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The Dow Jones Industrial Average (DJIA) is possibly the most commonly followed financial market index globally. Yet, very few people know that it represents just 30 businesses.  The DJIA's Beginnings  The Dow Jones Industrial Average was set up on May 26, 1896. Charles H. Dow, one of the founders of Dow Jones & Company, came up with the Dow (formed in 1882).  The first Dow Jones index was constituted in 1884. There were 11 transportation-related stocks in the portfolio. The original index was called the Dow Jones Rail Average.   The Dow Jones Transportation Average was created in the 1970s to include air freight and other modes of transportation.  Dow soon discovered that industrial companies grew in value faster than railroads. He then created a new index by combining the stocks of 12 different companies.   It was dubbed the Dow Jones Industrial Average by Charles. Initially, it was the average of industrial firms in the cotton, sugar, tobacco, and gas industries. What is Dow Jones Industrial Average? The Dow Jones industrial average is a stock market index that tracks the Dow Jones Industrial Average (DJIA).  Dow Jones Industrial Average (DJIA), usually known as "the Dow Jones" or simply "the Dow," is one of the most well-known stock market indicators.   It tracks the daily stock market movements of 30 publicly traded firms in the United States, either on the NASDAQ or the New York Stock Exchange (NYSE). The 30 publicly-held corporations are among the economic leaders in the United States.  The Dow Jones Industrial Average components  There are no set criteria for a business's inclusion in DJIA's 30 company stocks. However, to be included in the DJIA, a corporation must make up a significant portion of its business in the US economy.   The corporation should also be registered on NASDAQ or NYSE and belong to the industrial sector's top players. CompanyStock Ticker SymbolIndustryLatest Addition to Index3MMMMConglomerate1976 / 08 / 09American ExpressAXPFinancial Services1982 / 08/ 30AppleAAPLTech2015 / 03 / 19BoeingBAAerospace1987 / 03 / 12CaterpillerCATConstruction1991 / 05 / 06ChevronCVXOil & Gas2008 / 02 / 19CiscoCSCOTech2009 / 06 / 08Coca-ColaKOFood and Beverages1987 / 03 / 12DisneyDISEntertainment1991 / 05 / 06DowDuPont IncDWDPChemical Industry2017 / 09 / 01Exxon MobilXOMOil & Gas1928 / 10 / 01Goldman SachsGSFinancial Services2013 / 09 / 20Home DepotHDRetail1999 / 11 / 01IBMIBMTech1976 / 06 / 29IntelINTCTech1999 / 11 / 01Johnson & JohnsonJNJPharmaceuticals1997 / 03 / 17JPMorgan ChaseJPMFinancial Services1991 / 05 / 06McDonald'sMCDFood1985 / 10 / 30Merck & CompanyMEKPharmaceuticals1979 / 06 / 29MicrosoftMSFTTech1999 / 11 / 01NikeNKEApparel2013 / 09 / 20PfizerPFEPharmaceuticals2004 / 04 / 08Procter & GamblePGConsumer Goods1932 / 05 / 26Travelers Companies IncTRVInsurance2009 / 06 / 08United TechnologiesUTXConglomerate1939 / 03 / 14UnitedHealthUNHManaged Health Care2012 / 09 / 24VerizonVZTelecom2004 / 04 / 08VisaVFinancial Services2013 / 09 / 20WalMartWMTRetail1997 / 03 / 17Walgreens Boots AllianceWBARetail2018 / 06 / 26 How are stocks weighed?  The DJIA is a price-weighted indicator – it means that businesses with more costly stocks are given more weight in the Dow. Market capitalization, the entire market value of all of a company's shares, is not factored into the DJIA's price weighting.   As a result, corporations with fewer pricey shares have a more significant impact on the Dow's value than companies with a large number of less expensive shares.  The Dow's strategy differs from other prominent indexes that measure the stock market's overall performance, such as the S&P 500 or the NASDAQ. When evaluating how much influence a firm will have in an index, these take its market capitalization into account.  What is the best way to invest in the Dow Jones Industrial Average? The DJIA can be used as a proxy for the overall performance of the US economy because its constituents are among the most significant public corporations. Many investors prefer index funds modeled on the Dow Jones Industrial Average.   Finally, If you purchase a new stake in a DJIA index fund, you have exposure to all 30 Dow components in your portfolio giving you simple access to businesses with a demonstrated track record of profitability and sound business practices. FAQs What is meant by the Dow Jones Industrial Average? Dow Jones Industrial Average (DJIA), usually known as "the Dow Jones" or simply "the Dow," is one of the most well-known stock market indicators.   It tracks the daily stock market movements of 30 publicly traded firms in the United States, either on the NASDAQ or the New York Stock Exchange (NYSE). Why is it called the Dow Jones Industrial Average? The Dow Jones Industrial Average was set up on May 26, 1896. Charles H. Dow, one of the founders of Dow Jones & Company, came up with the Dow. It is named after its founder. How are stocks weighed in Dow Jones Industrial Average?  The DJIA is a price-weighted indicator – it means that businesses with more costly stocks are given more weight in the Dow. Consult an expert advisor to find the right plan for you TALK TO AN EXPERT

The blockchain is a digital ledger in which transactions are recorded and stored in linked data blocks, providing a secure and unalterable record of transactions.  Blockchain technology powers cryptocurrencies, which proponents argue have far more potential than just backing digital money. Blockchain ETFs aim to give investors exposure to companies that make money from blockchain or create and explore the technology. Blockchain technology is in the budding stage. Companies in this area, on the other hand, are well established. IBM, Amazon.com, and SAP are just a few examples.   Companies who want to gamble and engage in this technology want to buy regulated company stocks. ETFs, or Exchange Traded Funds, invest in companies that operate in the blockchain space.  What are Blockchain Exchange Traded Funds (ETF)?  An ETF is an investment product based on a valuable underlying asset. For example, a blockchain ETF invests in blockchain assets such as equities of blockchain firms, virtual currencies, and crypto trading activity, to mention a few.   On the other hand, a blockchain ETF does not have to invest in companies that deal with cryptocurrencies like Bitcoin.  When someone invests in an ETF, they are investing in the assets – which means, based on investment value in the fund, they possess the right to profit from the underlying assets.   While the legality of blockchain ETFs is apparent, certain regulators continue to prohibit Bitcoin and crypto ETFs due to liquidity and valuation issues. Bitcoin ETFs are more volatile than blockchain ETFs.  How do Blockchain ETFs work?  Aside from profit from advancements in blockchain technology, there are several advantages to investing in ETFs.  For example, the BLCN ETF tracks the Reality Shares Nasdaq Blockchain Economy Index. The index comprises equities from firms involved in blockchain technology research, development, support, and use, as well as related businesses.  When a company is studied for inclusion in the index, its stock is given a "Blockchain Score" based on several factors, including how the company contributes to the blockchain ecosystem, its blockchain products, economic impact, research and development expenditures, and its results and innovations.  The index includes all of the top 50 to top 100 firms with strong ranking scores. Every six months, rebalancing takes place and calculates new blockchain scores.  Finally, the ETF uses the benchmark to analyze the returns of each of the equities in the index and the company's overall "contribution" to the blockchain economy. The goal is to track the value of the blockchain economy and its growth, as indicated by the index's top-performing enterprises.  Blockchain ETFs have $1.42 billion in assets under management and trades are made on the New York Stock Exchange. On average, the expense ratio is 0.64%.  With $950.22 million in assets, the Amplify Transformational Data Sharing ETF BLOK is the largest Blockchain ETF. The best-performing Blockchain ETF in the previous year was LEGR, which returned 0.27 percent.   The Defiance Digital Revolution ETF NFTZ, established on 12/01/21, was the most recent ETF in the Blockchain field.  ETFAUMDescriptionAmplify Transformational Data Sharing ETF (NYSEMKT: BLOK)$1.06 billionThe largest blockchain ETF by net assets.Siren Nasdaq NexGen Economy ETF (NASDAQ: BLCN)$244 millionThis ETF is focused on tracking the Nasdaq Blockchain Economy Index.First Trust Indxx Innovative Transaction & Process ETF (NASDAQ: LEGR)$152 millionThis ETF has a portfolio of more than 100 stocks with exposure to blockchain technology.Bitwise Crypto Industry Innovators ETF (NYSEMKT: BITQ)$111 millionLaunched in 2021, this is a focused portfolio of crypto and Bitcoin (CRYPTO: BTC) stocks.Global X Blockchain ETF (NASDAQ: BKCH)$102 millionAnother newcomer in the blockchain ETF space. 1. Amplify Transformational Data Sharing ETF Holds 47 securities from throughout the world, with roughly three-quarters of them based in North America and the rest in Asia and Europe.  2. Siren Nasdaq NexGen Economic ETF Comprises 64 stocks, focuses on technology companies, and has less exposure to cryptocurrency-holding corporations than other similar ETFs. This ETF features a nearly 50/50 split of domestic and overseas companies.  3. First Trust Index Innovative Transaction & Process ETF The most diverse blockchain and crypto ETF with 103 stocks. A bit more than a third of its portfolio comprises companies situated in the United States.  China is the second-largest region represented, with the rest coming from Europe and Asia. 4. Bitwise Crypto Industry Innovators ETF Consists of 30 different stocks. In a significant way, the Bitwise Crypto Industry Innovators ETF varies from the other funds.   The portfolio's equities are a more focused bet on the crypto industry, with many of them being Bitcoin miners and other businesses that are accumulating the top cryptocurrency.  Bitwise Crypto Industry Innovators ETF has generally tracked the price of Bitcoin since its inception, owing to its bias toward companies that own Bitcoin and other crypto pure-plays.  5. Global X Blockchain ETF The list's newest, most minor (in terms of AUM), and most recent. The ETF consists of only 25 equities.   Although there are a few IT companies in the portfolio, such as Coinbase, Nvidia, and PayPal, most of the holdings are crypto mining companies. FAQs What are some top-performing blockchain ETFs? Some top-performing blockchain ETFs include BLCN, LEGR, BLOK, etc. How do I invest in blockchain? There is no method to directly invest in blockchains, as of January 2022. However, an investor can invest in companies and technologies developing services and products that use blockchain. How many blockchain ETFs are there? There are 11 blockchain ETFs in the US market with a total AUM of $714.85M. Consult our expert advisor to get the right plan TALK TO AN EXPERT

Active ETFs and Passive ETFs the words actively and passively convey a meaning that has a positive and a negative connotation. However, in the parlance of ETFs, it is not the case. In the point of ETFs, sometimes being passive rather than active can help. In this article, let’s try to understand what they stand for and how one stands against the other, or are they just different investment strategies?  What are Passively Managed ETFs?  Passively managed ETFs are the ETFs that directly replicate the underlying index. The investment strategies of the ETF are governed by the underlying index and not the conscience of the fund manager. Let’s understand with an example, the Vanguard S&P 500 ETF (VOO) is a passive ETF that tracks the S&P 500. The ETF has 507 shares in it, and the index has 505. The standard deviation is 17.42% and 17.41%, respectively, thus, showing shows how closely the ETF tracks the index.   Passive investment means moving along the market, i.e., owning it rather than outpacing it. Owning the market means having a portion of all the underlying index shares and mimicking its growth rather than running ahead. Conservative passive investors feel that consistently beating the market is impossible or, at best, extremely implausible.   Passive funds are cheaper to own and administer, and this lowers the expense ratio of the ETF. In our above example, the Vanguard ETF has a meager expense ratio of 0.03%. Most passive investors believe that these funds outperform the actively managed funds in the long run due to lower costs, and not all can be above average.  However, not everything is excellent; passive investing comes with problems and criticisms. Passive ETFs are subject to market risks and lack flexibility. The fund managers are helpless if the index goes against the ETF strategy, and they cannot alter the underlying assets to cushion such volatility.   One of the most significant drawbacks of these ETFs is that they track capitalization-based indices. The larger the market capitalization of a stock, the higher its weight in the index and consequently in the ETF. This reduces the diversification of the ETFs and makes the ETF returns susceptible to the performance of such large-cap firms.  What are Actively managed ETFs?  An actively managed ETF is a type of exchange-traded fund. A manager (or a team) chooses the underlying portfolio allocation rather than an index or a rule. Active ETFs generally try to outperform a specific benchmark or a sector. The managers are free to select any strategy to deliver the promised gains to the investors.   The ETF has an underlying benchmark index, but the manager can alter the allocation of the securities as the manager sees fit – thereby generating a return that does not mimic the index.  Let’s understand with the help of an example. The SPDR SSGA Global Allocation ETF (GAL) has an allocation in various stocks, bonds, and ETFs spanning several sectors of the economy and the globe. The ETF also has exposure to corporate bonds, emerging markets, and small-cap stocks.  An actively managed ETF allows the investor to course-correct during market volatility and provides a pioneering solution to asset management.   Such strategies are also common in mutual funds, but they become an attractive option since ETFs have lower costs than mutual funds. The GAL ETF has an expanse ratio of just 0.35%.  However, the actively managed ETFs also have several drawbacks. Active ETF fund managers have the option to trade outside of a benchmark index, making it more difficult for investors to predict the composition of their future portfolios. Such ETFs have a higher expense ratio than the traditional passive ETFs.   In our examples, the expense ratio of both these ETFs differed by almost 0.32%. The pressure to beat the market might hamper asset allocation, and the ETF might underperform the actual index. Most fund managers adjust budgets based on market conditions; the fund may become less diversified than a passive ETF.  Actively managed ETFs and passively managed ETFs is an effective and popular investment techniques for ETF investors.

Parenthood is the best experience for all humans. However, it is also true that raising a child comes with huge expenses that can challenge your finances if you are not well-prepared.  Education forms a significant chunk of all the costs incurred in raising a child. Thus, planning your child's education is as crucial as retirement planning for yourself.  Let us see in this article how one should go about education planning what assets one should explore, and the role of real estate in your portfolio, in accumulating the corpus for your child's education. How to plan your child's education?  Planning your child's education starts in the early stages of a child's life. Today, higher education is quite expensive and costs around Rs 20-25 Lakhs for a degree in India.   This number increases further if you are looking for a foreign education for your child. Additionally, the currency depreciation that the Rupee (INR) is witnessing against currencies like the USD adds to the parent's worry.   While estimating the cost of education and tuition fees, you should look at other costs such as accommodation, transportation, stationery and books, coaching, etc. You can explore EduFund's unique cost calculator.  Let us now talk about planning your child's education financially and the steps involved.  Step 1. Estimate the Cost of Education Parents have to make an active choice for   Place of education  Tier of school  Type of course or field for the child to study in You will also need to consider whether your child wants to study abroad or prefers a domestic education. The education cost in India is increasing at a high rate.   Beginning from the admission process to the entire school life, parents increasingly find it challenging to meet the increasing fee structure and other costs associated with education.   Inflation in education has led to rising costs. The education inflation trend has been 10-12 percent over the years, double that of household inflation.   For example -   A 4-year engineering course costs around Rs. 12 lacks.   10 years, the cost will likely increase to Rs. 31 lacks By 2038, it would cost around Rs. 61 lacks to get an engineering degree.  Step 2. Decide the time horizon Calculate your child's graduation or post-graduation time.  Step 3. Analyze your current assets and liabilities This helps to know the current financial position to help the parents plan better.  Step 4. How much to save? Once you estimate the cost of education, decide how much to save in a lump sum or a monthly contribution.  Step 5. Investment Planning  Plan a proper asset allocation that is well-diversified and reflects suitable risk-adjusted returns.   For example - Suppose you have a long-term horizon to accumulate the corpus. In that case, you should consider equity as an investment asset class in the portfolio.   As you come closer to the goal, your allocation on debt tends to increase, and distribution inequity reduces.  Step 6. Start investing  Real estate as an asset class  In general, real estate is considered a great investment option in India. The two types of real estate investment options are   Residential properties   Commercial properties Real estate can be an excellent alternative to many investment options that offer lower risks, yield better returns, and diversify.   Characteristics  Durability: Investment doesn't come with a fixed maturity plan and has the possibility of creating wealth for multi-generation  Immobility: Real estate investment is very illiquid in nature.  Transparency: When purchasing a property, there could be a possibility that the seller is withholding information.  The cost involved: A significant lump sum is locked in to pay initially when purchasing a property.   Additionally, housing loans help to bridge the gap between savings and the cost of acquiring a property. Post-down payment and a monthly mortgage payment include a part of the principal and the interest on the loan.   Registration and Stamp duty payments need to be made to the legal owner of the property. In addition, there are various other charges such as preferential location charges, maintenance charges, parking charges, and taxes like Goods and Service Tax, property tax, capital gains tax, etc. Why is real estate not a good option for a child's education investment?  One main reason real estate is not a good investment option is its illiquid nature. Because education is a defined event and cannot be pushed further, the parents must be ready with the required corpus before the child is ready for school/college (as applicable). If an investor is required to sell the property in a short duration, it could lead to distress selling, where the seller faces a substantial loss compared with the current market value. On the front of the returns, the rate of return does not justify the costs and taxes incurred in property investment after adjusting for inflation. Interest on loan and mortgage payments further reduces the actual value of return received on property investments.   Due to inflation, the return is just a poor single-digit number lost in many years. It also requires more initial capital in the form of a down payment which may be difficult for parents in the initial or mid-stages of their careers.   Calculate SIP for Child Education Buying a property vs. systematic investing  Let us consider a case where Mr. A buys a house to fund his child's education after 16 years, and Mr. B considers investing in mutual funds via SIP for the same duration.   1. Case of Mr. A  In the first case, Mr. A makes a down payment of Rs 10 lakhs (10% of the current property value) and gets an EMI of Rs 79,892 for the period of 15 years. He then sells the property in the 16th year. The real estate growth estimation is at 6.5%.  2. Case of Mr. B  Mr. B starts a SIP of Rs 50,000 per month when the child is born for a long-term period of 15 years. Source: Edufund Research Team Table showing the investment in real estate vs mutual funds. Mr A – Outflow is the sum of the down payment and all the subsequent EMIs.Mr B – Outflow is the sum of all the SIP.Source: EduFund Research Team Note: Outflow is the total money paid by Mr A and Mr B. Graph showing the difference in the outflow and total value of the investment in real estate and mutual funds The difference in cash outflow (Total EMI vs. Total SIP) is considerable at Rs 53 Lakhs - is because when an individual starts paying EMI, he ends up paying the principal and interest component, both due to which the cash outflow is high.   Further, when we consider the amount accumulated in SIP after 16 years and the amount recovered from the property sale, there is a staggering difference of Rs 40 Lakhs.  Thus, the total benefit in mutual funds over real estate stands at nearly Rs 1 crore. We see that investing in real estate creates a hole in the investor's pockets. Moreover, many investors may not have such a substantial initial lumpsum readily available to invest in.   Mutual funds provide the feasibility to start with SIP and increase the amount gradually. But for a housing loan, a minimum down payment is a must.   EMIs for housing loans are like an expense for an individual. Whereas SIPs are like reasonable EMIs where an investor earns interest on their periodical installments.   Also, mutual fund SIPs have the power of compounding, whereas real estate investments only have an average inflation rate that gets added to the asset value year on year.  To plan your child's education, you should also ensure that your portfolio has the necessary liquidity. The property sale is a difficult and lengthy process, requiring time in hand. Mutual fund redemption is instant, and the investor receives the funds in 2-3 business days. The properties in a preferential location have a reasonable appreciation rate, but that may not always be the case.  Distress selling takes place in case of an urgent need for money through a property sale, that is, property sold at much less than the actual market value.  But in the case of mutual funds, even during emergencies, the investments are sold at market value. Therefore, transparency and liquidity are more in mutual fund investments.  These points are more than enough for a parent to choose mutual funds or other alternate investment options over real estate while planning their kid's education. Consult our expert to discuss the right plan for you. TALK TO AN EXPERT FAQs Which mutual fund is the best to plan for a child's education? The best choice of mutual fund scheme varies highly from investor to investor. One shoe doesn't fit all. Hence, it is important for investors to understand their goals, risk level, time horizon, etc, to find the best mutual fund. However, some of the top AMCs offering mutual funds that investors can explore on the EduFund App include UTI, HDFC, ICICI, DSP, etc. How much money do I need to start investing for my child's future? There's a common misconception that only rich people can invest. The truth is that you can start a SIP for as low as 100 rs/ month. Explore your options on the EduFund app and make an educated decision with the help of our Savings Experts. How can I save money for my child's education? There are many ways to start saving for your child's future education. Some common ways are - investing in mutual funds, putting money in eligible saving bonds, buying digital gold from licensed sources, investing in US ETFs to prepare for foreign education, etc.

ETFs have been doing the rounds in the market for a long time and have penetrated deeply into investor portfolios. Thanks to their liquidity, accuracy, and ease of understanding, these instruments have proven to be a boon for retail and institutional investors. Advantages of ETFs The most eye-catching amongst them is their lower costs. But why are these ETFs cheaper? The answer to this question is the ETF structure and how they operate. Reasons why ETFs are cheaper?  Most ETFs are passive index funds. These funds generally track the underlying index with full or partial replication, thereby reducing the need for actively managing a fund which is usually the case with mutual funds.  Index-tracking mutual funds are also expensive as compared to similar ETFs. Let's suppose an investor wants to sell or buy an ETF; the investor does the same by directly placing an order with the broker. However, to transact in a mutual fund, the investor needs to contact the fund manager, sell these units in the secondary market, and revert to a tedious process that costs more. The mantra is simple "less work = fewer costs" ETFs use an "in-kind" method of creation and redemption of shares. What is the in-kind creation process?  An in-kind creation process means that if an investor has a portfolio precisely similar to the underlying security basket of the ETF, then the investor can directly exchange this portfolio for the equivalent number of ETF shares.  The option was available only to large sum investors or institutional investors, but now it is available for retail investors too. This type of transaction reduces the number of transactions an investor must go through to get ETF shares. Thus, the transaction fee and paperwork commission are not there. What is the in-kind redemption process? An in-kind method of redemption process is also in place. The investor can opt for an in-kind redemption process by exchanging the ETF share for underlying securities rather than selling them in the secondary market.  The above-mentioned process again enables the fund to buy and sell securities without entering the secondary market, leading to a reduction in paperwork and other transaction costs, thus allowing a cost-effective running of the fund. Consumers, thus, benefit in the form of a lower expense ratio. Administration charges are also one of the key factors which increase the cost of holding mutual funds vis-à-vis ETFs.   Since ETFs trade on the stock exchange. The fund house need not get involved in the everyday transactions of the fund. The issuer needs to come into the picture only during the creation and redemption process of the shares.   Consider this: When investors trade Tesla (TSLA) shares, the company has no direct involvement. ETF issuers have no direct participation when investors sell their shares on similar lines.   On the other hand, a mutual fund needs to be involved in every transaction since all transactions happen through him.  Mutual funds charge an annual 12b-1 fee. What is a 12b-1 fee? It is an expense that the mutual fund undertakes to promote and market the mutual fund to increase its AUM.   If you wonder whether they transfer these expenses to their investors, the answer is - YES, they transfer these expenses! The world is not a fair place after all.  According to the Securities and Exchange Commission (SEC), "these fees are deducted from a mutual fund to compensate securities professionals for sales efforts and services provided to the fund's investors."   The original motive for sharing these costs was to increase the popularity of the mutual funds by lowering the expenses of mutual fund houses, but in today's world, where they have infiltrated almost every portfolio, charging this fee is a bit controversial.   ETFs are far less expensive than mutual funds because they do not charge 12b-1 fees, thus, they have a lower expense ratio. Conclusion ETFs are significantly cheaper than other such investment vehicles due to their operation and structure.   ETFs are intrinsically more cost-effective than mutual funds since they trade on exchanges like stocks, eliminating many operational fees of running a mutual fund.   Furthermore, because most ETFs are passively managed and linked to an index, issuers have fewer costs to pass on to investors, resulting in reduced expense ratios. Consult an expert advisor to get the right plan TALK TO AN EXPERT FAQs Is it better to buy ETFs than mutual funds? Which option is better - ETFs or Mutual Funds - the answer to this question varies from investor to investor. However, if you are looking for an investment that is more tax-efficient, ETFs would be a better option for you. Are there any disadvantages to owning ETFs? There are two sides to every coin. Just like its tremendous advantages, there are some drawbacks that investors must be aware of before buying ETFs. Some of the disadvantages include high trading fees, low trading volume, operating expenses, tracking errors, etc. Should I switch from mutual fund to ETF? Switching from mutual funds to ETFs would likely be the right choice for you if the fund you're investing in has a high expense ratio or, due to undesired distribution of capital gains, you find yourself paying too much in taxes every year.

Diversification is an essential component of life; the same is true with financial instruments! Typically, there are thousands of Exchange Traded Funds(ETFs) in the market to invest in, which have several hundred types of underlying assets that the fund mimics.  These ETFs can be used to grow wealth, counter adverse speculations, offset inflation risks, or maybe hedge your portfolio. Types of ETFs 1. Bond ETFs  Bond ETFs are also called Fixed Income ETFs. The reason for the name is that the ETF invests the money in various fixed-income instruments like government bonds, corporate bonds, etc.  These securities have a fixed percentage return over time and have very high stability. Hence several professionals invest in such ETFs to have a steady flow of unhindered income. People often use such funds to hedge the volatile parts of their portfolios.  For instance, iShares Core U.S. Aggregate Bond ETF, Vanguard Total Bond Market ETF, Bharat Bond ETF, etc., are some ETFs that invest your money into fixed-income instruments.  2. Equity ETFs  Equity Exchange Traded Funds generally track indices in the equity sector of the financial market. These ETFs track several sectors or industries and try to replicate their growth in the fund's performance.   One can choose ETFs covering large businesses or small businesses, etc. For instance, if an ETF covers the banking sector, it will hold stocks of firms working in the banking sector. Thus, it will help the fund mimic the growth path of the banking sector.   Now, the fund doesn't need to have only the firms from a single country; stocks from around the globe can also be underlying securities in an ETF. Composition depends on what ETF you choose. Unlike holding actual stocks, such ETFs do not involve actual ownership of securities.   Examples of such ETFs are ICICI Prudential NIFTY ETF and SBI ETF, listed on the Indian markets. In the USA, SPDR S&P 500 ETF Trust and SPDR Dow Jones Industrial Average ETF Trust are traded. 3. Commodity ETFs  Commodities are often very pricey compared to stocks and thus are often inaccessible to the commoners. What's the solution? - Owning a commodity ETF! Such ETFs are a great way to get hold of commodities like gold, silver, and other commodity derivatives like Crude Oil, Natural gas, etc.   Commodity ETFs have a lot of advantages in this particular section of the financial market. ETFs make the commodity accessible at meager costs rather than owning the derivatives or commodities.   They may also combine several products into one to hedge for any unforeseen downturns. Invesco D.B. Commodity Index Tracking Fund, KraneShares Global Carbon Strategy ETF, Axis Gold Fund, etc., are a few examples of commodity ETFs.  4. Currency ETFs  Currency ETFs generally track the movement of either a single currency or a basket of currencies bundled together. The ETFs can either hold the underlying cash directly or could use currency derivatives instead.   An investor generally buys such an ETF when he knows that the currency will appreciate or wants to hedge his portfolio against volatility. More often than not, some ETFs that hold overseas assets do hedge for currency fluctuations.   Wisdom Tree Indian Rupee Strategy Fund, Invesco D.B. U.S. Dollar Index Bullish Fund, ProShares UltraShort Yen, etc., are a few examples of currency ETFs. 5. Factor ETFs  The power of capturing the factors is often called smart beta. Factor investments revolve around targeting a specific factor return across several asset classes. Institutional investors and fund managers have been using elements to manage portfolios for ages.    ETFs have helped to transform how investors access these historically rewarded tactics. Now, these ETFs can target a single factor or multiple factors depending upon the strategy of each ETF.    A few examples of factor ETFs are JPMorgan U.S. Value Factor ETF and iShares Edge MSCI World Multifactor UCITS ETF. 6. Speciality ETFs  These ETFs need specific ETFs and several different types of specialty ETFs have been floating in the market recently. Most prominent among those are inverse funds, Leveraged funds, sustainability funds, etc. Such types of ETFs are generally risky.   Inverse ETFs usually go up when the underlying index goes down, similar to short selling by investors. Some examples of inverse ETFs are ProShares UltraPro Short QQQ and AdvisorShares Ranger Equity Bear ETF.  On the other hand, Leverage funds borrow money for each penny or a quantum of the amount invested in growing your return. For example, 2X ETF will borrow an extra $1 for every $1 you put into the fund.   Direxion Daily CSI 300 China A Share Bear 1X Shares, Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X Shares are a few examples of leveraged ETFs. We will learn more about these ETFs in the coming time.  Which ETF to invest in all depends on the investor. Investment goals and risk appetite are the main drivers of choice. An investor needs to recognize the risk-return ratio of every ETF available in the offing. FAQs What are some good equity ETFs to invest in? Some of the ETFs, according to Morningstar's U.S., are - Dimensional US Core Equity 2 ETF DFAC, Dimensional US Core Equity Market ETF DFAU, iShares Core S&P 500 ETF IVV, etc. Which one is better to buy - a bond or a bond ETF? Both investment options have their pros and cons depending on the investor. However, you can opt for bond mutual funds if you're looking for active management, as they offer more choices. If you are planning to frequently buy and sell, then bond ETFs would be a better choice. Which ETF offers the best returns? Here are some top ETFs offering good returns - Vanguard Growth ETF (VUG), iShares Morningstar Mid-Cap Growth ETF (IMCG), Vanguard S&P Small-Cap 600 Growth ETF (VIOG), etc.

ETF (Exchange-Traded Fund) A potluck is an excellent symbol of an ETF. We have all been to a potluck party; what do we do?  We combine all we have brought and then fill up a plate with the different assortments! An ETF is similar to this mixed plate. An ETF is like a mutual fund; however, it isn’t the same.  A mutual fund is a collection of various securities based on the theme of that particular fund. These securities are bundled together and sold as a unit.  The investors thus receive these units, which are representative of the investments made by the fund manager. ETFs, help laymen investors grow their wealth with ease and convenience.  An ETF eliminates the time and resources an investor would have to devote if they have to make a strategy for investments manually. An ETF manager replaces this need for research for the investor.  Similarly, an ETF is like a mutual fund that traces security, commodity, or asset based on the type of ETF one chooses. An ETF is a marketable security traded in the stock market, just like shares.  Where are ETFs registered? An ETF is registered with the US Securities and Exchange Commission (SEC) in the New York Stock Exchange or the Nasdaq and with the Securities and Exchange Board of India (SEBI) if traded in the National Stock Exchange (NSE) or Bombay Stock Exchange (BSE)  The ETFs have a ticker symbol similar to stock symbols, and they can be easily bought and sold through a broker. The price of an ETF fluctuates all day, just like stocks as per market movements.  The value depends upon the fluctuations in the underlying assets of the resource pool. Unlike mutual funds settling only once a day, one can easily buy or sell these ETFs during market trading hours.  Exchange-traded funds have mostly been there for retail investors like you and me, which will resemble the performance of the underlying assets. However, ETFs have grown popular among hedge funds and institutional investors nowadays.  Some of the biggest ETF management companies are Blackrock, Vanguard, State Street Global Advisors, Invesco PowerShares, etc. Several types of ETFs try to replicate a specific index or a benchmark with the help of the underlying asset allocation.  Types of ETFs ETFs track market sectors as a whole. Different types of ETFs are Commodity ETFs Sector and industry ETFs Bond ETFs Foreign currency ETFs  And others! Specialty funds are a very peculiar type of ETF. An inverse fund tracks an index or a benchmark inversely, which will gain when the particular index performs shabbily. Let us go through all these types of Exchange Traded Funds.  ETFs have proven to be quite resourceful and pocket-friendly for investors looking to invest in specific asset classes, sectors, commodities, etc. Such investors save their research time as well.   Their low cost has opened gateways for all types to invest in thematic funds and hence are also suitable for long-term holdings. People eyeing a sector-themed investment have benefited from such ETFs.   Investors are also using ETFs to hedge their portfolios against possible market fluctuations. If their portfolio goes for a ‘see’, investors have an ETF that goes for a ‘saw’, thus providing the golden balance just like a perfectly swinging see-saw.   Historically, ETFs have been a revolutionary investment product. FAQs Are ETFs a good investment for a new investor? Exchange Traded Funds are usually considered to be low-risk investments as not only are they low-cost but also hold various stocks and securities, thus increasing diversification. What are some popular ETFs? One of the most known and oldest surviving ETFs (that tracks the S&P 500 Index) is the SPDR S&P 500 (SPY). What are the top 3 ETFs to buy? Some of the top ETFs include Vanguard 500 Index Fund, Invesco QQQ Trust, and Vanguard Growth Fund.

There are multiple ways to accumulate wealth through investing in a mutual fund. Here's all you need about the Lumpsum vs SIP vs Step-up SIP, to make the right investing decisions discuss some conventional and modern methods of financing. 1. Lumpsum  One of the most popular and oldest ways of investing in mutual funds is making a lump sum investment. It is a one-time bulk investment in a mutual fund. The time of entering the market is crucial in lumpsum investment. It can give you good returns when the market is in a bull run but may not provide returns in a bear run. No one knows exactly when a bull market is ending, and a bear market is starting. The investments' entry and exit are crucial, depending on market conditions. 2. SIP A SIP or a Systematic Investment Plan, involves a fixed amount going towards a mutual fund; on a daily, weekly, monthly, quarterly, half-yearly, or annual basis. A SIP is the most common way of investing in a mutual fund. There are multiple benefits of investing through a SIP. The minimum amount required can be as low as ₹100/month, and the rupee averaging cost and the power of compounding helps to develop financial discipline. You don't need to track the market daily. 3. Step-up SIP Step-up SIP is the lesser-known way of investing in a mutual fund. With this way of investing, SIP can be increased on a half-yearly and yearly basis. As in percentage or numbers of the current SIP. This option of funding can be chosen for multiple reasons you're starting early in your career, have a low budget, cannot save much in the initial phase, or want to check how SIP works. Let's understand all three ways with the help of an example Let's say you want to save for your child's higher education, who is just born. So, ideally, you have 16 years to invest until your child reaches that age; by then, the cost of graduation would be around ₹10,00,000. You will make an investment in the BSE Sensex Index to take advantage of the growth of the entire index. Now, let's understand which could be the ideal way to save for your child's future as per your budget. ParticularsLumpsumSIPStep-Up SIPNo. of Years161616Target Amount₹ 10,00,000₹ 10,00,000₹ 10,00,000Initial Investment₹ 1,70,000₹ 1,900₹ 1,000Total Invested Amount₹ 1,70,000₹ 3,64,800₹ 4,31,397Accumulated Amount₹ 10,16,330₹ 10,19,286₹ 10,07,229Note: Period understudy is between Jan’06-Dec’21. The step-up amount is considered 10% annually. Source: EduFund Research Team Note: The period understudy is between Jan’06 - and Dec’21.Source: EduFund Research Team Note: The period understudy is between Jan’06 - and Dec’21.Source: EduFund Research Team Which is better? In all the scenarios, an investor has made the wealth or the corpus needed for his child's higher education. The amount invested is different for different modes of financing. You can figure out which could suit you the best from the above table. Suppose you don't have a sufficient bulk amount to achieve the target corpus. Then, you can consider investing through the SIP route, which requires a monthly SIP of ₹1,900 over the period. But even if you cannot afford to invest ₹1900/ month. The last option that you can consider is Step-up SIP which requires less amount at the initial phase of the investment, but by the end of the journey, the amount of SIP can go up to ₹4,200/month. Choosing multiple options can help you to maximize your returns. Income, investing objectives, financial stability, and risk are some factors to consider when choosing the option of investment. One should consider the risk involved when choosing any way of investing. Over time, wealth accumulates with the power of compounding acting upon the increasing investment base. It's not a one or two-year play. The best way of investing in a mutual fund is SIP which will not hurt your pocket, minimize the risk, reduce the volatility, and create wealth. FAQs Which kind of SIP gives the highest returns? As of Feb'23, Quant Tax Plan- Direct-Growth Fund is a SIP plan offering the highest 5-year returns investing in precious metals, consumer staples, financial, and energy. Is a one-time investment better than SIP? One-time investment or lump sum fluctuates as the market moves. SIP, on the other hand, averages the cost of units. So, which option is better depends on the individual investor. You can choose an option based on your investment objective. What's step-up SIP? This is a different and lesser-known way of investing where you can increase your SIP amount on a yearly or half-yearly basis.

Potomac Funds, a mutual fund provider, was created by Direxion in 1997. The name came from the Potomac River, close to the company's first location in Alexandria, Virginia.   Potomac Funds was the second company to offer an inverse mutual fund in November 1997, after Rydex Investments did so in 1994. In 2006, the corporation adopted the Direxion moniker.   The use of the word "X" in the new name was to call attention to the company's leveraged index products. The business was the first to offer 3X leveraged ETFs in November 2008.  The company has Assets Under Management of approximately $ 30.8 billion as of 31 December 2021. Direxion provides investors with products like ETFs and mutual funds.   The company provides strategic and thematic ETFs and advanced ETFs like leveraged ETFs and inverse ETFs. Direxion offers non-traditional investments to accommodate various market cycles.  For financial advisors, individual investors, institutions, and active traders, Direxion specializes in providing solutions that deliver  A means of seeking broader diversification dampened volatility and income or excess returns  Efficient access to non-correlated asset classes and strategies  Flexibility to position portfolios opportunistically for near- and long-term market trends  Liquid, cost-effective access to sophisticated strategies Strategic and thematic ETFs help buy-and-hold investors achieve long-term outperformance when compared to passive indexes while seeking more specific objectives such as:  Higher-income  Enhanced diversification  Reduced volatility  Excess returns and more   Strategic funds provided by the company are in the form of the following: Fund NameTickerUnderlying indexExpense ratioDirexion Auspice Broad Commodity Strategy ETFCOMAuspice Broad Commodity ER Index0.70Direxion NASDAQ-100 Equal-Weighted Index SharesQQQENASDAQ-1000.35Direxion Russell 1000® Value Over Growth ETFRWVGRussell 10000.63Direxion Low Priced Stock ETFLOPXSolactive Two Bucks Index0.50 Thematic funds provided by the company are in the form of Fund NameTickerUnderlying indexExpense ratioDirexion Hydrogen ETFHJENIndxx Hydrogen Economy Index0.45Direxion Moonshot Innovators ETFMOONS&P Kensho Moonshots Index0.65Direxion Work From Home ETFWFHSolactive Remote Work Index0.45Direxion mRNA ETFMSGRMessenger RNA Technology Index 0.65 Leveraged and Inverse ETFs provide opportunities for investors to:  Magnify short-term perspectives with daily 3X and 2X leverage  Utilize bull and bear funds for both sides of the trade.  Trade through rapidly changing markets  Direxion leveraged ETFs have provided investors with several options based on investor tastes and preferences.   The firm provides Daily Bull and Bear 3X ETFs   These ETFs provide a daily 3X leverage to whatever the investor invests to boost the returns.   These ETFs include sectoral ETFs, which may focus on aerospace, Internet, Financials, etc. The company also offers fixed-income ETFs with a 3X leverage which may follow the bull or the bear trend.  Market Cap-based ETFs are also on offer, which may track large, mid, and small-cap stocks on the exchange. A leverage-based approach is also available in this arena.   Worldwide exposure can be achieved by investing in various ETFs which invest in emerging markets like China and Mexico. The firm also offers a variety of MSCI-based ETFs.   A 1X and 2X leveraged ETF choice is also available.   Some examples of such funds are  Aerospace & Defense Bull 3X Shares,   Financial Bear 3X Shares,   20+ Year Treasury Bull 3X Shares,   Small-Cap Bear 3X Shares,   MSCI Mexico Bull 3X Shares,   5G Communications Bull 2X Shares,   CSI 300 China A Share Bear 1X Shares.  Along with ETFs, Direxion also provides mutual funds to investors. These are either actively managed or passively managed.   Examples of some mutual funds offered by the company  Hilton Tactical Income Fund, Monthly 7-10 Year Treasury Bear 2X Fund, Monthly NASDAQ-100 Bull 1.25X Fund, etc., are According to the company, 'Our role is to complement your core investment strategies, not replace them. Our funds allow you to seek opportunities in all market conditions, offering new solutions to challenge old standards. At Direxion, we are focused on your success.   We continuously strive to provide you with innovative products, consistent performance, and on-the-ground support to help you take advantage of opportunities, execute your strategies, deliver for your clients, and grow your business—regardless of market conditions.'   Thus, Direxion leveraged ETFs need to be taken care of while investing in the ETF world or even the mutual fund world. FAQs What is Direxion ETFs? Potomac Funds, a mutual fund provider, was created by Direxion in 1997. The name came from the Potomac River, close to the company's first location in Alexandria, Virginia.   What is an ETF? An ETF stands for exchange-traded fund (ETF). One single ETF is a basket of securities that can be bought and sold like mutual funds through a brokerage firm. ETFs track a specific index such as S&P, sector, commodity, or other assets. Much like stocks, ETFs can be traded on the market. Is an ETF better than a stock? Investing in an ETF is less risky than investing in a stock, as ETFs are diversified. In the case of ETFs, investors do not control what happens to the portions of the ETFs. ETFs have a diversified profile of assets, and the risk associated with the investment reduces significantly. In stocks, the risk attached is higher as the stock price depends entirely upon the company’s performance and other exogenous factors of the world.    Consult an expert advisor to discuss the right plan for you TALK TO AN EXPERT

Investing in ELSS is an effective way to create wealth while claiming tax deductions. While saving involves putting money aside, investing takes the act of saving a step further and puts your money to work for you. You can choose to invest in creating wealth and save for financial goals like education or purchasing a home. What's even better is that some investments also offer you the option of saving on taxes while achieving your goals. So, PPF (Public Provident Fund), NSC (National Savings Certificate), and Tax Savings Fixed Deposits (FD) - are all popular investment options that help you save on taxes. What is ELSS? ELSS or Equity Linked Savings Schemes are mutual funds that invest in equity and equity-related securities. They are professionally-managed that and can help you claim tax deductions under Section 80C of the Income Tax Act,1961. The benefits of investing in ELSS  ELSS = the only mutual fund that is eligible for tax deductions. You can save up to ₹46,800 / in a financial year by investing in ELSS. While there will be no tax benefit if you exceed the limit of ₹1.5 lacks, investing in ELSS has a few notable advantages. Please take a look at some of them below. ELSS has a show that has a shorter lock-in period of 3 years, unlike the PPF, NSC & Tax Saver FD, which have a 5-15-year lock-in period.  ELSS funds can offer higher returns as they invest primarily in equity securities and those that are equity-related. The returns are usually higher than other investment options with tax benefits and can be approximately 12%-15% annually as per historical data. Higher returns also help you beat inflation- the rising cost of everything because of the falling value of the rupee You can invest in ELSS funds flexibly by investing a lump sum at one go, or you can choose to make regular investment installments (SIPs) if you invest over time comfortably. Read: Guide to Planning Your Investment A quick comparison Take a quick look at how ELSS compares to PPF, Tax-saver FDs, and NPS in the table below. Investment ELSS PPF NSC Tax-Saver FD Lock-in 3 Years 15 Years 5 years 5 Years Annual Returns 12%-15% 7.10% 6.80% 6.00% Risk Market-related risk Low risk Low risk Low risk Minimum Investment ₹ 500 ₹ 500 ₹ 1,000 ₹ 100 Tax Benefit Yes Yes Yes Yes Maximum Deduction ₹ 1,50,000 ₹ 1,50,000 ₹ 1,50,000 ₹ 1,50,000 Premature/Partial Withdrawal Not Allowed Allowed only after 5th Year Only under special circumstances Not Allowed Taxation on Returns LTCG Applicable Tax-Free Tax Applicable TDS Applicable The above table represents data from EduFund's research team. Mutual Funds are subject to market risks. Read all the scheme related documents before investing. Investing in ELSS Investing in ELSS is easy when you have an app like EduFund that is simple to use. It is also essential to know which ELSS to invest in. And here is one that you can make a note of if you're making a list of top ELSS funds to invest in. ELSS of the Month – Quant Tax Direct plan- growth  Objective – The investment objective of this scheme is to generate returns on the invested amount by predominantly investing it in a well-balanced portfolio with equity holdings that have growth potential.  Suitability – For any investors who are looking to invest for at least three years while receiving an additional benefit of tax saving apart from higher return expectations from this fund.  Risk –  High risks as the fund is volatile and utterly dependent on the market movement. It shows volatility greater than that of the category average. Therefore the returns are not guaranteed.  Trailing Returns % Fund Benchmark Category 3 Years Annualized 50.83 19.91 21.69 5 Years Annualized 33.01 16.13 15.29   Invested Returns Accumulated Annualized Return (XIRR) Cumulative Return ₹ 10,90,000 ₹ 26,66,834 ₹ 37,56,834 25.95% 244.66%  So far, this fund has held the highest rank in ELSS for the last five quarters, and it can be one of the best options to save tax. If you've already invested in this fund, consider continuing to invest. If you haven't supported it yet, consider this fund as an option to start saving on taxes. FAQs Are ELSS funds tax-saving funds? ELSS, or Equity Linked Savings Scheme, allows you to save on taxes under the 80 C section of the Income Tax Act 1961. How much can I save on taxes through ELSS mutual funds? You can invest up to 1.5 lakhs/ year on taxes by investing in ELSS mutual funds. Even though this is the cap for saving on taxes, you can invest more than 1.5 lakhs on ELSS in a year. How can I invest in ELSS funds online? You can simply download the EduFund app and explore your options in the "Invest" section of the app. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Life becomes easier and more manageable with planning. A very important part of a happy and balanced life is managing your finances well. This responsibility becomes manifold if you have a family to provide for. Prioritizing the prior planning of your child’s college education can make your retirement life effortless and stress-free. Put away savings to preserve wealth. Invest money to generate more wealth. At the end of the day, gaining that fine balance between your savings, investments, and spending habits is what will secure a beautiful future for you as well as your family. Here are some pro tips on how to invest and save for your children’s college education. 1. When to start? Timing is everything. The logic is simple - the earlier you start, the more wealth you can generate and accumulate. You may begin as early as the family planning stage itself. Even if you do not have a clear sight of the stream of academics your child might pursue later in life, it does not hurt to put away money. As your child grows up, they might decide upon what line of academics they want depending on their career goals. Your savings will come in handy in reassuring your child that you are perfectly prepared to back them in realizing their dreams as there will already be a considerable amount of funds they can count on. 2. Compartmentalise your savings The habit of saving money regularly is one of the healthiest habits one can inculcate. But mastering the art of saving requires self-regulation and a sense of organization. Putting away a bulk of money indiscriminately is not the most effective way of saving. Keep track of your expenses and your income; device upon an amount you can afford to put away as savings. Make a list of all the things you need to save for - emergencies, education, health, housing, and so on. Divide your savings accordingly. The act of compartmentalizing savings can also be effective in regulating your spending habits. You can also inculcate this healthy habit in your child from an early age by encouraging them to save money from their monthly allowances. 3. Consider different investment options Investing is always an improvement upon saving because investments can generate new wealth. Thus, it is not enough to just put away money as savings; you also need to allocate funds to certain investments that suit your monetary goals. There are different kinds of investment channels you can opt for. Some of us prefer fixed or recurring deposits while others want to generate more returns and go for mutual funds. Mutual funds can be of different types depending on the factors like the amount of risk, duration, return rates, etc. The mode of payment can also vary. For example, you can go for a one-time investment or you can choose monthly SIPs. Be well aware of all kinds of investment plans available so that you can choose the best one for yourself. 4. Invest in a global education Your savings and money made from investments will be especially useful when you send your child abroad to pursue a college education. Even if you are not sure about the possibility of global education in the future, it is always advisable to remain prepared for the same. Simply saving money is not enough. Investing is a better idea and in the case of global education, it can be beneficial to invest in foreign stocks. This is because the value of the Indian currency is forecasted to fall in comparison to other stable currencies in the world. This means that the cost of living and studying abroad will be way higher than the cost of living and studying in a new city within India. Once you set your financial goals, find out about investment schemes with international equity funds from countries like the US, so that you can make money in a more stable currency. Conclusion There can be several investment goals relating to different parts of your life like yourself, your spouse, relatives, housing and accommodation, health, gadgets, and emergencies. Mixing these up will only cause chaos and distress. Hence, it is important to think separately about saving for your children’s college education and indulge in smart investments. Consult an expert advisor to get the right plan TALK TO AN EXPERT

As the festivities of the year-end begin, the world of finance is going to look back at this year as one that brought hordes of new investors, one that witnessed rapid recovery from the pandemic, and one that renewed the investor’s sense of optimism in the markets.   The markets have hit all-time highs this year and it is natural to wonder what is to be expected of the new year. In this article, we dive into the trends that might continue, and some that might fade away.   1. Another year of the bulls?  The markets might have recovered well from the historical lows of the pandemic but the supply chains are still yet to function at a hundred. In the new year, companies around the world would look at consolidating their supply chains and getting back to leaner ways.  The profitability that took a hit for most companies due to their logistical inability to meet demand, would likely get back on track with most of the world opening back up. And if there is one thing that drives a bull run, it is profits and dividends.   2. New investors this new year   According to the NSE, over 5 million new investors registered on its platform since April of this year. This is partly to be credited to the emerging platforms that have made investing accessible to the common man. Another key factor has been the educational efforts from various agencies to bring the markets to the people.   For India, it is a bright sign of advancement as more capital is being poured into the equities market by newer investors. This is a trend that we might see more of in the coming year and thankfully so.   3. The focus on goal-based investing   A rising trend among Indian investors has been goal-based investing. For some, the goal is long-term like their retirement, for others, it is medium-term goals like housing and education.   With EduFund, our education-focused investment platform, we’ve seen more and more parents starting an education fund to beat the rising education inflation worldwide. It has been through SIPs, where they set aside a small sum each month to generate that education corpus for their children.   As is with any action, with a purposeful goal, investing too becomes easier. This trend might be here to stay for the next year and beyond.  4. The Web 3.0 phenomenon  It does seem like an eternity ago when investment vehicles were limited. Today, the number of options available for investment is nearly countless, with new ones emerging every passing day.   From NFTs and the Metaverse to cryptocurrency and other resultant products of Web 3.0, the investor of today is exposed to many newer options. Naturally, the volatility of these untested waters is a concern. It is surely wise to restrict these investments to a small percentage of your portfolio, and stick to the tried and tested regulated markets.   Nevertheless, the coming year is sure to see more capital poured into channels emerging from Web 3.0.   5. The Internet educators   If India has to see a large percentage of its population participating in the markets, content creators creating shorts, reels, slides and long-form videos are going to play a key role.   A delightful addition to the financial realm this year has been internet content creators who have been making exceptional content on finance and educating the young and old. This wave of creators has seen their following and influence increase and the coming year is sure to see more creators emerging and driving educated decisions from investors.  Conclusion   Timing the markets is an art form that hasn’t been mastered yet. Wise investors are ones that are disciplined and invest regularly despite market ups and downs. The all-time highs are going to be sooner or later surpassed, and that’s us counting on India and its vast potential - this year, this coming year, this decade and beyond.   FAQs What are some best investment options for 2023? Some of the top investment options for the year 2023 are S&P 500 Index Funds, real estate, Dividend Stock Funds, mutual funds, cryptocurrency, High-yield Savings Accounts, etc. What will the stock market be like in 2023? Although the performance of the stock market varies highly due to various factors, most of the stock market forecasts have predicted a moderate improvement for the year 2023. Which sector is expected to boom in 2023? For the year 2023, the govt. is focused on the following sectors - capital goods, manufacturing, defense, railways, sustainability, and public sector banks.

If you’re up for an adventure that not only is going to be adventurous and fun but is also going to add immense value to your future, education abroad is right up your alley. And while there are plenty of options with countries and universities, we wanted to list down our top picks to make your job considerably easier. Here are our top picks for the best places to study overseas! 1. France  Known for its rich cultural heritage and the ever-glowing Eifel, France is also one of the top picks for Indian students wanting to study abroad. The attraction isn’t limited to the glorious scapes that the country has to offer but also universities like the European International University, INSEAD Paris, and HEC Paris.  Photo by Pixabay from Pexels 2. Spain  Everyone in India was wowed by the Spanish nostalgia that ZNMD and Zoya Akhtar brought us. While Spain is a great country to relax and explore on your vacation, it is also growing in popularity in terms of higher education for international students. Photo by Luis Quintero from Pexels The country is home to some world-renowned universities like the University of Barcelona which was established in the 15th century, the Barcelona Graduate School of Economics, IE Business School in Madrid, and more!  3. Australia  The world-down-under welcomes hundreds of thousands of students from all over the world to its major cities like Sydney, Melbourne, and Canberra. The culture is welcoming toward the student community with exciting experiences to offer.  Photo by Patrick McLachlan from Pexels The popular universities include the University of Melbourne which has a populous Indian student community, RMIT University that’s famous for its journalism and media offerings, Monash University which finds its place consistently among the top 100 universities in the world, and many more!  4. Germany  As one of the most attractive education destinations in the world, Germany brags about International students from all over the world. From the public transportation system to the healthcare facilities, everything is made pleasant and convenient for students.  Photo by Leon from Pexels The universities that attract the most students from abroad are public universities like the University of Cologne, Technical University of Berlin, and Ludwig Maximilians University Munich which date back to the 15th century! 5. Canada  Canadian cities find themselves ranked among the most desirable cities in the world for students for their hearty communities as well as scholastic offerings. A progressive culture, plenty to explore, and internationally ranked universities are the reasons why Canada is on the wishlist of most students.  Photo by Burst from Pexels The University of Toronto, The University of British Columbia, and the University of Alberta are counted among the best universities that Canada has to offer.  6. The United States  The home of the brave is also home to some of the best universities in the world. The USA is home to top-ranking colleges like Harvard, Stanford, Princeton, and the entire Ivy League. What the US offers is not restricted to just education but the enormous opportunities that come with it. You can see yourself working your way up to Wall Street or establishing your own business in the business hub of the world.  Photo by Michal Marek from Pexels Each one of the 50 states has a distinguished university to offer and a culture that would enhance your own understanding of the world. One thing is for certain, when there is a break between classes, you’ll always find plenty to explore.  7. The United Kingdom The United Kingdom is home to football, cricket, and brilliant universities that are centuries old and still extremely relevant. University towns adorn the map of England, Wales, and Ireland. The top names include Oxford University, London School of Economics, University of Manchester, University of Edinburgh, and more!  Photo by Pixabay from Pexels While the UK might seemingly be more expensive than the rest of the world, you always can count on affordable education loans because a UK education is an experience that’s well worth it and can set you up for a promising career.  Conclusion  That was our list of the best places to study overseas and you’ve hopefully found a favorite or two from our list. The next steps are important once you’ve narrowed down a country, you’d need counseling to consider your options and choose your best-fit university and more.  EduFund helps students fund their dream education with affordable education loans that do not burden them in the long term. You can fill in this simple form to get a free counseling session from some of the top experts in India to get started on your overseas education dream! TALK TO OUR EXPERTS! FAQs What are some affordable options for countries to study abroad? Some of the cheapest countries to study abroad are Germany, Mexico, Poland, Argentina, South Africa, Malaysia, etc. Which is the best country to study abroad for Indian students? Each student has their preference when it comes to studying abroad. So, one answer or country can't be the choice of all students. However, if we go by data, the top preference for Indian students is usually the US, Canada, Australia, the UK, etc. What are some best countries to study abroad and settle in? Some of the top options to study abroad and settle after that are New Zealand, Spain, Thailand, Canada, etc.