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Long-term goals help in achieving a significant desire in the long run. From an individual’s viewpoint, the term long-term goals mean achieving outcomes in the course of their life. It relates to personal struggles, career graphs, relationships, education, health, business dealings, savings, and investing plans.  Long-term goals cannot be achieved in one year, month, week, or day. It takes years for them to bear fruit. This type of goal requires proper planning and more effort for desired outcomes. Long-term goals motivate people to believe that their hard work will pay off eventually in the long run. Types of long-term goals  1. Career goals Long-term career goals relate to an individual’s career and job goals.  For example, starting a business, developing a career-specific skill, changing careers, or getting promoted.  2. Financial goals Financial goals focus on investing and saving for the future and creating wealth. This type of goal relates to money, and from an investor’s viewpoint, long-term financial goals are the ones that last for 5 years or more.  Examples include savings and investment schemes like a child’s higher education plan for abroad and retirement plans. Common investment vehicles to achieve them are mutual funds, real estate, and equities/shares.  Investors who want to create long-term education and retirement plans can choose Edufund. The app boasts of 4000+ direct mutual funds, SIPs, US ETFs, ELSS funds, US stocks, and fractional investing. Financial experts are available at every point of the journey to guide them toward choosing suitable savings plans to achieve their long-term goals.  3. Personal Goals Personal goals are the ones that focus on the personal life of an individual.  Common examples include pursuing a hobby like writing a book, becoming a better parent, or learning a skill that will help in the future. Additional read: What are long-term goals? How to set and achieve long-term goals? 1. Proper planning The research lays the groundwork for proper planning. It helps to understand what long-term goals are of an individual and how to set and achieve them effectively.  Differentiate between wishes and goals and rely on facts and not on luck and wishful thinking. Take concrete steps, and with the help of thorough research, make a concrete plan.  Financial experts on the Edufund app can guide you in investing in the right savings plans. The app also has the necessary tools like a SIP calculator, college cost calculator, and to create personal financial plans.   2. Set goals that matter Long-term goals are for the future and require goal-setting that will prove beneficial in the long run. Set goals that will matter, for instance, a retirement plan that every person needs for later years. If the goals are vague, they will lose their meaning over the years. The loss of focus, meaning, and motivation will decrease the likelihood of achieving that goal.  3. Take concrete steps Take concrete steps if you want to achieve long-term goals. Be precise, clear, and determined in your efforts as it will help focus and improve performance.  4. Be specific Be specific and create challenging but achievable goals that are easy to pursue. Tasks that are too easy can fail to motivate, whereas which are too hard proves demotivating. Find the right balance and push yourself towards it for desired results. 5. Break them into smaller goals Break the long-term goals into small-term goals as they are easily achievable in a short duration. When you achieve a small task, you take a step forward and contribute to the overall goal. Several small steps can make the long-term goals look doable.  6. Write it down When you have a clear path, it becomes easy to reach a goal. Write the goals in a diary or a journal because writing them down gives the goal a proper meaning and converts thoughts into action. It also acts as a reminder to focus and move towards them dedicatedly. 7. Create a feedback cycle Create a feedback cycle to track your progress on all aspects and identify roadblocks, if any. It will help to adjust and change for expected outputs.  8. Keep a track Keep track of the long-term goals to identify whether the desired goals are being met. The action plan has already been mapped out in the planning phase, and this stage confirms whether the tasks have been undertaken as per the schedule.  Conclusion Focusing on long-term improvement helps to achieve emotional intelligence, self-improvement, and personal development. There is a deep sense of purpose while working on a long-term goal, which encourages an individual to keep moving forward. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Short-term vs long-term savings for your child’s education is a common dilemma for parents who are trying to secure their child’s dream via quality education. Nothing is more important than a kid’s future, and education can open doors of opportunities for better personal and professional life.  Parents have to create proper education plans to deal with the rising cost of education. They have to save and invest promptly in worthy investment schemes that will yield the highest possible returns.  Which of the investment schemes is better, where should one invest, and is short-term better than long-term savings or vice-versa are important questions that need to be answered before creating an effective educational plan for your child’s higher education?  Let us identify the differences between short-term vs long-term savings based on different parameters to understand the purpose they can fulfill. Difference between short-term vs long-term savings 1. Meaning Short-term savings are used mostly to deposit excess funds for a shorter period. These are highly liquid and predictable schemes that can meet any unexpected future expenses. The long-term savings, on the other hand, cannot be easily liquified, nor can they meet any unexpected expenses.  2. Goal-based The short-term investment is created to meet immediate savings goals, whereas the long-term investment is created to meet long-term savings goals.  3. Tenure The timeframe of short-term and long-term savings plans vary as the former is for a small duration that lasts between 0 – 1 year, and the latter is for a longer duration as the investment tenure lasts for 5 years or more.  Additional read: Personal loan vs education loan 4. Risk and return expectations Every investment has some amount of risk and returns attached to it. It is the difference between the two financial instruments, short-term and long-term, that determines the amount of risk and return expectation.  Short-term investments show a lower risk for capital preservation and stable return expectation, whereas long-term investments show a higher risk incurred over a longer tenure in expectation of capital growth. 5. Purpose  The purpose of the investment matters a great deal. If you are in the later stages of the investment horizon, and it is time for withdrawal, then it is better to gradually stop long-term investment schemes and shift them to short-term savings like FDs and debt instruments. The purpose is to make the investments safe and secure, as short-term savings are considered safe compared to long-term savings schemes.  Thus, when the purpose of the scheme is principal protection, then short-term savings plans are the best option, but if the purpose is high returns, then long-term investment schemes are the better options.  Additional read: How to set financial goals? 6. Investment vehicles Investment vehicles to achieve short-term goals are savings accounts, FDs, treasury bills,  Gilt funds, and debt mutual funds. These are safe and secure vehicles with very low risk. Whereas the vehicles to achieve long-term goals are real-estate, mutual funds, ETFs, and equity/shares with high risks.  Choose from an option of 4000+ direct mutual funds and take a SIP for as low as INR 100 on the EduFun app if you are interested in saving for your child’s education. The app also offers the best US ETFs for a child’s education as well as ELSS funds that help parents in saving tax while investing in their child’s education corpus.   7. Rate of interest The interest rate for a short-term savings plan is less than that of long-term plans. A savings account offers an interest rate between 3% to 4%, whereas the rate of interest for an FD is 5% to 7%. The rate of interest for long-term schemes like mutual funds is way high as it shows an estimated return between 12% to 16%. Equity-oriented mutual funds with a holding period of more than 3 years generate nearly 15% returns.  8. Power of compounding The power of compounding makes the long-term investment yield higher returns, whereas short-term investments are unable to take advantage of the compounding power to the fullest.  9. Accessibility Short-term savings plans are easily liquified and accessible, whereas it is difficult to break the long-term schemes. Although the interest earned is small on the short-term savings plans, it can be withdrawn at any given time. The long-term savings plans, on the other hand, are more or less fixed for a definite tenure. In some cases, the investor can withdraw a part of the savings after a definite tenure but withdrawing the full amount is a bit trying.  Conclusion Short-term and Long-term savings plans are equally important to create an education corpus. It is important to note that a proper education plan must cover both short-term and long-term investment schemes. The right balance will yield some of the best possible returns to help parents to fulfill their child’s desire for a good education. Consult an expert advisor to get the right plan TALK TO AN EXPERT

When you have a goal in your mind, the whole process of planning and saving becomes easier. The goal could be anything with a certain amount of buying a house, creating wealth, retirement, vacation, buying a car, or even the dream education for your child. But, in this blog, we'll discuss specifically how to save money for child education in India Steps on how to save money for child education in India 1. Define a goal First, you must define your child's education goal. A goal consists of three things, i.e. horizon, target amount, and it should be realistic.  For example, you want to save Rs 50 lac for your child's higher education in the next ten years. So, you need to define your financial goal first in order to save for your child's higher education. 2. Record your expenses Second, you need to figure out how much you spend monthly on different categories like grocery, rent, entertainment, eating out, online shopping, etc. Calculate your spending to know where you are spending the most and least. 3. Prepare a budget and include savings  Now that you have an idea of where you spend the most and least, you can cut down your expenses. After calculating all your expenses, you can plan your savings and limit overspending. Include a saving category in your budget and try to save it every month. You can target 15% to 20% of your monthly income or save as per your financial goal requirement. Additional read: Are education loans a good idea? How much should you save for your child's higher education?  Many times, parents wonder where to get the best education for their child, whether from India or abroad, and which is the best course or university for their child's higher education. In addition, while pursuing higher education, there is another significant cost involved i.e. the living cost. Here, EduFund provides you with the college cost calculator to calculate the cost of your child's higher education along with the living cost. You can select the desired course for your child and the top universities as your target, and it shows you the tuition cost and living cost. After using the calculator, you will know the range you need to save monthly. 1. Starting early Starting early will give your money enough time to compound as time will be in your favor and your monthly contribution towards your target will be less if you give more time to your target. The maximum time you give your money to compound the monthly savings required will be less.  Understanding this with an example, suppose you need to save 50 lac after 15 years, then you need Rs 9,000 per month (assuming 13% annualized returns) to save for this target. Let's assume you delay the same goal by three years; now, you need Rs 14,500 per month (assuming 13% annualized returns) to save the same target amount of 50 lac. So, starting  saving and investing as early as possible is always advisable to get the most benefit of the power of compounding. 2. Where to put your savings? Now, the question is where to put your savings, which is the suitable asset class to save money for your child's higher education. There is no particular answer to this question as the asset class varies from individual to individual.  But suppose you have a more prolonged investment or saving horizon. In that case, you can invest your money in equity mutual funds, which can fetch you higher returns of more than 13% annualized returns over a longer horizon. But if you have two or three years left for your target, then hybrid mutual funds (it is a combination of equity and debt mutual funds) could work in your favor. And if you are planning to send your child abroad for higher education, then diversify your portfolio to the US market so that it can be hedged against the falling currency, and you get geographical diversification. 3. What if you cannot save enough? In case, you don't reach the target amount despite your continuous efforts, then you can look at available loans that wouldn't be so burdensome because you've done most of the work by saving and investing wisely. You can even try for some scholarships to fund your child’s higher education. Scholarships are available to a limited number of students. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Sending your child abroad for higher studies? Or is there a course that is domestic and expensive?  Wherever it may be, the cost of higher education is often on the upper end of our budgets and keeps on increasing with every passing year. But that shouldn't stop your child! Education loans (student loans) are advances made by banks or financial institutions to students to help pay for the cost of higher education. Under this special loan program, highly qualified students are given financial support to study in institutions in India and abroad. Many Indian banks offer such loans at low interest rates and with flexible terms to qualified applicants. In addition, the documentation process is kept to an absolute minimum so that students can get their loan cash as soon as possible. Education loan eligibility The important education loan eligibility criteria that candidates need to fulfill to get loan approval are given here: The loan candidate applying for the loan must be a resident of India. Must have confirmed admission to recognized educational institutions in India or abroad. The age of the loan candidate must be between 18 and 35 years at the time of the loan application. Must have done Post Graduate/Post Graduate or PG Diploma. The candidate must have secured admission to a college or university affiliated with the All India Council for Technical Education (AICTE) / Govt / University Grants Commission (UGC), etc. Students attending full-time courses must have a co-applicant who can be either a parent/guardian or a spouse/father-in-law (in the case of married candidates). The best time to apply for education loans Read More Education loan documentation Below is the list of all the mandatory documents that a student must submit to banks when applying for a student loan: Duly completed and signed application form with pasted photos Two passport-size photos Copy of mark sheets 10/12 or the last education certificate Statement of expenses for the course/ study costs Aadhaar card and PAN card of student and parent/ guardian respectively Proof of Age: Copy of Aadhaar Card / Voter ID / Passport / Driving License Proof of Identity: Copy of Voter ID / Aadhaar Card / Driving License / Passport Proof of residence: Lease agreement / Statement of the bank account of the student or co-borrower / guarantor for six months/ copy of allotment letter/ gas book/ electricity bill/ telephone bill Proof of income Most recent pay stubs or Form 16 of parent/guardian / co-debtor Six months' borrower's account statement or updated bank passbook An Updated ITR (Income Tax Return with Income Computation) for 2 years or IT assessment order for the last two years of parent / co-borrower / guardian Documents communicating the assets and liabilities of the parent / co-debtor / guardian. https://www.youtube.com/shorts/Icp7ASAGrjw List of expenses covered by the education loan Below is the list, of what the loan amount will cover: Tuition Accommodation fees Travel expenses and travel money for students studying abroad Insurance Premium Cost of books/ equipment/ tools/ uniform Examination/ Lab/ Library Fees The cost of a computer/ laptop required to complete the course Deposit, building fund / refundable deposit evidenced by promissory notes/ receipts of the institution Any other expenses which are required to complete the course, such as study trips/ thesis/ project work Education loan interest rates In India, the interest rates for education loans vary from bank to bank. However, it can be anywhere between 12.00% and 16.00%, which, of course, depends on the bank's prime rate and other factors. The base interest rate for banks in India is around 9% - 10% as per RBI guidelines. Additional read: What is education loan insurance What will improve your education loan eligibility? Banks are careful while analyzing the eligibility of the candidates to ensure that the financial aid reaches the students. Before a loan is approved, the basic characteristics that are considered are the student's overall academic quality, their future educational path, and their current admission status. Scoring high grades/ places in qualifying exams Displaying good academic results Getting admission to a reputed/ top institute or university Strong financial background of parents/guardian/ co-borrower Showing good prospects for future employment/ income generation Conclusion Getting an education loan will come at a cost that could be a financial burden for any student. And with that burden, you might end up taking a 100% loan.  Download the EduFund app today to start planning for your child's higher education. TALK TO AN EXPERT

Pre-university education is a widespread option for students who have passed their tenth grade. This is because the curriculum covers a broad range of courses, allowing students to resume their studies after completing pre-university. Pre-university education, in other words, is a launching pad to higher learning qualifications or professional programs. Candidates studying for pre-university courses have various options based on their area of interest. The pre-university education system is generally classified into three major categories - Science, Commerce, and Arts. The courses in these three categories last for two years. Students can enroll for undergraduate studies at their chosen institutions after completing these two years. Characteristics of pre-university education system in India The course has a two-year length. Students who have finished the 10th grade from a recognized board can apply for pre-university enrolment. When the second year of pre-university study ends, the pre-university board administers a board test. Students must pick four significant subjects in the course they desire to pursue. The first language is usually English, and students are offered a second language option. The second Language choices given to the students include Arabic, French, German, Hindi, Kannada, Malayalam, Marathi, Sanskrit, Tamil, Telugu, and Urdu. The pre-university Education method is popular because it offers various academic combinations. Students can choose their studies based on the options the college provides. Furthermore, unlike in the 10th grade, when students must attempt all topics for the board examinations, pre-university education permits students to choose or reject subjects entirely. Students should keep in mind while choosing any courses in pre-university education that a student who chooses science at pre-university can also pursue a graduate program in commerce or arts following pre-university. On the other hand, a student who majors in business or the arts cannot pursue a scientific degree beyond the 12th grade. Recently, there has been a slight adjustment in this, with students who studied commerce in 12th grade being able to pursue specific paramedical certification courses following graduation Importance of the pre-university education system in India Pre-university education is a significant element in an individual's academic career before they enter university. Depending on their interests, goals, and financial situation, students can select a program. Their learning preferences and learning styles will also be fully developed at this point. Additionally, they can gauge a candidate's enthusiasm for academics and determination to start working right away. Students receive a taste of university life while refining their communication and interpersonal skills since colleges and universities offer pre-university courses. The university tuition fees for medical courses at government institutions are pretty low, and five-year studies may be finished for less than ten lakh rupees. However, for the same course, the tuition fee in a private college is Rs. 50 Lakh. If a student wants to pursue postgraduate studies, they should be prepared to pay an additional Rs 30 lakh to a private institute towards tuition fees. The university tuition fees for studying in the UK range from Rs 8 lakh to Rs 18 lakh. The cost of living is Rs 1.1 lakh per month in London and Rs 91,000 per month outside of London. https://www.youtube.com/watch?v=peDFdmed0Nw How to pick the appropriate pre-university education Joining a pre-university program that meets your child's needs opens the door to a happy and rewarding educational experience and, ultimately, a long-lasting career. Before enrolling in a pre-university program, students should ask themselves the following questions: Should I study at the local university or abroad? Should I get a bachelor's degree? If yes, which field should I choose? Do I meet the admission requirements for the pre-university program? What are my study skills? Should I prefer studying for exams, or should I excel in group projects and presentations? How much money do I have set aside for pre-university studies? Is there financial help or scholarships available? Create Child Education Goal with EduFund Options beyond pre-university education in India As previously said, pre-university education serves as a stepping stone to undergraduate degree programs. After the 12th grade, students have a multitude of alternatives. However, these alternatives are heavily influenced by the stream they choose in the 11th and 12th grades. Essentially, the pre-university learning system qualifies young minds for which course they should pursue at the undergrad level. After the 12th grade, students can enroll in professional courses. Their choices after 12th grade will determine their careers. Conclusion Pre-university is simply described as the period preceding entry into university, which typically lasts one to two years. Secondary school graduates can begin their higher education journey by enrolling in a pre-university program of their choice. Most countries now have a diverse range of pre-university programs for students wishing to pursue their education. There are plenty more alternatives available today than ever before. Students can enroll in either short-term or long-term courses.With technological improvements, several courses have been established over the years, allowing individuals to uncover their hidden abilities and achieve their aspirations. The basis for specialized undergraduate courses is laid by pre-university education. Talk To An Expert

Parents place a high value on their children's future prospects. They give up a lot of things to make sure their kids are happy. The most important expense that a parent of a daughter should focus on is their higher education. Since education is highly expensive, browsing for the best investment plan for girl child in India is a must and can help you make the most of your savings for your daughter! Sukanya Samriddhi Yojana Parents of a girl child are the target audience for Sukanya Samriddhi Yojana (SSY), a government-sponsored savings and investment program. The main objective of the SSY program is to encourage parents to make substantial financial commitments to a strategy for their daughters' future education and marriage. The SSY program is an essential part of the Beti Bachao, Beti Padhao project. The investment in this program is open to parents of girls under the age of ten. The SSY program investment is locked in for 21 years post account opening. However, after the account is opened, the parent is allowed to invest for a total of 15 years. Investments made in SSY accounts are eligible for tax deductions under Section 80C of the Income Tax Act of 1961. Each year, a minimum investment of ₹250 must be made, and a max investment of ₹1,50,000 may be made. SSY accounts can be opened and utilized at any location of an accredited bank or the India Post Office. Benefits and features To open and manage the SSY account on behalf of a girl under the age of 10, the girl's parents or legal guardians must be present. The account operational power will automatically transfer to the girl child once she turns 18 years old. Benefits from the account must always go to girls. For each girl kid, just one SSY account may be opened. There can be a max of two SSY accounts per family. In exceptional cases where an SSY account is formed for the first girl child and the subsequent order includes twin girls or more, they are permitted to open further SSY accounts. Any amount between ₹250 and 1.5 lakh can be invested each fiscal year. The account has a 15-year payment term. For FY 2021–22, the interest rate on the SSY account is 7.6% p.a. Get an exemption from paying income tax on the amount invested, the interest collected, and the amount due at maturity. Additional read: Investment plans in India for one year Children Mutual Funds The goal of children's mutual funds is to raise money for different life events like further education and marriage. Mutual funds that are balanced or hybrid are categorized as these funds. Children's mutual funds can only be purchased under the child’s name (minor). Mutual funds for children often have a lock-in duration of 18 years. Depending on the equity exposure, these funds are categorized as hybrid-debt oriented or hybrid-equity oriented. They are regarded as hybrid equity if the equity risk is 60% or more; otherwise, they are regarded as hybrid debt. Benefits and features On behalf of the children, parents or legal guardians may invest in this plan. Not just for girl children. The investment's profits can be utilized to pay for your children's college and weddings. Depending on the sort of fund you select, there can be a lock-in period. To earn better returns, select equity-oriented hybrid or balanced funds. To achieve more consistency and moderate returns, use debt-oriented investments. Additional read: Factors of investing Sukanya Samriddhi Yojana vs. Children Mutual Funds The table below will give you a proper comparison between SSY and children's mutual funds. FactorSukanya Samriddhi YojanaChildren Mutual FundsAccount managementUp until the girl is 18, her parents or legal guardians can manage the account; after that, she takes over management.Owners of the investment account are either parents or legal guardians.ReturnsFixed (currently at 7.6% annually)Not fixed as the market keeps fluctuatingNumber of accountsMax 2 accounts for a family that has 2 or more girl childrenNo restrictionRiskRisk-free because the plan is backed by sovereign guaranteesRisky, especially when the market is down.Lock-in period21 years after opening the accountTill the child turns 18 years of ageInvestment limit₹1,50,000 a yearNonePremature withdrawalAllowed only when the girl child turns 18 years of age3 years after the day of account opening.Maintenance costNoneExpense ratio charged yearly US Stocks US Stocks are considered one of the best investment plans for girl children in India. Suppose you want to send your daughter to study in a foreign country and start saving for it when she is young with a time period of 10 years. Considering the time period you have and the appreciating value of the dollar against the rupee, you will not only be able to build a healthy corpus by investing in US dollars. But you will also gain better purchasing power because your returns will be in dollars. US stocks are one of the most underexplored investment plans for the girl children in India and can be a great tool to save up money for goals like higher education which is becoming expensive every day! Conclusion It is always a good idea to plan ahead, especially when it comes to your children's future. Consider your risk tolerance and goals before choosing between the SSY and children's mutual funds. Children's mutual funds are recommended if you are willing to take some risk; if not, investing in SSY makes more sense. You can invest in one or all of the best investment plans for girls in India! Whether you pick mutual funds, SSY, or US dollars, make sure to make the most of your savings and build an education fund for your child that can help them achieve their dreams. Consult an expert advisor to get the right plan TALK TO AN EXPERT

As you build wealth and make plans to enable your children to live a better, more comfortable life, you must also take note of the tax implications of the wealth you are creating for your family. In most cases, tax is applied to a corpus every time it changes hands, and as your corpus grows, you also pay taxes on the returns. This affects your earnings as you are expected to shell out a certain percentage as taxes. The more you earn, the higher the percentage of tax you pay. When you are looking at building your corpus/wealth that you will ultimately pass on to the next generation, you must look at legally safe ways of saving tax on your funds. Few tax-smart ways to help your kids financially 1. Start with a bank account While piggy banks are cute, they don’t really give you much benefit. When you open a savings bank account for your child, the interest income up to Rs 1,500 per child for a maximum of two children, per year, will be tax-exempt under Section 10 (32). This implies you can save up to Rs. 3,000 in tax if you have two kids. 2. Invest in your child A good way to start building a corpus for your child’s future is to start putting money into PPF, mutual funds, and some traditional plans. Your investments in these instruments under section 80C are fully tax-exempt till you reach the limit, but the income from this is added to your income and taxed at applicable rates. One of the tax-smart ways around these investments is to keep your profits from these under Rs. 1 lakh If you have not exhausted the Section 80C limit of Rs 1.5 lakh a year with your investments, you can invest for your child to avail of the full exemption. For instance, you can invest in the PPF, Ulips, mutual funds, and some traditional plans, but remember that the income from these will be added to your income and taxed at the applicable rate. This can be avoided by investing in instruments that do not tax income, such as the PPF, or equity mutual funds, where the profit is not taxed if it is less than Rs 1 lakh a year. Additional read: Money mistakes to avoid in the 30s 3. Invest in adult children’s names If your child is above 18 years of age, his / her income from his or her investments will be independent. It will not be clubbed under your income. So if his / her earnings are in the nontaxable slab, you will be able to save on tax by gifting money for his / her investments. 4. Tuition fees can save you cash This is a really small amount given the large education fees being charged these days but when you are looking for tax-smart ways of building your wealth, every little bit helps. Under section 80C, with a deduction limit of Rs. 1.5 lakhs, you can save Rs.100 per month per child paid towards tuition fees for up to two children. That’s Rs. 2400 per year if you have two children and you can also claim an exemption for hostel fees of up to Rs. 300 per month, per child. In the case of two children, this amount totals Rs. 7200 per year. These amounts may seem small but can add up to a handsome sum over the year. 5. Education loan is tax-smart As in home loans, education loans taken for your child’s higher education can give you tax shelter. The interest component paid on the loan will be deductible under Section 80E for eight years from the time that the repayment starts. 6. Invest in health insurance Premium paid towards health insurance of your children up to Rs. 25,000 a year is tax-exempt under Section 80D. Expenses incurred for preventive health check-ups up to Rs 5,000 are also included in this Rs. 25,000/-. 7. Deduction for disabled children Parents of differently abled children or offspring with certain diseases are eligible for deduction under Section 80DDB for the medical expenses incurred. A deduction of Rs 40,000 or actual expenses can be claimed, whichever is lesser, in case of a disease. For 40%- 80% disability, you can claim up to Rs 75,000, and for over 80%, the available deduction is Rs 1.25 lakh. As bringing up children becomes increasingly expensive, finding tax-smart ways to help your children can help you build a decent fund over time. Be on the lookout for these and other tax-smart strategies that you can put into practice around your children and even parents.  In most cases, the earning members are carrying the financial burden without being aware that many of these expenses are eligible for tax deductions. So do read up and keep saving! TALK TO AN EXPERT

Definition of Alternative Investment Funds By SEBI  An AIF is defined as a fund formed or registered in India, under regulation 2(1)(b) of SEBI Regulations 2012, as a Limited Liability Partnership (LLP), corporation, trust, or body corporate that: It is a privately pooled investment entity that collects assets from investors, both domestic and international, and invests them according to a stated investment policy to benefit its stakeholders. It excludes funds subject to the SEBI (Collective Investment Schemes) Laws, 1999, SEBI (Mutual Funds) Regulations, 1996, or any other SEBI regulations governing fund management. Category 1  This category includes funds that invest in small and medium-sized enterprises (SMEs), start-ups, and new businesses with strong growth potential that are considered socially and economically viable. Since these initiatives have a multiplier effect on the economy in terms of growth and job creation, the government supports and encourages investment in them. This category includes.  1. Infrastructure Funds This fund invests in public assets such as road and rail infrastructure, airports, and communication infrastructure, among others. Since the infrastructure industry has high barriers to entry and relatively limited competition, investors who are positive about its future expansion can invest in the fund. The government can provide tax incentives to Infrastructure Funds that invest in socially desirable or viable projects.  2. Angel funds This is a type of venture capital fund where fund managers pool money from several "angel" investors to invest in early-stage companies. When new ventures become profitable, investors receive dividends. An "angel investor" is a person who wants to participate in an angel fund and contribute expertise in the field of business management, thereby supporting the growth of the company.  3. Venture Capital Funds Venture capital funds invest in high-growth startups that are cash-strapped and need financing to develop or expand their operations. Since it is difficult for entrepreneurs and new businesses to get cash through traditional banking, venture capital funds have become the most preferred source of capital.  4. Social Venture Funds Social Venture Fund (SVF), which invests in companies with a strong social conscience and a desire to have a good impact on society, is one example of socially responsible investing. The aim of these companies is to make money while solving environmental and social problems. Despite being a philanthropic investment, a profit can be expected as the businesses will continue to generate revenue. Additional read: Investment options for self-employed parents Category 2 Funds that are invested in both shares and debt instruments are included in this category. Additionally, those funds that are not currently classified as Category 1 or 3 are also included in this category. The government does not offer any tax benefits for investments in AIFs Category 2. This category includes:  1. Fund of Funds This fund is a combination of many AIFs. Rather than building its own portfolio or determining which particular sector to invest in, the fund's investment strategy is to invest in a portfolio of other AIFs. However, unlike a fund of funds within mutual funds, a fund of funds within an AIF cannot issue publicly traded fund units.  2. Debt Funds This fund essentially invests in debt instruments issued by both publicly traded and private companies. Companies with poor credit ratings are more likely to issue high-yield debt securities that are associated with high risk. As a result, companies with high expansion potential and strong corporate standards, but capital constraints, can be a good investment alternative for debt fund investors. As the Alternative Investment Fund is a privately incorporated investment entity, the money deposited in it cannot be used for lending as per SEBI regulations. 3. Private Equity Funds Invest in private companies that are not publicly listed and have a limited number of shareholders because unincorporated and illegal private businesses cannot raise funds from PE funds. In addition, these companies provide their clients with a broad portfolio of stocks, thereby minimizing investment risk. A PE fund usually has a predetermined investment horizon of 4-7 years. After seven years, the company aims to be able to exit the investment with a reasonable return. Category 3  AIFs in Category 3 are those that provide returns over a short period of time. These funds use several complicated and diversified trading methods to achieve their goals. The government provides no relief or incentive for these funds. This category includes:  1. Hedge funds To achieve high returns, a hedge fund combines funds from institutional and accredited investors and invests in domestic and foreign markets. They have a high level of leverage and are aggressive with their investment portfolio. Unlike their competitors, such as mutual funds and other investment vehicles, hedge funds are less regulated. These funds typically charge a 2% asset management fee and keep 20% of the profit earned as a fee.  2. Private Investments in Public Equity Funds The purchase of shares of publicly traded stock at a reduced price is referred to as a private investment in public equity funds. This allows the investor to get a stake in the business while the company selling the stake benefits from the cash flow. Pros and Cons AIFs Like all financial instruments, have their pros and cons. Below is a list of pros and cons:  Pros  Diversification of market strategies and investment types is facilitated with the help of AIF.  It comes with a strong potential to improve investment performance. Because their success is not based on the ups and downs of the stock market, alternative investments can help reduce the volatility often associated with traditional investments. Cons  Alternative investment funds are complex and doing your research before investing in them is essential.  A large initial investment is required, which is beyond the reach of retail investors. Conclusion AIFs are an attractive investment option for HNI investors who aspire to receive high risks and returns. Investors should conduct proper market research about AIF investment options before investing. Consult an expert advisor to get the right plan TALK TO AN EXPERT

SIP is a Systematic Investment Plan that allows one to invest a fixed small amount every month in a preferred mutual fund scheme.   For example, if you save ₹5000, subtracting all other discretionary and necessary expenses from your income, you could contribute it to a SIP fund. Setting up a SIP, the particular fund gets deducted on the day of the month’s completion. If you started a SIP on 5th September 2022, the following payment would be on 5th October 2022. The amount usually gets debited from the account automatically. If you invest ₹5000 for 10 years in SIP, with 12% interest, it translates into ₹11,50, 193.45 post maturity. It is a low-risk investment, and compounding enables rapid growth. Here is how easy it is to start a SIP investing on the EduFund App for your child's brighter future with personalized plans. How to start a SIP investment on the EduFund App? Step 1: Download and Sign up with EduFund Go online with SIP investments with EduFund. Download the application and sign up with personal details. The whole signup process takes just 3 seconds.  Step 2: Identify your goals for your child’s future  The application provides a gamut of options for your child’s education. Evaluate the goal. Whether you wish to: Save for school fees Save for higher education in India or overseas Step 3: Calculate the total cost with a FREE calculator After identifying the goals, calculate the total costs of higher education for undergraduate or postgraduate studies. You could calculate basing National or International academic education expectations. Select the specialization and the country you are seeking higher education. Step 4: Get your investment map and invest Soon after filing the details, you will get how much you could get after investing for the respective number of years. You will get a number of SIP suggestions that you could compare with yours. You could increase or decrease the sum to invest monthly as per financials. We provide an overview of your savings transitioning into returns until you get the investment sum. You could go for a lump sum payment if you are an entrepreneur with unstable finances. Place the order as a secured investment through UPI or other methods. You could start with just ₹100 in Edufund SIP investments. Step 5: Track, revisit and reset goals anytime Once you set up a SIP plan, you can edit goals according to the revised economic situation. Edufund captures the sensitivity that comes with finances. Revisit the plan and modify it as per goals and finances. You will get a new investment plan with new goals. Plan your savings accordingly. Why choose EduFund for SIP investments? Benefits of choosing to invest via SIP investments with EduFund for your child’s future: 1. SEBI-registered investment platform Edufund operates as a SEBI-(Security Exchange Board of India) registered platform. It is a watchdog of investments in India. It keeps your investments secured. The platform is also regulated by the SEC (Securities and Exchange Commission) in the US. 2. Personalised approach to investing Apart from highlighting the top SIP investment funds as per the latest statistics, it provides well-researched personalized investment suggestions. You could analyze the funds listed as per the risk appetite. The analysis segregates as per risk appetite: Skyscraper returns: Aggressive risk Stable Returns: Above the average risk The Middle Path: Average risk  Conservative Returns: Below the Average risks Safety First: Low Risk  Bharat Pack: High risk  3. Create a global portfolio  Apart from investing in Indian stock, you could expand your investments to the US market. Get access to the top US ETFs. It is passively managed funds with a low expense ratio. It implies you invest only a tiny portion for the long term. It offers better tax benefits than other taxable accounts.  4. Expert assistance  Edufund grants the flexibility to explore and invest independently. If you are new to the whole investment concept, seek expert guidance. Experts help determine the apt investment strategy and SIP plan per investment goal, income/revenue, monthly payment capability, risk appetite, and compounding goals.   You could leverage the expertise of the best counselors from India on a single platform. Decide your child’s educational goals- national or overseas education. You could get a good gamut in either of the situations. Get a detailed overview of every counselor and schedule consultations without wasting time googling out the specifics. Pick a time and day suitable to your lifestyle and book! You will get a confirmation mail. Do you still lack clarity on how to start a SIP investment in the EduFund App? Then download the App now and start saving for your child’s dream university! Consult an expert advisor to get the right plan TALK TO AN EXPERT

Student loans (commonly known as education loans in India) are a financial tool to help students pursue higher education. The biggest question to ask before availing of any loan is how much should you borrow in student loans. This is because taking on a loan is a huge responsibility; you need to pay the monthly installments on time and make sure that your debt remains a manageable amount that you can easily pay off.  What is the ideal amount you should borrow in education loans? Ideally, the loan amount should be 25% of the total loan amount you require for your education needs. For instance, if you want to study in Canada at the top universities then you may require a corpus of Rs. 50 to 60 lakhs to fund your overall education.   As a student, managing this kind of expense is tough and you may be tempted to borrow the entire amount so that you can later pay back the loan once you have a high-paying job. However, most education loans last 10 to 15 years, and shelling out EMIs every month can be tough. So here are some questions you must ask yourself before taking on a loan and deciding how much you should be borrowing in student loans:   What is the ROI of the program?  Does the university offer any placement assistance?  Will you be able to manage the interest hikes?  How much should you borrow vs. self-finance?  What is the ROI of the program?  Taking on a loan is a big responsibility. It means you must understand the return on investment (ROI) of your degree. It means you have to ask yourself some hard questions like is your selected course good enough to get you a job in the next 6 months? Will your starting salary cover your EMI comfortably? Are your loan and the interest charged on it a justifiable investment for your degree? These are some important questions you must be able to answer before deciding on a student loan and how much you should borrow in education loans.  Does the university offer any placement assistance?  Once you take on an education loan, you have to ensure that your degree can help you land the job of your dreams. The salary should be enough to take care of all your needs, including the EMIs that will start once your moratorium period for the education loan ends. Find out if the university you are considering offers placement assistance. What is the past record, where are your alumni members, and what was the average salary base for your previous batch?   These are some questions you need to answer and find before you take on the burden of a loan.   Will you be able to manage the interest hikes?  Inflation is a part of every economy and government attempts to keep it in check affect the interest rates charged by banks. There will be situations where interest rates are hiked up and your EMI increases. Make sure you are prepared to take on the added responsibility and that you are comfortable in paying the debt off in time and consistently.   How much should you borrow vs. self-finance?  Ideally, paying off your education with scholarships, savings, and investments your parents have made for your education should be the plan. But in case you do not have enough savings it is good to take an education loan to cover your education expenses. Try to borrow 25% of the total amount. If you want to borrow more then make sure you are doing your research on the course, university, and the ROI to help you later pay off the debt easily.  You can also apply for scholarships, look for part-time jobs, and create passive income to self-finance a portion of your degree even if you take a loan.   Education loans are a great means to finance your degree but just like any other loan, you have to pay it back on time and without any delays. Having all the information can help in the long run. It can also help you decide how much you should borrow in student loans, the type of loans you need to take, whether you should opt for a moratorium or not, and much more.   Always remember, that the bigger the loan, the bigger the time horizon for paying it back. So, try to follow all the steps before making this life-changing decision.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

The city-state of Singapore is an ideal destination to pursue higher education. The state-of-the-art standards of education, a solid focus on the research base, and an exceptionally high standard of living attract students from around the world. There are hundreds of scholarships in Singapore to fund your child’s college and ensure quality education. Why consider Singapore? Your choice to send your child to study in Singapore will undoubtedly pay off in terms of professional growth. After graduating from one of Singapore's best institutions, it is much easier to get employment because more than 7,000 businesses are based here. Choosing to study abroad in Singapore can lead to a promising future for more than one reason. The strict laws create a safe environment. Singapore Universities are best known for their excellent academic system. Singapore offers multiculturalism and exposes you to various lifestyles. International students from across the world come to Singapore to study, hence giving you opportunities for fruitful networking. Universities offer scholarships in Singapore to international students to fund their education and encourage meritorious students to take up courses in the country. What is the cost of studying in Singapore? The cost of studying abroad in Singapore is unquestionably high. According to the program and university choices, as well as the lifestyle, the average study cost in Singapore is on the higher side, averaging between 40 lakhs and 1 crore for the duration of the degree and the same amount for living expenses on top of it. Finding alternative funding options, such as loans, scholarships, or financial aid, is a wise choice. Scholarships are an excellent method to lower the cost of higher education, and Singapore offers several different kinds of scholarships. Additional read: Scholarships in Canada to fund child's college Top scholarships in Singapore A scholarship is a great method to reduce the costs in Singapore. This will greatly assist you in lowering your overall cost. Multiple public, nonprofit, and private organizations fund scholarships for students to attend school in Singapore. Top awards include scholarships in Singapore for your child’s higher education are: 1. SINGA - Singapore International Graduate Award International students wanting to pursue a Ph.D. and research in Biomedical Sciences, Physical Science, Engineering & Technology, and Computing & Information Sciences will be covered for 4 years of their Ph.D. The degree will be awarded by either the National University of Singapore (NUS), the Nanyang Technological University (NTU), the Singapore Management University (SMU), or the Singapore University of Technology and Design (SUTD). Benefits Monthly stipend of ₹1.1 - 1.5 lakhs. One-time grant for airfare, maximum ₹84,951. One-time allowance for settling in up to ₹62,297. 2. Asian Development Bank ADB - Japan Scholarship Program International Students from countries borrowing from the ADB who want to pursue their masters in management, economics, technology and science, and other development-related fields are given these scholarships. These students are expected to contribute to their home country’s growth in terms of its economy and society. The National University of Singapore is associated with these scholarships and provides the same for 1-2 years of master's programs, Benefits Full tuition fees Allowance for monthly expenses including housing. Allowance for study materials including books. Medical insurance Travel expenses. Furthermore, an exceptional allowance is provided to scholars for research and thesis preparation. 3. Commonwealth Scholarship for Integrated Science International students belonging to the CommonWealth countries pursuing Ph.D. degrees in integrative sciences & engineering at the National University of Singapore (NUS) are eligible to apply for this scholarship. Benefits Monthly stipend up to 4 years of the Ph.D. duration. Full tuition fees Travel expenses and other allowances like study materials, computers, etc. 4. Lee Kong Chian Graduate Scholarships International students from any nation who desire to pursue a Ph.D. at the NUS are eligible to apply for this scholarship, given that they are ready to submit an essay and a record of extracurricular activities and community services. Benefits Monthly stipend up to ₹2 lakhs. Full tuition fees as well as other miscellaneous student fees. One-time laptop allowance of a maximum of ₹85,000. Allowance for study materials including books of up to ₹28,317. Travel allowance of 2 return tickets up to ₹2 lakhs 5. Singapore Millennium Foundation Scholarships International students who are interested in pursuing Engineering or conducting research at Masters and Doctoral levels are eligible to apply for this scholarship. Benefits Monthly stipend of ₹1.1, 1.7, and 2.8 lakhs for M.Sc., PhD., & postdoctoral training, respectively. Travel allowance up to ₹1.7 lakhs 6. SIA Youth Scholarship International students from India, China, and ASEAN countries, according to their academic standings, are eligible to apply for this scholarship. The scholarship is given for a year at once, and can be renewed every year and only to students in the age group of 17 - 19 years. Benefits Full tuition fees and exam fees. Living expenses. Medical benefits. Accident insurance Conclusion There are various scholarships available to international students for studying in Singapore but most of them require excellent academic standing as well as co-curricula or community service. Your child needs to have a stunning portfolio and give good interviews to be able to get these scholarships in Singapore. Start preparing your child for a bright future! Consult an expert advisor to get the right plan TALK TO AN EXPERT

Saving money in a middle-class family is stressful. Lack of finance knowledge, poor budgeting, relying on a single-income family member, and increasing prices of daily goods and services are some of the biggest barriers to saving money in a middle-class family.  Another core barrier is saving in FDs over investing. Most Indian middle-class families prefer to keep their money safe in fixed deposits or savings accounts which do not offer attractive returns that could beat inflation.  If you too are struggling with wealth creation then here is how to save money in a middle-class family to secure your future. 1. Make term insurance your best friend Buying term insurance is one of the easiest ways to save money in a middle-class family. The cost of buying term life insurance is pretty low, especially if you are young and healthy. Most insurance companies offer term insurance worth lakhs at an affordable yearly premium of Rs. 12,000-13,000.  Term insurance can give your family a good cover amount in case of uncertainty of death. Always think about protecting your family through the right term life insurance.  2. Make saving a monthly chore When it comes to savings, make it a habit. Whether it's savings small sums of money in digital gold or a PPF account monthly, savings should be treated as a habit and a monthly chore!  Start this practice with “pay yourself first” by setting aside money from every paycheck. The next thing you can do is, save for multiple goals like an emergency savings fund, vacation fund, down payments, education corpus for your child, etc. Stick to this plan to the best of your ability and find the best home for your savings. Additional read: What is the education gap? 3. Wealth creation via monthly SIP  The best way to save money in a middle-class family and work towards wealth creation is to start a SIP! You can invest very small sums of money every month regularly for a long period of time and create a healthy corpus by the end of the period.  4. Place a limit on your credit card use  Avoid using credit cards frequently! Most financial advisors urge clients to limit their credit card use to 30% of the total available credit. For instance, if you have a credit limit of 5,00,000 then the credit you can use is 1,50,000!  Credit card companies offer attractive schemes to trap you into spending more so be careful. Another way to save money is to always pay your credit card in full amount rather than the minimum pay offered by the card companies.  5. Set a shopping budget for yourself  Make a habit of thinking before buying a particular thing. There’s a difference between want and need. If you cannot differentiate between the two, you cannot save money in a middle-class family. Before buying, you should analyze whether you need it or you want it. Give yourself a week to decide. Spending that much time will make you think twice and buy only what you need.  If you enjoy shopping then give yourself a shopping budget and try to not overspend on it! 6. Compare costs before spending In our rush, we sometimes forget to compare product features and prices in search of better options. Given the posh showroom atmosphere and the impressive conversations of the highly paid salespeople at the counter, we refrain from bargaining and looking for other means of comparison.  Always compare prices on websites and other stores and pay the best price while spending your hard-earned cash. Every penny saved earns an extra penny at the end of the day. 7. Create a passive or secondary income Besides your regular job, you work towards creating different streams of income. Look for opportunities, and try to create a passive income by renting your assets like an apartment or room. You can take up secondary income jobs if you have the time and your primary job allows it!  8. Teach your children to save early on Kids have no idea about how to save and how to earn money. Parents have to teach them and encourage the habit of saving from an early age. Make your children understand the value of money and how much effort it takes to earn it.  Give them monthly pocket money and teach them how to make the most of their money. Teach them to save a portion of it regularly. This habit will help them in the long run.  9. Be open about your finances with your family As they say, communication is the key. Parents should discuss finances with their children. This wouldn’t only make them aware but is good for their general knowledge. Maybe with that knowledge they can also plan their future. Don't leave them in the dark about financial assets built for their bright future. 10. Create a will to protect your family’s future India has Rs 82,000 crore in unclaimed assets. This money is spread across pensions, savings, mutual funds, stocks, government schemes, etc. All due to a lack of planning and foresight on the owner’s front. So be careful, make sure you have a legal will in case of any emergencies. Make sure your children and family members are aware of your savings, investments, and assets that can help them in the long run.  It might sound difficult to save money in a middle-class family, but following the above steps, proper planning, and execution can help you to achieve your financial goals. Saving in small amounts is easy; starting saving early and channelizing your savings could become a key to your successful financial freedom. Consult an expert advisor to get the right plan TALK TO AN EXPERT

It's crucial to raise children and make plans for their future. However, it may be difficult to balance a family's requirements and aspirations with considerations like savings, pensions, and budget. In this blog, we will address the financial mistakes you are making as a parent. 1. Not tracking finances It is challenging to set aside money at the end of each month due to the escalating costs. However, surviving paycheck to paycheck is a bad idea and might lead to debt. Drawing up a budget and keeping track of income and spending at the end of each month is the best course of action for young families. Apps may help you analyze and restructure your family budget so you can cut out wasteful spending.  Your children should be taught that spending what is left over after saving is more essential than saving what is left over after spending. 2. Not building a safety net For new parents, creating an emergency fund must be a top financial priority. You must plan ahead to create a financial safety net in case of job loss, a medical emergency, house repairs, or a family disaster. Depending on the number of income earners, save enough money to meet your costs for three to six months.  Investing in a savings and investments plan, which provides several opportunities for financial growth, is an excellent method to protect your family. You may speak with our specialists at  EduFund if you're unsure about where or how to invest. Install the EduFund app on your device to book a free consultation call with the experts. 3. Not saving for your child's education The worst parenting blunder would be being unable to support your child's education. No matter how young your child is, it is always preferable to begin saving for their education as soon as possible.  Saving for their future will snowball the longer you put it off. Additionally, the high levels of non-performing assets serve as the primary explanation for the collapse (NPAs). Therefore, it is suggested that you begin saving for your child's higher education as soon as your child is born in order to avoid any last-minute trouble. 4. Not teaching your children about money As vital as educating your kids to read and write is to teach them financial literacy. Parents who don't invest time in their kids' financial education might suffer serious repercussions on the road. By regularly talking to your kids about money, you may prevent them from making this money error. You can begin by demonstrating how to establish a budget for them and letting them make a monthly budget on their own. This will assist them in learning how to save money and achieve their financial objectives. 5. Not having a retirement plan All parents frequently engage in this behavior, and practically all parents in India are no exception. All of your material decisions, especially those involving money, revolve around your children as soon as they enter your life.  However, it would be beneficial if you kept in mind to save money for the future. Retirement savings issues may arise if you don't start saving now. It is not a good idea to rely on your children to support you as you age since it may put an additional financial strain on them.  Therefore, it is advised to begin setting aside money in a retirement or pension plan at a young age that will enable you to maintain your financial independence after retirement. In addition to this, contributing money to a retirement plan enables you to accumulate a corpus and protect your finances from unanticipated financial hazards. 6. Using your kids as an excuse for lifestyle inflation Children should not be a justification for living a lavish lifestyle. Some parents may use having children as a justification to rent or purchase a home that they are unable to afford comfortably. Even if there are more affordable options available, some parents may still decide to enroll their kids in pricey private schools in the belief that they would receive a better education.  There is absolutely nothing wrong with wanting to provide your kids with the greatest education and upbringing possible. The issue arises when you spend more than you can afford to, leaving you with little left over to save and invest for the future or retirement. Many parents make common financial blunders, maybe out of a desire to give their children the best possible living. It's quite simple to commit all or some of the financial blunders listed above when being a parent, trying to balance paying the bills, providing for your family, saving money, and investing. The good news is that you can fix these mistakes and go forward in life with better and more stable financial foundations.  Consult an expert advisor to get the right plan TALK TO AN EXPERT