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June 19, 2021

Edelweiss Mutual Fund: Invest in High-Performing Funds

Edelweiss Mutual Fund

Edelweiss Asset Management AMC Limited comes within the Investment & Advisory Line of Edelweiss Group and is one of the fastest-growing AMC in India. It was set up on 23rd August 2007 and established in 2008, and for a decade it has delivered impressive returns.

Edelweiss Financial Services Limited has been dealing with sponsorships regarding the Edelweiss Mutual fund, which is a substantial fiduciary branch operated under the Edelweiss Group.

Edelweiss Asset Management AMC offers financial services and support to investors in the form of Asset Management, Wholesale Financing, Treasury Operations, Insurance Brokerage, Private Client Business, and Investment Banking.

Edelweiss Asset Management AMC is one of the youngest and the fastest growing Mutual Fund Companies which aims to be innovative and globally renowned, since its inception. It provides a stable mutual fund platform to a diversified investor base that is spread across domestic and global geographies.

Edelweiss Asset Management Limited manages a corpus under the management of Rs. 52414.5143 crores. (as of 31-Mar-2021) and has an AUM size of Rs. 52,415 Cr as of 31, Mar 2021, invested in over 104 schemes (28 equity, 92 debt, and 24 hybrid funds) with over 11 distribution centers across the country.

World-class knowledge platforms and true-to-label products have helped the Edelweiss Asset Management AMC to generate a massive base of investor folios.

It offers a wide range of mutual fund schemes across equity, debt, and hybrid categories along with exchange-traded funds and international fund of fund schemes. The AMC aims to render the best digital experience to its investors through cutting-edge technology and seamless innovation.

Edelweiss Mutual Fund in India

Features of Edelweiss Mutual Funds AMC

 It offers investment opportunities in mutual funds and services in Alternative Investment Solutions with a proficient risk-return gamut across domestic and international asset classes. 

  • These funds provide a robust mutual fund platform with world-class knowledge platforms and true-to-label products.
  • Through continuous innovation and cutting-edge technology, the company provides the best digital experience to its investors. 
  • The team of experts comprises experienced professionals from the Financial Services industry who has rich experience in the field of financial markets and is highly qualified.
  • A research-based and process-oriented investment approach is followed by the company, thus assisting investors, dealing with business partners, and deploying investors’ finances. 

Important Information about Edelweiss Mutual Fund

SponsorEdelweiss Financial Services Limited
TrusteeEdelweiss Trusteeship Company Limited (ETCL)
Investment ManagerEdelweiss Asset Management Limited
Statutory DetailsEdelweiss Mutual Fund established – Indian Trusts Act, 1882.   AMC is registered with SEBI – Registration No. MF/057/08/02 on April 30, 2008. 
Date of Incorporation of AMC23 Aug 2007
Date of set up of Mutual Fund30 Apr 2008
Name(s) of SponsorEdelweiss Financial Services Limited
Name of Trustee CompanyEdelweiss Trusteeship Company Limited
CEO / MDMs. Radhika Gupta
CIOMr. Dhawal Dalal (D), Mr. Harshad Patwardhan (E)
Compliance OfficerMs. Vijayalaxmi Khatri
Investor Service OfficerMr. Mayur Jadhav
AuditorsM/s Price Waterhouse, C. A. LLP (Edelweiss AMC) and M/s SR Baltiboi & Co LLP (ETCL & Mutual Fund Schemes)
Quarterly AUM45909.31
Registrar and Transfer AgentKFin Technologies Pvt Ltd.
CustodianStandard Chartered Bank
AddressEdelweiss House Off. C.S.T Road, Kalina, Mumbai – 400 098 Registered Service Centre – 402, Third Eye 1 Near Panchvati Circle, C.G.Road, Ahmedabad-380006
EDELWEISS mutual fund customer care number(022) 40933400, 079-44218800, and (022) 40933401 (fax)
EmailEMFHelp@edelweissfin.com investor.amc@edelcap.com

Top 10 performing Edelweiss Mutual Fund Schemes

Edelweiss has mutual funds in almost all categories permitted by the Securities and Exchange Board of India or SEBI. Here is a list of the ten best-performing Edelweiss mutual fund schemes in India.

1. Edelweiss Arbitrage Fund (Hybrid – Arbitrage fund)

The investment objective of the Scheme is to produce income by investing in arbitrage opportunities in the cash and the derivative segments of the equity markets and the arbitrage opportunities are available within the derivative segment and by investing the balance in debt and money market instruments.

However, there is no guarantee that the investment objective of the scheme will be realized.

The Edelweiss Arbitrage Fund, with a NAV of Rs. 15.1775 (as of 28th April 2021), is the top-performing fund in the Hybrid – Arbitrage fund category.

This open-ended fund was launched on 27th June 2014 and has given trailing returns of 4.5% (2020) in one year (as of 26th April 2021) and 5.3%  for 3 years.

The fund managers are Dhawal Dalal since 22 Dec 16 with a tenure of 4.27 years and Bhavesh Jain since 27 Jun 14 with a tenure of 6.77 years.

Key Information

Minimum InvestmentINR 5,000
Minimum Additional Investment INR 1,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 500
Exit Load0-30 Days (0.25%),30 Days and above (NIL)
Return Since Inception (27th June 2014):6.3% (as of 26th April 2021)
AssetsINR 3707 Crore (as of 31st March 2021)
Expense Ratio1.09% (as of 31st March 2021)

2. Edelweiss Large and Mid-Cap Fund (Equity – Large & Mid Cap)

The investment objective of the Scheme is to produce long-term capital appreciation from a diversified portfolio of predominantly Large Cap and Mid-Cap equity and equity-related securities. However, there is no guarantee that the investment objective of the scheme will be realized.

The Edelweiss Large and Mid-Cap Fund, with a NAV of Rs. 43.265 (as of 28th April 2021), is the top-performing fund in the Equity – Large & Mid Cap category.

This open-ended fund was launched on 14th June 2014 and has given trailing returns of 17% (2020) in one year (as of 26th April 2021) and 11.1% for 3 years.

The fund manager is Harshad Patwardhan since 14th June 2007 with a tenure of 13.81 years.

Key Information

Minimum InvestmentINR 5,000
Minimum Additional Investment INR 1,000
Minimum SIP InvestmentINR 1000
Minimum WithdrawalINR 1000
Exit Load0-12 Months (1%),12 Months and above (NIL)
Return Since Inception (14th June 2014):11.1% (as of 26th April 2021)
AssetsINR 697 Crore (as of 31st March 2021)
Expense Ratio2.5 % (as of 31st March 2021)

3. Edelweiss Mid-Cap Fund (Equity – Mid Cap)

The investment objective is to seek to generate long-term capital appreciation from a portfolio that predominantly invests in equity and equity-related securities of Mid Cap companies. However, there can be no guarantee that the investment objective of the Scheme will be realized.

The Edelweiss Mid-Cap Fund, with a NAV of Rs. 14.038 (as of 28th April 2021), is the top-performing fund in the Equity – Mid Cap category.

This open-ended fund was launched on 26th Dec 2007 and has given trailing returns of 26.4 % (2020) in one year (as of 26th April 2021) and 9.5 % for 3 years. The fund manager is Harshad Patwardhan since 26th Dec 2007 with a tenure of 13.27 years.

Key Information

Minimum InvestmentINR 5,000
Minimum Additional Investment INR 1,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 500
Exit Load0-12 Months (1%),12 Months and above (NIL)
Return Since Inception (26th Dec 2007):11% (as of 26th April 2021)
AssetsINR 1215 Crore (as of 31st March 2021)
Expense Ratio2.28 % (as of 31st March 2021)

4. Edelweiss Europe Dynamic Equity Off-shore Fund (Equity – Global Cap)

The primary investment objective of the Scheme is to seek to provide long-term capital growth by investing predominantly in the JPMorgan Funds – Europe Dynamic Fund, an equity fund that invests primarily in an aggressively managed portfolio of European companies.

The Edelweiss Europe Dynamic Equity Off-shore Fund, with a NAV of Rs. 15.3248 (as of 28th April 2021), belongs to the Equity – Global category.

This fund was launched on 14th June 2014 and has given trailing returns of 13.5% (2020) in one year (as of 26th April 2021) and 10.1% for 3 years. The fund managers are Bhavesh Jain since 9th April 2018 with a tenure of 2.98 years and Hardik Verma since 27th Sept 2019 with a tenure of 1.51 years.

Key Information

Minimum InvestmentINR 5,000
Minimum Additional Investment INR 1,000
Minimum SIP InvestmentINR 1000
Minimum WithdrawalINR 1000
Exit Load0-12 Months (1%),12 Months and above (NIL)
Return Since Inception (14th June 2014):6.1% (as of 26th April 2021)
AssetsINR 42 Crore (as of 31st March 2021)
Expense Ratio1.34 % (as of 31st March 2021)

5. Edelweiss Emerging Markets Opportunities Equity Off-shore Fund (Equity – Global Fund)

The primary investment objective of the Scheme is to seek to provide long-term capital growth by investing predominantly in the JPMorgan Funds – Emerging Markets Opportunities Fund, an equity fund that invests primarily in an aggressively managed portfolio of emerging market companies.

The Edelweiss Emerging Markets Opportunities Equity Off-shore Fund, with a NAV of Rs. 18.4791 (as of 28th April 2021), is in the Equity – Global category.

This fund was launched on 7th July 2014 and has given trailing returns of 21.7 % (2020) in one year (as of 26th April 2021) and 13.8 % for 3 years.

The fund managers are Bhavesh Jain since 9th April 2018 with a tenure of 2.98 years and Hardik Verma since 27th Sept 2019 with a tenure of 1.51 years.

Key Information

Minimum InvestmentINR 5,000
Minimum Additional Investment INR 1,000
Minimum SIP InvestmentINR 1000
Minimum WithdrawalINR 1000
Exit Load0-1 Year (1%),1 year and above (NIL)
Return Since Inception (7th July 2014):9.4 % (as of 26th April 2021)
AssetsINR 84 Crore (as of 31st March 2021)
Expense Ratio1.24 % (as of 31st March 2021)

 6. Edelweiss ASEAN Equity Off-shore Fund (Equity – Global Fund)

The primary investment objective of the Scheme is to provide long-term capital growth by investing predominantly in JPMorgan Funds – JF ASEAN Equity Fund, an equity fund that invests primarily in companies of countries that are members of the Association of Southeast Asian Nations (ASEAN).

However, there can be no assurance that the investment objective of the Scheme will be realized.

The Edelweiss ASEAN Equity Off-shore Fund, with a NAV of Rs. 23.2 (as of 28th April 2021), is in the Equity – Global category.

This fund was launched on 1st July 2011 and has given trailing returns of 2.3 % (2020) in one year (as of 26th April 2021) and 3 % for 3 years. The fund managers are Bhavesh Jain since 9th April 2018 with a tenure of 2.98 years and Hardik Verma since 27th Sept 2019 with a tenure of 1.51 years.

Key Information

Minimum InvestmentINR 5,000
Minimum Additional Investment INR 1,000
Minimum SIP InvestmentINR 1000
Minimum WithdrawalINR 1000
Exit Load0-12 Months (1%),12 Months and above(NIL)
Return Since Inception (1st July 2011):8.9 % (as of 26th April 2021)
AssetsINR 58 Crore (as of 31st March 2021)
Expense Ratio1.42 % (as of 31st March 2021)

7. Edelweiss Large Cap Fund (Equity – Large Cap)

The investment objective is to seek to generate long-term capital appreciation from a portfolio predominantly consisting of equity and equity-related securities of the 100 largest corporate by market capitalization listed in India.

However, there is no assurance that the investment objective of the Scheme will be realized and the Scheme does not assure or guarantee any returns.

The Edelweiss Large Cap Fund, with a NAV of Rs. 46.42 (as of 28th April 2021), is an Equity – Large Cap category fund. This fund was launched on 20th May 2009 and has given trailing returns of 17.3 % (2020) in one year (as of 26th April 2021) and 10.8% for 3 years.

The fund managers are Bharat Lahoti since 2nd May 2017 with a tenure of 3.92 years and Hardik Verma since 11th Nov 2019 with a tenure of 1.39 years.

Key information

Minimum InvestmentINR 1,000
Minimum Additional Investment INR 1,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 1000
Exit Load0-365 Days (1%),365 Days and above (NIL)
Return Since Inception (20th May 2009):13.7 % (as of 26th April 2021)
AssetsINR 232 Crore (as of 31st March 2021)
Expense Ratio1.89 % (as of 31st March 2021)

8. Edelweiss Long Term Equity Fund (Equity – ELSS)

The primary objective of the scheme is to generate long-term capital appreciation with an option of periodic pay-outs at the end of lock-in periods from a portfolio that invests predominantly in equity and equity-related instruments.

The Edelweiss Long Term Equity Fund, with a NAV of Rs. 59.22 (as of 28th April 2021), is an Equity – ELSS category fund.

This open-ended fund was launched on 30th Dec 2008 and has given trailing returns of 13.7 % (2020) in one year (as of 26th April 2021) and 7.5 % for 3 years.

The fund managers are Harsh Kothari since 30th April 2019 with a tenure of 1.92 years and Pratik Dharmshi since 30th April 2019 with a tenure of 1.92 years.

Key information

Minimum InvestmentINR 500
Minimum Additional Investment INR 500
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 500
Exit LoadNIL
Return Since Inception (30th Dec 2008):15.5 % (as of 26th April 2021)
AssetsINR 165 Crore (as of 31st March 2021)
Expense Ratio2.39 % (as of 31st March 2021)

9. Edelweiss Balanced Advantage Fund (Hybrid – Dynamic Allocation fund)

The primary objective of the scheme will be to generate absolute returns with low volatility over a longer tenure of time. The scheme will invest in arbitrage opportunities, equity derivative strategies, pure equity investments, and the balance in debt and money market instruments.

The Scheme proposes to allocate assets to both equity and debt markets based on the market view. However, there is no assurance that the investment objective of the scheme will be realized.

The Edelweiss Balanced Advantage Fund, with a NAV of Rs. 31.79 (as of 28th April 2021), is a Hybrid-Dynamic Allocation fund. This fund was launched on 20th August 2009 and has given trailing returns of 22.6% (2020) in one year (as of 26th April 2021) and 11.6% for 3 years.

Key information

Minimum InvestmentINR 1,000
Minimum Additional Investment INR 1,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 500
Exit Load0-365 Days (1%),365 Days and above(NIL)
Return Since Inception (20th August 2009):10.4 % (as of 26th April 2021)
AssetsINR 3315 Crore (as of 31st March 2021)
Expense Ratio2.33 % (as of 31st March 2021)

10. Edelweiss Banking and PSU Debt Fund (Debt – Banking & PSU Debt fund)

The investment objective of the Scheme is to generate returns commensurate with the risks of investing in a portfolio of Debt Securities and Money Market Instruments issued by Banks, Public Sector Undertakings, Public Financial Institutions, entities majorly owned by Central and State Governments, and Municipal Bonds. However, there can be no assurance that the investment objective of the scheme will be realized.

The Edelweiss Banking and PSU Debt Fund, with a NAV of Rs 19.1633 (as of 28th April 2021), is a Debt – Banking & PSU Debt fund.

This fund was launched on 13th Sept 2013 and has given trailing returns of 12.9% (2020) in one year (as of 26th April 2021) and 10.2% for 3 years.

Key information

Minimum InvestmentINR 5,000
Minimum Additional Investment INR 1,000
Minimum SIP InvestmentINR 500
Minimum WithdrawalINR 500
Exit Load0-12 Months (1%),12 Months and above (NIL)
Return Since Inception (13th Sept 2013):8.9 % (as of 26th April 2021)
AssetsINR 462 Crore (as of 31st March 2021)
Expense Ratio0.55 % (as of 31st March 2021)

Using the Edelweiss Mutual Fund Calculator 

The mutual fund calculator of Edelweiss helps you estimate the returns which can be expected from the invested capital.

The exact amount cannot be guaranteed, but an estimated amount can be calculated using the Edelweiss mutual fund calculator for both Lumpsum and Edelweiss mutual fund SIP payments to get an appropriate view of the Edelweiss mutual fund statement.

Save Tax by investing in Tax Saving Mutual Funds from Edelweiss Mutual Fund

Investors can save tax payments and claim tax benefits under Section 80C of the Income Tax Act by investing in certain tax-saving mutual funds offered by Edelweiss Mutual Funds. The tax-saving mutual funds offered by Edelweiss AMC are:

  • Edelweiss Long-Term Equity Fund (Tax Savings)
  • Edelweiss Tax Advantage Fund

How to invest in Edelweiss Mutual Funds Online?

To invest in Edelweiss Mutual Funds online, the investor can visit the official website of Edelweiss, AMC or he can log in to EduFund and follow the instructions on the site.

EduFund is a renowned portal that is registered with AMFI, BSE, and SEBI with zero fees to sign up. He will be required to fill in the required details, after which the payments will have to be authorized to complete the process.

It is a simple, convenient, and easy process through EduFund to invest in some of the most profitable Edelweiss Mutual Fund Schemes, which involves a hassle-free process. Let us look at the details of the process:

Step 1: The first step is to log in using your Edelweiss mutual fund login Id or your EduFund account. If the applicant does not own an account, he can create a username and password by registering on both the official website and EduFund.

Step 2: The second step is for the applicant to select the mutual fund he is interested in investing in, identify the duration of investment and apply it accordingly on the portal. He should scan and upload identification documents and proofs.

Step 3: Further, the applicant must upload his address proof using any legal document that carries the permanent address of the investor.

Step 4: Next, the risk undertaking should be determined, whether the applicant wants to opt for low, medium, or high-risk investment and the kind of mutual fund he would like to invest in – Equity, Debt, or International

Step 5: The individual has the option to go for a one-time investment or installment. If he wishes to pay the investment amount in a lump sum, he should select the “Invest One Time” button; else can click on the “Start SIP” to enable investment which allows monthly/quarterly/bi-annual, or annual payments.

Step 6: After the payment is made, the mutual fund will be processed and will reflect in the investor’s account within 3-5 working days.

Who is eligible for Edelweiss Mutual Funds?

Here are the investors who can invest in Edelweiss Mutual Funds:

  • Resident individuals
  • Lawful guardians or parents in case of investment on behalf of minors
  • NRIs

Documents required for Edelweiss Mutual Funds

Here are the documents you will require to invest in Edelweiss Mutual Funds:

  • Application form
  • Address proof
  • Identity proof
  • KYC documents
  • Passport Size Photograph
  • Third-party declaration form – for investment on behalf of a minor

Why choose Edelweiss Mutual Funds using EduFund?

Edelweiss is a brilliant option for investors as it lets them plan for long and short-term financial goals by investing in high-quality mutual funds with the best investment management services provided by the AMC.

It also helps in evaluating the risk appetite of investors, which is diligently planned and recommended by the efficient, professional asset management team.

  • The company offers a wide variety of funds that the investor can leisurely choose irrespective of his risk appetite. The company is one of the fastest-growing AMCs in the mutual fund sector, and it has many benefits when taken through EduFund like:
  • Edelweiss Mutual Funds are regulated by SEBI and are considered extremely secure and safe investment options.
  • These funds save the Investor from fraudulent activities by the mutual fund companies
  • If the securities are held for more than a year, then the dividends that are earned can be tax-free
  • Since Mutual funds are liquidated within 3 days with the option of some getting liquidated overnight, these are highly lucrative.
  • Investing and redemption in Edelweiss Mutual Fund is a very convenient, easy, and hassle-free task
  • The investor can expect a beneficial rate of return as there is no compromise on the risk part Portfolio, which is duly maintained by the Edelweiss Mutual Funds.
  • An investor can opt for a lump-sum payment or opt for Systematic Investment Planning through which he can save some of his monthly income by investing in SIPs or mutual funds. This helps him to make more money in the long term for his future goals
  • Edelweiss Mutual Funds publishes the report timely, believing in complete transparency, and it is made possible for the investor to view the portfolio anytime.

1. Harshad Patwardhan – Chief Investment Officer- Equities at Edelweiss Asset Management.

Mr. Patwardhan has 25 years of experience in various capacities. Before he joined Edelweiss, he was the Executive Director and Head of Equities at JP Morgan Asset Management India.

He became the CIO when Edelweiss acquired the schemes of JP Morgan in 2016. Academically, he has done his B.Tech from IIT Mumbai and MBA in Finance from IIM – Lucknow. He has also completed his CFA from the CFA Institute. He manages 12 funds at Edelweiss AMC.

2. Radhika Gupta – the Chief Executive Officer of Edelweiss Asset Management

Radhika Gupta is the CEO of AMC, who has strategically managed the myriad of mutual funds offered by AMC. She was a student at the University of Pennsylvania and has been an asset management professional for a long time.

3. Dhawal Dalal – Chief Investment Officer- Debt at Edelweiss Asset Management.

 Dalal has an industry experience of more than 20 years, and he began his career in 1996 as a research associate at Merrill Lynch Asset Management. Then he joined DSP BlackRock Mutual Fund and worked there for 18 years.

Then he joined Edelweiss Mutual Funds and has been working for more than 3 years now and has worked on more than 35 schemes on his own.

He has completed his MBA from the University of Dallas in Banking, Corporate Finance, and Securities. He also finished his BE in Mechanical Engineering from LD College of Engineering in Ahmedabad.

4. Niranjan Awasthi

Niranjan Awasthi heads the product and marketing team of Edelweiss’s investments and has more than 13 years of professional experience in the finance industry.

He takes wise strategic decisions and scrutinizes and analyses the various macroeconomic and latest market trends for the betterment of the AMC and the investors.

5. Nalin Moniz – Chief Investment Officer- Alternative Equities at Edelweiss Asset Management

Nalin graduated from the Jerome Fisher Program in Management and Technology at the reputed University of Pennsylvania. He also holds joint degrees in Computer Science and Economics from Moore School and Whir ton School, respectively.

Mr. Moniz started his career as a Portfolio Manager for Goldman Sachs Asset Management, after which he started his alternative asset management firm in India by the name of Forefront Capital Management.

Mr. Moniz pioneers the portfolio management and research wing of Alternative Equities at Edelweiss, and he also played a stellar role in helping Edelweiss acquire Ambit Capital’s s AIF wing in 2016.  

6. George Bose – Head of Operations of Edelweiss AMC

George Bose has professional experience of more than 15 years, and he looks after Settlement, the proper functioning of Banking, and Fund Accounting of the AMC. He joined Edelweiss in the year 2010.

7. Pranav Parikh – Chief Invest Officer- Private Equity at Edelweiss Asset Management.  

Pranav Parikh has nearly 20 years of experience in both the Indian and American economies. In the dot-com bubble burst between 1999 and 2003 and the 2008 global financial crisis, Mr. Parikh was among the very few dedicated Fund Managers to have generated positive returns during the above-mentioned two of the most catastrophic economic cycles.

During that period, he was working as the Portfolio Manager at Q Investments in Texas and the Managing Director of the Indian wing during the latter.

Then he joined Fountainhead Ventures as a Managing Director till 2015, after which he took up his current position at Edelweiss Mutual Funds.

He has well managed the Private Equity and Venture Capital sections at Edelweiss, and he is one of the driving forces behind the success of Edelweiss AMC.

8. Vijayalaxmi Khatri

Vijayalaxmi Khatri caters to several functions related to the asset management of Edelweiss, whether it is secretarial, compliance, legal, or risk functions.

She is a mutual fund professional for the past 15 years and has set up a strong and strategic risk management system for the AMC.

9. Gautam Kaul

Gautam Kaul has an experience of more than 20 years and is a designated Fund Manager for Fixed Income at Edelweiss Asset Management.

He has experience working at multiple leading AMCs. He has completed his MBA in Finance from Savitribai Phule Pune University. He started his career at Mata Securities in 2001 and then joined Sahara India Mutual Fund, where he worked for 1 year.

After he left that, he moved on to Lotus India Asset Management Company. Again, after working for 2 years there, he joined Relegate Asset Management Company, and finally, after 7 years, he joined IDBI Asset Management Ltd. He finally joined Edelweiss Mutual Fund AMC after he left IDBI in 2016, and now he is managing 54 schemes.

Other efficient Fund Managers in Edelweiss Mutual Funds AMC are:

  • Nilesh Saha
  • Harsh Kothari
  • Pratik Dharmshi

Select EduFund for investing in EDELWEISS Mutual Fund

EduFund makes the process of investing in EDELWEISS mutual funds convenient. EduFund’s experienced consultants give you customized 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:

Customized 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 counselors 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 fulfill your children’s educational goals.

FAQs

What are some top Edelweiss Mutual Fund schemes?

Some of the top-performing Edelweiss Mutual Fund schemes are Edelweiss Arbitrage Fund (Hybrid – Arbitrage fund), Edelweiss Large and Mid-Cap Fund (Equity – Large & Mid Cap), Edelweiss Mid-Cap Fund (Equity – Mid Cap), Edelweiss Europe Dynamic Equity Off-shore Fund (Equity – Global Cap), etc.

Can I invest in Edelweiss Mutual Funds online?

Yes, interested investors can simply download the EduFund App, then create an investor account and explore their options. Once they find themselves interested in an Edelweiss Mutual Fund scheme, they can start investing. Investors can also visit the official website of Edelweiss AMC and start an investment.

Am I eligible to invest in Edelweiss Mutual Funds?

If you are a resident individual, a lawful guardian or a parent (if the investment is being made on behalf of a minor), or an NRI, you’re eligible to invest in Edelweiss Mutual Funds.

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4 essential tips on investing in your child's education

4 essential tips on investing in your child's education

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

4 W’s of Balanced Advantage Funds

What is a Balanced Advantage Fund? A balanced advantage fund is a fund that can invest 0-100% in the equity market or 0-100% in the debt market dynamically as per the prevailing market condition. For example - If a fund manager finds that the price of the equity market has gone up, he will tilt the portfolio more toward the debt market. Likewise, if the equity market trades at a discount, then the fund manager can tilt/shift the portfolio toward the equity market.  The valuation is the internal process of the fund. Based on valuation, the fund manager can take the call. This way, the fund manager can take the opportunity and change the asset allocation. The fund manager can go aggressive in the equity market or can also decide to play conservatively to reduce the portfolio's volatility. The aim is to minimize the portfolio's downside risk and maximize the returns.  Who should invest? Investors who are looking for long-term wealth creation. Investors who are not comfortable with the market volatility. Investors who do not want to face high volatility and looking for equity-like returns. Investors who are unsure which type of fund they should invest in, whether in the equity or debt-oriented fund. Risk-averse equity investors with an investment horizon of more than three years. Additional read: Financial mistakes to avoid Why should you invest? A balanced advantage fund is a dynamically rebalancing fund between two asset classes, i.e. equity and debt. It has the complete flexibility of rebalancing from 0-100% in both asset classes. It provides you with better risk-adjusted returns. It manages the equity market volatility and provides stability in the portfolio by diversifying the portfolio into the debt market. It offers you equity-like returns, which help your portfolio to grow at a much faster rate than debt funds and also helps you to beat inflation. Minimizes the downside risk and provides scope for growth by investing in the equity market. When should you invest? When the volatility in the equity market increases you do not want to have such high exposure to the prevailing volatility. When you want equity-like returns but do not want to face high liquidity. First-time mutual fund investor looking for long-term wealth creation. Conclusion Try to allocate some portion of your portfolio towards a balanced advantage fund if you want to reduce the portfolio's volatility. A balanced advantage fund is like a season fund. FAQs What is a Balanced Advantage Fund? A Balanced Advantage Fund can dynamically invest 0-100% in either the equity or debt market, depending on market conditions. Who should consider investing in Balanced Advantage Funds? Investors seeking long-term wealth creation, those uncomfortable with market volatility, and those unsure about equity or debt-oriented funds can benefit. Why invest in Balanced Advantage Funds? These funds offer flexible asset allocation, better risk-adjusted returns, and stability by diversifying into the debt market. They provide equity-like returns, growth potential, and risk mitigation. When is the ideal time to invest in Balanced Advantage Funds? Consider these funds when equity market volatility increases, and you want equity-like returns without excessive risk. What is the aim of Balanced Advantage Funds? The aim is to minimize portfolio downside risk, maximize returns, and adapt to market conditions, providing both stability and growth.
5 financial things to consider before child planning.

5 financial things to consider before child planning.

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
5 investment plans every parent should have

5 investment plans every parent should have

As parents, we have a profound responsibility to ensure a bright and secure future for our children. While providing love, care, and education are crucial aspects, financial planning plays a pivotal role in setting the stage for their success. Investing wisely is key to securing their future aspirations and safeguarding against unforeseen circumstances. Let's explore five essential investment plans that every parent should consider, ranging from mutual funds and US ETFs to US stocks and insurance. So, we will dive in and discover the strategies that can pave the way for your child's financial well-being. Education Fund: The Power of Mutual Funds One of the most crucial investments you can make as a parent is in your children's education. Start by setting up an education fund that specifically caters to their academic pursuits. Consider tax-efficient options like a 529 plan, which allows you to invest in a variety of mutual funds, ensuring growth potential while enjoying tax benefits. Platforms like EduFund (www.edufund.in) offer valuable guidance and tools to help you plan and manage your child's education fund effectively. investment plans US ETFs: Diversification Made Easy 1. Exchange Traded Funds Exchange-Traded Funds (ETFs) have gained significant popularity in recent years due to their flexibility and global exposure. Just like mutual funds, ETFs represent a basket of securities, including stocks, bonds, commodities, or a combination thereof. However, unlike mutual funds, ETFs are traded on stock exchanges throughout the trading day at market prices. ETFs offer several benefits, including transparency, liquidity, and cost-effectiveness. Parents can buy and sell ETFs at any time during market hours, allowing for more flexibility in managing their investments. Additionally, ETFs disclose their holdings daily, ensuring transparency in the investment portfolio. With generally lower expense ratios compared to mutual funds, ETFs offer a cost-effective investment option for parents. 2. USA Stocks For parents who are comfortable with taking on more active roles in their investment journey, investing in individual stocks can be an exciting avenue. Owning shares of well-established companies can offer substantial returns over time. While investing in individual stocks requires careful research and monitoring, it can provide the potential for higher growth compared to mutual funds or ETFs. EduFund's resources can assist you in understanding stock investing basics and identifying companies with strong fundamentals. To mitigate risk, parents can consider diversifying their stock portfolios across different sectors and industries. This diversification helps reduce the impact of a single stock's performance on the overall portfolio. In addition, parents should adopt a long-term investment mindset and focus on the fundamentals of the companies they invest in rather than short-term market fluctuations. Investment Tips for Dad's in India Read More Insurance - Protecting Your Family's Future Insurance is a pivotal component of any comprehensive financial plan, especially for parents. Life insurance provides financial protection to your family in the event of your untimely demise. It ensures that your children's education, living expenses, and future aspirations are secure, even in your absence. Term life insurance offers coverage for a specified period, providing a higher coverage amount at an affordable premium. Additionally, health insurance safeguards against unexpected medical expenses, offering peace of mind during uncertain times. By securing adequate insurance coverage, parents can safeguard their family's financial well-being and ensure a secure future. Investment Tips for Mom's in India Read More Mutual Funds - Diversify and Grow Your Wealth Mutual funds are an excellent choice for parents seeking diversification in their investment portfolios. These funds pool money from several investors to invest in a variety of asset classes, including stocks, bonds, and money market instruments. Managed by professional fund managers, mutual funds allow parents to benefit from their expertise and experience in making investment decisions. By spreading investments across different sectors and markets, mutual funds help reduce the risk associated with investing in individual stocks. Parents can choose from many types of mutual funds on the basis of their risk appetite and financial goals. For those seeking stability, bond funds can offer a regular income with lower volatility. On the other hand, equity funds offer an opportunity for capital appreciation through investments in stocks. Balanced funds offer a blend of both equity and bond investments, providing a balanced risk-return profile. By investing in mutual funds, parents can access professional investment management and enjoy the benefits of diversification. You can lay a strong foundation for your family's future by incorporating these investment plans into your financial strategy. Remember that investment decisions should align with your risk tolerance, financial goals, and time horizon. It's always suggested as advice to seek guidance from financial advisors who can provide personalized advice based on your specific circumstances. Conclusion  Investing wisely is an integral part of parental responsibility. By incorporating these five investment plans into your financial strategy, you can take proactive steps toward securing your child's future while also protecting your own financial well-being. Remember to conduct thorough research, seek professional advice, and regularly review your investment portfolio to adapt to changing circumstances. By combining long-term vision with disciplined investment practices, you can build a strong financial foundation for your children, allowing them to chase their dreams with confidence. Start planning today and pave the way for a prosperous future for your family. Consult an Expert Advisor
5 reasons why SIP is the best investment choice?

5 reasons why SIP is the best investment choice?

A systematic investment plan or SIP is the best plan that helps you invest in mutual funds on a regular basis.  You can choose to invest weekly, monthly or even quarterly – the most popular choice being monthly. There are multiple reasons why SIPs are the best way to grow your money especially when you have a goal to plan – e.g. your child’s education. SIPs can be bought easily and you can start with a very low amount - Rs. 500 per month. In this blog, we will talk about the ‘Big 5 advantages’ that SIPs offer to you as a parent. But before that, let's understand what a SIP is What is SIP? A SIP or systematic investment plan is an investment mode through which an investor can create a regular mechanism of investment for themselves. Let's take the example of investor X. Investor X wishes to invest Rs. 10,000 every month in a mutual fund. In this case, investor X can create a SIP for a fund they want to invest in and the money will be deducted every month automatically (the deduction can be weekly, monthly, or even quarterly, depending on the investor's choice). Think of it as a recurring deposit, with better returns. Now that we know what a SIP is, let's get to know why investing via SIP is the best choice you can make to enlarge your corpus. CALCULATE MONTHLY SIP 5 Reasons SIP is the best These are the 5 main reasons why you should invest via a systematic investment plan to reach your financial goals 1. Suitable for Long-Term Investment Any financial advisor will tell you that if you want to invest long-term, SIP is the way to go. The reason is simple, regular investing and automatic deductions keep investors motivated to stay invested and reach their investment goals quicker. During the 2008 financial recession, many people withdrew money from mutual funds. However, the ones that remained invested via SIP, attained a huge profit once the markets rose. Long-term investing makes sure that even if the market is down at the moment, once the markets rise, the investor will make profits. 2. Goal-planning ‍SIPs are good tools to plan for a future goal – to buy a 4-wheeler or to pay for college tuition fees maybe 10-15 years from now. When you determine the amount required to achieve your goal, you will know how much you should invest and how long it will take to reach your goal. This will help in planning effectively. Having financial goals is very important to creating a financially secure future. One must have a defined idea about what financial goal one wants to reach by the age of 30, 40, 50, and so on. 3. Effect of Compounding Compounding is one of the biggest advantages of a SIP. Over time your investments grow because you start earning returns not on your principal amount, but on the interest that keeps getting added to it. Let's take an example. Suppose you invest Rs.1,000 in a mutual fund that gives you a yearly return of 10% p.a. Your amount becomes 1,100. at the end of the first year. At the end of the second year, the rate of return is 11%, this time the returns will be calculated on Rs. 1,100 and not the principal amount, which is, Rs. 1,000. ‍This ensures the growth of your corpus and is one of the reasons why experts advise you to not withdraw your investments when the market is down. 4. Curated by Experts With the increasing number of fund types like equity, debt, mixed, gold-based, etc. there is a wide variety to choose from based on your risk appetite and preferred investment duration. This has led to customized offerings based on individual needs, supervised by experts in the SIP domain. All you need is to specify your goal and timeline and you are provided with the best possible funds that can meet your future goals. ‍SIPs have become popular over the past few years, because of the ease of investing and the flexibility provided in terms of the amount of money that can be invested. You can stay invested as long as you want, although average returns have been higher when invested in the long term. Research also shows that the returns offered by SIPs are more than recurring deposits in banks, in the long term. 5. Automates Your Investment Experience SIPs automate your investment experience, which makes you a regular investor. It is easy and convenient and because of the online surge, today, it is super easy to invest via SIP. If you choose the lump sum method, you will have to manually invest an amount and there may be times when you can miss an installment. ‍With automated installments and a streamlined process, investing via SIP has now become an extremely popular method, to reach long-term goals like saving up for your child's education. FAQs Why is SIP investment good? By investing through SIPs, you will do away with the burden of timing the market as you could then avail the benefit of Rupee Cost Averaging. By investing through SIP, you will tend to invest in the up and down markets. This helps you shy away from the volatility of the market. Additionally, you will benefit from the power of compounding, which fundamentally generates returns not only on capital but also on returns. Is SIP good for students? Investing in SIP can be a huge benefit for students. It cultivates a healthy investment habit, and they can invest a small amount to start their journey. SIP is best for beginners and a comparatively safe investment vehicle. What are the features of SIP? A SIP offers the following features: It is best for long-term investment, brings financial discipline, allows small investment amounts, benefits from the power of compounding, and is a comparatively safer investment tool. Why do people prefer SIP? A systematic investment plan helps bring discipline to an individual’s investment habits. A SIP will automatically deduct a pre-decided amount periodically. Investors also do not need to worry about timing the market while investing via SIP. It is one of the best investment vehicles for beginners. Consult an expert advisor to get the right plan TALK TO AN EXPERT
SIP
5 tips to know before investing in US stocks

5 tips to know before investing in US stocks

If you want to invest in the US stock market to benefit from US stocks, you may start by opening an international trading account in India. But before investing in US equities, here are the 5 important things to know before investing in US stocks. 1. Regulatory framework One of the oldest, most effective, transparent, and well-regulated stock markets in the world is the one in the United States. On US stock markets are listed some of the largest businesses in terms of market capitalization, sales, and profitability. The worldwide exposure and flavor that US markets offer are crucial since many of these listed firms have a significant global presence, scale, and operational structure. The regulatory body that monitors the operation of the US stock markets is the Securities and Exchange Commission (SEC), which was founded in 1934. It guarantees the strict application of laws and rules that establish the highest standards of openness and integrity—essential for stock markets as well as for the safety and trust of investors. 2. Impact of Foreign Exchange  The volatility in the value of the US and other currencies should be taken into account while investing in US equities. This is because before any gain (or loss) for an Indian investment is realized, it would be converted using the appropriate exchange rate in the Indian rupee. The gains (or losses) will fluctuate in lockstep with changes in the exchange rate. An Indian investor must be aware that the exchange rate can be unpredictable and is influenced by a wide range of political, economic, and supply and demand variables. 3. Liberalized Remittance Scheme According to the Reserve Bank of India's Liberalized Remittance Scheme, an individual may invest up to $ 250000 per year in US equities from India (LRS). The cap covers any money sent abroad for purchases, travel, education, or other international transactions during the year. The investor's brokerage account has to be filled before making any investments in US equities. Investors must complete Form A-2, which is available from RBI-authorized dealers. Any sum over the $250000 cap requires RBI approval. Additional read: US stocks for investing in child education 4. Taxation To make your efforts worthwhile, it is crucial to take into account the tax consequences of your international assets. Due to the Double Tax Avoidance Agreement (DTAA) between the US and India, the same income cannot be taxed twice on investments made in the US stock market. 5. Dividend tax The dividends from US stocks are taxed at a fixed rate of 30% for overseas investors. However, as a result of the tax agreement between the US and India, citizens of India pay a 25% tax rate (deducted before distribution). However, because of the double tax avoidance agreement between the US and India, the tax paid in the US may be claimed as a foreign tax credit in your domestic filing. 6. Capital gains tax Your assets in the US are not subject to capital gains tax. However, India requires you to pay tax on your overseas capital gains. This may be divided into two groups.: Long-term capital gain (LTCG)If you keep the equities for more than 24 months before realizing capital gains, you will be subject to indexation advantages and a 20% tax rate in addition to any relevant fees and other surcharges. Short-term capital gain (STCG)Standard income-tax regulations apply to any gains from assets held for less than 24 months, and they are added to your ordinary taxable income. You must also take into account the recently implemented Tax Credited at Source or TCS. Under the new regulations, a 5% TCS will be applied to all international transfers over INR 7 Lakhs in a fiscal year. It is not an additional expenditure to deduct this advance tax when submitting your taxes each year. Charges on US stock-broking account  Using an Indian stock brokerage account to invest in the US stock market is prohibited. You would need to create one with a US stock brokerage company instead. To provide this service, the majority of Indian stock brokers who allow you to invest in US equities typically collaborate with a US stockbroker. You would also be required to pay certain fees for a US stock broking account, just like you would for an Indian trading account. This is something you should also take into consideration when you buy US stocks because these fees can reduce your earnings. These fees include Annual Maintenance Costs, brokerage charges, bank charges, transaction charges, and more. Invest in the US stocks with EduFund  Download the EduFund app and create an account to start investing in US stocks. With zero charges and no hassle account opening process from the comfort of your home, you can start investing in FAANG stocks in your portfolio to geographically diversify your portfolio!! Thus, investing in US firms and equities may give investors access to the worldwide market, credibility, and an opportunity to increase their wealth. Consult an expert advisor to get the right plan TALK TO AN EXPERT
5 top investments for risk-averse investors

5 top investments for risk-averse investors

All investments are associated with risks. Yet, the risk is not uniform, and it's essential to be aware of the different levels of risks linked with all types of investment instruments. This is why the first thing to consider before investing is how much of a risk appetite has – how much risk one is willing to take. Want to know the best investment options for risk-averse investors but still generate good returns? Continue reading this article to know more! What is risk averse? Risk-averse refers to an investor who chooses to preserve the capital over and above its potential to generate returns that are higher than the average. Risk can refer to many factors – volatility, currency, market, credit rating, etc. Risk-averse can also refer to a conservative investor. Low risk symbolizes stability in investments. A low-risk investment generates guaranteed reasonable returns, if not outstanding, above benchmark returns. But chances are near zero that the principal investment amount will be lost. Whereas a high-risk investment option may gain or lose money over time. Risk-averse investors are unwilling to accept market volatility. They prefer their investments to be highly liquid - readily available to be withdrawn. Such investors usually include old investors or retired individuals who depend on their savings for their daily expenses. Start Investing in Mutual Funds Is FD a good option for risk-averse investors? One should constantly adjust their returns against the current inflation rate. The current Fixed Deposit interest rates are 5-7% p.a. on average. But the current inflation rates are around 6-8% p.a. Give these figures a thought. The price you pay for your everyday goods and services is rising at 6-8%, whereas your FD investments are growing at only 5-7%. FDs do not increase the value of your money over time. In fact, you actually lose money or its purchasing power over time. Do you think FDs are the safest investment option? Banks defaulting on payments is rare but definitely possible. The Deposit Insurance and Credit Guarantee Corporation (DICGC) guarantees Rs. 5 lakhs per person per bank if the bank defaults. Let's not forget the liquidity part of this instrument. Fixed deposits can have a lock-in ranging from 3-5 years. Banks penalize the investors for withdrawing money before the lock-in is over. This penalty is in the form of a reduction of interest rate by a certain percentage. Download App and Start Saving for Child Education What are the best investment options for risk-averse investors? The market is filled with many investment options for investors with varying risk appetites. Let's look at some of the best investment options for risk-averse investors: 1. Short-term bond fund The best alternative for investors who do not want exposure to FDs or volatile instruments. Short-term bond funds – bond funds with low maturity and a high potential to offer better returns. Debt Funds with longer maturity are subjected to interest rate risk. But short-term bonds have a lower interest rate risk as their maturity period is much lower. 2. Municipal and Corporate Bonds State and local governments and companies usually raise money by issuing bonds to the public. Bonds offer lower risk than stocks. When a company is winding up, the bondholders are given first preference in the payment and settlement order. 3. Other debt funds Other debt funds include banking and PSU Funds, ultra-short duration funds, Dynamic Bonds, etc. You could always invest a lump sum in these debt-based mutual funds and opt for a Systematic Withdrawal Plan (SWP). This would ensure that along with the returns being generated on your investments, you would also get a monthly income from these investments. This investment option is one of the best options for older people who want a monthly income. 4. Liquid funds Invest in top-rated liquid funds to avoid loss of capital with a higher degree of safety for your primary investment. Also, when the market moves up, your investment performs better and generates higher returns in line with the market. 5. Dividend growth stocks Stocks are not as safe as cash, savings, or other debt-based instruments. But they are safer than options and futures. Dividend-paying stocks are considered safer than high-growth ones as they minimize volatility, if not eliminate it. You don't depend on the value of the stock as you get a dividend as a regular income on your investment. Apart from debt-based investments, you could also apply a staggered investment approach in equity-based mutual funds for a long-time horizon. A periodically rebalanced portfolio helps you minimize your portfolio volatility and ensures efficient capture of up-market and down-market movements even with equity exposure.  Take the help of an Investment Advisor who will guide you through goal-based planning and help you choose the investments that are most suitable to your goals and objectives and your risk appetite. FAQsWhat type of investments do risk-averse investors prefer?  Risk-averse investors typically prefer conservative investments with lower volatility and more predictable returns. These may include government bonds, high-quality corporate bonds, certificates of deposit (CDs), and stable dividend-paying stocks. These options aim to preserve capital while providing modest growth, aligning with the risk tolerance of such investors.   What are 3 high-risk investments?  Three high-risk investments include investing in individual stocks of volatile and speculative companies, trading in cryptocurrencies known for their price volatility, and investing in startups or early-stage ventures that have higher failure rates. These investments offer the potential for significant returns but also carry a substantial risk of loss.   Which investment is the riskiest for investors?  Investing in highly speculative and unproven assets like cryptocurrencies, especially in lesser-known or new coins, can be among the riskiest options for investors. The volatile nature of these assets can lead to substantial financial losses due to sudden price fluctuations and lack of regulation.   Which investment has the highest return without risk?  No investment offers guaranteed high returns without any risk. Investments with potentially higher returns often come with varying degrees of risk. While some low-risk options like government bonds or savings accounts provide stability, they usually offer lower returns. Diversification and a clear understanding of risk are important for any investment strategy.  TALK TO AN EXPERT
5 types of mutual funds

5 types of mutual funds

Investing in mutual funds for your child’s education is always advisable. First of all, it is a less stressful option than investing in direct equity stocks because that requires you to have in-depth knowledge of market trends and fluctuations. Secondly, with mutual funds, there are a variety of schemes you can opt for depending on a range of factors. These factors could include the time period for which you can invest before liquidating, the amount of money you can invest, the amount you require to secure the education fund, the level of risk you can take, and so on.  When it comes to building an education fund, here are the top 5 types of mutual funds you can choose from. 1. Large-cap mutual funds The defining characteristic of large-cap equity funds is the fact that these funds invest in the top 100 Indian companies that have the highest market value. Large-cap mutual funds can bring in impressive returns if you remain invested for a long period. If you are a person who wants to avoid taking very high risks with your investments and has decided to invest early for your child’s education, this is the way to go. The average returns rate has historically beaten that of Fixed Deposits and similar investment alternatives. SIP Mutual Fund Investment Read More 2. Mid-cap mutual funds Mid-cap funds invest in Indian companies that come in the next best 250 in terms of market value. These funds are for you if you are ready to take on a higher level of risk. Justifiably, the return rates also tend to get higher. One way to satiate the risk appetite of mid-cap equity funds is to let them season for at least 7-10 years. If your child is in primary or middle school, investing in such a scheme will generate a wholesome amount of wealth by the time they are ready to pursue a college education.   How to track Mutual Funds? Read More 3. Equity-linked saving schemes  Among the various perks of investing in mutual funds is the tax deduction benefit. Equity Linked Saving Schemes are devoted to enabling investors to save taxes, as the name also indicates.  The only catch here is that it has a compulsory lock-in period of at least 3 years. The aim here is to keep you invested longer to counter the risk level. If you can spare that amount of time, then ELSS is definitely a go-to. An added benefit is the historically high level of returns.   Mutual Funds to invest in Child Education Read More 4. Low-risk options  There is this whole myth surrounding mutual funds that they only come with a high-risk factor. On the contrary, a debt fund is also a kind of mutual fund that comes with low risk, so much so that it remains undisturbed by market fluctuations.  Debt funds are still a better option than Fixed Deposits because they can generate a higher percentage of returns. So, if you are not in favor of taking high risks, debt funds are a go-to.  5. Hybrid mutual funds  If you are confused about your investment options or even hesitant about risking too much, the answer to your problems is a hybrid mutual fund. This kind of fund is a mixture of equity as well as debt.  Hybrid mutual funds bring in the best of both worlds. They tend to generate good returns at low risk. FAQs What are the different types of mutual funds? Large-cap mutual funds Mid-cap mutual funds Equity-linked saving schemes Low-risk options Hybrid mutual funds Which type of MF is best? The best type of mutual fund is the Hybrid mutual fund. Which MF gives the highest return? Equity-linked mutual funds are considered the mutual funds with the highest returns. Conclusion There will be miscellaneous financial goals you will be required to set if you are a family person. One among these might be to straighten up the roadmap to your child’s academic and career aspirations. The first step is calculating your expected expenses with the help of an education cost calculator. The calculator will help you draw your investment map to fulfill your child's aspirations. The earlier you invest, the more prepared you will be to make critical decisions as the moment arrives. DisclaimerMutual funds are subject to market risks. The previous performance of a fund is no guarantee of future success. Please reach out to an expert to know more about the schemes before investing.
5 ways you can save up for your child’s education

5 ways you can save up for your child’s education

In this blog, we will explore the best ways to save for your child's education! Education in India is viewed as a stepping stone to a good future. ‍The race to get children into the best colleges is so keenly fought that every Indian parent can qualify for a role of an expert counselor. The “padhai karo, nahi tho achchi Naukri kaise lagegi” line is so often heard that it could very well replace the “so jao, varna gabbar aa jayega” line. ‍The belief that a good education will provide for a good life, is entrenched in the way we think. Indian parents are willing to go to lengths to provide their children with the best education and are ready to spend as much as it takes. Many parents start saving when their child is very young, to prepare for future college-related expenses. ‍In this blog, we will look at 5 avenues where Indian parents can consider investing their hard-earned money. 5 Best ways to save for your child's education Your child's education does not deserve to be compromised and here are some ways in which you can plan ahead and start taking small steps toward your child's college fund. ‍Let's get started. ‍1. Investing in Mutual Funds We're sure you have heard of the phrase 'mutual funds' Sahi hai! And when it comes to saving up for long-term investments, mutual funds definitely Sahi hai! ‍Investing in mutual funds as a way to build a corpus fund for a particular goal has gained a lot of interest in the past decade or so. Building a retirement fund or a home purchase fund is very common and a small percentage of investors are also parents keen on saving up for their child’s education. Investing in mutual funds is viewed as a potentially high-return investment with the risk involved since the returns on mutual funds are market-related. Markets have been extremely volatile in the recent past, but mutual funds should still form a large part of an education fund, considering the longer time horizon involved. It is possible to invest as per your risk preference and redemption is far easier when you need the money. With Systematic Investment Plans (SIPs) that give you the option of investing monthly, there is a possibility of better returns compared to one-time/lumpsum investment mutual funds, especially over longer investment periods.   INVEST IN MUTUAL FUNDS 2. Exchange Traded Funds (ETFs) ‍For those of you who are unfamiliar with the concept of ETF, it is basically a basket of securities that is traded on an exchange. They are similar to mutual funds. ‍Investing in ETFs can prove to be a successful investment option when saving up for your child's education. The reason is, that you will be investing your money in dollars, therefore, if your child aspires to pursue his/ her education abroad, the dollar holds more value than many other currencies. INVEST IN ETFs 3. Buying Insurance Plans Buying an insurance plan to provide income security to your child is also an option. Many of these so-called child plans provide insurance cover and also market-linked returns after a fixed tenure. ‍However, returns on these plans have been volatile and impacted by frequent regulatory changes. Also, child insurance policies may not be the best investment option, because they are bound by various terms and conditions. 4. Buying Real-Estate Yes, this holds true for parents trying to save up for their children even today. Real Estate is considered by many, to be a good long-term investment. Since the time horizon that parents should consider is 15-20 years, real estate investments are good to maintain a diversified portfolio. But, real estate has lost its sheen as an attractive investment option over the past decade or so, due to excess inventory and regulatory impacts. ‍There are a number of hassles when investing in real estate. Other than the declining returns – unreliable deals, possible legal tangles, and a high wait time when one wants to sell are some of the factors to consider if this is an investment option for you. 5. Investing in PPF In India, the Public Provident Fund, or PPF is the go-to option for many parents when investing in their child’s future. It is a low-risk option that is exempt from tax on the withdrawal. The returns are lower but predictable. However, there is a limit to the amount of money one can invest through this route – the upper limit is Rs. 1,50,000, annually. PPFs are also less suited when an investor is ready to take more risk and willing to invest in market-linked funds. FAQs How can we save for children's education? Ans. Investing in mutual funds, exchange-traded funds, buying insurance plans, buying real estate, investing in PPF.  What is a good educational plan? A solid educational plan will give your family and you a road map for your future educational and professional objectives. Although parents and kids are free to start as early as they'd like, planning for college and technical training at the middle school level is not too early.  What is the best savings plan for a child? Ans. Sukanya Samriddhi Scheme, Make Investments in Gold, Invest in Equity Mutual Funds, Investments via Recurring Deposits.   Why save for your child's education? Ans. You can avoid taking on significant debt to pay for your child's higher education by starting a savings plan early, even before they enter kindergarten.  What is the right time to start saving for your child's education? The right to start saving for your child's education is as early as possible. The earlier you begin, the better it will be for your investments, as you'll be able to take advantage of the power of compounding. Conclusion We hope now you have a decent idea of what investment options you could consider, as well as the pros and cons of each. In our next post, we will look at why we think mutual funds - through SIP mode - are a good way to build a corpus fund with the goal of educating your child. With this kind of education fund, you can stop worrying about the finances that are required to send your child to the college of her dreams. ‍Your investment today will gift your child a good life, tomorrow. Consult an expert advisor to get the right plan TALK TO AN EXPERT
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