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The education of their children remains an aspirational goal for every Indian parent. Every parent wants and strives to provide the best quality education and seeks to fulfill the dreams of their children. However, the burgeoning cost of education - both in India and abroad has been a cause of concern for parents looking for higher education for their children. While the cost of education in India has grown significantly over the past decade, the cost abroad is no better - owing to inflation in the local currency and rupee depreciation over the years. Now, since education is getting expensive, it is critical to have a defined savings plan from an early age - something that is affordable for parents to keep aside and gives a runaway to accumulate. For example, if parents start to save for their child's education immediately after the birth of the child, they would get a runway of 18 years for a bachelor's and 21-22 years for a master's. Starting early would help the power of compounding to work in your favor and help you get closer to the goal with a smaller sum too. The amount kept aside for this defined and critical goal balloons with every year's delay (see chart below).   2020 2030 Cost of Tuition Fees (Rs Lakhs) 25 49 Cost of Living (Rs Lakhs) 10 20 Total (Rs Lakhs) 35 69 Note: Inflation considered at 7% for both tuition fees and living costSource: EduFund Research Cost of delaying – SIP amount increases with every year skipped Note: A return of 12% is considered for the SIP computationSource: EduFund Research Let us now see an example of two parents - Abhishek and Sneha. The situation at hand –                                                         Objective – To send a child abroad for engineering education·      Abhishek – Looking for Education Loan @ 8%·      Sneha – Looking to invest systematically and accumulate corpus in 10 years, expecting returns of 12%   Abhishek and Sneha want to send their child abroad for engineering education when she turns 18. While Sneha believes in accumulating the amount by investing in a mutual fund every month, Abhishek feels opting for an education loan makes more sense. Both Abhishek and Sneha have a 10-year horizon where Sneha would save for the period aiming to make 12% returns annually, and Abhishek is looking to repay the loan borrowed at 8%. Let us evaluate which is a better plan - The Results Corpus required -   2020 2030 Cost of Tuition Fees (Rs Lakhs) 25 49 Cost of Living (Rs Lakhs) 10 20 Total (Rs Lakhs) 35 69 Sneha's investment plan: Systematic Investment Plan (SIP) – Rs 30799 per month for 10 years Abhishek's loan plan: Equated Monthly Instalment (EMI) – Rs 83716 per month for a time duration of 10 years What we see is to reach her goal of global Education, Sneha set aside Rs 37K through SIP to accumulate the corpus. Abhishek, meanwhile, gets instant access to the corpus but ends up paying Rs 83716 in monthly installments. Also, by the end of 10 years, he pays Rs 31 as interest making education costs rise 45%. Both Abhishek and Sneha would have to make monthly payments, but Abhishek would pay substantially more every month. Abhishek would also spend much more on the same Education than Sneha. When to use an Education Loan? Despite starting to save early for a future defined and aspirational goal, a parent may still face a shortfall in the corpus. The reasons for the shortfall can be varied. For example, one instance could be because of the change in the nature of the goal. For instance, you might have budgeted for sending your child to Singapore but may end up sending them to the US where the cost is comparatively higher. However, this possible shortfall is not an excuse but is a function of change in the plan. In such circumstances, it makes sense to fulfill the gap with an education loan. Also, it gets to avail of a loan for part cost and not the full cost. Is it possible to reduce your SIP initially and pull it up? Of course, yes, you can always go for milestone planning where you can define a start-point, specific deadline, and final goal. This method ensures you map your SIP to your pocket size, and as time passes by, you tend to increase the outlay towards the goal. Thereby following an exponential roadmap rather than a simple straight line which may not be affordable in the initial years due to multiple other expenses. To sum up, we can say the following - Based on the child's currency age, a parent can start planning for higher education. This helps in being pocket friendly and remains disciplined for a defined liability that is due to come in a few years. Dividing the goal into smaller milestones and targeting each milestone helps the parent have a roadmap to the goal. This ensures a pocket, friendly method of investing. Education loan is available on short notice; however, it should be used to fill the gap instead of dependence on the full corpus. This strategy will allow you to fund your child's education with minimal stress. FAQs How much should we save for a child's education? Education inflation has been rising at a steady rate in the past few years. Parents should be aware of the significance of saving early to be in a position to afford their child's future education costs. The cost of education varies depending on the choice of course, so it's better for parents to start saving early, so they can adjust their portfolio once they have a goal in sight.      What is the best way to save money for a child in India? It goes on without saying that mutual funds have been gaining traction over the past few decades, and the burgeoning size of the assets under management has made people think of the investment vehicle. Also, with declining or unfavorable returns on instruments such as fixed deposits, provident funds, and the like, the most lucrative option remains – mutual funds. However, not all mutual funds would be able to help you achieve your target. Thus, you need to plan as per your risk appetite so that you do not derail from the track of your defined event.  Why should parents invest early in their child's education? While the cost of education in India has grown significantly over the past decade, the cost abroad is no better – owing to inflation in the local currency and rupee depreciation over the years.   Since education is getting expensive, it is critical to have a defined savings plan from an early age – something that is affordable for parents to keep aside and gives a runaway to accumulate. For example, if parents start to save for their child's education immediately after the birth of the child, they would get a runway of 18 years for a bachelor's and 21-22 years for a master's. Starting early would help the power of compounding to work in your favor and help you get closer to the goal with a smaller sum too.   What is the best investment for a child's education?   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 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.  

With the rising demand and value of knowledge, education is getting expensive every year. The inflation in education is possibly higher than household inflation which is deterring the financial preparedness of parents for an aspirational and defined event like education. Talking of the primary school, per the data of NSSO (National Sample Survey Office), the annual expenditure on the private child has increased by a whopping 200% over the last ten years. In contrast, the higher education expense has been more amplified during the period. Thus, it is essential to have a dedicated financial strategy in place for education as one has it for retirement. It would help if you base your strategy on the basis of needs, and implement it with a sound investment portfolio so that over the long term, during your child's education (India or abroad), the cash flow doesn't become difficult in your pocket. Plan for your child's future needs 1. Know the cost The most fundamental problem for a parent is not knowing or understanding the total cost that will be incurred in his/her child's education. Given that education inflation is much higher than household inflation, it is crucial to assess the cost of education as the necessary first step. To estimate the cost, a parent should look out for an answer to the following questions - Which country do you want to study in? (for example, US, UK, Canada, etc.) What degree are you targeting – bachelors or Master's? What type of college are you targeting? (example, rank between 1-5, 5-25, etc.) Which course/discipline are you looking at? (for example, Management, Engineering, etc.) What is the tuition fees currently of the selected college? What will be the future value of the tuition fees when your child goes for education? To give a simple estimate, a post-graduate program in IIMs during 2010 was in the range of Rs 4-6 Lakhs. A decade later, the program is costing around Rs 22-25 Lakhs. The same program is likely to cost nearly a fortune a decade from now. Even if the rise in the cost is pegged at 5%, the cost increases to 40 Lakhs for your child's education at a premier university. Now, another essential cost that parents tend to miss is the cost of living. The living cost has been rising exponentially, and thus it would be useful to add to the tuition cost provided the accommodation is not likely to be provided by the university. While the dynamics of the universities may change in a decade or two from now but it is always better to be over-prepared than to be under-prepared and scout for funding options at the eleventh hour using illiquid assets such as real estate. Thus, it is advisable to add the cost of living that is likely to be incurred should your child go to another city/country for his/her bachelor' and/or Masters' degree. 2. Investing in mutual funds for a child's education It goes on without saying that mutual funds have been gaining traction over the past few decades and the burgeoning size of the assets under management has made people think of the investment vehicle. Also, with declining or unfavorable returns on instruments such as fixed deposits, provident funds, and the like, the most lucrative option remains - mutual funds. However, not all mutual funds would be able to help you achieve your target. Thus, you need to plan as per your risk appetite so that you do not derail from the track of your defined event. The following are some tips to get started Make investment your habit. Similar to how you would pay your EMI and bills on time every month, put aside a small amount every month for different goals. The method is called a systematic investment plan. A SIP works best for both - salaried and business class. Now, how do you get how much to invest? Well, it is not very complicated as you may think and neither every number will help you get there. All you need is an investment advisor who can analyze and plan your personal finance. Similar to how Doctor is for a patient, the advisor is for an investor. The advisor focuses on your income, expenses, dependents, liabilities, time horizon, goal amount, and the like to arrive at a risk profile. Based on the risk tolerance, the advisor helps you shortlist the funds that will suit your risk profile. Benefits of investing by way of SIP 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-market and the down-market. 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 returns also. How do you choose the funds for your Child's Education? Deciding to invest in mutual funds is only the first step. Selecting which fund to invest in is a broader choice to make. Hence, you must research how to invest in mutual funds, which funds have delivered remarkable historical returns over the long term, how much risk you can afford, and what your investment horizon is. The choice must be made depending upon your specific requirements of generating adequate corpus in the long term to fund your child's education. You must carefully keep a check on the following before you make your decision- Look at the time that you have to stay invested in a fund to achieve your target amount. If you have more than ten years in hand, you can consider investing fully in equities as it offers the highest growth potential. However, if you have between 5 and 10 years in hand, it might be more suitable to opt for a balance between equity and hybrid funds. Instead of investing in just a single fund, diversify your investments across at least two or three different funds. Closer to the horizon, consider shifting from equity to debt funds and lastly when you reach very close to the goal, consider capital protection as objective and not appreciation and look for safer funds such as liquid funds. When should you plan? “I made my first investment at age eleven. I was wasting my life up until then” -    Ace Investor Warren Buffet When it comes to investing, starting early is the key to ensuring that you're financially secure. For instance, if you start saving at the birth of your child, in 18 years by investing only 21K per month, you can accumulate as much as Rs 1.5 crore which should suffice for the global education of your child (assuming 12% annual returns). To sum up, the following are the key points on how to put mutual funds in the task of your child's education planning - The cost of education is rising. Thus, it is crucial to start saving at an earlier date to avoid a future financial burden. Do not mix insurance with investment - as you would have seen in multiple cases. Insurance provides risk management, whereas mutual funds provide returns. The financial strategy of investing in a mutual fund is a combination of time, risk appetite, income level, and target amount. Investing regularly helps keep the market volatility at bay and inculcates investment discipline in your savings plan. FAQs How to invest in mutual funds for child education?   Deciding to invest in mutual funds is only the first step. Selecting which fund to invest in is a broader choice to make. Hence, you must research how to invest in mutual funds, which funds have delivered remarkable historical returns over the long term, how much risk you can afford, and what your investment horizon is.   Where can I invest money in education?   It goes on without saying that mutual funds have been gaining traction over the past few decades, and the burgeoning size of the assets under management has made people think of the investment vehicle. Also, with declining or unfavorable returns on instruments such as fixed deposits, provident funds, and the like, the most lucrative option remains – mutual funds. However, not all mutual funds would be able to help you achieve your target. Thus, you need to plan as per your risk appetite so that you do not derail from the track of your defined event.  What is the best investment for kids?   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 child education?   With the rising demand and value of knowledge, education is getting expensive yearly. Make investment your habit. Similar to how you would pay your EMI and bills on time every month, put aside a small amount every month for different goals. The method is called a systematic investment plan. A SIP works best for both – salaried and business class.   Consult an expert advisor to get the right plan TALK TO AN EXPERT

It is universally acknowledged that education is a very powerful weapon. Education can transform an individual and colleges can broaden a child’s horizon. Every child deserves to receive a quality education. There are various reasons why global education is the best for Indian students. ‍From our experiences, we know that when a student receives a world-class education, it helps them become their best version – professionally and personally. Pursuing higher education outside of India seems to be promising in more ways than one. In this blog, we will talk about how studying abroad can affect your life for the better. Let's get started. 5 Reasons why Global Education is the best for Indian Students When you think about it, there are innumerable ways in which a global education can benefit an Indian student. In this article, we will talk about the 5 major ones. Let's get started. 1. Changes Your Life, for Good! International exposure to study at a foreign university and the experience of living in a new country can be life-changing! The combined power of both results in gaining practical knowledge that can help you in life immensely. Living alone in a foreign country can be daunting in the beginning, but it teaches you an immense number of values, and ethics, and not to mention, you become a pro chef! You learn what is not written in the textbooks. Such experiences also shape your personality and groom you as a responsible professional. 2. Holistic And not just Academic Development The Indian education system offers academic rigor. However, there still is room for improvement and development. The cut-offs in premier Indian colleges soar to touch the sky. But whether these colleges provide excellent holistic development is still a big question mark. Regardless of the foreign country you prefer to study in, most global universities focus on not just academics, but also professional qualifications, leadership, and personal development. Foreign programs have gained popularity because the faculty is invested in a student's all-around growth. 3. Opens closed doors Whether it is studying for a master's abroad or a Ph.D. – Foreign universities offer what you commonly don’t find in India. An array of courses across all fields and subjects like - Artificial Intelligence and Data Security or Criminology, and Media Relations. You name it and they have it. As per reports released by the USIEF, in 2019, Indians studying in the U.S. made up 17% of the international student population there. If you want to take the road less traveled or pursue a career in a highly specialized niche, global education opens closed doors. 4. Brighter Career Prospects ‍Indian students who have received good foreign education have an edge over others. You wonder why? Recruiters view international experience as an asset. It is reflective of many things like your skills to compete in a global setting and your ability to adapt to diverse cultures. Global education helps you hone your skills and grow exponentially. ‍After completing their degree, outstanding students can bag an international job as well. 5. Diversity They appreciate unique students. Many top-notch B-schools and other universities seek to promote diversity and inclusion. This means that the admissions team deliberately tries to encourage people from different walks of life to join the classroom. Highly reputed universities welcome meritorious international students. Some even try to strike a balance in their gender ratio thereby including talented girls and giving them an equal chance to fly. As the saying goes- "Sometimes the smallest step in the right direction ends up being the biggest step of your life!" Take the first step towards a brighter future. And, live the life of your dreams! FAQs Why is global learning important for students?   International exposure gained while studying at a foreign university and the experience of living in a new country can be life-changing! The combined power of both results in gaining practical knowledge that can help you immensely in life.  What is the value of global learning?   ‍Indian students who have received good foreign education have the edge over others. You wonder why? Recruiters view the international experience as an asset. It is reflective of many things like your skills to compete in a global setting and your ability to adapt to diverse cultures. International education helps you hone your skills and grow exponentially.  Why foreign education is better than Indian education?   They appreciate unique students. Many top-notch B-schools and other universities seek to promote diversity and inclusion. This means that the admissions team deliberately encourages people from different walks of life to join the classroom. Highly reputed universities welcome deserving international students.    Why do Indians prefer foreign education?   Indian students prefer foreign education because of many factors. Studying at an international university will give students great exposure in terms of meeting people from different cultures and countries. It will also create excellent employment opportunities abroad. Having studied at a foreign university will add value to a student’s resume.   Conclusion These are some of the major reasons why global education molds an individual for the better. In reality, there are many more points that one can consider. Whether it is the quality of education- or the experiences one attains, education abroad is a stepping stone toward untapped opportunities. We know many of us are now thinking, "What about the funds required to study abroad?". Well, saving up for higher education is not as hard as you think.

College applications and admissions season is a stressful time for both students and their parents. Your son or daughter may still be a child but they are embarking on their biggest adventure yet! It makes sense to be afraid and worried. It doesn’t help that your child is likely in their angsty, rebellious teenager phase and may not be willing to listen all the time. So, how do you support your child anyway? How to make sure that they know you are there for them without suffocating them?  Well, here are some ways. 1. Plan for your child This is your child’s first time stepping into the real world and making big decisions. As a parent, you should try your best to make sure that their path is as smooth as possible. It is likely that you already have education plans in place, and you might also have made investments in your child’s education. These investment and education plans are important since they are the first step to ensuring your child gets his or her dream career. You should learn more and acquaint yourself with ways of saving up for your child’s future.  Besides financial planning, you should also research colleges and universities that would be the best fit for your child. This is something you should do together with your child. Find out what kind of career your child wants and research degrees and educational institutions that are the best fit. Narrow down a list of universities, colleges, and degrees as well as future job prospects. You should also make a list of the pros and cons of all of them.  You should prioritize your son or daughter and their opinions and ambitions when doing this. It is important to remember that this planning is for the benefit of your child. Their dreams should take priority over your expectations. At the same time, you should offer advice, counseling, and guidance to ensure they follow their passions while also remaining pragmatic about their career options.  2. Empower your children A big part of supportive parenting is empowering your children to become self-sufficient. It can be daunting and even scary to see your children leaving the nest and your guidance. You need to remember that your children becoming independent and leaving your supervision is the end goal of all good parenting. If your children are leaving the country to study abroad, then it becomes even more important for you to actively try and empower them in every way. Photo by Rodnae Productions on Pexels A very easy way in which you can empower your child is by encouraging them to do their own research and make their own decisions. Ask them to come up with their own education plan, and encourage them to email universities and admissions officers for more information on the institution and curriculum. Talk to them about what they want to do and how they plan to do it. Guide them but let them take care of their own responsibilities. Trust your children and subtly guide them instead of being helicopter parents. 3. Listen to your child “Children are meant to be seen and not heard” was the maxim during the Victorian age but times have changed. You cannot hope to have the same attitude towards your child, especially now that they are starting their adult life. It can be hard to see your 17 or 18-year-old as a full adult just yet but rest assured, this is where it all begins Often times parents let their expectations and dreams take center stage when it comes to their child’s life. You must avoid doing that. And for that, it is important to listen to your child. Don’t just talk at them, when it comes to their education and career, you must learn to talk to them.  It can be helpful at this stage to talk to an education and guidance counselor. Counseling can be a good way of communicating with your child and finding out what they really want to do. A good counselor can act as a mediator between you and your child and help bridge any gaps between you. If your child is unsure and hesitant about what to do next, counseling can help them figure things out. If you are unsure about whether to find a good counselor in your city, then you can look into higher education counseling online. 4. Engage in extra-curricular activities with your child Extra-curricular activities are not just a wonderful addition to any CV, they are also important for the overall development and happiness of an individual.  While it is convenient to see these activities as simply a means of padding your CV for your study abroad plans, that is not all they are. Extra-curricular activities are meant to be a means for you to relax and have interests beyond just academics. They are meant to help you escape the rat race.  Do not pressure your children to take up activities solely to impress foreign universities. Rather find activities in which you and your child can both engage together. This can help you maintain your bond and also release pressure during this incredibly stressful time. 5. Be transparent You should support your children in every way possible but you should also be transparent with them. If there is some limitation to your capacity to help them, they should know about it. If you are unsure that the career path they are choosing will be sustainable or capable of offering stable income and job security to your child, then you should share those doubts. You are after all the adult here, you have experience and you should share that experience with your child. Don’t be afraid of telling them harsh truths, but also be willing to change your mind.  Let your child know that if they can prove to you the long-term sustainability of their career goals, you will be willing to support them all the way. You should also be open and frank with them about finances. Tell them how you are planning to fund their education, whether it is through savings or an education loan. This is a big investment you are making in your child’s future, make sure you are transparent about the nature of this investment. Also, let them know if you have any budgetary constraints and about universities or courses you cannot afford.  Being transparent and honest about your thoughts as a parent is helpful. FAQs How to support your child through college applications? Here are some steps to support your child through college applications: Help them select and shortlist the colleges Check the deadlines for all the colleges and make sure you submit all the documents before the deadline Check the requirements for different colleges such as some colleges require IELTS, GMAT, GRE, etc. How to make your child's college application stand out? The best way to get a unique college application is to have extracurricular or develop a unique hobby. Having a background in social work also helps. Try to look for activities that resonate with your potential course to show the admission office that there is a link between your academic journey and extracurricular. How to start your college application? The first step in starting your college application is to check the requirements and the deadline after shortlisting your colleges. Conclusion Being a good, supportive parent during college admissions season is mostly about trust and communication. You and your child will both need to trust each other’s intentions and talk openly about all your doubts, hopes, and dreams. Remember that college is only the start of a much bigger adventure and you will need to be strong and communicative as a family to make the most of it!

With the value of a foreign education increasing by the day, education loans for paying college tuition fees have become very common and easy to avail too. ‍Education loan disbursals from banks and various financial institutions to Indian students, studying in India and abroad increased to 92,711 Crores this year from 90,345 Crores last year. https://www.youtube.com/shorts/4lVk1mKqwaI ‍However, this data hides an important issue – the number of students who are not paying their education loans back has also been increasing. Banks have reported 7-9% of loans as bad loans over the past few years, by Indian students studying in India and abroad. Best Time to Apply for Education Loans Read More Such a high amount of non-repayment is being attributed to a general economic slowdown, changes in immigration policies by various countries, and a supply-demand mismatch in the candidate's skills and jobs available. Not repaying an education loan can get students into many problems and we are not talking about only the legal issues. While education loans have been the answer for many Indian middle-class families to pursue their dream education since they are easily available from banks and other financial institutions. Apply For Education Loans Is taking an education loan a good idea? The rising cost of education has made taking loans to be a decision fraught with concerns. Even payment for an average school abroad can set you back by 40-50 lakhs if you include your cost of living in that country. Quite a few colleges in India have become very expensive over the years. This is quite obvious considering that college tuition fees have seen a steep rise compared to anything else – be it homes, vehicles, or computers – adjusting to inflation that happens in prices year on year. And this is when salaries/wages have seen only a nominal increase. Scholarships and grants are another way that allows students to afford expensive education. However, the sheer number of students who are aspiring to study in a young country like India makes it a formidable task to be eligible for a scholarship. With loans being the only option in many cases to achieve a good education, fresh graduates are taking up jobs that do not match their skills and with less promise, because good jobs are not on offer. The job of their dreams can wait while the loan is repaid first. The huge EMI also makes them less eager to spend on a house and postpone many important purchase decisions. So how do we make education accessible to a vast number of students without them staring at a huge debt burden after graduating? 3 Steps on How Education Loans Work? Read More ‍What's the solution?‍ A little bit of planning, a few years before the time comes to apply for colleges is all it takes to not get into the system of loans. Put away savings for education that you can use to pay for college. These savings should be such that the money grows, while your child grows. While education goals may vary as your child grows and his/her interests change, the fact that he needs a good education will not change. Tips to get Education Loans for Abroad Studies Read More What do you do in this case? ‍There are apps like EduFund that allow you to plan for your child based on future goals. We have the expertise that can help you understand the financial goals you need to set, to send your child to a prestigious college abroad or in India. Our college savings calculator is comprehensive and includes tuition and staying expenses in a particular city too. Investing in SIP mutual funds is recommended to ensure good returns in the long term. So, starting early adds a lot of value to your fund. Conclusion Before you start planning for your child's education, you must have a specific goal. And an education fund is paramount to reaching those goals With this education = corpus, you can ensure that your child doesn’t start his/ her future career with the worry of paying back a loan. And that will be the biggest present you can gift your child, the gift of education! FAQs Is taking an education loan a good idea? Education loan is a great choice for Indian students who wish to study abroad but it's important to do your research before you avail of one. There are interest rates that students must consider and the process of repayment. One must research whether the course is covered by the loan or not if your bank is offering a low-interest rate, how much loan coverage should you opt for, and the ROI of your course. Can you study abroad without an education loan? Yes, it is possible to study abroad without an education loan. You can apply for scholarships, borrow money from your parents, or use an education fund if your parents have started one for you. If you are planning to go abroad for a master's or MBA then you can start saving and investing for your education as well. To keep up with the living expenses, you can opt for a part-time job as well if your student visa permits it. What are some good alternatives to education loans? If you have a time horizon of 10-15 years, then considering mutual funds and investing in US stocks and ETFs is a great alternative. This option is brilliant for parents with children between the ages of 3-10 years.

The Central Bank of the United States - The Federal Reserve, since the beginning of 2020, has printed over $3 trillion with significant printing activity happening between March 4th, 2020, and April 15, 2020, when the assets of the central bank rose by nearly 50% from $4.24 trillion to $6.37 trillion respectively. The printing was majorly carried out to combat the impact the COVID-19, which has resulted in a weakening economic condition. But how does it impact the U.S. economy, currency, and Indian investors? How does the central bank put money into the economy? The Federal Reserve prints money and buys bonds equivalent to the money printed from financial institutions. This leads to a supply of currency in the economy, which is likely to drive down the interest rate (for borrowers), thereby putting an impetus on their consumption pattern. Additionally, lowering the interest rate also compels businesses to borrow and expand their presence. These activities are aimed at reviving the economy. The printing of currency, however, has led to a weakening of the dollar as seen in the dollar index chart (See charts below).  Source: FRED; EduFund Research What happens to the U.S. Dollar Index? The U.S. Dollar Index: It is a barometer for the international value of the U.S. dollar and the world's most recognized, publicly traded currency index. The U.S. Dollar Index measures the value of the U.S. dollar relative to a basket of the top 6 currencies: EUR, JPY, GBP, CHF, CAD, and SEK. As seen from the chart below, the dollar has been weakening. Note: DXY – U.S. Dollar Index; DJI – Dow Jones Industrial Average At what rate is the money printed? The maximum growth in printing was during the weeks ending March 18th, March 25th, April 1st, April 8th, and April 15th. Not surprisingly, the Dow Jones Industrial Average after bottoming out around March 18th, started to gain traction with the week ending April 8th showing a 12% increase over the previous week. During the period between March 18th to June 10th, the DJIA returned as much as 36%. The explanation for the rally is simple the money created by the central bank found its way to the American stock market and also the market outside of the U.S. in some cases. Considering the FPI activity, the data is in line with what one can expect with the creation of liquidity by the central banker. 12 months FPI flow – India in Asia looking for constructive long-term growth Has the newly printed money helped the economy? Well, the extent of the downturn and pace of recovery is uncertain and is likely to remain the same in the days to come. Until a trend for full recovery from COVID-19 is seen, re-instating confidence amongst the citizens remains a daunting task. Only with full recovery in sight, people will be able to re-engage in a broad range of activities. Also, the policy actions, to provide relief and support the economic recovery, at different levels of the government is likely to show some signs in days to come. What does it mean for Asian investors, particularly in India? A weakening dollar signals a higher risk appetite and is considered positive for growth in emerging economies. Further, the likelihood of renewed weakness in the U.S. dollar following Democrat Joe Biden's presidential victory should give another reason for investors to favor Asian stocks, including India. Robust local currencies help bolster the national balance sheet, and borrowers benefit from lower dollar-denominated repayment. Faced with a softening dollar, U.S. investors tend to seek growth and earnings opportunities outside the country. This has shown some improving signs for the economy such as in India where the corporate earnings are responding positively. Conclusion We, at Edufund, believe that the dollar's woes are expected to continue and Asia, including India, is setting itself for a constructive start to 2021. Any positive development on the vaccine front is likely to encourage investors toward riskier assets while shying away from traditional havens. Additionally, the fact that Democrats do not have Senate control may reduce the possibility of future stimulus thereby putting more pressure on the Fed to act aggressively for economic revival. Thus, the currency is likely to depreciate over the longer term, due to less favorable U.S. interest rates relative to other G-10 currencies than in the past. FAQs What is the U.S. Dollar Index? US Dollar Index is a barometer for the international value of the U.S. dollar and the world's most recognized, publicly-traded currency index. How does the central bank put money into the economy? The Federal Reserve prints money and buys bonds equivalent to the money printed from financial institutions. This leads to a supply of currency in the economy, which is likely to drive down the interest rate (for borrowers), thereby putting an impetus on their consumption pattern. What happens to the value of money if it is overprinted? Overprinting can result in the devaluing of money and also cause inflation in the market.

Global education at an affordable cost, a wealth of career opportunities, and an amazing quality of life. There are no two ways about it Canada is one of the best destinations to study abroad, for Indian students. About 25% of immigrants from India call Canada their ‘home’. In 2019, India ranked on the list for being the main source country of new immigrants to Canada. Quality education for all Education in Canada is greatly valued. And even that is an understatement! The country spends about 5.3% of its GDP on education. Four Canadian universities consistently rank in the top 100 Universities of the world. Some of the top Universities in Canada include: University of Toronto University of British Columbia McGill University McMaster University According to Forbes, the number of Indian students studying in Canada shot up to a whopping 127%. Studying in Canada for Indian students has proven to be an excellent option given that Canada leads innovation in science and research. Remember, when you study in Canada your degree is recognized all over the world. ‍Affordability is key in Canada Studying abroad is an expensive affair. But the education system in Canada is cheaper than most others. Is it possible for a middle-class Indian student to make it to the top universities in Canada? Yes. The cost to study in Canada is lower than the foreign Universities located in the U.S. or U.K. Additionally, there are several ways to fulfill your dream of studying in Canada.  This leads us to the next point... https://www.youtube.com/shorts/MwclWJ8Q2ZE You can earn while you learn! The study permit in Canada is designed in such a way that Indian students (or any international student) can work for up to 20 hours every week. The icing on the cake? During the summer and winter break, you can work full-time too! Without many struggles, one can easily find many part-time opportunities. Students are remunerated fairly on an hourly basis. This way, you can earn some pocket money and be independent. https://www.youtube.com/shorts/k8c_dfmXMkA ‍Home away from home! If you are worried about being miles away from home and missing your culture, then stop right there! A significant population of Canadians is of Indian heritage. About 1.4 million to be precise. Time and again, Canada has been ranked as one of the best countries in the world to live in. Known for its multiculturalism, this country has so much to offer to Indian students. In fact, there are several communities formed by Indians staying abroad to help and support newcomers. You can feel safe here and embrace your desi roots. Immigration and amazing job opportunities The point-based system for work permits and citizenship is known to work in favor of Indians. The immigration policies of Canada make it possible for Indian students to get the best education, exposure, and job opportunities after graduation. The transition from University to Work is easy for international students. The degree you earn there comes with a plethora of job opportunities. Not sure which University or course in Canada is the right option for you? FAQs Is Canada good for Indian students to study? Canada is a great destination for Indian students to study abroad. Its universities are consistently ranked high by popular indices across subjects, it is international student-friendly and has many policies like 2-year work permits and part-time work opportunities for students. It is also considered an affordable alternative to the US and UK. Why Canada is the best study-abroad destination? Canada is considered the best study-abroad destination for the following reasons: Top universities like the University of Toronto, Ottawa, and Calgary. Best student-friendly environment for learning and living Affordable for international students across the globe Opportunities to work and live in the country for international students What are the most popular universities in Canada for Indian students? Here are the most popular universities in Canada - University of Toronto University of British Columbia McGill University McMaster University University of Calgary TALK TO AN EXPERT

Investing in your child's education is vital because education is no longer cheap! Many Indian parents dream of sending their children to a university abroad. While studying abroad is aspirational and can help secure a bright future for their child, what many parents do not realize is the cost associated with it. Nor do they understand the difficulties of managing these costs. Education is becoming expensive. In the United States, the average annual cost of university tuition is $40,000 (29 lakhs) and is expected to increase by 3-5% per year.  To add to the tension, Indian parents have to worry about rupee depreciation while making foreign exchange transactions into dollars. How are parents meeting their corpus? The decision to send your child abroad is something that can change the course of your financial future. Sadly, most Indian parents are facing the negative impact of their child’s higher education on their finances by choosing riskier options for funding. Today, the average Indian parent funds their child's education by Taking loans Cashing in their retirement Selling real estate 1. Loans Because education is so expensive, most parents choose to fund higher education through loans. In FY19, the total amount of loans disbursed was Rs 22,550 crore. But the silent killer with loans is the interest. Education loans in India aren’t cheap and can come with interest as high as 14.5% and a 7-15 year tenure. And while students studying at prestigious foreign universities can opt to pay lower interest on loans offered by their institutions, they are still paying off these loans in dollars. CHECK LOAN ELIGIBILITY 2. The default zone In theory, taking out loans and later paying EMIs seems easy. But, data shows that the national default rate of education loans (NPA) is incredibly high-10%. This is worrisome for two reasons. First, it could have a severe negative impact on you or your child’s credit score, making it harder to get loans in the future. Second, as default rates continue to increase, private institutions, such as banks, will continue to increase the interest rate on education loans.  In other words, it’s a big negative cycle. 3. Earning interest, not paying it. There’s a simple solution to avoiding the potential headache that comes with loans- planning ahead. If parents start to save for their child’s education immediately after their birth, that’s anywhere between 18-21 years of savings. With foreign education, however, savings alone may not be enough. Investing these savings can generate enough interest over time to pay for a sizeable amount, if not all, of your child’s tuition. Investing in what? Mutual funds can be a wise choice for investment because of compounding. Compounding simply means that you earn interest on your savings and that interest then earns interest on itself. Because of this, mutual funds have a strong history of generating returns anywhere between 6%-15%. For example, INR 1,000 invested in a fund that earns 15% interest can help you save up to 15 lakhs over 20 years. That’s the power of compounding. And, if you’re worried about taking risks, you can rest assured that there are ways to match your appetite for risk with the right mutual fund, and still earn enough to help secure your child’s education. But the most important factor when it comes to investing in your child’s education is starting ahead of time. Each day counts. FAQs Why should you invest in your child's education? The biggest reason why you should invest in your child's education is the rising cost and education inflation. In the past few years, the cost of education abroad and in India has been increasing tremendously. From high tuition fees to increasing cost of living for students, education is becoming expensive with time and the best way to keep up is to revitalize your savings and investment strategy by investing in a high-growth instrument that helps beat inflation in the education sector. When should I start saving for my child's education? Starting when your child is a newborn is the best time to invest and save for your child's education. This gives you a time horizon of 10 -15 years to save and invest in your higher education. Should you save for your child's education? Yes, saving and investing in your child's education is a huge parental responsibility. It has tremendous benefits like securing your child's future, helping your child and you avoid debt as the cost of education increases every year, it helps you maintain financial stability and it gives your child the opportunity to explore any career and college they hope to study at.

Ever heard of Marijuana ETFs? Marijuana has many nicknames, including weed, M.J., herb, cannabis, and other slang phrases. It's Cannabis Sativa's dried green or grey blooms.   The substance's major psychoactive component is tetrahydrocannabinol (THC), which causes people to experience a mind-altering condition when eaten. Cannabidiol (CBD), the second most crucial ingredient in marijuana, has helped treat pain, anxiety, and other ailments.  Marijuana ETFs are a relatively new and rapidly growing segment of the ETF market. Marijuana ETFs rarely invest in local pharmacies or small-scale farmers. Cannabis ETFs, on the other hand, are more likely to invest in Pharma and Biotech companies that are conducting advanced research into clinical uses for cannabinoids.   They also like to augment their cannabis portfolio with firms that support the nascent marijuana market, such as fertilizers and alcohol and cigarette corporations that have invested heavily in potential marijuana revenue streams.  For instance, the ETFMG Alternative Harvest ETF (arguably the biggest marijuana ETF in terms of AUM) invests in a wide range of marijuana-related companies, including:  G.W. Pharmaceuticals is a pharmaceutical company based in London (cannabinoid-focused medicine).  Cronos Group is a multinational conglomerate based in (production and distribution).  Canopy Growth Corporation is a publicly traded company based in Vancouver, British Columbia (research and product development).  Aurora Cannabis is a cannabis company based in Canada (product development and production).  Even though marijuana remains illegal under federal law, more than half of the states have approved medicinal marijuana, and eight states have legalized recreational marijuana, including California.   Most marijuana ETF issuers, on the other hand, go to great lengths to ensure that their funds only invest in companies that are either federally authorized or based in other locations, such as Canada.   Still, if the US Justice Department follows through on promises to pursue marijuana businesses that are legal in their home states, pot ETFs may face enormous legal risk. The perils of Marijuana ETFs Investing in cannabis, including cannabis ETFs, is fraught with danger. Regulatory uncertainties, funding challenges, and the sheer unpredictability of marketing strategies and operations could all change the future landscape, and thus the valuation of marijuana stocks and ETFs, dramatically and quickly.  1. Regulation  While recreational marijuana use and storage are now legal in some states (and medicinal cannabis use is legal even more), marijuana remains a Schedule 1 drug from the federal government's perspective.   This classification, which places marijuana alongside heroin, ecstasy, and LSD, implies that it has little medical use and is often used in the wrong ways.  This classification may result in legal ambiguity across state and federal regulations.  2. Unpredictability  Since its establishment in 2015, the U.S. Marijuana Index, which measures its largest cannabis companies, has seen both highs and lows. The index's 52-week high is 105.19, and its 52-week low is 19.91 as of July 7.  Marijuana ETFs have a total AUM of $1.94 billion, with 9 ETFs trading on U.S. exchanges. The expense ratio equals 0.71 percent on average. Equity is the underlying asset of marijuana ETFs.   The Advisor Shares Pure U.S. Cannabis ETF MSOS is the largest marijuana ETF, with $943.83 million in assets. PSDN, the finest performing Marijuana ETF in the previous year, was the Advisor Shares Poseidon Dynamic Cannabis ETF PSDN was the most recent ETF to launch in the marijuana market on 11/16/21.  Marijuana ETFs are ranked based on their AUM from highest to lowest  TickerFund NameIssuerAUMExpense Ratio3-Mo TRSegmentMSOSAdvisorShares Pure US Cannabis ETFAdvisorShares$943.83M0.73%-22.75%Equity: U.S. CannabisMJETFMG Alternative Harvest ETFETFMG$632.63M0.75%-18.09%Equity: Global CannabisYOLOAdvisorShares Pure Cannabis ETFAdvisorShares$134.25M0.76%-26.87%Equity: Global CannabisPOTXGlobal X Cannabis ETFMirae Asset Global Investments Co., Ltd.$76.85M0.51%-27.38%Equity: Developed Markets CannabisCNBSAmplify Seymour Cannabis ETFAmplify Investments$65.73M0.75%-23.30%Equity: Global CannabisTHCXThe Cannabis ETFOBP Capital LLC$55.13M0.75%-26.96%Equity: North America CannabisTOKECambria Cannabis ETFCambria$21.82M0.42%-8.73%Equity: Global CannabisPSDNAdvisorShares Poseidon Dynamic Cannabis ETFAdvisorShares$8.24M0.92%-27.61%Leveraged Equity: Global CannabisBUDXCannabis Growth ETFBanhazl$3.22M0.79%-27.10%Equity: Global Cannabis Alternative index funds and ETFs are better suited for beginning investors or those seeking predictability. FAQs Are marijuana ETFs a good investment? Investing in Marijuana ETFs is new and has its set of risks. Investing in cannabis, including cannabis ETFs, is fraught with danger. Regulatory uncertainties, funding challenges, and the sheer unpredictability of marketing strategies and operations could affect one's returns dramatically. Is there a marijuana stock ETF? Some high-performing marijuana stock ETFs are - ETFMG Alternative Harvest ETF, AdvisorShares Pure US Cannabis ETF, and ETFMG U.S. Alternative Harvest ETF What is a good marijuana ETF? Cambria Cannabis ETF (TOKE)AdvisorShares Pure US Cannabis ETF (MSOS)AdvisorShares Pure Cannabis ETF (YOLO)ETFMG Alternative Harvest ETF (MJ)Amplify Seymour Cannabis ETF (CNBS)The Cannabis ETF (THCX)Global X Cannabis ETF (POTX) What is an ETF? An ETF stands for exchange-traded fund (ETF). One single ETF is a basket of securities that can be bought and sold like mutual funds through a brokerage firm. ETFs track a specific index such as S&P, sector, commodity, or other assets. Much like stocks, ETFs can be traded on the market. Is an ETF better than a stock? Investing in an ETF is less risky than investing in a stock, as ETFs are diversified. In the case of ETFs, investors do not control what happens to the portions of the ETFs. ETFs have a diversified profile of assets, and the risk associated with the investment is reduced significantly. In stocks, the risk attached is higher as the stock price depends entirely upon the company’s performance and other exogenous factors of the world. If you can digest the unpredictability of an unpredictable market in return for receiving it at a very early stage and your investment is well-diversified and healthy, cannabis ETFs could be a good fit for you.

Fixed Maturity Plans (FMPs) are close-ended debt funds that are investible for pre-defined lock-in periods. The tenure for different Fixed Maturity Plans can vary based on the time horizon for which the investment is made, ranging from 30 days to 5 years. Many investors, especially those who are just starting their investment journey, are on the lookout for low-risk instruments that provide consistent returns. For individuals who are risk-averse, Fixed Maturity Plans (FMPs) might be an option worth considering. To invest in FMPs, the way to go is through NFOs (New fund offers) or via companies that provide asset management services, making their investment at NFO. Fixed Maturity Plans mainly consist of debt instruments like treasury bills, corporate and government bonds, commercial papers, non-convertible debentures, securitized debt instruments, and certificates of deposit. The main purpose of this plan is to shield investors from interest-rate fluctuations and provide consistent returns. Moreover, FMPs are known for offering better returns than bank fixed deposits (FDs). Characteristics of Fixed Maturity Plans The silent features of Fixed Maturity Plans are as follows: Close-ended scheme: The schemes are close-ended because individuals can invest in these plans only by subscribing to NFOs where a given number of Net Asset Value (NAV) units are issued against the funds. These NAV units are tradeable in the stock market like any other script/share.  Portfolio composition: Fixed Maturity Plans are curated to alleviate the effects of stock market volatility and the interest rate risk on the portfolio. This is possible mainly in the case of debt securities. Interest-rate sensitivity: FMPs are less susceptible to interest-rate fluctuations because extended maturity periods stabilize interest rates in the long run. Quality of assets: The debt instruments issued by big and reputable companies play a significant role. Given their command in the market, these companies can offer good returns on their tools. Besides, fund managers and portfolio managers also have the incentive to choose from the available investments to maximize the returns on FMPs. Lock-in period: Fund withdrawal during the tenure of the investment scheme is not possible. Apart from this, investments in Fixed Maturity Plans are made only once, i.e., a flat sum. The main aim of such rules and regulations is to ensure ample time for the returns to exhibit the magic of compounding. Advantages of fixed maturity plans There are multiple benefits that are associated with investing in Fixed Maturity Plans Lower-risk: The risk associated with FMPs is considered to be lower than several other investment options. The investment is deemed secure because FMPs primarily target the debt securities that well-known listed companies issue in the market. FMPs are backed by high ratings given by renowned credit rating institutions. Investment in highly rated instruments also reduces the risk of default. These plans provide a balance to investors by protecting their capital and acting as defensive investments. Stability: Due to less exposure to equity volatility and lower interest rate risk, these funds fluctuate less than the markets. These plans become attractive to investors in recessionary times because of the safety of capital and the returns offered under the circumstances. Disadvantages of Fixed Maturity plans Lower yields: By now, we all know that higher rewards are linked with higher risks. The returns on these plans are lower than the equity benchmarks as the rate of interest stays the same for the entire timeframe of the investment. Less liquidity: The lock-in period of FMPs means that the investments cannot be withdrawn before maturity. This lack of liquidity might prove to be an inconvenience for some investors. Tax liabilities on FMPs FMPs attract STCG (Short Term Capital Gains) or LTCG (Long Term Capital Gains) tax depending upon the time horizon of the investment. Any investment in FMP is short-term if the lock-in is less than three years and investors are liable to pay STCG based on the income tax slab they belong to. Returns on investments with a lock-in period of more than three years attract LTCG at 20% after indexation adjustments. Indexation incorporates rising prices in the economy, thereby resulting in tax benefits for the investors. Other than the taxes on the appreciated value of the investments, the FMPs with dividend options also require investors to bear the DDT (Dividend Distribution Tax) on the dividends that they receive during their investment. Who should consider investing in FMPs? Every investment option has some characteristic that makes it suitable for particular groups of people. In the case of FMPs, their low-risk feature makes them ideal for investors who are unwilling to take risks associated with the stock market. The comparatively stable returns and capital protection give the investors a sense of comfort. Additionally, the total returns are usually known beforehand because the interest rates of the underlying funds are known at the time of issuance itself. The security of these returns also allows investors to plan financially for these investments. Those who are highly risk-averse often put their entire capital into FMPs, whereas the investors looking for portfolio diversification allot a certain percentage of their capital to such funds. FMPs work well for those looking to mitigate the risk without compromising too much on the returns. FAQs What are Fixed Maturity Plans? FMPs are close-ended debt funds that are investible for pre-defined lock-in periods. The tenure for different Fixed Maturity Plans can vary based on the time horizon for which the investment is made, ranging from 30 days to 5 years. Who should consider investing in FMPs? In the case of FMPs, their low-risk feature makes them ideal for investors who are unwilling to take risks associated with the stock market. What are the advantages of fixed maturity plans? Lower-risk: The risk associated with FMPs is considered to be lower than several other investment options. The investment is deemed secure because FMPs primarily target the debt securities that well-known listed companies issue in the market. FMPs are backed by high ratings given by renowned credit rating institutions. Investment in highly rated instruments also reduces the risk of default. These plans provide a balance to investors by protecting their capital and acting as defensive investments. Stability: Due to less exposure to equity volatility and lower interest rate risk, these funds fluctuate less than the markets. These plans become attractive to investors in recessionary times because of the safety of capital and the returns offered under the circumstances. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Excited to get into the world of investing? Exchange-traded funds or ETFs might be your best bet. It offers a chance for those new to investing to gain exposure to the markets of their choice, without needing to invest exorbitant amounts of money. With ETFs, even a complete newbie can begin buying and selling investment products that could allow you to profit significantly in the long term. It is also a great way to quickly succeed at fundraising for education. You could put your money into several different asset classes like stocks, bonds, commodities, precious metals, and more. For some, SIPs and Mutual Funds may be a better choice, so we recommend reading more about them as well, before pulling the trigger and making a decision. With that said, investing carries inherent risks, so only invest what you are prepared to lose. It isn’t a good idea to bet the farm on a single ETF product that could move against you. However, in the long-term, stock indices like the S&P500, DJI, NIFTY50, and more have been known to trend upwards and be relatively safe bets to invest in. With that said, it is essential to understand exactly what an ETF is before we can delve into who they are perfect for and what their shortcomings are. Exchange-traded Funds (ETFs) - What are they & how can you profit from them? As the name suggests, exchange-traded funds, unlike Mutual Funds, are traded on stock exchanges around the world. Thousands of these ETFs are traded on a day-to-day basis by both professional traders and High-Frequency Trading bots, also known as HFTs. Photo by Anna Nekrashevich from Pexels Does all this sound a little too technical? No need to worry, because we are about to break it down for you and introduce you to the basics, along with the most important aspects that you need to know. First, we are going to dive deep into who might find ETFs a suitable option for investment. Who should invest in ETFs? While anybody above the legal age in their country could invest in an ETF, there are specific types of people that can derive great value from them - 1. Students and beginner investors For those who are completely new to this space, ETFs can be an excellent way to get started and get a feel for investing your money in different asset classes. ETFs form one of the best child investment options available today. As a student who has prior commitments and other occupations, ETFs are a powerful tool to make sure that you get a feel for investing early on. Since they require you to do very little once you have purchased them, you are much more likely to be able to track them and gain valuable experience with minimum effort. 2. Those with full-time commitments In today’s fast-paced world, not everyone has the precious resource of time to go through all of the nuances of investing. Especially for those who work a full-time job, and even potentially two jobs at the same time, it can be overwhelming and even impossible to find the time to delve deep into the financial markets and how to profit from them. In this way, ETFs are a great way for busy professionals and even fully engaged stay-at-home moms to invest their money without investing much of their time. 3. Investors looking to limit their risk in the market If you have the time to keep track of your investments but simply do not want to overexpose yourself to excessive risk, ETFs are a great way to go about investing. Mini and micro ETFs allow you to invest small amounts of money that suit your risk appetite, meaning that you only ever need to invest as much as you would feel comfortable with. This is one of the main reasons that ETFs are so popular worldwide. Are there any downsides to investing in an ETF? Investing in ETFs can be a dream come true if you’re looking to expose yourself to minimize expenses. However, as with anything in life, there are pros and cons to investing in an ETF. It helps to be aware of these downsides especially as a beginner to ETFs so that you can keep yourself better informed and avoid any surprises. Some of the downsides to investing in an ETF are - 1. Transaction costs As the saying goes, nothing in life is free. This could not be more true when it comes to purchasing and holding an ETF. Depending on which exchange you choose to invest your money with, you could be subject to a whole host of fees, including - Order book fees Purchase/sale fees Time-based holding fees Over time, these fees can build up to be a significant amount of money, meaning that you will need to take this into account when calculating your final profit or loss. Fees can eat into your profits drastically, so it is essential to choose a broker or exchange that offers you the best deal when it comes to the added costs of buying and selling ETFs. 2. Tracking errors At times, ETFs can stray far away from the actual price of the index that they track. This can be for a variety of reasons, including supply and demand fluctuations, liquidity difficulties, and other such factors. In such cases, you may find that the particular ETF you have invested in trades at a different price to the particular stock, commodity, index, or precious metal that it tracks. While this is normal and generally accepted in the world of investing, it is a downside to be particularly aware of as you embark on your trading journey with ETFs. 3. Management Fees Since ETFs are products created by exchanges and financial institutions, they often attract management fees that you are likely to be liable to pay when you purchase them. These management fees contribute towards the maintenance of the exchange rate and order book liquidity and also incentivize the broker to provide such products for trading. Keep in mind though, that management fees are in general just a small percentage of the entire amount that you will spend on your purchase. However, it makes sense to shop around for exchanges that offer reduced management rates, special offers, and bonuses that can help you lessen the amount you need to pay. FAQs What is an ETF? An ETF stands for exchange-traded fund (ETF). One single ETF is a basket of securities that can be bought and sold like mutual funds through a brokerage firm. ETFs track a specific index such as S&P, sector, commodity, or other assets. Much like stocks, ETFs can be traded on the market. Is an ETF better than a stock? Investing in an ETF is less risky than investing in a stock, as ETFs are diversified. In the case of ETFs, investors do not control what happens to the portions of the ETFs. ETFs have a diversified profile of assets, and the risk associated with the investment is reduced significantly. In stocks, the risk attached is higher as the stock price depends entirely upon the company’s performance and other exogenous factors of the world. Are ETFs good for beginners? ETFs are generally suitable for beginners as they are inexpensive compared to a few other investment tools. ETFs have a diversified asset profile, reducing the risk associated with the investment significantly. Conclusion Exchange-traded funds are perfect for those looking to invest in the stock market for the first time. It also helps those who have limited knowledge of the stock market and the various intricacies that make up trading and investing. If you’re someone who is just starting or attempting to experiment with the prices of various stocks, commodities, or precious metals, ETFs are a great way to start. Just remember, however, to always do your due diligence and research the products you are interested in, and the associated risks and costs that come with them.

Finding ways to pay for school can be difficult, but attending graduate school is a necessity for your career. Naturally, the programs and location of the university would be your first priorities, but there is no way you can ignore the university's tuition rates. You would naturally assume that your parents could support your schooling, as they may have done throughout the years. However, when they fall short of raising the entire amount, there is always the option of an education loan for international studies.  Keep reading to know more about the various features of a student loan for studying abroad because there are numerous ways that you can support your education abroad!  What is a Study abroad Education Loan?  A student loan for overseas studies is a type of loan created to assist students in covering the costs of post-secondary education, including tuition, books, supplies, and living expenses while studying abroad. In comparison to other loan kinds, it could have a significantly reduced interest rate and a deferred repayment plan while the borrower is still enrolled in school.  Apply for Education Loans Why is a loan for studying abroad advantageous?  Parents may struggle to afford education costs at times. In such circumstances, a student loan can be obtained from banks or other financial institutions (NBFCs). A student loan may be used to cover all or a part of the cost of schooling. A study abroad education loan assures that a student can finish their university education without facing any financial difficulties.  Loans are generally thought of as bad debt. Given that it is an investment in oneself, it differs from a loan for international study. You are making an investment in your own higher education, which will aid in your job search. It allows you to make far more money than the loan's principal. Types of education loans  When searching for an education loan to study abroad, the following two study loan kinds may be of assistance:  1. Secured Credit  The borrower pledges a portion of their assets as collateral for this specific loan for international studies. An individual who applies for a secured loan must mortgage his property to the bank or financial institution. Moreover, the borrower's mortgaged property cannot be agricultural land.  2. Unsecured Credit  Unsecured loans are financial obligations that are not backed by the collateral of the borrower. These might be offered by financial institutions in a variety of forms or marketing bundles. A variety of requirements must be met in order to qualify for an unsecured loan.  Apply for education loans Criteria for eligibility and documents needed to apply for an international study loan  Let's now discuss some prerequisites for being eligible for an education loan to study abroad:  1. Profile of the Borrower  The GRE is a crucial consideration when applying for an international student loan. The total academic performance and professional experience, in addition to the GRE score, are important factors when applying for a loan. Don't forget that Indian citizenship is the most important requirement to qualify for an education loan to study abroad.  2. Co-borrower Information  The co-profile borrower is crucial in obtaining a student loan for international studies. A foreign education loan can be secured depending on a number of variables, including your financial situation, location, and assets you own.  3. Acknowledged university  The university's standing matters as well if you've applied there. Higher university rankings correspond to higher borrowing prospects. The best universities around the world also provide better employment opportunities, increasing the security of international student loans.  4. Norms for Underwriting  Underwriting norms are the standards set forth by loan providers to ensure that only safe and secure loans are made available. They are used to decide whether or not to provide a person with a study loan for overseas study, how much money the company is willing to loan, and at what interest rate.  Let's look at the paperwork needed for an education loan for international students:  An application form that is fully completed   Academic transcripts  Passport pictures  KYC paperwork  Bank statements with residence evidence  Evidence of income  Collateral records  A birth record  Confirmation of enrollment from a reputable university  How to apply for an International Student Loan?  Let's talk about how to apply for an international student loan now:  Decide which loan for international study suits you. Verify all details, such as the moratorium period, the payback time, the interest rate on an education loan provided by the Indian government, etc. Visit the chosen education loan's official website and complete the application. Scan and upload the necessary paperwork and await the result.  Conclusion  Nowadays, obtaining an education loan for studies abroad is not taxing, as long as you have all the necessary paperwork and know which kind of loan for foreign studies is ideal for you. Being accepted into a reputable university as an international student is one of the most important factors which further improves your chances of receiving the finest loan for overseas studies!  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Families who want their children to pursue higher studies and are unable to make ends meet are on the lookout for an education loan without collateral in India.  It is no longer easy to secure an education loan as students have to meet a strict set of criteria to become eligible for the loan. Most loan applications get rejected midway in the absence of a collateral or third-party guarantee.  Education is a blessing that can break the shackles of poverty, but how to get a loan when you do not have any property, fixed deposits, land, bonds, insurance policies, or shares to pledge as collateral is a worry for most of the middle-class households in India.  In most cases, financial institutions or private moneylenders ask for collateral as a security pledge in case of loan default so that they can recover their money in adverse conditions by selling the collateral property. Without the collateral, most banks, NBFCs, or even private lenders hesitate to sanction an education loan with a limit that exceeds INR 7.5 lakhs as the chance of default is very high. Apply for Education Loans What is a Non-Collateral or an Education Loan without Collateral? Non-collateral or an education loan without collateral is a type of education loan where the loan applicant can get the loan amount without pledging security against it. In the case of a non-collateral loan, the borrower has to meet specific criteria that the loan authority has set. These criteria can be country-specific, a particular study program, or a minimum loan amount. Collateral vs. Non-Collateral Education Loans Read More Where can you get an Education Loan without collateral? 1. Banks Banks generally follow the guidelines set by IBA for education loans without collateral, although their internal rules may vary with the set criteria. It is the sole right of a banking institution to make changes for a loan amount that exceeds INR 7.5 Lakhs. The interest rates, the upper limit of the maximum loan amount, and repayment terms vary from bank to bank.  Edufund is also associated with public and private banks and NBFCs in India and can help you get the best possible terms for the education loan without collateral if you are interested in borrowing money from a specific bank. The app also has a team of dedicated experts who will talk on your behalf and bargain for the best loan terms.  Starting the loan process at EduFund is very straightforward, as you can get direct quotes from partner institutions. Higher loan amounts, lower interest rates, and hassle-free loan process are possible only at Edufund.   4. Private Lenders and Non-Banking Financial Companies Private lenders and NBFCs generally sanction education loans without collateral for an amount that exceeds INR 7.5 lakhs. This is a tricky situation for the borrower as these types of education loans come with a higher interest rate compared to the collateral-free education loan of a maximum amount of INR 7.5 lakhs.  5. Education loan without collateral at EduFund App Suppose parents or students are unable to meet the set criteria for an education loan without collateral in India. In that case, they can visit the Edufund App and meet with the experts who handle loan applications.  Edufund has a dedicated loan page that will answer all your loan-related queries and direct you toward the proper channel so that it becomes possible for the applicant to become eligible for an education loan up to INR 75 lakhs at the minimum possible interest rates without any collateral.  The service is free, and there are no hidden charges that will come at a later date to haunt you.  Conclusion  Education loan is the need of the hour, and if you can get an education loan without collateral in India, then it is a win-win situation for a student who needs the loan amount to fulfill his dreams. Student loans serve as important financial aid for millions of students who otherwise would not be able to get a proper education and desired jobs.  TALK TO AN EXPERT