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When you are looking to invest in mutual funds, there is another detail that you need to consider. There are two options that are given to you by the mutual fund – The growth option and the dividend option. Consider an ABC fund that invests in Large-cap funds. When the fund earns profits (when funds’ holdings i.e., the stocks or bonds it has invested into have price appreciation, when those stocks distribute dividends, or when the selling of stocks or bonds provides returns) in the process, it can either distribute it to its investors or it can invest back these gains into the fund.  The growth option In this option, the profits are added back to the investment corpus of the fund (the number of units held remains constant). NAV = Funds Assets - Funds Liabilities / Total Number of Shares The NAV of the fund increases, as the fund's assets, increase with accumulated profits. For example: Consider the ABC fund with a NAV of Rs 100. After a year, if the fund has achieved a profit of 20 per share and if it has not distributed it to its investors, the NAV would be Rs 120. If you had 10 shares of this fund, on selling it after one year you would receive 120*10= Rs 1200. Your cost price was 100*10= Rs 1000. Hence, your gains would be 1200 – 1000 = Rs 200. The dividend option (Dividend payout option) In this option, the fund’s profits are not accumulated or reinvested into the fund. They are distributed to the investors. The gains are distributed either annually or quarterly, and only when the fund makes profits. The fund manager decides the frequency and the number of dividends. Once the dividend is paid out, the NAV of the fund decreases (it always does not decrease by the exact dividend amount as there are other factors that impact the NAV). The number of units held remains constant. For example: If the ABC fund has a NAV of Rs 30. If as an investor, you own 1000 shares of the same - if the fund declares a dividend of Rs 3, you would receive 3*1000 = Rs 3000 as a payout. The NAV of the fund would also decrease to NAV - Dividend. Rs 30 – 3 = Rs 27. Dividend reinvestment In this option, the dividends are declared, but the investors do not receive a cash payout. They are paid in “kind” or with the shares of the fund itself. Hence, as an investor, you would have more shares of the fund. For Example Dividend ReinvestmentRemarksNAV of fund20Initial StageNumber of units held100Dividend Declared2As declared by the Fund managerNAV after dividend Declaration18For the fundDividend Receivable (not paid out)200Investor's EntitlementAdditional Units of Funds that can be purchased with the Dividend                  11.11 Dividend Receivable/New NAVThe final number of units                111.11 Initial + Additional Which fund should you be investing in? There is no one-size-fits-all rule that we can follow. It depends on the investor and his or her requirements. If you would like to receive payments from the fund to fund your expenses, opting for a dividend payout plan would be ideal for you. However, if you are a long-term investor who wants to lock in the funds, and wait to reap the returns, you can opt for the Growth option where the profits are accumulated. In the long run, the Growth option provides a higher return than the dividend option and could be a faster way for wealth accumulation. You can find all the mutual fund options mentioned above on EduFund, a secure platform to invest in the biggest mutual funds in the country.  Things to Look forGrowth OptionDividend PayoutDividend ReinvestmentDividend DeclarationNoYesYesImpact on NAVIncreasesDecreasesDecreasesDividend in your hands (Bank account)NoYesNoUnits heldNo changeNo changeIncreases FAQs Which is better dividend or growth fund? Dividend option for mutual fund is good for investors looking for liquidity. While growth fund is for those who are focused primarily on growth and wish to stay invested for a while. Which option is good growth or IDCW in mutual fund? IDCW is a good option for investors looking for liquidity and growth is a good option for investors looking for wealth generation. How much MF dividend is tax free? If the dividend amount generated from mutual funds is less than Rs. 10 lakh, then investors do not have to pay taxes. If the amount exceeds this limit, the investor has to pay 10% of the total earnings as tax during a particular year. What is disadvantage of growth fund? The biggest disadvantage of growth fund is that they are highly volatile and may fall dramatically. Consult an expert advisor to get the right plan TALK TO AN EXPERT DisclaimerNAVs in the article are only indicative and not exact measures. They are only for representation of the direction of adjustments.

Headquartered in Seoul, South Korea, Mirae Asset Financial Group is one of the key players in the Asian financial market. Its asset management wing, Mirae Asset Global Investments, began its operation in 1997 and has expanded its business globally in a relatively brief period. Mirae Asset Global Investments is a diversified asset manager providing innovative solutions worldwide to help investors achieve their goals in a transforming world. Originating in the backdrop of the Asian currency crisis, Mirae Asset began cautiously, and they focused more on the Korean market initially. Founded by the visionary Hyeon Joo Park, Mirae Asset became the first AMC to present mutual funds to retail investors in 1998.  After consolidating its presence in the South Korean market, Mirae Asset quickly moved to capture the global market. They first established their corporate office in Hong Kong in 2003.  In 2005, they launched the first overseas investment in South Korea, the Mirae Asset Retirement Pension Fund. Two years later, they started their business in India and the UK. The following year they expanded to the USA and Brazil while winning accolades for being the largest investor in the emerging Asian markets. Comparatively, in a short time, they have reached several landmarks.  The Indian wing of the AMC, Mirae Asset Global Investments (India) Ltd, was launched in November 2007, becoming only their second overseas branch after Hong Kong. Though Mirae Asset has been present in the Indian market since 2004, as a foreign institutional investor, they began the domestic business only in 2008. Their growth is based on solid principles and philosophies. They consider open communication with their clients has been helping them stay ahead of the competition while ensuring that they keep the faith granted to them safe. They take responsibility for the client’s future as the core of their values, and this influences the dealings that help them hold on to the client’s trust. At Mirae, investment and growth go hand in hand, which is why they continue to innovate, and envision building a healthier and happier society. Mirae Asset Global Investments, as a global asset manager, has been delivering innovative investment solutions. Mirae Asset Global Investments was founded in Asia and now has a presence in 15 countries, where they take a collaborative approach to managing a fully diversified investment platform. They have 40-plus offices worldwide, and it is the 18th largest Global ETF Manager by AUM. They have clients in 36 countries, and 1,717 products are distributed globally. Since its first fund launch in 1998, they have diversified its lineup by building its global investment network and capabilities. The fund house has 554 USD billion (As of December 31, 2020) total Asset Under Management (AUM). Mirae believes in sustainable investing, which is an investment discipline that aims at considering environmental, social and corporate governance (ESG) criteria to generate a long-term competitive financial return and positive societal impact. The umbrella of sustainable investing covers socially responsible investing, impact investing and ESG Investing.  Powered by a unique perspective and the expertise of their global investment professionals, they adapt to their client's changing needs and deliver fresh solutions across asset classes, providing investors with insightful ways to create portfolios and achieve their investment objectives. They currently invest over $554bn (AUM as of December 31, 2020) on behalf of clients, and this provides them with the scale and expertise to identify opportunities in an evolving world. Mirae Asset global investment in India Mirae Asset India started its journey in India with the establishment of an Asset Management business with a seed capital of USD 50 Mn. It is now recognised as one of the fastest-growing AMCs in India, actively managing/advising on USD 9,269 AUM for its clients (December 31, 2020).  Mirae Asset Global Investments (India) Private Limited (MAGI India) has transferred its asset management business to its wholly-owned subsidiary, Mirae Asset Investment Managers (India) Private Limited (Mirae AMC), as part of an internal restructuring of its business with effect from January 1, 2020.  Accordingly, MAGI India ceased to act as the Asset Management Company (AMC) of Mirae Asset Mutual Fund (MAMF), and Mirae AMC is the AMC of MAMF effective January 1, 2020. Mirae Asset in India has over 21 branches, and the Asset under Management is INR 70,900 Cr with 32 lakh portfolios and a monthly SIP Book of INR574 Cr as of 28th February 2021. Currently, Mirae Asset Mutual Fund is managing 24 Domestic Funds and Advisory of 3 Offshore Funds (11 Equity, 8 Debt, 2 Hybrid, 3 ETF) Mirae Asset Capital Markets (India) Pvt Ltd. with USD 300 Mn seed capital, was established in 2018. Mirae Asset Venture Capital has invested USD 104 Mn in growing Indian start-ups. They have invested USD 41Mn Dedicated Fund in Alternate Investment Fund. Mirae AMC offers 9 Equity funds across diverse market caps and themes in India.  They include Mirae Asset Banking & Financial Services Fund, Mirae Asset Arbitrage Fund, Mirae Asset Midcap Fund, Mirae Asset Focused Fun, Mirae Asset Healthcare Fund, Mirae Asset Tax Saver Fund (ELSS), Mirae Asset Great Consumer Fund, Mirae Asset  Emerging Bluechip Fund, and Mirae Asset Large Cap Fund.  Equity funds endeavour to provide the potential for high growth and returns. They are best suited for investors with a long-term investment horizon. The fund house offers 8 debt funds in India with an AUM of INR 5,602 Cr (as of December 2020). Their debt funds include  Mirae Asset Ultra-short duration fund, Mirae Asset Banking and PSU Debt Fund, Mirae Asset Overnight fund, Mirae Asset Fixed Maturity Plan Series III, Mirae Asset Short Term Fund, Mirae Asset Dynamic Bond Fund and Mirae Asset Savings Fund.  Fixed Income or Debt Funds endeavour to provide the potential for stable and regular returns. They are best suited for investors with a short to the medium-term investment horizon. The fund house offers 2 hybrid funds and 2 FoFs in India with a total AUM of INR 4,273 Cr (as of Dec 2020). The funds include the Mirae Asset ESG Leader Fund Fund, Mirae Asset Equity allocator Fund, Mirae Asset Equity Savings Fund, and Mirae Asset Hybrid Equity Fund.  Hybrid funds invest across two or more asset classes (usually a mix of stocks and bonds). These funds aspire to strike a balance between risk and returns by aiming to generate income in the short run and achieve wealth appreciation in the long run. The fund house has made global ETF footprints in 9 countries with 391 ETFs and an AUM of 54 billion US dollars (Dec 2020.). Based on their deep understanding of the ETF market and global stance, they have been focusing on growing the India ETF market. In India, their ETF has an AUM of INR 469 Cr as of Dec 2020. An Exchange Traded Fund (ETF) is a fund that trades on an exchange, just like a stock and replicates the portfolio and performance of a publically available index. ETFs, offer low-expense investment solutions. Private Equity: Based on their strong inbound deal inflow, the Indian startup ecosystem took strong notice of Mirae Asset, a significant player in VC investments. They have a total of 149 USD million as of Dec 2020.  The latest news is that around six mutual fund houses are seeking SEBI’s permission to offer nine international schemes, and Mirae Asset Mutual Fund is one among them. Mirae Asset Mutual Fund plans to launch:  Mirae Asset Global NextGen Tech Fund of Fund: An open-ended fund of fund scheme predominantly investing in equity exchange-traded funds listed in the US.Benchmark: NASDAQ 100 Total Return Index Mirae Asset US FANG Plus ETF: An open-ended scheme replicating/tracking NYSE FANG+ Total Return Index. Benchmark: NYSE FANG+ Total Return Index For many, it makes sense to invest in stocks of a country where they may be looking at emigrating or sending their child for further studies. Such investments will help cover them from currency fluctuations. It also offers diversification, which is suited for large portfolios. Most advisors also suggest that investors should stick to developed markets like the US for geographic diversification unless the investor had an advisor to guide them. (source: livemint.com) Important information about Mirae Asset Mutual Fund Name of the AMCMirae Asset Investment Managers (India) Private LimitedIncorporation Date30 November 2007SponsorsMirae Asset Global Investments Co. LtdTrusteeMirae Asset Trustee Company Pvt. Ltd.Trustees' NameDr Manoj Vaish- Independent Director Dr Barendra Kumar Bhoi -Independent Director CA.Uttam Prakash Agarwal- Independent Director Mr K Ramasubramanian -Independent Director (Associate)MD/CEOMr Swarup Anand MohantyCIOMr Mahendra Kumar JajooCompliance OfficerMr Ritesh PatelInvestor Service OfficerMr Neelesh SuranaRegistrar and Transfer agentKFIN Technologies Private Limited Unit: Mirae Asset Investment Managers (India) Private Limited (ISIN INF769K01CP4) Karvy Plaza, H. No. 8-2-596, Avenue 4, Street No. 1, Banjara Hills, Hyderabad - 500 034 Andhra Pradesh Phone:(040) 23312454/ 23320751/ 23320752 Fax   (040) 23311968 Email: customercare@karvy.com E-mail: MIRAEMF.customercare@kfintech.comToll-free Number 1800-2090-777Email Addresscustomercare@miraeasset.comRegistered AddressMirae Asset Investment Managers (India) Private Limited. Unit No. 606, 6th Floor, Windsor Bldg, Off CST Road, Kalina,  Santacruz (East), Mumbai - 400 098. Email: customercare@miraeasset.co.in Website: www.miraeassetmf.co.in Ph: 91 - 022 - 6780 0300 Ten top-performing Mirae Asset Mutual fund schemes Mirae Asset Hybrid - Equity Fund (Category Hybrid: Aggressive) Mirae Asset Cash Management Fund (Category - Debt: Liquid) Mirae Asset Emerging Bluechip Fund (Category - Equity: Large & Midcap) Mirae Asset Tax Saver Fund (Category - Equity: ELSS) Mirae Asset Large Cap Fund (Category - Equity: Large Cap) Mirae Asset Great Consumer Fund (Category - Equity: Sectoral/Thematic) Mirae Asset Dynamic Bond Fund (Category - Debt: Dynamic) Mirae Asset Equity Savings Fund (Category - Hybrid: Equity Savings) Mirae Asset Focused Fund (Category – Equity: Multicap) Mirae Asset Short Term Fund (Category - Debt: Short Term) 1. Mirae Asset Hybrid - Equity Fund (Category Hybrid: Aggressive) This is an open-ended hybrid scheme investing predominantly in equity and equity-related instruments. The recommended investment horizon for this fund is 3+ years. The investment is done in a portfolio mix of equity and fixed-income instruments. This scheme is suitable for those looking for wealth creation. Key information Minimum InvestmentINR 5000    Minimum Additional Investment INR 1000Minimum SIP InvestmentINR 1000Entry LoadNil Exit LoadIf redeemed within 1 year (365 days) from the date of allotment: 1%. If redeemed after 1 year (365 days) from the date of allotment: NILReturn Since Inception15.49 % (Growth) (Date of Inception: 29th July 2015).NAVINR  18.504  (April 22, 2021) (Regular Growth) INR 20.372 (April 22, 2021)  (Direct-Growth)AUMINR 4,829 Cr (As on March 31, 2021) 2. Mirae Asset Cash Management Fund (Category - Debt: Liquid) This is an open-ended liquid scheme that invests predominantly in the money market and debt instruments. This fund provides minimal interest rate risk and looks to maintain high portfolio liquidity. The scheme looks to give stable returns with minimal mark to market and credit risk. Investors can invest from one day to six months in this scheme and the fund is predominantly in the money market and debt instruments. This is ideal for investors who want to invest for a very short term and are looking for an alternative to bank accounts/deposits. Key information Minimum InvestmentINR 5000    Minimum Additional Investment INR 1000Minimum SIP InvestmentINR 5000Entry LoadNil Exit LoadExit load of 0.0070% if redeemed within 1 day; 0.0065% if redeemed within 2 days; 0.0060% if redeemed within 3 days; 0.0055% if redeemed within 4 days; 0.0050% if redeemed within 5 days; 0.0045% if redeemed within 6 days.Return Since Inception15.49 % (Growth) (Date of Inception: 12th January 2009).NAVINR  2,147.9966 (April 22, 2021) (Regular Growth) INR 2,175.7905 (April 22, 2021)  (Direct-Growth)AUMINR 3,462 Cr (As on March 31, 2021) 3. Mirae Asset Emerging Bluechip Fund (Category - Equity: Large & Midcap) This is an open-ended equity scheme investing in both large-cap and mid-cap stocks. Investors who are looking to invest for over 3 years and looking for high returns can invest in this fund. Investors should also be ready for the possibility of moderate losses in their investments. The fund invests at least 35% in large-cap stocks and at least 35% in midcap stocks to provide long-term capital appreciation. This fund is suitable for those looking for wealth creation.  Key information Minimum InvestmentINR 5000    Minimum Additional Investment INR 1000Minimum SIP InvestmentINR 5000Entry LoadNil Exit Load1% for redemption within 365 daysReturn Since Inception    20.87% (Regular) (Date of Inception: 9th July 2010). 23.89% (Direct) (Date of Inception:01-Jan-2013)NAVINR  77.374 (April 22, 2021) (Regular Growth) INR 83.586 (April 22, 2021)  (Direct-Growth)AUMINR 16,190 Cr (As on March 31, 2021) 4. Mirae Asset Tax Saver Fund (Category - Equity: ELSS) This is an open-ended equity-linked saving scheme with a statutory lock-in of 3 years and tax benefit. Investors who are looking to invest for over 3 years can opt for this fund. The scheme invests predominantly in equity and equity-related instruments with a 3-year lock-in providing tax benefit and growth of capital. This fund is suitable for those investors looking for wealth creation and tax savings. Key information Minimum InvestmentINR 5000    Minimum Additional Investment INR 500Minimum SIP InvestmentINR 500Entry LoadNil Exit Load1% for redemption within 365 daysIf redeemed after 1 year (365 days) from the date of allotment: NILReturn Since Inception    21.8 (Direct) (Date of Inception: 28th December 2015)NAVINR  24.97 (April 23, 2021) (Regular Growth) INR 26.978 (April 23, 2021)  (Direct Growth)AUMINR 6934 Cr (As on March 31, 2021) 5. Mirae Asset Large Cap Fund (Category - Equity: Large Cap) This is an open-ended equity scheme predominantly investing across large-cap stocks. Investors who are looking to invest for over 3 years can opt for this fund. The scheme invests predominantly in large-cap stocks (top 100 companies by market capitalization). This fund is suitable for those who are looking to invest money for at least 3 plus years and looking for high returns. Key information Minimum InvestmentINR 5000    Minimum Additional Investment INR 1000Minimum SIP InvestmentINR 1000Entry LoadNil Exit Load1% for redemption within 365 daysIf redeemed after 1 year (365 days) from the date of allotment: NILReturn Since Inception  15.27% ( Regular-Growth) (Date of Inception: 4th April 2008)NAVINR  63.979 (April 23, 2021) (Regular Growth) INR 69.091 (April 23, 2021)  (Direct Growth)AUMINR 23762.37 Cr (As on Feb 28, 2021) 6. Mirae Asset Great Consumer Fund (Category - Equity: Sectoral/Thematic) This is an open-ended equity scheme following the consumption theme. Investors who are looking to invest for over 5 years can opt for this fund. The fund invests in companies benefiting directly or indirectly from consumption-led demand. Investors who have advanced knowledge of macro trends and prefer to take selective bets for higher returns compared to other Equity funds are keen to invest in this type of fund. This is a suitable investment for wealth creation. Key information Minimum InvestmentINR 5000    Minimum Additional Investment INR 1000Minimum SIP InvestmentINR 1000Entry LoadNil Exit Load1% for redemption within 365 daysIf redeemed after 1 year (365 days) from the date of allotment: NILReturn Since Inception  15.79% ( Regular-Growth) (Date of Inception: 29th March 2011)NAVINR  43.811 (April 23, 2021) (Regular Growth) INR 49.007 (April 23, 2021)  (Direct Growth)AUMINR 1,174Cr (As on March 31, 2021) 7. Mirae Asset Dynamic Bond Fund (Category - Debt: Dynamic) This is an open-ended dynamic debt scheme investing across duration. Investors who want to invest money for 3 or more years and a longer duration can select this. This scheme is considered less risky compared to equity funds. The fund invests across money market instruments and debt securities including government bonds.  Key information Minimum InvestmentINR 5000    Minimum Additional Investment INR 1000Minimum SIP InvestmentINR 1000Entry LoadNil Exit Load1% for redemption within 365 daysIf redeemed after 1 year (365 days) from the date of allotment: NILReturn Since Inception  7.06% ( Regular-Growth) (Date of Inception: 24th March, 2017)NAVINR 13.2162 (April 23, 2021) (Regular Growth) INR 13.9008 (April 23, 2021)  (Direct-Growth)AUMINR 148Cr (As on March 31, 2021) 8. Mirae Asset Equity Savings Fund (Category - Hybrid: Equity Savings) This is an open-ended scheme investing in equity, arbitrage and debt. Investors who want to invest money for 1 to 3 years can choose this scheme. The fund invests in a mix of equity, arbitrage and debt instruments and is suitable for income generation.  Key information Minimum InvestmentINR 5000    Minimum Additional Investment INR 1000Minimum SIP InvestmentINR 1000Entry LoadNil Exit Load1% for redemption within 365 daysIf redeemed after 1 year (365 days) from the date of allotment: NILReturn Since Inception12.04% ( Regular-Growth) (Date of Inception: 18th December 2018) 13.29% ( Direct-Growth) (Date of Inception: 18th December 2018)NAVINR 13.06 (April 23, 2021) (Regular Growth) INR 13.405 (April 23, 2021)  (Direct-Growth)AUMINR 206 Cr (As on March 31, 2021) 9. Mirae Asset Focused Fund (Category – Equity: Multicap) This is an open-ended equity scheme investing in a maximum of 30 stocks intending to focus on large-cap, mid-cap and small-cap categories (i.e., multi-cap). Investors who have advanced knowledge of macro trends and look for higher returns compared to other equity funds, often choose this. The investment horizon is 5+ years and the fund invests across market caps- large-cap, mid-cap and small-cap and across sectors and themes (maximum 30 stocks). This fund is suitable for wealth creation. Key Information Minimum InvestmentINR 5000    Minimum Additional Investment INR 1000Minimum SIP InvestmentINR 1000Entry LoadNil Exit Load1% for redemption within 365 daysIf redeemed after 1 year (365 days) from the date of allotment: NILReturn Since Inception25.01% ( Regular-Growth) (Date of Inception: 15-May-2019) 27.07% ( Direct-Growth) (Date of Inception: 15-May-2019)NAVINR 15.427 (April 23, 2021) (Regular Growth) INR 15.925 (April 23, 2021)  (Direct-Growth)AUMINR 5,472  Cr (As on March 31, 2021) 10. Mirae Asset Short-Term Fund (Category - Debt: Short Term) This is an open-ended short-term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 1 year to 3 years. Investors who want to invest for 1-3 years and are looking for an alternative to bank deposits can choose this fund. The recommended investment horizon is 1-3 years and the fund invests in debt instruments and money market instruments with a short maturity. This investment is suitable for income generation. Key information Minimum InvestmentINR 5000    Minimum Additional Investment INR 1000Minimum SIP InvestmentINR 1000Entry LoadNil Exit Load1% for redemption within 365 daysIf redeemed after 1 year (365 days) from the date of allotment: NILReturn Since Inception7.33% ( Regular-Growth) (Date of Inception: 16th March 2018) 8.17% ( Direct-Growth) (Date of Inception: 16th March, 2018)NAVINR 12.4572 (April 23, 2021) (Regular Growth) INR 12.7623 (April 23, 2021)  (Direct-Growth)AUMINR 785 Cr (As on March 31, 2021) How can you invest in Mirae Asset Mutual Fund via EduFund? Investing in Mirae Asset Mutual Fund via Edufund is a simple, four-step process.  Step 1 - Download the EduFund App from Google Play Store or Apple App Store and create an online account. Step 2 - Select a Scheme - Browse a wide range of Mirae Asset Mutual Fund schemes and choose the right scheme suiting your financial goals. You may invest in a Systematic Investment Plan (SIP) or a lump sum. The inbuilt recommendation engine suggests the best scheme for your financial objectives. Step 3 - View and Track Your Transaction(s) - The amount you have invested will reflect in your EduFund account within four working days. You can track the Mirae Asset Mutual Fund NAV, account balance, statement, and other information in the app. Alternatively, you can purchase, redeem, or switch Mirae Asset Mutual Fund units. Step 4 - Speak with a Mutual Fund Counsellor - You can connect with a mutual fund consultant to share your goals and get personalised advice.  EduFund uses top-class authentication and encryption technologies to ensure bank-like secured transactions and safeguard your investments.   7 best performing fund managers at Mirae Asset Mutual Fund It is the fund managers who play a prominent role in driving value and generating growth for the investors' money. The following are the seven best-performing fund managers in Mirae AMC whose funds have consistently churned out the best returns.  1. Mr Neelesh Surana - Chief Investment Officer Mr Neelesh brings with him about 24 years of professional experience in financial services, including fund management. He supervises and manages Equity schemes. Prior to this assignment, Neelesh was associated with ASK Investment Managers Pvt Ltd as a Senior Portfolio Manager, where he was managing domestic and offshore portfolios. He manages an AUM of INR 22,136 Cr and 5 schemes 2. Mr Gaurav Misra- Sr Fund Manager-Equity Mr Gaurav Misra has over 23 years of experience in investment management and equity research functions. Prior to this role, he worked as Senior Portfolio Manager with ASK Investment Managers Limited. He has an AUM of INR 28,532 and handles 6 schemes. 3. Mr Harshad Borawake- Head of research and Associate fund manager Mr Borawake's professional experience spans more than 14 years, and his primary responsibility includes Investment Analysis & Research. Prior to this assignment, he was associated with Motilal Oswal Securities as Vice President (Research). He has also been associated with Capmetrics & Risk Solutions as Research Analyst - Equity. His AUM is INR 28,739 Cr, and he manages 9 schemes. 4. Mr Ankit Jain- Fund Manager Mr Jain's professional experience comprises more than 7 years, and his primary responsibility includes Investment Analysis & Fund Management. He has been associated with the AMC as a Research Analyst since September 7, 2015. He was previously associated with Equirus Securities Pvt Ltd and Infosys Ltd. An AUM of INR 20,904 is under him and handles 9 schemes. 5. Mr Vrijesh Kasera - Fund Manager Mr Kasera brings with him professional experience covering more than 10 years. His primary responsibility includes Investment Analysis & Research. Prior to this assignment, he was associated with Axis Capital Ltd., as an Equity Research Analyst. He has also been associated with Edelweiss Broking Ltd. He has an AUM of INR 6,117 and handles 6 schemes. 6. Ms Bharti Sawant - Fund Manager Ms Sawant is an M.S. in Finance (ICFAI Hyderabad), CFA and B.Com. Prior to joining Mirae AMC in September 2013, she was associated with Sushil Finance Securities Pvt. Ltd., Latin Manharlal Securities Pvt. Ltd., and Kabu Shares and Stocking Pvt. Ltd. for Financial Analysis and Research. She manages an AUM of INR 278 Cr and handles 3 schemes. 7. Mr Gaurav Kochar - Fund Manager Mr Kochar has over 6 years of experience as a Research Analyst and Internal Auditor. Before this assignment, Mr Kochar was associated with Ambit Capital and Kotak Mahindra Bank. Why invest in Mirae Asset Mutual Fund?  Mirae Asset Mutual Fund is one of the fastest-growing asset management companies in India. The fund house aims to provide innovative investment solutions to its investors to help achieve their long-term objectives. Powered by unwavering philosophies and global expertise, Mirae Asset Mutual Fund offers advanced and original solutions across asset classes. Whatever a client’s investment needs are, Mirae Asset Mutual Fund has a fund for the investor. Clients can choose long-term or short-term from various equity-oriented or debt-oriented funds. They have a mutual fund to suit every investor's needs. Mirae Asset Mutual Fund offers a diverse range of schemes across various segments like equity funds, debt funds, balanced funds, equity-linked savings schemes (ELSS), etc., to cater to every investor's needs. In the Equity space, they have built our expertise in fundamental bottom-up analysis over the years to identify companies with sustainable competitiveness in their respective markets. This process is differentiated and further enhanced by having on-the-ground research and investment teams in key markets globally. Their unique approach to fixed income offers a wide array of products on a country, regional and global level. Their broad product base not only leverages their on-the-ground teams of fixed-income PMs and analysts but their internally developed IT platform. Their suite employs various solutions, including proprietary quantitative strategies. The fund house aims to maximise long-term growth through income and capital appreciation by investing in income-producing securities. Select EduFund for investing in Mirae Asset Mutual Fund EduFund makes the process of investing in Mirae Asset Mutual Fund convenient. EduFund's experienced consultants give you customised solutions for all your financial goals. You can start investing from a lowly INR 5,000 and grow your capital comfortably. With EduFund, you get the following benefits -  Customised Research-Based Financial Plan -  EduFund's scientific fund tracker screens over 1 lakh data points and 400 financial scenarios to recommend you the best mutual funds.  Customer-Friendly Counsellors Help You Create a Financial Plan - EduFund's counsellors are trained to handle all kinds of queries from customers. They spend as much time with you as you need and resolve all your issues to help you create a robust financial plan. Invest Less, Earn More - Not only the best Indian mutual funds, but EduFund also offers you the facility to invest in US Dollar ETFs and international mutual funds. Use Free Tools - EduFund offers various free tools for its customers, including College Savings Calculator, SIP calculator, etc.  No Technical Expertise Required - You do not need to be an expert in finance to understand which mutual fund is the best for you. EduFund does it for you. Value-Added Benefits - You may get value-added benefits like no commission, free advisory, and nil-hidden charges. Secure Transactions - EduFund is RIA-registered and uses top-class 128-SSL security to enable safe transactions. Special Support for Children's Education - EduFund has a dedicated team of experts who help you fulfil your children's educational goals. FAQs Which is the best Mirae Asset mutual fund? Top-rated Mirae Asset mutual fund: Mirae Asset Hybrid – Equity Fund (Category Hybrid: Aggressive) Mirae Asset Cash Management Fund (Category – Debt: Liquid) Mirae Asset Emerging Bluechip Fund (Category – Equity: Large & Midcap) Mirae Asset Tax Saver Fund (Category – Equity: ELSS) Mirae Asset Large Cap Fund (Category – Equity: Large Cap)  Is Mirae Asset a good investment?   Mirae Asset Global Investments is a diversified asset manager providing innovative solutions worldwide to help investors achieve their goals in a transforming world. They have 40-plus offices worldwide, and it is the 18th largest Global ETF Manager by AUM. They have clients in 36 countries, and 1,717 products are distributed globally.    Mirae Asset Mutual Fund offers a diverse range of schemes across various segments like equity funds, debt funds, balanced funds, equity-linked savings schemes (ELSS), etc., to cater to every investor’s needs. Talk to a financial expert before making any investment decisions. Is Mirae Asset a Chinese company?   Headquartered in Seoul, South Korea, Mirae Asset Financial Group is one of the key players in the Asian financial market. Its asset management wing, Mirae Asset Global Investments, began its operation in 1997 and has expanded its business globally in a relatively brief period.   Originating in the backdrop of the Asian currency crisis, Mirae Asset began cautiously, and they focused more on the Korean market initially. Founded by the visionary Hyeon Joo Park, Mirae Asset became the first AMC to present mutual funds to retail investors in 1998.   Who is the owner of Mirae Asset?   Hyeon Joo Park founded the company. Originating in the backdrop of the Asian currency crisis, Mirae Asset began cautiously, and they focused more on the Korean market initially. Mirae Asset became the first AMC to present mutual funds to retail investors in 1998. 

Is all debt bad debt? This is one of the age-old questions that have been asked for generations. After all, owing money to a bank or financial institution can’t be a good thing, can it? Isn’t it bad to be in debt in the first place? After all, we have all heard the saying, “All debt is bad debt”. However, the truth is far more nuanced than this. Now is a better time than any to understand debt - both good and bad. Debt can be good if it helps you grow your finances in the long run without affecting your ability to pay back the principal amount with interest. However, one needs to take excessive care and precautions when it comes to taking out debt - because it can either lead you to become extremely successful or drive you down a path of bankruptcy. With this in mind, we take a look at the differences between good and bad debt, and some examples of each to shed light on the topic beyond doubt. First, good debt. Good Debt To keep it simple, good debt leaves you better off than before you borrowed the amount. It often leads you down a path of prosperity and growth. There are many purposes one might take out debt that could eventually turn out to be positive for the borrower. For better clarity, let’s look at some examples of good debt -  To Start a Business - To be clear, not all debt taken out to start or grow a business is good debt. If one takes out a business loan and the business ends up failing or closing down, it may well be considered bad debt. With regards to business, debt can be considered good if it helps the borrower establish or grow a successful business that brings financial freedom and allows him/her to pay back the loan easily. To Buy a House - Everyone needs a house to live in. If the borrower takes out a loan to buy a house that ends up appreciating over time, such that the valuation is more than the debt that was originally borrowed, this may well be considered good debt. Student Loans - A better education often unlocks the doors to superior, higher-paying jobs. If you’ve gone ahead and taken out a student loan that improves your skills, and eventually brings you success in your career, this can be considered good debt. Bad Debt Bad debt can ruin one's financial position and leave one struggling to pay it off. The main reason for this is that it doesn’t help you generate more income. Here are some examples of bad debt -  Consumables - Some of the best examples of bad debt can be car/bike loans. While there’s nothing wrong with having a car or a bike as a means of transport, the issue begins with the fact that it is unlikely to bring you more income. Vehicles depreciate with time, meaning they are worth less than what you paid for them. Considering that the borrower also owes interest along with the principal, taking out loans for vehicles can become money pits quickly. Trips & Holidays - It is always said that trips and holidays shouldn’t be bought on a credit card, and there is a good reason for this. Many families today still struggle with paying off holidays they went on years ago, and it’s no surprise. Unless the purpose of the trip could bring you more income, you’re likely to be put in a position of difficulty paying it off over the long term. How does one know if the debt is good or bad? In short, good debt has the potential to earn you significant returns over the long term. For example, taking out debt to start a business that later goes on to be successful can be considered to be good debt. The reason is, that taking out the debt has brought you to a much better financial standing than you were in before. Bad debt is often taken out to fund depreciating liabilities, that don’t earn you any income. These are often harder to pay back and do not leave you in a better financial position than you once were. So as it is clear, the difference between good debt and bad debt is the financial position it puts the borrower in. Loans taken out for consumables that depreciate over time are often bad debts. Debt taken out to produce income and add value to the economy is often considered to be good debt. FAQs What are some examples of good debt? Some examples of good debt are student loans for higher education, mortgage loans to purchase a primary residence, business loans to finance expansion or growth, and loans for investments in income-generating assets such as rental property. What are some examples of bad debt? Some examples of good debt are credit card debt for consumables, personal loans for depreciating assets or luxury items, auto loans, etc. How do you know if a debt is bad? There are various factors to consider before you decide for a debt to be bad. If the debt - doesn't increase in value over time; has high interest rates; doesn't generate income; finances a depreciating asset (like a car), etc, then it can be considered bad debt.

University admission interviews can often seem daunting and intimidating as a young student that’s about to enroll.”What questions will they ask?” “What if I answer wrong?” Don’t worry, university interviews are often not half as bad as you imagine. In fact, they’re a great way for you to touch base with those already working at the university and set expectations for what you will get out of the course, in terms of growth and future prospects.  To help you navigate these questions and come out on top, here are some of the most common interview questions asked during university admissions -  1. Why have you chosen this university? This isn’t a trick question or an opportunity for the candidate to appease the interviewers. Instead, it’s a genuine chance to explain why you chose the specific university you’re interviewing for, and what makes it special as compared to the other choices out there. It could be as simple as the fact that it is relatively close to where you reside, or because they offer a specific program that you’re looking for. Either way, make sure to be open and honest about the reason why you have chosen this particular university, and you should be good to go! 2. How did you enjoy high school? Interviewers ask this question for many reasons. Firstly, they would like to get to know a little background about you and how you fared during high school, from your point of view. Secondly, they are looking to hear about your general perception of educational institutions to get an idea of how you might perceive universities in the future. Remember to be careful about your criticism, and definitely avoid bad-mouthing your high school, as these are red flags to university admission interviewers. 3. Tell me about your strengths and weaknesses This is an interesting question that can reveal a lot about you. Avoid the worn-out, “I’m a perfectionist” and “I work too hard”, answers that the interviewers have heard before. Instead, choose, to be honest about your weaknesses and come forward with a truthful answer like, “I struggle with deadlines”. They will appreciate it much more, and you won’t feel like you’ve had to lie in an interview. 4. Do you have a role model? Here’s an interesting question that will allow you to speak more about the people you look up to. Maybe you’re pursuing a literature course and greatly look up to a renowned author. This is your chance to show the interviewer that you have role models in line with your aspirations, making it far more likely that you will complete the course and pursue a career in your chosen field. 5. What are your goals? This is your chance to be open and honest with the university about what you aim to achieve with your time there. Remember to leave nothing on the table and be clear about your dreams and goals, no matter how outlandish they may be. You never know how many candidates before you might have shared similar goals as you have now. You might even hear interesting accounts of past alumni that have already achieved the goals that you currently aspire to. 6. Where do you see yourself on completion of this course? This a very important question that you can definitely expect to be asked during your interview. With this question, interviewers are looking to find out what your endgame is, and how you plan to progress after you’ve graduated from the university. This is where they will get a chance to set your expectations straight if needed and find out how motivated to complete the course you are. Also, they’re looking to understand whether or not you are trying to pursue a career in a field related to the course of your study. 7. How do you wish to expand your skills with this course? This question might be a little more challenging to answer, considering you are likely a candidate that is just starting with the university. However, it is an opportunity for the interviewer to understand how you wish to grow and learn during your university study. Feel free, to be honest, and speak about the things that you would like to improve about yourself, and try and tie this into any weaknesses you might have mentioned about yourself earlier as a way to negate them. Conclusion While Universities don’t expect you to have all the answers upfront, make sure you do your due diligence by researching topics related to these questions. You want to come across as someone who is well prepared and informed about the university and their own goals and aspirations about the course you’re enrolling into. The more knowledgeable you appear, the more likely you are to ace the interview and land a seat in the university of your dreams. And to get you better prepared, EduFund is here to bring you the best education counselors in the country. They do their best to get you confident about the interview along with helping you with all the insider knowledge to give you an edge. FAQs What are some good questions that I can ask a university during admissions? You can ask questions about the diversity on the college campus; its achievements in sports, science, or any other field of your interest; the number of graduates attending the college, the school rating, their anti-ragging policies, etc. How can I impress a university during admissions? To impress a university during admissions, you have to be prepared. Research your course and school well; compile all the relevant documents well; show your previous work/ internship/ volunteering experience; have a sound statement of purpose; show originality in your application; add or improve on your relevant skills, etc. What do universities look for in a student? The answer varies from university to university. However, there are a few characteristics that every university wants in its students. Universities want students who either excel or show signs of excelling in their fields. They look for students who are dedicated to their field of education and show great promise. For a detailed answer, it would be a good idea to ask this question to your interviewer at the end of the interview.

Stressed about going abroad to study at your dream college? Wondering how to better plan your education abroad? Then, take a deep breath and let all the negativity flow out. Next, formulate a plan to go about the whole process in the most systematic way possible. There are a few intrinsic steps involved in this journey. We have made a list right here that can help you set your goals right and achieve them one at a time.   Top 10 Ways to plan your education abroad 1. A Basic plan  Every journey begins with a basic course of action. Sometimes journeys appear more difficult than they are and this is often the case with education abroad. Charting out what you want to do demystifies the complications, it offers you clarity on what you must do next and how much time you have to do it. When global education is involved, usually the course of action starts with deciding which part of the world you want to study. The following points can help you form a well-structured plan before you get started.  2. Looking up universities  Once you decide which places you are interested in, the next step is to make a list of universities and colleges. Make sure to put down the names of institutions that have crossed your mind. In fact, you can prepare separate priority lists - one for your dream colleges and another for institutions that can offer your desired course or potential research supervisor. This way, through newer shortlists you can reach the final list as you do more research on each college.  3. Time management  While noting down the names of the universities and colleges, make sure to also look up their application deadlines. Knowing the deadlines for submitting applications is what will give an ultimate edge to your course of action. Now you will have an idea about the approximate number of days you have in your hands to prep yourself. Usually, the date for submission of applications comes under the same month. Not knowing the deadlines is what creates all the stress and confusion. But once you are aware of them, you can be confident and focus on making optimum use of it in gathering resources, and money and developing your skills.   4. Savings  Going abroad is a costly affair. Knowing how much time you have on your hands also lets you calculate how much money you can save. The income-expenditure ratio also becomes important in deciding how much money you can put away as savings. Start saving as soon as you can. Even if you are not sure about going abroad for your higher education, it is still advisable to put away money in general for education. On deciding to pursue a global education, make note of the tuition fee, cost of living, and other miscellaneous expenses that might be incurred during your stay there. This gives you clarity on how much you will need to save.  5. Investment  Be it education or any other significant event in your life, investing is always an improvement upon saving money. Savings do not generate more wealth, investments do. You can look up different mutual fund schemes to know which one will be the best for you. Fixed deposits have a certain rate of interest, but mutual fund schemes usually offer more than that. You are also advised to start investing in foreign exchange stocks like US stocks to make up for the depreciating value of the Indian currency and the subsequent rise in the cost of pursuing education abroad.   6. Building Credit  Another financial aspect that is quite understated is the importance of building credit. Building and maintaining a good credit score can go a long way in availing you of the best deals in loans with negotiable rates of interest. It is also crucial to start young and early, for example, with education loans or simply with credit cards. When the time comes to go abroad, your impressive credit score will make you qualified for the student loan that can support your global education.    7. Scholarships  An important thing you are required to look up while checking out different institutions is the scholarships that apply to you. In a lot of cases, deserving candidates can avail themselves of different scholarships that pay their tuition fee or at least a considerable part of it. In the case of research, you might enjoy deductions on the tuition fee from the institution itself, alongside receiving a stipend. Read up thoroughly about these international scholarships and the criteria or qualifications required to avail of them.  8. Building Contacts  The process of building contacts is something you should ideally get started with while you are in the stage of planning the basic course of action. Taking the advice of peers or seniors who have already been through this process can offer perspective and useful information to ease up the journey for you. Later, you might have to build contacts with the faculty member(s) of certain institutions that you are aiming to get into. This is usually the case for research scholars and falls under the application procedure.  9. Skill Development  Skill Development takes into account prepping for the final application submission as well as becoming sharper at the subject you are going to pursue. Deciding to pursue global education is sometimes synonymous with entering tough competition. Make sure you are doing your best in presenting yourself to the world as a deserving candidate. Skill development also takes into account clearing the examinations that are often recommended or mandated by some institutions as proof of your worthiness. These include SAT, GMAT, GRE, TOEFL, IELTS, and so on.    10. Preparing for Applications & Interviews  Last comes the main procedure - that of submitting applications and attending interviews. As scary as it sounds, once you are done with all of the above, you will find yourself to be more at peace and confident to brave it all. Institutions might require you to submit essays or answer questions alongside the submission of the SOP and the main application. There might be interviews on a group or individual basis. Find out about these things beforehand so that you can be well-prepared when the time comes.    Conclusion The correct way to simplify a complicated procedure is to break it down into small parts and set short-term goals that make it look doable. The thought of pursuing global education can make you anxious at first but with the right plan, you can ace it.  EduFund is your partner through and through, whether it is guidance that you need or student loans, we're here for you. FAQs How can I make my application better for studying abroad? Start early. Be honest with your details, especially with your SOP. Show your involvement in extra-curricular activities, community service, and work experience. Add letters of recommendation from your teachers, counselors, employers, etc. How do I motivate myself to work on a better plan for education abroad? You can motivate yourself by constantly reminding yourself of the great educational and career opportunities that await you after you complete your studies. You'll have a whole new experience of living in a different country, miles away from home. You'll be able to learn great things about different cultures, share your culture with others, make new friends, learn a new language, and find great employment opportunities. What skills do I need to develop to study abroad? In order to not only get admission abroad but also successfully manage to thrive there, you must develop the following skills - Independence, adaptability, communication skills, cultural awareness, budgeting, time management, networking, flexibility, etc.

Why do we invest in mutual funds? The fairly obvious answer would be to earn returns on our investment and to have enough corpus for our future goals. We need tangible numbers on our screens that give us a good night’s sleep that we have invested in the right fund. However, there are multiple measures for the returns earned by the mutual fund, and we see multiple percentage numbers flashing on our screens. These measures are explained with examples in the following paragraphs - 1. Absolute Returns This represents the growth of your investment in absolute terms without considering the time period. For example, if you had invested Rs 10,000 in a mutual fund and it grows to Rs 15,000, the gain earned would be Rs 5000. Absolute returns would be Rs 5000/Rs 10,000 = 50%. Even if your investments grew to Rs 15,000 in 10 years the absolute returns would still be 50%. 2. Annualised Returns (also known as CAGR) This measures the increment in the value of your investment on a yearly basis. The effect of compounding is included in this return (Compounding in simple terms is earning returns on the profits earned from your investment). For example, if the initial investment is Rs 10,000 and the value of the investment after 5 years is Rs 15000, then the annualized returns would be 8.4% and if the time period was 3 years, the returns would be 14.5%. This measure takes the time period into consideration and gives a measure of y-o-y returns on your investment in the fund. 3. Annual Returns This is computed by considering the return earned by the scheme from January 1st (first day of business) to December 31st (Last business working day). If the NAV of a fund was Rs 100 on January 1st and the NAV on December 31st was 120, the gain would be Rs 20 and the annual return would be 20%. This is the most simplistic measure which is used for communication with the investor. Market conditions play a significant role in the returns earned by mutual funds. Hence, it is advisable to compare annual returns across time periods with respect to the category average or the benchmark as declared by the fund. 4. Point-to-Point Returns This measures the annualized returns between two points in a given time period. For example, if you would want to look at the performance of a fund in the pre-Covid years i.e., 2017-2019, one would consider the point-to-point return to compute the same. The NAVs at the start and end dates are required to compute these returns. 5. Total Returns Initial ValuesNAV Initial50Initial Investment10000Units Purchased = Investment/NAV200After 1 yearNAV 52Value of investment = Units * NAV10400Capital Gains400Assuming a Dividend is declared by the fund in this 1 yearDividend Declared/ unit2Dividend earned (Units * Dividend/Unit)400Total Returns800Total Return % (Total Return/Initial Investment)8% Total return includes the returns earned from capital gains and dividends and is expressed as a percentage of the initial amount invested. Consider that you had invested Rs 10,000 into a fund whose NAV was Rs 50. Total Returns % = Capital Gains + Dividend earned / Initial Investment Here, the total return earned would be 8%. 6. Trailing Returns It is the annualized return of the period that ends on the date of calculation (or today or the latest NAV). Trailing returns of 1, 3, 5 or 10 years (etc) can be calculated. For example, a 1-year trailing return from today (27th Feb 2020) would be calculated by taking the latest NAV and the NAV of the fund 1 year ago. This measure is used by most of the mutual funds and pages which analyze the past performance of the funds.  Initial NAV (27th Feb 2018)40Final NAV (27th Feb 2021)70Years3Returns 20.5% For example, if the NAV of a fund today is Rs 70 and the NAV of the fund 3 years ago was Rs 40, the trailing 3-year return would be 20.5%. Returns = [Final NAV / Initial NAV] (1/Years) - 1 As an investor, this measure aids in screening the fund's performance and analyzing the consistency of the fund manager in providing the returns to their pool of investors. However, one should note that these returns could offer a biased perspective as they are based on relative market conditions – current vs past conditions. Hence, an investor should consider 3,5, and 10 years to understand the consistency in earnings and the fund's ability to sail over market tides. In bull markets, where there is high optimism in the market, the trailing returns are high, as the Final NAV would be soaring high, whereas, in bear markets, these returns would be on the low. 7. Rolling Returns These are annualized returns (CAGR) but are computed using overlapping periods. They give the measure of the growth of an n-year return over a period of m years.  For example, if you would like to invest in an equity mutual fund for 5 years, you would look at the data in 5-year blocks and compute the 5-year return over a 10-year period (say). As shown in the table below, we have considered a period from 2005-2020 to calculate the 5-year rolling returns (n=5, m=20). Aligning with our objective, to calculate the return of 2010, we consider the NAV that was 5 years ago which is 2005. The exercise is performed for all the years to obtain the range of returns that the fund has given to the investors. One can also calculate the Rolling Return Average, by calculating the average of all the returns computed in the previous step = 7.4% (in this example). Yearly DataNAV5years agoNAVReturns (CAGR)01-01-201010001-01-2005785.1%01-01-201110301-01-2006805.2%01-01-201211001-01-2007874.8%01-01-201312001-01-2008905.9%01-01-201415001-01-2009959.6%01-01-201516101-01-201010010.0%01-01-201617201-01-201110310.8%01-01-201719001-01-201211011.6%01-01-201819801-01-201312010.5%01-01-201921001-01-20141507.0%01-01-202020001-01-20151614.4%01-01-202120801-01-20161723.9% These can be calculated on a daily/weekly/monthly basis till the latest NAV for a fixed period of time. It gives a more accurate picture of the fund’s performance in various market conditions, eliminating the bias that could be associated with calculating the return at a fixed point in time.  8. SIP Returns All the above measures are suitable for lumpsum investing where one considers the returns between two points. However, in the case of SIPs, there is a systematic flow of amounts into the fund at different points in time. This return can be calculated using the Internal Rate of Return (IRR), which is a financial metric used to compute the return of a series of cash inflows and outflows. Conclusion: The measures for calculating returns have been highlighted above which are to be used in conjunction with the objective to obtain the accurate measurement of the performance. You could get started with your investment journey by analyzing funds on the EduFund app or this website

Parenting is a responsibility, and there are no two ways about it. The education and experiences of your child are primary to the kind of person your child becomes. Their success, wisdom, and understanding of the world are dependent on education. It begins with their schooling and continues to rely heavily on higher education and beyond. When something is crucial to the well-being of your child, you ought to plan and plan early.  Education planning necessities  An education plan for your child has two essentials. One is the decision-making process that involves choosing the right school, college, and university, and the second is the financial aspect of funding the desired degrees. The decisions your child takes (with your consult) about studying at a particular university are driven by research and counseling - and they’re mostly left to the last couple of years before university.  The finances, however, require wise long-term investments and insight. To realize this undertaking, we have to first calculate the many expenses of higher education and the eventual corpus you would need to fund your child’s dreams.  Calculate costs better with helpful tools Calculating the cost of college education ten to fifteen years in the future might feel burdensome, so it is better to use tools like the education cost calculator on the EduFund app. The smart calculator accounts for education inflation - the increase in tuition and living expenses year on year.  Accounting for education inflation Education inflation can be understood with a simple example. An MBA from a reputed institution in India like IIM Bangalore cost around 10 lacs in 2010, and now the same exact degree will cost about 23 lacs in 2021. The education inflation in the last decade in India was more than double the general inflation. Education inflation across the world has been similar and is currently on the rise.  On the EduFund app, you just have to enter the details of your child, possible universities they’d want to go to and the year they’d begin university. The calculator will give you an accurate estimate of the amount you would need when your child is ready for college. This becomes your north star, your investment goal for your child’s dream education.  Investment advice from the wise Once you have the goal calculated, the next step is to start an investment plan where you invest a certain amount every month (the EduFund calculator will give you this amount as well) into an investment vehicle that can give you good returns. If you’re new to investing, it would be wise to get in touch with a wealth advisor who can guide you.  If you have plans for your child to study at the top universities in the world, a wealth advisor would encourage you to diversify your portfolio by investing in the US markets.  Advantages of investing in US markets  Ever since Indian independence, the rupee has gradually depreciated compared to the US dollar. This is the reason why exchange rates remain a nightmare even when we’re thinking of a small vacation to the US or Europe. Now imagine studying there for a few years and those expenses, and the burden that exchange rates could then be.  The solution? Invest in the US markets and save in dollars in order to spend in dollars.  The US markets are mature, with some of their large-cap companies holding a valuation of over a trillion dollars. Additionally, the US indices like the S&P 500 have delivered consistently good returns for over six decades.   1. Geographical diversification  If there is one investment lesson that most of us are familiar with, it has to be not putting all your eggs in one basket. This lesson doesn’t just end with investing in multiple companies in diverse fields but also includes investing in geographically diverse markets.  Often, the Indian market experiences ups and downs based on regional factors that include politics, regime changes, natural disasters, and more. A portfolio that isn’t geographically diversified would be heavily affected by these.  To counter this, investing in the US markets is an obvious solution as the market sentiments that affect the Indian markets rarely have an effect on the US markets.  2. More than one way to earn returns When you start investing for your child’s education in the US markets, you’re gaining in two ways - first by the dividends and capital appreciation, and second, with the depreciation trend of the rupee. You have a strong possibility of getting more rupees for every dollar in the long term.  With so many obvious advantages to look forward to, the only hardships stopping Indian parents from investing in the US were the lack of accessibility and the long paperwork. Thankfully now, platforms like EduFund make this process simple and convenient. No paperwork. No long waiting periods. No confusion.  FAQs Where can I invest money in education? There are many ways to invest in education. From mutual funds to the US market, the choices are unlimited. Depending on your risk appetite and time horizon, you can pick the best funds and investment options with the help of a financial advisor. With the cost of education rising, mutual funds, our US stocks, and ETFs are great investment choices for parents who have over 10 years of investment ahead of them. How to invest in US markets? As an Indian investor, you can invest in US markets with the help of a foreign or domestic broker or directly. Where should I invest money to get good returns for students? To fetch good returns, the best investment options are investing in mutual funds, the US market via stocks and ETFs, PPF, and government programs like Sukanya Samriddhi Program. Conclusion Someone wise once said that an investment in education pays the best dividends. We understand that every parent wants their child to have more opportunities than they did, and greater resources at their disposal than they did. With time by your side, some discipline, and the power compounding, it is easily possible. Consult an expert advisor to get the right plan TALK TO AN EXPERT

The Indian stock market offers plenty but if you’re looking for geographical diversification in your portfolio, you might want to look beyond it. The United States is the biggest market in the world and a great attraction for investors the world over. Investing in the US market means an opportunity to invest in the biggest companies in the world, and that includes the likes of Google, Facebook, Amazon, Apple, and more.  Now when something has so many great things to offer, why doesn’t everyone invest in the US? The truth is that investing in the US is much easier now than it ever was, but there are some misconceptions among Indians that hinder this route. The biggest of them are the worries of taxation upon the returns.  Let’s dive deeper into how taxation works when Indian citizens invest in the US stock market, either through stocks or exchange-traded funds.  Tax implications for investors  There are just two types of taxes levied on investors in this arena - capital gains tax and tax on dividends. Let’s understand both these taxes.  1. Capital Gains Tax  This is the tax paid on the appreciation of your asset over a period of time. Let’s say you bought a stock for 100$ and sold it after some time for 150$, capital gains tax is levied on the appreciation of 50$ on the stock.An Indian Investor does not have to pay any capital appreciation tax in the US. The taxes on this are levied in India, depending on whether it is long-term capital gains or short-term capital gains. a) Long Term Capital Gains (LTCG) If you have held an asset such as a stock or ETF for 24 months or more before selling it, you have to pay 20% as long-term capital gains tax, along with other applicable surcharges and fees.  b) Short Term Capital Gains (STCG) If you have sold a financial asset in less than 24 months for a profit, you add these gains to your income and pay taxes based on your income tax slabs. The important thing to remember is 24 months is the duration that separates long-term and short-term capital gains.  2. Tax on dividends  Dividends are another way that investors make money. The taxation on dividends, when you invest in the US, is fairly simple. The tax on dividends for Indian investors in the US is 25%, which is lower than the tax rate for US citizens. This is due to a treaty signed by India and the US to encourage investments from India to the US and vice versa.Let’s understand this with an example. If you have received $ 1000 as dividends from an investment in the US, the amount you receive after the tax deduction is $ 750. Now what gets most investors worried is if they have to pay taxes again in India on the 750$. The good news is that you don’t.India and the US have signed a DTAA (Double Tax Avoidance Agreement) which ensures that you are not paying double taxes. So, the tax you’d have to pay in India is not on the $ 750 you received after deductions but the $ 1000 you received as dividends, and the $ 250 that you’ve already paid as tax is accounted as tax paid on the amount. You only have to pay more if your tax slab exceeds 25%.  Invest in the US stock market with EduFund  You can now just download the EduFund app and create an account to start investing in the US. The account opening process is simple and the charges are zero you can get started with FAANG in your portfolio and have it geographically diversified! Invest in US Stocks

Do you want to get into the stock market? Maybe because you saw your friend make quite a bit of money betting on some trendy things like Ethereum or GameStop. Or maybe you think mutual funds could help you raise funds for your child’s education plans. Different financial goals require different strategies and approaches. If you are new to the stock market, it is important for you to know the basics, like the difference between investing and trading. Everything looks too complicated as a rookie investor and we get it. Let us try and simplify some things for you. What is investing? An investment is when you allocate money somewhere with the intention of compounding it in the future. Investment is a tool of wealth generation. Basically, when you invest money into something, like stocks and bonds, mutual funds, or real estate, you do it with the idea of making a profit in the long term. This profit usually comes from the value or price of your asset increasing over time. If you have invested money into a stock, for example, you get a profit when the price of the stock increases over time.  Investment is an excellent, mostly passive way of wealth generation. For the long term, especially when you have goals for child investment like education plans, sending your child to study abroad, etc. What is trading? Trading in the stock market is exactly what it sounds like, you trade stocks. When you trade in stocks, you buy stocks like any other goods or commodities and sell them for a profit. Traders deal in stock with the intention of short-term profit generation. They don’t hold their assets for a long time, unlike investors who can stay invested in the same asset for years. Traders can sell their stock within months, weeks, days, or even minutes. As such traders have to have a really good understanding of the pulse of the market and where a stock will go in the short-term future.  Image by Anna Nekhrashevic on Pexels Trading takes a little more active effort than investing because you need to be on top of the situation in the market at all times and buy and sell at the right time. As such trading is ideal for making fast money in the short term. 1. Difference in timelines Trading depends on changes in the market that happen over the course of a short period. This means that they cannot plan for the long term. A stock that is predicted to shoot up within the coming month, likely will not continue to shoot up over the next few years. Rather it is more likely to fall or plateau. A trader tries to predict the optimal timeline to buy and then sell the stock within this period of time. But they cannot stay invested in the stock for the long term as it would cause losses.  This means that the timeline of holding a stock for a trader is much shorter. Trading depends on buying low and selling high in the short term. In contrast, investors tend to buy and hold. Investment relies on the price of the asset slowly and stably appreciating over time. Trendy and unpredictable stocks or other assets do not make good investments. One cannot guarantee the value of these stocks over a long-term period. This is why investors usually choose relatively stable and reliable securities or invest in mutual funds and ETFs that are managed by professionals.  Investment requires having patience and confidence in your stock and holding it for a long time. Investors don’t let short-term changes in the market bother them and focus on increasing value over the long term.  2. Difference in risk Putting money in the stock markets always carries risk. You are at the mercy of myriad different and unpredictable factors that may affect the price of your investments.  Trading typically carries more risk than investment. When you want to generate wealth or make a profit over a relatively short timescale, you need to take more risks. This means investing in stocks that may behave unpredictably. Making quick, short-term financial decisions on limited information is intrinsic to trading. This is another factor that makes trading riskier. Investment also carries risk, however, this risk is typically lower than with trading. When you are an investor, it is important for you to lower risk. You can do this by diversifying your portfolio to include both higher-risk, more lucrative securities as well as safe, low-risk investments. This is called balancing your portfolio.  Another way of becoming an investor, especially when you don't have a lot of capital or expertise is to invest with an AMC (Asset Management Company). AMCs lets you invest in mutual funds and ETFs which are structured, diversified, and professionally managed basket securities. These funds let you have a balanced, secure portfolio which is ideal for investments.  3. Difference in goals Investors and traders tend to have different goals. Since traders are looking to make money fast rather than over the course of years, their goals tend to be more short-term. Additionally, trading is risky. To ensure high-profit margins in a relatively short time, traders must invest in unpredictable stocks. This does not mean that traders don’t have long-term goals. However, they usually don’t plan to achieve their long-term goals through trading alone. Sometimes you have high-stakes goals. You cannot leave your child’s education plans or study abroad dreams to the mercy of unpredictable stocks on the market. For a goal like this, a long-term, reliable strategy for wealth generation is required. For goals like these, you need to be an investor. Conclusion While trading and investing both involve buying and selling securities on the stock market, they carry entirely different risks and involve different approaches and strategies. Keep in mind that there is no reason for you to choose. You can dabble in trading while also keeping safe investments on hand. It all depends on your financial goals and long-term future plans. In this day and age, with rising inflation, a little extra cash never hurts. But at the same time, be careful while taking risks on the stock market, especially if you are a parent. Secure your and your children’s future and education plans through solid investments. Keep the risks in mind when you are trading and try to start slow instead of taking big risks with large amounts of money.  A good financial advisor can be a good investment. You should also put in the effort to try and understand the basics of investment and financial planning. Educating yourself is always a good investment. Expertise and knowledge are investments you will never lose. FAQs Will I earn more money through investing or trading? As an investor, based on your risk appetite, you can take advantage of 15-20% yearly returns. But, as a trader, if you have great experience and analytical skills, you can earn those same returns in just a week. But, it must be remembered that 'higher the returns, greater the risk'. Which is riskier - trading or investing? Although both options come with their own risk, trading can be considered significantly riskier than investing. How can I become an investor? There are many ways for you to become an investor. The easiest way is to download the Edufund app, register yourself, and complete your KYC verification. The next step would be exploring various investment options at the top AMCs and then start investing! TALK TO AN EXPERT

It is becoming increasingly obvious these days that investment is the best way for most people to achieve their financial goals. Costs of education are rising and the advantages of going to study abroad are becoming more and more obvious. For many people, these rising costs of education have necessitated a changed approach to finances. A good investment strategy and portfolio are clearly the way to go. However, many beginner investors do not know enough about investments and how or where to invest.  In this guide, we cover index funds: what they are, how they work, who should invest in them, and things to consider. If you have been thinking about investing in mutual funds or ETFs, read on to know more.  What is an Index fund? Index funds are a type of passively managed, equity funds. As the name suggests, these funds have a portfolio that is made to imitate a financial index, like BSE Sensex, NSE Nifty, etc. Both ETFs and mutual funds can be index funds. Returns from an index fund, typically mirror the growth of the index that they are tracking. How does an Index fund work? An index fund works by tracking a financial index. A financial index is a measure of the stock market or a subset of the stock market. An index fund consists of the same stocks that comprise a certain index, in the same proportions. So if, for example, a particular index fund is tracking Nifty, its portfolio will have the same 50 stocks that comprise Nifty. Then, the performance of the fund will depend on the performance of Nifty.  Unlike an actively managed fund, index funds do not have a team of analysts and experts constantly researching the market and creating strategies. The fund manager only ensures that the fund tracks its respective index as closely as possible. Things to consider when investing in Index funds 1. Risks and Returns Index funds are passively managed and track a financial index. This means that they are less volatile than other equity funds that are actively managed and hence, less risky. This is because actively managed funds strive to beat their benchmark but index funds track particular financial indices and try to remain as close to the benchmark as possible. This means the returns of an index fund usually replicate the performance of the index. This makes these funds reliable and lucrative during a market rally but less so during a slump.  One thing to keep in mind, however, is the tracking error. Most index funds do not replicate their respective indices exactly. There is a small deviation which is called a tracking error. You should always choose a fund with a low tracking error to reduce risk.  2. Investment timeline and goals Since index funds are considered lower-risk funds, they are suitable for investors looking to make long-term, passive, investments. These can be investments made for the future education plans of a very young child or retirement plans. With long-term investment windows, any short-term fluctuations can be balanced out or averaged. But if your goals are less long-term, for example, education plans for an older child, you should consider investing in a more actively managed fund. A good financial advisory service can help you make these decisions. 3. Investment costs and fees Index funds are passively managed. Since these funds track indices and don’t require active management, they incur lesser fees. An actively managed fund has to pay for analysts and experts to do research and create investment strategies. A passively managed fund does not have to do that. They have lower operating and management fees, transaction charges, etc. This means that these funds have a lower expense ratio ( the percentage of your total investment that you have to pay to the fund as management fees and other charges). 4. Taxation Index funds are subject to dividends distribution tax (DDT) and capital gains tax. DDT is deducted at source when the fund pays its dividends to stakeholders. DDT is generally applied at a rate of 10%. Capital gains tax is the tax levied on the capital gains made when you redeem units of your index fund. The amount of tax depends on your holding period. If you held the units for less than a year, then you will have to pay short-term capital gains tax (STCG) which is 15%. Capital gains from a holding period of above one year are considered long-term capital gains (LTCG) and are taxed at 10%. LTCG under Rs.1 Lakh is not taxable. Who should invest in an Index fund? Index funds are ideal for investors who want to invest in the equities market but do not want to take a lot of risks. If you are open to a long-term investment with relatively low but fairly predictable results, index funds can be a good option for you.  Keep in mind that index funds will follow the index and not give you any market-beating returns. If you are looking to make investments for your child’s education plans, you may want to stick to index funds for the stability they offer. However, a much better option would be a diversified investment portfolio with index funds as one of the components.  Education plans are rather high-stakes goals and so it is understandable to want to go safe. However, education, especially if you plan to study abroad, is also expensive. Actively managed equity funds tend to have generally higher returns. Keeping both in your portfolio can help you get the best of both worlds, general stability as well as good returns. Conclusion Index funds are a good and reliable way of passive investment for people who do not have the time to constantly monitor and manage their portfolios. They are especially useful when the markets are doing well and financial indices are on a general rise. However, recession and economic instability can cause a slump and bring down the value of index funds. To offset such eventualities, it is important to diversify your portfolio.  Financial planning, after all, requires active effort and involvement. The securities and assets you invest in should be properly aligned with your financial goals. If you lack the know-how or expertise to figure these out yourself, you can always consult a financial planner or other such services. For specific goals like education plans, you can hire specialized financial planning experts like EduFund. A good investor understands his investments and takes risks in accordance with his goals and his capacity. Therefore, putting in the time to figure out what kind of investor you are and what kinds of investments are best for you, is always a worthwhile endeavor. FAQs What are some best index funds? Some of the best index funds include IDFC Nifty 50 Index Direct Plan-Growth, Nippon India Index Fund S&P BSE Sensex Plan Direct-Growth, UTI Nifty 50 Index Fund, etc. Is it good to invest in index funds? Index funds provide you with low-cost investment methods. They can bring you better gains than fund managers do. Do index funds pay dividends? Since regulations require it, Index funds do pay dividends in most cases. TALK TO AN EXPERT

As a parent, no doubt you want the best for your kids. Global education can open doors and create opportunities for your child like nothing else can. However, the expenses involved in going to study abroad can be intimidating and discouraging for many people. Education loans are always an option, but debt is a big long-term liability and is not exactly an exciting prospect, is it? So, how can you raise funds for your child’s education without having to resort to education loans and other forms of debt? Well, that requires a bit of foresight and planning.  Saving is always an option but is it the best option? After all, you can save what you have but you cannot use your savings to generate more wealth. And with rising inflation, investing may be the better option in the long run. How is investing different from saving? Saving money is not a very complicated concept. We all save money, either for future purchases, emergencies, or other causes. Saving money typically involves putting aside money from your income in a safe place, like a bank account or a locker. Savings can accrue a small amount of interest, especially when you are using a bank account. However, in general, your savings do not compound or generate profit through interest or appreciation in any significant way. Investing money involves buying and holding an asset for a period of time with the intention of generating profits from it. When you invest money in the stock market, in bonds, or in real estate or jewelry, you do it with the intention of eventually selling the asset after a period of time and gaining profit. This profit is gained from the value of your assets changing and appreciating over a period of time due to inflation and/or other factors. 1. Investment generates wealth This is an important distinction between savings and investment. Investment is a tool for wealth generation. You are not simply setting aside money when you invest, instead, you are using it in a very specific way to generate more money. While you can earn a small amount of interest on a savings account, this is still minimal compared to the profits that can be gained through strategic investment. Savings is an instrument of wealth preservation. By keeping your money idle and parked in a bank account, you ensure that it remains safe. It is not exposed to the market or its constant fluctuations, it stays as it is. This makes savings a low-risk option as compared to investment. However, remember, the lower the risk the lower the returns. You don’t make any gains or profits from a savings account. When you have long-term goals like a child education plan to work towards, simply saving is not enough. You need to look for ways to actively generate wealth to counter the ever-rising costs of global education.  2. Investment helps you beat inflation With inflation, the value of money decreases. Think about it this way, a commodity worth Rs. 500 in 1980 would have been considered fairly expensive. Today, we can easily spend that amount of money in a single day and not even think twice about it. This is because, with inflation, the value of Rs. 500 has decreased.  So, even if you save a fairly significant sum of money, it may end up becoming insignificant over time as inflation eats its value. Investment helps you beat these odds. When you invest in some asset, its value keeps appreciating over time with inflation. Therefore, the money that you have invested in the asset appreciates with it. Instead of eating away at the value of your money, inflation helps you generate more wealth. 3. Investment helps you realize your goals Because investment is an instrument of wealth generation and because it helps you beat inflation, it is also a better way of realizing your financial goals. Saving does not play out well in the long term for expensive goals. These goals require you to accrue money that may be in excess of what you can reasonably or realistically save. Investing that money is a more reliable way of achieving your goal amount. Keeping your money idle makes it liable to depreciation due to inflation. Investing helps you generate wealth. This is why, when you have long-term goals on the horizon, it is better to invest. Such investment obviously requires a strategy. Markets always carry risk and your investments can succeed or they may fail and leave you at a loss. To counter that, one must always try to invest intelligently and strategically to balance out the risk. Mutual funds and ETFs which are professionally managed investment funds are a good way of doing this for beginner investors. Then why save at all? If investing is better in all these ways, then why save at all? Isn’t it better to simply invest all of your extra money? Well, let's not get ahead of ourselves. All investment carries risk. Markets can be volatile and unpredictable. The price of your assets may go up in the long term, or they may fall and leave you at a loss. Savings, on the other hand, ensure that your money doesn’t go anywhere. Keeping your money idle is not always a bad thing. By doing so you ensure that no matter what happens, you have some money kept secure for rainy days. Savings can provide you with a much-needed cushion in case your investments fail or fall prey to a market slump. Savings are also a good way to collect money for short-term financial goals. When it comes to short-term or less expensive goals, inflation is less likely to be a factor. For example, if you are planning on buying a new refrigerator next year, inflation is likely not going to make big problems for you when it comes to costs or the value of your saved money.   Savings are a good way of ensuring you have a safety cushion or emergency fund. It is also good for short-term financial goals. It is always wise to have at least some savings on hand. Conclusion Savings and investments are both important ways of preparing yourself for the future. While investment is riskier, it is the best way of ensuring long-term capital gains and wealth generation. Saving for a rainy day is a wise and responsible thing to do. However, to beat rising inflation and ensure the best education possible for your child, investment is the smart way to go. Investing your money through a service like EduFund can help you fulfill your child’s study abroad dreams. You don't always have to work hard. Work smart. FAQs Will my bank FDs help me beat education inflation? Regular bank FDs usually provide up to 7 or 7.5% returns. Education inflation, on the other hand, increases at the rate of 10% every year. This means that FDs do increase your money but do not increase the value of your money; hence, they fail to beat education inflation. Is it more important to save or invest? Savings are Important, of course. However, savings don't necessarily increase the value of your money with time due to inflation. You need a plan that gives your returns higher than inflation. And that solution is an investment. Which is easier: Saving or investing? To a beginner, investing may seem like a complicated domain to enter, but with some basic research and through easy-to-access tools like the EduFund app, investment can be as easy as having a savings bank account. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Remember the old children’s fable about the ant and the grasshopper? The ant planned for the future and saved up food and resources. Meanwhile, the grasshopper decided to live in the moment and enjoy the spring.  Then, when winter came, the ant was warm, well-fed, and secure. The grasshopper, not so much. As new parents, you may feel like you have years and years left to make education plans for your children’s future. But do you? Or are you setting yourself up for the grasshopper’s fate? Long-term plans are the best way to produce high and reliable returns; the earlier you start, the better.  An investment in knowledge pays the best dividends.”  Benjamin Franklin Creating a solid education plan for your children is the best investment you can do for them. But what does education planning in India entail?  Image by Andreas Wohlfhart on Pexels 1. Savings only go so far ‘Well’, you say, ‘we already have a savings account in our child’s name. Do we need to do more?’ The answer is yes because savings only go so far. While they are great as an emergency fund to cushion you in a sudden financial crisis, when creating an education fund for your child, they fall short. The main reason for this is, savings do not generate wealth. A savings account helps you preserve and protect the money you already have, but the interest on these accounts is not enough to generate wealth in the long run. Meanwhile, the costs of education in India and abroad continue to rise. If you have plans of sending your child to study abroad, simply saving will not help you. Investing, on the other hand, is an instrument of wealth generation. By putting your money in assets that appreciate over time, you are compounding your wealth instead of simply holding it idle. Investments also offer higher returns, helping you reach your financial goals quicker and much more easily.  2. Always plan for inflation Education costs are rising. Tuition fees for college abroad are rising even more. According to Forbes, the cost of an undergraduate degree in the United States has risen by almost 500% between 1985-86 and 2017-18. This is even higher than the rate of inflation in the US in the same time period.  Keeping these numbers in mind, your plans for your child’s future must keep this inflation in mind, especially if you want them to study abroad. This is another reason why savings are not a good option for child investment plans. As the value of money depreciates due to inflation, your savings lose value. You may have Rs.5 Lakhs saved right now for your child’s future, but the value of Rs. 5 Lakhs will have changed in the next 10-15 years. Will your savings be as valuable or useful for you or your child then? Likely not.  A much better way of combating inflation is investing your money in assets that are likely to appreciate over time. This way instead of devaluing your money, inflation can help you generate more wealth. If you want to invest in stocks and bonds, mutual funds, ETFs, etc., are an easy way for beginners to ease into the market. 3. Sips can be your friend SIPs, also known as Systematic Investment Plans, enable you to invest in mutual funds on a regular and timely basis. SIPs help in creating a regular mode through which you can invest small sums, periodically, instead of a large lump sum, all at once. This is an invaluable advantage for small investors because it enables you to invest when you may not have a lot of capital on hand. You can start a SIP investment scheme for child education for as little as Rs. 100 a month.  SIPs are ideal for long-term investment and goal-based investment planning. After all, regular investments are key to long-term financial planning. By keeping faith and investing regularly, even if the markets fall temporarily, your investments will rise in the long term when the markets are correct. This was the experience of SIP mutual fund investors who continued to invest in their plans during the 2008 recession. SIPs also offer automatic deductions which ensure you never miss an installment.  4. Consult a professional So how do you start investing for your child’s future? Beginners may find the stock market too complicated, too intimidating, and too risky at first. But don’t go hiding in your comfortable cocoon of savings just yet. It is true that investing comes with market risks, but if you have the right people and the right advice by your side, you can create a foolproof investment strategy.  Think about it this way, when your child is thinking about applying for colleges but is unsure of which college or degree will be the best fit for them, what do you do? You may offer them your own input and advice, and encourage them to talk to friends, seniors, teachers, etc. You may also hire a professional education counselor to offer counseling and advice with EduFund.  Similarly, when you are unsure of yourself and about how to start investing in your child’s education goals, consult a professional. If you are worried about the high fees a professional financial advisor may charge, you can look into consulting a financial advisory app like EduFund. An advisory service that specializes in education planning can be extremely helpful for you. 5. Always put your child first This is probably the most important part of any planning you do for your child. You must always put your child first. It is easy to superimpose your own dreams and expectations on your children, especially when they are young. Remember that you are planning for the sake of their hopes and dreams and not yours.  Be supportive and mindful of what your child wants. You should talk to them regularly about their future and what they have in mind. Tell them, especially when they are older, about the steps you have taken for their future, and ask them if those steps align with their dreams. It doesn’t make sense to plan for medical school if your child has an artistic bent of mind. Keep in mind that your children are the real stakeholders here.  Conclusion Child investment takes many forms. Every parent wants to raise their child to his or her highest possible potential. Reaching that potential can take quite a bit of money and this is why education planning and fundraising are important. Investing in your child’s education is a long-term goal that will require patience, faith, and reliable advisors. Research your options thoroughly, talk to the right people to get the right advice, and invest in the right places. With the right plans in place, no goal is too far. FAQs Why is it important to have a financial plan for my child's education? A financial plan creates a roadmap and assists you in achieving the goal you had set for yourself. Does it really help to start saving for a child's education even before birth? Yes, the earlier you start saving, the higher your savings will grow. The power of compounding is a great factor in advance savings. How does an education plan for new parents? Through advanced education planning as new parents, they can save enough money to fund their child's future and possibly expensive educational dreams. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Investing is the best way to secure your future goals and achieve your dreams. Be it for child education plans, retirement goals, or other goals, investing can help you generate wealth and avoid accruing debt while chasing them.  Traditionally, middle-class Indians have tended to play safe when it comes to their wealth. Investment seems like a needlessly risky game for many. However, it is time to bust some myths and mitigate your worries.  Once these common myths are busted, the investment will not seem as foreign and dangerous anymore. Read on as we separate fake news from fact! 1. Investing is the same as trading Trading is when you buy assets in the stock market and sell them after a short term to generate a quick profit. Traders are looking to make short-term gains by predicting the future behavior of certain stocks. Their profits depend on market unpredictability. Investors are not banking on unpredictability. Investors look for relatively stable stocks and bonds or basket securities in which to invest for the long term. When you invest money you do so with the expectation that the price of the asset will rise, slowly but reliably, over the course of a long time - usually years.  Thus, investment is nowhere as risky as stock trading. In fact, it is a fairly secure and reliable way of passive wealth generation. Investors favor diversified, well-managed portfolios and often look to mutual funds and ETFs because they are structured, balanced, and professionally managed. Short-term market fluctuations do not generally affect your long-term investments. Minor setbacks tend to average out over time.  Investment is a good and responsible method of financial planning for your children’s education plans, homeownership goals, etc. With a strategic investment scheme in place, you can send your child to study abroad and give them the best global opportunities. 2. You need a lot of money to start investing This is another completely unfounded myth that discourages a lot of middle-class Indians from investing in stock market assets. Investment is certainly not just a rich man’s game. It can be an incredible way of compounding wealth for all kinds of people.  There is a misunderstanding that you have to invest a huge amount of money all at once to get good returns. This is not true. You can invest slowly and at your own pace. Many mutual funds in fact offer SIP (Systematic Investment Plans). These plans enable you to make small monthly investments starting as low as Rs. 500 or even Rs. 100.  Ultimately the amount of money you invest and how you invest it will depend on your financial goals and capacity. For example, if you are investing for the sake of your child’s education plans and your child is still young, you can start with a relatively modest SIP. Because of the long-term nature of the investment, your money will still grow splendidly. This is an especially harmful myth because it discourages the exact people who can benefit the most from strategic, long-term investments. 3. Past performance of a stock is a guarantee of future returns Stock markets are volatile and the performance of any particular stock is dependent on a lot of different factors. If a stock is performing well today and has performed well for even the last 10-15 years, it is no guarantee that it will still be good 10 years from now. Times change and so does the market. A company may be doing well today but future events can cause it to unexpectedly shut down.  This is why you should avoid investing based on past trends alone. Most casual investors actually do not have a lot of expertise in choosing or selecting stocks. This is why it is advisable to invest in basket securities like mutual funds and ETFs when you are just starting out. These funds are professionally managed and have a team of experts who select appropriate stocks and figure out the right opportunities to buy and sell.  If you have more specific goals you can consult with financial advisory services that specialize in goal-based financial planning. A service like EduFund can be extremely useful for you for education planning and child investment schemes. 4. I am too young to start investing There is no such thing as being too young to start investing. Investment is planning for the future and you can never be too young for that.  You may think that investment is not an ideal option for you when it's still early in your career and your salary is fairly low. However, as we have noted already, you can start a SIP for as low as Rs.500 or even Rs.100 a month. Even for a fresh graduate, this is not a huge amount. In addition, it can help you cultivate the good financial habit of regular investment.  You may also think that you still have a lot of time and don’t need to think of long-term financial goals just yet. However, that is a short-sighted attitude to have. The earlier you start investing the better your returns will be. If you have a young child and you want them to study abroad, it is better to start investing now rather than later. 5. FDs are the best investment for middle-class families FDs or Fixed Deposits have been the traditional investment instrument of choice for the Indian middle class. The reason for this popularity is that FDs are extremely low-risk. You deposit your money with a bank for a fixed amount of time and on maturity, you receive your original principal, plus interest. There is little to no risk of losing your deposits. FDs typically have higher rates of interest as compared to regular savings accounts. Even with interest rates that are higher than typical savings accounts, the returns on FDs pale in comparison to investment options in stocks, bonds, funds, etc. This does not mean FDs are completely useless. They can be a good, low-risk investment for less expensive financial goals. However, for something like study abroad education plans, you should strongly consider investing in mutual funds or ETFs. FAQs What is the 5% rule in investing? The 5% rule in investing states that any broker is not allowed to charge more than 5% as commission. What are the 4 common investment mistakes? Not conducting your own research before investingFollowing hearsay or influencer finance adviceNot knowing the taxes and expenses involved like expense ratio or exit loadFailing to diversify your investments What are some common investment myths? Here are some common investment myths: You need a lot of money to start investingInvesting is only for financial advisors or the richFDs are the best investment for middle-class familiesPast performance of a stock is a guarantee of future returns What are the rules of investing? Here are the rules of investing to keep in mind: Start saving todayDiversify your portfolioMinimize feesProtect against lossRebalance regularly Conclusion In this time of increasing costs, you cannot always depend on savings and FDs. Good investment decisions and a reliable and balanced portfolio are key to achieving your goals. Investment generates wealth and prevents your money from losing value due to inflation. Thus investment is also a way to protect yourself and your assets from inflation.  Don’t let myths and fake news hold you back. Do your research, educate yourself and invest to fulfill your dreams. Consult an expert advisor to get the right plan TALK TO AN EXPERT