EduFund Blogs

Planning your finances as a parent is the most crucial yet underrated aspect of raising children. Amidst all your parental responsibilities, becoming a parent is emotionally and financially life-changing. One fine day, you suddenly are responsible not only for yourself but also for another person. Embarking on this new adventure requires certain preparations. So, let’s figure out how to plan your finance as a young parent!  Planning Finance as Parents Financial hacks to learn on your new parenthood journey  Here are some hacks that will allow you to spend quality time with your newborn while managing your finances effectively.  #1 Get a health insurance plan for your newborn  The most important step after your child is born is to update your health insurance plan or get a new one to cover your newest member. Many health plans allow young parents to add their child within 30-60 days after the delivery to the family health plan. The insurance covers medical expenses, and hospitalization of the newborn baby and reduces the financial stress of medical bills!    #2 Create a Budget  With an infant entering your life, you will have new expenses. Diapers, baby clothes, baby food, and other childcare costs might add up quickly. Besides, you would also have post-natal and prenatal medical expenses. Some expenses, such as new toys and diapers, might be recurring, while others, like a car seat and a stroller, are a one-time investment.  One quick note: It’s best to understand the “upfront costs” that might be a temporary hit to the wallet. Differentiate it from the recurring costs because they will influence your overall budget. You may also use online budgeting apps to alleviate further stress and anxiety.  Ways to invest in 2023 Read More #3 Create an emergency fund  Sudden unemployment or hospitalization can be financially-stressful when your family is growing. That is why having an emergency fund covering between 6 and 12 months of living costs is valuable. The emergency fund offers a comfortable cushion for new parents. Such a fund is crucial when your family relies on a single source of income.   #4 Save for your kid’s education  Surveys suggest that the average tuition & fees for private institutions were more than $30,000 during 2017-2018. According to research, only 13% of parents place college savings as the top child-related financial priority. Even if your kid’s education does not sound like your immediate priority, the sooner you prepare for it, the better it is. You can start saving your money as per your salary to keep some amount for your child’s education.  source: pixabay #5 Financial plan for your retirement   With so many things to do for your infant, you might at times forget to prioritize your own life goals. But you must not undermine your priority. Just as your child is important, your future life is nowhere less significant. You must consider setting up automatic withdrawal of retirement contributions.  Prioritizing your retirement will prepare you for the future.   #6 Invest in a term life insurance plan  Like other insurance forms, life insurance also can financially protect you & your family against any worst situation. You might not realize it, but term life insurance policies are extremely affordable. For healthy adults, these policies can cost less than monthly video or music streaming services.  The best part of investing in such an insurance policy is that it provides the financial protection that your family requires in case of any unexpected tragedy. Due to the amount of coverage that varies by different aspects, life insurance calculators help determine the appropriate coverage for your family.  #7 Make a will & mention beneficiaries on your accounts  In the event of your unfortunate demise, financial arrangements for your child are crucial. A will, thus, offers a plan for the division of your assets. In addition, it also designates a legal guardian for your child. Most individuals mention their surviving spouse or children as their account’s beneficiaries. You may select a separate guardian who can manage your accounts & assets until your kid reaches legal age.   An authenticated will helps avoid long legal battles about who owns your accounts & assets. It also helps define how your kid will be cared for. You may change the will & beneficiaries at any point in time.   One quick note: When you file out the essential forms, always take legal consultation from an attorney.  Ensuring these steps can safeguard your and your child’s future. Comprehensive financial planning as a parent can help you manage different expenses and maintain a healthy lifestyle for your family. FAQs Why is financial planning important for parents? Financial planning for parents is a must. It helps them manage their child's big and small finances - the biggest finance is education. From nursery to college, Indian parents bear the cost of education, and it's important to plan for its expenses. By categorizing and budgeting, parents can know how much they need, by when they need it so that they can start preparing for it. For instance, the cost of engineering in India is nearly 4-5 lakhs today; in the next 5 years, this cost will double. So to save up for a child's degree, you can choose mutual funds or US ETFs. How do I financially prepare for my child? Here are 7 ways to financially prepare for your child: Get a health insurance plan for your newborn Create a Budget Create an emergency fund Save for your kid’s education Financial plan for your retirement Invest in a term life insurance plan Make a will & mention beneficiaries on your accounts How do I plan finances for my family? The best way to plan your finances as a family is to create multiple budgets. You can have an annual budget, a 5-year financial plan, and a 10-year financial plan. This will help you assess when you need to meet certain goals and how you can achieve the. You can consult a financial advisor to figure out the best possible route. What are the five importance of financial planning? Financial planning for parents helps in achieving the 5 most common goals: buying a home, children's higher education, children's marriage, retirement planning, estate planning, etc., and long-term financial security. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Exchange-traded funds (ETFs) have altered the global financial industry by providing investors with convenient access to foreign markets and a wide range of sectors. However, the increased churn in the ETF market is a natural consequence of such rapid expansion. Some ETFs prosper, while others fail and have to be liquidated or delisted. Although the process of formation and closure represents the constant change of a healthy market, investors are best off avoiding the scary stuff at all costs. The year 2020 saw more than 7500 different ETFs offered in all. Of these 7500, nearly 300 ETFs closed from 2020 until February 2022, almost 4%! Thus, it becomes very imperative for us to study the effects of ETF liquidation and closure. What happens when an ETF closes? An ETF can be closed in two different ways; one is liquidation and the other by delisting. We will see this in detail below. A prospectus supplement will indicate the ETF's last trading date and liquidation date once the decision to disband the ETF has been finalized. "Business as usual" ends at this time or soon after, and the fund stops making new investments as it proceeds to liquidate. As a result, the performance of an ETF diverges from that of its benchmark index. During this time, the ETF issuer will continue to publish an indicative net asset value (iNAV) during the day, which is used when purchasing or selling the ETF. It's generally a good idea to sell any shareholdings before the end of the trading day. What is liquidation? Investors receive cash payments equal to the NAV whenever an asset is liquidated. Most of the time, this has the advantage of offering you fair value for your shares. Liquidation is vital to investors since they only have two weeks to liquidate their shares once the process starts. Once investors learn that their ETF is in the process of liquidation, they have two choices: selling before the closing date or waiting until the final liquidation. To determine the best course of action, one must read the final prospectus supplement. Liquidation is generally less expensive and time-consuming than delisting the ETF if the issuer decides to do so. What is ETF Liquidity? Read More What is delisting? Delisting is significantly more time-consuming for investors who fail to liquidate holdings before the last trading day. When this happens, they must trade OCT, i.e., over the counter, which is time-consuming and often costly compared to buying and selling on an exchange. That is why delisting is vital to investors; failing to keep track of the closing date might negatively affect your investment portfolio. Source: freepik Some examples of ETF closures are DateFundTicker3/7/2022Xtrackers Eurozone Equity ETFEURZ1/14/2022Direxion Dynamic Hedge ETFDYHG12/23/2021Credit Suisse FI Large Cap Growth Enhanced ETNFLGE12/15/2021iShares iBonds Dec 2021 Term Corporate ETF        IBDM12/15/2021Invesco BulletShares 2021 USD Emerging Markets Debt ETFBSAE Negative impacts of ETF closures Impact on investors: Investors face at least four chief risks when an ETF is closed, i.e., liquidated or delisted. Reinvestment Risk: The investor must now find a new investment avenue after cashing out of the delisted or liquidated ETF. It is an intrinsically risky undertaking, especially considering the opportunity cost of exploring new investment alternatives and their benefits and drawbacks. Added Expenses: A delisted ETF incurs additional OTC costs for investors. Additional charges are charged when starting a new investment, which may have a fee structure that differs from the earlier one. Loss of ETF Value: While the investor didn't walk away with anything, it's doubtful that he achieved the investment goals in the case of closure. Investors don't choose ETFs they think will fail in the future. Investors face value loss that they must up elsewhere. Tax Burden: One of the most significant downsides of ETF closures is an increase in the tax burden due to unanticipated capital gains. Impact on Issuer: The major disadvantage of closure for an issuer is the danger of losing its reputation. Reputation Risk: An issuer whose fund is liquidated or delisted may have a difficult time attracting new investors in the future. Advisors are less inclined to endorse ETFs from issuers with a history of closing funds for various reasons. Ways to predict which ETF may be vulnerable to closure 1. Low AUM: One of the best predictors of closure risk is a low AUM. After all, funds that manage millions of dollars in assets are far too profitable to shut down. 2. Issuer strength: Look for ETFs sponsored by prominent, well-known companies such as iShares, State Street, Vanguard, Invesco, and First Trust. A minor sponsor may find it more difficult to continue operating an ETF if it does not initially attract assets. 3. Fund ranking: Less popular ETFs are more prone to closure; avoid them! 4. Trading volume: ETFs actively traded are more likely to change at the underlying assets' value. 5. Appeal: Look for ETFs with a broad investment approach, such as S&P 500 index funds, unless one is an experienced player. Over time, exact methods may not be able to attract adequate assets. Investors can lessen their chances of going through an ETF liquidation by conducting thorough research on the ETF and avoiding a probable closeout. There's no need to panic if the ETF liquidates; simply investigate the next fund and make sure to understand what one is getting into. FAQs What happens to the assets in an ETF when it closes? When an ETF closes, its assets undergo a liquidation process, where they are sold off in the market. The resulting proceeds from the asset sales are then distributed among the shareholders of the ETF. This distribution is typically done on a pro-rata basis, ensuring that each investor receives their fair share of the remaining value. One advantage for investors is that this process is usually tax-free, meaning they don't have to worry about incurring additional tax liabilities when the ETF closes. It provides a relatively seamless exit strategy for investors who no longer wish to hold shares in a particular ETF. Can investors experience financial losses when an ETF closes? While it is possible for investors to face financial losses when an ETF closes, such occurrences are relatively rare. In the event of an ETF closure, investors may potentially experience losses if the liquidation value of the ETF's assets is lower than the value of the shares they hold. However, it's important to note that ETF sponsors prioritize ensuring investors are adequately reimbursed for the full value of their shares. This reimbursement helps mitigate the risk of significant financial losses. As a result, investors are typically provided with a safety net that helps protect their investment capital in the event of an ETF closure. How can investors prevent investing in an ETF that might close? To avoid investing in an ETF that might face closure, investors can adopt a diligent approach. They should conduct comprehensive research on the ETF they are considering. This research should encompass various factors, such as analyzing the ETF's underlying holdings, assessing its historical performance, and evaluating its management fees. By delving into these aspects, investors can gain a better understanding of an ETF's stability and its potential for long-term success. Furthermore, investors can look for ETFs with a larger asset base. ETFs that have amassed a significant amount of assets are generally more financially stable and less likely to face closure. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

The tracking differences and tracking errors are metrics that can aid in evaluating ETFs for a portfolio. However, to properly use the metrics, one must first grasp what each one represents and how much weight each holds in decision-making.  When considering investment products, annualized fund returns are frequently one of the first things investors look at. However, the performance of ETFs compared to their benchmarks and competing products is essential.  The tracking difference, which can be either positive or negative, indicates how well a fund has outperformed or underperformed its benchmark index.   It's derived by subtracting the fund's total return from the benchmark's total. Because a fund's NAV total return includes fund expenditures, the tracking difference for index funds is often negative.  The simple, hypothetical example below shows how two ETFs with the same benchmark's average performance and negative tracking discrepancies compare to a baseline of their benchmark's average performance.  Tracking differences relative to a benchmark Fund A was the better-performing vehicle, with a more significant average tracking difference. Fund B had a lower average tracking difference, giving investors a poorer return.  The annualized standard deviation of tracking different data points is used to compute tracking errors. Tracking error reflects how much variability occurs among the individual data points that make up the fund's average tracking difference. Tracking difference evaluates how much an index product's return differs from its benchmark index.  In our hypothetical example, the graph below depicts the data points that make up the averages. Tracking error is a metric that compares the distribution of individual data points to the average tracking difference of the fund.  tracking differences relative to a benchmark The tracking error for Fund A was more significant. It did, however, produce a better average return. The tracking inaccuracy for Fund B was minor. The average return to investors, on the other hand, was lower.  Do's and Don'ts of Saving for child education Read More Using the tracking error and difference  Maintaining tracking differences and tracking errors in context is critical when choosing the finest indexing ETF for a portfolio. If the total return is a significant criterion, tracking differences in evaluations will likely be more important than tracking errors.   If the consistency of performance is a priority, then tracking errors may be a better option.  What are some factors affecting a fund's tracking of an index?  Total Expense Ratio: The total cost ratio (TER) of an ETF is the single most accurate predictor of future tracking differences. If an ETF charges 0.5 percent to match an index, then ETF returns should trail index returns by precisely 0.5 percent, ceteris paribus.  Transaction And Rebalancing Costs: Whenever an index's components are rebalanced; a new company is added or removed. Thus, the ETFs that track the index must alter their holdings to reflect the current condition of the index.   As a result, the ETF must rebalance its underlying shares, incurring trading costs in the process. These expenses are included and covered by the fund's assets, which increases the tracking disparity.  ETFs that monitor indexes with many stocks, illiquid securities, or frequently rebalance by design will have higher transaction and rebalancing costs, resulting in a more significant tracking gap.  Sampling: Some ETFs choose to keep a representative sample of their holdings. The smallest securities have small weights and have no impact on performance in indexes with thousands of securities.   ETF managers may choose to neglect some of those trivial securities to save money. This can lead to tracking differences.  Cash drag: During the time between when the ETF gets a dividend and when it pays those dividends to owners, the ETF will experience cash drag. i.e., the lag between remittance or reinvestment will have an opportunity cost for the fund.   Investors who want more significant long-term returns could prefer Fund A in the hypothetical case above. Despite its lower average tracking difference, short-term traders seeking higher performance consistency are drawn to Fund B.   In other cases, the trade-off between tracking differences and tracking errors may not be as evident. A superior product would have a minor tracking error and a more significant tracking difference. FAQs What is tracking difference, and how does it impact ETF performance? Tracking difference refers to the variance between an ETF's performance and its benchmark index. Either it can be negative or positive, based on whether the ETF outperforms or under-performs the benchmark. A significant tracking difference suggests that the ETF is not effectively tracking the index, which can affect its overall performance. How can investors utilize tracking differences and tracking errors to choose an index fund? Investors can employ tracking differences and tracking errors to assess the effectiveness of an index fund in replicating its benchmark index. A small tracking difference and tracking error indicate that the fund closely tracks the index. Conversely, a substantial tracking difference and tracking error suggest that the fund is not effectively tracking the index. Consequently, investors should opt for index funds with minimal tracking differences and tracking errors to ensure that they obtain the anticipated returns. What is tracking error, and why is it crucial for investors to consider? Tracking error is the standard deviation of the disparity between an ETF's returns and its benchmark index. It measures how closely the ETF mirrors the index. A high tracking error indicates that the ETF is not closely tracking the index, which can result in unexpected profits or losses for investors. Therefore, it is essential for investors to consider tracking errors when selecting an ETF. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

In the previous article, we discussed the top 10 mid-cap mutual funds in India. In this article, we will discuss the top 10 large-cap mutual funds in India. A large-cap fund is a fund that invests majorly in large-cap companies as per market capitalization. As per SEBI regulations, a large-cap fund is required to invest a minimum of 80% of its assets in large-cap companies through equity. Benefits of Large-Cap Mutual Funds Relatively Low Risk: These funds invest in India’s top large-cap companies, which are very stable. Hence, it helps to lower the risk when compared to other categories of equity-oriented funds. High Liquidity: These funds hold the highest liquidity due to their size and reliability in the market. Stable Returns: Since these funds invest in large-cap companies, they have stability in the business. So, these funds provide stable returns to their shareholders. Top 10 large mutual funds S.No.Fund Name3-Yr Annualized Performance1IDBI India Top 100 Equity Fund Direct-Growth16.79 %2IDBI India Top 100 Equity Fund Direct Growth16.48 %3ICICI Prudential Bluechip Fund Direct Plan-Growth15.72 %4Kotak Bluechip Fund Direct-Growth15.21 %5Mahindra Manulife Large-Cap Pragati Yojana Direct-Growth15.07 %6Baroda BNP Paribas Large-Cap Fund Direct Plan - Growth Option14.65 %7SBI Bluechip Fund Direct-Growth14.44 %8Mirae Asset Large-Cap Fund Direct Plan-Growth14.13 %9Mirae Asset Large-Cap Fund Direct Plan Growth13.99 %10Invesco India Large-Cap Fund Direct Plan-Growth13.99 %Source: Morningstar Let’s look at these funds closely. 1. Canara Robeco Bluechip Equity Fund Direct Plan-Growth - Large cap mutual funds Fund analysis: The fund’s objective is to provide capital appreciation by predominantly investing in companies having a large market capitalization. The risk grade is low whereas the return grade is high. The fund has 98.06% holdings in large-cap companies by market capitalization. The fund has a beta of 0.86 which means that the fund movement is very less relative to the market movement. The fund has a lower risk (measured by standard deviation) than the category average. ProsConsThe fund is less risky when compared to other equity funds. Major holding is in Bluechip companies.Not meant for investors with an aggressive risk appetite. 2. IDBI India Top 100 Equity Fund Direct-Growth - Large cap mutual funds Fund analysis: The fund’s objective is to provide investors with opportunities for long-term capital appreciation by investing predominantly in Equity and equity-related Instruments of Large-cap companies. The risk grade is below average whereas the return grade is high. The fund has a well-diversified portfolio of 60 holdings. The top 10 holdings consist of 47.44%. It has invested in large-cap growth companies with 9.53% of exposure to mid-cap companies. The fund has a lower risk (measured by standard deviation) than the category average. ProsConsThe fund has captured the market well when the market was falling and when the market was rising. The fund is less risky when compared to other equity funds.The fund has low 5-Yr annualized returns. 3. Kotak Bluechip Fund Direct-Growth - Large cap mutual funds Fund analysis: The fund is a consistent performer and has been rated 4 stars by Morningstar. The risk grade is average, and the return grade is high. The fund has a beta of 0.95 indicating a balanced approach by the fund manager to aggressive and conservative stocks. Along with investing in large-cap companies, the fund has exposure to mid-cap (11.48%) & small-cap (0.61%) companies. The fund has low risk (measured by standard deviation) than the category average. ProsConsThe fund is less risky when compared to other equity funds. The fund captured the market well when the market was falling and when the market was rising.Not applicable 4. UTI Master Share Growth Option Direct - Large cap mutual funds Fund analysis: The fund’s objective is to generate long-term capital appreciation by investing predominantly in securities of large-cap companies. The risk grade is below average, and the return grade is high. The fund flows blend style of investing which indicates that the fund is holding both value and growth stock in the portfolio. The fund has good assets under the management of Rs. 9,237.7 crore, which shows the reliability of investors. The fund has a lower risk (measured by standard deviation) than the category average. ProsConsThe fund is giving constant returns over the long term. The fund has good assets under management.Fund follows the benchmark closely. 5. Mahindra Manulife Large Cap Pragati Yojana Direct-Growth - Large cap mutual funds Fund analysis: The fund is one of the top-performing funds in its category. It has outperformed the category average over the long-term period. The fund is rated 5-star by Morningstar. The risk grade is below average, and the return grade is high. The fund flows blend style of investing which indicates that the fund is holding both value and growth stock in the portfolio. The fund has good assets under the management of Rs. 9,237.7 crore, which shows the reliability of investors. The fund has a lower risk (measured by standard deviation) than the category average. ProsConsThe fund is less risky when compared to other equity funds. Major holding is in Bluechip companies.Low assets under management. 6. Baroda BNP Paribas Large Cap Fund Direct Plan-Growth Option - Large cap mutual funds Fund analysis: The fund’s objective is to generate long-term capital growth from a diversified and actively managed portfolio of equity and equity-related securities by predominantly investing in large market capitalization companies. The risk grade is low, and the return grade is high. The fund has a low beta of 0.86 indicating that the movement of the fund is very less relative to the market movement. The fund has invested 98.54% in large-cap companies and the rest is in mid-cap & small-cap companies. The fund has invested across sectors. ProsConsThe fund is less risky when compared to its category. The fund has a well-diversified portfolio.Fund has underperformed the benchmark. 7. ICICI Prudential Bluechip Fund Direct Plan-Growth - Large cap mutual funds Fund analysis: The fund’s objective is to generate long-term capital appreciation and income distribution to investors from a portfolio that is predominantly invested in equity and equity-related securities of large-cap companies. The risk grade is average, and the return grade is high. The fund has a well-diversified portfolio of 74 holdings spread across sectors except for real estate. The portfolio has both value and growth stocks in its portfolio. The fund has a lower risk (measured by standard deviation) than the category average. ProsConsThe fund invests in both value & growth stocks. Fund has outperformed the benchmark & the category with a good margin.Fund was not able to capture the market well when it was rising. 8. SBI Bluechip Fund Direct-Growth - Large cap mutual funds Fund analysis: The fund’s objective is to provide investors with opportunities for long-term growth in capital through active management of investments in a diversified basket of large-cap equity stocks (as specified by SEBI/AMFI from time to time). The risk grade is above average, and the return grade is high. The fund has a beta of 1.00 indicating fund movement is very much dependent on the market movement. The fund is rated 3-star by Morningstar. The fund has a relatively high risk (measured by standard deviation) than the category average ProsConsThe fund has a well-diversified portfolio. The fund invests in both value & growth stocks.Fund was not able to capture the market well when it was falling. 9. Mirae Asset Large Cap Fund Direct Plan-Growth - Large cap mutual funds Fund analysis: The fund has outperformed the benchmark and the category marginally over the long-term period. The fund is rated 4-star by Morningstar. The risk grade is average, and the return grade is high. The fund follows a blended style of investing, which means it has both value and growth stocks in its portfolio. The fund has a lower risk (measured by standard deviation) than the category average. ProsConsThe fund is equally volatile with its category average. The fund is a consistent compounder.Very high assets under management. 10. Invesco India Large Cap Fund Direct Plan-Growth - Large cap mutual funds Fund analysis: The fund has a balanced portfolio of 40 stocks, investing in value and growth stocks across market capitalization with major holdings in large-cap (93.50%) companies and the rest in mid-cap & small-cap companies. The risk grade is average, and the return grade is high. The fund is rated 3-star by Morningstar and the fund has given satisfactory returns over the long term. The fund has low risk (measured by standard deviation) than the category average. ProsConsThe fund was not able to capture the market well when it was rising.Fund was not able to capture the market well when it was rising. Advantages of Investing in Large-Cap Funds 1. Stable investment option Large-cap funds invest in top companies that are financially sound and have an excellent track record of performing well in the markets. They have solid business plans, and their revenue is consistent. The chances of the funds of these companies getting affected by small market fluctuations are low. These companies also give their investors dividends which help them create wealth.    2. Investors can make informed decisions Large-cap funds invest in blue-chip companies. These companies are well-established and have been active in the market for a long time. So, investors can check their past performance and make wise investment decisions.    3. Liquidity Large-cap funds offer high liquidity, which makes it easier for investors to withdraw the investment amount during adverse market conditions without having to incur a major loss.    Disadvantages of Investing in Large-Cap Funds 1. Management fees Large-cap funds invest in top companies in every sector, and the fund management fees are usually high compared to other funds. The exit load of certain plans is 1%, which investors have to pay if they withdraw the investment within the minimum holding period.    2. Returns    Large-cap funds may not give returns as high as mid-cap or small-cap funds. This is because the top companies already hold a huge chunk of shares, and their gains may be in small increments.    Who should invest in large-cap mutual funds? Large-cap mutual funds are most suitable for investors who don’t want to take much risk and are happy with stable returns. Large-cap funds are ideal if investors want to invest for more than 5 years and are expecting average returns. Newcomers can opt for large-cap funds because it has the potential to manage fluctuations in the market and also offers better returns than bank deposits on most occasions.     Things to consider before investing in the best large-cap funds Understand the risk and returns of the ratio of the large-cap funds    Average returns compared to small-cap and mid-cap funds    High expense ratio- Management fees are on the higher side    This fund is suitable for long-term investors    Income gained from the mutual fund is taxable    How to choose the best large-cap mutual funds? Consider your financial goal and assess if investing in large-cap mutual funds can help you reach your goal. If you are planning to invest in the long-term, which is between 5 to 15 years, and you are risk averse, you could consider investing in large-cap funds. Investors who have short-term goals and expect higher returns may not be interested in investing in large-cap funds. Select a fund with a lower expense ratio, as large-cap funds usually charge higher management fees than others.     FAQs What are large-cap funds? Large-cap funds invest in the best companies in every sector that are well-established and have a great track record. Large-cap funds invest a large portion of the corpus in blue-chip companies. Which large-cap fund is the best? Canara Robeco Bluechip Equity Fund Direct Plan-Growth IDBI India Top 100 Equity Fund Direct-Growth Kotak Bluechip Fund Direct-Growth UTI Master Share – Growth Option Direct Mahindra Manulife Large-Cap Pragati Yojana Direct-Growth Baroda BNP Paribas Large-Cap Fund Direct Plan – Growth Option ICICI Prudential Bluechip Fund Direct Plan-Growth SBI Bluechip Fund Direct-Growth Mirae Asset Large-Cap Fund Direct Plan-Growth Invesco India Large-Cap Fund Direct Plan-Growth Is large-cap a good investment? Large-cap funds invest most of the funds in well-established companies with a great track record, making investing in these funds less risky. These funds also give stable returns over the long term. Investors looking to invest in the long-term with minimal risk prefer large-cap funds over other funds. What are the benefits of large-cap funds? Stable investment option Investors can make informed decisions because of the excellent track record of the funds Liquidity Low risk compared to mid-cap and small-cap funds Which is the best-performing large-cap mutual fund in the last 10 years?  Ans. Data shows that the Nippon India Large Cap Fund, Kotak Emerging Equity Fund, and Nippon India Small Cap Fund have provided the highest returns in the respective large--, mid-, and small-cap categories during the last 10 years.  Is large-cap fund good for the long term?  Ans. With the top large-cap funds, you can rest easy knowing that your money is going into businesses with a proven track record of success over the medium to long term. These funds tend to carry less risk than small-cap and mid-cap funds, making them an excellent choice for risk-averse investors.  Which type of MF gives the highest return?  Ans. Growing SBI Small Cap Fund. As of August 16th, 2021, the SBI small-cap fund has an AUM of INR 9,620.21 crore, an expense ratio of 0.84%, and a Net Asset Value (NAV) of INR 102.68. The fund has a very high level of risk; hence the minimum SIP is INR 500.  Conclusion: For any investor who is looking to take equity exposure with low risk, then large-cap mutual funds are the right investment option. One could expect stable returns from these funds. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT 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

Tata Digital India Fund is an equity-based fund offered by Tata Mutual Fund. Read on to know more about the fund, its growth, and why you should invest in it! Click here to Invest in Tata Mutual Funds Investment objective: TATA Digital India Fund's investment objective is to seek long-term capital appreciation by investing at least 80% of its net assets in equity and equity-related instruments of the companies in the Information Technology Sector in India. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The Scheme does not assure or guarantee any returns AUM₹ 5583 CrNAV₹ 35.83Launch Date28-December-2015Min SIP Amount₹ 150Expense Ratio0.35%BenchmarkS&P BSE ITNote: Report as of 3rd June 2022.Source: Value research online Performance: Trailing Returns %FundBenchmarkCategory3 Months-10.76-9.83-10.866 Months-15.24-13.31-15.611 Year17.4310.6413.873 Years Annualized30.2323.9029.895 Years Annualized30.0524.2627.22Note: Report as of 3rd June 2022. Source: Morningstar Riskometer: Fund Review: Market CapFund %Large Cap86.37Mid Cap12.28Small-Cap1.35Note: Report as of 30th April 2022.Source: Morningstar Top 10 HoldingsNameWeightage %Infosys Ltd23.92Tata Consultancy Services Ltd9.68HCL Technologies Ltd6.81Tech Mahindra Ltd6.57Bharti Airtel6.01Larsen & Toubro Infotech Ltd4.33Persistent Systems Ltd4.28Mphasis Ltd4.19Wipro Ltd3.37Coforge Ltd3.09 Note: Report as of 30th April 2022. Source: Morningstar Sector AllocationWeightage %Basic Materials-Consumer Cyclical1.10Financial Services-Real Estate-Communication Services10.00Energy-Industrials3.98Technology84.78Consumer Defensive0.13Healthcare-Utilities-Note: Report as of 30th April 2022. Source: Morningstar Fund profile: The categorization of the stocks in this fund is based on information technology majorly. The fund largely follows a growth-oriented style of investing and invests across market capitalizations – around 86.37% in large-cap, 12.28% in mid-cap, and 1.35% in small-cap with 6.64%. This fund is for investors with advanced knowledge of macro trends who prefers to take selective bets for higher returns compared to other equity funds. ProsConsHigh returns compared to other equity funds. Low Expense RatioChances of facing moderate to high losses.Exit Load 0.25% before 30 Days How much would you have made with SIP? Monthly SIP AmountTotal InvestmentCurrent ValuationNet ProfitCumulative Returns₨ 5000/-₨ 3,85,000/-₨ 10,00,464/-₨ 6,15,464/-435.39%Note: SIP Start Date – 28/12/2015, SIP End Date – 30/04/2022. Past performance does not guarantee future returns.Source: Morningstar About the fund managers Meeta Shetty since Nov-2018. She is a CFA Charter holder. She joined Tata Asset Management Ltd. in March 2017 as Research Analyst, tracking the IT, Pharma, and Telecom sector. Venkat Samala since May-2019. After completing his MBA, he joined Tata Asset Management Ltd as a Research analyst and worked up to be the fund manager. He has more than 7 years of industry experience. Disclaimer The data in this presentation are meant for general reading purposes only and are not meant to serve as a professional guide/investment advice for the readers.This presentation has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable.Whilst no action has been suggested or offered based upon the information provided herein, due care has been taken to endeavor that the facts are accurate and reasonable as of date. The information placed on the presentation is for informational purposes only and does not constitute an offer to sell or buy a security.The Company reserves the right to make modifications and alterations to the content available on the presentation. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investment. Investment in the securities market is subject to market risks, read all the related documents carefully before investing. The valuation of securities may increase or decrease depending on the factors affecting the securities market. EduFund and the EduFund App are the brand and product of Helena Edtech Private Limited “An affiliate of the Company, i.e., Samyama Advisors Private Limited, is registered with the Securities and Exchange Board of India (SEBI) as an investment adviser under the SEBI (Investment Advisers) Regulations, 2013 bearing the registration number [INA000015321]. Samyama Advisors Private Limited may provide investment advice to the clients through the Company's platform.” Registered Address: 30, Omkar House, Near Swastik Char Rasta, Navrangpura, Ahmedabad Gujarat, India – 380009.Transaction Platform Partner: BSE Star MF (with Member code-51573). CIN No: U67100GJ2020PTC112589. RIA Number: INA000015321 GST No: 24AAFCH2122L1ZU© EduFund | All rights reserved | 2022 Last Updated – May 19, 2022 FAQs Is Tata Digital India Fund good? TATA Digital India Fund has AUM is ₹5583 Cr and a NAV of ₹35.83. It is managed by one of the oldest and most trusted AMCs in India. Based on your financial goals, you can consider it as an investment. How to invest in Tata Digital India Fund? You can invest in TATA Digital India Fund via the EduFund. Just download the App and place a lumpsum or SIP order to get started. EduFund is a SEBI-registered app and your investments are protected. You can view your order status, and pause or cancel the SIP at your will. Is it safe to invest in Tata Digital mutual fund? Tata Digital mutual fund is listed as a high-risk investment. Which digital fund is best? Tata Digital India Fund is considered one of the best digital funds in India. What is the Tata Digital India Fund?   The Tata Digital India Fund is an investment fund managed by Tata Asset Management Limited. Its objective is to generate long-term capital appreciation by investing in equity and equity-related securities of companies that benefit from the growth of the digital economy in India.   Who can invest in the Tata Digital India Fund? The Tata Digital India Fund is open to both individual and institutional investors who wish to participate in the potential growth of digitalization in India. Investors can consult with financial advisors or directly approach Tata Asset Management for more details on the investment process.  What are the benefits of investing in the Tata Digital India Fund?    Investing in the Tata Digital India Fund provides exposure to companies at the forefront of India's digital transformation. It provides the potential for capital appreciation as digital technologies continue to reshape various industries. Additionally, the fund is managed by experienced professionals who actively monitor and adjust the portfolio based on market trends.   How can I invest in the Tata Digital India Fund?   To invest in the Tata Digital India Fund, you can visit the official website of Tata Asset Management or contact their customer service. They provide various investment options such as lump sum investment and systematic investment plans (SIP) to suit your investment preferences.  

What is Geographical diversification, and why is it important?  Geographical diversification is assigning money to a diverse range of investments to minimize risk. It's akin to not placing eggs in one basket in terms of money.   Purchasing securities from numerous locations is called geographical diversification. Like many advisors may have advised you against keeping all your money in one stock, similarly, you don’t want all your money in one single country or region. Relying on one single means that the stock's failure would be devastating to your portfolio.  Geographic diversification, like general diversification, is based on the idea that stock markets in different regions aren't always highly associated.   For example, suppose the stock markets in advanced economies are decreasing due to a recession. In that case, an investor may transfer a portion of his or her holdings to emerging economies with greater growth rates, like China, Brazil, India, Russia, and others. This strategy restores balance to your portfolio. The pros and cons of global diversification Expanding a portfolio across several geographic locations can help investors adjust for the fluctuations of a particular financial region, lowering risk over time compared to less diversified portfolios.   Investing in international markets has never been easier, thanks to exchanging traded funds and mutual funds.  Diversifying away from advanced economies has its compensations. Many enterprises in sophisticated markets offer comparable products and services, resulting in fierce competition. On the other hand, developing markets may be less competitive and hence have more room for expansion.  The refute is that the whole world's marketplace is already interconnected, so dispersing your money across different areas no longer provides the same level of diversification.   Compared to industrialized countries, faster-growing economies may face higher political risk, currency fluctuations, and general market risk.  Exchange rates, for instance, are always changing and can work against you. If the rupee declines, an investment in India, for example, could lose value in dollar terms (This means it takes more rupees to buy a dollar).   On the other hand, investing in different currencies is another strategy to diversify and reduce risk.  Over the previous ten years, India's share market has generated remarkable gains. It is one of the world's fastest-growing stock markets, outpacing even the S&P 500. For instance, from August 08’ to August 18, the S&P 500 Index increased by 142%, whereas the BSE SENSEX climbed by 188%.  Despite greater return, the SENSEX shows high volatility. Volatility means how risky a particular investment is for the average investor. The risk of the investment is, the greater the volatility the more price movements there are.   The standard deviation of the return is one measure of volatility. Compared to the S&P 500, the SENSEX has more spells of higher volatility.  Minimizing volatility when designing a portfolio can result in a more profitable portfolio. This is the basic argument of the Modern Portfolio Theory, which states that an investor should opt to maximize return for a given level of risk rather than taking a greater risk that would not provide additional gains.  In general, geographical diversification promotes more stable investment returns while lowering the depth and duration of your portfolio's drawdowns compared to other regional markets.   Given the current state of world geopolitics, which could lead to more diverse outcomes in country investment returns and relatively close to nil interest rates globally, resulting in lower asset yields in the future, geographical diversification is important.   In fact, geographical diversification of your investment portfolio may be the best chance of successfully conserving and growing your wealth for the future. FAQs What are the benefits of geographical diversification? Geographical diversification offers numerous benefits that can enhance your investment strategy. By investing in different geographic regions, you can minimize risks and potentially improve returns. It allows you to tap into markets with greater growth potential, like emerging economies such as India and China, which may offer unique investment opportunities. Additionally, geographical diversification helps mitigate the impact of localized economic downturns, political instability, and other region-specific risks. How can I effectively achieve geographical diversification? To achieve geographical diversification, you can employ various investment strategies. One approach is to invest in mutual funds or exchange-traded funds (ETFs) that focus on specific regions or global markets. These funds typically consist of a diversified portfolio of securities from different countries, offering exposure to multiple regions in a single investment. Another option is to directly invest in foreign stocks through international brokerage accounts. This allows you to handpick individual stocks from different countries based on your research and risk tolerance. Regardless of your chosen method, it is crucial to thoroughly assess the investment options, understands the regulations and taxation aspects of each region, and consider seeking advice from financial professionals to ensure effective diversification and risk management. What are the potential risks associated with geographical diversification? While geographical diversification offers various benefits, it's important to be aware of the potential risks involved. One risk is currency fluctuations, which can impact the value of your investments when dealing with foreign markets. Changes in exchange rates can either amplify or diminish returns. Additionally, investing in regions with unstable political systems may increase the risk of unexpected policy changes or social unrest, which can affect market stability. It's crucial to conduct thorough research and stay informed about the specific risks associated with the regions you intend to invest in. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Exchange-traded funds and stocks have some similarities and differences. ETFs are traded like stocks on the exchange but are not quite similar to stocks. Thus, understanding spreads and volumes becomes a top priority for us.  Understanding spreads  Spread, often called the bid/ask spread, is the most fundamental thing to know while operating in the stock market.   Stock markets can be seen as 'meeting sites' for investors, with each investor looking to get the most out of a transaction. At any given time in the market, there are two prices: the sale price, i.e., 'ask,' and the other to buy, i.e., 'bid.'    Buyers of ETFs aim to pay a fair price and, if possible, a discount on the market price of the core securities in the ETF, while sellers want to get the highest price for their units when they sell on the exchange.   In an open market, traders try to broker the best deal possible. This is the reason why spreads exist. A transaction occurs when both parties agree on a price and exchange ETF units.   Let's understand with an example if a trader wants to sell some ABC corporation shares in the open market and some traders want to buy the same ABC corporation shares.  The price is $25.75, whereas the bid is only $25. Thus, the absolute difference in these prices is the spread. Here the spread is $0.75. The prices should converge at some point for the trade to get executed.   If a trader wants to purchase at the moment, he has to pay the asking price, in this case, $25.75.   Trade cost increases if the spread is wide. The bid/ask price plays a pivotal role in ETF pricing as these are traded in the same fashion as our ABC corporation stock.   Bid/ask spreads are generally tighter when an ETF is hot and trades in large volumes. However, larger spreads may result if the ETF is sparsely traded or the fund's underlying securities are highly illiquid. Overall, the smaller the cost of trading, the tighter the bid/ask spread.  Although the bid and ask prices of an ETF will roughly resemble the value of the securities held by the ETF, bid-ask spreads might vary based on a variety of circumstances, including  Spreads on underlying assets: The underlying asset class's liquidity determines the ETF's liquidity. As a result, if the underlying equities are very liquid, it implies that the ETF will be similarly liquid, with a minimal spread.  Cost of accumulating securities and trading the ETF: The cost of putting together and trading the ETF's basket of securities may impact the spread. For example, there will be additional charges to convert local currency to the underlying currencies if the ETF invests in overseas securities. Another scenario could be regulatory charges and taxes for overseas assets in compliance with local trading regulations.  Trading volumes: We will understand this in detail below.  Involved market risks: During higher market risk or volatility periods, bid-ask spreads can also inflate.  Understanding volume and market impact  The bid/ask spread is not the only factor to be cautious about while buying ETFs. Trading volumes also play a major role in determining the ETF's spread and overall liquidity.   The quantity of shares traded on any particular day is called volume. It is preferable to have a bigger volume. If ABC Corporation trades 20 million shares daily on average, it will be better to trade than if some corporation only trades 500 units daily.   However, keep in mind that spreads on both may be tight, leading investors to believe that both assets are similarly liquid. Thus, treading cautiously is the key.  The number of stocks offered on the "bid" or "ask" is usually small, say ten shares, sometimes more, but seldom a large number like say 50000; if such is the case, then the ask itself will drive up the bid.   Logically, the more the demand, the more the price! This very phenomenon is called market impact.  Since ETFs are similar to stocks, they are affected by volume and spreads. However, the market impact on an ETF is minimal due to the very nature of the ETF.   If there is a great demand, then the AP can create more ETF shares with the help of underlying securities to cool off demand and the rising market price compared to the underlying NAV. Thus, an ETF is not affected by market impact with the severity of a stock. FAQs What is the bid/ask spread? The bid/ask spread refers to the difference between the highest price at which a buyer is willing to purchase an asset, called, the bid price, and the lowest price at which a seller is willing to sell it, known as the asking price. In financial markets, including the context of ETFs (Exchange-Traded Funds), the bid/ask spread represents the gap between the maximum price a buyer is willing to pay for an ETF and the minimum price a seller is willing to accept. It is essentially the cost of executing a trade and serves as a measure of liquidity and market efficiency. What is the relationship between ETF liquidity and underlying asset liquidity? An ETF's liquidity has a close association with the liquidity of its underlying asset class. The liquidity of an ETF depends on the level of ease with which its underlying assets can be sold or purchased in the market. For instance, if an ETF tracks a highly liquid asset class as large-cap stocks trading actively on major exchanges, it is more likely to exhibit higher liquidity in comparison to an ETF tracking a less liquid asset class, such as small-cap stocks. The underlying assets' liquidity directly impacts the ETF's liquidity, determining the ease and availability of executing trades in the underlying securities, which in turn affects the bid/ask spreads and also the overall readability of the ETF in the market. How does the trading volume affect bid/ask spreads? The impact of trading volume on bid/ask spreads is significant. In general, bid/ask spreads tend to be narrower and more favorable for traders when an ETF experiences high trading volumes and is considered "hot" in the market. This is because increased trading activity implies higher liquidity, as there are more buyers and sellers actively participating in the market, resulting in tighter spreads. In lieu, if an ETF lacks significant trading volume, or is thinly traded, bid/ask spreads may widen, making it more costly to execute trades. Additionally, bid/ask spreads can also be influenced by the liquidity of the underlying securities held by the ETF. If the underlying assets are illiquid or have low trading volume, it can contribute to wider spreads. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Parenting is one of the most difficult jobs in the world. Gone are the days when parents couldn’t think beyond traditional career paths. Today, a kid has dreams of becoming an astronaut, content creator, or musician.   These goals keep evolving when your child becomes a teenager. As a parent, you should plan for your kid’s educational expenses. Considering their ever-evolving aspirations and rising costs of education, it is crucial to ensure that your child opts for the right career.   You can’t afford to plan your child’s education the same way your parents did. This is because society and the economy change from time to time. Parents spending on a single child’s higher education has gone up from INR 35000 in 2010 to INR 95000 in 2022. Note that education planning can change your child’s life. Ways in which proper education planning will provide your child with a rewarding career 1. Allows you to fulfill your child’s dream   It is imperative to save for your child’s education. In the future, the cost of education will be higher. There is no need to worry about your child’s studies if you have an education plan in place. An education plan offers your kid financial flexibility. They can choose from various courses based on their preferences and skills.   2. Tackle unforeseen circumstances with ease   You will be able to tackle unforeseen challenges with ease when you plan your child’s education. Education planning policies usually offer higher education expenses along with college fees in case of unforeseen situations. For instance, if any of the parents die, proper education planning will help your child to pursue their dreams.   3. Helps secure your child’s future  While you’ll always be there for your child, it is crucial to meet the financial objectives. With the rising cost of education, it is imperative to plan at the earliest. Moreover, in case of mishaps, your family may struggle to fulfill your child’s academic objectives. Nowadays, education plans for your child come with goal protection features.   4. Leverage the power of compounding   Education planning will make you familiar with a myriad of saving methods. When you start investing in your child’s education plan, you will leverage the power of compounding. You can keep a lumpsum amount of money secured for your child’s education in the future. Moreover, these funds will be easily accessible to your child when they want to pursue their dreams.     5. Allows you to plan other expenses   With an education plan, you’ll have a smooth financial path. In other words, you don’t have to sacrifice the goals of your child for the sake of other purposes. Furthermore, if you don’t plan for your children’s education costs separately, you may have to use other essential funds reserved for retirement. Lead a stress-free life by planning for your child’s education.  Source: pixabay 6. Allows you to tackle inflation  Education inflation is a rising concern for modern-day parents. By properly planning for your child’s education you can tackle inflation. It is essential to save and let your money grow to fight the rising cost of education.   By planning for your child’s education, you can effectively guard your savings. For instance, when the time comes to pay for your child’s education or buy course-related materials, you don’t have to pay from your savings.   7. Get access to withdraw money partially   With a child education plan, you can withdraw money partially. There are many child education policies that will let you withdraw money to pay for your kid’s education. For instance, if your child wants to attend acting classes or guitar lessons, you can withdraw money to pay for these expenses.   8. Allows your child to develop good financial habits   One of the key highlights of an education plan is that it develops good financial habits in your child. You can simplify and structure your kid’s individual financial objectives. Having an education plan for your child serves various purposes. For instance, it allows you to save properly. On the other hand, it lets your child know how to prioritize their expenses properly. They can value your contribution to their life effectively when you have a child education plan in place.   9. Direct your child in the right direction with education planning   With proper education planning, your child can opt for the right stream. You can let your children decide what they want to study or become in their life. The right education plan can direct your child in the right way.    Education planning is a crucial aspect of your child’s life. With proper planning for your child’s education, you can align your income and expenses properly with your child’s educational aspirations. So, choose the right education plan to support your child’s career. FAQs Why is child education planning important?   The goals of children keep evolving when they become teenagers. As a parent, you should plan for your kid’s educational expenses. Considering their ever-evolving aspirations and rising costs of education, it is crucial to ensure that your child opts for the right career.    You can’t afford to plan your child’s education the same way your parents did. This is because society and the economy change from time to time.   What are the four purposes of planning?   Allows you to fulfil your child’s dream    Helps secure your child’s future    Leverage the power of compounding    Allows you to plan other expenses     What is the importance of planning?   With an education plan, you’ll have a smooth financial path. In other words, you don’t have to sacrifice the goals of your child for the sake of other purposes.   Furthermore, if you don’t plan for your children’s education costs separately, you may have to use other essential funds reserved for retirement. Lead a stress-free life by planning for your child’s education.   What is child education planning?   It is imperative to save for your child’s education. In the future, the cost of education will be higher. There is no need to worry about your child’s studies if you have an education plan in place.   An education plan offers your kid financial flexibility. They can choose from various courses based on their preferences and skills.   Consult an expert advisor to get the right plan TALK TO AN EXPERT

People do not accept a salesperson's first price as the actual value of veggies purchased from a roadside cart. Instead, most people try to come up with a more objective appraisal of the vegetables' true worth.  It can be challenging to haggle with some merchants. Fortunately, ETFs make it simple by calculating and disseminating information to the public daily. Net asset value (NAV) is the word for this "value," and it's one of the essential data elements for ETFs and mutual funds.  The value of a fund's assets subtracted from the value of its liabilities is known as net asset value (NAV). The term "net asset value" is frequently used in the context of mutual funds and ETFs, and it refers to the value of the assets owned in the fund.   The Securities and Exchange Commission (SEC) requires mutual funds and ETFs to compute their NAV at least once every business day.  net asset value = value of assets - value of liabilities  The NAV is the value of a fund's holdings in cash, shares, bonds, financial derivatives, and other securities, less any liabilities, fund expenses, and fees.  Generally, the NAV of an ETF or a mutual fund, the NAV is calculated per share or unit.  net asset value = value of assets - value of liabilities / Total shares outstanding  Let's take an example,  An investment firm that runs an ETF wants to determine how much a single share's net asset value is worth. The following information is given to the investment firm on its ETF:  Value of securities in the portfolio: $90 million (based on end-of-day closing prices)  Cash and cash equivalents of $25 million  Accrued income for the day of $30 million  Short-term liabilities of $0.5 million  Long-term liabilities of $15 million  The accrued expense for the day of $7 million  30 million shares outstanding  net asset value = 90000000 + 25000000 + 30000000 - 500000 - 15000000 - 7000000 / 30000000 = $1.3983 Thus, the NAV of the fund is $ 1.3983.   To calculate a daily NAV, the fund selects a time to value its assets each day. The NAV of a standard equities ETF is determined (or "struck") after all of the markets that the ETF's index tracks have closed.  For example, the NAV of an ETF following US equities is taken shortly after the US market closes at 4:00 p.m. ET. The closing stock price of each fund's assets must be recorded as a representation of its current value.   The worth of the fund's whole portfolio is calculated by adding these prices. When the value of the fund's securities rises, the fund's NAV also rises. The NAV of the fund decreases as the value of the securities in the fund decreases.  The NAV of a fund is essentially a representation of the fair market value of a single fund share. It gives investors a benchmark against judging any bids to buy or sell shares in the fund.  What is NAV?  The intraday or indicative NAV (or "iNAV") differs from an ETF's official, once-a-day NAV. It is a gauge of an ETF's intraday worth, with the pricing used for the NAV calculation revised many times per minute to reflect real-time market fluctuations.  Third-party corporations frequently calculate iNAVs for their clients. When trying to trade an ETF, iNAVs can be a helpful indicator of worth, albeit they're not fail-safe and, like NAVs, may not reflect genuine value if prices grow old.  What isn't Net asset value able to tell?  While a mutual fund's net asset value (NAV) is an essential indicator of its value, it doesn't tell you everything you need to know about a fund's performance, value, or possible place in your portfolio.  The anticipated capital gains exposure that has occasionally accumulated within an older ETF or index fund is not calculated by net asset value. It also cannot know whether the underlying holdings' intrinsic worth is reasonable.  During the dot-com boom, for example, one could have purchased a fund at its net asset value while still paying high P/E ratios for businesses that were doomed to fail.  While NAV is a crucial part of understanding ETF trading for investors, it is not a substitute for other information regarding the mutual fund. Before investing, you should research an ETF's brand, profitability, aims, and long-term value to see if it is a better fit for your portfolio. FAQs How is the net asset value of a mutual fund calculated?   net asset value = value of assets – value of liabilities    The NAV is the value of a fund’s holdings in cash, shares, bonds, financial derivatives, and other securities, less any liabilities, fund expenses, and fees.    Generally, the NAV of an ETF or a mutual fund, the NAV is calculated per share or unit.   Why is NAV important to investors?   The worth of the fund’s whole portfolio is calculated by adding these prices. When the value of the fund’s securities rises, the fund’s NAV also rises. The NAV of the fund decreases as the value of the securities in the fund decreases.    The NAV of a fund is essentially a representation of the fair market value of a single fund share. It gives investors a benchmark against judging any bids to buy or sell shares in the fund.    Does NAV change daily?   The NAV per unit of all mutual fund schemes must be updated on AMFII’s website and the mutual fund’s website daily by 11 PM.   What is NAV in simple words?   The value of a fund’s assets subtracted from the value of its liabilities is known as net asset value (NAV). The term “net asset value” is frequently used in the context of mutual funds and ETFs, and it refers to the value of the assets owned in the fund.    TALK TO AN EXPERT

In a world where gender equality and women's empowerment are important goals, it is crucial to implement policies that uplift and support the girl child. One such initiative is the Ladli Lakshmi Yojana, a flagship program launched by the Government of India. This visionary scheme aims to transform the lives of girls by promoting education, healthcare, and financial security. In this blog, we will explore the Ladli Lakshmi Yojana in detail, highlighting its objectives, key features, and the significant impact it has had on the lives of countless girls nationwide. Ladli Lakshmi Yojana The Ladli Lakshmi Yojana is a comprehensive scheme introduced by the Government of India to support the education and welfare of the girl child. It was initially launched in Madhya Pradesh in 2007 and extended to other states nationwide. The scheme's primary objective is to ensure that every girl has access to quality education, healthcare, and financial security, fostering an environment where girls can thrive and fulfill their aspirations. Objectives of the Ladli Lakshmi Yojana Promoting girl-child education: The Ladli Lakshmi Yojana focuses on increasing the enrollment and retention of girls in schools. By providing financial assistance and incentives, the scheme aims to remove barriers to education and create an enabling environment for girls to pursue their studies.  Eradicating gender discrimination: The scheme aims to challenge and change societal mindsets perpetuating gender discrimination. By celebrating the birth of a girl child and treating her with equal dignity and respect, the Ladli Lakshmi Yojana aims to shift cultural norms and foster a more inclusive society.  Ensuring financial security: The scheme provides long-term financial security to girls, empowering them to lead independent and self-reliant lives. By creating a savings corpus and offering insurance coverage, the Ladli Lakshmi Yojana secures the girl child's future and equips her to face any financial challenges that may arise. Key Features and Benefits Birth grant: Under the Ladli Lakshmi Yojana, a cash grant is provided to families upon the birth of a girl child. This grant assists parents in meeting the initial expenses associated with the child's care and upbringing. Scholarships: The scheme offers scholarships to girls from economically weaker sections to support their education. This financial aid covers school fees, books, uniforms, and other related expenses. Financial security: To ensure the girl child's long-term financial security, the government deposits a fixed amount into a savings account, which the girl can access after she reaches a certain age. This promotes economic independence and empowers the girl to pursue her dreams. Insurance coverage: The Ladli Lakshmi Yojana provides insurance coverage for girls, ensuring that they receive financial support in case of critical illness, accident, or death. Awareness campaigns: The government organizes various awareness campaigns and workshops to disseminate information about the scheme, sensitize communities about the importance of the girl child, and address any existing prejudices and discriminatory practices. Impact on Society Since its inception, the Ladli Lakshmi Yojana has had a transformative impact on society at an individual and community level. Some notable impacts include: Increased educational opportunities: The scheme has resulted in a significant increase in the enrollment of girls in schools. By removing financial barriers and providing scholarships, more girls can access quality education, improving literacy rates and enhancing personal and professional growth opportunities. Empowerment and independence: Through financial inclusion and savings provisions, the Ladli Lakshmi Yojana has empowered girls to choose their education, career, and life goals. This increased agency has helped girls break free from traditional gender roles and become self-reliant, contributing to their well-being, families, and communities. The shift in cultural attitudes: The scheme's focus on changing societal mindsets and combating gender discrimination has yielded positive results. Families and communities are gradually recognizing the value and potential of the girl child, resulting in a shift away from practices such as female infanticide, child marriage, and gender-based discrimination. Economic impact: As girls empowered through the Ladli Lakshmi Yojana become educated, skilled, and financially independent, they contribute to the economic growth and development of their communities and the nation. By breaking the cycle of poverty, these empowered girls become catalysts for positive change, uplifting the socio-economic fabric of society. Conclusion The Ladli Lakshmi Yojana is a remarkable initiative striving to empower and uplift the girl child in India. By focusing on education, healthcare, and financial security, the scheme has transformed the lives of countless girls, providing them with opportunities to realize their full potential. As we continue to support and expand such programs, we move closer to creating a society that champions gender equality, empowers girls, and ensures a brighter future for all. The Ladli Lakshmi Yojana serves as a beacon of hope, reminding us that investing in the girl child is the right thing to do and a vital step towards building a more inclusive and prosperous nation.

Introduction to Ponmagan Podhuvaippu Nidhi Scheme (PPNS) In a concerted effort to strengthen the lifestyles and secure the future of Indian children, the government of India has taken several proactive steps. One such initiative that garnered immense popularity and success was the Sukanya Samriddhi Account, which witnessed over 10 lakh girls opening accounts under the scheme. Inspired by its triumph, the government responded to public demand and launched the Ponmagan Podhuvaippu Nidhi Scheme (PPNS).  Formerly known as the public provident fund scheme (PPF), PPNS is tailored to empower male children, allowing them to embark on a journey of financial security and growth. In this comprehensive guide, we delve into the details of the PPNS, exploring its features, benefits, and how to open an account. Let us embark on this journey together to understand the tremendous potential this scheme holds for securing the future of Indian children. Unveiling the Ponmagan Podhuvaippu Nidhi Scheme (PPNS)  The Ponmagan Podhuvaippu Nidhi Scheme, which has been adapted from the Public Provident Fund (PPF), marks a significant step forward in providing financial security and opportunities to male children in India. Unlike its predecessor, the PPNS does not impose any age restrictions, allowing children of all ages to open an account. This inclusionary approach emphasizes the government's dedication to fostering a culture of financial prudence and independence from an early age. How to open a Ponmagan Podhuvaippu Nidhi Scheme (PPNS) Account? Opening a PPNS account is a straightforward process that enables parents and children to take the first step toward building a secure future. Here are the key steps involved: Deposits: Deposits can be made in a lump sum or through 12 installments. While the initial account opening amount is just INR 100, the minimum annual deposit is INR 500, with a maximum limit of INR 1,50,000. Individual Account: The PPNS account is an individual account, and joint accounts are not permitted. Account Opening: Accounts can be opened using cash or cheques. In the case of cheques, the date of realization in the government account is considered the date of account opening. Nomination Facility: Nomination facilities are available during the account opening process and can also be added after the account is opened. Additionally, the account can be transferred between post offices. Multiple Accounts: A subscriber can open multiple accounts in the name of minors, subject to the maximum investment limit by aggregating balances across all accounts. Benefits and Features of the Ponmagan Podhuvaippu Nidhi Scheme (PPNS)  The PPNS offers several attractive features and benefits that make it a compelling savings avenue for the future of male children in India. Let's explore them in detail: Maturity Period and Extension: The scheme has a maturity period of 15 years, which can be extended for an additional 5 years within one year of maturity. This extension allows for further growth and accumulation of funds. Tax Benefits: Deposits made under the Ponmagan Podhuvaippu Nidhi Scheme qualify for deduction from taxable income under Section 80C of the Income Tax Act, providing significant tax benefits to the account holder. Tax-Free Interest: The interest earned on the scheme is entirely tax-free, enhancing the overall returns on investment. Withdrawal and Loan Facilities: Withdrawals are permitted from the 7th financial year onwards, ensuring the availability of funds when needed. The scheme also allows for availing loans against the accumulated amount from the 3rd financial year. Court Decree Protection: The scheme provides assurance by preventing any attachment of funds under a court decree order, safeguarding the interests of the account holder. Flexibility and Portability: The Ponmagan Podhuvaippu Nidhi Scheme offers flexibility in terms of opening accounts at various post offices. Account portability is also facilitated, allowing for seamless transfers between different locations. Regional Variations and Awareness The reception of the Ponmagan Podhuvaippu Nidhi Scheme has varied across different states in India, primarily due to disparities in awareness and understanding of such schemes. Some states have embraced the scheme wholeheartedly, recognizing its potential to secure the future of Indian boys. However, in other regions, additional efforts are required to disseminate information and educate the public about the benefits and significance of the PPNS. The Ponmagan Podhuvaippu Nidhi Scheme (PPNS) is a remarkable initiative by the government of India to empower male children and secure their financial future. By offering a flexible and tax-efficient savings option, the scheme encourages parents to proactively save for their children's long-term goals. With its attractive features such as tax benefits, tax-free interest, and loan facilities, the PPNS is set to revolutionize the way children in India save and plan for their future.  As more people recognize the advantages of the PPNS and its potential to provide financial stability, it is expected that the scheme will witness increased participation across the country. Through initiatives like the PPNS, the Indian government continues to demonstrate its commitment to empowering its citizens and securing a brighter future for the younger generation.

In a world driven by consumerism, it's easy to fall into the trap of overspending money and accumulating unnecessary extra debt. However, by making a few intentional changes in lifestyle, you can regain control of your finances thus, preparing yourself for a brighter future. We are presenting a comprehensive guide on how to embrace these changes, not only to save money but also to cultivate a more fulfilling and sustainable life. So, buckle up and embark on this transformative journey with us! Rethink Your Spending Habits The first step towards saving money begins with examining your spending habits. Take a moment to reflect on your purchases and ask yourself if they align with your long-term goals and values. Avoid impulse buying and opt for a more mindful approach. Differentiate between your wants and needs, and focus on fulfilling the latter. Create a Budget Budgeting is an essential tool for financial success. Start by tracking your income and expenses to gain a clear picture of where your money is going. Categorize your expenses and identify areas where you can cut back. Set realistic saving goals and allocate a portion of your income towards them. Remember, a well-planned budget is a roadmap to financial freedom. Cook and Eat at Home Eating out frequently can quickly drain your wallet. Embrace the art of cooking and prepare meals at home. Not only will you save money, but you'll also have control over the ingredients, making it easier to maintain a healthy diet. Explore new recipes, involve your family in meal planning, and make cooking a fun and rewarding experience.  INR 100 Crore Legacy for your Kids using SIP Read More Reduce Utility Consumption Conserving energy and water not only benefits the environment but also reduces your utility bills. Switch to energy-efficient appliances, turn off lights and unplug electronics when not in use, and fix any leaks in your home. Simple acts like taking shorter showers and using cold water for laundry can significantly impact your monthly expenses. Smart Lifestyle Choices for Saving Money Embrace a Minimalist Lifestyle Decluttering your living space can have a profound impact on your mental well-being and finances. Adopt a minimalist approach and declutter ruthlessly. Sell or donate items you no longer need and embrace the freedom that comes with owning fewer possessions. Avoid falling into the trap of mindless consumerism, and focus on experiences and relationships rather than material possessions. Ditch Costly Subscriptions Review your subscriptions and eliminate those you no longer use or find value in. Streaming services like Netflix, Hotstar, or Prime, gym memberships, and magazine subscriptions can add up quickly. Consider sharing accounts with family or friends to reduce costs, or explore free alternatives such as public libraries and online resources. Embrace Second-Hand Shopping Buying brand new doesn't always equate to quality or satisfaction. Embrace the world of thrift stores, consignment shops, and online marketplaces to find great deals on clothing, furniture, and other items. Not only will you save money, but you'll also contribute to reducing waste and supporting a more sustainable economy. Cut Transportation Costs Transportation expenses can put a dent in your budget. Consider carpooling, using public transportation, biking, or walking whenever possible. If you live in an urban area, you might even find that you can go car-free and rely on ride-sharing services or rentals for occasional needs. Embracing alternative modes of transportation not only saves money but also reduces your carbon footprint. Prioritise Free and Low-Cost Activities Entertainment doesn't have to be expensive. Explore the abundance of free or low-cost activities available in your community. Visit parks, organize picnics, join local clubs or organizations, attend free events and festivals, and utilize public amenities such as libraries and museums. By finding joy in these activities, you'll realize that happiness can't always be bought. Cultivate a DIY Mindset Learning new skills and tackling projects yourself can save you a significant amount of money. Whether it's fixing a leaky faucet, painting a room, or gardening, take the time to develop your DIY skills. Numerous online resources and tutorials are available to guide you through the process, empowering you to take charge of your surroundings and your budget. Saving money is not just about penny-pinching; it's a lifestyle choice that can lead to financial freedom and personal fulfillment. By embracing minimalism, cooking at home, cutting down on subscriptions, prioritizing saving, embracing second-hand shopping, reducing energy consumption, adopting DIY and upcycling, and cultivating a frugal mindset, you can transform your life and pave the way for a brighter future.  Remember, it's not about depriving yourself of joy, but rather finding happiness in the simple things and making intentional choices that align with your values and goals. So, start today and embark on a journey toward financial independence and a more fulfilling life.

Investing is an art, a game of numbers and strategy that has the power to shape our financial futures. But when it comes to investing, one size doesn't fit all. Every individual has unique goals, preferences, and risk tolerance which determine the type of investor they are.  Are you an adventurous risk-taker, or do you prefer a more cautious approach? Are you actively involved in managing your investments, or do you prefer a hands-off approach? By identifying your investing style, you can make more informed decisions and tailor your portfolio to suit your individual needs. What type of investor you are? 1. Risk-Averse Investor For some individuals, the thought of losing money is enough to keep them awake at night. They prioritize the preservation of capital over high returns. Risk-averse investors tend to choose low-risk investment options, such as government bonds, money market funds, and certificates of deposit (CDs). They give importance to stability and are more comfortable with predictable, albeit lower, returns. 2. Risk-Tolerant Investor On the other end of the spectrum, we have risk-tolerant investors. They are thrill-seekers, willing to take on higher levels of risk in pursuit of higher rewards. Risk-tolerant investors are often attracted to aggressive investment options, such as growth-oriented mutual funds, individual stocks, and alternative investments like real estate or commodities. They understand that with higher risk comes the potential for greater returns, but also the possibility of significant losses. 3. Active Investor Active investors are hands-on participants in the investment process. They actively research, analyze, and monitor their investments. They make frequent trades, seeking to take advantage of short-term market fluctuations. Active investors often enjoy the thrill of the chase and the potential for quick gains. They keep a close eye on market news, company earnings reports, and economic indicators to make informed decisions. Guide to Investing in US ETFs Read More 4. Passive Investor In contrast to active investors, passive investors prefer a more laid-back approach. They believe in the efficiency of the market and aim to match the overall market returns rather than trying to beat it. Passive investors typically invest in index funds or exchange-traded funds (ETFs) that track a specific market index, such as the S&P 500. They benefit from diversification and low fees, and they tend to have a long-term investment horizon. Note: Finding your investor type is not a one-time decision but a reflection of your evolving financial goals, circumstances, and risk appetite. It's essential to understand that your investor type can change over time as you gain more experience or undergo life changes. Moreover, a balanced approach to investing can often yield the best results. 5. Assessing Your Risk Tolerance Apart from determining your investment style, understanding your risk tolerance is crucial for successful investing. Risk tolerance refers to your ability to endure market volatility and the potential loss of capital. While aggressive investors are comfortable with higher levels of risk, conservative investors prefer lower-risk investments to protect their principal. It is important to strike a balance between your risk tolerance and investment objectives to ensure your investment strategy aligns with your financial goals. https://www.youtube.com/watch?v=tdwqQH0xkFw Introducing EduFund: Investing Made Easy for Parents Now that you have explored the various types of investors, it's important to mention EduFund, a platform designed to empower parents in their investment journey. Investing is not limited to individuals; it extends to families and their futures. As parents, we strive to provide the best opportunities for our children, including their education. EduFund understands the importance of investing in your child's future and empowers parents to become smart investors. EduFund offers a comprehensive solution that educates parents about the risks and benefits of investing. The platform provides valuable resources such as blogs, quizzes, and weekly insights to help parents deepen their understanding and make informed decisions. Whether you are a risk-seeking adventurer or a risk-averse cautious investor, EduFund caters to your unique needs. What sets EduFund apart is its commitment to empowering parents with knowledge and resources. Through the EduFund app, parents have access to a wealth of educational materials, including blogs, quizzes, and weekly insights. These resources help parents understand various investment concepts, debunk myths, and make informed decisions. One of the key advantages of EduFund is its emphasis on autonomy. Parents have full control over their investment decisions, allowing them to align their investments with their financial goals. However, EduFund also recognizes that investing can be daunting, especially for those new to the world of finance. That's why they provide expert guidance whenever needed. Parents can seek assistance from experienced professionals who can answer their questions and address their concerns. Investing in your child's education is an investment in their future success. EduFund helps you navigate the world of investments with confidence, ensuring that your child's educational aspirations are within reach. Join EduFund today and embark on a journey toward securing a bright future for your child. Understanding your investor type is crucial for achieving your financial goals. By reflecting on your risk tolerance and level of involvement, you can align your investment strategy with your unique preferences. Whether you identify as an adventurous risk seeker or a cautious capital preserver, EduFund is there to support you every step of the way, providing education, autonomy, and expert guidance. Begin your investment journey with confidence and empower your child's future through the power of EduFund.