vs early action Early Action (EA) Early Action is a non-binding admissions process that allows students to submit their applications early—usually by November or December while still having until the regular decision deadline to make a final college choice. Here's what you need to know about EA: Flexibility: One of the primary advantages of Early Action is the flexibility it provides. As an EA applicant, you're not obligated to attend the college if accepted. You can still apply to other institutions, compare financial aid offers, and weigh all your options before making a final decision. Timelines: With Early Action, you typically receive your admissions decision earlier than regular decision applicants—often in December or January. This early notification can alleviate the stress of waiting and give you more time to prepare for the next steps, such as exploring scholarship opportunities or visiting campuses. Demonstrated interest: Applying Early Action can demonstrate your enthusiasm and commitment to a particular college. It shows that you've taken the initiative to complete your application well before the regular deadline and signals your genuine interest in attending the institution. Strategic Advantage: For competitive colleges that offer EA, early applicants may have a slightly higher acceptance rate than the regular pool. By applying to EA, you're presenting yourself as a strong candidate while the admission committee is still reviewing a smaller number of applications, thus potentially increasing your chances of admission. Popular Universities that offer early action Here is a list of universities that offer Early Action admission rounds to their potential students:  University of Chicago University of Illinois at Chicago University of Notre Dame Massachusetts Institute of Technology (MIT) Columbia University  Yale University Stanford University Early Decision (ED) Early Decision is a binding admissions option that requires students to commit to attending a specific college if accepted. Here's what you should consider before applying for ED: Commitment: Applying for Early Decision allows you to enroll at the college if admitted legally. If you receive an acceptance letter, you must withdraw all other college applications and decline any other offers you may have received. Only choose ED if you are sure about your college choice. Higher Acceptance Rates: Colleges tend to admit a higher percentage of their incoming class through Early Decision. ED applicants are considered a committed group with a strong desire to attend the institution. This can be a strategic advantage for students with a clear top-choice college. https://www.youtube.com/watch?v=ycDKvqDM4yY Financial Considerations: Before applying for Early Decision, carefully evaluate the college's financial aid policies. While some institutions are known for providing generous aid packages, others may not offer the same financial support. Ensure you thoroughly understand the financial implications and have discussed them with your family before committing to ED. Deadlines and Timelines: ED applications have early deadlines, usually around November. If you decide to apply to ED, you must be well-prepared to meet these earlier dates. The admissions decision is typically rendered in December, allowing you to plan ahead and potentially enjoy a stress-free senior year. Importance of Family Budgeting Read More Which option is right for you? Choosing between Early Action and Early Decision is a personal decision that depends on your circumstances, preferences, and college goals. Here are some factors to consider: Level of Certainty: If you have a clear top-choice college and are confident that it's the best fit for you academically, socially, and personally, Early Decision might be the right choice. However, if you want to keep your options open and explore multiple colleges, Early Action allows you to apply early without the binding commitment. Financial Considerations: Consider your financial situation and research each college's financial aid policies. If affordability is a significant factor in your college decision, ensure you clearly understand the aid packages offered by your preferred colleges before making any binding commitments. Application Preparedness: Both EA and ED applications require careful preparation, but ED applications have earlier deadlines. If you feel confident in your application materials and are ready to submit them early, ED may be a viable option. However, if you need more time to fine-tune your application, Early Action provides a less restrictive timeline. Popular Universities that offer Early Decision Here are some popular universities that offer early decisions to their potential students: Brown University Cornell University Dartmouth University New York University Duke University Northwestern University  University of Pennsylvania Conclusion Early Action and Early Decision are popular admissions strategies that offer distinct advantages for college applicants. Early Action allows for flexibility, earlier decisions, and demonstrated interest, while Early Decision can provide a strategic advantage and potentially higher acceptance rates. Ultimately, the choice between EA and ED depends on your level of certainty, financial considerations, and readiness to commit to a specific college. Remember to thoroughly research and weigh the pros and cons of each option before making a well-informed decision that aligns with your college goals and aspirations. Good luck with your college applications!

Foreign Direct Investments is one of the revolutionary concepts transforming the world landscape. United Nations, Canada, and Australia are the primary countries leveraging FDI for ages.  Recently, there was a growing interest among European countries. However, they reduced the monopoly to influence the decisions owing to national security concerns. Many countries previously lacked a proper FDI regime and prospectus.  COVID-19 proved as a breakthrough for FDI. With the world crippled with inflation blues and the Indian currency breathing last, Foreign Direct Investment emerged as a driving force. Investors became active internationally and began investing in some of the most potential sectors. However, these countries face hardships in securing clearance to invest.  India is increasingly encouraging foreign countries to contribute to development.  According to the Economic Times report in July 2022, “India approved 80 FDI proposals. One of these countries is China.” India received 382 proposals after imposing restrictions on investment from countries where it shares a border.  The government’s cautious stands reveal the reason behind slow approvals. India is currently focusing on approving proposals demanding minimal dominance. FDI in India is attracting worldwide attention in the e-commerce and manufacturing industries. What do Foreign Direct Investments imply?   Foreign Direct Investment is a business agreement between two countries. In this, one of the countries reveals interest in investing in the other country’s economy for development and advancement, and it proves beneficial for the country that welcomes investors worldwide.  The Foreign Exchange Management Act of 1999 (FEMA) was the inspiration behind the move. RBI issues regulations in detail in this regard.  Countries invest in expanding their business operations. In precise, an investment into a foreign land or company is FDI. If a country gains 10% of the voting power, it gains the interest of the country.  According to the Indica News Bureau, “Silicon Valley Bank, California concluded India as the 5th in FDI inflows.”  SVB praised India’s “Make in India” approach, and it held India in the top spot in ease of doing business criteria.  Moreover, it also states, “India is the 6th largest economy all over the world with a CAGR (Compound Annual Growth Rate) of 5.4%.”  The figures show that India is generating interest across the globe for diverse investment opportunities and potential for growth.  Popular foreign direct investment types in India FDI differs from direct investments in foreign countries in front of direct control. It is not just about transferring monetary funds but building lasting interest too. Here are 3 popular types of Foreign Direct Investments in India:   Horizontal Investment   In this, a country establishes its business in a foreign country without changing the core business policies. For example, McDonald’s operates in Asian countries to expand stores in a region.  Vertical Investment   In vertical investment, a country invests in another country from a resources point of view and in something complementary to the business.  For example, “a U.S. manufacturer may invest in India for a particular raw material required for manufacturing.”   Conglomerate investment   Here, a country invests in a foreign business that does not share any link with its core business operations.  It eventually is a sort of joint venture.   For example, “If a Chinese firm invests in the Indian Culture industry. In this, it hardly shares much knowledge regarding people’s preferences and economic interests.”  India repeatedly emerges as a preferred investment destination for countries in 2022. It has risen by 23% post-COVID, according to a press release updated by the Indian government.  Which sector attracted the maximum FDI in India in 2022?   The manufacturing sector in India fetched the maximum FDI in 2022. It increased by 76% in FY22 to $21.34 billion. The numbers stand in clear contrast with $12.09 billion in a year. Economic Times concludes the fact. What are some prohibited FDI sectors in India?   While India welcomes foreign countries to invest in a diverse industrial portfolio of the economy, at the same time, it prohibits investing in specific industries:  Agriculture and Plantation Activities  Atomic Energy Generation   Chit fund investments  TDR trading  Housing and real estate  Lotteries  Gambling activities Are foreign direct investments beneficial for a country’s economic growth?   A coin has two sides. Likewise, Foreign direct investment brings benefits and drawbacks in the same way.  Advantages of Foreign Direct Investments in India  Here are some primary benefits of Foreign Direct Investments:  It proves beneficial for the economy in terms of reduced tariffs, excise duty, and tax breaks.   It creates a conducive atmosphere for both investors and countries invested in  It creates new job opportunities for people. It increases income and buying capacity.  The development of human capital resources increases competence and knowledge among the workforce.  The benefit of resource transfer. Disadvantages of Foreign Direct Investments in India Hinders the growth pattern of a country’s economy  Political changes directly impact the growth prospects in the country it is investing in.  Too much intrusion in a country’s operations impacts foreign exchange policies   Increased expense than investing in domestic goods  Colonialism Threat for the Country Seeking FDI   Conclusion:   FDI may prove beneficial for the hosting countries. India made specific sectors 100% open to foreign investments, which can also help contribute significantly to the “MAKE IN INDIA” venture.  Specifically, the Indian economy holds great potential for foreign direct investment.  The country attracting foreign investors must channel a strict policy to limit intrusion and colonialism threats.  FAQs What is the meaning of foreign direct investment?  Ans. Foreign direct investment (FDI) is a type of cross-border investment in which a stake in and significant degree of control over an enterprise located in another country is established over time by an investor who resides in one economy.  What is foreign investment for example?  Ans. When foreign businesses engage in domestic ones, they are attempting to actively participate in both their ongoing daily operations and important strategic expansion. A foreign investment would be made, for instance, if an American company invested in an Indian business.  What is a real example of foreign direct investment?  Ans. An illustration would be McDonald's putting money into an Asian nation to expand the number of restaurants there. In this instance, a business enters a foreign economy to improve a component of its supply chain without significantly changing how it conducts business.  What are the disadvantages of Foreign Direct Investments in India? Hinders the growth pattern of a country’s economy  Political changes directly impact the growth prospects in the country it is investing in.   Too much intrusion in a country’s operations impacts foreign exchange policies   Increased expense than investing in domestic goods  Colonialism Threat for the Country Seeking FDI What are the advantages of Foreign Direct Investments in India? Here are some primary benefits of Foreign Direct Investments:  It proves beneficial for the economy in terms of reduced tariffs, excise duty, and tax breaks.   It creates a conducive atmosphere for both investors and countries invested in  It creates new job opportunities for people. It increases income and buying capacity.  The development of human capital resources increases competence and knowledge among the workforce.  The benefit of resource transfer.

A Systematic Investment Plan (SIP) in Mutual Funds allows investors to invest a specified sum of money periodically, once a month, or every other quarter. Like a recurring deposit, the monthly amount can be as low as INR 500. It's practical since you can direct your bank to deduct the money monthly.  SIP has gone mainstream amongst Indian mutual fund investors because it allows them to invest in a disciplined way without dealing with economic uncertainty. Mutual Funds Systematic Investment Plans are by far the most popular way to get started in the realm of long-term investing. Starting SIP in Mutual Fund helps you stay invested for a long.   SIPs are similar to recurrent deposits in which you invest a small/fixed sum each month. In India, Mutual Fund SIP accounts totaled 5.55 crores, with a total sum generated through SIP of 12,276 crores in June 2022.  The following are the monthly amounts of SIP Contributions received from FY 2016-17 onwards: The following are the details of new SIPs registered and canceled during FY 22-23 How long should a SIP last?  Staying invested as long as possible is key to good returns. If you participate in a SIP for four years, your chance of loss is minimal. It's also important to keep in mind that short time periods have more chances of loss and outside profit. In overextended historical periods, the good and terrible times balance out.  The asset allocation of SIP investment  Asset allocation is a critical component of SIP investment. The stock market performance determines the returns earned by equity-associated mutual funds. Therefore, if the market is not providing an attractive yield, your fund will deliver modest returns. For good returns, try to dynamically distribute your assets - ideally combine long-term, mid-term, and short-term investments. You can diversify your SIP investments based on your risk tolerance and investment objectives, and not restrict your investments to just one kind of investment.   When to withdraw?  This has been the most frequently posed question among investors. The appropriate response is entirely dependent on the success of your fund. Monitor the mutual fund performance in which you have invested. If the fund has a poor performance for even less than a year, it could be subject to market swings, but if the commission has been poor for much more than eighteen months, explore different investments.  Nevertheless, this is not the only criterion to consider when evaluating a fund's performance; you need also to consider the mix of firms in which the fund has invested and their potential profitability. Another effective method is to compare the performance of your mutual fund to that of identical mutual fund schemes.  Benefits of Investing through SIP  Simple Investment: You may begin investing as little as Rs 500 per month through SIP and see it increase. A SIP is not only easy to track, but it also allows you to save more money.  Average Rupee Cost: The Rupee Cost Averaging component of SIP is unique because you buy more units when the market is low and more negligible when the demand is high. Hence you can buy more during every market downturn, lowering your investment cost and increasing your returns.  Higher returns: SIP delivers twice the returns of regular investments or recurring deposits. This might assist you in avoiding excessive prices.  Compound growth: SIPs work on the theory of getting a compound rate of return on your investments a moderate amount spent over time yields higher returns than a sizeable one-time commitment.  Flexibility: SIP allows you to avoid long-term obligations such as building a portfolio such as Public Provident Funds or Unit Linked Insurance Plans.  Why SIP is the best investment? Read More The best SIP funds  Investing with a SIP allows you to spread your investments over time and benefits from rupee cost averaging. If you opt to invest in mutual funds through a SIP, you do not have to pace the markets. As per ICICI Direct below list is suitable for investments. Top 10 equity mutual funds  As per data from Clear tax (https://cleartax.in/s/best-equity-mutual-funds) table below displays the top-performing equities mutual funds over the previous three and five years. Who should make SIP investments?  Everyone, from students to salaried workers, can start a SIP and invest in their chosen Mutual Funds with as little as Rs. 100 by using this strategy. This is ideal for those with a consistent income stream. Individuals can invest a portion of their regular income in mutual funds by initiating a SIP.  Each mutual fund is designed to attain a certain goal. Select the fund that best meets your objectives and risk tolerance brings you closer to your financial goals. As a note to the investors, before initiating a SIP into a fund, examine the needs and align them with the fund's objectives. Do a thorough analysis of the funds to make the most of your investments! FAQs Is SIP better than a mutual fund?  Ans. SIP may offer a more effective means of achieving budgetary and investment objectives. An investor who uses mutual funds has the choice of reinvested returns or earnings. Investors can benefit from the power of compounding if they reinvest in the same plan rather than withdrawing their money.  Is SIP a good investment?  Ans. One of the greatest methods for disciplined investing is the systematic investment plan (SIP), which should be followed regularly throughout time. By beginning a SIP with two or more funds, an investor can diversify their portfolio.  Can I withdraw SIP anytime?  Ans. The amount and procedure for early withdrawal from a Systematic Investment Plan (SIP) depend on the type of mutual fund, the length of the investment, and the fund house's policies. Most funds have a minimum lock-in period and violating it may incur fees.  Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Students are interested in gaining admission to quality universities which also tend to be the most expensive colleges in India in recent years. The academic learning provided by these institutions is top-notch, no doubt, but so are the additional facilities and luxuries.  Most of the expensive colleges in India offer top-end infrastructure and are fully air-conditioned so that the students can lead an indulgent life. Besides the best learning process, there are also multiple events and extra-curricular activities. Most Expensive Colleges in India 1. Ashoka University Topping the list is Ashoka University, nestled in the serene city of Sonepat, Haryana. With its sprawling campus and state-of-the-art facilities, Ashoka University offers a Bachelor's degree program that commands an annual fee of approximately INR 9.45 lakhs. Students who choose to study here benefit from an interdisciplinary curriculum, renowned faculty, and a vibrant community that fosters critical thinking and holistic development. 2. Indian School of Business (ISB) Moving south to the city of Hyderabad, we encounter the Indian School of Business (ISB), a prestigious private business school. The one-year Post Graduate Programme in Management (PGP) at ISB is highly regarded and comes with a hefty price tag of around INR 38.50 lakhs. However, the substantial investment opens doors to unparalleled networking opportunities, exposure to industry leaders, and a strong alumni network that paves the way for successful careers. 3. Indian Institute of Technology (IIT) Bombay In the realm of engineering education, the Indian Institute of Technology (IIT) Bombay reigns supreme. Renowned for its rigorous academic programs and cutting-edge research, IIT Bombay charges an annual fee of approximately INR 2.20 lakhs for its Bachelor's degree program. The institute boasts world-class infrastructure, a vibrant student community, and an environment that encourages innovation and technological advancement. 4. Indian Institute of Management (IIM) Ahmedabad For those aspiring to enter the world of business management, the Indian Institute of Management (IIM) Ahmedabad stands tall as a beacon of excellence. The two-year Post Graduate Programme in Management (PGP) at IIM Ahmedabad is highly sought after and commands a fee of around INR 28 lakhs. Students who choose to study here benefit from a rigorous curriculum, experienced faculty, and exposure to real-world business challenges, preparing them to become leaders in the corporate world. 5. Manipal Academy of Higher Education In the realm of private universities, the Manipal Academy of Higher Education holds a prominent position. Situated in the picturesque town of Manipal, Karnataka, the university offers a Bachelor's degree program with an annual fee of approximately INR 3.50 lakhs. With a focus on multidisciplinary education and a wide range of academic programs, Manipal Academy provides students with a vibrant campus life and opportunities to explore their passions. 6. National Law School of India University (NLSIU) Shifting our gaze to the field of law, the National Law School of India University (NLSIU) in Bangalore is a premier institution for legal education. With an annual fee of around INR 2.50 lakhs for its Bachelor's degree program, NLSIU attracts bright legal minds from across the country. The university's rigorous curriculum, experienced faculty, and emphasis on practical training make it a preferred choice for aspiring lawyers. 7. O.P. Jindal Global University O.P. Jindal Global University, located in Sonipat, Haryana, is another private university that offers quality education but comes with a high price tag. With an annual fee of approximately INR 7.50 lakhs for its Bachelor's degree program, the university provides a conducive learning environment, global exposure, and a focus on interdisciplinary studies, preparing students for success in a rapidly changing world. 8. SRM Institute of Science and Technology Heading south to Chennai, we encounter the SRM Institute of Science and Technology, a private university known for its engineering and technical programs. With an annual fee of around INR 2.50 lakhs for its Bachelor's degree program, SRM Institute offers students access to modern laboratories, research opportunities, and industry collaborations that enhance their learning experience. 9. Tata Institute of Social Sciences (TISS) The Tata Institute of Social Sciences (TISS) in Mumbai holds a prestigious position in the field of social sciences. With an annual fee of approximately INR 1.50 lakhs for its Master's degree programs, TISS attracts students who are passionate about social issues and aspire to bring about positive change in society. The institute's comprehensive curriculum, experienced faculty, and opportunities for fieldwork and research contribute to a well-rounded learning experience. 10. Vellore Institute of Technology (VIT) Last but not least, Vellore Institute of Technology (VIT) in Tamil Nadu is a private university known for its technical education and research. With an annual fee of around INR 2.50 lakhs for its Bachelor's degree program, VIT provides students with a dynamic learning environment, modern infrastructure, and industry-oriented programs that equip them with the skills needed to excel in their chosen fields. Most Expensive Colleges in India for Engineering There are nearly 6078 engineering colleges in India, out of which 1359 are government and 4359 private colleges. IIT Madras, IIT Bombay, BITS Pilani, and IIT Delhi are considered some of the top engineering colleges in India. The duration of the course is 4 years, and the average fees vary between INR 1 lakh to INR 10 lakhs for the total course. Fees of some of the private colleges like the BITS Pilani are as high as INR 18.8 lakhs.  The most expensive engineering colleges in the world are Harvey Mudd College and Columbia University, with total fees of $58,660 (nearly INR 48.2 lakhs) and $ 61,826 (nearly INR 50.8 lakhs), respectively, for the full duration. Most Expensive Colleges in India for Management India has 4736 MBA colleges, out of which 3969 are private, and 710 are government colleges. Some of the most expensive colleges are IIM Ahmedabad, with a total fee of INR 23 Lakhs, IIM Bangalore, with a fee of INR 21 lakhs for the full course and IIM Calcutta, with a fee of INR 27 lakhs. The average fees for an MBA course and various MBA specializations in the top colleges vary between INR 50,000 to INR 30 lakhs per year.  The most expensive MBA schools in the world are George Washington University School of Business, Marshall School of Business, and Kogod School of Business, with total fees for full duration being $104,895 (nearly INR 86.2 lakhs), $99,419 (nearly INR 81.7 lakhs) and $84,432 (nearly INR 69.4 lakhs) respectively. Most Expensive Colleges in India for Law Out of the total 988 law colleges in India, 252 are government and 723 private colleges. The average fees for private colleges vary between INR 55,000 to INR 10,53,560 per year, and for government colleges, between INR 6,000 to INR 1,50,000 per year.  NLSIU Bangalore and NLU-Delhi are the top law colleges in India offering 3-year or 5-year LLB courses. NLSIU Bangalore fees for the PG Diploma course is INR 2,77,000 per annum, the LLM degree course is INR 1,26,200 per annum, and business law is INR 34,300 per annum.  The average cost of a law degree from abroad varies from university to university. The most expensive colleges in the world are Columbia University, NYU & Cornell for Law. The total tuition fee of Columbia University is $74,995 (nearly INR 61 lakhs), New York University is $71,304 (nearly INR 58.6 lakhs), and Cornell University is $70,274 (nearly INR 57.8 lakhs) for the full duration. Expensive Schools in Bangalore for Child's Education Read More Most Expensive Colleges in India for Medicine The duration of medical education or an MBBS degree is 5 and half years, out of which one year is paid internship. The average fees of medical education for government colleges in India range from INR 15,000 to INR 80,000 per year, and the entire amount for private colleges can go up to INR 50 lakhs easily.  One of the most expensive medical colleges is Christian Medical College Vellore, whose first-year fees for an MBBS course are INR 48,330, for a B.Sc. course is INR 23,280 and for a BPO course is INR 23,255.  The average cost of a medical degree from abroad is between INR 50 lakh to INR 60 lakhs. The most expensive medical schools in the world are Midwestern University and Columbia University, whose total tuition fee is $71,833 (nearly INR 59 lakhs) and $71,107 (nearly INR 58 lakhs), respectively, for the full duration.  Most Expensive Colleges in India for Arts India has more than 15,000 Art colleges that offer online, distance learning, part-time and full-time degree-diploma, and certificate courses. Christ University, Bangalore, and Women’s Christian College Chennai are among the top private colleges in India, with course fees of INR 85,000 per year and INR 57,570 per year, respectively.  The most expensive Arts Schools in the world are Columbia University, Sarah Lawrence College, and Vassar College, with fees of $45,290 (nearly INR 37.2 lakhs), $45,212 (nearly INR 37.1 lakhs), and $44705 (nearly INR 36.7 lakhs) for the full duration respectively.  FAQs Which are the most expensive colleges in India? Tuition fees vary from course to course. Some of the most expensive colleges in India are: Indian Institute of Management Ahmedabad IIM Bangalore BITS, Pilani Kasturba Medical College–Manipal BITS, Goa SRM University Amity University Manipal Institute of Technology VIT, Vellore How much do colleges in India cost? Colleges in India can cost you anywhere between Rs. 10,000 to Rs. 1,00,000 per annum and even more. The cost of studying depends on your course, type of university, and if there are any financial aids like scholarships and grants for students. What is the most expensive course in India to pursue? Medicine is considered the most expensive course to study in India. Private colleges for medicine can cost up to 1 Cr for the entire 5-year program. Which college has the highest fee? In India, colleges like the Indian Institute of Management Ahmedabad and the Indian Institute of Management Bangalore offer MBA programs at Rs. 30 lakhs while Kasturba Medical College–Manipal for Medicine can cost up to Rs. 60 lakhs. Conclusion Studying in the most expensive colleges in India is the new norm amongst students as it helps in making viable connections and opening doors to various career opportunities.  The counselors on the Edufund app can help you find a suitable college for your specific needs. Contact them to make a personalized education plan. TALK TO AN EXPERT