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In the earlier article, we talked about the top 3 ETFs in the small-cap category. This article will look into the top three ETFs in mid cap category.  Before getting into the list of the top 3 ETFs in the Mid-cap segment, let's understand what Mid-cap is. What exactly is midcap?  Mid-cap companies haven't attained large-cap status, but they have a more substantial track record than small-cap businesses.   Their shares provide a perfect balance between the risks and benefits of their smaller and larger counterparts.  The market capitalization of a mid-cap company typically runs between $2 billion and $10 billion. As the name suggests, a mid-cap corporation sits halfway among large-cap (or big-cap) and small-cap businesses.  These businesses usually have a well-established business model and a strong presence in their respective industries, and they may see significant development as their market share expands.   Large-cap businesses are eager for mergers and acquisitions. However, past large-cap corporations that have shrunk in size and dominance are present in the mid-cap category.  Mid-cap stocks are low at risk, have low volatility, and have a lesser growth trajectory than small-cap stocks, but they are riskier, exhibit more turbulence, and have higher potential gains than large-cap firms.  For mid-cap equities, there are two key benchmarks The Russell Midcap Index is a subset of the broader Russell 1000 Index - it monitors roughly twice as many companies as more than 800.  The S&P Mid-Cap 400 Index measures the performance of 400 mid-sized corporations in the United States with market capitalizations ranging from $2 billion to $8 billion.  The top 3 recommendations in the mid-cap category ETFs  Rank ETF 1 Invesco Russell 1000 Dynamic Multifactor ETF 2 JPMorgan BetaBuilders U.S. Mid Cap Equity ETF 3 iShares Morningstar Mid-Cap Growth ETF  1. Invesco Russell 1000 Dynamic Multifactor ETF  The Russell 1000 Index's component securities’ rankings are given by OMFL based on their value, size, momentum, quality, and low volatility.  Oppenheimer uses a rules-based system based on fundamental economic statistics and global risk appetite to assess the current market cycle's state: growth, downturn, contraction, or recovery.   The fund adjusts its exposure to favor the elements that perform best in the current market. The aggregate factor score, adjusted by market cap, weights holdings.   By applying this dynamic overlay, OMFL takes advantage of the cyclical nature of factor performance. For this added benefit, the fund has a low price.  The MSCI ESG Fund Rating for Invesco Russell 1000 Dynamic Multifactor ETF is AA, with 7.67 out of 10. The MSCI ESG Fund Rating assesses a portfolio's long-term resistance to risks and opportunities posed by environmental, social, and governance variables  Performance  Performance [as of 14/03/22]1 year3 years5 years10 yearsOMFL1.79%17.46%--Russell 1000 Invesco Dynamic Multifactor Index2.08%18.04%-- The fund invests entirely in the USA.  OMFL Top 10 Holdings  Source: etf.com OMFL details  BrandInvescoExpense Ratio0.29%YTD Return-12.76%AUM$1.73BNumber of Holdings171Avg. Spread ($)$0.03Average Daily $ Volume$8.28M 2. JPMorgan BetaBuilders U.S. Mid Cap Equity ETF.  BBMC is a passively managed fund that tracks an index that tracks mid-cap firms across multiple sectors in the US stock market.   Although extensive and small-cap firms may be included, the index generally analyses firms between 85th and 95th percentile rank in market capitalization of the US investible universe.   Common shares, preference shares, and REITs are examples of equity securities. BBMC, part of the 'BetaBuilders' suite, provides plain-vanilla exposure to mid-cap stocks, which can be utilized as a core investment or complement BBUS and BBSC, respectively, covering the whole market and small-cap parts of the US equity market.   The fund will invest up to 20% in the future to track the index more closely. The index’s rebalancing is done every three months. The MSCI ESG Fund Rating of A for JPMorgan BetaBuilders U.S. Mid Cap Equity ETF is 6.01 out of 10.   The MSCI ESG Fund Rating assesses a portfolio's long-term resistance to risks and opportunities posed by environmental, social, and governance variables.  Performance  Performance [as of 14/03/22]1 month3 monthsYTDBBMC-5.53%-10.14%-13.71%MSCI USA Mid Cap Index-4.96%-9.73%-12.84% The fund invests only in the USA.  BBMC Top 10 Holdings  Source: etf.com BBMC details  BrandJPMorganExpense Ratio0.07%YTD Return-13.71%AUM$1.49BNumber of Holdings638Avg. Spread ($)$0.10Average Daily $ Volume$957.72K 3. iShares Morningstar Mid-Cap Growth ETF  IMCG is a growth-oriented, passively managed fund that invests in US midcap equities. Morningstar's index technique, which incorporates fundamental variables, is used to choose stocks.   This technique defines the selected growth companies as having above-average historical and anticipated income, revenues, equity, and operating cash growth.   The underlying index is recreated twice a year and quarterly rebalanced. Before March 19, 2021, the fund used the JKH ticker to track the Morningstar US Mid Growth Index. The MSCI ESG Fund Rating for the iShares Morningstar Mid-Cap Growth ETF is AA, with 7.27 out of ten.   MSCI ESG Fund Rating assesses a portfolio's long-term resistance to risks and opportunities posed by environmental, social, and governance variables.  Performance  Performance [as of 14/03/22]1 year3 years5 years10 yearsIMCG-6.11%15.48%15.81%13.25%MSCI USA Mid Cap Growth Index-8.62%14.87%13.46%12.67% The fund invests only in the USA.  IMCG Top 10 Holdings  Source: etf.com IMCG details  BrandiSharesExpense Ratio0.06%YTD Return-19.47%AUM$1.13BNumber of Holdings359Avg. Spread ($)$0.08Average Daily $ Volume$10.40M One should look out at these ETFs before investing in the mid-cap category in the USA. FAQs What is a mid-cap company? Mid-cap companies are those companies that have a market capitalization between $2 billion and $10 billion. What are the top 3 ETFs in mid-cap categories? Invesco Russell 1000 Dynamic Multifactor ETF JPMorgan BetaBuilders U.S. Mid Cap Equity ETF. iShares Morningstar Mid-Cap Growth ETF Are mid-cap stocks risky investments? Mid-cap stocks are low at risk, have low volatility, and have a lesser growth trajectory than small-cap stocks, but they are riskier, exhibit more turbulence, and have higher potential gains than large-cap firms.  Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

HDFC Asset Management Company Ltd. (HDFC AMC) is one of the largest mutual fund companies in India. It is among one of the most profitable asset management companies (AMC) in the country. The company manages assets worth Rs. 4,32,084.97 crores as of Mar 31, 2022. Let us talk about the consumer product – HDFC Balanced Advantage Fund. HDFC Balanced Advantage Fund Investment objective To provide long-term capital appreciation/income from a dynamic mix of equity and debt investments. Investment process The fund follows the following investment strategy 1. Equity Portfolio Construction Active management of equity portfolio focusing on stock selection. The process is based on the troika of quality assessment, earnings outlook, and valuations, with equal importance to each criterion. Additionally, positioning across sectors/market capitalization is given due importance and risk mitigation is achieved through appropriate sizing of exposure 2. Debt Portfolio Construction Active management of debt portfolio focusing on managing credit risk. The fixed-income investment philosophy emphasizes Safety, Liquidity, and Returns (SLR) in that order. Portfolio Composition The portfolio holds the major exposure in equity at 60% and the sectoral major exposure is Financials which accounts for roughly one-fifth of the portfolio. The top five sectors hold nearly 43% of the portfolio. Note: Data as of 31st Jan 2023.Source: Value Research Online Top 5 Holdings for HDFC Balanced Advantage Fund NameWeightage %HDFC Bank4.87State Bank of India4.57Coal India4.31ICICI Bank4.31NTPC3.46Note: Data as of 31st Jan 2023.Source: Value Research Online Performance Fund name1Y3Y5Y7Y10YHDFC Balanced Advantage Direct-Growth (%)17.7720.6412.5615.4715.33VR Balanced TRI* (%)7.4415.2511.3613.0712.13Hybrid: Dynamic Asset Allocation* (%)6.9611.688.6510.4711.69Data as on 03-Mar-2023; *As on 05-Mar-2023Note: Returns over 1 year are annualizedSource: Value Research Online Fund managers Mr. Srinivasan Ramamurthy (Since July 29, 2022) - Fund Manager – Equity - Collectively over 15 years of experience in equity research and fund management. Mr. Gopal Agrawal (Since July 29, 2022) - Collectively over 17 years of experience in Fund Management and 2 years in Equity Research Mr. Anil Bamboli (Since July 29, 2022) - Senior Fund Manager - Fixed Income - Collectively over 27 years of experience in Fund Management and Research, Fixed Income Dealing. Mr. Priya Ranjan (Since May 01, 2022) - Collectively over 15 years of experience. Senior Equity Analyst and Fund Manager for Overseas Investments Mr. Arun Agarwal (Since October 06, 2022) - Senior Fund Manager - Collectively over 23 years of experience in equity, debt, and derivative dealing, fund management, internal audit, and treasury operations. Mr. Nirman S. Morakhia (Since February 15, 2023) - Fund Manager and Dealer – Equities Who should invest in HDFC Balanced Advantage Fund? Investors looking to invest in an equity portfolio without the very high risk and with a differentiated portfolio strategy that is well diversified in terms of asset class, and can take bets depending on the overall macro-economic environment. Why invest in this Fund? BAFs are multi-dimensional in nature. When a market is overvalued, it inherits the qualities of a hybrid mutual fund scheme, with the ability to minimize equity exposure to up to 30%. Whereas, when a market is undervalued, BAFs can raise equity exposure to up to 80 percent. In stock, picking funds emphasizes earnings growth prospects, management, valuation, macro trends, etc., and is agnostic to market capitalization and does not have sectoral bias. Lastly, investors experience the optimum advantages of both asset classes ─ equity and debt. Horizon One should look at investing for a minimum of three years or more. Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market. INVEST IN THE FUND Conclusion The HDFC Balanced Advantage Fund is one of the oldest funds with a track record of nearly three decades and has delivered over 15% CAGR since its launch. Thus, it is best for investors who are willing to take some additional risk for good returns over a long-term spectrum. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

In our previous article, we highlighted the misconception that the “best” college equates with the “best fit” college. In this article, we discuss the parameters to consider when making your college list. With many organizations lauding their ranking tables, it is easy to get enamored by the guise of what is generalized as best. But selecting the “best fit” college goes beyond these generalizations - it requires an understanding of the university’s entire identity and comparing how a student’s identity matches it. In many ways, think of it as a partnership. Students need to ask, “Does that university have all the traits that I am  looking for?” “Does it offer me a wide array of stimulating classes?” “What do I as a partner bring to the table?”  As a student, it is important for you to research what is your “fit”. In other words, what are the aspects you value that a particular institution may or may not offer?  Let’s deconstruct academics first. The depth and breadth of a school’s course requirements can vary widely. Some institutions require you to pre-select a major prior to joining. At all UK universities, you have to pre-decide your major. You are required to apply to a specific course and you cannot change that in the future. Most courses in UK universities have a fixed curriculum over the three-to-four-year undergraduate program. If you’re someone who wants to be adventurous with course selection, the UK may not be the best fit for you.  Conversely, US universities offer varying degrees of flexibility in their courses. For example, Brown University and Columbia University are both a part of the ivy league, but for undergraduate students, their prerequisites are different. Columbia University has a very strict core curriculum, which is geared towards humanities, that all students have to take, irrespective of their major. On the other hand, Brown University challenges students to develop their own curriculum while completing their concentration requirements. As a student, you need to understand how much flexibility you want and whether the curriculum is aligned with your interests.   Another critical aspect of academics is teaching methodology. Universities such as Oxbridge (the University of Oxford and the University of Cambridge)  thrive on their tutorial and supervision style of teaching. As an Oxbridge student, besides attending lectures and classes, you have one-on-one meetings on a weekly basis with your tutor. You have a week to complete a pre-assigned problem set or write an essay on a particular topic. You hand this in a day before your weekly tutorial and then discuss your answers, oftentimes debating the topic in that meeting. Your tutor will probe you and this is how significant learning happens. This is the USP of an Oxbridge education. If you are someone that prefers attending large lectures and doing class reading and research on your own, then this would certainly not be the right place for you.   There’s also a life outside of academics that a student should consider. The ecosystem of a university extends to internship opportunities, extracurricular activities, and community involvement. If you’re an international student, you may be looking to be a part of a demographic community. The presence of such a community could be a strong reason for a student to apply to that particular school. University of California, Los Angeles, has an 11 percent international student intake for the freshman class, while 20 percent of Carnegie Mellon University’s first-year students are international.  Inclusion may be a big factor for some, however, access to internship opportunities may be a big priority to others. Universities such as  New York University have a strong career center and work to place students in internship roles as early as their second semester. Colleges in Canada have internships integrated into their courses through their co-op semesters. Usually, co-op programs have alternate work and study terms. For the work term, a student gets placed in an organization for a period of four months to gain real-world experience and they can also get paid for these months. Having access to such centers and leveraging work opportunities can shape a student’s decision of what really fits their goals.  Just as any partnership is a two-way street, so, too, is university selection. During the admissions process, colleges also want to understand why you are the “best fit” for them. Gone are the days when transcripts and test scores were the only determinants of whether a student should be given admission. Today, universities emphasize a more holistic approach while reviewing their next cohort of students. As future torchbearers, they will look at you as a totality of all your experiences. Your interests, how you see the world, and why you see it the way you do is an exceptionally important component of the admissions rubric. Essays, for example, help universities understand how you convey all of these points through your authentic voice and are therefore given (sizeable) weightage during the evaluation process.  The selection process is not only about how well a student did in the past, but how well they will be able to manage the rigor of college academics going forward. Universities also want to ensure that you will take advantage of the opportunities available within and outside of the classroom. Remember, these institutions invest a lot in premier faculty as well as resources for their community. Are you someone who will be proactive enough to leverage these resources toward your development? Equally important, are you someone who will bring a distinct perspective to share with your peers and the campus community?  Finding your fit is not just qualitative but quantitative as well. With the cost of a university education increasing substantially every year, it is necessary for you and your family to understand what funding looks like from a personal context. In the United States, for example, college prices have gone up 4.4% in just ten years. To put this into context, for the 2010-2011 academic year, the University of Chicago charged $40,188 in tuition (excluding room and board) whereas for the 2020-2021 school year, they charged $57,642. Such significant costs can have a bearing on selecting a school. Therefore, understanding your “fit” in the context of financing means introspection on the following questions. First, can my family and I afford the full price tag of this university? Second, do I require scholarships or aid? And lastly, if I do require funding assistance what sources are available for me and what are the respective criteria to apply?  With the COVID-19 pandemic, institutions are even keener to understand how students are creating opportunities during times of difficulty. University of California, Berkeley, saw 112,000 applicants (28 percent more than the previous year), while Harvard University had 57,000  (42 percent) more applicants than last year. Likewise, as world-class education becomes more accessible through technology, the need to understand your “best fit” becomes even more necessary. How a university has adapted to nourish students’ well-being and continues to provide the necessary tools to educate will become an important metric we use to measure fit. If anything, this will lead to an even more holistic evaluation method by both universities and students alike. FAQs How do I find the best-fit university? To find the best-fit university, you need to narrow down where and what you wish to study. After knowing the courses you want to study, figure out the best colleges for the program and then look into the eligibility criteria for the program. Being prepared regarding the qualifications, fees, and placement scenario of your prospective colleges is one of the biggest steps to finding the best-fit university. What does fit mean in university? A good fit college means a college that helps students achieve on all fronts- academically, physically, and financially. It helps students excel academically, allows them to explore extracurriculars, and gets them plenty of opportunities to find employment. How to find the right college in your budget? To find the right college in your budget, you can use the college cost calculator by EduFund. It will help you understand the different colleges and their fees in different parts of the world. You can find out the future cost of college as well using the calculator.

You all know the S&P 500 and the Nasdaq 100 or the Dow Jones Industrial Average. There are many more indices that represent the US financial markets. One such index is the Russell 1000 index.   What is the Russell 1000 index?  The Russell 1000 is a stock market index that tracks the performance of the top 1,000 publicly traded businesses in the United States based on market capitalization or the cumulative value of all of their outstanding shares.   It accounts for 1/3rd of the Russell 3000, comprising the 3,000 largest publicly traded corporations in the United States by market capitalization. The index is the equivalent of 98 percent of all publicly traded corporations in the United States.  Since the company's market capitalization changes over time, the FTSE Russell Group re-examines the rankings of companies in its indices every May to assure accuracy.   New firms that go public, such as through initial public offerings (IPOs), are added to the index quarterly if their market cap exceeds a certain threshold. Hence the index might have more than 1000 companies.   Digging deeper  The Russell 1000's holdings are determined by ranking all of the Russell 3000's stocks by market capitalization and determining the market cap threshold of the 1,000th stock ranking.   The significant market capitalization utilized to establish index eligibility is this breakpoint. Many stocks get exchanged at the annual reconstitution between the Russell 1000 and Russell 2000, but the market capitalization barrier is the deciding factor.  The top 10 Russell 1000 companies by market capitalization are  CompanyTickerAppleAAPLMicrosoftMSFTAmazonAMZNTesla Inc.TSLAAlphabet Inc Cl A (Google)GOOGLAlphabet Inc Cl C (Google)GOOGNvidia CorpNVDAMeta Platforms IncFBBerkshire Hathaway IncBRK.BJPMorgan Chase & Co.JPM The list mentions Google twice because of the two categories of shares.  FTSE Russell publishes the Russell 1000 Index's performance and attributes every month. The Russell 1000 had 1,013 holdings as of February 28, 2021, with an average market worth of $421.75 billion.   The median market capitalization was $13.5 billion, with Apple (AAPL) having the highest market capitalization at $2.07 trillion. The FTSE Russell Group maintains specialist indices that track the performance of Russell 1000 subsets, such as:   Russell 1000 Value   Russell 1000 Value Dynamic   Russell 1000 Value Defensive   Russell 1000 Growth   Russell 1000 Growth & Value   Russell 1000 Growth Dynamic   Russell 1000 Growth Defensive   Russell 1000 Global Exposure   Russell 1000 Pure Domestic Exposure   Other Indexes vs. Russell 1000 index The Russell 1000 and the S&P 500 are indexes that measure the top large-cap stocks in the United States. On the other hand, the S&P 500 only accounts for around 80% of the US stock market.   Russell 1000 index, on the other hand, follows twice as many companies as the S&P 500, accounting for around 92 percent of the US share market, including many mid-cap corporations.  The Russell 1000 may be more volatile than the S&P 500 since mid-cap firms are more volatile than large-cap stocks. Furthermore, because the S&P 500 rebalances quarterly rather than yearly like the Russell 1000, it provides a better picture of what the market is doing over the year.  How to invest in the Russell 1000 index?   Though it is feasible to invest in the Russell 1000 by acquiring each of the individual stocks, this would be time-consuming due to the index's size.   An ETF (Exchange Traded fund) or an index fund of the Russell 1000 is better for most investors.  While FTSE Russell does not offer any ETFs or index funds directly, buyers can find Russell 1000 ETFs or index funds through several funds. Through online brokerage, you can buy Russell 1000 ETFs or index funds. Some ETFs are Vanguard Russell 1000 ETF iShares Russell 1000 SPDR Russell 1000 ETF Is the Russell 1000 a good investment?  Various criteria influence whether or not the Russell 1000 index should be in your investment portfolio.   Most experts advise investing in a broad market stock fund, the Russell 1000. Moreover, the index provides you with more expansive coverage of the US economy. FAQs What happens when a stock goes into the Russell 1000 index? Once a stock goes into indexes, it's either subtracted or added based on some factors like trading volumes, share price, market cap, etc. With Russell 1000 being added to a company, the demand for its shares tends to increase resulting in increased volatility in the short term. What does the Russell 1000 index measure? A stock market index, the Russell 1000 measures the performances of the 1,000 largest public companies in the U.S. by market capitalization. Why is the Russell 1000 Index important? The Russell Index serves as the leading benchmark for investors, be it mega-cap or microcap. It allows investors to track historical, as well as current market performance through investment style or specific market segments. Is the Russell 1000 Index good? Russell 1000 Index is a good investment option for investors who are looking for large-cap portfolio exposure. It allows you to invest in the 1000 largest public companies in the US economy. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

The expense ratio is one of the most vital aspects of ETF investing. However, many investors are unaware of the fact that a portion of your portfolio is allocated to a charge termed an expense ratio each year. It's critical to understand the costs you're paying no matter what you're investing in.  And, given the prevalence of mutual funds and exchange-traded funds (ETFs), many of us pay an annual expense ratio out of our portfolios. You'll learn what an expense ratio is, why it's essential, and how to spot a good one when you see one. What is an Expense ratio? An expense ratio is a fee that a mutual fund or exchange-traded fund charges investors (ETF). This charge covers the costs of management, asset allocation, marketing, and other services.   These fees calculation are done as a percentage of an investor's annual cost. ETF expense rates are usually less than 1%. That means you spend less than $10 per year on expenses for every $1,000 you invest.  "In the simplest terms, an expense ratio is a convenience fee for not having to pick and trade individual stocks yourself".  - Leighann Miko, certified financial planner (CFP) and founder of Equal Financial, explains expense ratio The expense ratio is the reward for the fund managers for supervising the fund's holdings and coordinating investment plans in actively managed funds.   Activities of the fund manager include time spent choosing and trading securities, reallocating the portfolio, processing payouts, and other procedures necessary to keep the fund up to meet its objectives.  The expense ratio encompasses license fees paid to significant stock indices for passive funds and ETFs that don't actively select investments and instead try to replicate the underlying index.  Calculation of expense ratio  Expense ratio = Total fund expenses / Total fund assets under management How do they work?  The expense ratio is expressed as a percentage of your fund investment. A fund, for example, might charge 0.30 percent. That implies for every $1,000 you put into the fund; you'll pay $3 per year.   If you own the investment for the entire year, you'll have to pay this. However, don't think you'll be able to sell your funds right before the end of the year and escape paying the fee.   The management company for an ETF will deduct the cost from the fund's net asset value daily, making it essentially undetectable to you.  What does a reasonable expense ratio look like?  According to experts, an expense ratio of < 2% is low and > 2% is considered high. The higher your expense ratio, the lower your returns will be.  As per Morningstar, the weighted mean expense ratio for ETFs in 2019 was 0.45 percent. That's less than 1/2 from what it was in 1999, and the trend is anticipated to continue. It's a matter of opinion on what defines a decent expense ratio for an ETF. Investors aren’t liable to pay hefty prices to invest in ETFs, and they should focus on ETFs with competitive and consistent expense ratios.  What else should you think when it comes to the expense ratio?  Experts advise looking for reduced-cost funds so you don't lose a lot of money in fees throughout your mutual fund investment duration. It's not only the upfront costs; you're also losing the value of those assets as they compound.  Larger funds can frequently carry a lesser expense ratio because some expenditures, such as fund management, can spread over a more extensive asset base.  The smaller fund may need to charge more to break even, but as it expands, it may be able to lower its expense ratio to a comparable price.  Mutual funds may levy a sales load, which can be pretty high (up to a few percent) but is taken into account for the expense ratio. That's a different type of cost, and you must do everything you can to avoid funds that charge them. Major brokers provide many mutual funds with no sales load and low expense ratios. FAQs What is a good ETF expense ratio? According to experts, an expense ratio of < 2% is low, and > 2% is considered high. The higher your expense ratio, the lower your returns will be. Are ETFs expense ratios high? According to experts, an expense ratio of < 2% is low, and > 2% is considered high. The higher your expense ratio, the lower your returns will be. It’s a matter of opinion on what defines a decent expense ratio for an ETF. Investors aren’t liable to pay hefty prices to invest in ETFs, and they should focus on ETFs with competitive and consistent expense ratios. Is the expense ratio charged every day? If you own the investment for the entire year, you’ll have to pay this. However, don’t think you’ll be able to sell your funds right before the end of the year and escape paying the fee. The management company for an ETF will deduct the cost from the fund’s net asset value daily, making it essentially undetectable to you. Is expense ratio important in ETF? An expense ratio is a fee that a mutual fund or exchange-traded fund charges investors (ETF). This charge covers the costs of management, asset allocation, marketing, and other services. These fees calculation are done as a percentage of an investor’s annual cost. ETF expense rates are usually less than 1%. That means you spend less than $10 per year on expenses for every $1,000 you invest.  TALK TO AN EXPERT

A stock exchange is used to sell and buy ETF shares. When you purchase or sell ETF shares, you are dealing with another investor rather than the Fund Provider (e.g., Blackrock, ProShares) via a stock market.  A stock exchange is a platform where several investors can buy and sell shares simultaneously for a set price. Orders are instructions to buy or sell stocks.   It is the responsibility of the exchange to organize all these bids because each investor receives the best possible price that meets their requirements.  When trading ETFs, an investor can employ a variety of orders To purchase and sell ETFs, some investors use market orders. A market order instructs you to instantly buy or sell ETF shares at the prevailing market price.   A market order does not describe the price you wish to trade; instead, it specifies the number of shares you would like to swap. These orders are straightforward to comprehend and carry out. "You want to buy 25 units of the Vanguard Total Stock Market (VTI) at the best accessible price," a market order says. Source: pexels Market orders should not be made because? 1. You have no control over the pricing The price displayed on your broker's website is not always the price upon which the transaction is completed. The purchase can be made at a more excellent or lower price than what you planned.  2. The broker may request more outstanding account balances than required If you wish to buy ten shares at market price, you see a cost of $100, and you have $1000 in your account, your broker may want more significant balances in your account than you need.   Even if your cash amount appears to be sufficient to fulfill a market order for ten shares, your broker may need a more extraordinary account because it does not know when your market order will be fulfilled.  Limit orders do not have these flaws. They give you price control and, as a result, don't force you to keep a more significant amount in your account than is required.  A limit order instructs you to purchase or sell a precise amount of ETF units at a specific price. Only if someone else is willing to transact with you at that price will the limit order be honored.   A limit order is similar to saying, "You want to buy 25 shares of the Vanguard Total Stock Market (VTI) ETF and am ready to pay up to $50 per share" or "You want to sell 25 shares of the Vanguard Total Stock Market (VTI) ETF, and the lowest you will go is $50 per share."  The bid and ask are terms used to describe the price at which market players are willing to swap ETFs. The highest price at which an ETF share can be purchased is the bid.  The lowest price at which an ETF share can be sold is the ask. You can also glance through the order book to get a complete list of current buy/sell orders.  The likelihood of your limited order being executed and the time required for it differ based on your specific price. You can generate orders with prices identical to or better than the bid and ask if you want to fill your limit orders quickly.   A purchase limit order with a price a cent higher than the bid or a sell limit order with a price a penny lower than the ask is what we mean by slightly better.  Just because ETFs can be traded the same way as regular stocks don't imply, they should. Investors should understand the distinction between a market order and a limit order and why one trading approach may make more sense in some situations but not in other contexts. Viewpoints may sometimes turn prospective losses into gains. FAQs What is a limit order for ETFs? A limit order is a range you set when you are about to buy or sell a stock or ETF. It can be easy to make a decision when the stock or ETF is in between the range.   Why use limit order for ETFs?    The bid and ask are terms used to describe the price at which market players are willing to swap ETFs. The highest price at which an ETF share can be purchased is the bid. The lowest price at which an ETF share can be sold is the ask. You can also glance through the order book to get a complete list of current buy/sell orders.    The likelihood of your limited order being executed and the time required for it differ based on your specific price. You can generate orders with prices identical to or better than the bid and ask if you want to fill your limit orders quickly.    How do you set a price limit on an ETF? If you wish to buy ten shares at market price, you see a cost of $100, and you have $1000 in your account, your broker may want more significant balances in your account than you need.    Even if your cash amount appears to be sufficient to fulfill a market order for ten shares, your broker may need a more extraordinary account because it does not know when your market order will be fulfilled. Limit orders do not have these flaws. They give you price control and, as a result, don’t force you to keep a more significant amount in your account than is required. A limit order instructs you to purchase or sell a precise amount of ETF units at a specific price. Only if someone else is willing to transact with you at that price will the limit order be honored.   What is the risk of a limit order? The risk of the limit order is that the investors can never execute their order if the stock or ETF doesn’t fall under the range. There is also the possibility of a lack of liquidity in the stock to fill the order when the stock reaches the range.   

You worked hard on your grades, you had your extracurriculars in shape, and your college essay was edited and proofread. For all your preparation and planning, sometimes things just don't go right. Sometimes you get rejected. It is likely that you will experience at least a few rejections in your college application journey. How do you cope with rejections? What went wrong and what can you do to fix your mistakes? A rejection can put a big wrench in your study abroad plans. Here are some tips to deal with them.  Why was your college application rejected? There are many reasons why your college application may get rejected. Sometimes it may be because you just don’t meet the cut. College admissions are extremely competitive. Top universities are looking for the best GPAs and CVs when making their final decisions. You may be an extremely bright and brilliant student but your education plan likely does not account for the brilliance of your peers and competitors. This is why, when you are planning on studying abroad, it is important to apply to colleges whose requirements meet your qualifications.  Some other common reasons why your application may have gotten rejected are: You missed the deadlineThis is a relatively simple but shockingly common reason why your application may have gotten rejected. Colleges are dealing with vast numbers of applications. Any application that may have missed the deadline by even a few minutes may end up in the rejection bin.  Your application was incompleteIt is possible that your application was incomplete or didn’t include all the documents, information and other requirements requested by the college. This is common when you are applying to multiple colleges. You may end up missing or ignoring some specific or uncommon requirements made by particular universities. Your application was not edited properlyWhile it is understandable that college admissions can be extremely stressful, you should always take care to edit your application carefully. An application that is too long will be sent straight to the rejection bin because admissions committees do not have the time to go through long essays. If your essay is full of silly mistakes and typos, it reflects badly on you and such an application may again get rejected. Your application does not reflect why you are choosing that particular universityAdmissions committees do not just want to know what you are offering them, they also want to know what they are offering you. As an international student, you need to be clear on why you are applying to that particular university and why you want to study abroad.  What can you do? The first thing you should do is review your application. See if you made any of the mistakes we mentioned above and take steps to fix them. One rejection should not derail your study abroad plans and you can ensure this by making sure you do not repeat the same mistakes. Apply to safe schools and backup colleges to make sure that even if you get rejected from your dream college, you still have someplace to rely on. Dream for the best but plan for the worst. Your education plan should have space for a Plan B. Pay attention to the guidelines and requirements of each college you apply to. Make separate folders for application materials and documents required for each college. Copy the guidelines and list of requirements of each college to a Word document and save it in its respective folder. This way you can make sure that you do not miss anything or hand in an incomplete application. Pay attention to deadlines. Mark each deadline on your calendar and place the calendar in a prominent place so you don’t forget any deadline or rush in to submit at the last minute. Also, remember to properly edit and proofread your applications. You can ask your parents, siblings or friends to help you with this. The second pair of eyes will be much better at catching mistakes.  1. Do not lose hope You must remember that while a rejection letter may seem like the end of the world, it is only an opportunity for re-evaluation and review. It is likely you had a meticulous education plan in place. This rejection is only an opportunity for you to re-evaluate those plans and see where you went wrong and what you can do differently.  Do not lose hope because there are always other schools. In fact, you may find that those other colleges are much better suited for you. The rejection could very well be an opportunity to look for a college that is a better fit for you.  Try not to obsess over your failure and the reasons thereof. Instead, take some time off. Spend time with friends and family. Engage in hobbies and activities that you are good at to remind yourself that you are valuable and capable. Rejections do not have to define you. Always remember to take your failures as a lesson rather than a judgment of your worth. A rejection may in fact encourage you to review your life and your plans and send you in a different, better-suited direction. 2. Advice for parents Even your best plans for your children’s education can go awry sometimes. It is important for you to remember that this is possibly taking an even bigger toll on your child. Make sure you do your best to be there for them during this difficult time. Comfort them and assure them that you are there for any help and support they may need. Try to distract them from the failure and remind them that after all, failures are the stepping stones to success. If possible, you can look into higher education counseling to offer further professional help and support for your child. Good counseling and guidance can help you and your child recognize what went wrong and be better prepared for future applications. Counseling can also help you reach out to your kids and offer comfort in the best way possible.  FAQs How do you deal with rejection from universities? There can be many reasons for dealing with rejection from universities, from incomplete application submissions to not making the cut-off for the course. The best way to deal with the rejection is to take a short-term course or hobby that will help you cultivate a better application for the next round. Find out what your application lacked, work towards strengthening your CV/resume, and try to focus on building a strong career. How do you mentally prepare yourself for rejection? Rejection is extremely common and happens to everyone. It is important to not let it get you down and focus on trying to improve yourself and work towards your strengths so that you can avoid this event in the future. You can opt for career counseling, take a gap year, or even take up a job that can help you build a stronger application for your future. Is it normal to get rejected from college? It is normal to get rejected by colleges. Most colleges take in over 10,000 applications every year for one course from across the world. It can be cut-throat especially when the seats are limited and the competition is global. Try to keep your head up and apply to multiple universities so that you have a backup plan in place in case your best-case scenario does not plan out as planned.

Studying overseas does not just mean moving away from home to go to school elsewhere. It is an experience, overseas education can help broaden your mindset and add value to your life. It is the beginning of a series of changes that you are likely to experience as you move to study abroad. While things may seem uncertain in the beginning, don’t worry, because it only gets easier. In no time, you will find yourself surrounded by diverse people who think differently, speak different languages, and have unique skills. It is the beginning of self-discovery. Over time, you will likely begin to find that your mindset has broadened far beyond what it once was. Suddenly, you are not limited by the beliefs that you grew up with or the thought processes you had before.  This is just the beginning, the proverbial tip of the iceberg. 1. Coming out of your comfort zone Indeed, traveling to a foreign country does not just mean getting out of your country. Instead, it starts with you coming out of your comfort zone. There are plenty of things that go into preparing yourself to study abroad, and these all eventually contribute to you becoming a more well-rounded, capable adult in the long term.  Getting ready to move away, knowing that you will be leaving your friends and family behind for some time, while they cheer you on from afar - this itself can be a challenge. Nothing worth having comes easy. - Theodore Roosevelt Sure, it may seem uncertain and you may have plenty of doubts in your mind, but remember, you are about to embark on the journey of a lifetime. The experience will show you new things, expose you to a new way of thinking, and reveal to you beauty that you could never have imagined. At the same time, there are plenty of new responsibilities and things to take care of. All of these things are about to contribute to you becoming a much more comprehensive and mature person in life. 2.  Living in a multicultural society When you move abroad to study, especially in countries like the USA, Australia, Canada, Europe, and New Zealand, you will find students of different backgrounds, cultures, and races from different parts of the world. Meeting individuals from different cultures and interacting with people from different origins is an excellent way to broaden your mindset. You will experience firsthand what makes other cultures great, and learn things from them that you would have never otherwise known about.  New languages, speech patterns, expressions, delicious food, and more are just some of the things you will get to enjoy when you study abroad that will greatly benefit you in developing a broader understanding of the world we live in. 3. Getting used to living Independently At home, it is easy to get used to having things done for you. Once you have moved out, it can be difficult at first to adjust to doing everything by yourself. This means managing your grocery shopping, laundry, cooking, household chores, and more before you even have a chance to sit down to study. Now while this may seem like a bad thing, the opposite is true in the long term.  The level of responsibility and independence you will experience is just what you need to develop the life skills that contribute to a well-rounded life. Finally, you can take control of your life completely, and the feeling it gives you can be exhilarating. 4. Experimenting and trying new things While it may be slightly more challenging to find the same food and kind of people that you are used to, that is not the point of studying overseas. Instead, you’d want to immerse yourself in the new and unfamiliar. This is the single most effective way to experience new things and broaden your horizons. Trying out new kinds of food from diverse cuisines, speaking to people from lesser-known cultures, and getting to know what life is like for them will give you a much deeper perspective on life.  You will find that many of the things we take for granted are in fact blessings that others might not be used to. All of these experiences will help you grow as a person and gain a greater appreciation for life and where you come from. You could soon find yourself in the company of greats who excelled in life after studying abroad. 5. Adapting to change Getting used to a new way of life is a big part of studying abroad. At first, moving to another country can be extremely difficult and intimidating. Students often have second thoughts just before leaving - about whether or not they want to go through with it. This is for good reason.  There is a good chance that it will be a while until you see your family and friends again, do the same things you are used to, and stay in your own house. Instead, you are likely to be looking for shared housing, trying to work out your daily routine, finding the bus route to your university, and much more. Since you are about to experience a whole new lifestyle, it can be easy to get overwhelmed by the sheer amount of changes that you will go through within the first few weeks.  Rest assured, you can get through it, just like everyone else eventually does. Once you get used to a new way of life, you can start to enjoy living it the way you want to. Especially in the start, it helps to build a strong group of friends that you can speak to whenever you feel low or unmotivated. Conclusion Studying abroad is one of the most exciting and challenging things young students can do in their lifetimes. Filled with new experiences, challenges, and triumphs, many students come out of the experience unrecognizable from when they first arrived.  Traveling to a new country, trying out new food, and studying under a different education system are just some of the things that you are about to go through. With that said, the best way to help you along your journey is to find a group of like-minded students who are going through the same thing that you are. Helping each other cope and thrive through challenges is a powerful way for you to build a strong support group in your new home away from home. No matter which country you choose to study in, you are sure to jump straight into a new world that would allow you to grow as a person, develop your personality, and broaden your mindset.  Our sincere advice would be to embrace the change, be excited to learn new things, and most of all, enjoy yourself along the way! FAQs What are the advantages and disadvantages of the overseas education system? The biggest advantages and disadvantages of overseas education are that helps you understand a new culture and allows you to enhance your learning. The sheer amount, of course, opportunities can help you build a global career. A huge disadvantage can be the financial aspect of studying abroad and feeling homesick. Why foreign education is better than in India? Foreign education can be better than Indian education in some areas. Especially in terms of STEM, where countries like the USA, UK, Germany, or Canada can offer students a better and more nuanced infrastructure for experimentation and discovery. Foreign education is also a gateway to living abroad for many students; it helps families move to different countries for settlement and permanent residency. What are the benefits of going abroad after the 12th? The greatest benefit of going abroad after the 12th is the chance to be independent and self-sufficient. Studying abroad means managing your own life, experiencing a new culture, and learning important lessons like budgeting, time management, and money management. It helps you grow as a person and take adulting to new heights. TALK TO AN EXPERT

Why should you have an education fund dedicated to your child’s college education? Don’t you already have to worry about saving up for your home, your retirement, and any other emergency that may arise? With all these goals it might look daunting to have another fund for education as well. Is it such a big deal? Well yes, It is a very big deal! Here are the top 4 reasons why you need to start saving up for education, as soon as you can, even if your child is just 4 years old! 1. The cost of education will most likely jump (a lot!) education-cost-jump In India, the cost of education is increasing at a rate far higher than the inflation rate. According to a report by the National Sample Survey Office (NSSO) - between 2008 and 2014, the average annual private expenditure for general education (primary level to post graduation and above) shot up by a staggering 175 percent while during the same period, the annual cost of professional and technical education increased by 96 percent. ‍The expenses typically include course fees, books, transportation, coaching, and other related costs. A recent ASSOCHAM survey also reflected this trend -  parents are ending up spending almost 50% of their income on children’s education, today. Studying abroad provides more options to students compared to the highly competitive and increasingly expensive higher education landscape in India. However, getting admitted into a premier institute abroad requires students to shell out nothing less than a crore/per year, just for tuition fees. For e.g. Stanford’s tuition fee for its MBA program is USD 140000/year and which is more than one crore, considering the currency rates that are prevalent now. Even if you factor in an inflation rate of just 10%, it's going to cost double the amount to send your child to college, say 15 years later, than what it costs today. Whichever destination you might choose to send your child to college, the money that you are going to spend, just on tuition fees, will be very high. 2. To avoid dipping into your retirement corpus! retirement-corpus It is more prudent to maintain separate funds for your savings and your child’s education. ‍This is due to the simple reason that no one is going to give you a loan to take care of your expenses post-retirement. While your child may get a loan that will fund his/ her education expenses, you need to make sure that you and your spouse, are not dependent on one post your retirement. Hence, EduFund comes to the rescue! 3. Let your child be debt-free! Education loans are easily available from banks and other financial institutions and are attractive to many students who are not able to afford higher education – especially abroad. But then again, education loans are termed at extremely high-interest rates, not to mention the collaterals attached to them. In this scenario, having an education fund will help. Your child will not start her career with a debt burden hanging over her choice of job. And with the growing uncertainty in jobs due to the current global economic slowdown, there is no job security that assures steady income to pay off an education loan. 4. The Competition is just going to increase! The competition to get into the best colleges, foreign or Indian, has always been high. We all know the importance of studying well to get into the best colleges. But the increasing population and increasing enrolment in higher education have ensured that what was possible to achieve with 80% marks in the year 2000, now requires at least 95% marks. And, there are more people competing for the same number of seats. So, getting into one’s college of choice on merit alone or with a scholarship is going to be much more difficult than it was. In fact, parents are now having to prepare to handle competition even for KG admissions for toddlers. Many of them start planning right at child-birth on which school their child should go to. So, start planning now! When you start early, you have the freedom of choice in college as you don’t have to worry about the cost of college. Having a corpus fund for education to draw from when the time arises is imperative to ensure a good education and a good career for your child. And even if your child’s choice of career changes as time passes, you can adapt and be ready with the funds, when required. FAQs What is EduFund? EduFund is an investment app dedicated to helping Indian parents save, invest and plan for their child's education needs. How can EduFund help you? EduFund can help you invest, save and plan for your child's education needs. It allows you to customize your plan, and invest in tools like mutual funds, US stocks, ETFs, and digital gold to diversify your investments. It sets long-term and short-term goals for parents and children to save up time and help them achieve their goals. EduFund also helps you with education loans and connects you with the best loan partners in India and USA. How can you set up an account with EduFund? You can download the App from Play Store or apple store and set up your account free of cost. All you need is a bank account, an Aadhar, and a pan card to open your account and start investing in mutual funds. Conclusion We live in a world that is marred with competition, whether it's getting into a good college, or choosing the right investment instrument, being prepared for the future equips you to handle things better. The stability of having a corpus and not being dependent on an education loan is a reassuring move for your child to choose his/ her dream college. An EduFund may seem a far-off thing today, but it is a necessity for the future. Plan, invest, and educate! Invest Now!

A systematic investment plan or SIP is the best plan that helps you invest in mutual funds on a regular basis.  You can choose to invest weekly, monthly or even quarterly – the most popular choice being monthly. There are multiple reasons why SIPs are the best way to grow your money especially when you have a goal to plan – e.g. your child’s education. SIPs can be bought easily and you can start with a very low amount - Rs. 500 per month. In this blog, we will talk about the ‘Big 5 advantages’ that SIPs offer to you as a parent. But before that, let's understand what a SIP is What is SIP? A SIP or systematic investment plan is an investment mode through which an investor can create a regular mechanism of investment for themselves. Let's take the example of investor X. Investor X wishes to invest Rs. 10,000 every month in a mutual fund. In this case, investor X can create a SIP for a fund they want to invest in and the money will be deducted every month automatically (the deduction can be weekly, monthly, or even quarterly, depending on the investor's choice). Think of it as a recurring deposit, with better returns. Now that we know what a SIP is, let's get to know why investing via SIP is the best choice you can make to enlarge your corpus. CALCULATE MONTHLY SIP 5 Reasons SIP is the best These are the 5 main reasons why you should invest via a systematic investment plan to reach your financial goals 1. Suitable for Long-Term Investment Any financial advisor will tell you that if you want to invest long-term, SIP is the way to go. The reason is simple, regular investing and automatic deductions keep investors motivated to stay invested and reach their investment goals quicker. During the 2008 financial recession, many people withdrew money from mutual funds. However, the ones that remained invested via SIP, attained a huge profit once the markets rose. Long-term investing makes sure that even if the market is down at the moment, once the markets rise, the investor will make profits. 2. Goal-planning ‍SIPs are good tools to plan for a future goal – to buy a 4-wheeler or to pay for college tuition fees maybe 10-15 years from now. When you determine the amount required to achieve your goal, you will know how much you should invest and how long it will take to reach your goal. This will help in planning effectively. Having financial goals is very important to creating a financially secure future. One must have a defined idea about what financial goal one wants to reach by the age of 30, 40, 50, and so on. 3. Effect of Compounding Compounding is one of the biggest advantages of a SIP. Over time your investments grow because you start earning returns not on your principal amount, but on the interest that keeps getting added to it. Let's take an example. Suppose you invest Rs.1,000 in a mutual fund that gives you a yearly return of 10% p.a. Your amount becomes 1,100. at the end of the first year. At the end of the second year, the rate of return is 11%, this time the returns will be calculated on Rs. 1,100 and not the principal amount, which is, Rs. 1,000. ‍This ensures the growth of your corpus and is one of the reasons why experts advise you to not withdraw your investments when the market is down. 4. Curated by Experts With the increasing number of fund types like equity, debt, mixed, gold-based, etc. there is a wide variety to choose from based on your risk appetite and preferred investment duration. This has led to customized offerings based on individual needs, supervised by experts in the SIP domain. All you need is to specify your goal and timeline and you are provided with the best possible funds that can meet your future goals. ‍SIPs have become popular over the past few years, because of the ease of investing and the flexibility provided in terms of the amount of money that can be invested. You can stay invested as long as you want, although average returns have been higher when invested in the long term. Research also shows that the returns offered by SIPs are more than recurring deposits in banks, in the long term. 5. Automates Your Investment Experience SIPs automate your investment experience, which makes you a regular investor. It is easy and convenient and because of the online surge, today, it is super easy to invest via SIP. If you choose the lump sum method, you will have to manually invest an amount and there may be times when you can miss an installment. ‍With automated installments and a streamlined process, investing via SIP has now become an extremely popular method, to reach long-term goals like saving up for your child's education. FAQs Why is SIP investment good? By investing through SIPs, you will do away with the burden of timing the market as you could then avail the benefit of Rupee Cost Averaging. By investing through SIP, you will tend to invest in the up and down markets. This helps you shy away from the volatility of the market. Additionally, you will benefit from the power of compounding, which fundamentally generates returns not only on capital but also on returns. Is SIP good for students? Investing in SIP can be a huge benefit for students. It cultivates a healthy investment habit, and they can invest a small amount to start their journey. SIP is best for beginners and a comparatively safe investment vehicle. What are the features of SIP? A SIP offers the following features: It is best for long-term investment, brings financial discipline, allows small investment amounts, benefits from the power of compounding, and is a comparatively safer investment tool. Why do people prefer SIP? A systematic investment plan helps bring discipline to an individual’s investment habits. A SIP will automatically deduct a pre-decided amount periodically. Investors also do not need to worry about timing the market while investing via SIP. It is one of the best investment vehicles for beginners. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Choosing the right career path is difficult especially if you are looking at non-traditional career options. It is also hard to make sure you and your parents are on the same page about your career path. Especially, if your dream job is a little offbeat. Parents want nice, safe careers for their kids that offer maximum job security and chances of success. You may not want the same things as your parents and that is okay. But to bring them to your side, you will need a plan. The right conversations and the right counseling can make all the difference between endless arguments and unconditional support. Here’s what you need to do! Plan your education and career Before you embark on your dream career, you need to get your dream degree and for that, you need a plan.  You can create a document or presentation titled ‘Education Plan’ or ‘Career Plan’ to show your parents that you have given this thought and effort. The reason why most parents are scared of their children choosing unconventional careers and degrees is that these careers are not always reliable. They may not be as well-paying or as secure as traditional career paths. You need to lay those doubts to rest!  The best way to do this is to let your parents know that you have considered the risks yourself and have a clear plan of action in place. This includes having a clear idea of what kind of degree you want and where you can get with this degree. Be flexible Most undergraduate-level degrees give you access to a wide range of job opportunities. You may have your heart set on a specific dream job, but you need to let your parents know that you have backups in place. Include the varieties of jobs you hope to secure with the degree you are choosing in your Education Plan.   Also, make a list of your dream colleges. You will need to do thorough research to figure out which colleges are the best fit for you. Decide whether you want to stay in India or study abroad. You should also find out what kinds of jobs the alumni from your prospective colleges have secured. You can even try and get in touch with these alumni to see if they can give you some career advice.  Figure out and tell your parents about the kinds of internships you intend to take while in college and the kind of projects and extracurriculars you plan to pad your CV with.  With a meticulous plan in place, your parents will be able to trust and support you in your ambitions. Funding your education You may not have figured out where the funding for your education will come from and that is okay. You are young and have probably never had to think seriously about financial matters before this. Your education is going to be the most profitable financial investment of your life and your parents probably already have plans in place. If you haven’t communicated with your parents about your career goals, then their plans and your dreams may not exactly align. This is why while you are researching careers and degrees, you should also research fundraising for education.  There is more than one way to finance your education There are many ways of funding your education. Tuition fees differ depending on whether you plan to study in India or study abroad. Different countries have different college fee structures. Scholarships and Fee Waivers are one way to fund, but there is no guarantee of always receiving them. A very common way of raising education funds in India is Education Loans. These loans can be secured through banks or other financial institutions like EduFund. If an education loan is the best way for you to secure your funding, you should thoroughly acquaint yourself with them. It is important to understand the exact terms of the loan and the payment plans set forth by the bank or financial institution providing the loan. You could also use an Education Loan Calculator to figure out the specifics of how much funds you can raise through loans and how much you will have to pay back. Usually, you start paying back an education loan after you graduate. Get education counseling and guidance Never underestimate the difference a good education counselor can make. Counselors are well-versed in the intricacies of career and education planning. They can help you understand the details of how to apply for universities and entrance exams and how to prepare for them. They can also act as a mediator between you and your parents if they are not very supportive or comfortable with your career choice. Your school might already provide counseling services that you can avail of. If that is not the case you can look for education counseling for students online. Free counseling services are sometimes available, some counselors offer an initial free session so that you can figure out if their services are suitable for you.  The counseling is for guiding both you and your parents. Students have big dreams but often don’t take practical considerations in mind. Meanwhile, parents look out for their children and want the best for them, but even their best plans for their children’s education may not always align with their children’s dreams. Good counseling can help bridge these gaps. It can provide you with some much-needed and helpful perspective when it comes to the practical side of career and education planning. It can also help you communicate better with your parents and make them more supportive of your dreams.  What happens next? So, you have an education plan in place, you have secured funds and you have undertaken to counsel. But, what comes next? After all, a degree is only the beginning. But what happens once you have secured admission? Well, something a lot of students with grand education plans don’t consider is - the need for flexibility. While having a dream job and being passionate about it is important, it is also good to be adaptable. Once you actually start your degree and start talking to your teachers, peers, and seniors, you may realize that your dream job is not ideal for you. You also may develop different interests or discover new and exciting, alternative career avenues that you had not considered earlier.  It is important that you keep your eyes and ears open for alternative careers and backups while working towards your dreams. Keeping your career options and CV diverse is very wise and ensures that you don’t end up ‘stuck’ in a dead-end career or a job that no longer fulfills you. Most undergraduate degrees offer skillsets that are usually widely applicable. Be aware of the applicability of your skills in different professions and make smart career decisions.  FAQs What are some non-traditional career options for children? Here are some non-traditional career options for children that are lucrative and in demand such as - Veterinarian YouTuber/Social media personality Data analyst/scientist Dietician UI/UX designer How does career counseling help children? Career counseling helps children decide what they can do in the future. It helps them align their interest and aptitudes. It is the best tool to help your child determine what careers are most suitable for them and can give them an opportunity to use their unique skills. Consult the best education counselor right here - click now! What is the best way to finance your child's non-traditional career? The best way to finance your child's higher education is through investments. Investments like mutual funds, stocks, and ETFs can help you keep up with the growing prices of colleges and education in general. You can also opt for education loans that offer attractive interest rates.

A student loan is likely the first step many students take towards financial independence, and just as with other loan applications, lenders will look into your credit score when considering your application for an education loan. To determine a student's capacity to repay an education loan, lenders investigate their creditworthiness. In this blog, we will discuss the impact of your credit score on your ability to get approved for an abroad education loan and tips for improving your credit score. Importance of credit score for abroad education loan When you apply for an education loan, a lender will check your credit score; this goes for both co-borrowers and students. When applying for an education loan, a student's credit score may be crucial, but if they don't have one, the lender will base their loan conditions on the credit ratings of their co-borrowers. A student's chances of getting financial help might be improved by meeting the lender's other qualifying standards and having a high credit score: a lower interest rate a lender approval that comes more quickly a larger loan sum for schooling an increased credit limit  a lengthier term How is the credit score calculated? Every time a person contacts a bank or other financial institution for a loan of any type, the bank or financial institution will request the CIR (Credit Information Report), which is the person's unique credit history from credit. Their credit history determines their credit score, which ranges from 300 (Worst) to 900. (Best). It is unimportant to be concerned if you haven't applied for any loans yet because your credit score will always be negative or zero. The credit score is primarily based on four factors: Repayment history - One's regularity, consistency with prior EMI payments, and other factors. A mix of loans - Several loan kinds (secured and unsecured) they have previously obtained. Credit limit - use of the credit card's or any other credit line's credit limit. Multiple loans at one time - the frequency with which they've requested or applied for loans recently. How to compare education loans? READ MORE How your credit score impacts your student loan? If you're wondering if taking out a student loan would affect your credit score, the answer is yes. Education loans, like other loans, affect your credit score if they are returned on time; if they are paid late, your score may be negatively impacted. The bulk of student loans is repaid in installments over a defined period of time. You begin to establish a history as a result of the lender reporting this to credit reporting companies. When you pay your bills on time, you'll begin establishing a solid track record for handling credit. Nonetheless, the following credit score levels are suggested for students wishing to get an educational loan to study abroad: RangeLoan Probability300-599If your credit rating is at this level, you should carefully review your financial records and concentrate on any pressing problems that could be the root of your low rating. Your chances of being approved for an education loan are decreased since financial institutions frequently see credit scores of less than 600 as being exceptionally bad.600-749Those with credit scores in this range are still qualified for student loans. Yet, the majority of banks and NBFCs are quite picky about loan applicants achieving the minimal credit score standards for education loans. 750 and aboveA credit score of 750 or above is required to be eligible for an education loan. This credit score may be used by lenders to determine the financial dependability of co-applicants and individual applicants. Tips for improving credit score The following are possible causes of your low credit score as well as suggestions for how to raise it: Overuse of credit limit: Using your whole credit limit is a sign that you lack self-control when it comes to spending. Try to keep your balance between 30 and 50 percent of your total credit limit. You'll use credit less as a result, improving your credit score. Late and failed payments: Your credit score declines if you often skip or postpone loans or credit installments. Set up reminders to pay back all borrowed money on time; this will help you build credit and get better loan conditions in the future. Rejected loan requests: Wait before submitting an application for a new loan if your previous one was rejected. When your credit score declines with each loan denial, there will be a higher chance of a fresh loan denial in such situations. Improve your credit score as a top priority to be eligible for loans. You can then file a loan application with better conditions after doing this. Be aware that the procedure can be lengthy, and loan approval can be quite difficult if you have low credit, but you may still be able to receive any other loan because the banks will keep the collateral as security until you have paid the whole loan amount plus interest. Also, it's possible that you'll only be given unfavorable loan terms and circumstances. Some of them might have greater interest rates or longer payback schedules. Consult an expert advisor to get the right plan TALK TO AN EXPERT

When an ETF's Volatility is taken into account, an investor may find it challenging to determine which fund offers the best risk-reward ratio. Learn about the four most popular volatility metrics and how they're used in different types of risk assessments here. What is Volatility ETF? Volatility is a parameter of how quickly the price of a security fluctuates over time. It expresses the degree of risk linked with a security's price movements.   Investors and traders measure a security's Volatility to assess past price fluctuations and forecast future moves. Types of Volatility 1. Historical Volatility The historical volatility indicator shows how the price of the security has fluctuated. It helps to forecast future price fluctuations based on historical trends.  However, it does not provide insight into the future direction or trajectory of the security's price.  2. Implied Volatility This is the underlying asset's Volatility that will yield the theoretical value of an option equivalent (derivatives) to the option's current market price.  In option pricing, Implied Volatility is a critical factor. It offers a forward-looking perspective on potential price variations in the future.  Most popular volatility metrics Standard Deviation The standard deviation measures an ETF's Volatility or the likelihood for earnings to rise or fall dramatically over a short period. A volatile investment is one that poses a more significant risk since its performance can swing either way dramatically The standard deviation of an Exchange Traded Fund assesses this risk by determining how much the fund varies from its mean return. For example, a fund with a steady four-year return of 7% will have a mean, or average, of 7%. Since the ETF's return in any given year does not depart from its four-year mean of 7%, the standard deviation for such an ETF would be zero.   An ETF that returned -15%, 17%, 12%, and 20% in each of the previous four years, on the other hand, would have an average return of 8.5 percent.  This fund would also have a significant standard deviation because the fund's return departs from the mean return each year.  As a result, this fund is riskier because it swings back and forth between favorable and unfavorable returns in a short period. Beta While standard deviation measures a fund's Volatility based on the spread of its returns over time, beta, another relevant statistical measure, compares a fund's Volatility (or risk) to its index or benchmark.   When a fund's beta is very near to one, it suggests that its behavior closely resembles the underlying index or benchmark. A more extensive beta implies that the market is more volatile than the benchmark, whereas a beta below suggests that the fund is less volatile than the underlying benchmark Let's take a small example about the market; the lower the beta, the less susceptible the underlying instrument is. The QQQE has a beta of 1.04, according to ETF.com, which suggests that if the Nasdaq 100 rises by 1%, the ETF will climb by 1.04 percent. Investors who anticipate a bullish market may buy funds with high betas, increasing their chances of outperforming the market. If investors expect negative demand shortly, funds with a beta of less than one are a suitable pick because they might lose less than the benchmark.  R-squared The R-squared of a fund tells investors whether an ETF's beta is adequate compared to a benchmark.  R-squared explains the degree of association between a fund's fluctuation and market risk, or, more particularly, the extent to which a fund's variability results from the general market's day-to-day variations by calculating the relationship of a fund's movements to those of an index. R-squared values vary from 0 to 100, with 0 denoting no correlation and 100 representing complete correlation. If the R-squared value of a fund's beta is near 100, the fund's beta should be trusted.  An R-squared score near zero, on the other hand, shows that the beta isn't very relevant since the ETF is being evaluated to an inadequate benchmark. More than that, the beta will be skewed by an incorrect benchmark. Because alpha is determined using the beta, it's best not to trust the number provided for alpha if the fund's R-squared value is low. Alpha The amount of additional risk that enabled the ETF to outperform its matching benchmark is measured by alpha.  Using beta, alpha evaluates the fund's return to the risk-adjusted returns of the benchmark and determines whether the fund outperforms the market, being consistent in terms of risk. For instance, if a fund's alpha is one, it exceeds the benchmark by one percent. Negative alphas are wrong since they suggest that the ETF underperformed for the fund's investors' additional, fund-specific risk. These are some factors that should help you evaluate the risk associated with ETFs. However, one must also consider their risk appetite before investing. FAQs How do you calculate the volatility of an ETF? The standard deviation measures an ETF’s Volatility or the likelihood for earnings to rise or fall dramatically over a short period. A volatile investment is one that poses a more significant risk since its performance can swing either way dramatically. The standard deviation of an exchange-traded fund assesses this risk by determining how much the fund varies from its mean return. What is a good volatility ETF? The standard deviation of an exchange-traded fund assesses this risk by determining how much the fund varies from its mean return. For example, a fund with a steady four-year return of 7% will have a mean, or average, of 7%. Since the ETF’s return in any given year does not depart from its four-year mean of 7%, the standard deviation for such an ETF would be zero. An ETF that returned –15%, 17%, 12%, and 20% in each of the previous four years, on the other hand, would have an average return of 8.5 percent. This fund would also have a significant standard deviation because the fund’s return departs from the mean return each year. As a result, this fund is riskier because it swings back and forth between favorable and unfavorable returns in a short period. What is a good volatility percentage? The standard deviation of an exchange-traded fund assesses this risk by determining how much the fund varies from its mean return. For example, a fund with a steady four-year return of 7% will have a mean, or average, of 7%. Since the ETF’s return in any given year does not depart from its four-year mean of 7%, the standard deviation for such an ETF would be zero. An ETF that returned –15%, 17%, 12%, and 20% in each of the previous four years, on the other hand, would have an average return of 8.5 percent. This fund would also have a significant standard deviation because the fund’s return departs from the mean return each year. How does a volatility ETF work? A volatility ETF will move in the opposite direction to the popular stock market indices. When the stock market index moves up, the volatility ETF will decline. 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