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Investing in all asset classes and all categories of investments is not the right way to create your portfolio, especially if you’re starting with a small investment amount. This causes a significant overlapping of assets and over-diversification, leading to reduced and inefficient returns in the portfolio. How can you choose the right investment option that generates returns to help you meet your objectives with reasonable volatility? Do you want to know about the power of diversification? What is diversification? Diversification is the first and the most critical aspect of investing. Diversification is an investment strategy that involves investing in a mix of instruments to reduce risks and maximize portfolio returns. Mutual funds provide the best form of diversification. They offer exposure to multiple assets (stocks or debt) within a single fund. Moreover, there is a mutual fund for every investor with varying risk appetites and investment objectives. Advantages of diversification Diversification itself is one of the advantages of investing in Mutual funds. The main advantages of diversification are: - Minimize risk: Diversification in a portfolio reduces the overall risk of a portfolio. With proper diversification, there is a considerable reduction in the volatility of investment holdings. Creates a cushion: When diversified optimally, your portfolio can efficiently absorb significant, unpredictable market corrections without causing much loss to your portfolio. Better risk-adjusted returns: Diversification is not done to maximize risk solely. For example, if two portfolios generate the same percentage of returns, the diversified portfolio here takes less risk and has low volatility compared to the other portfolio. Compensating effect: The primary purpose of diversification is to prepare for all market conditions. So, when the market is highly volatile, in a well-diversified portfolio, even if one instrument has significant losses, the other instrument (for diversifying) would be chosen in such a way that it still generates returns to a certain extent to compensate for the losses incurred. Additional read: Why you should geographically diversify your portfolio? Why should you diversify? The first rule of investing is that "you should not put all eggs in one basket, " meaning you should not invest all your savings in one instrument. The primary purpose of diversification is that if one investment instrument in your portfolio tanks, the other having a negative correlation may rise, thereby reducing the overall portfolio loss. Common ways of diversification? Asset allocation can happen in several ways. Some common strategies used for portfolio diversification are: - 1. Different asset classes A portfolio should have a good balance between different asset classes as all would have a different impact when the market takes significant turns. For example, to compensate for the volatility seen in equity investments, one can invest in debt-based instruments or gold to hedge market risks. 2. Different instruments You can diversify into different instruments within the same asset class. While investing in equity mutual funds, you could choose between market cap funds like blue chip funds, mid-cap or small-cap funds, or even index funds for proper diversification. 3. International diversification Geographical diversification also helps maximize the portfolio's risk-adjusted returns. Investing in USD can take advantage of the currency movement and hedge over the currency risk. Different and diverse. What is the difference? One common mix-up investors get into is thinking that investing in different mutual funds is equivalent to diversifying. But different doesn’t necessarily mean diversifying. Even if you invest in different funds, those funds may have the same or similar holdings. This causes overlapping of asset allocation in one portfolio. Diversification does not happen when a factor similarly affects the holdings of both funds. Lastly, we’d say that holding a well-diversified portfolio is much better and more beneficial than just being invested in a single asset that is considered to be safe. In the end, just investing and generating returns is not enough. You should ensure that whatever you're saving is being optimally allocated so that your investments generate returns efficiently and effectively. Also, review your investments periodically to check whether or not they are in line with your goals and objectives. FAQs What is diversification? Diversification is an investment strategy that involves investing in a mix of instruments to reduce risks and maximize portfolio returns. Mutual Funds provide the best form of diversification. Why should you diversify? The primary purpose of diversification is that if one investment instrument in your portfolio tanks, the other having a negative correlation may rise, thereby reducing the overall portfolio loss. This strategy can help you minimize risk and protect your overall investment and capital from loss. How can I diversify my portfolio? As an investor, the best way to diversify is to distribute your investments across different asset classes. For example, to compensate for the volatility seen in equity investments, one can invest in debt-based instruments or gold to hedge market risks. A combination of these investments can help you weather the storms of bull and bear markets easily.

Overseas education can open numerous doors of growth and opportunities for a career, but it is expensive and places a huge financial burden on parents who want to send their children to foreign universities.  The covid-19 pandemic, along with other difficulties, has managed to ravage the savings of some parents to a great extent. Moreover, inflation has also led to high education costs, and it has now become difficult to ensure the education dreams of a student without proper financial planning.  If you are short on money for your child’s overseas education and have hit a roadblock, then it is important to look at options that will help in arranging the money. Tips to arrange study abroad funding 1. Installment option on fees Studying abroad is not easy as it requires a huge amount of money to meet numerous expenses. A big chunk of it goes towards the tuition fees, which have to be paid upfront, at least for a full year.  Times have changed, and educational institutes understand the difficulty of arranging bulk amounts to be paid as tuition fees.  Foreign universities are allowing the option of installment payments or deferred payments. If you are short on money for your child’s overseas education, apply for an installment option on tuition fees. Paying fees per semester is affordable compared to the yearly fees as it minimizes the burden on parents to a great extent. Foreign universities are offering financial assistance to students whose families are facing financial difficulties. In some cases, the fees of the student are reduced, and in other cases, the payments are deferred to a doable period so that the money shortfall does not impact the child’s education.  2. Fast-track your studies  Students can fast-track their study courses if they are facing a shortage of money and are unable to meet the educational expenses in full. Most foreign universities have two to three-year programs, which are subdivided into semester formats. Students have to earn a minimum number of credits during this period. When you are short on money, it is not feasible to complete the degree course by attending college for the entire period. Students can enroll for additional credits and complete the program early. This will bring down the education costs and manage the money shortfall.  3. Apply to university alumni for financial aid  Sometimes unforeseen circumstances can deplete the amount of money that the parents have saved for their child’s overseas education. They may have a considerable shortage of funds and may be unable to meet all the education expenses easily. Students can approach the university for financial assistance. Most universities have an alumni network that provides monetary aid to deserving students with exemplary records who are unable to finish their education just because of money shortages. The alumni network evaluates the student’s grades, work experience, past performances, and the reasons for money shortage and, if found satisfactory, compensates by paying the remaining fees.  Some universities have an existing fund for students who are brilliant performers but, due to circumstances, are unable to pay the fees. If the student applies for financial assistance, then the fees in such cases are either reduced or paid by the fund held by the university itself.  4. Select an education loan with care If you are short on money for your child’s overseas education, then a loan is also a viable option. Select the education loan with care. Banks and NBFCs are vital sources of loans; hence check whether any sources are calculating the interest amount on a flat rate basis or on a reducing balance.   Look at the interest rate and consider other factors like repayment tenure, margin amount, and moratorium period as they are equally important. Remember, the interest rate on a reduced amount will be considerably lower than the total loan amount, so choose wisely. The college cost calculator on the EduFund app helps in calculating the future cost of college, which gives parents time to plan and save for their child’s college expenses in the smartest possible way. Financial experts will create an education savings plan that will meet the requirements of a student’s education aspiration. It also offers an option of taking out low-interest education loans with top banks.   Conclusion The desire to educate a child abroad is natural, but it often takes a toll on the parents who find themselves short on money for their child’s overseas education. Planning the expenses in another country with another currency is a task that, if not done properly, can create serious issues later on.  FAQs What are the best ways for Indian students to arrange funding for studying abroad? Indian students can secure funding for studying abroad through scholarships, grants, education loans, part-time jobs, and assistance from family and sponsors. How can Indian students find scholarships for studying abroad? Indian students can search for scholarships through government programs, universities, private organizations, and online scholarship databases. Many countries and universities offer scholarships to international students. Are there specific scholarships available for Indian students to study abroad? Yes, several scholarships, like the Commonwealth Scholarship, Inlaks Scholarship, and Fulbright Scholarship, are specifically available for Indian students pursuing higher education abroad. Can Indian students work part-time while studying abroad to support their education? Yes, many countries permit international students, including Indians, to work part-time during their studies. Students should check the work regulations of the destination country. What are the options for education loans for Indian students planning to study abroad? Indian students can avail of education loans from Indian banks and financial institutions, which offer loans designed for funding higher education abroad. The terms and conditions vary, so research different loan options.

Financial planning is extremely important so that you have great fortunes in the latter half of your life. If an individual plans his or her finances well enough, then a good corpus can be generated out of it. However, some financial mistakes can make financial planning harder. These mistakes may not be intentional but can be harmful! 5 financial mistakes to avoid at all costs 1. Spending unnecessarily  Most people do not plan their budgets well. It is a thumb rule that everyone should do their monthly budget planning as soon as they get their monthly income. You can keep aside money for necessities like school fees, ration, electricity bills, rent, and so on.   Apart from these things, there are certain miscellaneous costs that are also extremely important. You should keep a tentative amount for that as well. Make sure that you do not spend unnecessarily. If you do go overboard, try to cut off funds in different domains of requirement. Mistakes to avoid while investing in the US Market Read More 2. Paying off debt through savings  This is considered to be one of the biggest blunders committed in the finance domain. People get a mortgage of 15%, and the return of the savings plan is just 7%. So, people think that it is a good plan to pay off all the debts from the interest that is recovered through savings. You should never be doing that because if an individual takes money from their savings account, then they will tend to lose the interest that is earned by compounding. Furthermore, they will also incur a penalty for taking out money from a retirement fund or fixed deposit. 3. Ignoring the credit score  Ignoring the credit score is the next big mistake that people tend to commit. If you maintain a good credit score, it can help you save a lot of money on interest rates. Furthermore, maintaining a good credit score makes it easier to get a loan, and can fetch better rates of interest when you are buying a personal asset or getting a personal loan.   Inculcate a habit of checking your credit score every six months so that you can have a stable and progressive portfolio. Make changes according to the credit scores that are being offered. Common Investing Mistakes to Avoid Read More 4. Not saving for child education  With the growing rate of education inflation, if you miss out on saving and investing properly for your child’s education, then it might prove to be a heavy burden for you later. Hence, you should make sure that you are setting aside a certain amount every month that is invested in your child’s higher education. Moreover, the pandemic has also led to an increase in tuition fees of colleges in India and abroad.   If you start investing early enough, you will be able to generate a good corpus for your child’s higher education which will ensure no financial burden on him or her. 5. No savings plan for retirement  Retirement is a phase of a person’s life where he or she lives on what has been earned and invested until now. Hence, it is a crucial thing to plan and save wisely for retirement. It is best to start saving as early as possible. If you are still young and earn less income, then start small but be consistent and disciplined. Start a SIP for Rs. 100 or a PPF account. The earlier you start, the bigger the amount that you will be able to generate.   Furthermore, 15% to 20% of your annual income should go to retirement. This will make sure that you have a good future once you retire and you do not have to work anymore.  These are some financial mistakes to avoid if you want to secure a fine future for your family!   FAQs Why is financial planning important for parents? Financial planning ensures a secure future, especially in the latter years of life, and helps create a substantial corpus. What is the biggest blunder when paying off debts using savings? The mistake is using savings with lower returns to pay off high-interest debts, leading to loss of interest and possible penalties. Why should you pay attention to your credit score? A good credit score saves money on interest rates, facilitates loans, and offers better interest rates for personal assets and loans. Why is it crucial to saving for your child's education? Rising education costs can create a significant financial burden. Saving for higher education ensures a stable financial future for your child. What's the importance of a retirement savings plan? Planning and saving for retirement are essential to ensure financial security during retirement. Starting early and being consistent in savings is vital for a comfortable future.

Snapchat has grown very popular amongst Indians in general due to the nature of how it functions! Snapchat is swiftly becoming one of the most popular social media platforms on the Internet? Undergraduates originally designed it at Stanford University in the United States to enable the instant sharing of photographs and movies. It was previously known as Snapfish. Millions of individuals have posted millions of posts and received millions of messages since the app's introduction in 2021. This is partly because it employs a sophisticated algorithm for determining what the user wants to see and what they do not.   People are concerned that Snapchat will face significant competition from smaller social media businesses such as Hootsuite and Facebook, which explains why Snapchat stock has plummeted thus far. Analysts who follow social and digital media are crossing their fingers that Snapchat will avoid the same fate. The concern that Snapchat will forfeit the battle to these two behemoths is also fuelling the slide in stock prices.   Some predict a comeback in Snapchat shares since consumers enjoy sharing snaps with their friends and family. Facebook and MySpace might be used to make the same point. Analysts believe there is a significant possibility to profit from the advantages that Snapchat may provide investors.  Let's first look at some basic stuff associated with the company. Latest market close $33.26 52-week range 24.32 - 83.34 Dividend yield  NA Earnings per share  $-0.23 Beta 1.14 Market Capitalization $ 53.148 billion Average Volume (3m) 32,658,402 PE ratio  -  There are three ways in which you can invest in Snapchat from India   1. The direct way   You can trade in Snapchat from India by registering on a US brokerage account using technological platforms that provide this service or through a foreign brokerage with a direct presence in India. To start with this, you only need your PAN card and proof of address.   Snapchat's share price was the US $33.26 on January 14, 2022, which is over 2500 rupees. However, the premium price of Snapchat shares should not stop you from investing in them because some platforms allow you to participate in fractional shares. With $1, you can buy a part of a Snapchat stock and own a piece of the corporation.   2. The ETF way   One way to invest in Snapchat stocks from India is through an exchange-traded fund (ETF). ETFs are a grouping of stocks and bonds traded as a single fund. They're comparable to mutual funds in that they're invested in a pool of money. ETFs, on the other hand, are exchanged on the stock exchange and offer a simple and inexpensive way to gain access to a category of market or a group of companies. Buying an ETF via a platform is one way to invest in ETFs.   For example, you can invest in the Vanguard Total Stock Market ETF (VTI) and Global X social media ETF (SOCL), which contains Snapchat as one of its holdings.   Another option for investing in Snapchat stocks from India is to purchase ETFs that invest in Snapchat. You don't need to create a US brokerage account to invest in these ETFs. However, tracking errors in these ETFs may influence your returns.   3. The Mutual fund way   In this case, you will be investing in funds of Funds, a domestic mutual fund that invests in a mutual fund available in the United States. Since the investment would be made in Indian rupees, there is no investment restriction. Snapchat is included in several mutual funds, such as the Edelweiss' US Technology Fund of Fund but only to a minimal level. Furthermore, this strategy may prove to be more costly. An annual expense ratio will be required of you. The expense ratio of these funds is typically greater, as it includes an additional expenditure levied by the core global schemes they invest in, in addition to the usual India fund administration fee.   A note of caution here is to remember to evaluate your risk profile before purchasing any investment. Directly investing in equities like Snapchat would be a greater risk strategy for your portfolio.  FAQs What are the different ways to invest in Snapchat? There are several ways to start investing in Snapchat. You can directly invest in the company by buying its stocks through an app, you can invest in the company indirectly by investing in mutual funds or ETFs that will buy the stock as a part of their portfolio. How can I invest directly in Snapchat? Yes, you can invest in Snapchat from India on the EduFund. Download the App, set up your US account for free without any commission or opening charges. You also get first year free on account maintenance. Once its set up, you can invest in all the top US stocks on your own! What is the current share price for Snapchat? The current share price for Snapchat is $10.

Education inflation impacts student loan interest rates, however, this impact is not direct or uniform. In inflationary times, the chances of high-interest rates are feasible because the need to cut demand in the market is high.  1. Education inflation rises faster than the standard economic inflation This means that if the standard inflation in the country of your choice is at say, 5% - 6%, in the education segment it can easily go up to 8-9%. This is observed extensively in the education costs in Western countries. The reason: excessive growing demand v/s fixed supply. With this trend here to stay at least for the next decade, you would do well to consider its impact on the education loan that you are planning for your child. 2. Understanding the variables in student loans There are two factors to be considered for student loans: a. whom are you taking the loan from; b. What kind of a loan are you taking? Whom are you taking the loan from You can take an education loan from government organizations or nationalized banks in India, or you get one from private organizations: private banks or private funding/finance companies. With interest rates in the first category being lower, these loans are usually more difficult to obtain, as there are several eligibility criteria, including a pre-selected list of institutions for which they will issue the loans. These are the top-rung institutes of any country and not every international student will qualify for the same. Also, they have extensive paperwork. So the application and approval processes in these lenders are comparatively slower. On the other hand, the private players have a larger pool of institutions for whom they will grant loans, and often their eligibility criteria are less stringent. But their interest rates are higher and over the long tenure of the education loans, even small differences in the interest rates can compound and snowball into large amounts. What kind of interest rate are you opting for: you can choose between fixed interest rates and variable interest rates. It is important to note that in India, fixed rates rise slower than variable rates; but they definitely rise. So do not be misled by the term ‘fixed’. 3. How does all of this impact your child’s education loan? Inflation means less purchasing power: Well, as inflation grows, and interest rates go up, your child’s purchasing power gets limited as salaries do not keep pace with inflation. This puts stress on repayment funds. Missing education loan payments affect the individual’s credit score: This is a serious implication and must be explained well to the child. While the temptation to miss the monthly payments is high, the young adult must be disciplined to make the necessary payments on time. Refinance the education loan: This is a good way to revise the loan terms, especially as most lenders offer waivers when education loans are transferred. This allows the student to negotiate payment terms that are more suitable to his / her current financial situation. And yes, these loans can be refinanced several times.  Start a side hustle: If the primary salary is not enough to cover the loan payments and expenses comfortably, the student should consider taking up a side hustle. This will help ease the pressure, and ensure the loan is being regularly paid up. 4. Save during the study years and pay up the loan at the earliest While this may seem contrary to the idea of taking a loan, this really is the financially smart thing to do. If you are taking the education loan for your child’s undergrad studies, you will typically have these four years of grace before repayment starts. As a family, you must plan your savings and investments in such a way that by the time your child graduates, a considerable corpus is ready to pay up. This may mean foregoing luxuries and living on a budget for your child during the college years, but it is the fastest way to get your child out of debt. Why do block payments help? Changing market dynamics and growing inflation push your loan repayment amounts ever higher with increased interest rates, extended tenures, and so on. Starting your life with so much liability puts a lot of restrictions on your child’s early career. Instead, putting money away, investing in mutual funds or the stock market, and building a solid corpus with expert guidance from EduFund can give your child a confident start in their career. Choose well, and don’t let the education inflation turn your child’s future into a whirlwind of merely getting out of education loan debt. Plan the finances well, and let your child really fly up to the skies of success. DisclaimerIf you are taking an education loan from a lender in another country, make sure you are aware of the rules and regulations that apply to student loans in that country. FAQs How does education inflation impact student loan interest rates? Education inflation tends to drive up student loan interest rates, causing a significant impact on repayment. What are the variables to consider for student loans? Two key factors are the lender (government or private) and the type of interest rate (fixed or variable). How does education inflation affect a student's purchasing power? As inflation rises and interest rates increase, a student's purchasing power diminishes due to slower salary growth. What options are available for managing education loan payments? Options include refinancing the loan, starting a side hustle, and saving during the study years to pay off the loan early. Why is saving during the study years a financially smart choice for education loans? Saving during the study years can help build a corpus to pay off the loan, ensuring a debt-free start to a child's career despite rising inflation and interest rates.

The US is one of the most expensive countries to pursue further studies. With the rupee falling against the dollar and the annual increase in the tuition fees at US universities, this dream of studying in the USA is slowly slipping away for most Indian students. But not all hope is lost; if you are planning to send your child to the USA for a master's, then here is a list of US scholarships for MS courses your child should apply for!  List of US scholarships for MS courses   Scholarships are a great way to fund your child’s higher education and ease the financial burden on you as a parent. Scholarships are monetary rewards given to students based on their academic performance, financial need, or ethnic background. The reward given by each scholarship varies from university to university and may not be uniform for all awardees. (Some awardees may be eligible for a higher reward than others)  Apply for Scholarship US scholarships for MS course 1. Fulbright-Nehru Master’s Fellowships  Fulbright Nehru Masters Fellowship is for Indian students who wish to study in the USA for their master's. The program offers scholarships to students studying a wide range of courses like Arts and Culture, Economics, Environmental Studies, Higher, Journalism and Mass Communication, Public Administration, Urban, and Regional Planning & Gender Studies at select universities and colleges.   The fellowship is offered for one or two years and provides J-1 visa support, round-trip economy class air travel from a fellow’s home city to the USA, funding for tuition and fees, living costs, and accident and sickness coverage.   2. Narotam Sekhsaria Foundation Scholarships  Narotam Sekhsaria Foundation Scholarships offers meritorious students full and partial scholarships as interest-free loans to study abroad or in India. Students who have an excellent academic background and want to pursue postgraduation must apply for these loans and interest-free scholarships on the official website. Students can win financial rewards as well as mentor guidance to help them build a unique career.   3. Aga Khan Foundation Scholarship  The Aga Khan Foundation provides scholarships to pursue masters and PhDs to meritorious scholars from developing countries. Scholarships function as 50% grant and 50% loan rewards. Scholarships are awarded for full-term courses and not for short-term courses. The scholarships are a helping hand to those who cannot financially support themselves throughout college.   Students get assistance with tuition fees and living expenses. The scholarships do not cover travel costs while funding for Ph.D. courses is limited to 2 years of study. Since the program covers 50% grants and 50% loans, the interest charged on a 50% scholarship is 5% (less than the average loan interest rate in India).  The payback period is five years and starts six months after the study period. The loan scholarship requires a guarantor to co-sign and provide reassurance.   4. Generation Google Scholarship  Generation Google scholarships is an initiative by the tech company, Google to sponsor students who wish to study in Canada and USA. The scholarships are meant for students who wish to pursue computer science degrees at the bachelor's, master's, and doctoral levels. Students receive around $10,000 (for those studying in the US) or $5,000 CAD (for those studying in Canada) for the year. The scholarship is given on the basis of diversity, equity, and inclusion, demonstrated leadership, and academic performance.  5. Inlaks Shivdasani Foundation Scholarship  The Inlaks Shivdasani Foundation scholarship is offered to students to study in North America or Europe. It’s given to students who display exceptional talent in their field of choice. It covers a host of costs like tuition, one-way travel, and living expenses of more than US $100,000. During the interview process, students are required to provide financial proof to cover their course. This is a mandatory requirement for selection.   The list of US scholarships for MS courses for Indian students is one way to finance your child’s US dream. Apply for an Unsecured Loan to Study in USA FAQs Is it easy to get a 100% scholarship in the USA? No, it is not. The USA is a highly competitive study destination and millions of international students apply for similar courses. You must have an exceptional academic record and a brilliant portfolio in your chosen field to bag 100% scholarships for studying in the USA. What are some fully funded scholarships for the USA for Indians? Yes, several scholarships like Inlaks Scholarship and Fulbright Scholarship, are specifically available for Indian students pursuing higher education abroad. Is the USA costly to study in? Yes, the USA is considered one of the most expensive countries to study in. In 1980, the price to attend a four-year college full-time was $10,231 annually including tuition, fees, room and board, and adjusted for inflation according to the National Center for Education Statistics. By 2019-20, the total price increased to $28,775. That’s a 180% increase.

We are always prepared for when the markets are correct. As rational investors, we know we should invest more in equity-based investments when the markets are low. But, do you know the right action to take when the markets are at a high? Traditional investor mentality Whenever the markets witness sharp extremes of high or low, investors become cautious about their next move. However, being extra cautious can often reduce the potential of the investments and make the investors take decisions that do not serve their best interests. Traditional investors usually see the market high as the perfect moment to stop their ongoing investments and sell their holdings. They then wait for market corrections to re-invest this money. This can be the right decision for investors who require money at that point in time. But liquidating your assets can create a huge speed breaker in your wealth creation journey. Investment strategies during the market boom 1. Review your portfolio This is the first step before you take any decisions related to your investments during extreme market movements. Do a thorough analysis and review of your portfolio. In this review, make sure you go fund by fund to check the performance. A detailed portfolio review will help you know what has changed in your investments from the time you invested in those market conditions. 2. Rebalance your portfolio The market volatility directly impacts your portfolio's asset allocation. E.g., when you would have begun your investment journey, your portfolio's equity: debt ratio would have been, let's take, 50:50. But when the markets boomed, the equity: debt would have increased to 70:30. This causes over-exposure to equity, which thereby increases the risk component of your portfolio. As an investor, you should periodically rebalance your portfolio or as and when the market demands so that your portfolio still performs optimally and you are way ahead of the market curve. 3. Invest in dynamic asset allocation funds A DAAF follows an intelligent asset allocation strategy depending on the market conditions. It works this way – When the markets are overvalued, this fund cuts down on its equity exposure and increases the debt allocation. In contrast, when the market is undervalued and has the potential to grow, this fund increases its asset allocation towards equity and reduces the debt exposure in its portfolio. Such funds provide the investors with the best of both worlds, that is, equity and debt, and generate steady returns regardless of market movements. This balanced fund investment is best for investors with a low to moderate risk appetite. Additional read: Importance of starting investment early 4. Give importance to value investing Even when the markets hit record highs, some stocks or shares are valued way below what they are worth. Value investing is an investment strategy that invests in stocks that are trading way below their intrinsic value and have a much higher potential for growth in the future. Investing in such stocks or funds providing exposure to such stocks helps the investor gain growth opportunities in their portfolios. 5. Avoid lump sum investments in equities The worst time to make lumpsum investments in equities is when the market is already booming and has a high P/E ratio. This means that the markets are already overvalued, and a correction is coming soon. The market movements follow a wave pattern, where every time the market goes up, it corrects to a certain level. Instead, you could make SIP investments in equities, which captures all market movements and also gives you an additional benefit of rupee cost averaging. 6. Goal-based investing Make a detailed investment plan to efficiently and effectively allocate your income. Make a set of objectives that you want to achieve with your investments. It may include buying a house, purchasing a car, planning an international holiday, or your child’s higher education abroad. When you know what you are investing for, you know what corpus you want to end up with. This helps you make your investment journey as smooth and straightforward as possible. The bottom line is, that when the markets are at a high, do not sell your investments hurriedly and re-invest entirely in the debt market. Also, putting your investments on hold can hurt your long-term goals and objectives. Follow the proper steps into rebalancing and diversifying your portfolio to ensure you are always in a comfortable position regarding your investments. Moreover, short-term volatility is not harmful to long-term investors. Always keep your goals in mind and invest systematically. FAQs What investment strategies are advisable during a market boom? The best strategy is to maintain a diversified portfolio, regularly rebalance your investments, and focus on long-term goals rather than short-term market fluctuations. Is it wise to invest aggressively during a market upswing? While it's tempting, avoid excessive risk. Stick to your risk tolerance, and consider gradual increases in equity exposure rather than abrupt shifts. How can I protect my investments during a market boom? Review and update your asset allocation, set realistic profit-taking goals, and stay informed about market trends to make informed decisions during periods of growth.

India has the world’s highest proportion of parents (over 88%) who want to send their child abroad for post-graduate studies. The UK tops the list of desirable destinations for Bachelor’s and Master’s, but before you start planning.  Questions to ask before sending a child to the UK 1. Which course is the best for your child?  First and foremost, you should sit with your child and understand his or her goals and aspirations. Proper communication is extremely important in this phase to gain clarity. Knowing which course your child takes to take can help you and them prepare better. You can create an education fund that helps them finance their dreams and the child can work towards gaining the skills and scores needed to get admission.   For example, if your child is interested in getting a seat for Engineering at the University of Cambridge, he or she must know that there are only 780 seats available. Hence, there is tough competition to get admission to engineering. Apart from that, he or she will have to get certain certificates like BTEC National Extended Certificate, Cambridge Technical Extended Certificate, and so on. All of this requires proper decision-making and planning to get admission there. There is also the average cost of studying in Cambridge that will go up by the time your child lands up there! 2. Which university is right for my child?  Selecting one particular university can be a tough task. The United Kingdom has universities providing degrees in all types of fields. Once you are done deciding on the field of education, start searching for universities that offer your particular domain of interest.   For example, if your child wants to get a degree in medicine, some of the good universities are as follows:  University of Oxford  King’s College London  Imperial College London  University of Edinburgh  University of Glasgow  Instead of medicine, if your child is interested in getting a degree in management, there are various universities providing education in that domain such as:  University of Manchester  University of Oxford  University of Leeds  University of Bath  University of Bradford  3. Is my child eligible to get admission to the desired university in the United Kingdom?  This is one of the most important questions you need to ask before sending your child to the UK and zeroing in on a university. Conduct thorough research on the eligibility criteria for getting admission to that particular university. Note that the eligibility requirements might be different for international students.   Suppose your child is interested in getting a management degree from the University of Manchester, then he or she needs to have a first or upper-second-class honors degree from an equivalent overseas university. If your child is planning their bachelor's then check if their school board is eligible for admission. There are other requirements like taking an English language test whose report has to be submitted. Note that this report will be valid only for two years.  4. What is the educational expense and cost of living in the United Kingdom?   The universities of the United Kingdom provide the best education, and related facilities, and bring with them a bunch of opportunities. Hence, of being so rich in quality, the cost of education in the universities situated there can be a little high. Students belonging to the country have to pay lesser than international students. If your child is going for a lecture-based course, then the tuition fees will range somewhere between Rs 11,30,000 to Rs 36,00,000 based on the course.  Suppose your child wants to get a degree in medicine from the University of Oxford, the tuition fees will range somewhere around Rs 36,00,000. Moreover, the cost of living and accommodation also adds up to the overall cost. It has been mentioned in the latest UK Visa requirements that the student needs to have the least amount of Rs 80,000 - 90,000 at all times in their bank accounts.   5. How to prepare financially to send my child to the United Kingdom for higher education?  If you have decided that you will send your child abroad for higher education, then it is best to start saving and investing as early as possible. Education has been on the rise for the past two decades. To counter that, you must invest a certain amount in various forms of investment such as equity, mutual funds, gold ETF, public provident funds, and so on.   All of these investments will help you to reduce the sudden burden of paying a huge amount as fees to the universities. Moreover, you will not have to borrow loans from banks. Hence, it is advisable to start financially planning way before your child has to get college admission.  FAQs What is the average cost of studying in the UK for an undergraduate? The average cost of studying in the UK is anywhere between £20,000 to £38,000 per year. The cost of studying is higher for international students because there is no cap on tuition fee increases due to increasing inflation rates. Why is the UK a good choice for higher education for my child? The UK is a great choice for higher education for your child because it is home to some of the best universities, and it offers shorter-duration courses and permanent residency. Its main language is English which means that Indian students can easily adapt and flourish in the country. How can I save for my child's UK university? The best way to save for your child's university is to start a SIP in any mutual fund (with annualized returns of nearly 12%). By saving just Rs. 10,000 monthly via SIP, you can save up to 50 lakhs in 15 years. Check out the EduFund App to start your SIP.

Millions of students from all over the world enroll in colleges abroad to broaden their horizons, develop their cross-cultural skills, and sharpen their language abilities. The majority of parents are devoted to paying for their child's overseas education and are ready to make personal sacrifices; this is true not only for primary and secondary school but also for postgraduate study. Even though this attitude is commendable, many parents are unaware of the costs associated with sending their children to an international university in the future. Countless students and their parents struggle to make their study abroad dream a reality due to poor or late planning and a relative lack of knowledge. Here are some financial planning strategies that parents may use to make their children's study abroad experience a little less stressful and a little more productive. With the help of these suggestions, you can assist your child in realizing their dreams while simultaneously preserving your long-term financial security. 1. Include cost forecasting in your plan Tuition is not the only cost of studying abroad. Your initial budget may increase significantly as a result of additional expenses such as student health insurance, academic materials, cost of living (housing, food, transportation), and entertainment. When creating your strategy, be sure to take these costs into account. Planning and budgeting are likely to go more smoothly if you anticipate increased prices and make additional savings as opposed to making smaller savings now in the hopes that they would be sufficient later. Adopting a pessimistic outlook will increase your prospects of building a future capital that is more than the real costs at that point. And the less you have to borrow at interest (like an education loan) when the time comes, the more you may give from your own savings or investments. This would not only reduce your overall debt load but also speed up your repayment process. 2. Consider long-term financial planning Planning is extremely important. As soon as you can, begin making plans for your child's international education. You may need to make certain personal sacrifices as a parent right now, so start looking at your spending patterns and reducing non-essential spending. Set aside money for your child's education, and do it regularly. Additionally, look at other options for saving and investing. Also, explore the places you might want to send your child as part of your financial planning in advance. Highly developed nations like the USA, Canada, the UK, Australia, and others are the most sought-after locations for higher education. The higher cost of living must be taken into account, and you must therefore include these aspects in your plan from the very beginning. 3. Consider inflation & exchange rates The US dollar has been among the strongest currencies in the world for many years, with practically all other currencies slowly losing value against it. You should anticipate that this will continue in the future for your currency as well. Therefore, regardless of when you intend to send your child abroad to study, you must account for inflation in your nation and potential depreciation of your currency in your study abroad budget. EduFund’s College Cost Calculator can help you figure out the average total amount you will require when you send your child to study abroad, factoring in inflation and exchange rates. Longer time frames provide you greater freedom to invest in high-risk assets like equity, which can assist you in the long term to fend off the impacts of inflation and currency rate fluctuations. 4. Find the best investment strategies Even though your child's international trip is years away, simply setting up an education fund with your current regular salary might not be sufficient to cover your child’s future needs. The living costs will probably increase from where it is today in the future. You need to start looking for extra sources of money right away that are separate from your (and your partner's) salary income if you want to lessen the impact of these potentially increased costs. As a result, you should look into medium- and long-term investment opportunities that you may begin making as soon as possible. Recognize your investment capacity and risk tolerance, and make investments accordingly. Our financial advisors can assist you in your search for mutual fund-based Systematic Investment Plans (SIP), education investment, or savings plans specifically designed for education. 5. Consult an expert investment advisor Most people find the process of preparing for an international study abroad to be intimidating. You can still feel completely unprepared with your action plan and strategy even if you start early, set a budget and a costing plan, and examine the many investment possibilities. Talking to a professional may be a good option if you feel stuck. You can explore your possibilities and create a more thorough and practical strategy with the assistance of our investment advisors and study abroad experts. You might even discover new choices that you hadn't previously known about or hadn't considered. Conclusion A study abroad plan for your child can include confusing aspects of financial considerations, but with systematic planning and a practical mindset, you and your child can both benefit in the long run from pursuing this desirable goal. FAQs What is the 50-30-20 rule? The 50-30-20 rule is the best budgeting hack. It means you use 50% of your income for expenses, 30% of your income for luxuries, and 20% for savings and investing. This is a disciplined way of investing and saving for your family's future as parents. What are the 5 tips for budgeting for parents? Create a monthly budget Invest a certain amount every month for future goals like a child's education or a home. Use calculators to set a goal. Use the SIP calculator to know how much to save, use the College Cost Calculator to know the future cost of education with inflation, etc Use new investment techniques like the 50-30-20 rule, the SIP method, or the lumpsum method! Create an emergency fund so your savings are not exhausted in any unfortunate event How to manage investments in 1 lakh salary? You can use the 50-30-20 rule to invest in your family's future. You can invest 20% of your income towards investments and savings like Mutual funds via SIPs or Lumpsum.

Post-pandemic online master’s degrees have become extremely popular. If you have applied for an online degree and are finding it hard to pay the fees, then here are some merits and demerits of opting for a personal loan for an online master’s degree!  From top universities like Harvard University, Oxford University, the University of Edinburgh, and Johns Hopkins University to online platforms like Coursera and SkillShare made accessibility to quality education easier and a great way to upskill. While some are free, there are some that charge a heavy fee. Depending upon the course, the average cost of an online master’s degree can go up to $29,000 (Rs. 23-24 lakhs).   This can be tough to finance independently as most banks do not offer education loans are not offered for online degrees. Some banks like Axis Bank do offer education loans for an online master’s degree. But space is still limited. Maximum banks and financial institutions only sanction education loans that require students to study on campus, and online degrees are not covered by them. Thus, if you are short on expenses, then you can opt for a personal loan for your online master's degree.   What are the merits of opting for a personal loan for online master’s degrees?  1. Zero Collateral   Personal loans are called unsecured loans and they do not require collateral from the borrower to sanction their claims. It is easier to get a personal loan as banks do not need you to give land, shares, or other bonds as collateral to claim. The approval largely depends on your credit scores, income history, and general eligibility or worthiness in terms of repayment. If the bank feels that you are not capable of repaying the loan, they are likely to reject the application.   2. Easy Sanctions  Personal loans verify the candidate’s worthiness, credit history, and financial stability. If you can provide an assurance to the bank that you are able and willing to repay then the banks are likely to sanction your loan faster. In terms of personal loans without collateral, your relationship with the bank, income stability, and financial background comes in handy for easy sanctions.   3. Easy Disbursals  Some banks disburse funds within seconds! Once your loan is approved and accepted, the banks can wire the money to your account immediately. Most personal loans and their lenders pride themselves on immediate and easy disbursements so that the borrower can finance their immediate needs faster. It may not be the case for all types of loans as each has its own processing period.   What are the demerits of opting for a personal loan for online master’s degrees?  4. High-Interest Rates  Interest rates vary from bank to bank and to lender. Personal loans are by nature unsecured which means the chances of getting a high interest rate may be higher. Beware of the interest rates, try to consult multiple banks before starting the application process. Having a good relationship with a bank and a financial history can help you.  5. Stress of Repayment   The stress of repayment is associated with every loan and is not exclusive to personal loans. Most borrowers struggle with repayment and may find it overwhelming at times. Having a stable income or savings can help you with the process of repayment. The cumulative interest rates and rising prices can make the job tougher but not impossible.  6. Eligibility Rigidity  Since most personal loans are unsecured, they focus largely on your credit score and financial history to sanction it. This can be a merit and demerit because a low credit score could jeopardize your application approval and make it tougher for you to gain the amount you want. Applicants are scrutinized more closely and any flaw could delay the process.    These are some merits and demerits of opting for a personal loan for an online master’s degree! An informed and well-rounded decision can help you pick the right path and help you secure a brighter future. FAQs Can you take an education loan for online degrees? Axis Bank offers education loans for online courses and executive courses that further your career. However, most banks do not offer education loans for online programs. Is it wise to take a personal loan for higher education? If you have the capacity to repay your loan on time then you can consider but it's wise to opt for an education loan for education purposes because it is made for meeting your education requirements. Should you opt for a personal loan in lieu of an education loan? No, education loans and personal loans are not the same. They can not be interchanged. Personal loans have a shorter repayment tenure, higher interests, and no moratorium period, and the loan amount offered may not be efficient enough to cover all your education expenses.

What is a mutual fund? A mutual fund is an investment vehicle or a trust wherein investors pool their savings and share a financial goal. The collected money is invested in shares, debentures, and other mutual funds. Do you want to know how mutual funds actually work and what the parties involved in it are? Continue reading to know more. The organizational structure of mutual funds in India? The structure of mutual funds in India has three tiers with few other significant components. Banks or AMCs don't just create these investment vehicles. Three main entities are involved: the Sponsor (creator of the fund), Trustees, and Asset Management Company (AMC). All the mutual funds are regulated by SEBI – Securities Exchange Board of India, and the investors who purchase or invest in these funds are termed "Unitholders". 1. A sponsor Is a person or an entity that has the right to set up a mutual fund scheme to generate returns or income through common fund management. They are for the first part of the mutual funds' structure in India. The Sponsor has to get the mutual fund scheme approved by SEBI first. The Sponsor needs to create a Public Trust under the Indian Trust Act 1882 as they cannot work alone. A Sponsor's role is crucial for a mutual fund and should have high credibility. The eligibility criteria to become a sponsor are The Sponsor must have made a profit in 3 out of the last five years, including the immediately preceding year. The Sponsor must have five years of experience in financial services. The net worth of the Sponsor must be positive for all the preceding five years. Out of the total net worth of the AMC, 40% must be participated in by the Sponsor. 2. Trust and Trustees The Trust and the Trustees form the second central part of the mutual fund structure. Trustees are also the "protectors of the fund" appointed by the Sponsor. The role of the trustees, as the name suggests, is to maintain the investors' trust and work on the fund's growth. According to the SEBI regulations, Trustees are supposed to provide a report on the fund and the functioning of the AMC on a semi-yearly basis. The Trustee is responsible for supervising the entire functioning of the AMC and regulating the mutual funds' operations. Due to the rule of transparency, the AMC cannot float a new mutual fund scheme without the permission and approval of the Trust. The Trustees are required to be registered under SEBI. SEBI further regulates their registration by either suspending or revoking the registration if found breaching any conditions. Additional read: How to choose the best mutual fund scheme? 3. Asset Management Companies (AMC) The AMC is the third part of the mutual fund structure. An AMC is responsible for floating various schemes of mutual funds in the market, keeping in mind the investors' needs and the market's nature. They take help from bankers, brokers, RTAs, auditors, etc., and get into an agreement with them while creating a new scheme. The AMC creates mutual funds, which also oversee its development along with the Trust and the Sponsor. The AMC is responsible to manage funds and provide services to the investor. 4. Custodian A Custodian is an entity responsible for the safekeeping of Securities. They are registered with SEBI and are responsible for transferring and delivering units and securities. They manage the account of investment of the Mutual Fund, wherein investors can also track their investments and update their holdings. Along with safekeeping, custodians also facilitate the collection of corporate benefits such as bonus issues, interest, dividends, etc. 5. Registered Transfer Agents RTAs act as the bridge between Fund Managers and Investors. RTAs are SEBI-registered entities that process mutual fund applications, assist with investor KYC, manage and deliver periodic investment statements or reports, update records of investors, and process investor requests. 6. Other Participants Some other typical participants in the mutual fund structure are bankers, auditors, brokers, mutual fund distributors, etc. Brokers and distributors usually sell mutual fund units to prospective investors. Brokers also provide financial and investment advice after a thorough analysis, study, and prediction of market movements. Auditors are independent internal watchdogs who audit and scrutinize account records and annual reports of various schemes. Bankers play an essential role in collecting agents on behalf of the Fund Managers. Overall, India's mutual fund's structure is very well organized and highly regulated by SEBI. Moreover, the rule of transparency boosts the safeguarding of Investors' money. Nobody in the structure of mutual funds in India can misuse investors' money and utilize it for anything other than what is specified in the investment objective of that fund. FAQs What role does SEBI play in the structure of mutual funds in India? SEBI, or the Securities and Exchange Board of India, regulates, formulates, and supervises mutual fund policies in India to protect investors' interests. What part do AMCs play in mutual fund structure? AMCs, or Asset Management Companies, pool money from various investors and invest them in different securities like bonds, stock, commodities, govt. securities, etc. How do I invest in mutual funds online? You can simply download the EduFund App ➡️ sign up ➡️ explore saving options based on your goal, risk levels, time horizon, etc. ➡️ pick a plan ➡️ start investing. What is a mutual fund? A mutual fund is an investment vehicle or a trust wherein investors pool their savings and share a financial goal. The collected money is invested in shares, debentures, and other mutual funds. What are some ways to invest in a mutual fund? There are two ways to invest in a mutual fund - Lumpsum and SIP. Lumpsum is one-time investment while SIP is a recurring investment strategy where the user pays a set amount every month. Both are effective ways to invest and create wealth for your family's welfare. What is the organizational structure of the mutual fund? The structure of mutual funds in India has three tiers with few other significant components. Banks or AMCs don’t just create these investment vehicles. Three main entities are involved: the Sponsor (creator of the fund), Trustees, and Asset Management Company (AMC). All the mutual funds are regulated by SEBI – Securities Exchange Board of India, and the investors who purchase or invest in these funds are termed “Unitholders”.

Blue Chip stocks are considered the best way for "safer investment instruments" in the equity market. Do you think blue chip stocks are the right investment option for you? Please continue reading to learn more about blue chip stocks and their fit in your portfolio. What are bluechip stocks? Blue chip stocks are shares of a huge company with excellent goodwill and prestige. These companies have a large market capitalization and are well-established, known, and financially sound companies that have been operating for many years. Blue-Chip companies in India have a market capitalization greater than Rs. 50,000cr. These companies have a record of increasing their topline consistently and improving their operating margins on an upward trajectory. Why are they called blue chips? The name blue chip is used in the game of poker, which are the highest value pieces. This symbolizes that blue chip companies are well known and of the highest value in the equity market. Features of bluechip companies stocks Large market capitalization: These stocks trade at a higher price in the markets. Therefore, they form a massive part of the market and hold significant market capitalization. Stable returns: blue chip stocks have very high reliability regarding stable returns. They may not generate greater returns like mid-cap or small-cap stocks but provide steady growth to the investments. Regular Dividend: Dividends are regular payments that investors receive from a company’s revenue. These regular payments can be made by companies that have already grown and matured and do not need to reinvest much into their growth strategies. Dividend payouts do not describe a blue-chip fund. But it is an important characteristic that attracts many investors to these stocks. Part of the market index: blue chip stocks form a significant part of an extensive market index like the Nifty 50. Low risk: These investments are considered safe as the companies are financially sound and have stable performance. Reasons to Invest in bluechip Companies Stocks Diversification: A portfolio should not be concentrated in any particular sector; it should have proper diversification. While investing in stocks like a small cap or mid cap that generate tremendous or abnormal gains, blue chip stocks reduce the overall portfolio volatility and standard deviation, which further helps optimum diversification. Stable income: No matter the market conditions, blue-chip companies pay regular dividends to their shareholders, which is why it is considered a great investment option for passive income. Best for long-term investments: blue-chip stocks are meant for investors with a long-term investment perspective. This is mainly because these stocks undergo slow but steady growth over time. Usually, investors add blue chip stocks to their portfolio for retirement purposes as the growth is guaranteed but slow. Management: Management is the backbone for the growth of any company. The board of management of blue-chip companies comprises industry leaders with significant experience and is considered an expert in their respective industries. Least effort: Blue chip stocks do not experience volatility or fluctuations, unlike other stocks. Therefore, due to the volatile market movements, you don't have to actively manage or track your blue-chip stock investments. Additional read: What are International funds? Things to consider before investing in bluechip companies' stocks Expensive: Blue-chip stocks trade at very high price levels in the market. They are already well-established stocks. It is challenging to find a blue-chip stock with a low P/E ratio. This can be expensive to invest in for small investors. Low returns: Blue-chip companies have been operating for an extended period of time. They have reached their maximum growth potential. They do not have exponential growth in their share price in the short-term horizon. Slow Growth: Blue-chip stocks do not grow as fast as small-cap or mid-cap stocks. Sometimes, they even generate returns less compared to the benchmark. Due to this, investors need more patience and a longer time horizon while investing in blue-chip stocks. List of top bluechip companies' stocks Some trendy names of blue-chip companies present in every household in India are: - Reliance Industries Ltd. Tata Consultancy Services Ltd. Avenue Supermarts Ltd. (DMart) Hindustan Unilever Ltd. Asian Paints Ltd. Nestle India Ltd. Additional read: What are offshore funds? How to identify bluechip companies' stocks?  There are some parameters that help you identify blue-chip companies. You’ll have to check -  The price-to-earnings ratio (PE) and market capitalization  If, over a period of time, a company has consistent annual revenue   If the debt-to-equity ratio of a company is stable with a sustainable interest coverage ratio, return on equity (RoE), and superior cash flows.   If the company has a clear vision for the future and a consistent growth trajectory  If the company has a significant competitive advantage over its contemporaries  If the company has the potential to outperform the competitors in their markets  If the company has good corporate governance and management setup. Who should invest in blue chip companies' stocks? Blue chip stocks are the best learning way for beginners to start their investment journey. This is the best investment option for investors who do not want to take risky bets but still want their investments to generate good returns. The ideal time horizon to invest in blue-chip stocks is 5-7 years to see the investment grow. This investment is best for investors wanting a passive investment option with limited risk exposure. An alternative When building a portfolio, investing in stocks takes time and research. A cheaper alternative to this is an Index Fund. An Index fund is a basket of securities containing all the stocks in the Index in the same proportion as the Index. It helps you invest in a bunch of securities at once without direct exposure to it. This also saves time and offers optimal diversification to the entire portfolio. FAQs What is a blue chip stock? Blue Chip stocks are considered the best way for “safer investment instruments” in the equity market. Blue-chip companies in India have a market capitalization greater than Rs. 50,000cr. These companies have a record of increasing their topline consistently and improving their operating margins on an upward trajectory. What are some examples of blue chip company stocks in India? Some trendy names of blue-chip companies present in every household in India are: Tata Consultancy Services Ltd. Avenue Supermarts Ltd. (DMart) Hindustan Unilever Ltd. Asian Paints Ltd. Nestle India Ltd. Things to consider before investing in bluechip companies’ stocks Expensive: Blue-chip stocks trade at very high price levels in the market. They are already well-established stocks. It is challenging to find a blue-chip stock with a low P/E ratio. This can be expensive to invest in for small investors. Low returns: Blue-chip companies have been operating for an extended period of time. They have reached their maximum growth potential. They do not have exponential growth in their share price in the short-term horizon. Slow Growth: Blue-chip stocks do not grow as fast as small-cap or mid-cap stocks. Sometimes, they even generate returns less compared to the benchmark. Due to this, investors need more patience and a longer time horizon while investing in blue-chip stocks.

Did you know that only 0.18% of people in India invest in equities? Our parents, grandparents, and grand grandparents have been taught to invest in FDs, real estate, gold, LIC, and PPFs. This tradition of investing in safe assets is hard to break. Ways to educate your parents about the investment scenario in India 1. Tell them about the benefits  The biggest benefit of investing is the opportunity of growing your wealth. Investing in a disciplined manner can help investors grow their savings and reach financial goals. You might not be able to duplicate the net worth and investment of growth of stalwarts like Rakesh Jhunjhunwala but investing small amounts of money in equity-based markets can yield significant returns over the years. It can help your parents build a retirement fund and beat the inflationary prices of general goods and services.   Other benefits of investing in stocks, mutual funds, and ETFs are liquidity (which means you can withdraw your money anytime you want), diversify your wealth (you can invest in a number of stocks that belong to different industries), opportunity to get dividends (some stocks and companies give dividends to their long-term investors) and interests that beat inflation. Another benefit is that you can start with a small sum and scale up after gaining a better understanding. Markets have enough space for small and big investors to meet their financial goals!  2. Spread awareness about Inflation   Inflation has broken the projections given by RBI at the beginning of 2022! It has remained uncomfortably high across the globe and pushing the prices of goods and services to an all-time high. The only way to protect your purchasing power is to start investing and making your money work for you. Consider this, money in your bank account gets an average interest rate of 2-3%, FDs have an interest rate of 5-6% while inflation is raging at the rate of 6-7% in India alone.   Inflation attacks your money in savings and FDs, which is why exploring newer investments is a smart way to beat inflation and protect your money in the long run.     3. Accessibility to investing and tracking   Investing is becoming easier and easier due to the bloom of fintech start-ups and financial influencers in India. The wealth of knowledge about investing, saving, and financial planning can be overwhelming but is a great way to educate a country that has traditionally shied away from investing. There are thousands of apps that help Indians invest in a number of financial instruments. As investors in India, all you need is a PAN card, an Aadhar card, and a banking account to get started on any investment app.   From investing in Mutual funds, and digital gold to US stocks and ETFs, the opportunities are endless! You can track your investment with no brokerage fees, and absolute transparency and get professional guidance from experts on how to start investing based on your financial goals.   However, it's important to be aware of where you are investing your money and to check that the App or platform is SEBI registered. Make sure to take all the precautions and understand the risks that are associated with investing.    4. Encourage them to secure their savings   While money in your bank account or FD is safe, it is not enough to keep up with the growing prices. The cost of products like oil, vegetables, transport, and education is growing at a higher rate than the average income across India. To bridge the gap, you can start exploring the investment market and diversify your funds. The market has enough opportunities for risk-averse investors, retired individuals, and newcomers! With proper guidance and an abundance of information, you can protect your savings via investing.   These are some ways to educate your parents about the investment scenario in India. Over the years, millions of Indians have entered the investment market of India. You and your parents could also benefit from the market if you start investing properly and in a disciplined manner. Don’t start randomly, study the market, do your research, and consult a professional to minimize risks and protect your savings!  FAQs What are some of the most preferred investment options in India? Gold, Real Estate, and Fixed deposits are the three most preferred investment options in India. How much does an average Indian invest? The average India invests nearly INR 5000 monthly according to a survey by AMFI. At what age can Indians start investing? Indians can start investing by the age of 18 years.