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Inflation is one of the root causes of price hikes in the education sector. The essential needs of students like uniforms, textbooks, tuition fees, school shoes, and transportation costs have become so expensive that it is slowly becoming impossible for a common man to afford his child’s education.  “How does inflation affect education?” is one of the common queries of every household all over the world. Although education is considered a child’s right, in reality, it is a luxury not all can afford. Currently, the education inflation is at 10 – 12 percent and parents are finding it impossible to meet the growing fee structure and associated educational costs. The above-normal rate makes it difficult for parents to educate their children at primary, secondary, and especially higher levels. How does inflation affect education? The impact of inflation on education can be understood with the help of the following parameters- 1. Daily essentials Students have a limited budget, most of which, is spent on daily essentials like food, personal care, drinks, travel expenses, etc. When a major chunk of money is already spent on essentials, it becomes difficult for them to meet education expenses, which are already skyrocketing.  The reason why education inflation is rising in India Read More 2. Housing expenses Do you think only daily essentials are major expenses? Think again. Housing cost in every city is equally expensive. Students try to find the cheapest hostel or guest house where they can live as paying guests but the costs keep on adding to the total budget. Inflation affects education as the priority of common people is to meet housing costs instead of educational expenses. 3. Health expenses in order to live frugally and manage their expenses, many times, students do not have the money to eat three balanced meals, daily. In the majority of cases, a hostel or PG Life does not provide good quality food and this harms their health. Thus, inflation increases health expenses and makes it difficult for students to meet their education costs easily. Factors responsible for Education Inflation? Read More 4. Standard of living Inflation is dangerous as it directly impacts the standard of living.  The rise in the prices of goods decreases the purchasing power of the people. Something that cost 100 rupees a few months ago now costs 180 or 200 rs. This rise in price causes fewer goods and services to be purchased. In such circumstances, the purchasing power gradually decreases, the value of goods increases, and ultimately the real value of the currency is at a loss. Inflation thus decreases the standard of living, and parents belonging to lower and middle-income groups become unable to bear the cost of educating their children as the monthly allowance that they pay to their kids doesn’t make up for the price hikes. 5. Tuition fees Private colleges charge inflated fees as they promise education, as well as, placement in good companies. The tuition fees at such places are too high for an ordinary person and this is why it is believed that only rich people can afford to find entry into engineering, medicine, or another high-profile degree-course college. But, this is not the case. Especially, if you have planned well for your child’s education in advance. The EduFund App helps you calculate the cost of your child’s education, plan, and then save for it, that too with the help of saving experts. 6. Price of textbooks  Students need textbooks to study but their prices keep on increasing year after year. The publishers blame the paper producers, who in turn, blame the increasing input costs for the price hike. The impact of high textbook prices is harming the education industry as there is a gradual drop in the net enrolment rate (NER).  It is still affordable in India to some extent, especially for non-professional courses. However, if you are planning to send your child to a foreign country like the US, the books alone may charge you way over Rs 10 lakhs! Does Education Inflation impact Student Loan interest rates? READ MORE 7. Educational budgets Inflation has a direct impact on education budgets and the salaries of school employees as authorities have to make cuts on various expenses. The need for higher income encourages teachers and other support staff to look for temporary high-paying alternatives. This step ultimately harms the quality of education, more often than not in govt. schools.   8. Inefficient education savings In India, it is very common for parents to save for their child’s education through FDs (Fixed Deposits). Although this is a safe option, the return rates on FDs usually cannot keep up with the rate of education. As a result, they eventually fail to help finance your child’s education.  9. Education loans Children who want to pursue higher degree courses have to take educational loans. Inflation makes it difficult to repay these loans at the earliest opportunity. Join our robust WhatsApp Community that helps parents invest! Consider the educational loans on the EduFund App because it is available at low-interest rates and there are no hidden charges to hurt your pockets further.  FAQs How does inflation impact education? Inflation's impact on education is profound. The CPI is currently at 5.4 percent for 2023-2024, education inflation is at 10 percent. This means that the cost of education expenses is rapidly increasing and at a faster pace than CPI in the economy. What is the meaning of education inflation? Education inflation in India refers to the rising cost of education, including tuition fees, related expenses, and the overall financial burden on individuals and families seeking education. This concept is similar to the more general term "inflation," which refers to the increase in the prices of goods and services over time. In the context of education in India, the term "education inflation" is often used to describe the trend of rapidly increasing costs associated with obtaining quality education, from primary school to higher education. How can we keep up with the rising education costs? The best way to keep up with rising education costs is to start investing early on. If you are planning a family and then investing in your child;'s school and college expenses should be on the top of your list. You can start with a SIP in a good mutual fund and update your investments every year to beat high college fees. Another option is to consider US investments like stocks and ETFs. Conclusion Inflation is a global phenomenon, the impact of which, can be seen at every stage in a student’s life - from primary to higher education. The burning issue of inflation hinders the growth of children as fewer parents can afford to send their children to schools, colleges, or universities.  By this time, you have understood how inflation affects education, but the primary concern remains - how can parents still defy inflation and save for their child’s education? The experts associated with the EduFund App provide ample help in building a portfolio for your child’s education fund. It will consider the rising inflation and then chalk out a plan accordingly.

The cost of education rises by a larger margin than what the government data tells you. And what makes inflation in the education sector in India worse are the innumerable hidden charges. These hidden charges can push the education budget up for parents. Rising inflation in the education sector can have severe repercussions for those on the lower end of the economic spectrum.  The education inflation rate in India was 3.34 percent in September 2021. However, it has increased to 5.68 percent in the corresponding month of 2022. And with pandemic waves ebbing, there are chances that the education inflation rate will increase steadily. Education inflation poses great risks to every parent and student. It can disrupt the dreams of a  bright future for your child.  And if you are a financially unprepared parent, the risks of education inflation can be more serious for you. Want to learn more about studying abroad? Join our WhatsApp Community! Impact of education inflation on hidden costs of education  1. Increasing tuition fees in educational institutes Tuition fees in Indian colleges and schools have seen an enormous rise over the last few years. Do you know that inflation in the education sector of India is one of the major reasons why many students drop out of college midway? It is becoming increasingly obvious that the education sector in India needs proper planning. Many middle-class families usually struggle to meet ends after enrolling their children in higher education institutes. Guide to Education Inflation Read More 2. Transportation is becoming expensive  With the drastic increase in fuel prices, the cost of transportation is worrying students. Nowadays, a majority of students travel to school by bus. The rising transportation cost is a hidden cost in education inflation.  Unless parents become aware of the transportation costs, it can severely affect them, financially. Apart from fuel-driven vehicles, the overall fares of trains and subway metros have witnessed a rapid surge. Note that this rise in fares is here to stay. Hence, planning your finances properly is the best way to manage your child’s education.  The reason why education inflation is rising in India Read More 3. School uniforms are becoming expensive  For the parents of school-going children, it’s these simple things that are making them anxious. Uniforms are an integral part of schools. Furthermore, many schools have strict regulations on how their students will wear uniforms.  And almost every year, you have to replace the school uniforms, which include shoes, socks, and other accessories.   It is also important to mention the rising cost of school supplies like bags and notebooks. School supplies are not a one-time investment. You have to buy them every year which makes the situation complicated. https://www.youtube.com/shorts/jjXF-KC9iWI 4. A surge in the cost of books  Nowadays, most schools and educational institutes have fixed rules for buying books from them only. But, even if you purchase books from outside, you’ll have to pay more compared to earlier times.  The failure of the authorities to control the prices of the books depicts the sordid state of affairs. Like school supplies, you have to procure books for your child every year while they are in school. https://www.youtube.com/shorts/xqK0y2VdFR4 5. The rising cost of education in foreign countries  If you envision foreign education for your child, be prepared to spend a huge amount on your child’s entry into the best universities.  The average cost of pursuing a degree in the US rose by 497 percent between 1986 and 2018. Even after the pandemic, most colleges overseas have increased their tuition fees. Note that foreign universities charge additional fees for international students.  Factors responsible for education inflation rate in India Read More 6. The constant rise in the price of flight tickets  Flight tickets are becoming costlier day by day. The Oil Marketing Companies, also abbreviated as OMCs, have raised ATF (Aviation Turbine Fuel) prices by 16.3 percent in all major cities of India. This latest hike in ATF prices along with the depreciation of the rupee has made airliners increase their fares. 7. Student visas cost more than you may think Nowadays, student visas cost more than you can imagine. There are various categories of student visas and you should be aware of each of them to make it easy for your child 8. Living expenses With the rise in the prices of essential commodities worldwide, living expenses are touching record figures. The impact of education inflation on hidden costs of education can be ascertained with the rise in living expenses.  If you are sending your child abroad, it is crucial to be prepared financially. This is because living expenses abroad can severely affect your child’s educational prospects.   Unfortunately, inflation in the education sector of India is here to stay. Unless you prepare sensibly and start saving, you may have to compromise on the quality of education. You can avoid financial stress by saving and investing early. Investing in mutual funds and other financial instruments is the most ideal way to counter education inflation. How to beat education inflation? https://www.youtube.com/shorts/jPHG8h87Dzo YouTube: EduFund Join our robust WhatsApp Community that helps parents invest! FAQs How does inflation affect students? Inflation affects all costs and services. Whether it's the price of lemons or education, inflation is the reason for an increase in the prices of goods and services. It affects students just like any other customer by increasing the cost of education, tuition fees, transport, living expenses, books, research facilities, etc. What is the cost of education in India? The average person ends up spending as much as Rs 36 lakh - Rs 38 lakh raising a child from birth to 21 years of age. A bulk of this cost goes towards education in India. What is inflation in the education sector of India? Inflation affects education by increasing the cost of studying overall and its hidden costs like buying books, living expenses for international students, uniforms, transportation, entrance exam fees, etc. What causes education inflation in India? There are several reasons that cause education inflation, such as government funding cuts, higher cost of living, tuition fees, administration costs, security, modern school infrastructure, and technological advancements. What is the rate of inflation in the education sector of India? The education inflation rate in India was 3.34 percent in September 2021. However, it has increased to 5.68 percent in the corresponding month of 2022. Why are tuition fees rising? The average cost of pursuing a degree in the US rose by 497 percent between 1986 and 2018. Tuition fees are rising due to high inflation, a growing demand for foreign education as well as a lack of governmental intervention, and presence of private bodies in the education sector.

Before enrolling at an IIM, students need to know about the cost of studying in IIMs beforehand to take appropriate steps to arrange the college fees. As education inflation has reached its peak, the cost of educational expenses is also on the higher side. What are IIMs? The Indian Institutes of Management, commonly referred to as IIM, is a public business school owned by the central government of India. The IIMs offer several study courses like MBA Executive, doctoral, postgraduate, and undergraduate, as well as business administration-related additional courses.  The flagship program of IIM is the MBA or Master of Business Administration program, which is offered as a one-year global MBA program or a two-year Postgraduate Program in Management (PGP).  Create Education Goal to Study in IIM Average Cost of Studying in IIMs There are several IIMs in India, the prominent three being IIM Ahmedabad, IIM Bangalore, and IIM Calcutta also referred to as IIM-A, IIM-B, and IIM-C, respectively. The MBA fee structure of all the IIMs varies between INR 16 Lakh and INR 27 Lakh.  The IIM MBA fees for the top three institutes are the highest and range between INR 24 Lakhs and INR 27 Lakhs, and for newly opened institutes, the fee varies between INR 16 Lakhs to INR 19 Lakhs.  There is a distinct difference between the fee structure of older and newly built IIMs because the new IIMs are financially backed by the government, unlike the older ones, which bear the maintenance and other expenses by themselves. Components of MBA Fees: IIM Fee Structure The IIM fee structure includes Tuition fees Traveling expenses Boarding fees Personal expenses Library fees Cost of Eating in the Mess  Internet expenses Cost of books and course materials Computer/laptop cost Study tours Alum activity Miscellaneous expenses Students can pay the total fees at one go or opt for a semester-wise payment schedule, whichever they find comfortable. Cost of studying in Top 10 IIMs IIM CampusTotal Tuition FeesIIM AhmedabadINR 24.61 lakhIIM BangaloreINR 24.50 lakhIIM CalcuttaINR 25.00 lakhIIM LucknowINR 20.70 lakhIIM KozhikodeINR 20.50 lakhIIM RaipurINR 16.10 lakh (excluding boarding fees)IIM UdaipurINR 19.00 lakhIIM RohtakINR 17.60 lakhVisakhapatnamINR 17.58 lakhIIM TrichyINR 19.5 lakh An overview of the top 3 IIMs  1. IIM Ahmedabad  IIM Ahmedabad is the country's most popular and most expensive IIM, offering Business & Management Studies. The institute offers several facilities like a hostel, library, cafeteria, labs, gym, music room, wi-fi campus, auditorium, medical facilities, sports complex, and a/c classroom.  The total tuition fee structure for the different courses is. CourseTotal Tuition FeesDurationMBA/PGDM (3 courses – 50 seats)INR 12 lakh - INR 24.61 lakhFor 16 months – 2 yearsExecutive MBA/PGDM (1 course – 140 seats)INR 31.5 Lakh 1 yearMMS (1 course)INR 20 lakh2 yearsCertificate (2 courses – 60 seats)INR 1.57 lakh4 – 6 months 2. IIM Bangalore Established in 1973 with NIRF ranking two and a 100-acre campus area, the IIM fee structure covers fees for personal accident insurance and medical insurance besides the regular fee structure offered by almost all the IIMs. Statistics of Bangalore placement 2022 show that 137 companies visited the campus and made 662 offers. The median and average package offered was INR 31.20 lakh per annum and INR 33.82 lakh per annum, respectively. CourseTotal Tuition FeesDurationMBA/PGDM (4 courses – 635 seats)INR 12.5 - INR 24.5 lakh1 year – 2 yearsCertificate (79 courses)INR 65 k – INR 17.75 lakh2 days – 15 monthsExecutive MBA/PGDM (1 course – 75 seats)INR 23 lakh1-year 3. IIM Calcutta IIM Calcutta ranked 3rd under the NIRF rankings and was the first to be established under IIM legacy. According to the available statistics for 2022, the placement percentage of the institute last year was 100%, as 190+ companies visited the campus, and 631 offers were made to the students.  CourseTotal Tuition FeesDurationMBA/PGDM (3 courses)INR 23.2 lakh – INR 25 lakh2 yearsExecutive MBA/PGDM (2 courses)INR 13.5 lakh to 31 lakh1 yearCertificate (35 courses)INR 2.5 lakh – 12.89 lakh6 months – 1 year Balance the Books by Comparing the Cost of IIMs! An elite collection of management schools in India known as the Indian Institutes of Management (IIMs) are renowned for their demanding academic curricula and superior management education. In India, there are 20 IIMs, each with special qualities and advantages. Here are the IIMs available in India: IIMLocationAnnual Fee for PGP (Latest Available)IIM AhmedabadAhmedabad, GujaratApproximately INR 30 lakhsIIM BangaloreBangalore, KarnatakaApproximately INR 24 lakhsIIM CalcuttaKolkata, West BengalApproximately INR 31 lakhsIIM LucknowLucknow, Uttar PradeshApproximately INR 19 lakhsIIM KozhikodeKozhikode, KeralaApproximately INR 19.5 lakhsIIM IndoreIndore, Madhya PradeshApproximately INR 20 lakhsIIM ShillongShillong, MeghalayaApproximately INR 14.3 lakhsIIM RohtakRohtak, HaryanaApproximately INR 16.9 lakhsIIM RanchiRanchi, JharkhandApproximately INR 16.3 lakhsIIM TrichyTiruchirappalli, Tamil NaduApproximately INR 19.5 lakhsIIM KashipurKashipur, UttarakhandApproximately INR 17.3 lakhsIIM UdaipurUdaipur, RajasthanApproximately INR 20.4 lakhsIIM RaipurRaipur, ChhattisgarhApproximately INR 16.5 lakhsIIM NagpurNagpur, MaharashtraApproximately INR 18 lakhsIIM VisakhapatnamVisakhapatnam, Andhra PradeshApproximately INR 18.2 lakhsIIM Bodh GayaBodh Gaya, BiharApproximately INR 15.5 lakhsIIM AmritsarAmritsar, PunjabApproximately INR 17 lakhsIIM SirmaurSirmaur, Himachal PradeshApproximately INR 11.75 lakhsIIM SambalpurSambalpur, OdishaApproximately INR 13 lakhsIIM JammuJammu, Jammu and KashmirApproximately INR 17 lakhs Let’s have a look at the Top 10 IIMs with their Annual Fee. Remember, IIMs often provide scholarships and financial assistance to eligible students based on various criteria, so prospective applicants are encouraged to check the most up-to-date fee structures and financial aid options on the respective IIMs' official websites. Fees for Indians and foreign Nationals at IIMs 1. IIM Ahmedabad One of India's top business schools is IIM Ahmedabad. The PGP (Post Graduate Programme) and PGP-FABM (Post Graduate Programme in Food and Agribusiness Management) are only two of the postgraduate programs it provides. The annual cost of the PGP program is around INR 30 lakhs for Indian citizens and USD 85,000 for foreign students. 2. IIM Bangalore Another esteemed IIM, IIM Bangalore is renowned for its demanding academic programs. The PGP, PGPEM (Post Graduate Programme in Enterprise Management), and PGPPM (Post Graduate Programme in Public Policy and Management) are all programs offered by the institute. The annual cost of the PGP program is around INR 24 lakhs for Indian citizens and USD 85,000 for foreign students. 3. IIM Kolkata One of the original IIMs, IIM Calcutta is well known for its management programmes. It provides a variety of management courses, including the PGDM (Post Graduate Diploma in Management). For Indian citizens and overseas students, the average yearly cost of the PGDM program is roughly INR 31 lakhs and USD 92,500, respectively. 4. IIM Lucknow The academic offerings and research initiatives of IIM Lucknow are renowned for their variety. It offers courses including PGP, WMP (Working Managers Programme), and IPMX (International Programme in Management for Executives). The yearly cost of the PGP program is around INR 19.25 lakhs (for Indian citizens) and USD 63,500 (for students from other countries). 5. Kozhikode IIM The unique programs and instructional strategies used at IIM Kozhikode are well-known. It provides the PGP, EPGP (Executive Post Graduate Programme), and PGP-BL (Post Graduate Programme in Business Leadership). The yearly cost of the PGP program is around INR 19.50 lakhs (for Indian citizens) and USD 60,000 (for students from other countries). https://www.youtube.com/shorts/SRkKqX7IQF4 6. IIM Raipur One of the most recent IIMs, IIM Raipur, is rapidly rising to prominence. It offers the Executive Fellow Programme in Management (EFPM) and PGP. For Indian nationals, the PGP program's annual cost is around INR 16.5 lakhs. 7. IIM Udaipur The picturesque campus and management programs of IIM Udaipur are well-known. The PGP and PGPX (Post Graduate Programme for Executives) are available there. For Indian nationals, the PGP program's annual cost is around INR 20.4 lakhs. 8. IIM Rohtak The IIM Rohtak is renowned for its dedication to top-notch management education. It offers the Post Graduate Programme (PGP), Integrated Programme in Management (IPM), and Executive Post Graduate Programme (EPGPX). For Indian nationals, the PGP program's annual cost is around INR 16.90 lakhs. 9. IIM Visakhapatnam IIM Visakhapatnam, one of the most recent IIMs, is expanding quickly. The PGP and FPM (Fellow Programme in Management) are available. For Indian nationals, the PGP program's annual cost is around INR 18.20 lakhs. 10. Tiruchirappalli's IIM Trichy The management programs and emphasis on research at IIM Trichy are well-known. Both the PGP and FPM are offered. For Indian nationals, the PGP program's annual cost is around INR 19.50 lakhs. Join our robust WhatsApp Community to get updates on Ed-loans! FAQs Which is the cheapest IIM? The cheapest IIM is IIM Sirmaur with its PGP course charging 11 lakhs per annum. Why IIM fee is high? IIM fees are high because their private bodies fund their institute primarily through tuition fees. They off highly popular because of their brilliant ROIs and advance programmes. The institutes offer quality education for MBA courses that are extremely sought after. It is one of the hardest universities to get admission to due to the rigorous admission process and intense competition. What are IIMs? The Indian Institutes of Management, commonly referred to as IIM, is a public business school owned by the central government of India. The IIMs offer several study courses like MBA Executive, doctoral, postgraduate, and undergraduate, as well as business administration-related additional courses

As we have stepped into 2024, although the year has changed, what has remained constant is parents' worry about rising inflation and education costs. Despite the uncomfortably high inflation (5.69, general, as of Dec. 2023), these rising figures do not reflect the hardship brought on by rising education costs. According to one news article, education inflation is higher(twice) than the inflation rate. Education costs include tuition fees, co-curricular fees, and other fees. Parents can consider the investment a suitable tool to mitigate these worries and the inflation risk.  When parents start investing in their child's future early, it is always beneficial as they will see the magic of compounding over the years. Along with inflation, the return on investment will also rise. One can beat rising inflation by making the right decision at the right time.  Generally, when a person wants to start investing, there are a few parameters that he needs to keep in mind before planning.  What amount does an investor want to invest? The investment amount should be pre-decided, like the amount you are ready to start your journey. (E.g. An investor can start an SIP with an amount as low as ₹100)  What is the time horizon? The asset class to be invested in will depend on the time horizon. Generally, the longer the time horizon, the greater the risk an investor can take and vice versa. Therefore, the investor should decide when he would require the money, and based on that, he can consider the risk he can undertake.  What is the risk appetite of that investor? Every asset class has different risk characteristics. Few asset classes are considered highly risky, such as equity funds, but rewarding, whereas few other asset classes, like debt funds, can be less risky but have low return potential. The risk appetite will depend on factors such as time in hand, the financial position of the investor, the amount of investment, certainty of the cashflows or income, etc. Considering these factors, the investor should decide his risk appetite and which asset he can invest in.  Considering this, the following are a few investment options that people generally undertake:  FD (Fixed Deposit) – A traditional tool of investment that provides steady returns of 5-7% over the period, but the return on FD generally fails to beat inflation.  PPF – A secure investment that provides a 7-8% (est.) return on your investment. It falls under the EEE(Exempt-Exempt-Exempt) concept, which means the principal amount, the interest earned, and the maturity amount of PPF are completely Tax-free.  LIP – Endowment plans are offered by life insurance companies that facilitate both risk protection and investment options, and many people consider these for the child’s investment planning.  Gold – Gold is one of the most popular investment options that act as a hedge against inflation.  Real estate – Although real estate provides decent return potential, it has limitations, such as high-ticket size, high transaction costs, high maintenance costs, illiquidity, etc.  If we look at all the above asset classes, they all come with various limitations, the primary and the most important being their underperformance against the elevated education inflation. Therefore, the investors lose their money in real terms if the investment cannot beat the education inflation, which is often seen in the case of the above asset classes. However, one asset class offers a solution to this and many other problems.   Mutual Funds - Investment in mutual funds is an excellent option. Mutual funds offer different products for the different needs of the investors. There is always a product available for every need of the investors. For example, investors can consider debt funds for short-term time horizons, which offer better return potential than bank deposits with lower risk. Hybrid funds can be considered for medium-term time horizons, providing limited growth potential and portfolio stability. Equity funds are suitable for long-term time horizons, which provide high growth potential with reduced volatility over a longer duration. Apart from this, mutual funds offer benefits such as professional money management, liquidity, diversification, lower ticket size, etc. Thus, parents can start their investment journey by regularly investing through SIP or one-time investment through lumpsum.  Top Performing Mutual Funds Following are some of the top-performing mutual funds from different categories:  Fund Name Category Sub-category Inception AUM  (Rs Cr) Expense Ratio 3Y Return  5Y Return  Nippon India Small Cap Fund Equity Small Cap 01-01-2013 43,816 0.67% 41.76% 30.94% HDFC Mid Cap Opportunities Fund Equity Mid Cap 01-01-2013 56,033 0.80% 32.32% 24.97% SBI Contra Fund Equity Contra 01-01-2013 21,482 0.69% 32.20% 26.29% DSP Nifty 50 Equal Weight Index Fund Equity Index (Large) 23-10-2017 1,004 0.40% 21.79% 18.48% HDFC Balanced Advantage Fund Hybrid Balanced Adv. 01-01-2013 73,349 0.80% 26.29% 19.43% ICICI Prudential Multi-Asset Fund Hybrid Multi-Asset 01-01-2013 30,650 0.84% 25.51% 19.79%  Note – All are Direct Plan and Growth Option; AUM and Expense ratio are as of December 31, 2023; 3Y/5Y returns are annualized and as on January 29, 2024  Source - valueresearch.com  Nippon India Small Cap Fund Nippon India Small Cap Fund is among the best performers and has consistently outperformed the category over the last 1/3/5/7/10 years.  It has delivered the highest returns in the category over the last 7 and 10 years and has been in the top 3 over the three and 5-year period.  The fund has delivered the best risk-adjusted returns over the last three years, depicted by the highest Sharpe ratio.  HDFC Mid Cap Opportunities Fund HDFC Mid Cap Opportunities Fund is the largest fund in the mid-cap space with an AUM of Rs. 56,033 crores and is the only fund in the category to have an AUM of more than Rs. 50,000 crores.    The fund has consistently outperformed the category and the mid-cap index over all the 1/3/5/7/10 years.  The fund has delivered better returns per unit of risk, depicted by the lower standard deviation and the beta compared with the category average.  SBI Contra Fund The fund follows a contrarian strategy while investing in equity and provides exposure to companies of all sizes.  The fund has been in existence for approximately 25 years and has generated a since inception return of 17.13% for its direct plan as of January 29, 2024.  The fund has delivered the best risk-adjusted returns in the category, as depicted by the highest Mean Return, Sharpe Ratio, Sortino Ratio and Alpha.  DSP Nifty 50 Equal Weight Index Fund This fund tracks the Nifty 50 Equal Weight TRI, providing exposure to large-cap equities where the probability for alpha generation is very low.    Compared with the Nifty 50 TRI, the Nifty 50 Equal Weight Index TRI has delivered better returns with lower volatility over a long-term period.  The fund has delivered an alpha of 4.23%, whereas the other funds in the category have barely managed to generate the alpha in the last three years.  HDFC Balanced Advantage Fund HDFC Balanced Advantage Fund is one of the oldest funds in India and is the largest fund in the balanced advantage category, with an AUM of Rs. 73,349 crores.  The fund has been the top performer in the category for over 1/3/5 years and has delivered an impressive return of 16.15% for its direct plan since its inception.  Although the fund has been volatile more than the category, it has delivered a significantly higher alpha of 10.98% compared to the category average of 2.62% over three years.  ICICI Prudential Multi-Asset Fund ICICI Prudential Multi-Asset Fund has the largest AUM of 30,650 crores in the category.  The fund provides exposure to various asset classes such as equities, debt, real estate, commodities, etc.  It has delivered a significantly higher alpha of 11.90% against the category average of 4.70% over the three years.  Note: All the details of the funds mentioned above are of direct plan growth option unless otherwise specified and as of January 29, 2024.   Source: valuereasearch.com  Investing in your child's future will provide a world-class education to help them remain competitive among peers. Here, competitive means allowing them to be well-settled with their career choices and to live a confident and happy life. The sooner you start, the better you can provide for your child eventually.  Choosing the right plan and sticking to your investment decision will reward you with an extensive corpus. Investors can research before selecting any fund or consult a financial advisor who can give investment advice suitable to their risk appetite.  Happy Investing!  Disclaimer - Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The past performance of the mutual funds is not necessarily indicative of the future performance of the schemes. The mutual fund schemes mentioned are only for educational and informational purposes, and no investment is recommended.  Join our robust WhatsApp Community that helps parents invest!

Education loans to pay for your higher education overseas are common and effective; let's look at all the expenses under education loans to help you make the right choice. What are some expenses under education loans? Do education loans only help with tuition fees? Can education loans cover the cost of flights or help pay the living expenses?   Keep reading to find out the expenses under education loans.    One of the main issues facing the majority of Indian students who want to study abroad is how they would pay for their higher education. An education loan makes sure that all of the financial conditions for the application process for an education loan overseas are satisfied within the allotted time limit.  For the majority of students, the cost of an education loan in India for studying abroad is the main topic of conversation when it comes to financing higher education overseas. The information on this page is relevant to both secured and unsecured education loans in India for international studies.  https://www.youtube.com/watch?v=7Y0V6Z0lcJs&t=1s Costs of a typical course abroad for a student loan  One widespread misconception is that student loans do not fully cover the costs associated with studying abroad. This is untrue, though, as all educational loans, whether secured ones from government banks or unsecured ones from private lenders, cover the following list of costs that are essential to the educational process.  1. Student fees  One of the two main components of both forms of education loans in India for studying abroad is the tuition prices charged by foreign universities. An education loan in India for the international study is intended to assist students in covering their tuition costs. In India, all student loan repayments include tuition. Therefore, when deciding on the overall amount of your student loans, you should give top priority to covering your tuition costs.  2. Housing Costs  The term "factors" can refer to a wide range of things. The main living costs for a student include their rent or room and board, food, and costs for other daily necessities like transportation to and from school, a security deposit for housing, etc.  3. Medical Insurance  International students are frequently required to obtain health insurance by many foreign universities. This specific cost is covered by an education loan in India for studying abroad as it is one of the prerequisites for studying abroad for many students. Therefore, while applying for an education loan, health insurance can also be taken into account.  https://www.youtube.com/watch?v=4gTQkdePOWM 4. Flight Tickets  Another significant price covered by an education loan when applying for one overseas is airline tickets to the location of your choice. When quoting the education loan amount to your bank, this component might also be included.  5. Research Aid  You can include this information in the education loan application if your foreign university's offer letter states that you are responsible for paying for excursions and other extracurricular activities throughout the course of your studies. In addition, when applying for both forms of school loans in India, students can include the price of products like books, computers, and other study supplies in their total expenses.  https://www.youtube.com/watch?v=fufyFB9aMQI Does an education loan cover living expenses? The answer is yes, in most cases! Indian education loans for abroad studies typically cover a range of expenses beyond just tuition fees. This can include: Living expenses: This covers your accommodation, food, local transportation, books and study materials, and other daily needs. Travel expenses: The loan may cover flight tickets to your study destination and back. Other fees: This might include visa application fees, health insurance premiums, and even exam registration fees. However, there are a few key things to remember: Loan amount limitations: There might be a maximum limit on the total loan amount you can avail. This limit should ideally factor in both tuition fees and estimated living expenses. Documentation required: You'll need to submit documents like university acceptance letters and estimated living cost breakdowns to secure the loan amount for living expenses. Disbursement process: The loan for living expenses might be disbursed directly to the university or in instalments based on a pre-determined plan. Remember: Carefully research different lenders and compare their loan terms, interest rates, and living expense coverage options. This will help you choose the most suitable education loan for your study abroad journey. With proper planning and the right financial backing, your dream of studying abroad can become a reality! What elements must a student take into account when determining costs?  There is no way to change the loan arrangement because the student loan is a one-time transaction. Therefore, a student needs to be aware of the costs they can cover on their own and those for which they might require a loan. The student's financial stability at the time of study is of utmost importance, so the loan amount should be chosen with that in mind.  Before assessing the costs, a student must take the following into account:  The price of housing in a specific country and whether it will be possible to live in shared housing for a lower cost of living.  Food prices in the city where the university is situated.  Additionally, a student's ability to prepare meals on their own can significantly lower the cost of tuition.  Since academics are not just available on-campus, the cost of eating out or intercity travel will be included in the total fee.  Many regions, including the US and Australia, have cheap used car markets and reasonable gas prices. In contrast, students in countries like Ireland receive discounts on public transportation. All of this requires preliminary research.  In the city where the university is situated, there are opportunities for part-time employment. There are enticing part-time occupations with regulated minimum earnings in several nations. This assists students in paying for a sizable portion of their living costs.  FAQs on Education Loans and Living Expenses What percentage of living expenses does the loan cover? The percentage can vary depending on the lender, your chosen university's location, and your course duration. It typically falls between 30% - 70% of the total estimated living expenses. Can I apply for a separate loan for living expenses? While some lenders might offer a combined loan, you can explore separate personal loans to bridge any gap between the sanctioned amount and your actual living expenses. However, remember the additional interest burden of a separate loan. Are there any living expenses not covered by the loan? Discretionary expenses like entertainment, shopping sprees, or travel beyond academic purposes typically aren't covered. What documents are needed for living expense coverage? Universities' cost of living estimates, proof of accommodation arrangements (if any), and detailed living expense breakdowns are usually required.

As parents, we all want to raise happy, well-adjusted children who reach their full potential. Positive parenting offers a powerful approach to achieve this goal. It's not about spoiling your child, but fostering a nurturing environment that fosters their growth and development. At EduFund, we believe that positive parenting directly contributes to a child's success in education – and ultimately, life. Here, we'll explore what positive parenting is, its benefits, and how to put it into practice, all while laying the groundwork for a bright educational future. What is Positive Parenting? Positive parenting is a philosophy that goes beyond punishment and focuses on building strong, supportive relationships with your child. It's about setting clear expectations, offering encouragement, and fostering open communication. This approach is distinct from authoritarian parenting (strict rules, harsh punishments) and permissive parenting (few rules, limited consequences). Instead, positive parenting creates a balanced environment where children feel loved and respected, but also learn responsibility. Some key principles of positive parenting include: Respect and empathy: Acknowledge your child's feelings and validate their emotions. Boundaries and expectations: Set clear rules and explain consequences consistently. Positive reinforcement: Catch your child being good! Praise efforts and positive behavior. Open communication: Encourage dialogue, answer questions openly, and listen actively. Benefits of Positive Parenting The positive effects of positive parenting are undeniable. Children raised using these principles demonstrate: Stronger emotional intelligence: They understand and manage their emotions effectively. Healthy self-esteem: They develop a positive sense of self-worth and confidence. Improved social skills: They interact effectively with others and build positive relationships. Greater independence and responsibility: They learn to make decisions and take ownership of their actions. Better academic performance: They approach learning with a positive attitude and are more motivated to succeed. These skills translate into long-term success. Children raised with positive parenting are better equipped to navigate challenges, cope with stress, and build fulfilling careers and relationships. Putting Positive Parenting into Action Implementing positive parenting doesn't require drastic changes. Small adjustments can make a big difference. Here are some practical tips: Focus on positive reinforcement: Instead of constantly nagging, praise good behavior and effort. "Wow, you cleaned your room all by yourself! That's amazing!" Use "I" statements: Express your feelings without placing blame. "I feel frustrated when you leave your toys everywhere. Can we work together to find a solution?" Encourage problem-solving: Instead of dictating solutions, guide your child to think critically and find solutions on their own. Practice active listening: Give your child your full attention when they're talking. Validate their feelings and let them know you understand. Set realistic expectations: Consider your child's age and developmental stage when setting rules and consequences. Positive Parenting and Education Planning The principles of positive parenting seamlessly blend into successful education planning. Here's how: Fostering a love of learning: Create positive learning experiences at home through play, exploration and open-ended questions. Encouraging a growth mindset: Help your child see challenges as opportunities to learn and grow. Open conversations about education: Talk about future goals, educational aspirations, and the importance of a strong foundation. Building financial responsibility: Explain the value of investing and how EduFund helps you plan for their education. Join our WhatsApp community to learn more! Conclusion Positive parenting is a journey, not a destination. By fostering a supportive environment and open communication, you'll equip your child with the skills they need to thrive. Remember, positive parenting also contributes to preparing your child for a bright educational future. Explore our tools and resources at EduFund alongside your positive parenting journey, and feel free to share your experiences and ask questions in the comments below! Let's work together to raise confident, capable learners ready to embrace all that life has to offer.

UTI is one of the pioneers of the Indian Mutual Fund Industry. With a quarterly average AUM of Rs 2.72 Lakh crore, the AMC is among the most trusted names in the mutual fund space. The UTI Mutual Fund offers products across asset classes.  Let us get to know about their UTI Nifty 50 Index Fund Scheme.  About UTI Nifty 50 Index Fund  Investment Objective – The investment objective is to invest in stocks of companies comprising Nifty 50 Index and endeavor to achieve a return equivalent to Nifty 50 Index by “passive” investment. However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.   The UTI Nifty 50 Index Fund does not take any active sector or stock exposure that deviates from the composition of the Nifty 50 Index.  Portfolio Composition  The scheme distributes the majority of its investments across financial services, Energy, IT, fast-moving consumer goods and automobiles.  Note: Data as of 29th February, 2024. Source: Value Research  Top 5 Holdings for UTI Nifty 50 Index Fund   Name Sector Weightage % HDFC Bank Ltd. Financial 10.98 Reliance Industries Ltd. Energy 10.29 ICICI Bank Ltd. Financial 7.68 Infosys Ltd  Technology 6.22 Tata Consultancy Services Ltd Technology 4.32 Note: Data as of 29th February, 2024. Source : Value Research  Start a goal for your child's college dreams! Performance Since Inception  Period UTI Floater Fund Nifty 50 TRI (%) S&P BSE Sensex TRI (%) 1 Year 28.03 28.49 24.58 3 Years  15.75 16.15 15.24 5 Years 16.22 16.64 16.48 Since Inception 11.91 12.82 13.03 Note: Data as of 29th February,2024 Source: utimf.com  Fund Manager  Mr. Sharwan Kumar Goyal, who has been managing the scheme since July-2018.  Mr. Ayush Jain is an assistant Fund Manager and has been managing the scheme since May-2022.  Why Invest in UTI Nifty 50 Index Fund?  The scheme is passively managed and invests in stocks that endeavour to generate returns in line with the underlying index, subject to expenses and tracking error. Further, the probability of generating alpha in large cap space is very low due to the availability of a smaller universe of stocks and large base size. Therefore, exposure to large-cap space is recommended through passive investing.  The fund with a track record of over 22 years one of the largest funds in the category fund with one of the lowest tracking error and tracking difference.   Who Should Invest in UTI Nifty 50 Index Fund?  This fund is suitable for Investors  Who are seeking steady capital growth in tune with the index returns.  Who are looking for passive investment in equity instruments comprised in Nifty 50 index.  Ideal Time to Stay Invested   The scheme is suitable for investors with a long-term investment horizon of at least 5 years.  Conclusion  UTI Nifty 50 Index fund is an index-based diversified equity scheme that has delivered a compounded annual growth rate (CAGR) of 11.56% since its inception and the scheme has a relatively lower expense ratio. The UTI Nifty Index Fund offers an accessible option for new investors with a limited budget to diversify their portfolios by investing in India's top 50 publicly traded companies.  Disclaimer: This is not recommendation advice. All information in this blog is for educational purposes only.  Invest Now

UTI is one of the pioneers of the Indian Mutual Fund Industry. With over Rs 2.72 lakh crore average AUM (excluding domestic fund of fund) for quarter ended December 2023, the AMC is among the most trusted names in the mutual fund space. The UTI Mutual Fund offers products across asset classes. Let us talk about the – UTI Conservative Hybrid Fund.  About UTI Conservative Hybrid Fund  Investment objective – The scheme's primary objective is to invest predominantly in debt and money market instruments and part of the portfolio into equity/equity-related securities with a view to generating income and aim for capital appreciation.   Note: There is no assurance or guarantee that the investment objective of the scheme would be achieved.   Investment Process   The Fund aims to earn accrual income by investing approximately 75% of its assets in debt instruments. It follows tactical allocation to invest among corporate debt, government securities (G-Sec), and state development loans (SDLs), guided by the fixed-income strategy of the fund manager.  Source: UTI MF  Portfolio Composition  As a hybrid fund, the funds are allocated to equity, long-term debts, government securities, Cash and Cash Equivalents. As of 29th Feb 2024:  72.63% of the portfolio is allocated to debt  24.36% of the portfolio is allocated to equity,  3.01% of the portfolio is allocated to cash and cash equivalents.  Equity Allocation The equity fund allocated 71.27% to large-cap funds, 25.62% to mid-cap, and 3.11% go into small-cap.   Note: Data as of 29th Feb 2024. Source: Value Research  Top 5 Equity Holdings for UTI Conservative Hybrid Fund  Name Sector  % HDFC Bank Ltd. Banking 2.18 ICICI Bank Ltd Banking 1.40 Infosys Ltd IT 1.33 Axis Bank Ltd Banking 1.06 Bharti Airtel Communication 0.96 Note: Data as of 29th Feb. 2024. Source: Value Research  Debt Allocation:  Top 5 Debt Holdings for UTI Conservative Hybrid Fund  Name Sector  % GOI Sec 7.18 14/08/2033 GOI Securities 12.82 NABARD SR 23I Debenture 7.62 Debenture 6.33 PFC Ltd SR 223 Debenture 7.64  Debenture 4.79 HDFC Bank Ltd SR AB002 Debenture 7.97 Debenture 3.22 REC Ltd SR 220-B FRB 7.69 Floating Rate Bond 3.20 Note: Data as of 29th Feb. 2024. Source: Value Research  Performance Since Inception  Period UTI Conservative Hybrid Fund (%) Nifty 50 Hybrid Composite Debt 15:85 Index (%) CRISIL 10 Year Gilt Index (%) 1 year 13.68 11.49 9.42 3 years 9.80 7.46 4.36 5 years 8.39 9.30 6.21 Since Inception 9.32 8.44 5.61 Note: Fund performance since launch; Inception Date – 16th Dec. 2003. Returns are of direct plan. Source: UTIMF  Fund Manager  Mr. Jaydeep Bhowal holds CA degree from ICAI and also PGDFM from Welingkar Institute of Management, Mumbai. He is the vice president began his career with UTI in November 2009. He has more than 10 years of experience and had been involved in various roles at UTI.   Who Should Invest?  Investors with lower risk appetite, seeking alternative to traditional investment options like FDs.  Investors seeking moderate participation in equity with relatively lower overall portfolio risk.  Why Invest?  Around 75% of the portfolio invested in debt securities with tactical allocation to corporate debt, G sec and SDLs based on overall fixed income strategy of fund house.  Fund manages the bond duration dynamically with investment across various maturities.   It focuses on high quality corporate debt securities to minimize the risk.  Portfolio diversification with distinct asset classes of equity & debt.  Time horizon  Investors with a time horizon of three years and above.   Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Click here to start investing for your child's college! Conclusion  The equity portion of the fund's portfolio is managed actively with a bottom-up stock-picking approach, while the debt portion is managed with a focus on credit quality and liquidity. The fund has consistently performed with a CAGR of 9.32% since inception, while having moderate risk. Investors with low risk appetite can consider this as an alternative to traditional fixed deposits for long term capital appreciation.  Disclaimer: This is not recommendation advice. All information in this blog is for educational purposes only.  Invest Now

The demand for sending your child abroad is prevalent across India. Indian parents value education over and above every venue of life and are constantly looking for ways to ensure the best for their children. Boarding Schools in London provide a unique foundation. These schools are considered the best and are gateways to some of the best universities in the world. So, if you are a parent browsing for the perfect school for your child, then check out our article on the top Boarding Schools in London, with their unique offerings and yearly fees. Dulwich College: Founded in 1619, Dulwich College is a renowned co-educational school offering boarding options for both day and weekly students from ages 13-18. Yearly fees for boarders start at £38,700. Alongside a rigorous academic curriculum, Dulwich emphasizes creative expression, sporting activities, and a strong sense of community. Harrow School: Established in 1572, Harrow School is a prestigious boys' school known for its academic rigour and rich history. Boarding fees begin at £43,920 per year. Harrow offers a challenging curriculum alongside a vibrant co-curricular program that includes sports, music, and drama. Westminster School: Founded in 1599, Westminster School is a prestigious boys' school with a selective admissions process. Boarding fees start at £42,510 annually. Westminster fosters academic excellence while nurturing well-rounded individuals through a diverse range of extracurricular activities. Mill Hill School: Founded in 1807, Mill Hill School is a co-educational boarding and day school for students aged 11-18. Boarding fees begin at £34,975 per year. Mill Hill promotes a strong academic foundation, focusing on developing critical thinking and creativity. St. Paul's Cathedral School: Established in 1649, St. Paul's Cathedral School is a prestigious boys' school known for its excellent academic record. Boarding fees start at £42,000 per year. The school offers a rigorous curriculum alongside a rich co-curricular program that includes music, drama, and various sports. Top Boarding Schools in UK Investing in Your Child's Future: Saving with Mutual Funds Planning for your child's education requires a long-term financial strategy. Boarding schools in London charge a hefty fee, and mutual funds can be a valuable tool for accumulating the necessary funds over time. Mutual funds are professionally managed investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, and other assets. This diversification helps spread risk and potentially achieve higher returns compared to individual stock investments. Here's how mutual funds can aid in saving for boarding school fees: Start Early: The power of compound interest can significantly grow your savings over time. Starting a regular investment plan early allows you to benefit from compounding and potentially reach your financial goals. Discipline and Consistency: Regular contributions, even small amounts, can accumulate significantly over the long term. Professional Management: Mutual funds offer the benefit of professional expertise in managing your investments, allowing you to focus on other aspects of your child's education. Conclusion London's boarding schools provide a unique and enriching learning environment that fosters academic excellence, personal growth, and global exposure. While the fees can be significant, strategic financial planning with the help of mutual funds can make this educational opportunity a reality. Remember, a thorough research of the schools along with seeking professional financial advice are crucial steps in ensuring your child receives the best possible education Invest Now

Planning for college abroad can be exciting, but navigating the financial aspects can be daunting. One crucial term you'll encounter is the cost of attendance. This term refers to the entire cost of studying at a university; it includes tuition, living expenses, books, food, accommodation and other necessary costs that a student may encounter while at college. Let's do a deep dive and understand what the cost of attendance is, what it includes and how the cost of attendance is calculated. What is the Cost of Attendance? The COA is the estimated total cost of attending a college or university for one academic year. It considers tuition fees as well as living expenses like accommodation, food, books, and miscellaneous costs. Think of it as a college's budget blueprint for a typical student. Use the College Cost Calculator to Find Out the Cost of Attendance for Any University! What's included in the Cost of Attendance? The core components of the cost of attendance are similar across countries, but there might be slight variations. Here's a breakdown: Direct Costs: These are fees paid directly to the institution. They include: Tuition and fees: This is the core academic cost, varying significantly based on the program and college. Housing: On-campus residence halls or dorms come with a fixed fee. Meal Plans: Many colleges offer meal plans for on-campus dining, with varying costs depending on the meal frequency. Indirect Costs: These are estimated expenses for student needs beyond the college. They include: Books and Supplies: Textbooks, notebooks, and course-specific materials. Transportation: Commuting costs (buses, passes) or personal vehicle expenses (fuel, insurance). Personal Expenses: Laundry, toiletries, phone plans, entertainment, etc. Example of US University and its Cost of Attendance Let's consider New York University (NYU) amongst USA universities. Their undergraduate COA for the 2023-2024 academic year is around $83,280. This includes: Direct Costs: Tuition and fees: $58,328 Room and board (on-campus): $24,952 Indirect Costs: Books and supplies: $1,800 Transportation: $1,200 Personal expenses: $7,000 (estimated) Example of UK University and its Cost of Attendance The UK system has tuition fees set by the government, with some variation between UK universities. For instance, University College London (UCL) estimates a COA of £29,000 (approx. ₹33.8 lakh) for international undergraduates in 2023-2024. This includes: Tuition fees: Around £19,000 (approx. ₹22.3 lakh) Living expenses: This can vary depending on location and lifestyle, but UCL estimates around £10,000 (approx. ₹11.7 lakh) for accommodation, food, and other costs. Example of Canadian University and its Cost of Attendance Universities in Canada generally have lower tuition fees compared to the US. The University of Toronto estimates a COA of CA$30,000 (approx. ₹1.7 lakh) for international undergraduates in 2023-2024. This includes: Tuition fees: Around CA$20,000-25,000 (approx. ₹1.15-1.45 lakh) depending on the program. Living expenses: Around CA$10,000 (approx. ₹58,000) for accommodation, food, and other costs. Key Differences to Consider Government Support: The US has minimal government support for undergraduate education, leading to higher tuition fees. The UK and Canada have a mix of government funding and tuition fees, resulting in a generally lower COA. Living Expenses: The cost of living in major cities like New York can significantly inflate the US COA compared to smaller towns in Canada or the UK. Consult an Expert FAQs Is the COA negotiable?  Generally not. However, some colleges might offer merit-based scholarships or need-based financial aid that can reduce your overall cost. Can the actual cost be different from the COA? Yes. Your spending habits can affect indirect costs. You might find cheaper housing options or save on transportation. How do I find the COA for a specific college?  Most colleges prominently display the COA on their website's financial aid section. Is studying abroad always more expensive than in India?  Not necessarily. The COA can vary depending on the college, program, and lifestyle choices. Does the cost of attendance change every year? Yes, cost of attendance increases every year as the cost of studying rises. Due to inflation and high demand for universities across the world, the cost of attendance for most universities goes up by 3-4% annually.

Your child needs a good school to be educated and gain skills to manage life challenges and become a better person. But it's tough to decide which is the best school for your child. The dilemma strikes between choosing a boarding school or day school.  The boarding school or day school debate is not new but is an essential pillar to choosing what is best for your child. Before we compare both the categories, let us have an understanding of what a boarding school and a day school are.  What is a Boarding school? A boarding school refers to an academic institution where students can stay full-time and do all their school activities. The students and teachers both stay within the school campus in their particular hostels.  A boarding school pays attention to holistic student development apart from academics. There are also girls-only or boys-only boarding schools within India that cater to the education of a particular gender.  Best International Boarding Schools in India Read More What is a Day school? A day school refers to an educational institution where students study within their particular classes throughout the day hours. They involve themselves in all the co-curricular, sports, and academic activities while staying in their houses.  The general day schools run from morning and go up to afternoon when teachers impart education with the primary focus of polishing the academic background of the students. Once school is finished, students can go back to their respective homes and spend time with friends and families.  Benefits of Day Schools Read More Boarding school or Day school? Boarding school and day school debate has been constant in the field of education. As the two institutions of giving education are different, parents often remain conflicted when it comes to choosing a school for their child.  The central and most important aspect of education refers to the round development of students. It is something that both these schools and boarding schools can ensure. But, there is an additional breakdown of boarding schools or day schools that may just help you make an informed decision as a parent.  Pros of Boarding school Let us begin by taking a look at the advantages of a boarding school for your child:  A boarding school provides round-the-clock development and education. They are strict about homework so you can rest assured that your children are getting it done in an environment free from destruction.  Boarding schools help foster independence. It cultivates self-reliance and gets the children used to the concept of staying away from home.  It is a perfect solution when it comes to busy parents. It provides the ideal solution for career-concentrated parents who are conscious that their kids are adequately supervised and encouraged to take part in many out-of-school activities.  Cons of Boarding school Now, let us understand the disadvantages of boarding schools:  Homesickness is going to strike the students at some point. They will stay away from home in an unfamiliar environment for the first time and it will take some time for them to get used to the new situation.  The cost of boarding schools is significantly higher. It costs a lot more than day school.  Parents think that they will be less involved in the upbringing of their children. They will relinquish many decisions that they would normally consider about their child. Pros of Day school Let us turn our attention to the day schools now. Here are some of the advantages:  You are going to see your kids every night and every morning when they wake up. Your kids can discuss any concerns with you.  The cost of day school is much more affordable than boarding school. It is one of the major arguments when it comes to the favor of sending your kids to day school apart from boarding school which is quite cheaper.  Cons of Day school What comes with advantages also comes with some disadvantages. Here are some of them:  Day school puts more demands on your time. This indicates that if you are a career-oriented person it will make it challenging for you to put the required time into taking care of your children.  Day schools also anticipate more parental involvement in parent-teacher meetings and other such occasions.  Daily transportation costs and daycare activities are other factors to consider when sending your child to a day school. How to make a decision: Boarding school or Day school? If money is not a restriction for you and you look forward to your kid being entirely immersed in the educational environment, a boarding school has much more to offer and is worth considering. On the other hand, a day school is the right option for you if you want to be more involved in daily educational activities!  FAQs Is boarding school better than day school? Boarding schools are a great option for parents who are constantly moving and want to offer their kids stability. Boarding schools provide a holistic learning environment and can do wonders for your kids' routine and, development growth. Both have their advantages and disadvantages, based on your preference you can opt for the type of schooling that agrees with your kid and your lifestyle. What are the advantages of day school than boarding school? The biggest advantage of day school is that your child can spend more time with you at home. They can develop hobbies after school, enroll in classes, and even develop social skills and networks separate from their school life. Is boarding school good or bad? Boarding schools have their pros and cons. Pros: They are great learning institutes that teach independence, and routine and contribute greatly to one's development and growth. Cons: Students may experience peer pressure, and separation anxiety and may experience loneliness because they are away from their parents and family.

Surprisingly, INR 1 lakh in 2001 is only worth about INR 27,000 today due to inflation. This means that the effect is exactly like compound interest since inflation happens on top of inflation from the prior year. In this blog, we'll examine the reasons why this happened as well as what will be the value of 1 lakh after 20 years. What will be the value of 1 lakh after 20 years? Simply said, with 1 lakh rupees of money 20 years ago, you could have bought a lot more than you can today. As a result, even if you can acquire 1 lakh rupees or more after saving for 15, 20, or 30 years, its actual value would be substantially lower.1 lakh would be worth roughly INR 48,000 in 15 years, assuming a 5% inflation rate. Additionally, the value decreases even more with a longer time horizon. Assuming an annual inflation rate of 5%, the value of one lakh will be about INR 37 thousand, INR 29 thousand, and INR 23 thousand after 20, 25, and 30 years, respectively. The answer is to set aside money that is adjusted for inflation. You must first inflate the goal's cost to determine the criteria for that. Start a SIP after that to begin saving for the inflated goal cost. How can SIP make you rich? SIP can be used to invest in long-term equity. You may use it to routinely make small mutual fund investments without attempting to time the market. It would be advantageous if you kept up with SIPs during both the bull and bear market periods to accumulate money. Let's take a look at an example of how SIP may make you rich Think about investing INR 10,000 in an equity fund every month. You may build an INR 3.53 crore corpus if you invest just INR 10,000 per month through a SIP in an equity fund over 30 years. Compounding power increases money and helps you become wealthy. To develop a sizable corpus for retirement, you will need to start saving early so that you may do so throughout your working life. Please be aware that we've projected a 12% average return from the equity fund. The markets and the fund might affect actual results. Value of 30 lakhs after 20 years READ MORE What is inflation? Inflation is sometimes quantified in generic terms, such as the overall increase in prices or the increase in the cost of living throughout a country. However, it may also be computed more precisely for certain products, like food, or services, such as haircuts or travel expenses. Inflation, regardless of the setting, is a measure of how much a certain set of products and services have grown in price over time. According to inflationary pressure, you should expect to pay more this year than you did last year for the same products and services. You can benefit if you had the assets before the price increase, such as houses and stocks. But your purchasing power decreases if your income does not keep up with inflation. Over time, inflation increases your cost of living, and if it is severe enough, it may be detrimental to the economy. For a nation's economy, high inflation has far-reaching effects. Calculate Mutual Fund SIP Returns Assessing the impact of inflation Let's calculate how much you would need to have in 10, 15, 25, and 30 years to equal the wealth valued at INR 1 lakh now. In 10 yearsIn 15 yearsIn 20 yearsIn 30 yearsEquivalent Corpus22.85.47.6Multiplication Factor22.85.47.6 Consider your child's further education as an example. Assume it costs INR 20 lakh at the moment. Assume once more that he would attend college in 15 years. Now you need to calculate how much this education which currently costs INR 20 lakhs will cost in 15 years. Utilize the 2.8 multiplicands from the chart above. To pay for your child's further education after 15 years, you would need a corpus of (INR 20 lakhs * 2.8) = INR 56 lakhs How to fully secure yourself and your family's future? You need to be more calculated and cautious if you're going to save money for your post-retirement lifestyle. In addition to inflation, you must take into account the likelihood of surviving past your planned retirement age and changes in interest rates. You should review and reevaluate your goals. Working with actual figures is necessary. You may speak with financial experts at EduFund if you're unsure about where or how to invest. By using EduFund to invest your money, you can support the dreams of your kids. Install the EduFund app on your device to book a free consultation call with the experts. To avoid having their child's bright future ruined by education inflation, parents may start saving for their child's college education early on. FAQs What will be the value of 1cr after 20 years? If we assume an inflation rate of 5%, the worth of Rs 1 crore after 20 years is about Rs 37 lakh! What will be the value of 1 cr after 15 years? If we assume an inflation rate of 5%, the worth of Rs 1 crore after 15 years is about Rs Rs 48 lakh. What will be the value of 1 cr after 30 years? The value of 1 Cr in 30 years will decline and become Rs. 23 lakhs due to inflation. What will be the value of Rs. 1 lakh in 15 years? 1 lakh would be worth roughly INR 48,000 in 15 years, assuming a 5% inflation rate. What is inflation? Inflation is sometimes quantified in generic terms, such as the overall increase in prices or the increase in the cost of living throughout a country. TALK TO AN EXPERT

Planning the investment journey is an important decision that one makes in their lifetime. All of us invest to achieve important goals such a buying a house, buying a car, financing children’s education, getting married, retirement planning and many more. Apart from the financial element here, these goals are also emotionally important to us. As such, we make sure to put in the best research and invest our money. Mutual funds are a popular choice amongst investors, given their returns, liquidity and professional management. An important question that comes up in the minds of us investors here is, ‘What is the right time to invest in mutual funds? At the outset, let us answer this question – the moment you decide to start your investment journey is the right time to invest in mutual funds. Before we delve further into this, it is important we understand more about mutual funds. Let us begin with the basics! Investment in mutual funds can be done in 2 ways! SIP - Systematic Investment Plan   Lumpsum.  SIP – is a pre-decided amount that will be deducted periodically from the registered bank account on the specified date.  Lumpsum: a single sum of money, typically invested at one time rather than in smaller, periodic instalments.  Now let us look at the parameters that one should bear in mind before planning their investments (Note: these parameters are not all-inclusive but are among the important ones).  Purpose of Investment:  When you start investing; the investment objective should be clearly defined. Distinguish if your goal and its time horizon are definitive or flexible. If you aim for higher long-term returns, you should be open to taking on more risk and might consider investing in pure equity funds. On the contrary, if your goal is capital protection, you can consider low-risk investments that offer relatively lower returns.  Investment Horizon:  Different categories of mutual funds are available depending on your time horizon, with debt funds suitable for short-term and pure equity funds for a long-term horizon. Mutual funds do not come with any lock-in period except ELSS funds, which have a lock-in period of three years. An aggressive or riskier portfolio can be built if your investment horizon is longer, but if your investment horizon is relatively shorter, then conservative funds are more apt.  Let us understand the different horizons (Note: these serve only as a general point of reference and can vary based on personal factors)  Short-term Investment Horizon: The short-term investment horizon refers to an investment expected to last about one to two years. This investment would be appropriate for investors whose retirement is near, may need large sums of cash soon and need to park their money. Debt funds can be a suitable choice for this type of horizon as they are relatively less risky and can be liquidated more easily.   Medium-term Investment Horizon: The medium-term investment horizon refers to an investment expected to last about three to six years. This investment would be appropriate for investors who want to save for their personal goals such as buying a car, school/college fees or marriage. Given a medium-term horizon, hybrid funds can be considered suitable investments as they provide exposure to both equity, which provides higher return potential and debt, which provides portfolio stability.  Long-term Investment Horizon: The long-term investment horizon refers to an investment expected to last six or more years. Goals such as wealth creation, buying a house and a child’s education planning are generally considered long-term. Pure equity funds are appropriate instruments in the long term as volatility smoothens out, providing balanced risk-adjusted returns.   Risk tolerance: Every fund has different risk characteristics. Few asset classes are risky, such as pure equity funds, whereas other asset classes, like debt funds, are relatively less risky. Depending on its category and style of management, each mutual fund carries a unique amount of risk. An investor should decide which asset he can invest in depending on his risk appetite and financial ability.  Coming back to our primary argument of ‘What is the right time to invest?’ and why it is advisable to start as early as possible. The answer is simple – Compounding. Postponing the investment diminishes the power of compounding.  Let us understand the power of compounding with a simple example of three friends who invest Rs. 2000 per month. Their retirement age is 60, but they start investing at different ages.  Person Age Investment term (years) Investment Amount (INR) Future Total Value at Retirement (INR) A 25 35 8,40,000 1,29,90,538 B 30 30 7,20,000 70,59,828 C 35 25 6,00,000 37,95,270 Source: EduFundNote: Assumed rate of return is 12% p.a.  Even though they have all earned the same rate of returns per annum on their investment, A, who started investing early, has a considerably higher corpus at retirement. Another surprising fact is if ‘A’ stops his SIP when he is 55 (i.e. a 30-year period) and leaves that amount to compound till he is 60, he still would have a higher corpus than ‘B’ and ‘C’ of Rs. 1,24,41.828. Therefore, starting the investment journey early is a boon if you want to build a considerable corpus for your financial goals.  Join our WhatsApp community to learn more! To conclude, there is no perfect time that is ideal for an investment. We should cultivate the habit of investing regularly and with discipline. The two mantras to achieve your financial goals are: The best time to invest is now, and the best way to invest is regularly.  Start Early, Invest Now!