EduFund Blogs

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant.  The family behind DSP has been very influential in the growth and professionalization of capital markets and the money management business in India over the last one-and-a-half centuries   Let us talk about the consumer product – DSP US Flexible Equity Fund.  About the DSP US Flexible Equity Fund  Investment objective The primary investment objective of the Scheme is to seek capital appreciation by investing predominantly in units of Global Funds US Flexible Equity Fund (BGF - USFEF). The Scheme may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes, which may constitute a significant part of its corpus. The Scheme may also invest a certain portion of its corpus in money market securities and/ or money market/liquid schemes of DSP Mutual Fund, in order to meet liquidity requirements from time to time. It shall be noted 'similar overseas mutual fund schemes' shall have investment objectives, investment strategies, and risk profiles/considerations similar to those of BGF - USFEF.  The term "Flexible" in the name of the Scheme signifies that the Investment Manager of the Underlying Fund can invest either in growth or value investment characteristic securities placing an emphasis as the market outlook warrants.  Portfolio composition  The portfolio holds major exposure in Information Technology which accounts for roughly 21% of the portfolio. The top five sectors hold nearly 75% of the portfolio.  Note: Data as of 31st Dec 2022. Source: DSP MF  Top 10 holdings of DSP US Flexible Equity Fund Name Weightage % Microsoft Corporation 6.00% Amazon.Com Inc 4.80% Alphabet Inc 4.40% Apple Inc 4.00% Corveta Inc 3.10% United Health Group Inc 3.00% Comcast Corporation 2.60% Berkshire Hathaway Inc  2.60% Visa Inc 2.50% Ross Stores Inc 2.20% Note: Data as of 31st Dec 2022. Source: DSP MF  Performance Note: Data as of 31st Dec 2022. Source: DSP MF  The fund has generated a CAGR (Compounded Annual Growth Rate) of 14% since its inception. Fund manager  Mr. Laukik Bagwe is the fund manager and brings over 22 years of total professional experience. He has been managing the scheme since August 2012. He has previously worked with Derivium Capital & Securities Private Limited, and Birla Sunlife Securities Ltd. He holds a B.Com, and PGDBA (Finance).  Mr. Jay Kothari, Vice President & Product Strategist has been managing the fund since March 2013. He is the dedicated Fund Manager for overseas investments and has been with DSP Investment Managers since May 2005, and has been with the Investment function since January 2011. Jay joined the firm as a member of the Sales team (Banking) in May 2005. Prior to joining DSPIM, Jay worked for Standard Chartered Bank for a year in the Priority Banking division. Jay completed his Bachelor of Management Studies (Finance & International Finance) from Mumbai University, followed by an MBA in Finance from Mumbai University.  Mr. Kedar Karnik has been managing the fund since July 2016. He joined DSP Investment Managers from Axis Asset Management and has over 17 years of investment experience. He has done his Masters in Management Studies from Jamnalal Bajaj Institute of Management Studies. He has over a decade of investment experience. He has previously worked with HSBC Asset Management and CRISIL Ltd.  Who should invest in DSP US Flexible Equity Fund?  Experienced Investors with a well-set core portfolio, looking to diversify no more than 10% - 15% of portfolio internationally.  Investors looking for international diversification, especially in US companies & wanting to hedge portfolios.  Investors have the patience and mental resilience to remain invested for a decade or more.  Investors not looking to chase the highest returns.  Why invest in this Fund?  Offers the potential to grow your wealth by investing in the world's largest & most developed equity market.  Get access to well-known, large companies that are difficult to invest in directly for Indian investors, like Google, Amazon, Facebook, Comcast, Berkshire Hathaway, etc.  Reduce portfolio volatility by investing in a foreign market that has a low correlation to the Indian stock market & may thrive even when Indian stocks fluctuate.  Get the additional benefit of currency diversification.   Time horizon  One should look at investing for a minimum of 10 years or even more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The DSP US Flexible Equity Fund was launched in August 2012, and in its track record of ten years, the fund has delivered ~14% CAGR consistently. Thus, it is best for investors who are willing to take international equity exposure in the portfolio and is looking to remain invested for a longer period.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

In this article, we will discuss what are monthly resets. These leveraged ETFs reset daily and start each day afresh. However, that is not the most prudent strategy for an investor in the long run. Let's understand this, a very volatile market might have a lot of upswings and downswings, and thus, this might erode your holding.   Generally, leveraged ETFs have a negative bias.   Let's take an illustration:  Suppose an index starts at a 100-point mark and an investor has an ETF that replicates this index and also a 2x leveraged ETF. Now, let's assume that the index falls 10% daily. Daily change in the indexETF2x leveraged ETF 100100-10%9080+10%9996 So, you see that a leveraged fund will require a 12.5% change in the index to reach the initial level of 100, whereas the replicating ETF will require an 11.1% return to come to the initial level of 100.   Thus, a leveraged ETF will have a negative bias. Such leveraged ETFs are not suitable for a long-term investment, as choppy markets can essentially erode your investments. To mitigate this, the ETF firms came up with a monthly reset strategy such that the risks of a daily reset are avoided.  In a monthly reset option, ETFs provide a return every month rather than daily - which seems like a very appealing alternative to the daily reset issue. A monthly reset is not a better alternative but only a different option.   However, there's a catch to this reset. This reset happens only on a pre-specified day – usually on the first trading day of the month. Traders who purchase or sell on this specific day can take advantage of the ETF's leverage. Monthly reset products can yield different results than one-day reset products. The monthly reset may be advantageous in unstable markets, but in trending markets, the more extended reset period implies the fund may be under- or overexposed within the month.  Leveraged funds continue to transform and develop new techniques to maximize returns. However, all such methods have found no solution to the beta problem.  (β) decay on account of the daily resetting. The beta (β) of a leveraged fund is the ratio of the fund's realized cumulative return to the index's return in the same period. F is the leveraged return of the fund and X is the underlying index return.  Now, beta drift (BD) is the difference between the beta (β) and the ETF leverage denoted by L.  BD = β – L Now, this BD is also known as a beta decay because the β falls below the fund's leverage in the longer run. For a daily reset, this decay is on the higher side than the monthly reset.   In response to this, monthly resets have leveraged up to a fixed period, i.e., a month.  The bottom line is that a monthly reset is just another reset technique similar to a daily reset; in the long run, both types of ETFs share identical characteristics.   Such decay is present in both these ETFs and risk-averse buy-and-holds investors would not appreciate the same.   Volatile markets will wreak havoc on both these ETFs, and they are sure of underperforming compared to their underlying index in the long run due to the negative bias of these funds.  These options are great for an active investor, but due diligence before proceeding is necessary. FAQs What does it mean when an ETF resets? Most leveraged ETFs reset daily and start each day afresh. However, that is not the most prudent strategy for an investor in the long run. In a monthly reset option, ETFs provide a return every month rather than daily – which seems like a very appealing alternative to the daily reset issue. A monthly reset is not a better alternative but only a different option. However, there’s a catch to this reset. This reset happens only on a pre-specified day – usually on the first trading day of the month. Traders who purchase or sell on this specific day can take advantage of the ETF’s leverage. How often is the reset done for the majority of ETFs with resets? These leveraged ETFs reset daily and start each day afresh. However, that is not the most prudent strategy for an investor in the longer run. Let’s understand this, a very volatile market might have a lot of upswings and downswings, and thus, this might erode your holding. Generally, leveraged ETFs have a negative bias. When should I exit ETF?   An investor can sell off his Exchange Traded Fund in two ways-    Sell openly in the stock market, the most chosen one.    Gather enough ETF shares to make a creation unit (mostly 50000 units) and sell it back to the fund. Generally, only Institutional investors have this option open due to its higher costs. When the fund gets this creation unit, it is destroyed, and the underlying security goes back to the redeemer.  Do ETFs give good returns?   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 reduces 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.  TALK TO AN EXPERT

ETFs were once seen only as a substitute for mutual funds, but now ETFs are caught in a broader light. ETFs now help investors reach all corners of the financial markets independent of geographical boundaries.   First dominated by HNIs (High Net-worth Individuals) and investment companies ETFs have allowed small investors to enter markets. ETFs, nowadays, is also seen as a cheaper and more efficient alternative to hedge funds which are typically out of reach of retail investors.   According to the US Securities and Exchange Commission ‘Hedge funds pool money, from investors and invest in securities or other investments to get positive returns. Hedge funds are not regulated as heavily as mutual funds. Generally, they have more leeway than mutual funds to pursue investments and strategies that may increase the risk of investment losses. Hedge funds are limited to wealthier investors who can afford the higher fees and risks of hedge fund investing, and institutional investors, including pension funds.'  To the casual observer, ETFs and hedge funds might not look similar, but several ETFs look like hedge funds by adopting various strategies. ETFs cannot directly mirror the hedge funds but replicate their performance using the assets in question. Some ETF strategies that act like Hedge funds  1. Direct approach  ETFs are highly liquid securities tradeable on the stock exchange. Thus, it doesn't allow them to hold Hedge Funds since hedge funds are illiquid and come with lock-in periods.   Then such ETFs rely on other strategies to get the job done. One strategy is the direct strategy in which the ETF will directly take positions in the underlying assets needed to provide the promised return by passive management or active management.   ETFs have brought several hedge fund strategies like long/short, market neutral, currency-carry, etc., strategy to the picture.   A long/short strategy is one in which the management has both long and short positions in securities, covering both sides and compensating for any losses.  Managers take a long position in undervalued stocks and a short position in overvalued stocks. A market-neutral strategy is similar to a long/short plan. A currency carry strategy is a strategy that uses a low-interest-rate currency to fund the trade in a high-interest-rate currency.  Similarly, ETFs will use a direct approach; a long/short ETF can directly short the underlying security, buy an inverse ETF, or use a swap agreement with banks. A currency-carry ETF might use currency-forward contracts.   2. Hedge Fund Replication  ETFs, replicate the returns of a hedge fund. Hedge funds are generally very secretive in their work; however, they report their returns to hedge fund indexing firms. The ETFs then try to replicate these returns with the help of the liquid assets at hand.  Hedge fund replication ETFs attempt to match hedge fund indexes as closely as possible with liquid assets. Liquid assets include things like stocks and bonds, although other ETFs with broad equities or bond exposure is more common.   These ETFs use complex mathematical and statistical tools to replicate such returns. Naturally, since ETFs are more transparent and have to report their holdings daily, the strategy is out in the open!  IM DBI Hedge Strategy ETF and the IM DBI Managed Futures Strategy ETF are some examples of Hedge Fund Replicating ETFs listed in the European markets.  3. Copycat  The third way to replicate a hedge fund is to copy them completely! Hedge funds are by law bound to share their portfolio allocations on a quarterly lagged basis.   Copycat ETFs use this publicly available information to decode the hedge fund's assets and then base their securities on such assets. These are primarily liquid securities like bonds and stocks.   The largest Copycat ETF is the Motley Fool 100 Index ETF, with an AUM of $532.52 million.  Bottom line is that ETFs cannot fully be hedge funds but can very correctly replicate them.   In an interview given to Morningstar on the launch of ProShares Hedge Fund Replication ETF (HDG), Joanne Hill, Head of Institutional Investment Strategy (IIS) at ProShares, opined that 'the idea here is that you can take a broad-based index like HFRI, which it captures the performance statistics of about 95% of the assets of the hedge fund industry; it has 2000 hedge funds in it.   So, when you look at that, you can reduce the returns and risk features into six or more tradable factors. So, hedge fund replication seeks to capture these return and risk characteristics, but it does it in a way that you can move in and out, trade it, and see the factors – thus making it accessible to a wider group of investors than available.'  Thus, ETFs have successfully delivered the hedge fund experience to the common masses. FAQs What are the top three ETFs?  Ans. Vanguard is the issuer of The Vanguard Total Stock Market ETF (VTI). $271.6 billion in assets are being managed.  State Street Global Advisors is the issuer of the SPDR S&P 500 ETF (SPY). $373.3 billion in assets are being managed.  iShares is the issuer of The iShares Core MSCI EAFE ETF (IEFA).  Can an ETF be a hedge fund?  Ans. ETFs can function like hedge funds even though they cannot possess them. In summary, ETFs are able to implement a variety of well-liked hedge fund strategies, including long/short, market-neutral, currency-carry, merger arbitrage, etc.  What is the best ETF strategy?  Ans. The ETF trading strategies that are best for beginners include dollar-cost averaging, asset allocation, swing trading, sector rotation, short selling, seasonal patterns, and hedging.  Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

In this blog, we will explore the best ways to save for your child's education! Education in India is viewed as a stepping stone to a good future. ‍The race to get children into the best colleges is so keenly fought that every Indian parent can qualify for a role of an expert counselor. The “padhai karo, nahi tho achchi Naukri kaise lagegi” line is so often heard that it could very well replace the “so jao, varna gabbar aa jayega” line. ‍The belief that a good education will provide for a good life, is entrenched in the way we think. Indian parents are willing to go to lengths to provide their children with the best education and are ready to spend as much as it takes. Many parents start saving when their child is very young, to prepare for future college-related expenses. ‍In this blog, we will look at 5 avenues where Indian parents can consider investing their hard-earned money. 5 Best ways to save for your child's education Your child's education does not deserve to be compromised and here are some ways in which you can plan ahead and start taking small steps toward your child's college fund. ‍Let's get started. ‍1. Investing in Mutual Funds We're sure you have heard of the phrase 'mutual funds' Sahi hai! And when it comes to saving up for long-term investments, mutual funds definitely Sahi hai! ‍Investing in mutual funds as a way to build a corpus fund for a particular goal has gained a lot of interest in the past decade or so. Building a retirement fund or a home purchase fund is very common and a small percentage of investors are also parents keen on saving up for their child’s education. Investing in mutual funds is viewed as a potentially high-return investment with the risk involved since the returns on mutual funds are market-related. Markets have been extremely volatile in the recent past, but mutual funds should still form a large part of an education fund, considering the longer time horizon involved. It is possible to invest as per your risk preference and redemption is far easier when you need the money. With Systematic Investment Plans (SIPs) that give you the option of investing monthly, there is a possibility of better returns compared to one-time/lumpsum investment mutual funds, especially over longer investment periods.   INVEST IN MUTUAL FUNDS 2. Exchange Traded Funds (ETFs) ‍For those of you who are unfamiliar with the concept of ETF, it is basically a basket of securities that is traded on an exchange. They are similar to mutual funds. ‍Investing in ETFs can prove to be a successful investment option when saving up for your child's education. The reason is, that you will be investing your money in dollars, therefore, if your child aspires to pursue his/ her education abroad, the dollar holds more value than many other currencies. INVEST IN ETFs 3. Buying Insurance Plans Buying an insurance plan to provide income security to your child is also an option. Many of these so-called child plans provide insurance cover and also market-linked returns after a fixed tenure. ‍However, returns on these plans have been volatile and impacted by frequent regulatory changes. Also, child insurance policies may not be the best investment option, because they are bound by various terms and conditions. 4. Buying Real-Estate Yes, this holds true for parents trying to save up for their children even today. Real Estate is considered by many, to be a good long-term investment. Since the time horizon that parents should consider is 15-20 years, real estate investments are good to maintain a diversified portfolio. But, real estate has lost its sheen as an attractive investment option over the past decade or so, due to excess inventory and regulatory impacts. ‍There are a number of hassles when investing in real estate. Other than the declining returns – unreliable deals, possible legal tangles, and a high wait time when one wants to sell are some of the factors to consider if this is an investment option for you. 5. Investing in PPF In India, the Public Provident Fund, or PPF is the go-to option for many parents when investing in their child’s future. It is a low-risk option that is exempt from tax on the withdrawal. The returns are lower but predictable. However, there is a limit to the amount of money one can invest through this route – the upper limit is Rs. 1,50,000, annually. PPFs are also less suited when an investor is ready to take more risk and willing to invest in market-linked funds. FAQs How can we save for children's education? Ans. Investing in mutual funds, exchange-traded funds, buying insurance plans, buying real estate, investing in PPF.  What is a good educational plan? A solid educational plan will give your family and you a road map for your future educational and professional objectives. Although parents and kids are free to start as early as they'd like, planning for college and technical training at the middle school level is not too early.  What is the best savings plan for a child? Ans. Sukanya Samriddhi Scheme, Make Investments in Gold, Invest in Equity Mutual Funds, Investments via Recurring Deposits.   Why save for your child's education? Ans. You can avoid taking on significant debt to pay for your child's higher education by starting a savings plan early, even before they enter kindergarten.  What is the right time to start saving for your child's education? The right to start saving for your child's education is as early as possible. The earlier you begin, the better it will be for your investments, as you'll be able to take advantage of the power of compounding. Conclusion We hope now you have a decent idea of what investment options you could consider, as well as the pros and cons of each. In our next post, we will look at why we think mutual funds - through SIP mode - are a good way to build a corpus fund with the goal of educating your child. With this kind of education fund, you can stop worrying about the finances that are required to send your child to the college of her dreams. ‍Your investment today will gift your child a good life, tomorrow. Consult an expert advisor to get the right plan TALK TO AN EXPERT

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant.  The family behind DSP has been very influential in the growth and professionalization of capital markets and the money management business in India over the last one-and-a-half centuries   Let us talk about the consumer product – DSP Dynamic Asset Allocation Fund.  About the DSP Dynamic Asset Allocation Fund  Investment objective The investment objective of the Scheme is to seek capital appreciation by managing the asset allocation between equity and fixed-income securities. The Scheme will dynamically manage the asset allocation between equity and fixed income based on the relative valuation of equity and debt markets.  The Scheme intends to generate long-term capital appreciation by investing in equity and equity-related instruments and seeks to generate income through investments in fixed-income securities and by using arbitrage and other derivative strategies.  Investment process   Investment Strategy for Equity Investments - The stock selection process proposed to be adopted is generally a bottom-up approach seeking to identify companies with long-term sustainable competitive advantage (as this is one of the key factors responsible for withstanding competitive pressures and does not allow rivals to eat up any excess profits earned by a successful business). The fund would also use a top-down discipline for risk control by ensuring the representation of companies from select sectors.  Investment Strategy for Debt Investments - The Fund Manager will invest only in those debt securities that are rated investment grade by a domestic credit rating agency such as CRISIL, ICRA, CARE, FITCH, etc., or in unrated debt securities that the Fund Manager believes to be of equivalent quality. The securities mentioned above could be listed, unlisted, privately placed, secured, unsecured, rated, or unrated (subject to the rating or equivalency requirements discussed above) and of any maturity. The Fund may also invest in Securities of issuers supported by the Government of India or State Governments subject to such securities satisfying the criteria relating to rating etc.  Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 65% and sectoral major exposure is Banks which account for roughly 8% of the portfolio. The top 4 sectors hold nearly 18% of the portfolio.  Note: Data as of 31st Dec 2022. Source: DSP MF  Top 5 holdings DSP Dynamic Asset Allocation Fund  Name Weightage % HDFC Bank Limited 3.93 Bajaj Finance Limited 3.29 ICICI Bank Limited 2.22 Avenue Supermarts Limited 2.14 Maruti Suzuki India Limited 1.94 Note: Data as of 31st Dec 2022. Source: DSP MF  Performance Note: Data as of 31st Dec 2022. Source: DSP MF  The fund has generated a CAGR (Compounded Annual Growth Rate) of 8% since its inception.  Fund manager  Mr. Atul Bhole is the fund manager and brings over 16 years of experience. He joined DSP in May 2016 and is the Vice President. He is managing the fund since February 2018. He has previously worked with Tata Asset Management Ltd, JP Morgan Services (India) Private Limited, and State Bank of India (Treasury). He holds a B. Com, MMS (Finance from JBIMS), and Chartered Accountant (ICAI India).  Mr. Dhaval Gada is the fund manager and brings over 13 years of experience. He joined DSP in September 2018 and is managing the fund since September 2022. He has previously worked with Sundaram AMC Pvt. Ltd, Motilal Oswal Securities Ltd, Evalueserve.com Pvt. Ltd. He holds a PGDM – Finance from Welingkar Institute of Management.  Mr. Laukik Bagwe is the fund manager and brings over 22 years of total professional experience. He has been managing the scheme since July 2021. He has previously worked with Derivium Capital & Securities Private Limited, and Birla Sunlife Securities Ltd. He holds a B.Com, and PGDBA (Finance).  Who should invest in DSP Dynamic Asset Allocation Fund?  Investors want to invest in the equity markets but don't know how to begin.  An investor who gets confused by the noise when markets fluctuate and also believes that an unemotional asset allocation strategy has a higher chance of success.  Investors not looking to chase the highest returns.  Why invest in this Fund?  Helps you invest unemotionally by 'doing what it needs to', instead of you having to react to changing markets.  It offers you 'built-in-advice' & actions on your behalf.  Offers the potential to grow your wealth by investing in equities but with a smoother long-term investment journey.  It tries to reduce the impact of market fluctuations in the portfolio.  Potential capital preservation during falling markets through debt allocation.   Time horizon  One should look at investing for a minimum of 5 years or even more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The DSP Dynamic Asset Allocation Fund was launched in February 2014 and in its track record of nearly nine years, the fund has delivered ~8% CAGR consistently. Thus, it is best for investors who are willing to take equity exposure but not knowing how to begin and where to begin. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

ICICI is a leading Asset Management Company (AMC) in the country focused on bridging the gap between savings and investments and creating long-term for investors through a range of simple and relevant investment solutions.    Let us talk about the consumer product – ICICI Prudential Value Discovery Fund. https://www.youtube.com/shorts/C3w_oegGkFY About the ICICI Prudential Value Discovery Fund  Investment objective To generate returns through a combination of dividend income and capital appreciation by investing primarily in a well-diversified portfolio of value stocks.  Investment strategy   Diversification: The Scheme aims at maintaining a well-diversified portfolio with the flexibility to invest across sectors and market capitalizations.  Value investing: The Scheme, through its process of discovery, seeks to identify stocks whose prices are low relative to their historic performance, earnings, book value, cash flow potential, and dividend yield.  Special Situations: The fund manager may also capture special situations. Typically, these are large-cap stocks that the fund manager believes are beaten down due to non-fundamental reasons.  Bottom-Up Approach: The scheme shall adopt a bottom-up approach in identifying stocks that have strong fundamentals but are trading at prices lower than their intrinsic value.  Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 60% and sectoral major exposure is Banks which account for roughly 13% of the portfolio. The top five sectors hold nearly 50% of the portfolio. Note: Data as of 31st Dec 2022. Source: Morningstar, ICICI MF Top 5 holdings of ICICI Prudential value discovery fund Name Weightage % Oil & Natural Gas Corporation Ltd 8.79% Sun Pharmaceutical Industries Ltd 7.95% NTPC Ltd 6.42% Bharti Airtel Ltd 5.07% ICICI Bank Ltd 4.48% Note: Data as of 31st Dec 2022. Source: ICICI MF  Performance Fund name 3M 6M 1Y 3Y 5Y 7Y 10Y ICICI Pru Value Discovery Dir 2.93 9.01 11.12 24.97 13.61 15.55 17.92 S&P BSE 100 TRI -1.44 2.52 4.36 15.23 10.75 14.39 12.89 Note: Data as of 30th January 2023; Data is for Direct Plan Growth Option Source: ICICI MF  The fund has generated a CAGR (Compounded Annual Growth Rate) of 19.70% since its inception.  Fund manager at ICICI prudential discovery fund growth Mr. Sankaran Naren has been managing the fund since January 2021 and is associated with the AMC since October 2004. He oversees the entire investment function across the Mutual Fund and the International Advisory Business of the Company. Mr. Naren joined the AMC in 2004 as a fund manager and has worked in various capacities in the investment function culminating in his taking over as the Chief Investment Officer. He currently manages some of the flagship schemes of the ICICI Prudential Mutual Fund. Mr. Sankaran Naren has rich experience of around 30 years in almost all spectrums of the financial services industry ranging from investment banking, fund management, equity research, and stock broking operations. During his career, he has also worked with organizations such as Refco Sify Securities India Pvt. Ltd, HDFC Securities Ltd, and Yoha Securities in various capacities. He holds a B. Tech from IIT Madras and PGDM from IIM Calcutta.  Mr. Dharmesh Kakkad is also the fund manager since January 2021. He is associated with ICICI Prudential Asset Management Company Limited since June 2010. Prior to working in the Dealing function, he was working in the Operations Department of ICICI Prudential AMC. He is a CFA Charter holder in USA, CA, and B.Com.  Who should invest in ICICI Prudential Discovery Fund?  Investors who are willing to participate in the process of discovering stocks that are undervalued but have the potential to do well due to strong fundamentals.  Investors who are willing to invest for a fairly long term with an aim to benefit over the full investment cycle and have over 5 years of the investment horizon.  Why invest in this Fund?  The scheme’s investments in undervalued stocks provide a reasonable margin of safety and help to minimize downside risk in a market fall.  Horizon  One should look at investing for a minimum of 5-7 years or even more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The ICICI Prudential Value Discovery Fund was launched in August 2004 and in its track record of nearly nineteen years, the fund has delivered ~20% CAGR consistently. Thus, it is best for investors who are willing to take equity exposure and are looking for long-term investment. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant.  The family behind DSP has been very influential in the growth and professionalization of capital markets and the money management business in India over the last one-and-a-half centuries   Let us talk about the consumer product – DSP Tax Saver Fund. About the DSP Tax Saver Fund  Investment objective The primary investment objective of the Scheme is to seek to generate medium to long-term capital appreciation from a diversified portfolio that is substantially constituted of equity and equity-related securities of corporates and to enable investors to avail of a deduction from total income, as permitted under the Income Tax Act, 1961 from time to time.  Investment process   The fund follows the following investment strategy   The Investment Manager will select equity securities on a bottom-up, stock-by-stock basis, with consideration given to low price-to-earnings, price-to-book, and price-to-sales ratios, as well as improving margins, asset turns, and cash flows, amongst others.  The fund is sector-agnostic and also market-cap agnostic.  Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 70% and sectoral major exposure is Banks which account for roughly 32% of the portfolio. The top 4 sectors hold nearly 55% of the portfolio.  Note: Data as of 31st Dec 2022. Source: DSP MF  Top 5 Holdings DSP Tax Saver Fund Name Weightage % HDFC Bank Ltd 9.68 ICICI Bank Ltd 7.59 Infosys Ltd 6.31 State Bank of India Ltd 5.04 Axis Bank Ltd 4.63 Note: Data as of 31st Dec 2022. Source: DSP MF Performance  Note: Data as of 31st Dec 2022. Source: DSP MF  The fund has generated a CAGR (Compounded Annual Growth Rate) of 14.25% since its inception.  Fund manager  Mr. Rohit Singhania is the fund manager and brings over 20 years of experience. He joined DSP in September 2005, as Portfolio Analyst in the firm’s PMS division. He was transferred to the Equities Investment team in June 2009 as Research Analyst. Previously, he was with HDFC Securities Limited as a part of its Institutional Equities Research Desk. He spent 13 months at HDFC Securities as Sr. Equity Analyst. Prior to HDFC securities, he was employed with IL&FS Investment Limited as Equity Analyst.  Mr. Charanjit Singh is fund-managed and brings over 17 years of total professional experience. He has been managing the scheme since January 2021. He has previously worked with B&K Securities India, Axis Capital Ltd, BNP Paribas India Securities, Thomas Weisel Partners, HSBC, IDC Corp., and Frost & Sullivan.  Who should invest in DSP Tax Saver Fund?  Investors looking to save tax by investing in equity-oriented funds with the lowest lock-in of three years. An individual can save up to Rs 46,800 by investing up to Rs 1.5 lakh in this fund.   Why invest in this Fund?  Helps you aim to grow your wealth by investing in a mix of large & mid-sized companies, offering growth at reasonable prices.  The lowest lock-in period of 3 years as compared to other tax saving options under Section 80C.  Can help you beat the impact of rising prices over the long-term   Time horizon  One should look at investing for a minimum of 3 years or more due to lock-in.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The DSP Tax Saver Fund is one of the oldest funds with a track record of more than 16 years and has delivered ~14% CAGR consistently. Thus, it is best for investors who are willing to take some additional risk for good returns over a long-term spectrum and also at the same time look for saving tax.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

The cost of studying for an MBA abroad can be high compared to studying MBA in India. Indian students have to pay higher tuition fees than international students and have to manage living costs in a foreign currency. All these factors can affect the overall cost of studying MBA abroad much higher.   Students can choose from any of the foreign nations to complete the MBA program. The cost of an MBA is determined by the area of expertise and study location you choose. The typical tuition cost and daily living expenses for international students are listed below Pre-arrival costs for studying MBA abroad  Even before departing for an MBA abroad, an international student must pay a range of expenditures. The pre-arrival costs associated with admission exam registration fees, application fees, visa application fees, flights, etc., must be included in the MBA fees in foreign countries. Look at the estimated pre-arrival costs included in the MBA abroad tuition for Indian students:  Costs:  IELTS registration fee – INR 18,000-19,000   TOEFL registration fee – INR 14,550   GRE registration fee – INR 15,700   GMAT registration fee – INR 21,000   Airfare (depending on destination) - INR 30,000-120,000   https://www.youtube.com/watch?v=sIJ5VeZQODE Application fees for International MBA  When enrolling for an MBA overseas, you will be required to pay an application fee. This cost is included in the foreign MBA pre-arrival costs. Application costs for MBA at universities abroad:  USA – INR 16,000 to 24, 000   UK – INR 20,000  Canada – INR 3,000 to 20,000   Australia – INR 4,000 INR to 20,000   New Zealand – INR 2,000 INR to 7, 000  These ranges are for a single application. The total cost of applying to multiple business schools can go higher. Some universities do waive application fees for candidates but a huge set of universities do levy these fees on international students.  Application fees for visas for MBAs abroad  The cost of applying for a visa is one of the many pre-arrival fees for overseas students. There are many types of student visas that are required by various foreign nations; applications must be submitted on time and with the required fee. Student visa categories and associated application costs for MBA study abroad:  F-1 student visa (USA) - INR 41,000 to 50,000   Tier 4 student visa (UK) - INR 35,000 to 40,000   Canadian study permit (Canada) - INR 12,000 to 15,000   Student visa subclass 500 (Australia) - INR 36,000 to 37,000   New Zealand student visa (New Zealand) - INR 28,000 to 29,000  Living expenses for international students abroad  The living costs for international students are one of the significant costs associated with an MBA abroad. Keep in mind that living expenses in other countries are much higher than in India and must be taken into consideration. Only a select few of you will be fortunate enough to receive an all-inclusive scholarship that will cover your living costs, so for the rest of you, you will need to properly budget for this when determining the cost of an MBA program overseas.  Before looking at the cost of living for an MBA abroad, you should be aware that the precise amount will depend on the type of housing you select, such as on-campus or off-campus facilities, whether you have a private or shared room, the amenities you desire, and where you are located in the country. When calculating the price of an MBA program overseas, you'll discover that certain places have significantly higher monthly costs than others. So, if money is limited, look for universities in areas with low costs of living. In the majority of foreign nations, international students are also permitted to work part-time, which can be a very helpful source of revenue for your daily expenditures.  Annual living expenses for MBA study abroad:  USA: INR 765,000 - INR 13,80,000   UK: INR 920,000 - INR 18,40,000   Canada: INR 840,000 - INR 12,25,000   Australia: INR 920,000 - INR 16,86,000   New Zealand: INR 765,000 - INR 11,50,000   If you want to calculate the cost of college then you can check this link here.  Conclusion  Yes, the expense of an MBA overseas may seem overwhelming to you, but try not to get discouraged if the price tag is out of your price range. There are many financial aid options available specifically for international students to allay your financial concerns and inspire you to pursue a degree overseas. You can achieve your objective by working harder, taking on part-time jobs, or saving as much money as you can. Once you finish the program, all of your investment will eventually provide fantastic profits.  FAQ Which country is the cheapest for MBA?  Germany is said to be the cheapest country for doing MBA. Is MBA abroad expensive? In India, an MBA will set you anywhere between INR 7,50,000 and INR 25,000. On the other hand, the cost of an MBA will range from INR 20,00,000 to 75,00,000 if you plan to study abroad in a country like the United States, the United Kingdom, Canada, or Australia. Is MBA cheaper in India or abroad? This is a completely different premise, and the solution is straightforward: if you can afford it, an MBA from a mid-level university abroad is preferable to an MBA from a private institute in India. The return on investment is just higher. A few foreign universities provide MBA courses at significantly cheaper costs than anticipated.  Can I study MBA abroad for free?  Search for grants and scholarships if you want to study abroad without breaking the bank. Each year, thousands of overseas students get financial aid from universities, foundations, charities, and government agencies for their living expenses and tuition.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

While you've seen how ETFs can be a good addition to your portfolio, there can be some risks associated with ETFs. Understanding any risks associated with your investment beforehand is always beneficial for you. Risks associated with ETFs Source: Freepik 1. Market risk   Often called systematic risk, this is the single most significant risk while investing in ETFs.   An ETF is a collection of its underlying securities. Thus, the movement of these securities in the stock market affects the ETF as well.   For instance, if an ETF is tracking the Sensex and it drops by 20%, nothing in the world can stop this ETF from also falling. No advantage of the ETF will harbor this fall but can cushion it, if not entirely prevent it.  2. 'See it before buying' risk  This type of risk is the second most significant risk associated with investing in ETFs. An investor should be very vigilant when choosing an ETF.   Given the current scenario wherein more than 7600 ETFs are trading in the stock markets worldwide, studying carefully and looking at its underlying assets before investing becomes a paramount prerequisite.  Several ETFs can be tracking the same sector but may vary considerably by their underlying assets.   For instance, an ETF tracking the pharmaceutical industry should follow next-gen pharma companies having innovation in R&D, along with a promising future.  Such an ETF will have a higher return compared to an ETF tracking the pharma sector (but not tracking such high-potential companies).   Hence, 'judging a book by its cover' risk becomes vital.  3. Counterparty risk  Counterparty risk is the probability that the counterparty in a transaction may not fulfill part of the deal and default on its obligations. An ETF can track the underlying index in two ways.   It holds the underlying securities   ETF swaps investor cash with a bank or financial institution for the index's performance.   The former is a physical ETF, and the latter is a synthetic ETF.   Both investments have a certain degree of counterparty risk, but the probability is minimal and somewhat higher in the second.   However, we must keep in mind that ETFs are extensively collateralized and safe.   4. Exotic-Exposure risk  As stated earlier, several types of ETFs are doing rounds in the market, including some very complex specialized ETFs like inverse ETFs and leveraged ETFs.   Such ETFs use complex strategies to invest money, which may not always pan out the way one hopes. Hence doing due diligence before investing in such exotic ETFs is indispensable.   Similar to ice cream, moving beyond traditional, plain, and time-tested flavors increases the risk of being left with a sour taste.  5. Shutdown risk  Several ETFs are floating on global markets, but the investors love not all; hence some close down! About 100 ETFs close down every year, thus leaving their investors high and dry.   When an ETF is closed down, the investors get compensation in cash after liquidating the fund's holdings. However, this isn't an enjoyable experience in general.   Improper tracking of records on the part of the fund can lead to several grievances and, most importantly, mental agony for the investor.  6. Hot-new-thing risk  ETFs launched with such pomp trick investors into subscribing to such ETFs without doing their due diligence. This risk needs to be countered by the investor's conscience.  One must thoroughly study the underlying assets and the tracking methodology without bias of the splendors advertising.   According to ETF.com, a rule of thumb is that the investment amount in an ETF should be inversely proportional to the press it gets.  7. Tax risk  ETFs can have different structures and strategies, resulting in differentiated tax liabilities.   Some ETFs may use an in-kind exchange mechanism and thus have lower capital gains tax liability than those that use complex derivatives to track the underlying index.   Therefore, this can hamper the investor's profits and tax non-tax liabilities. Unless an investor is entirely aware of the fund's work, they may be caught off-guard.  8. Trading risk  ETFs are listed on the stock markets and can be traded just like a regular stock; this comes with its own set of liquidity risks. An ETF might not be very liquid, thus casting a shadow over its trading ability; it's the first advantage.  An ETF having a small spread between bid prices is how to tackle this illiquidity problem. Some ETFs open with pomp and with time lose their sheen; thus, the illiquidity problem could set in.   Investors must vary of such ostentatious display by the ETFs - often called a Crowded- Trade risk but is related to trade ability risk.  ETFs deliver what they promise to deliver; reading the fine print is what differentiates an investor from a good investor FAQs What are the risks associated with ETFs? Here are some of the main risks associated with ETFs Market risk 'See it before buying' risk Counterparty risk Exotic-Exposure risk Shutdown risk Hot-new-thing risk Tax risk Trading risk Are ETFs riskier than funds? The degree of risk depends on the fund and ETF. Some are low-risk, medium, and high. It's best to consult a professional before investing. What are the pros of investing in ETFs? The benefits of investing in ETFs are: Lower expense ratiosDiversification (similar to mutual funds) Tax efficiency Easy to trade just like stocks What is the biggest risk associated with ETFs? The biggest risk is a Market risk. If you buy S&P 500 ETF and the S&P 500 goes down then the loss is inevitable. How to choose the best ETF in India? Here are some checkpoints to complete before choosing the best ETF in India: Liquidity: How easy is it to withdraw your money from any given ETF Expense Ratio: What is the cost of managing the ETF and how much percentage would you have to pay? Tracking errors in any ETFs Check past performances and returns of the ETFs you will be investing in Is ETFs worth investing? A fantastic way to vary your investment portfolio is with an ETF. Whenever you participate in the stock market, you have a finite amount of equity options Consult our expert to discuss the right plan for you. TALK TO AN EXPERT

REITs or real estate investment trust funds work similarly to mutual funds or exchange-traded funds, except REITs invest in income-generating real estate. The main advantage of these trusts is that they earn from the real estate market without buying or maintaining these properties. India currently has 3 REITs and 2 InvITs or Infrastructure Investment trusts listed with SEBI. The only difference between the two is the asset type under consideration. REITs would own and operate a commercial space while InvITs invest in infrastructure. Why invest in real estate investment trust funds? From an investor's point of view, apart from the decreased responsibility of maintaining the property, REITs offer quick and easy liquidation, basically overcoming all limitations holding a physical property for investment purposes would entail. REITs can be considered a steady income source in high inflation as they offer risk-adjusted returns while helping diversify one's portfolio. From the government’s point of view, the rate of infrastructure development is a measure of the country’s growth. REITs are relatively cheaper and more accessible than investing in real estate, making it easy to invite investors.  Furthermore, REITs ensure concrete structuring of the real-estate financing industry. With the recent relaxation in REIT compliance rules, the Indian government wants foreign fund managers to relocate to India. How can you lose money in a Real estate investment trust fund? While there always exists a certain amount of risk in every investment, each type of REIT has its limitations which we look into going further. A standard limitation that all REITs face regardless of the asset investment is the slow return on investment. Since the model works on the capital appreciation and rental yield, REITs are susceptible to market fluctuations. Types of REITs and how to invest in them? Although there can be many bifurcations to the types of REITs, we categorize them on the basis of infrastructure - 1. Retail REITs Such trusts have heavy investments in freestanding retail or shopping complexes. Given retail would require a considerable amount towards the maintenance of the property, it won't be a surprise if most of these structures are owned or/and managed by REITs. The majority of the income from these investments is from the rents that tenants pay. Hence, we advised seeking strong anchor tenants to avoid the end of these stores (e.g., grocery stores or home improvement stores typically experience an excellent cash flow). While investing in retail REITs, the REITs themselves must have a strong balance sheet, preferably with less short-term debt. In case of economic disturbance, REITs with a significant cash position have the advantage of increasing their portfolio. 2. Residential REITs Residential REITs majorly earn from rents from tenants. The rent collected from these properties depends on how popular the areas are Typically, areas where renting a house is more affordable than owning one are the ones that would yield higher returns. As a result, trusts in this category tend to focus on large urban centers. REITs to look out for should have the most available capital and strong cash flows. As long as the demand for residential properties keeps rising and the supply remains low, the portfolio should yield good returns. 3. Healthcare REITs However new the concept of healthcare REITs is, as the healthcare cost and average Indian age continue to climb, healthcare REITs would continue to gain popularity. In the case of healthcare REITs, apart from the infrastructure and occupancy fees, REITs rely on Medicare and Medicaid reimbursement and private pay. An ideal option for such REIT would be a company with high, low-cost capital and a strong balance sheet on top of well-diversified property types and customers. 4. Office REITs Since these depend heavily on long-term leases, any factor that would affect a tenant economically would affect the performance of the overall portfolio, i.e. unemployment rate, state of the economy, and other things. Other factors to look out for would be the location of the properties and the capital available for acquisitions. A REIT that invests in average properties in Mumbai would fare better than luxurious office space in Udaipur.  5. Mortgage REITs Such REITs invest in, you guessed it, Mortgages instead of equity. Mortgage REITs lend money to real estate either through loans or through the acquisition of mortgage-backed securities. The risk to such investments lies in increased interest rates, leading to a decrease in the mortgage REIT book value and hence decreasing the stock prices. Furthermore, an increased interest rate leads to more expensive financing and reduced weight of a portfolio of loans. In a low-interest-rate environment, most REITs would trade at a discount to net asset value per share when there is a possibility of an increase in interest rate. Listed REITs and InvITs in India 1. Embassy REIT (2017) The company owns and operates 42.6 million square feet of infrastructure, office parks, and buildings. The properties under their portfolio are in Pune, Mumbai and Bengaluru, and the National capital region. 2. Mindspace REIT (2020) Managed by K Raheja Corp Investment Managers LLP., the total leasable area under management is 31.3 million sq. ft. Their portfolio is well-diversified into business and IT parks spread across the main commercial hubs in India. It is well-established in Mumbai, Pune, Hyderabad, and Chennai. 3. Brookfield India Real Estate Trust (2019) Being the only institutionally managed REIT, Brookfield operates in Kolkata, Gurgaon, Mumbai, and Noida. The trust's portfolio covers 18.6 million sq. ft of commercial real estate. 4. IndiGrid Trust (2016) IndiGrid is one of the first movers in the Infrastructure Investment Trust (InvIT) in the power transmission sector. Ingrid owns and manages power transmission networks and renewable energy assets throughout India. Seven thousand five hundred seventy circuit kilometers of transmission lines and 13,550 MVA transformation capacity make IndiGrid the most significant Power transmission-based InvIT in India. 5. IRB InvIT Fund (2017) IRB Fund invests in infrastructure development and construction in the roads and highway sector under the sponsorship of IRB infrastructure developers Limited. It is listed with India's Securities and Exchange Board since 2008. It has owned and maintained six toll roads in Maharashtra, Karnataka, Gujrat, Tamil Nadu, and Rajasthan. Lastly, although REITs offer a slow return on investments, they offer as high as 90% of their income as dividends. Being regulated by SEBI and disclosed capital portfolio makes it a safe bet. FAQs How can I invest in REIT directly in India? REITs or real estate investment trust funds work similarly to mutual funds or exchange-traded funds, except REITs invest in income-generating real estate. Investing in REITs means buying certain units of stock on the stock market, so you need a DEMAT account to invest in REITs.   Can you lose money in REITs? While there always exists a certain amount of risk in every investment, each type of REIT has its limitations. A standard limitation that all REITs face, regardless of the asset investment, is the slow return on investment. Since the model works on the capital appreciation and rental yield, REITs are susceptible to market fluctuations.  Is REIT safer than stocks? REITs can be considered a steady income source in high inflation as they offer risk-adjusted returns while helping diversify one’s portfolio. REITs are relatively cheaper and more accessible than investing in real estate, making it easy to invite investors. REITs have historically given competitive returns.   How do beginners invest in REITs? Any investor needs a DEMAT account to buy stocks on the stock market. It is important to know the stock in detail before making an investment. Conduct extensive research before investing in any stocks. It would be safe for a beginner to consult a financial expert before making an investment.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

ICICI is a leading Asset Management Company (AMC) in the country focused on bridging the gap between savings and investments and creating long-term for investors through a range of simple and relevant investment solutions.    Let us talk about the consumer product – ICICI Prudential Multi-Cap Fund.  About the ICICI Prudential Multi Cap Fund  Investment objective To generate capital appreciation through investments in equity & equity-related instruments across large-cap, mid-cap, and small-cap stocks of various industries.  Investment strategy   The investment universe of the Scheme is a unique blend of large-cap, mid-cap, and small-cap stocks. The Scheme will aim to hold optimum exposure to large, mid, and small-cap stocks depending on the fund manager's view on market valuations.  The portfolio construction involves investing in high-conviction quality stocks. The Scheme will remain sector agnostic and would use a combination of top-down and bottom-up research for stock selection.  A top-down approach will be based on macroeconomic conditions, and underlying trends while a bottom-up approach shall be followed for selecting stocks with growth prospects, low leverage levels, good corporate governance, robust financials, and good cash flow management.  Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 60% and sectoral major exposure is Banks that account for roughly 15% of the portfolio. The top five sectors hold nearly 42% of the portfolio. Note: Data as of 31st Dec 2022. Source: Morningstar, ICICI MF Top 5 holdings of ICICI Prudential Multi-cap Fund Name Weightage % ICICI Bank Ltd 6.45% Infosys Ltd 3.07% HDFC Bank Ltd 3.02% TVS Motor Company Ltd 2.60% Sun Pharmaceutical Industries Ltd 2.50% Note: Data as of 31st Dec 2022. Source: ICICI MF  Performance Fund name 3M 6M 1Y 3Y 5Y 7Y 10Y ICICI Pru Multicap Dir -1.26 3.4 4.37 15.81 10.73 14.47 15.01 S&P BSE 500 TRI -2.52 1.69 2.47 16.00 10.31 14.48 13.4 Note: Data as of 30th January 2023; Data is for Direct Plan Growth Option Source: ICICI MF  The fund has generated a CAGR (Compounded Annual Growth Rate) of 19.70% since its inception. Invest Now Fund manager  Mr. Sankaran Naren has been associated with the AMC since October 2004. He oversees the entire investment function across the Mutual Fund and the International Advisory Business of the Company. Mr. Naren joined the AMC in 2004 as a fund manager and has worked in various capacities in the investment function culminating in his taking over as the Chief Investment Officer. He currently manages some of the flagship schemes of the ICICI Prudential Mutual Fund. Mr. Sankaran Naren has rich experience of around 30 years in almost all spectrums of the financial services industry ranging from investment banking, fund management, equity research, and stock broking operations. During his career, he has also worked with organizations such as Refco Sify Securities India Pvt. Ltd, HDFC Securities Ltd, and Yoha Securities in various capacities. He holds a B. Tech from IIT Madras and PGDM from IIM Calcutta.  Mr. Anand Sharma has been appointed as the Senior Investment Analyst – MF Equity in the Investments Department of ICICI Prudential Asset Management Company Limited w.e.f. November 10, 2021. He joined ICICI Prudential Asset Management Company in April 2014. He has previously worked with Oracle Financial Services Software Ltd. He holds a B.E. (Computer Engineer), and a Master of Management Studies, from the University of Mumbai.  Who should invest in ICICI Prudential Multi Cap Fund?  Investors who aim to take advantage of India’s long-term growth potential with an investment horizon of 5 years and above.   Why invest in this Fund?  The scheme focuses on identifying stocks across sectors that are likely to transform into tomorrow’s market leaders resulting in potential capital appreciation over time.  The scheme’s exposure to mid and small-caps provides an opportunity for higher capital appreciation over the long term whereas the large-cap exposure aims to provide less volatile reasonable returns.  Horizon  One should look at investing for a minimum of 5-7 years or even more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The ICICI Prudential Multi-cap Fund was launched in October 1994 and in its track record of nearly twenty-eight years, the fund has delivered ~15% CAGR consistently. Thus, it is best for investors who are willing to take equity exposure and are looking for long-term investment. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

Economic growth and development are indicators of progress and wealth provided by financial investment. Along with the reserves, exports, government revenue, financial position, and available supply of domestic savings, foreign investment is also necessary for a country's well-being. Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) have recently emerged as essential players in the Indian stock market. They are gradually becoming one of the significant factors contributing to the growth of the financial markets.  Who are FIIs?  Domestic Institutional Investors (DIIs) are those institutional investors who invest in securities and other financial assets of the country where they are located. Investments made by institutions are referred to as institutional investors. For example, investments by institutions or organizations such as banks, insurance companies, mutual fund houses, etc. Foreign Institutional Investors started investing in the Indian stock market only in 1992. FIIs were allowed to invest in securities in listed corporations, likewise as within the secondary market. FIIs can invest in the Indian capital markets only through the country's portfolio investment scheme.  What are DIIs?  Domestic Institutional Investors (DIIs) are those institutional investors who invest in securities and other financial assets of the country they are based in. Institutional investment is defined as investments by institutions or organizations such as banks, insurance companies, mutual fund houses, etc. Importance of FII and DII  DIIs and FIIs account for the liquidity of the stock market. Tracking the institutional investment outflow and inflow helps forecast market trends. Moreover, FIIs have a significant impact on domestic market trends.   FIIs investments in the Indian stock markets reflect their high confidence and positive market sentiments. The FII investments have mixed impacts on the market overall. On the one hand, they increase the scope of the market, whereas, on the other hand, they increase the size of speculation.  Impact of FIIs on the Stock Market Institutional investors are known as market makers, as they trade in a larger quantity of securities than an average individual investor. Stock markets rise and fall depending on their investing activities. A massive inflow of FIIs has continually increased the Indian capital market index and vice versa.  Net Purchase/Sales of FII and DII from 1st Jan 2021 to 1st Mar 2022 The above graphs show the direct impact of FII and DII movement on the BSE Sensex Index. In January 2021, a major FII purchase caused a significant rise in the Indian Stock market. Net Sales of FIIs in February 2022 had a slight negative impact on Sensex. But DII ownership of Indian equities rising quickly with consistent and rising SIP investments has stabilized the market conditions. Since October 2021, the Indian stock market has seen a more significant FII exit and a heavy inflow from DII. Due to the recent uncertainties in the market conditions, a large DII exit caused a significant negative impact on Sensex, among other global factors. It is important to note that there is a positive correlation between the DIIs movement and the Sensex index. This correlation between the movement of the DIIs movement and Sensex shows that the market moves with the DIIs investments.  As an investor, apart from considering other factors, one should analyze the FIIs and DIIs movement to understand how the market will move. Generally, retail investors suffer the most in-stock market correction situations. DIIs & FIIs are basically market makers. A majority of the market movements depend on their investment behavior and buying-selling pattern. From a long-term perspective, one should look at the FII's selling points as an investment opportunity due to heavy market corrections. Moreover, with an increase in Domestic institutional investments, there is a decrease in the volatility caused by FII movements. FAQs Who is stronger FII or DII?   Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) have recently emerged as essential players in the Indian stock market. They are gradually becoming one of the significant factors contributing to the growth of the financial markets. There is no specific answer to who is stronger.   How do FII and DII affect the market?   Institutional investors are known as market makers, as they trade in a larger quantity of securities than an average individual investor. Stock markets rise and fall depending on their investing activities. A massive inflow of FIIs can continually increase the Indian capital market index and vice versa.   Can FII boost the Indian economy?   Stock markets rise and fall depending on FIIs' investing activities. A massive inflow of FIIs can continually increase the Indian capital market index and vice versa. FIIs play a major role in determining the financial stability of a country.    Note: The first part under the 'Who are FIIs' topic talks about DIIs instead of FIIs. Please add the following line instead of the old one:   Foreign Institutional Investors are investors or investment funds that invest in the financial markets of different countries other than their home countries.  Who controls FII in India?   Foreign Institutional Investors are investors or investment funds that invest in the financial markets of different countries other than their home countries. FIIs must register with the Securities and Exchange Board of India to participate in the market. 

You have seen various aspects of ETFs now; you must focus your attention on how to buy ETFs.   ETFs are intangible and transactions cannot take place in a store or a supermarket. Hence, specialized processes are in place to buy ETFs. How to buy ETF in India?   1: Open a brokerage account This type of account can be used to buy and sell securities like stocks, ETFs, commodity derivatives, etc.  The broker acts as a custodian for all securities. He also serves as an intermediary between the stock market and the investor. Hence, having a brokerage account is a prerequisite, resulting in a hassle-free online process.  There are different types of brokerage accounts, depending on the investor and his goals. Some prominent types are as follows- Various brokerage services are available like   Fidelity  Merrill Edge   Zacks   Trade etc.   You must select a broker based on specific parameters-  Fees - An investor must look at the fee policy of the broker before opening a brokerage account.   Look at how the broker charges for administration, maintenance, and stock trading commissions.  Minimum deposits - Some brokers have a minimum balance condition for opening an account.   However, for ETFs, it's just the cost of one ETF share. Low or no minimums are desirable.  Types of securities - Not all brokers will allow all types of securities to be tradeable on their platform. Thus, looking at the types of assets that can be traded becomes vital.  Customer service - The responsiveness and grievance redressal mechanisms of the broker should also be studied.  Now that you have chosen a brokerage account, you must have a clear ETF investment strategy. There are thousands of ETFs available on the market.  The investor must be clear of his goals and invest in an ETF that fulfills such aspirations.   Stock ETFs offer more incredible growth but at the same time have high volatility and risk.   Bond ETFs are comparatively less risky and provide fewer returns.  Thus, the realization of a golden balance based on investors’ needs is necessary. As per investment management firm T. Rowe Price, the asset allocation for retirement based on the investor’s age should be AgeStocksBondsCash or Cash Equivalents20s to 30s90%-100%0-10%-40s80%-85%0-20%-50s65%-85%15%-35%-60s45%-65%30%-50%0-10%70+30%-50%40%-60%0-20% Once the investor has decided upon his investment strategy, they should focus on the ETFs. And should research the various types of ETFs available in the market. The investor should look into a couple of aspects like  Expense ratio - Expenses eat into the investor's profits: the lower the expense ratio, the better.   Also, an investor must look at the fees an ETF charges for maintaining the portfolio. In most cases, ETFs have low to nil fees compared to actively managed funds as ETFs generally trace an underlying index.   However, an investor must be vigilant when buying specialty ETFs.  Volume- ETF volume shows the trading ability of the ETF and, thus, the liquidity. Higher the volume, the lower the spread, and the higher the liquidity.  Underlying Holdings- Look at the underlying holdings of the ETF.   Performance- Look at the fund's past performance and compare that to its peers.   Market price- Ideally, an ETF should trade near its NAV. Investors should keep in mind the NAV before making any purchases.   2: Buying the ETF At the very outset, the investor must transfer funds into the brokerage account with which the purchase takes place.  After ensuring sufficient funds, the investor must search for the ETF ticker symbol and place the buy order. The investor also needs to mention the number of ETF shares he wishes to purchase.   Generally, trading ETF infractions is not possible.  Confirm the order. Sit back and relax. Once an investor purchases the shares, they also need to make an exit strategy to minimize losses (if any) or minimize capital gains taxes.  FAQs How to choose the best ETF in India? Here are some checkpoints to complete before choosing the best ETF in India: Liquidity: How easy is it to withdraw your money from any given ETF Expense Ratio: What is the cost of managing the ETF and how much percentage would you have to pay? Tracking errors in any ETFs Check past performances and returns of the ETFs you will be investing in Is ETFs worth investing in? A fantastic way to vary your investment portfolio is with an ETF. Whenever you participate in the stock market, you have a finite amount of equity options. What are some advantages of ETFs? Some of the biggest advantages of ETFs are: Diversification and global stock exposure Trading flexibility Low costs Transparency Tax efficiency Risk management Professional management What are some disadvantages of ETFs? Some of the biggest disadvantages of ETFs are: Additional charges like Hidden fees, trading fees, and operating fees Lack of liquidity Tracking errors lower interest yields. Consult an expert advisor to get the right plan TALK TO AN EXPERT