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DSP Mutual Fund is one of the largest mutual fund houses operating in India. The fund house was established as a trust as per the rules of the Indian Trust Act, of 1882. DSP Asset Management Company (AMC) is registered under the Securities and Exchange Board of India (SEBI) (Mutual Funds) Regulations, 1996. The principal sponsors of this fund are DSP ADIKO Holdings Pvt. Ltd. and DSP HMK Holdings Pvt. Ltd. (formerly DSP BlackRock Investment Managers Pvt. Ltd). DSP ADIKO Holdings Pvt. Ltd. and DSP HMK Holdings Pvt. Ltd. has 54% and 34% holding in the company, respectively. Ms. Aditi Kothari Desai and Ms. Shuchi Kothari hold 6% shares each. The DSP Group has been in existence since the 1860s. It started its business with stockbroking. It is currently headed by Mr. Hemendra Kothari, a reputed investment banker with a real-time net worth of US$ 1.3 Billion. The founders of the group have been instrumental in professionalizing the Indian capital markets and money management businesses. A founding member of the DSP group played a prominent role in setting up the Bombay Stock Exchange (BSE).DSP mutual fund has forty (40) schemes. Besides 17 equity schemes, 3 hybrid schemes, 14 debt schemes, and 6 international funds of funds, it also offers 4 solutions. Most DSP mutual fund schemes have traditionally given inflation-beating returns in all market conditions.DSP AMC's net worth grew to INR 12,258.75 million (31 March 2020) from INR 11,062.92 million in the previous year. The company's income was INR 4,534.32 in the financial year 2019-20. Important Information About DSP Mutual Fund Fund NameDSP Mutual FundSetup Date16th December 1996Date of Incorporation13th May 1996Name of SponsorsDSP ADIKO Holdings Pvt. Ltd. and DSP HMK Holdings Pvt. Ltd. Trustee Company NameDSP Trustee Private LimitedNon-Executive ChairmanMr Hemendra KothariDirector, Sales and Marketing Ms Aditi Kothari DesaiIndependent DirectorsMr Dhananjay Mungale Mr S Ramadorai Mr S.S. Mundra Mr Uday KhannaPresidentMr. Pritesh MajmudarChief Operating OfficerMr. Ramamoorthy RajagopalCompliance OfficerMr Pritesh MajmudarRegistered Address of the AMCMafatlal Centre, 10th Floor, Nariman Point, Mumbai - 400 021Telephone Number+91 (22) 66578000/ 1800-208-4499 / 1800-200-4499 (Toll free) FAX Number +91 (22) 66578181Websitehttps://www.dspim.com/Emailservice@dspblackrock.comAuditorM/s. Deloitte Haskins & Sells LLP, Mumbai(Firm Registration No. 117366W/W-100018)Registrar and Transfer Agent Computer Age Management Services Ltd. Address: 7th Floor, Tower II, Rayala Towers, 158, Anna Salai, Chennai - 600002 Phone: 1800-3010-6767 / 1800-419-7676 Fax: 044-30407101 Email: enq_h@camsonline.com Website: www.camsonline.com Ten top-performing DSP Mutual Fund Schemes  DSP mutual fund's portfolio comprises high-quality stocks and debt instruments that promise to deliver inflation-beating returns to its investors. The following are the top-10 DSP mutual fund schemes that have delivered strong returns and are the ones with the most AuM (Asset Under Management). 1. DSP World Mining Fund (Category - Equity: International) The DSP World Mining Fund invests in foreign companies' shares. This open-ended fund has a NAV of 15.0711 (Regular Growth) (as of 19th April 2021) and is one of the top-performing funds in the 'Equity: International' category. The fund was launched on 29th December 2009 and has given trailing returns of 86.29% in one year (as of 16th April 2021). The fund considers the Euromoney Global Mining Constrained Weights Net Total Return Index as its benchmark.   Key Information Minimum InvestmentINR 500Minimum Additional InvestmentINR 500Minimum SIP InvestmentINR 500Minimum Withdrawal-Exit LoadNilReturn Since Inception (29th December 2009):2.18% (as of 28th February 2021)Assets2.18% (as of 28th February, 2021)Expense RatioINR 113 Crore (as of 31st March 2021) 2. DSP Natural Resources and New Energy Fund (Category - Equity: Thematic - Energy) The DSP Natural Resources and New Energy Fund invests in prominent energy and natural resources companies. This open-ended fund has a NAV of 44.7100 (Regular Growth) (as of 19th April 2021) and is one of the top-performing funds in the 'Equity: Thematic - Energy' category. The fund was launched on 25th April 2008 and has given trailing returns of 93.54% in one year (as of 16th April 2021). The fund considers the MSCI World Energy 10/40 Net TRI, S&P BSE Oil & Gas TRI, and S&P BSE Metal TRI as its benchmark.   Key Information Minimum InvestmentINR 500Minimum Additional InvestmentINR 500Minimum SIP InvestmentINR 500Minimum WithdrawalINR 500Exit LoadNilReturn Since Inception (25th April 2008):12.32% (as of 19th April 2021)Assets12.32% (as of 19th April 2021)Expense Ratio2.51% (as of 28th February 2021) 3. DSP Healthcare Fund (Category - Equity: Sectoral-Pharma) The DSP Healthcare Fund invests in prominent healthcare and pharmaceutical companies. This open-ended fund has a NAV of 20.4680 (Regular Growth) (as of 19th April 2021) and is one of the top-performing funds in the 'Equity: Sectoral - Pharma' category. The fund was launched on 30th November 2018 and has given trailing returns of 66.19% in one year (as of 19th April 2021). The fund considers the S&P BSE Healthcare TRI as its benchmark.   Key Information Minimum InvestmentINR 500Minimum Additional InvestmentINR 500Minimum SIP InvestmentINR 500Minimum WithdrawalINR 500Exit Load1% for withdrawals before 364 daysReturn Since Inception (30th November 2018):35.01% (as on 19th April, 2021)AssetsINR 1,110 Crore (as of 31st March 2021)Expense RatioINR 1,110 Crore (as of 31st March 2021) 4. DSP Small Cap Fund (Category - Equity: Small Cap) The DSP Small Cap Fund invests in the shares of companies that have tremendous growth potential. This open-ended fund has a NAV of 78.9260 (Regular Growth) (as of 19th April 2021) and is one of the best-performing funds in the 'Equity: Small Cap' category. The fund was launched on 14th June 2007 and has given trailing returns of 83.40% in one year (as of 19th April 2021). The fund considers the S&P BSE Small Cap TRI as its benchmark.   Key Information Minimum InvestmentINR 500Minimum Additional InvestmentINR 500Minimum SIP InvestmentINR 500Minimum Withdrawal-Exit LoadNilReturn Since Inception (14th June 2007):16.08% (as of 19th April 2021)Assets1.92% (as on 31st March 2021)Expense Ratio1.92% (as of 31st March 2021) 5. DSP Equal Nifty 50 Fund (Category - Equity: Large Cap) The DSP Equal Nifty 50 Fund invests in high-quality companies with a large market capitalization. This open-ended fund has a NAV of 12.5777 (Regular Growth) (as of 19th April 2021), and is one of the top-performing funds in the 'Equity: Large Cap' category. The fund was launched on 23rd October 2017 and has given trailing returns of 66.67% in one year (as of 19th April 2021). The fund considers the NIFTY 50 Equal Weight TRI as its benchmark.   Key Information Minimum InvestmentINR 500Minimum Additional InvestmentINR 500Minimum SIP InvestmentINR 500Minimum WithdrawalINR 500Exit LoadNilReturn Since Inception (23rd October 2017):6.79% (as of 19th April, 2021)AssetsINR 145 Crore (as of 31st March 2021)Expense RatioINR 145 Crore (as of 31st March, 2021) 6. DSP T.I.G.E.R. Fund (Category - Equity: Sectoral - Infrastructure)  The DSP T.I.G.E.R. Fund invests in top-class companies that will benefit from India's infrastructural growth. This open-ended fund has a NAV of 107.3040 (Regular Growth) (as of 19th April 2021) and is one of the top-performing funds in the 'Equity: Sectoral - Infrastructure' category. The fund was launched on 11th June 2004 and has given trailing returns of 58.02% in one year (as of 19th April 2021). The fund considers the S&P BSE 100 TRI as its benchmark.   Key Information Minimum InvestmentINR 500Minimum Additional InvestmentINR 500Minimum SIP InvestmentINR 500Minimum WithdrawalINR 1,000Exit Load1% for withdrawals before 364 daysReturn Since Inception (11th June 2004):15.11% (as on 19th April, 2021)AssetsINR 981 Crore (as of 31st March 2021)Expense RatioINR 981 Crore (as of 31st March, 2021) 7. DSP Equity Opportunities Fund (Category - Equity: Large & Mid Cap) The DSP Equity Opportunities Fund invests in top-class large and mid-sized companies that have a consistent track record of profit-making.  This open-ended fund has a NAV of 288.9890 (Regular Growth) (as of 19th April 2021), and is one of the top-performing funds in the 'Equity: Large & Mid Cap' category. The fund was launched on 16th May 2000 and has given trailing returns of 55.78% in one year (as of 19th April 2021). The fund considers the NIFTY Large Midcap 250 TRI as its benchmark.   Key Information Minimum InvestmentINR 500Minimum Additional InvestmentINR 500Minimum SIP InvestmentINR 500Minimum WithdrawalINR 1,000Exit Load1% for withdrawals before 364 daysReturn Since Inception (16th May 2000):1.91% (as on 28th February 2021)AssetsINR 5,747 Crore (as of 31st March 2021)Expense Ratio1.91% (as of 28th February 2021) 8. DSP Flexi Cap Fund (Category - Equity: Flexi Cap) The open-ended DSP Flexi Cap Fund has a NAV of 47.2660 (Regular Growth) (as of 19th April 2021), and is one of the top-performing funds in the 'Equity: Flexi Cap' category. The fund was launched on 29th April 1997 and has given trailing returns of 52.10% in one year (as of 19th April 2021). The fund considers the NIFTY 500 TRI as its benchmark.   Key Information Minimum InvestmentINR 500Minimum Additional InvestmentINR 500Minimum SIP InvestmentINR 500Minimum WithdrawalINR 500Exit Load1% for withdrawals before 364 daysReturn Since Inception (29th April 1997):1.96% (as of 31st March 2021)Assets1.96% (as of 31st March, 2021)Expense RatioINR 4,983 Crore (as of 31st March 2021) 9. DSP Equity & Bond Fund (Category - Hybrid: Aggressive Hybrid) The DSP Equity & Bond Fund invests in value-oriented large, mid-sized, and small companies that have a consistent track record of profit-making.  This open-ended fund has a NAV of 198.9500 (Regular Growth) (as of 19th April 2021) and is one of the top-performing funds in the 'Hybrid: Aggressive Hybrid category. The fund was launched on 27th May 1999 and has given trailing returns of 39.91% in one year (as of 19th April 2021). The fund considers the CRISIL Hybrid 35+65 Aggressive TRI as its benchmark.   Key Information Minimum InvestmentINR 500Minimum Additional InvestmentINR 500Minimum SIP InvestmentINR 500Minimum WithdrawalINR 500Exit Load1% for withdrawals before 364 daysReturn Since Inception (27th May 1999):INR 6,396 Crore (as of 31st March 2021)AssetsINR 6,396 Crore (as of 31st March 2021)Expense Ratio1.89% (as of 28th February 2021) 10. DSP Dynamic Asset Allocation Fund (Category - Hybrid: Dynamic Asset Allocation) The DSP Dynamic Asset Allocation Fund invests in debt instruments, including bonds, non-convertible debentures, debentures, GOI securities, mutual funds, and treasury bills.  This open-ended fund has a NAV of 18.3880 (Regular Growth) (as of 19th April 2021) and is one of the top-performing funds in the 'Hybrid: Dynamic Asset Allocation' category. The fund was launched on 6th February 2014 and has given trailing returns of 21.44% in one year (as of 19th April 2021). The fund considers the CRISIL Hybrid 35+65 Aggressive TRI as its benchmark.   Key Information Minimum InvestmentINR 500Minimum Additional InvestmentINR 500Minimum SIP InvestmentINR 500Minimum WithdrawalINR 500Exit Load1% for withdrawals before 364 daysReturn Since Inception (6th February 2014):1.99% (as of 28th February 2021)Assets1.99% (as of 28th February, 2021)Expense RatioINR 3,205 Crore (as of 31st March 2021) How can you invest in DSP Mutual Fund via EduFund? EduFund simplifies the process of investing in DSP Mutual Fund. You need to follow six steps to invest in DSP mutual fund.  Step 1 - Download the App and Create an Account: Open Google Play Store or Apple App Store. Create an account by entering your name, address, mobile number, email address, and other details. Step 2 -  Choose the Scheme: Browse the list of DSP mutual fund schemes and select a scheme. You can invest a lump sum in the growth or dividend option. Alternatively, you can choose a Systematic Investment Plan (SIP) with a minimum amount of INR 500. EduFund's recommendation engine automatically suggests the right scheme for achieving your financial objectives. Step 3 - Manage Your Transaction(s): The EduFund app is your all-in-one source for getting all information related to your account. You can invest in new schemes, withdraw your money, download the account statement, switch your investment from one fund to another fund (s), or compare funds. Step 4 - Discuss With a Counsellor: Sometimes, it may become difficult to align your financial investments with life goals. EduFund's expert counselors can help you find the most suitable fund for your needs. EduFund secures all transactions with top-class authentication and encryption features to make sure your financial transactions are as safe as banks. Seven best-performing fund managers at DSP Mutual Fund The fund manager plays a crucial role in determining the growth of your capital. Their knowledge about the market and the timing of entry and exit from a financial instrument affect the returns. The following are the seven best fund managers at DSP AMC. 1. Aayush Ganeriwala Aayush Ganeriwala is an experienced and qualified fund manager at DSP AMC. He joined DSP Investment Managers in June 2019. He has many qualifications, which include B.Com (H) from St. Xavier’s College, Kolkata, CS (ICSI), CA (ICAI), CFA (USA), PGDM (IIM-L), and FRM (GARP). Mr. Ganeriwala's primary areas of interest in Oil, Gas, and Metals. The mutual fund schemes managed by him include DSP A.C.E. Fund (Analyst’s Conviction Equalized) – Series 2, DSP Arbitrage Fund, and DSP Natural Resources and New Energy Fund. 2. Abhishek Ghosh Mr. Abhishek Ghosh is an experienced fund manager. He joined DSP Investment Managers as Assistant Vice President (Equities) in September 2018. His educational qualifications include an MBA (Finance) and BE (Electronics). His fourteen years of work experience took him through renowned financial institutions like IDFC Securities, Motilal Oswal, BNP Paribas, B&K Securities,  and Edelweiss Financial Services. Mr. Ghosh manages funds like DSP Dynamic Asset Allocation Fund, DSP Equity & Bond Fund, and DSP Equity Fund. 3. Anil Ghelani Mr. Anil Ghelani, CFA Charter Holder, CA (ICAI), and B.Com (University of Mumbai) is the Head of Passive Investments & Products at DSP Investment Managers. He joined the company in 2003. Since May 2019, he has also been working as a fund manager. He has extensive experience in managing a portfolio. In his capacity as the Business Head & Chief Investment Officer at DSP Pension Fund Managers, he introduced several innovative techniques to maximize the company's profits. Before joining DSP AMC, he worked at IL&FS Asset Management Company and S.R. Batliboi. Besides DSP, Mr. Ghelani also serves the CFA Society India as the Director and Vice-Chairman. He manages various DSP mutual fund schemes like DSP Quant Fund, DSP Equal Nifty 50 Fund, DSP Nifty 50 Index Fund, DSP Nifty Next 50 Index Fund, and DSP Liquid ETF. 4. Atul Bhole Mr. Atul Bhole has been associated with DSP Mutual Fund since May 2016. He joined as the Vice President (Investments). He has worked with various reputed financial organizations like Tata Asset Management Ltd., JP Morgan Services (India) Pvt. Ltd., and the State Bank of India. During his stint with Tata Asset Management Ltd., he managed several funds like Tata Midcap Growth Fund, Tata Balanced Fund, and Tata Equity P/E Fund. Mr. Bhole did his Masters in Management Studies from Jamnalal Bajaj Institute of Management Studies. He has also successfully cleared the Chartered Accountancy examination. The funds managed by Mr. Atul Bhole include DSP Dynamic Asset Allocation Fund, DSP Equity Fund, and DSP Equity & Bond Fund. 5. Charanjit Singh Mr. Charanjit Singh has an MBA in Finance and B.Tech in Electronics and Communication Engineering. He joined DSP as the Asst. Vice President(Equity) in September 2018. Before joining DSP AMC, he worked with renowned financial institutions like Axis Capital, B&K Securities, BNP Paribas Securities, IDC Corp, Thomas Weisel Partners, HSBC, and Frost & Sullivan.  Mr. Singh manages funds like DSP Equity Opportunities Fund, DSP Tax Saver Fund, and DSP India T.I.G.E.R. Fund (The Infrastructure Growth and Economic Reforms Fund). 6. Dipesh Shah Mr. Diipesh Shah joined DSP Investment Managers as Vice President (ETF & Passive Investments). He manages the portfolio for equity and fixed-income ETFs. He also manages Index funds. Mr. Shah works actively towards increasing DSP mutual fund's clout in the passive investments space. He has worked in this sector for over 19 years and has experience in Cash & Derivatives Sales Trading, Equity Research, Buy-Side Trading, and Fixed Income risk management.  Before joining DSP mutual fund, he worked with Centrum Broking, JM Financial, ICICI Securities, IIFL Capital Pte Ltd Singapore, and IDFC Securities. Mr. Shah manages funds like DSP Quant Fund, DSP Equal Nifty 50 Fund, DSP Nifty 50 Index Fund, and DSP Liquid ETF. 7. Jay Kothari Mr. Jay Kothari joined DSP Investment Managers in May 2005. He is currently engaged as the Senior Vice President & Product Strategist. Before joining DSP AMC, he worked with Standard Chartered Bank. He has completed BMS in Finance and International Finance and MBA (Finance) from the University of Mumbai. Mr. Kothari looks after the overseas investments division of DSP AMC. He actively manages funds like DSP Small Cap Fund, DSP Focus Fund, DSP Natural Resources and New Energy Fund, DSP World Gold Fund, and DSP World Energy Fund.  Why should you invest in DSP Mutual Fund? DSP mutual fund is one of the fastest-growing mutual fund houses in India. The fund house has funds across various sectors. DSP mutual fund managers have significant experience in portfolio management and income generation. DSP Investment Managers has branches all over India. Alternatively, you can download the EduFund app and invest directly. Select EduFund for investing in DSP Mutual Fund EduFund simplifies investing in DSP Mutual Funds. EduFund's top-class fund tracker picks out the best funds suiting your requirements. In case you need more help, EduFund's experienced counselors are there to discover your needs and find the best funds. You can start a SIP with a lowly INR 500 or invest a minimum lump sum amount of INR 5,000.  EduFund's scientific fund tracker scans more the one lakh data points and over 400 financial scenarios to pick out the best DSP mutual fund schemes for you. You can use several free tools, such as College Savings Calculator or SIP calculator, to figure out your needs. Moreover, you can select the best funds without requiring any technical knowledge of the capital market.  EduFund uses top-class security parameters, such as 128-SSL, to safeguard your transaction and investments. FAQs Is DSP mutual fund safe? DSP mutual fund is one of the fastest-growing mutual fund houses in India. The fund house has funds across various sectors. DSP mutual fund managers have significant experience in portfolio management and income generation. DSP Investment managers have branches all over India. Which fund is best in DSP mutual fund? DSP World Mining Fund (Category – Equity: International) DSP Natural Resources and New Energy Fund (Category – Equity: Thematic – Energy) DSP Healthcare Fund (Category – Equity: Sectoral-Pharma) DSP Small Cap Fund (Category – Equity: Small Cap) DSP Equal Nifty 50 Fund (Category – Equity: Large Cap) Who owns DSP mutual fund? The principal sponsors of this fund are DSP ADIKO Holdings Pvt. Ltd. and DSP HMK Holdings Pvt. Ltd. (formerly DSP BlackRock Investment Managers Pvt. Ltd). DSP ADIKO Holdings Pvt. Ltd. and DSP HMK Holdings Pvt. Ltd. has 54% and 34% holding in the company, respectively. Ms. Aditi Kothari Desai and Ms. Shuchi Kothari hold 6% shares each. Is DSP mutual fund a good company? DSP Mutual Fund is one of the largest mutual fund houses operating in India. The fund house was established as a trust as per the rules of the Indian Trust Act of 1882. DSP Asset Management Company (AMC) is registered under the Securities and Exchange Board of India (SEBI) (Mutual Funds) Regulations, 1996.

The Nippon India Mutual Fund was incorporated as the Reliance Mutual Fund in 1995. It is one of the most prominent mutual funds in the country both by age and by the assets under the management of the mutual fund. The mutual fund has been known as the Nippon India Mutual Fund since 2019. The Nippon India Mutual Fund has some of the fastest-growing schemes in India. The total value of the assets under management of the Nippon Indian Mutual Fund is Rs. 2.17 lakh crore as of 1 March 2021. It contains a wide variety of mutual fund schemes that allow its investors to invest in a truly diversified portfolio. The Nippon India Mutual Fund offers debt funds, equity funds, gold funds, and liquid funds. Several of these funds are of the balanced and tax saver kind as well.  Nippon India Mutual Fund is sponsored by Nippon Life Insurance Company Ltd. Nippon Life Insurance Company is the foremost life insurance company in Japan. It offers individual and group life insurance as well as annuity policies. Its headquarters are in Japan, but it also operates in Europe, Nother America, and Oceania. It has more than 70 thousand employees and assets worth more than 70 billion yen. The Nippon India Mutual Find has over 350 schemes, which include 52 equity, 266 debt, and 40 balanced funds. Sundeep Sikka is the CEO of the company, and it has six trustees. Manish Gunwani is the Chief Investment Officer for the debt funds, while Amit Tripathi holds the same post for equity funds. Important information Name of the AMCNippon India Mutual Fund (Formerly Reliance Mutual Fund)Incorporation Date30 June 1995Sponsors Nippon Life Insurance Company (NLI)TrusteeNippon Life India Trustee Limited (Formerly known as ​​​​​​​​​​Reliance Capital Trustee Co. Limited) (NLIT)Trustees' NamesNilesh S. Vikamsey Kohei Sano Rajiv A.N. Shanbhag Vijay Kumar Chopra Upendra JoshiMD/CEOSundeep SikkaCIOManish Gunwani Amit TripathiAAUMRs. 213033.15 Cr as of 1 March 2021 Best Reliance mutual fund schemes There are several Reliance Mutual Fund Schemes that feature among the top schemes available to investors in the market. Let us look at the top ten among these schemes. 1. Nippon India Growth Fund Direct The Nippon India Growth Fund has been among the most successful funds in the Indian market over the past few years. It has a CRISIL rating of 3, and investors have realized returns of over 38% in the past year and almost 19% in the last five years, as of 1 March 2021. Minimum InvestmentINR 100Minimum Additional Investment INR 100Minimum SIP InvestmentINR 100Minimum WithdrawalINR 100Exit Load1% for redemption within 30 days; Nil for redemption after 30 daysReturn Since Inception:15.39%AssetsINR 9031 CroreExpense Ratio1.22%*All values as of 1 March 2021 2. Nippon India Gilt Securities Fund Direct The Nippon India Gilt Securities Fund is rated 4 by CRISIL and is among the best-performing debt funds in the market. It has an AUM of 1525 Crore as of 1 March 2021 and has 6.62% over the last year and nearly 11% over the last five years. Minimum InvestmentINR 5000Minimum Additional Investment INR 1000Minimum SIP InvestmentINR 100Minimum WithdrawalINR 100Exit Load0.25% for redemption within 7 days; Nil for redemption after 7 daysReturn Since Inception:10.44%AssetsINR 1525 CroreExpense Ratio0.61%*All values as of 1 March 2021 3. Nippon India Value Fund Direct The Nippon India Value Fund is an equity fund that has an AUM of 3517 Crore as of 1 March 2021. It carries a CRISIL rating of 3 and has returned more than 17.25% in the last five years. Minimum InvestmentINR 500Minimum Additional Investment INR 500Minimum SIP InvestmentINR 100Minimum WithdrawalINR 100Exit Load1% for redemption within 365 days for units more than 10% of investment; Nil for redemption after 365 daysReturn Since Inception:14.03%AssetsINR 3517 CroreExpense Ratio1.41%*All values as of 1 March 2021 4. Nippon India Income Fund Direct The Nippon India Income Fund has been an extremely successful fund, giving it a CRISIL rating of 4. Though it is a comparatively small fund with an AUM of 306 crores, it has returned 9.15% in the last five years as of 1 March 2021, which is significant for a debt fund. Minimum InvestmentINR 5000Minimum Additional Investment INR 1000Minimum SIP InvestmentINR 100Minimum WithdrawalINR 100Exit Load1% for redemption within 15 days; Nil for redemption after 15 daysReturn Since Inception:8.75%AssetsINR 306 CroreExpense Ratio0.58%*All values as of 1 March 2021 5. Nippon India Small Cap Fund Direct The Nippon India Small Cap Fund is a high-performance equity fund that has among the highest returns for any fund in the Indian market. Since its inception, it has returned over 15% and has accumulated an AUM of over 12000 crores as of 1 March 2021. Minimum InvestmentINR 5000Minimum Additional Investment INR 1000Minimum SIP InvestmentINR 100Minimum WithdrawalINR 100Exit Load1% for redemption within 30 days; Nil for redemption after 30 daysReturn Since Inception:15.39%AssetsINR 12474 CroreExpense Ratio1.01%*All values as of 1 March 2021 6. Nippon India Banking & PSU Debt Fund Direct The Nippon India Banking & PSU Debt Fund invests exclusively in Banks and Public Sector Undertakings of the Government of India. Despite being a debt fund, it has been able to return nearly 9% in the last five years as of 1 March 2021. Minimum InvestmentINR 5000Minimum Additional Investment INR 1000Minimum SIP InvestmentINR 100Minimum WithdrawalINR 100Exit LoadNilReturn Since Inception:8.81%AssetsINR 6636 CroreExpense Ratio0.33%*All values as of 1 March 2021 7. Nippon India Floating Rate Fund Direct The Nippon India Floating Rate Fund is another debt fund that has performed rather well since its inception and has had a constant rate of return of over 8% a year over the last 5 years, as of 1 March 2021. Minimum InvestmentINR 5000Minimum Additional Investment INR 1000Minimum SIP InvestmentINR 100Minimum WithdrawalINR 100Exit LoadNilReturn Since Inception:8.68%AssetsINR 13114 CroreExpense Ratio0.24%*All values as of 1 March 2021 8. Nippon India Short-Term Fund Direct The Nippon India Short-Term Fund has an AUM of nearly 8000 Crore as of 1 March 2021. It has had a constant annual rate of return that has been over 8.5% since its inception. Minimum InvestmentINR 500Minimum Additional Investment INR 500Minimum SIP InvestmentINR 100Minimum WithdrawalINR 100Exit LoadNilReturn Since Inception:8.84%AssetsINR 7903 CroreExpense Ratio0.34%*All values as of 1 March 2021 9. Nippon India Money Market Fund Direct The Nippon India Money Market Fund is a debt fund with a CRISIL rating of 4 and an AUM f nearly 7000 crores as of 1 March 2021. Its rate of return has been over 7% annually for nearly all of its existence. Minimum InvestmentINR 500Minimum Additional Investment INR 500Minimum SIP InvestmentINR 100Minimum WithdrawalINR 100Exit LoadNilReturn Since Inception:7.79%AssetsINR 6865 CroreExpense Ratio0.19%*All values as of 1 March 2021 10. Nippon India Vision Fund The Nippon India Vision Fund is a relatively new offering from the Nippon India Mutual Fund and has provided a handsome rate of return of over 12% since its inception as of 1 March 2021. It has an AUM of over 2800 crore. Minimum InvestmentINR 5000Minimum Additional Investment INR 1000Minimum SIP InvestmentINR 100Minimum WithdrawalINR 100Exit Load1% for redemption within 365 days for units more than 10% of investment; Nil for redemption after 365 daysReturn Since Inception:12.09%AssetsINR 2830 CroreExpense Ratio1.58%*All values as of 1 March 2021 How can you invest in Reliance Mutual Fund Via EduFund? You can use EduFund to invest in the Reliance Nippon Mutual Fund and secure your child's education abroad. Here are the steps that will enable you to invest in the Reliance Nippon Mutual Fund through EduFund. Download the EduFund app from the App Store or the Google Play Store. Create an account on EduFund. Enter your goals for your child's education. You can enter details like the country you are targeting, the level of education you want to send your child abroad for, and the specialization you want your child to pursue abroad. You can also enter the rank range of the college you want to send your child to and the kind of city the college should be in. You will get a list of colleges that match the criteria you have input. Alongside this, you will also receive data regarding the tuition fees of such institutes.  Based on your financial goals, you can now invest in the best-performing Reliance Nippon Mutual Fund. Based on past data, you can determine the amount of time it will take you to generate enough funds to secure your child's education. You can use the EduFund app to continuously track your investments. You can pay using several different modes of payment and keep track of the performance of the fund you have invested in. If you are confused regarding where to send your child to study and the financial goals you should set, you can speak with expert education counselors with vast experience in the financials involved in studying abroad. Leading Fund managers at Reliance Mutual Fund For any mutual fund, the person that matters most to the general public is the fund manager. The fund manager has a significant amount of control over decisions associated with the fund and hence determines where the money you invest will be allocated. In many ways, the fund managers are the ultimate authority that decides whether your money will be put to loss-making or profit-making purposes. It is hence important for fund managers to be competent, educated, and experienced. Here are the top fund managers of the Reliance Mutual Fund, who have had the greatest returns over the past months and years or have been entrusted with large volumes of assets due to their great past performance. 1.Samir Rachh Mr. Samir Rachh is one of the most experienced fund managers at Reliance Mutual Fund. He has experience in various different industries and the amount of work that he has done spans over 29 years now. At the same time, he is also among the most prolific managers of the Reliance Mutual Fund and among the most prolific experts in small-cap and mid-cap stocks. Mr. Samir Rachh graduated in commerce from Mumbai University. After this, he spent three years at the Capital Market magazine as its Assistant Editor. Post this stint in journalism, he set up his own research and investment advisory firm known as Avicon Research. Here, he spent another three years as its managing partner. He then spent four years managing funds and research at Hinduja Finance, post which he was with Emkay Global Financial Services Ltd. for four years. At Emkay Global Financial Services Ltd., he was the Head of Institution Research for two years and the Head of PMS for another two years. For more than twelve years now, Mr. Rachh has been working for the Reliance Mutual Fund. Mr. Samir Rachh is the fund manager for three schemes. The AUM for these three schemes is over 10,000 crore as of 1 March 2021. Between 2016 and 2021, the schemes managed by Mr. Rachh delivered a maximum yearly return of 21.4%. He manages the Nippon Small Cap Fund, which has returns of over 30% between 2018 and 2020, and the Nippon Small Cap Direct Fund, which has returns of over 33% at the same time. 2. Anju Chhajer Ms. Anju Chhajer is another one of the fund managers at the Reliance Mutual Fund, who has given really high returns to investors over the past few years. She has more than 20 years of experience as a fund manager, the vast majority of which have been spent at the Reliance Mutual Fund. Ms. Anu Chhajer is a graduate of commerce from the Shib Nath Shastri College in Kolkata. She is also a certified chartered accountant. From 1997 to 2007, she was employed at the National Insurance Co. Ltd. Here, she was the treasury in charge and managed the debt investment portfolio that the company offered. In 2007, Ms. Chhajer joined the Reliance Mutual Fund as a fund manager. She is now a Senior Fund Manager at Reliance Mutual Fund. Ms. Anju Chhajer manages a total of 45 schemes at Reliance Mutual Fund, which include a number of different high-performing funds. She has a total AUM of more than 66,000 crores as of 1 March 2021. Between 2016 and 2021, here highest yearly returns have been 19.58%. She managed the Nippon Liquid Fund - IP, which returned nearly 19% between 2018 and 2021. She also manages the Nippon Liquid Fund - Direct, which has returned 19.2% in the same time and has a total asset value of more than 19,000 crores as of 1 March 2021. 3. Vinay Sharma Mr. Vinay Sharma is another prolific expert and fund manager at Reliance Mutual Fund. He has been here for nearly three years now and has been a fund manager for more than a decade. He primarily manages equity funds for Reliance Mutual Fund. Mr. Vinay Sharma graduated from the Malaviya National Institute of Technology in Jaipur with a Bachelor of Architecture degree. Post his graduation, he gained admission into the Indian Institute of Management Calcutta for a Post Graduate Diploma in Computer-Aided Management. He also gained qualification as a Chartered Financial Analyst from the CFA Institute. Mr. Sharma joined JP Morgan Chase as an Equity Analyst in 2004 and was a part of the Asian Banking Research Team. After working there for two years, he joined AIG Investments as an Equity Analyst. Here he managed over USD 500 million in equity funds through the mutual fund and other offshore Indian funds. He was then a fund manager at ICICI Prudential AMC Ltd. from 2010 to 2018. Here, he managed the FMCG sector fund in addition to other large-cap and mid-cap funds. He joined Reliance Mutual Fund in 2018. Mr. Vinay Sharma manages two schemes at the Reliance Mutual Fund, with a total AUM of more than 6,800 crores as of 1 March 2021. He manages the Nippon India Focused Equity Fund, which gave returns of over 17% in 2020. 4. Manish gunwani Mr. Manish Gunwani is a prolific fund manager and also one of the Chief Investment Officers at Reliance Mutual Fund. He has more than 10 years of experience as a fund manager. Mr. Gunwani earned his Bachelor of Technology in Mechanical Engineering from the Indian Institute of Technology Madras, one of Inai's foremost engineering universities. He then went on to earn a Post Graduate Diploma in Management in Finance from the Indian Institute of Management Calcutta. He joined Prime Securities as an Equity Research Analyst in 1996 and handles equity research on the software, FMCG, and banking industries. He was then an Equity Research Analyst at SSKI, covering the software industry before moving on to set up his own venture, named Vicisoft technologies. ViciSoft Technologies created efficient document management solutions for all scales and levels. In 2010, Mr. Gunwani left Vicisoft Technologies to become a SeniorFund Manager at ICICI Prudential AMC Ltd. He has been the Chief Investment Officer for Equities at Reliance Mutual Fund since 2017. The total AUM of Mr. Manish Gunwani is nearly 12,000 crore as of 1 March 2021, with a maximum annual return of 18.75% between 2016 and 2021. He manages 7 schemes, including the Nippon Growth Fund - Direct, which has returned 45.2% between 2018 and 2021. He also managed the Nippon Balanced Advantage Fund - Direct, which has returned 34% in this time. 5. Sailesh Raj Bhan Mr. Saliesh Raj Bhan is one of the most experienced fund managers at Reliance Mutual Fund. The funds managed by him have had great returns in the past years and continue to do so in both the short term and the long term. Mr. Sailesh Raj Bhan has managed a wide variety of funds over the course of his career. He currently manages the Nippon Pharma Fund, which is the largest Indian Pharma Fund. He has been managing this fund since its inception in 2004. He also manages the Nippon Multi-Cap Fund, which has assets of more than 6,000 crores as of 1 March 2021 and has returned over 27% CAGR between 2018 and 2021. Additionally, he is the manager of the Nippon Consumption Fund, which has returned nearly 40% CAGR in this time. The AUM of Mr. Sailesh Raj Bhan is more than 22,000 crore as of 1 March 2021, and he manages a total of 9 schemes. He is also the Deputy Chief Information Officer for Equity at the Reliance Mutual Fund. Why should you invest in Reliance Mutual Fund? The Reliance Mutual Fund is one of the most robust mutual funds of the Indian market. Over the past few years, some of the highest-performing schemes among Indian mutual funds belong to the Reliance Mutual Fund. If you are looking to invest for the long term, Reliance Mutual Fund can be a great option. The Reliance Mutual Fund has always been owned by really strong and stable companies. Before becoming the Nippon India  Mutual Fund, it was the Reliance Mutual Fund owned by Reliance Capital Limited. Reliance Capital was one of the largest financial services holding companies in India, and Reliance Capital Asset Management was the AMC managing the mutual fund. The mutual fund was then jointly owned by Nippon Life Insurance and Reliance Capital, which had a total share of 75% in the company. Nippon Life Insurance bought out the share of Reliance in 2019. A majority stake is now owned by Nippon Life Insurance, which is one of the largest insurance providers in the world. The stability of the companies managing the fund is a dictator of how the fund will do, and the Reliance Mutual Fund gets the top rating in that regard. The Reliance Mutual Fund also warrants investment due to the large variety of financial options it provides for you to invest in. While most mutual funds will only provide you with general debt, equity, and balanced option among schemes, the Reliance Mutual Fund allows you to invest in a gold savings fund and retirement schemes, among others.  The above components make the Reliance Mutual Fund ideal if you want to invest money in your child's education. Mutual funds are the ideal instrument to secure the future of your child. If you have already determined that you want to send your child abroad for studying, you can never be too early in your endeavor to save up for the huge costs that can be involved in ensuring the best education available globally for your child. This becomes all the more important if you want all of your kids to settle abroad. The experience of the mutual fund advisors that the Reliance Mutual Fund will offer you will ensure that you are provided with the soundest financial advice for your goals. With a Reliance Mutual Fund office always located in a city near you, you can simply walk in and choose the type of funds you want to invest in. You can share your financial goals with the advisors of the Reliance Mutual Fund, and based on past performance and future outlook, you will be offered a list of mutual funds that have just the right proportion of risk and reward to suit your needs. Select EduFund For Investing in Nippon India Mutual Fund EduFund provides you with a wide list of options for investment to fulfill your child's educational dreams. It also provides you access to experienced financial counselors that are experts in ensuring that you can make enough to afford the tuition fee for studies abroad. It helps you develop a research-based financial plan customized entirely per your needs and requirements. Furthermore, it provides you access to a number of free tools and calculators that enable you to calculate the cost of education and funding.  FAQs Is Reliance and Nippon mutual fund the same? The Nippon India Mutual Fund was incorporated as the Reliance Mutual Fund in 1995. It is one of the most prominent mutual funds in the country both by age and by the assets under the management of the mutual fund. The mutual fund has been known as the Nippon India Mutual Fund since 2019. The Nippon India Mutual Fund has some of the fastest-growing schemes in India. Is Nippon a Chinese company? Nippon India Mutual Fund is sponsored by Nippon Life Insurance Company Ltd. Nippon Life Insurance Company is the foremost life insurance company in Japan. It offers individual and group life insurance as well as annuity policies. Its headquarters are in Japan, but it also operates in Europe, Nother America, and Oceania. It has more than 70 thousand employees and assets worth more than 70 billion yen. Which fund is the best in Nippon mutual fund? Nippon India Growth Fund Direct Nippon India Gilt Securities Fund Direct Nippon India Value Fund Direct Nippon India Income Fund Direct Nippon India Small Cap Fund Direct Is Reliance Nippon mutual fund safe? The Reliance Mutual Fund is one of the most robust mutual funds in the Indian market. Over the past few years, some of the highest-performing schemes among Indian mutual funds belong to the Reliance Mutual Fund. If you are looking to invest in the long term, Reliance Mutual Fund can be one of the better options.

In the early article, we discussed financial planning. In this article, we will try to under the taxation in the mutual fund system that applies to mutual fund investments.  Factors determining the taxation of Mutual funds  To know the taxation structure, first, you need to identify which type of mutual funds you have invested in and whether the fund you hold is an equity mutual fund or a debt-oriented mutual fund.   Along with this, the type of income that you are generating from the fund, whether a capital gain or dividend income - both these types of income are taxable in different ways.  Finally, your holding period is crucial in knowing the taxes applicable to your mutual funds' portfolio.  Earnings in mutual funds There are usually two ways in which money is earned in mutual funds: one through the selling of the mutual fund (capital gain) and the other through dividend income.   For example, if you are holding units of a mutual that you purchased at a NAV (Net Asset Value) of Rs. 100, and you sell it when its NAV of Rs. 150, you make a capital gain of Rs. 50; it is worth noting that capital gains tax accrues on the mutual funds' units only after redemption.   The tax will be payable when you file your income tax returns for the coming fiscal year.  The second way to earn from mutual funds is dividend income – the fund declares dividends for the holders based on the surplus that it has for distribution Dividends are taxable as soon as the dividend amount hits the bank accounts of the investors.   Source: Pexels Tax on capital gains  Here, there are again two parts to the story – whether the realized capital gains have come from equity mutual funds or debt mutual funds.   An equity mutual fund has an equity exposure of greater than 65%. For equity mutual funds, if the gains have been realized within 12 months of holding, then the applicable tax rate is flat at 15% on the gains (irrespective of your income tax bracket).   When the holding period exceeds 12 months, the capital gains of Rs. 1,00,000 are exempt from taxes. Any amount upwards of Rs. 1,00,000 is taxable at 10%, along with the provision of indexation benefits.  For debt mutual funds (funds with greater than 65% exposure to debt instruments) - the holding period is considered short-term if it is less than 36 months; anything more than that is long-term.  For the short term, the tax rate is in accordance with your income tax slab. On the other hand, for debt funds held for more than 36 months, the gains are taxable at a flat rate of 20% post-indexation (plus, some cess and surcharge are added).  A possible third case is hybrid funds (funds with a mix of debt and equity) it is simple, their tax treatment is supposed to be on the basis of the fund's exposure to debt and equity.  If the hybrid fund is equity-focused: LTCG is charged at 10% on capital gains exceeding Rs. 1 lakh (without indexation), and STCG is charged at 10%. If the hybrid fund is debt-focused: LTCG is charged at 20% with indexation benefits, and STCG is charged per income tax slab.  Tax on dividends  Now, when it comes to taxation of dividends paid out on mutual funds, it is done by adding the dividend to the investor's taxable income, and then the individual income tax slab rate is applicable; this is in accordance with the amendments made by the union budget of 2020.  Earlier, dividends were tax-free in the hands of investors since the companies paid the Dividend distribution tax (DDT) before sharing the profits with the investors.   Dividends (received from domestic companies) of up to Rs. 10,00,000 per year were tax-free in the hands of the investors during this period. Dividends above Rs. 10 lakhs were subject to a dividend distribution tax of 10%.  STT Aside from the dividends and capital gains taxes, there is also a securities transaction tax (STT).   When you acquire or sell mutual fund units of an equity or a hybrid mutual fund, the government charges an STT of 0.001%. It is important to note that selling units of debt funds are exempt from the STT.  Important points to note  There are tax-saving equity funds as well. Investments made under the ELSS (Equity-linked savings schemes) qualify for tax exemption under section 80C of the Income-tax Act (exemption up to Rs. 1,50,000).   Please note that ELSS schemes come with a lock-in period of 3 years – that is, investors cannot redeem the units before three years. LTCG (long-term capital gains tax) is not applicable for gains up to Rs. 1,00,000.   For LTCG more than Rs 1 lakhs, the applicable tax rate is 10% without indexation.  Taxation in the case of SIP (Systematic Investment plans)  Let us understand this with the help of an example  An investor invests Rs. 10,000 every month from April 2021, and another investor invests Rs. 60,000 lump sum at the same time.   When both of them redeem their funds simultaneously, Rs. 10,000 will qualify for tax exemption for the SIP investor because the investment made in 2021 would exceed one year as of May 2021. In contrast, the entire capital gain isn’t taxable for the lump sum. Investing in the long term can be more tax-efficient than holding the units for a short duration. FAQs How much amount is taxed in mutual funds? If the investor claims redemption in less than 1 year of investment, it would fall under the Short-term Capital Gains (STCG) category. The tax rate would be 15% on the gains earned by the investor. If the investor holds the investment for more than a year, (say April 2020 – May 2021), the gains would be taxed at long-term capital gains (LTCG) tax of 10% Is SIP in mutual funds taxable? Yes, SIP in the mutual fund is taxable. The tax amount differs based on the duration and returns generated Which mutual funds are tax-free? Profits from the sale of ELSS fund units are considered long-term capital gains and have tax exemption. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

In the previous article, we talked about what is dollar-cost averaging. In this article, we will try to understand what is NAV and some important points related to NAV   What is NAV? The full form of NAV is Net Asset Value. This term refers to the price of a unit of a mutual fund. To give context, mutual funds are schemes that collect money from investors and invest the money into varied asset classes, from debt to equity.   Mutual funds are broken down into units that are when you purchase a mutual fund, you receive units of it. NAV represents the assets held by the mutual fund.   According to the SEC (Securities and exchange commission), mutual funds and unit investment trusts (UITs) should calculate the respective NAV once a day.  How is NAV calculated?  Net Asset Value = Value of assets – Value of liabilities, where 'value of assets' represents the value of securities in the mutual funds' portfolio, and 'value of liabilities is the value of all the expenses and liabilities incurred by the fund.  On a per-unit basis, the formula is   NAV = ( Value of assets – Value of liabilities ) / Total number of outstanding units.  Is NAV important?   The answer is No! NAV is fairly irrelevant in cases of mutual funds – new mutual funds have a lower NAV than old ones.   Before buying mutual funds, you should consider the size of the AUM (Assets under management), the past performance of the fund, the managers' experience, and the alpha, and the beta. Source: Pexels Invest in funds with lower NAV: A common myth about NAV  Let's take an example. Suppose you invest INR 10,000 in two schemes (A & B). The Nav of scheme A is INR 50. while the Nav of scheme B is INR 100. For your investment in scheme A, you will get 200 units(10000/50). And, for your investment in scheme B, you'll get 100 units. Now, after 1 year, both the schemes generate a return of 20%. This implies that the NAV of schemes has also appreciated by 20%. So now the NAV of scheme A will be INR 60 (20% * 50 + 50). Similarly, the NAA of scheme B will spur to INR 120(20% * 100 + 100). The final investment value in scheme A is INR 12000(200 units * 60) and in scheme B also it stands at INR 12000(100 *120). Thus, a fund with a lower NAV doesn’t signify that it’s a good investment or an underpriced one. Same for investors who think that funds with higher NAV are good investments.    What matters is the performance of the scheme and not the NAV.  When is NAV updated?   Unlike stock prices, NAV is not updated on a real-time basis – the reason for this is that a mutual fund has many assets in its kitty, and tracking all of them is a complicated task. Hence, SEBI mandates the mutual funds to update the NAV every day by 9 p.m. (different mutual funds update their NAV at different times before 9 p.m.).  Which NAV value is taken while buying and selling a mutual fund?   If a mutual fund unit’s purchase happens before 3 p.m., the investor will receive the units at the NAV of the same day at 9 p.m., whereas purchases made after 3 p.m. are calculable at the next day's NAV.   The ruling remains intact even when the mutual fund units’ selling happens. Transactions before 3 p.m. are settled on the same-day NAV, and transactions post 3 p.m. are carried out on the next day's NAV.   In case of purchase/sale done on holiday, the order is carried out at the NAV of the next working day.   How do stock markets affect the NAV of a mutual fund?   Different mutual funds hold different types of assets; they have different levels of exposure to equity and debt markets. The relevance of the exposure to the stock markets will determine how much the SENSEX and NIFTY will affect the NAV of a mutual fund.  If a mutual fund has invested in companies that are part of SENSEX, NIFTY, or both, it is more likely to imitate their movements. Also, multi-cap mutual funds invest in companies of various sizes, so they may or may not be affected by SENSEX or NIFTY depending upon the number of large-cap investments they have.   NAV vs. Stock price Are they the same?  The answer is NO! As we saw above, NAV is not affected by demand, but stock price movements do depend on demand and supply.   Instead of calling NAV and stock price the same, we can say they're similar - the reason being that NAV reflects the book value of the mutual fund, and stock prices, do the same for companies; the book value for companies would include assets of the company and the profits it made.   However, another vital metric behind stock price is demand – if many people want the stock, its price may shoot up (the stock becomes over-valued), and the reverse may happen (the stock becomes under-valued).  How do AUM and NAV differ?  NAV and AUM are two different things. Unlike NAV, AUM is of prime importance, and it should be factored into consideration before purchasing a mutual fund.   AUM (Assets under management) is the total value of assets that the mutual fund manages; it includes both the assets held and the cash possessed by the fund.   How does NAV fluctuate?  NAV can fluctuate with the change in the value of assets held by the mutual fund. Since mutual funds have varied investment instruments, the value of the holding will change depending upon the change in prices of the instruments.  So, if the value of the assets held by a mutual fund is lower than the previous day, the NAV will also be lower and vice versa.  Some key takeaways   The Net Asset Value is a fund's assets minus liabilities and expenses.   It represents (on a per-share basis) the price the investors can transact in the mutual fund units.   The NAV moves in the same direction as the value of securities the mutual fund holds.   The NAV itself offers no justification for a fund being "good" or "bad" to invest in.   A fund's mutual fund units may trade at levels different from the NAV.  FAQs What is NAV? The full form of NAV is Net Asset Value. This term refers to the price of a unit of a mutual fund. To give context, mutual funds are schemes that collect money from investors and invest the money into varied asset classes, from debt to equity.   How is NAV calculated? Net Asset Value = Value of assets – Value of liabilities, where 'value of assets' represents the value of securities in the mutual funds' portfolio, and 'value of liabilities is the value of all the expenses and liabilities incurred by the fund.  On a per-unit basis, the formula is   NAV = ( Value of assets – Value of liabilities ) / Total number of outstanding units. Is NAV important?   The answer is No! NAV is fairly irrelevant in cases of mutual funds – new mutual funds have a lower NAV than old ones.   Before buying mutual funds, you should consider the size of the AUM (Assets under management), the past performance of the fund, the managers' experience, and the alpha, and the beta. Does NAV change daily? Unlike stock prices, NAV is not updated on a real-time basis – the reason for this is that a mutual fund has many assets in its kitty, and tracking all of them is a complicated task.   Hence, SEBI mandates the mutual funds to update the NAV every day by 9 p.m. (different mutual funds update their NAV at different times before 9 p.m.).    What is NAV, and how does it work? The full form of NAV is Net Asset Value. This term refers to the price of a unit of a mutual fund. To give context, mutual funds are schemes that collect money from investors and invest the money into varied asset classes, from debt to equity.    According to the SEC (Securities and Exchange Commission), mutual funds and unit investment trusts (UITs) should calculate the respective NAV once a day. Net Asset Value = Value of assets – Value of liabilities, where ‘value of assets’ represents the value of securities in the mutual funds’ portfolio, and ‘value of liabilities is the value of all the expenses and liabilities incurred by the fund.    On a per-unit basis, the formula is    NAV = ( Value of assets – Value of liabilities ) / Total number of outstanding units.   Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Trading on the exchange can be a challenging experience. If you buy too soon, you risk being disappointed if the price declines. However, if you postpone and the price rises, you will feel you have lost out on a good offer.  Dollar-cost averaging is a risk-minimization tactic that involves progressively increasing your holding. When you employ a dollar-cost average strategy, you engage in an asset in equal amounts of dollars at regular intervals your purchase is at a range of prices rather than aiming to time the market.  Like most investment techniques, dollar-cost averaging isn't for all, and there are periods when it makes more sense than others. However, it can be an efficient strategy for overwhelming some mental hurdles to investing.   Let's understand the nitty-gritty of dollar-cost averaging.  What is Dollar cost averaging?  When buying equities, exchange-traded funds (ETFs), or mutual funds, dollar-cost averaging is a tactic for reducing price risk.   Instead of investing in a single asset at a single purchase price, you divide the investible money to buy tiny amounts over a period at regular intervals with dollar-cost averaging - it reduces the risk of paying a high price before market prices come down.  Of course, prices do not always move in a single direction. However, splitting your purchase into many increases your odds of paying a lower aggregate price over time.   Furthermore, dollar cost averaging allows you to regularly put your capital to work, essential for long-term success.  Let's understand with an example, using DCA, a $200,000 investment in shares can be undertaken over eight weeks by investing $25,000 each week in the same manner.   The trades for lumpsum investing and the DCA approach are in the table below:   The amount invested is $200,000, with 2,353 shares purchased as a lumpsum transaction. On the other hand, the DCA strategy purchases 2,437 shares, a differential of 84 shares worth $6,888 at the $82 average share price.   As a result, DCA can raise the number of shares purchased when the market is down and decrease the number of shares purchased when the market is up.   DCA @ $25000 per weekLumpsumWeekShare priceNo shares purchasedShare priceNo shares purchased185294852353286291  383301  481309  582305  678321  780313  882305  Total shares purchased 2437 2353Average share price82 85  What is the best time to employ dollar cost averaging?   When it comes to dollar-cost averaging, it's crucial. You must, in particular, create and keep to a consistent plan. The strategy's main advantage is that it allows you to avoid worrying about when to buy in and stop trying to beat the market by splitting the investment into parts.  As a result, you must adhere to it once you've set a date, no matter what.  The day you select is the perfect day.  Scenarios of the DCA in market phases  When you employ DCA in a falling market, you can own more significant shares as the market prices fall each day, thus helping you get more shares than the lumpsum buy.  In a rising market, Dollar-cost averaging prevents you from maximizing your returns compared to a lump sum buy because the stock rises and then rises again. However, unless you're looking to make a quick buck, this circumstance rarely occurs in real life. Stocks are pretty volatile.  In a flattish market, the scenario appears to be the same as the lump sum buy in a flattish market, but it isn't because you've eliminated the danger of market mistiming at a low cost. For long periods, markets and stocks might move sideways – up and down but ending where they started.  Benefits and disadvantages of the DCA.  Who should use DCA?  You may consider dollar-cost averaging if you are  When you first start investing, you only have a small quantity of money to invest.   I'm not interested in the extensive research that goes into market timing.   Putting money down for retirement every month.   In a falling market, it's unlikely to maintain investing.  You may employ another investment approach if  You have a lot of money to invest.  You invest in mutual funds through a taxable brokerage account with greater initial investment minimums.   You love attempting to time the market and are unconcerned about the extra time and research required.   You're making a short-term investment  Aside from other aggressive techniques like target asset allocation, diversity, and frequent portfolio rebalancing, an investor should seek to use DCA as an optional strategy. FAQs How do you explain dollar cost averaging? Dollar cost averaging is an investment strategy to mitigate risk while investing. It means that an investor will continue to buy stocks, ETFs and mutual funds by buying smaller units at regularly irrespective of the price point. What is an example of dollar cost averaging? Dollar cost averaging allows you to regularly put your capital to work, essential for long-term success.  Let's understand with an example, using DCA, a $200,000 investment in shares can be undertaken over eight weeks by investing $25,000 each week in the same manner.   The trades for lumpsum investing and the DCA approach are in the table below:   The amount invested is $200,000, with 2,353 shares purchased as a lumpsum transaction. On the other hand, the DCA strategy purchases 2,437 shares, a differential of 84 shares worth $6,888 at the $82 average share price.   As a result, DCA can raise the number of shares purchased when the market is down and decrease the number of shares purchased when the market is up. Is dollar cost averaging a good idea? Yes, it is great for investors who do not want to take on a risky venture. It allows you to invest regularly.  Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Rating agencies are companies that evaluate the financial capabilities and strengths of different companies and government entities, especially their ability to meet their principal and interest repayment on their debt obligations.   The ratings given by these companies act as a signal to the public whether the borrower (the company or government entity) will be able to honor its obligations or not.   If a rating agency downgrades your short-term instruments, it isn’t a big worry if the maturity date is close. However, it could be an issue if the downgrading happens for long-term bonds. Keeping track of these ratings is essential because all debt instruments, though less risky, have some degree of risks involved such as default risk, interest rate risk, rate risk, etc.  Credit rating agencies like Standard and Poor’s, CRISIL, and Fitch assign letter grades to indicate ratings. Each rating has a different meaning. For example, Standard and Poor’s credit rating varies from AAA (excellent) and D.   Any instrument with a rating below BBB minus is considered a junk bond. You should invest your money into bonds with high creditworthiness and, thus, less speculative.   The ratings become crucial when choosing between bonds of different entities.  What is the role of rating agencies in capital markets?   Assessment of credit risk is done by rating agencies for specific debt securities and borrowing entities. In the bond market, a rating agency assesses the creditworthiness of government and corporate debt obligations.   Two of the three major rating organizations provide ratings to large bond issuers. Rating agencies also give ratings to sovereign borrowers, the largest in most financial markets.   For example, some sovereign borrowers are national governments, municipalities, state governments, and other sovereign-supported institutions.   A rating agency gives the sovereign a rating to show its ability to fulfill its debt obligations.   The poor credit rating shows that the loan has a high-risk premium, and it prompts an increase in the interest charged to individuals and entities with a low credit rating.   A good credit rating allows borrowers to quickly borrow money from the public debt market or financial institutions at a lower interest rate. At the national level, investors use these ratings given by credit rating agencies to make their investment decisions.  Source: Pexels Impact of a Downgrade by a rating agency   Rating agencies downgrade companies primarily because of the danger of default, which can emerge from bad financial performance, declining cash and bank balances, increasing debt, lowering the debt service ratio, and worsening business circumstances and prospects.   Any news of the downgrading of any asset, particularly bonds, could cause a drop in price, resulting in a loss for the investors. Unrealized losses are often known as market-to-market losses.   A downgrade with a ‘rating watch’ might sometimes imply that the instrument will be downgraded further or the default on the debt will be initiated soon.   When a hybrid fund is downgraded, the immunity portion of the portfolio may lose value. When the downgrade is just one notch lower, with an outlook for an upgrade shortly, it can result in temporary volatility in the price.  How to make decisions?   As said above, if the downgrade is for a short-term instrument, you need not worry too much if the majority of these instruments are just one or two months away from maturity. However, if the downgrade is for long-term bonds, you must check how much of your investment is in these bonds. One can get this information from the monthly factsheets.   An exposure of 10% to 15% could be risky. To conclude, whenever a downgrade happens to a debt or a hybrid fund you have invested in, you must take care of the above aspects and then decide to exit or continue from the scheme. FAQs Why do investors prefer debt funds? Investing in debt mutual funds is gaining popularity among investors who are looking for a safe and convenient way to earn higher returns than traditional fixed deposits or savings accounts. What are the different types of debt funds for investing? Liquid Funds Ultra Short-term Funds Short-term Funds Medium-term Funds Long-term Funds Credit Opportunities Funds Dynamic Bond Funds What are debt funds? Debt funds earn through capital appreciation and interest income from fixed-income securities. Consider that a debt fund receives 10% interest per annum; this is divided by 365 and is added to the NAV every day. A debt fund’s NAV hence depends upon the interest rate and the credit rating of its portfolio. If the credit rating of one of the securities that a fund is invested into goes down (due to default), the NAV of the fund also depreciates.  Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Education is an investment in one's future, and many students opt for education loans to fund their studies. However, repaying an education loan can be a daunting task, especially with the high-interest rates involved. In India, education loans are becoming increasingly popular, and students need to be aware of the repayment process and schemes available to them. In this article, we will explore how to repay an education loan, the education loan process, interest rates applicable in India, and education loan repayment schemes that can help students manage their debt effectively. Whether you are a recent graduate or currently studying, this guide will provide you with all the necessary information to successfully repay your education loan.  Tips for Effective Education Loan Repayment Management  Repaying an education loan can be a challenging process, but it is essential to manage the debt effectively. In India, education loans are available for students pursuing higher education, with interest rates ranging from 6% to 12%. The education loan process involves applying for the loan, submitting the necessary documents, and getting approval from the lender.  Once the loan is approved, students must start repaying the loan as per the agreed-upon repayment schedule. Education loan repayment schemes are available, such as the Education Loan Subsidy Scheme, which offers interest subsidies for economically weaker sections, and the Post-Graduate Scholarship Scheme, which provides financial assistance to students pursuing postgraduate studies.  To repay the loan, students can opt for different repayment plans, such as the standard repayment plan, extended repayment plan, or income-based repayment plan, depending on their financial situation. It is crucial to make timely payments and avoid defaulting on the loan, as it can negatively impact the credit score.  To manage the loan effectively, students can also consider options such as loan consolidation, refinancing, or loan forgiveness programs. These options can help reduce the interest rate, simplify the repayment process, or even forgive a portion of the loan in certain circumstances. https://www.youtube.com/watch?v=4gTQkdePOWM Here are some additional points to consider when repaying an education loan:  Make a budget: Create a budget that takes into account your monthly expenses, including the education loan repayment. This will help you plan your finances and ensure that you have enough money to make timely payments.  Keep track of due dates: Keep a record of the due dates for your loan payments to avoid missing payments or defaulting on the loan. You can set up reminders or automatic payments to ensure that you don't miss a payment.  Consider prepayment: If you have extra funds, consider prepaying the loan. This can help reduce the interest rate and the overall cost of the loan.  Look for tax benefits: In India, there are tax benefits available for education loan repayment. Make sure to take advantage of these benefits and save on your taxes.  Seek professional advice: If you are facing financial difficulties, seek professional advice from a financial planner or counselor. They can help you develop a plan to manage your debt and avoid defaulting on the loan.  Negotiate with the lender: If you are having difficulty making your loan payments, consider negotiating with your lender. You may be able to get a lower interest rate or a more manageable repayment plan.  Consider part-time work: If you are currently studying, consider taking up part-time work to supplement your income and help with loan repayment. There are several online platforms that offer freelance work opportunities that you can consider.  Refinance your loan: Refinancing your education loan can help reduce your interest rate and make your monthly payments more manageable. Look for lenders that offer lower interest rates and better repayment terms than your current lender.  Avoid defaulting on the loan: Defaulting on your education loan can have serious consequences, including damaging your credit score, legal action, and difficulty in securing loans in the future. Make sure to make timely payments and seek help if you are facing financial difficulties.  Stay motivated: Repaying an education loan can be a long and challenging process, but it's important to stay motivated and focused on your goal. Remember that the loan is an investment in your future, and by repaying it, you are investing in your career and your future financial stability.  By following these tips and staying focused on your goal, you can effectively manage your education loan repayment and achieve your career aspirations without financial stress.  Guide to Education Loans Read More Conclusion  Education loans are a popular way for students in India to fund their higher education. However, repaying the loan can be a challenging process, especially with the high interest rates involved. It is crucial for students to understand the education loan process, interest rates, and repayment schemes available to them.  By making a budget, keeping track of due dates, considering prepayment, and seeking professional advice, students can effectively manage their education loan repayment and avoid defaulting on the loan. Additionally, negotiating with the lender, refinancing the loan, and avoiding defaulting on the loan are some other ways to make the repayment process more manageable.  Remember, repaying the education loan is an investment in your future, and with proper planning and management, you can achieve your career aspirations without financial burden. So stay motivated, stay focused, and take the necessary steps to manage your education loan repayment effectively. 

Saving money is something that everyone wants to do, but people often struggle with it. It can be challenging to find ways to cut back on expenses when there are so many things we want or need to buy. However, with a little effort and creativity, it is possible to save money every day without sacrificing too much. Why is saving money every day necessary? Everyday savings are important for several reasons. Firstly, it helps you build an emergency fund that you can use in case of unexpected events such as a job loss, a medical emergency, or a major home repair. Having an emergency fund can give you peace of mind and help you avoid taking on debt or relying on credit cards to cover unexpected expenses. Secondly, saving money every day can help you achieve your long-term financial goals. Whether you want to buy a house, pay for your children's education, or retire comfortably, saving money consistently is essential. By saving a little bit every day, you can accumulate a significant amount of money over time that can help you achieve your goals. Thirdly, saving money can help you reduce financial stress and anxiety. Financial stress can have a negative impact on your mental and physical health, as well as your relationships. By having a savings cushion, you can feel more secure and less anxious about your financial future. Moreover, saving money every day can also help you develop good financial habits and improve your overall financial health. When you make saving a priority, you are more likely to live within your means, avoid unnecessary expenses, and be more intentional with your spending. Practical strategies to save money every day. 1. Make a budget The first step after you think to yourself, “How can I save money every day?”, is to create a budget. Knowing how much money you have coming in and going out each month can help you identify areas where you can cut back on expenses. Start by listing all of your sources of income, such as your salary or any side hustles, and then list all of your expenses, including bills, groceries, and other miscellaneous expenses. This will help you see where your money is going and where you can make cuts. 2. Cut back on unnecessary expenses Once you have a budget in place, you can start looking for areas where you can cut back on expenses. For example, you may be able to save money by cutting back on your cable or streaming subscriptions, or by shopping around for better deals on your car insurance or cellphone plan. You can also save money by reducing the amount of energy you use at home, such as turning off lights when you leave a room or using energy-efficient appliances. 3. Shop smart When it comes to saving money on groceries and other household items, there are a few strategies that can help. First, always make a list before you go shopping and stick to it. This will help you avoid impulse purchases that can quickly add up. You can also save money by buying generic or store-brand products instead of name-brand items. In addition, look for coupons and sales on items you need as the best saving strategy. FD vs Savings Read More 4. Cook at home Eating out can be a major expense, so try to cook at home as much as possible. The best way to save money is by buying ingredients in bulk and planning your meals in advance. Not only will this save you money, but it can also be healthier than eating out all the time. 5. Use cash The best way to save your money every day is to use cash instead of credit cards. When you use cash, you are more aware of how much money you are spending and can avoid overspending. Plus, you can set a budget for each day or week and only spend what you have set aside. 6. Avoid impulse purchases Impulse purchases can quickly derail your budget, so try to avoid them as much as possible. If you see something you want to buy, take a few minutes to think about whether or not you really need it. Ask yourself if it is something that will bring value to your life or if it is just something that you want at the moment. This is the best strategy to save money. Conclusion  Saving money every day is all about being mindful of your spending and finding ways to cut back on unnecessary expenses. Making a budget, shopping smart, cooking at home, using cash, and avoiding impulse purchases; are the ways to save money every day without sacrificing too much. By making saving a priority and being intentional with your spending, you can create a better financial future for yourself and your loved ones. Remember, even small changes can add up over time, so start implementing these tips today and watch your savings grow. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Preparing your college application can be a daunting task, but it's an important step toward securing your future in higher education. As a high school student, you're likely to encounter a myriad of options when it comes to colleges to apply online. The right choice can pave the way for an enriching academic journey, but the wrong one can lead to missed opportunities. To ensure that you put your best foot forward, it's crucial to prepare your college application thoroughly. In this article, we'll provide you with essential tips for preparing your college application, including what to include and what to avoid. By following these tips, you'll be well on your way to creating an impressive application that showcases your potential for success in higher education. Tips for your college application 1. Start early One of the most crucial tips for preparing your college application is to start early. Many students make the mistake of waiting until the last minute to start working on their application, which can lead to a rushed and subpar result. Starting early gives you ample time to research your options, gather your documents, and prepare your application carefully. 2. Research the colleges Before you start filling out your college application, take the time to research the colleges you're interested in. Look at their admission requirements, tuition fees, programs offered, and campus culture. This will help you determine which colleges are the best fit for you and ensure that you're only applying to schools that align with your academic and personal goals. 3. Tailor your application When preparing your college application, it's essential to tailor it to the specific college you're applying to. This means paying attention to the school's admission requirements and ensuring that you meet them. You should also customize your application to highlight your strengths and experiences that align with the college's mission and values. 4. Focus on your personal statement Your personal statement is one of the most critical components of your college application. You have an opportunity to impress the admissions committee by showcasing your character, values, and accomplishments. To make your personal statement stand out, focus on telling a compelling story that highlights your unique qualities and experiences. 5. Avoid common mistakes When preparing your college application, it's important to avoid common mistakes that can derail your chances of admission. Some of these mistakes include submitting incomplete or inaccurate information, using inappropriate language, and failing to proofread your application for errors. 6. Seek guidance Preparing your college application can be a challenging process, but you don't have to go through it alone. Seek guidance from your high school counselor, college admissions advisors, and other trusted sources to ensure that your application is the best it can be. They can provide you with valuable feedback and advice that can help you improve your application and increase your chances of admission. 7. Use the same email address Another way to maintain consistency in your college application is by using the same email address. This will ensure that all communication from the colleges you're applying to will go to the same inbox, making it easier for you to keep track of everything. 8. Be consistent with dates When filling out forms, make sure that all dates (such as your birthdate or graduation date) are consistent. This will help avoid any confusion or discrepancies that may arise when colleges are reviewing your application. 9. Check for consistency in your essays If you're submitting essays as part of your application, be sure to check for consistency in your writing. For example, make sure you're using the same tense throughout the essay and that you're consistent in your use of abbreviations or acronyms. 10. Review your application for consistency Before submitting your application, take the time to review it for consistency. Double-check that your name, email address, dates, and other information is consistent across all forms and essays. This will help ensure that your application is accurate and professional-looking. 11. Consider using a checklist To make sure you're consistent in all aspects of your application, consider using a checklist. This can help you keep track of what you've already submitted and what still needs to be done, reducing the chances of mistakes or oversights. Conclusion preparing a college application can be a daunting process, but being consistent in your approach can make it easier and increase your chances of success. Starting early, researching colleges, tailoring your application, focusing on your personal statement, avoiding common mistakes, and seeking guidance are all important tips to keep in mind. Additionally, maintaining consistency across all aspects of your application, such as using the same name, email address, and dates, can help ensure accuracy and prevent delays or errors. By following these tips and striving for consistency, you can create an impressive college application that showcases your strengths and potential, setting you on the path toward a successful academic career.

Saving money is an important aspect of personal finance, and there are several different types of savings that you can consider. Each type of savings has its own unique features and benefits, and choosing the right type of savings can help you achieve your financial goals. Different savings types are designed to meet different financial goals.  Having different types of savings can help you plan better for your financial future. For example, if you have specific savings goals like a down payment on a house or your child's education, you can set up dedicated savings accounts to help you achieve those goals. This will assist you in creating a more structured and disciplined approach to saving.  By having a well-rounded savings plan that includes different types of accounts, you can achieve your financial goals and secure your financial future. In this article, we will discuss the types of saving options and their advantages. Types of savings plans in India for child education 1. Emergency savings Emergency savings are funds set aside for unexpected expenses such as medical emergencies, job loss, or home repairs. This type of savings should be easily accessible and liquid, such as in a savings account or money market account. Emergency savings are important because they can help you avoid taking on debt or relying on credit cards to cover unexpected expenses. 2. Short-term savings Short-term savings are funds set aside for expenses that you plan to make in the near future, typically within a year or two, such as a vacation or a down payment on a car. This type of savings should be kept in a relatively safe, low-risk, and liquid investment, such as a savings account or a short-term CD. One of the main advantages of short-term savings is that they allow you to plan for upcoming expenses without having to dip into your emergency savings or take on high-interest debt like credit card debt. By having dedicated short-term savings accounts, you can make sure that you have enough money set aside for your upcoming expenses and avoid financial stress or setbacks. Calculate Savings 3. Long-term savings Long-term savings refers to money that is set aside for financial goals that are more than five years away. This type of savings is often used for retirement, but it can also be used for other long-term goals like purchasing a home. When it comes to long-term savings, the key is to focus on growth. Unlike short-term savings that are usually held in low-risk accounts like savings accounts or CDs, long-term savings can be invested in a diversified portfolio of assets like stocks, bonds, mutual funds, or exchange-traded funds (ETFs). The reason for this is that over the long term, these types of investments have historically offered higher returns than savings accounts or other low-risk savings options. 4. Retirement savings Retirement savings are funds set aside for your retirement. This type of savings can include individual retirement accounts (IRAs), or other retirement savings accounts. Retirement savings are important because they can help you maintain your standard of living in retirement and ensure that you have enough money to cover your expenses. The National Pension System (NPS) is a government-sponsored pension scheme that allows individuals to save for retirement. It is open to all Indian citizens between the ages of 18 and 60 years.  Employee Provident Fund is a retirement savings scheme that is offered to employees in India. Public Provident Fund is a government-backed savings scheme that is open to all Indian citizens. 5. Education savings Education savings are funds set aside for your children's education. Education savings are important because they can help you avoid taking on debt or burdening your children with student loans. PPF is a government-backed savings scheme that allows you to save for your child's education expenses. The account has a lock-in period of 15 years, and the interest rate is set by the government each year. Sukanya Samriddhi Yojana (SSY) is a savings scheme designed specifically for the education and marriage expenses of girl children. The account has a lock-in period of 21 years or until the girl child gets married, whichever is earlier. Unit Linked Insurance Plan (ULIP) is a type of insurance plan that offers both investment and insurance benefits. A portion of the premium is invested in a diversified portfolio of stocks and bonds, while the rest is used to provide insurance coverage. ULIPs can be a good option for education savings as they offer tax benefits. Mutual funds offered by Indian banks and AMC are a great way to build your education savings. These funds provide long-term gains, and tax benefits and have the potential to beat inflation. As investors, you are required to invest a small amount monthly for attractive returns. The best-performing funds are those where investors remain invested for 10 to 15 years. Remember mutual funds can be risky and the potential for big returns is almost as high as massive losses. It is important to consult your financial advisor or invest with the help of experts who understand your needs and can recommend the best financial strategy for you.  Conclusion There are several different types of savings that you can consider, each with its own unique features and benefits. Emergency savings, short-term savings, long-term savings, retirement savings, and education savings are all important types of savings to consider when managing your personal finances. By choosing the right type of savings and being intentional with your saving habits, you can achieve your financial goals and secure your financial future. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Debt mutual funds belong to a category of investment plans that involve purchasing fixed-income securities like corporate bonds, government bonds, and money market instruments. The fund is operated by skilled fund managers who pool the funds of investors and invest them in debt securities that offer consistent interest payments. The primary objective of debt mutual funds is to generate a stable income for investors while preserving the capital invested. As the name suggests, these funds have a primary focus on debt securities, and the returns generated are usually in the form of interest income. Investing in debt mutual funds is gaining popularity among investors who are looking for a safe and convenient way to earn higher returns than traditional fixed deposits or savings accounts. Debt mutual funds offer several benefits to investors, such as diversification, liquidity, and tax efficiency. Diversification: Debt mutual funds invest in a variety of fixed-income securities, thus reducing the risk of a single borrower defaulting. When you diversify your investments across different places, you are dividing the risk. This protects your investment from the possibility that one place might not be able to pay you back. Liquidity: Investors can easily buy or sell shares in debt mutual funds without facing any penalty as they are highly liquid. This makes them an excellent option for investors who do not want to lock their money for a specific period. Tax Efficiency: Debt mutual funds are tax-efficient as they are taxed at a lower rate as compared to traditional fixed deposits. Moreover, they also provide indexation benefits, which help in reducing the tax liability for investors. How do rating agencies impact debt funds? Read More There are various types of debt funds in mutual funds to match the risk and return preferences of investors. Some of the most popular debt mutual fund types are: 1. Liquid Funds Liquid funds are short-term debt mutual funds that allocate their investments to money market instruments, including commercial papers, certificates of deposit, and treasury bills. They offer high liquidity and a low-risk option to park surplus cash for a short period. Liquid funds are suitable for investors who want to earn better returns than savings accounts or fixed deposits without the risk of loss of capital. 2. Ultra Short-term Funds As the name suggests, ultra-short-term funds invest in short-term debt instruments with a maturity of up to 1-year. They offer slightly higher returns than liquid funds and are suitable for investors with a slightly higher risk appetite. These are typically less volatile than longer-term debt funds, but they are still subject to interest rate risks, credit risk, and market volatility. However, they are still relatively safe investments and provide stable returns. They are a good investment option for investors who want to earn slightly higher returns on their short-term investments with relatively lower risk.  3. Short-term Funds One to three-year maturity debt securities are the focus of these funds. While they have a marginally higher risk, they also provide slightly higher returns compared to ultra-short-term funds. Short-term funds are ideal for investors who want higher returns than liquid or ultra-short-term funds but are not willing to take too much risk. 4. Medium-term Funds These funds are invested in bonds and other types of fixed-income securities with a maturity of 3-5 years. They offer higher returns than short-term funds but also come with higher risks. Medium-term funds are suitable for investors who want to earn relatively higher returns and are willing to take moderate risks. 5. Long-term Funds Long-term funds invest in bonds and other fixed-income securities with a maturity of over 5 years. They offer the highest returns among all categories of debt mutual funds but also come with the highest risk. Long-term funds are ideal for investors who have a long-term horizon and are willing to take risks for potentially higher returns. 6. Credit Opportunities Funds Credit Opportunities Funds invest in debt securities that are evaluated below investment grade or not considered at all. They offer higher returns as they take on higher credit risk. Credit Opportunities Funds are suitable for investors who want to take higher risks for potentially higher returns. 7. Dynamic Bond Funds Dynamic bond funds invest in a mix of debt securities of varying maturities based on the interest rate and economic outlook. These funds have the flexibility to switch between short-term and long-term debt securities, depending on market conditions. Dynamic bond funds are suitable for investors who want to take advantage of market volatility and are willing to take moderate risks for potentially higher returns. Conclusion Debt mutual funds offer a range of investment options to cater to different investor needs and risk appetites. They are an excellent investment option for investors seeking secure, and hassle-free means to earn higher returns. Before investing, investors must analyze their investment horizon, risk appetite, and financial goals to select the right type of debt mutual fund. They should also consider factors such as portfolio quality, expense ratio, and past performance while selecting a suitable debt mutual fund for investment. One should always consult a financial expert before making any investment decisions; our team of financial advisors is constantly available for your help and support whenever you require it.

In the previous article, we learned about what is financial planning. And the importance of financial planning. In this article, we will dive into the types of financial planning. Investment Planning  Investment planning refers to allocating funds towards various investment products to create a wealth corpus and generate continuous income.   It involves the analysis of short-term needs and long-term goals and then deciding how much money to invest in and in which asset class. Knowing how much savings you possess is the first step in investment planning.  Tax Planning   Tax planning is a way to optimize your investment returns smartly by minimizing your tax liability by channeling your investments into particular instruments.   With proper tax planning, you can have a higher post-tax income. Some ways to save tax are to hold your stocks for more than one year and prefer tax-savings schemes like ELSS.  Retirement Planning  This type of planning’s objective is to ensure that you have adequate resources to live after you stop earning. Achieving a good retirement requires good planning from an early age by investing and saving a proportion of your income for your future self.   The most important factors while considering your retirement plan are the rising inflation and the rising standard of living. Source: Pexels Cash Flow Planning  Cash flow planning is more of a daily process. It involves actively budgeting your income and expenses to maximize your savings by prioritizing necessary expenses over wasteful ones.  Insurance Planning  Having insurance is most important, even before having any other investment product. Insurance acts as a safety net for you and your investments.   Insurance planning requires planning the amount of life cover and health cover through various comparisons between individual and family floater plans to ensure protection.  Children’s Future Planning   Planning your children’s future is an important task – be it education or marriage, these are big-ticket expenses that require proper planning and investments.  Estate Planning  This type of planning entails the concoction of property investments; real estate investing is usually tricky because of the high investment amount and various government rules and regulations involved. However, with good consultation, real estate investments can be one of your best bets. FAQs What are the 7 types of financial planning? Investment Planning Tax planning Retirement planning Cash Flow Planning Insurance planning Children’s future planning Estate planning What are the main types of financial planning? The main types of financial planning are - personal finance, retirement planning, and tax planning. What is the value of a child's future planning? A child's future planning is extremely valuable. Especially when it comes to future college planning in this day and age. The cost of education is rapidly increasing worldwide with education inflation estimated at 10% which means your child's college will be much higher than the average increase in world income. Consult an expert advisor to get the right plan for you  TALK TO AN EXPERT

Have you ever wondered what the first year of studying abroad looks like? If your education plans involve moving overseas, then you may have harbored some daydreams of what an international education actually feels like.  What does it actually involve? What can you expect? Would it be everything you thought it would be? Is studying abroad worth it? These and a thousand other questions may be swimming in your head. What are some things you can expect in your first year of studying abroad? Well, read on to find out. 1. The Initial Euphoria The success of your education plans and study abroad dreams as well as the thrill of setting foot in a brand new country will bring about an initial euphoria. After all, this is what you always dreamed of. It is always exciting to embark on a new adventure. Everything is new, and everything is unfamiliar, and that brings a sense of discovery and inspiration.  Orientation week can be quite an adventure as you get to explore the campus and meet new people. While these first few weeks can be anxiety-inducing, they are also quite thrilling. You should take advantage of the light workload in these few weeks to explore the city and other surroundings. Talk to your classmates and roommates and go out for parties and outings with them. Once college starts in earnest and the workload increases, you may not have the time anymore. This is the perfect time to make new friends and find new haunts. Connections and discoveries made during this period will be useful to you for your entire college life. 2. The subsequent culture shock Once the euphoria of new adventures fades, you will be hit with culture shock. Starting a new life in a new country comes with a variety of shocks. After all, this is an entirely different place with an entirely different culture. The people here are different, they live differently and act differently, and socializing with them is a completely different experience. Not to mention the food, lifestyle, and even teaching can be different from what you are used to. It is important to stay in touch with home and family during these times. Being connected to family and friends back home helps with the alienation caused by the culture shock. Image by Ketut Subiyanto on Pexels Along with the culture shock, you may also experience a degree of homesickness when you study abroad. Living away from family and friends can take its toll. Since you are completely new to the country, you don’t have anyone with whom you have a deep connection yet. This means you don’t have anyone to share your feelings and thoughts with.  This loneliness can be combated by keeping in regular touch with those close to you back home. However, sometimes video chats and phone calls don’t cut it. Sometimes you need someone to be physically there for you. Do not hesitate to talk to your college counselor or psychologist. Counseling and guidance can help you overcome culture shock and homesickness. Your college counselors are also most likely experienced in dealing with international students and their issues.  Remember that the culture shock is temporary and you will soon start to adapt and fit into your surroundings. 3. More Responsibilities College life brings you a new set of responsibilities. The fact that you now live on your own means that you will have to deal with these responsibilities on your own. You no longer have your parents to rely on for emergencies. You have to develop the life skills and confidence to deal with issues on your own.  Image by Breakingpic on Pexels You will have to learn to do your own chores and run your own errands. You will also have to learn how to create your own budget. Now that you live on your own, you will need to learn to become a responsible adult. You may also have to take up a part-time job or a side hustle.  College life will be your first step into responsible adulthood. This will include learning new skills both big and small, from doing your own laundry to creating financial plans and budgets. All of these skills, big and small, make you a well-rounded adult. 4. Embracing Multicultural Learning Embracing a global education also means embracing a multicultural education. The diversity of cultures, nationalities, and ethnicities in foreign universities makes studying abroad a learning experience in more ways than one.  Just like the culture shock of landing in a new country, the culture shock of a multicultural classroom can initially be a bit much. However, you will soon discover the benefits of multicultural learning. In a classroom with people of different ethnicities, you will get more well-rounded and diverse views on the same topics. This makes learning in an international environment a much more wholesome educational experience. Being in a multicultural environment also helps you develop versatile social skills. Interacting with diverse people will help you understand how to make friends and connect with people across social and cultural boundaries. This can be a big advantage for you when you enter the job market. Multicultural experiences make you more desirable for companies that operate internationally or have a global clientele. 5. Acceptance The first year of studying abroad can be challenging. With the culture shock, the struggle of juggling classes and coursework with non-academic responsibilities, and many other struggles, hopefully, you will reach acceptance.  At the end of your first academic year abroad, you should be able to accept and embrace your new life as an international student. This is the final stage of any new life adventure. This is when you have discovered all the possibilities as well as limitations of your new life and learned how to adapt to them. You will have met new people, formed new connections, and settled into life in a foreign country. Only it's not so foreign anymore, is it? You now have a new home.  Studying abroad is a process of discovering yourself and discovering new homes for yourself. You find new niches that you are good at, and meet new people that you relate to, sometimes unexpectedly. All of this enables you to accept not only your new life but your new self. Apply for an Education Loan! Conclusion Going to study abroad can be both challenging and intimidating. College is scary by itself for new high school grads. When you add in the stress of acclimating to a new country and a new cultural environment, it can all seem a little much.  Your attitude matters when it comes to international education. You need to look at it as a new adventure. It is an adventure that will give you some grief but eventually help you become an adaptable, resilient, and versatile individual.  FAQs How do I start preparing for studying abroad? First and foremost, find out the cost of studying abroad using a calculator. This will help you understand how much you need in terms of tuition, living expenses, and miscellaneous expenses. Next up, start the application process, find out the deadlines, the scholarships available and what are the requirements for applying to your course. Start the application and after your admission is approved, start planning the actual move! When should you start preparing for studying abroad? Ideally, you should start preparing for studying abroad a year in advance. This will help you meet all the requirements like appearing for entrance exams, collecting LORs, or writing your SOP. You can also start searching for the best education loans if you are planning to take one. What is the first process of studying abroad? The first process/step of planning your study abroad journey is to find out the cost of studying and the best way to finance your education. Next is shortlisting the universities you wish to enroll at, checking the eligibility criteria, and figuring out the application process, deadlines, and requirements. The application process can take up to 6 months and even more for some universities. So think in advance.