Category Archives: Economy

Every investor is looking for a well-diversified portfolio. However, due to a lack of knowledge, investors can't do it themselves.  Here, EduFund comes in to solve your problem at no extra cost. How? Let's find out in this blog Why Educase? There are different educases to meet the requirements of every level of investor. Every case is made with proper diversification and the right asset allocation. For aggressive risk or long-term category of investors, the exposure is more in the equity asset class to provide good returns and for an investor with a short-term view (6 months), the exposure is more in the debt asset class. So, these cases meet the requirements of every investor. What is Navi Skyscraper Returns Educase? Navi Educase is a pack of multiple equity mutual funds investing across market capitalization and sectors, with most of the Index funds. Navi Skyscraper Returns is an aggressive risk category educase that invests your money in equity funds having high growth potential. This educase comes up with relatively low volatility and stable returns because this educase invests majorly in Index funds. Why Navi Skyscraper Returns Educase? It provides you with a well-diversified portfolio from a wide range of large, mid, and small-cap companies at a very low cost with the benefit of annual rebalancing. The past data on educases has been back-tested before implementation. The strategy behind Aggressive Educase This educase is designed in such a way that it beats inflation and helps you to create wealth over a long-term period. Index funds have been given more weightage to provide consistency in returns and match the market returns. Who should invest in? Early parents who have just started saving for their toddlers and have more than 7 years to save. Since the educase only consists of equity funds, the returns may not be seen in a shorter period, but in a longer period, returns will be more than average. Advantages No extra cost - There is no hidden or extra cost being charged to invest in educase. Annual rebalancing - All the Navi educases are rebalanced annually if required.  Continuous monitoring - Navi educases are tracked and monitored continuously. Lowest expense ratio – Navi as an AMC (Asset Management Company) offers the lowest expense ratio in the industry. So this educase has the lowest expense ratio because of the Index fund. Experienced Research Team – The EduFund research team has a total experience of more than 35 years collectively. Due Diligence – Educases are made after proper research and due diligence is done by the EduFund research team. How can you invest in Navi Educase? The process is simple and paperless: Download the EduFund app from the Apple Store or Android Play Store. Complete the KYC process. Calculate your risk appetite. Explore the Navi Educase under Educases. And place your order.

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

Both life and wallet will never be the same once you decide to have a baby. No event in your life will signify financial change quite the way this one does, from the first prenatal appointment to the day of college graduation (and beyond). 5 financial things to consider before child planning 1. Create a budget Before you start child planning, you need to have a budget in place. You and your partner may need to create a realistic budget based on your expenses and your streams of income. Once you know how much you can afford to spend, you will be able to tackle the costs easily. A new child is a new family member that needs space! So if you need extra space once the baby is born, figure out what kind of home you can afford, whether it's a slightly larger apartment, a warm cottage, or a pricey house. Will you want the latest baby things or your sister’s passed-on ones? Think about what sort of child care would you require and get candid with your expenses before you start making any purchases. Money Management Tips for Homemakers Read More 2. Costs associated with birth As new parents, you need prenatal vitamins, alternative therapies, labor and delivery alternatives, and screening tests. Give yourself enough time to change or upgrade insurance plans should you need more comprehensive coverage. Good health insurance is vital in this economy. Hospital bills, medical fees, and maternity costs can be high. According to estimates from the industry, a straightforward delivery could cost between Rs 50,000 and Rs 70,000, but a private specialty hospital could charge up to Rs 2-3 lakh. A cesarean delivery could result in a cost rise of up to Rs 4-5 lakh. Before having a kid, you should make financial arrangements for the costs associated with the delivery and child care. 3. Consider maternity leave The vast majority of Indian employees are not entitled to paid family leave. If the mother is employed, you might need to think about taking a lengthier (unpaid) maternity leave or a sabbatical for a year or two. This can be a huge financial loss for families that rely on both streams of income. Paid parental leave is not always an option. Find out if your workplace offers paid leave for new parents and if there are any policies in your favor that you can utilize. Determine the number of weeks covered and the proportion of your salary that is used. Do you have to use your sick and vacation days first? If you don't have access to paid time off or you're going to take more unpaid time off, you might want to cut costs or rely on your savings. 4. Purchase life and health insurance You'll want your child to be stable financially if something were to happen to you or your partner. A life insurance policy can assist in paying for things like child care, housekeeping, cooking, and more. Purchasing maternity insurance is the first action you can take to cover maternity costs. When purchasing health insurance, (even for a couple), it is important to confirm that the policy includes coverage for maternity costs and, if applicable, any applicable waiting periods. Additionally, by paying a larger rate, you might add pregnancy coverage to a current insurance policy. Buying health insurance is most important when considering having a child. Get your health covered in your plan so that you are not financially burdened in case of a health emergency. 5. Plan for the child’s education Just like the prices of lemons and oranges are growing, the cost of education is skyrocketing. Saving for your child’s college is a necessity. When it comes to saving money for college, time and compound interest are your best friends. Even while inflation is an unavoidable fact, keep in mind that education inflation is far higher. Utilizing the force of compounding is one approach to combat this, but it will only be effective if you have a long-term strategy in place. You indeed have no idea what career path your child will take, but you still need to put aside a portion of capital that can be utilized when the time comes. Right now, you need to think about the type of education you would like to offer because the practical costs of studying engineering in India vs. the US would be very different. From giving birth to seeing them off to college, watching your child grow and thrive is every parent’s dream! So give those dreams wings by planning ahead and investing for their bright future!  TALK TO AN EXPERT

There are various methods to choose from when it comes to developing a financial plan, but the proper plan needs a few components, regardless of the process utilized for creating it. Components for financial planning   1. Your net worth statement  Every financial plan demands a baseline. So, it is worthwhile to determine the net worth before finding a financial plan. Make sure to note down all the assets and debts. This will include investment accounts, bank accounts, valuable personal property, real estate, mortgages, student loans, and credit cards.   Make sure to deduct your liabilities from your assets to find your net worth. If you find that your liabilities are outweighing the assets, make sure to not be discouraged because when people are starting to establish a solid financial plan, it is something that happens. So, it needs to be considered when looking for the components of financial planning. 2. Financial goals  You cannot consider making a financial plan until you understand what you are going to do with your money. Your plan needs to begin with a complete list of goals, both small and big.   A proper list can help you organize all the goals. Be aware that your short-term goals will be those that you are hoping to achieve in the next 2-5 years. When it comes to medium-term goals, those are the ones that you want to achieve in the next 7-8 years. Finally, your long-term goals will be those that you want to achieve in the next 10 to 50 years. Listing down financial goals is one of the primary components of financial planning.   7 Types of Financial Planning Read More 3. Debt management  Having a debt management strategy is something that can help you reach your financial goals. If there is high-interest debt, ensure creating a strategy that can assist you to pay them quickly. You can also hire a financial professional advisor if you are not certain about where to begin. They will help you determine the amount from your budget that should be spent on the debts every month.   4. Cash flow and budget planning  Your budget assists you to find out where all your money is going and it helps you cut back to meet your goals. You can make use of a proper budget calculator to be sure that you do not ignore the important expenses. While jotting down your list, make sure to separate the expenses into two categories when considering the components of financial planning.   One category will have must-have items and the other will have luxury items. When you are considering how the financial goals will fit within the budget, make sure to consider all your expenses. You can also take the help of any advisor that offers procedures and tips that enable you to adjust particular assumptions to check how they would affect the savings plan.   Financial Planning Contingencies Read More 5. Retirement plan  You are going to need 80% of the income you're earning today in your retirement. But, you can also assume that retirement can free you from taxes and other work-related expenses. You must consider that medical insurance does not cover everything. You need to keep those expenses under long-term health care expenses. Make use of a savings calculator for your retirement to help you understand what you might require during your retirement period.   6. Insurance coverage  Insurance refers to an integral part of safeguarding your financial downside. Disability insurance, health insurance, life insurance, and home insurance are some of them. When it comes to life insurance, it is a good concept for people having dependents. Make sure to talk to an insurance professional to acknowledge what kind of coverage works best for you.   When it comes to disability insurance, just like the components of financial planning, it safeguards you and your family when you are not able to work. It replaces approximately 60% of your monthly salary. If you have a home or a car and you cannot afford to pay the entire bill from your pocket, ensure that you have adequate protection. The same is true with health insurance which can get you back thousands of money during a severe injury.   Wrapping Up  These components of financial planning are growing effectively to confirm that the present plans in your life are in a positive direction.   In a nutshell, you need to -  Keep a regular check on your enrolled plans, mutual fund, and assets;   Analyze your essential expense;  Cut down excess expenses for your future investment to be more structured;  Optimize your goals.   So, follow the above-mentioned components of financial planning to make your financial goals realistic as well as achievable. It is one of the best and workable ways to help take a step toward your financial goals. FAQs How do I determine my net worth? List all assets and debts (e.g., investments, bank accounts, loans), subtract liabilities from assets to find net worth. Why is goal setting essential in financial planning? Goals provide direction. Categorize them into short-term (2-5 years), medium-term (7-8 years), and long-term (10-50 years) goals. How do I manage debt effectively? Create a strategy to pay off high-interest debt. Seek advice from a financial advisor if unsure where to start. Why is insurance coverage crucial for financial security? Insurance safeguards against financial downsides. Types include disability, health, life, and home insurance, offering protection in various situations. TALK TO AN EXPERT

In the previous article, we read about how to save your child from the student debt trap. In this article, we will read what is inflation and how it affects us. According to the International Monetary Fund (IMF), "Inflation is the rate of increase in prices over a given period.   What is inflation? Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country. But it can also be more narrowly calculated for certain goods, such as food, or services, such as a haircut or travel cost.   Whatever the context, inflation represents how prices of the relevant set of goods and services have increased over a certain period.   Inflationary pressure suggests that you will have to pay more for the same goods and services this year compared to last year. If you possess the assets before the price rise, such as homes and stocks, this can help you.   But if your income does not keep up with Inflation, your purchasing power diminishes. Inflation raises your cost of living over time, and it can be harmful to the economy if it is high enough.  High Inflation has far-reaching consequences for a country's economy. Tips to protect savings from Inflation Read More Let us see some ways in which inflation affects us 1. Erodes purchasing power Inflation causes a decrease in the purchasing power of your currency due to a rise in prices across the economy. With the increase in the general price level (without an equivalent rise in your income), your ability to purchase goods with the given money decreases.  https://www.youtube.com/watch?v=75tJ3oX1_Gw 2. Causes more inflation When Inflation is stepping in, people tend to buy more stuff in anticipation that the prices will rise further in the future. So, this desire to spend produces a potentially disastrous loop in the face of this desire to spend.   People and businesses are spending faster and more to limit the amount of time they hold their deteriorating money, resulting in an abundance of cash that no one wants.   In other words, the supply of money exceeds the demand, causing the price of money and the purchasing power of currency to fall at an increasing rate.   People grow frantic to get rid of their money, so every payday becomes a frenzy of spending on anything that isn't becoming increasingly worthless.  https://www.youtube.com/watch?v=jPHG8h87Dzo 3. Lowers the cost of borrowing When a business borrows money, it may pay back the cash it receives with the cash it earns later. The basic rule of Inflation says that the value of a currency tends to decline over time.   So, in other words, the cash now is worth more than the cash in the future. Thus, Inflation lets debtors pay lenders back with money worth less than when they originally borrowed it.   Effects of Inflation on Student Education Read More 4. Inflation and the cost of living The cost of living rises when prices rise. People have less money to meet their responsibilities if they spend more money to live (assuming their incomes haven't increased).   People's purchasing power falls due to rising costs and stagnant income. As a result, consumers may require more time to repay earlier loans, allowing lenders to collect interest for a longer time.   Also, it is worth noting that some inflation is good for the economy. In its mild form, inflation has a positive effect as well. People who anticipate inflation are more likely to spend now rather than later since they know prices will rise in the future. Consumer spending is the engine that propels economic growth forward.  As general consumers in the economy, to beat the brunt of inflation, we need to keep our money in safe assets and as little as possible in terms of cash. If we keep our money in assets that provide higher returns than the inflation rate, our money will grow over time. FAQs How is purchasing power related to inflation in India? Inflation causes a rise in prices across a nation's economy. This, in turn, decreases purchasing power as the general price level becomes comparatively higher than the rise in one's income. What's the inflation rate in India? The average inflation rate per year was 7.5% from 1960 - 2021. This means that an item that used to cost ₹100 in 1960 was priced at ₹7,804.85 at the beginning of 2022. What's an acceptable inflation rate? Although a formal inflation target hasn't been established by The Federal Reserve, policymakers generally consider 2% or below to be an acceptable inflation rate.

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