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How much I need to save to send my child to Harvard University is one of the top queries of a parent who wants to send his child abroad. Harvard is considered one of the best universities in the world, offering varied graduate and undergraduate programs like business administration, business management, bioengineering, law, economics, arts and science, sociology, etc.  Students dream of studying at this university but only a few with academic excellence are given the chance to step onto the campus to study and fulfill their heart’s desire.  Imagine if your child is one of the selected few who have managed to gain entrance to this top university. But what happens if they are unable to enroll just because they do not have the required funds?  At such times the first thought that crosses the mind of a parent is that it is necessary to plan and save to send my child to Harvard University from an early age. Start Investing in Mutual Funds Steps required to plan and save for sending a child to Harvard University How much I need to save to send my child to Harvard University is a question that can be answered by following the subsequent steps: Know about the current cost of education at Harvard University When your child starts showing an affinity for a specific course it is the right time to start planning and saving for his further studies. Be aware of the cost of studying at Harvard University, for example, on average the fee structure of most of the 3-year and four-year academic courses varies between $50,000 - $70,000 (Rs. 40 to 55 lakhs). Factor in the expected expenses  Tuition Fees:  Identify the tuition fees and the other mandatory fees  Room and board: Most of the students prefer to live on campus as it is less expensive compared to outside accommodations. It also offers easy access to meals, classes, and extracurricular activities which is a blessing for students who have traveled from different parts of the world to this esteemed university Transportation costs: If the student is living out of campus then the transportation cost should also be added to the total cost Food expenses: Factor in the food expense for both on-campus and off-campus scenarios Education inflation: You need to add the inflation rate (minimum 7%) to the total cost. You don’t need to guess - you can calculate this cost by using the College Cost Calculator for Free!  Calculate Cost of studying in College Calculate the average costs Calculate the average costs of studying at Harvard and identify how much money you need to save to send (\your child to Harvard University.  Go through all the expected costs and identify an average amount that you need to shelve out for instance 60,000 dollars (Rs. 47 to 48 lakhs). Now calculate how much time you have before sending your child abroad. Get a rough estimate about the amount you need to save every year, for instance, 60,000 dollars/8 years which amounts to 7500 dollars per year (Rs. 5- 6 lakhs) Effect of compounding Make the most of the compounding as it will reduce the principal amount to a great extent and magnify your returns. If a parent wants to save 60,000+ dollars, she will have to shelve only an average of an estimated 5,500 dollars instead of 7,500 dollars @ 5% interest per annum for eight years. Research the best available saving option that will help to save with better interest rates. Or you can talk to an expert to understand how much I need to save to send my child to Harvard University. It is a step in the right direction as it helps parents to plan and save effectively within their budget with the help of India’s first college cost calculator and with a curated plan to achieve that target.  Plan and start investing Parents who start planning for their child’s future from the very beginning have an additional advantage over parents who realize the importance of saving at a later stage. If you are one of the late investors do not panic, you can still make some well-advised investments that can help you make up for the lost time and get the required help in the planning and saving process for the child’s brighter future at Harvard University. Start Investing in US Market FAQs How much does it cost to send your kid to Harvard? The total annual cost to attend Harvard University, including tuition, fees, room, and board, was approximately $76,000. How much do you need to donate to get into Harvard? Donations to Harvard University, while they can have an impact on the institution, are not a direct means of securing admission. Harvard, like other reputable universities, has a competitive admissions process based on academic excellence, personal achievements, and other factors. Admission cannot be guaranteed solely through donations. Is Harvard expensive for Indian students? Yes, Harvard University's tuition and living expenses can be relatively expensive for Indian students due to currency exchange rates and the overall cost of living in the United States. However, Harvard does offer financial aid and scholarships to international students, which can significantly offset the costs for those who qualify. How do I raise my child to go to Harvard? Raising a child with a strong foundation for potential admission to Harvard involves fostering a love of learning, encouraging curiosity, developing leadership and community involvement, and maintaining excellent academic performance. Focus on their interests, extracurriculars, and character development while also allowing them to explore and pursue their passions.

Canada is a trendy destination for higher studies for Indian students because of its affordability and immigrant-friendly nature. As of 2021, more than 8 million immigrants living in Canada have permanent residency, which is about 21.5% of the total population of Canada.  While it is a dream destination, there are many hidden costs of sending your child to Canada that you may not be aware of and can strain your budget while planning. Cost of sending your child to Canada The cost of sending your child to Canada to study varies because of many factors like the province, choice of university, living standards, scholarships or grants, etc.  But the average tuition fee of a university is roughly ₹70-95 lakh for the entire duration of the course in the top 10 universities other than the University of Toronto, which usually comes on top of the list. This cost can easily go up to ₹1.2 - ₹1.5 crores depending upon the course, lifestyle, and the growing retail and education inflation on the market. Why Canada is the Best Country to Study Abroad? Read More Expenses before departing for Canada There are various other expenses that most people don’t discuss. Here are some things you’ll be spending on before your child even departs for Canada (other than their expenses): Take Education Loans for Studying Abroad 1. English Language proficiency tests: Most institutes require an English language proficiency test at the time of application itself. There are a few types of these. TestRegistration feesIELTS₹14,700TOEFL₹14,000GMAT₹18,800GRE (general/subject)₹16,600/12,500CAEL₹11,000 https://www.youtube.com/watch?v=x9B8449Iuw4 2. Guaranteed Investment Certificate or GIC GIC is one of the financial proofs used to obtain a student visa for Canada. The students must purchase a special guaranteed investment certificate (GIC) for CAD 10,200 (₹6,26,000) from one of the partnering banks, such as Nova Scotia Bank, ICICI Bank, SBI Canada Bank, or CIBC Bank, to adjust their living expenses for the first year. Banks also deduct approximately CAD 200 (₹12,300) as administrative fees (depending on the bank).  Immediately upon arrival in Canada, the student is given CAD 2000 (₹1,23,000). The students will then get CAD 8000 (₹4,91,000) in 12 equal installments to cover their monthly living expenses. https://www.youtube.com/watch?v=2d3XNHbB8II 3. Application Procedures  Depending on your program, each institution charges an application fee. It can vary between CAD 45 to CAD 200 (₹3,000-13,000) for international students. In addition to your child’s academic or work experience transcripts, they must submit their language test results to each university when applying. Can your child study MBA in Canada for under 40 Lakhs? Read More 4. Application for a study permit The application for a study permit costs CAD 150 (₹9,200), and the cost of biometrics (photograph and fingerprints) is CAD 85 (₹5,200). https://www.youtube.com/watch?v=nyV0rwJu-7c 5. Application for medical tests Medical tests are a part of the visa process. The Canadian embassy may require to choose a doctor from the panel that the Canadian government has suggested and furnish all the results of the listed exams. You must pay the doctor's fees, special tests, radiologist, and any necessary treatment. Masters or PGDM in Canada? Read More 6. Booking the flight ticket The final expense before leaving for Canada is the flight tickets. These flights can cost anywhere between ₹1-2 lakh depending upon the duration, place of departure, etc. https://www.youtube.com/watch?v=MwclWJ8Q2ZE Expenses after arriving in Canada After you’ve paid your child's tuition fee for the first year and the other expenses before sending them. The first thing is the living expenses. Living expenses can cost around ₹60-80 lakh (for the entire duration) depending on the lifestyle and the city you’ve chosen. Cost of accommodation, travel expenses, health insurance, utility bills, and miscellaneous expenses are living expenses. 1. Accommodation Living on a university or college campus: Staying on campus in dorms, shared rooms, or private room is the most cost-effective accommodation. It cuts down your transportation costs. The estimated cost of living in Canada is between CAD 3,000 to 7,500 (about ₹1,80,000 to 4,50,000) per year.  Living in rented accommodation: If you wish to live off-campus, keep in mind that you will need to pay two months' worth of rent (the first and last months' rent) and a damage deposit before moving in. A private apartment in Canada can cost roughly CAD 8,000-10,000 (₹5-6 lakh) per year, not including other expenses like internet, electricity, food, and furniture. 2. Health insurance International students must have health insurance that covers them in Canada and offers round-the-clock, seven-day-a-week medical care. However, health insurance rules depend on which province. The cost could range widely, from ₹35,000 to ₹55,000 per year (CAD 600 to CAD 900). 3. Other expenses The average daily expenses per month can cost as follows: Food (Groceries & Eating out) - CAD 300 (₹18,500) Phone & Internet - CAD 50 (₹3,000) Public Transport - CAD 80 - 250 (₹5,000- 15,000) Entertainment - CAD 150 (₹10,000) These are rough amounts and they will vary a lot on an everyday basis. The hidden costs of sending your child to Canada can disrupt your budget! But with the right planning for all these expenses, you can make studying your child in Canada as easy as a walk in the park. Start saving and planning for your child’s dreams. Talk to an Expert FAQs Why is Canada popular for higher studies? Canada's affordability and immigrant-friendly environment attract Indian students. Over 8 million immigrants have permanent residency, about 21.5% of Canada's population. What are the hidden costs of studying in Canada? Beyond tuition, various hidden costs arise, including language proficiency tests, GIC, application fees, study permit applications, medical tests, flight tickets, living expenses, accommodation, health insurance, and daily expenses. What are the expenses upon arrival in Canada? Post-arrival expenses encompass living costs, accommodation (on-campus or off-campus), health insurance, and daily expenses for food, phone, internet, transportation, and entertainment.

Parents go above and beyond for their child’s dreams. They spend a significant amount of money on their upbringing to ensure their child does not lose out on any opportunity. But, while looking at short-term goals like buying a laptop or a phone, parents forget to save for long-term goals like their college.   Making early savings plans for your child's further education is important because:  The cost of education is rising fast  A student loan may not be the best choice for your child’s future  Expansion of career options  The rise in competition and aspirations  Increase in options for foreign education  Source: pexels How you can save to send your child to Yale University in the US? Costs to send your child to Yale University Over the past few decades, the expense of attending college has been steadily rising, and few institutions are immune.  Private, non-profit four-year institutions graduate some of the best-earning students and have some of the highest four-year graduation rates.  During the 2019–2020 academic year, the average tuition fees at Yale University were rough ₹44 lacks, housing cost ₹7.4 lacks, and boarding cost ₹6 lacks for a total of ₹57.5 lacks. The school also calculates that students spend around ₹3 lacks annually on books and other personal expenses. It lists a ₹10,000 annual student activities fee, bringing the whole cost of attendance to about ₹60 lacks.  The cost of attendance also included options like senior class dues (₹9,500) and health insurance (₹2 lacks).   Fast forward to 2020-2021, the average cost of attendance given by the university itself rose to ₹61 lakh, which includes fees, textbooks, room, and boarding. But that’s not the price you’ll pay 18 years from now, this ₹61 lakh will increase by 3% every year growing to more than ₹1 crore annually by the time your child is ready to head off for college. And if your child gets a 4-year degree, that means you’ll be on the hook for over ₹4 crores. Now that you know the cost of studying at Yale University, it is easier to start saving for it. Get Education Loans to Study Abroad Now let’s see how much you’ll need to save To fully fund your child’s education at Yale University, you’ll need to save about ₹1.5 lahks a month or more than ₹17 lahks a year every year until they turn 18. That’s more than ₹3 crores out of your pocket.   Now, the whole idea is that these numbers are nearly impossible to manage along with all other expenses of raising your child.  Hence, you need to understand that you need long-term investment plans to fulfill your child’s educational dreams. The only way to make these dreams a reality is by planning your finances and investing in plans like mutual funds via SIPs, investing in US Markets, and much more.  Let’s assume you are ready to start investing for your child’s future studies and start putting money in a SIP right away for the next 18 years – assuming that's when your child goes off to college.  Through our cost college calculator, can find out the future cost and how much you need to save up when that time arrives. By investing ₹11,000 every month in SIP for the next 18 years, you will be able to collect ₹3 crores* by February 2040, or you can use the lump sum method and invest about ₹5.4 lacks right now to earn up ₹2 crores by June 2040. Depending upon your time horizon, fund collection as well as market fluctuations, your returns will differ.   Long-term investing options are great for parents who are looking at college for 8-10 years or more. But if your child wants to go to Yale University in 1-2 years, then no worries, you can approach a financial expert to figure out the best course of action. Your child can apply for scholarships and grants or you can also explore the options that Yale University offers for financial aid. There is always an option for education loans that offer attractive interest rates.  Whether it's Yale or Harvard, saving early and establishing a good strategy for your children's educational goals is the key to success. Delaying the journey even by a year could cost you dearly! In the times we live in, education is expensive and cannot be compromised at any cost! Talk to an expert FAQs How can SIPs and lump sum investments help save for Yale University education? Investing ₹11,000 monthly for 18 years through SIP can yield ₹3 crores by February 2040. Alternatively, a lump sum investment of ₹5.4 lacks now can grow to ₹2 crores by June 2040. Why is early saving and strategy important for educational goals? Early savings and a well-thought-out strategy are crucial due to the high cost of education. Delaying the savings journey can lead to significant financial implications. What's the takeaway for parents? Plan ahead, explore funding options, and start saving early to secure your child's educational dreams, even for elite institutions like Yale University.

Indians flock to top universities in the UK like Oxford University, Cambridge University, University College London, Edinburg University, King’s College London, etc. Over 84 UK universities are listed in the QS World University Rankings 2021, each providing a distinctive experience with committed teachers, vast facilities, and practical resources. It's no wonder, the UK is one of the most sought-after destinations for studying abroad for Indian students. Let’s find out how you can plan your child’s masters in the UK with them. What is the cost of studying in the UK?  It's crucial to be realistic about the costs of studying in the UK, especially if you're going to pay for it. You'll need to factor in their living expenses and tuition.  As of 2022-2023, the cost of a master's degree in any field in the UK can cost somewhere between ₹40-90 lakh. For instance, Oxford University costs about ₹50-60 lakh, Cambridge University ₹60-65 lakh, and Manchester University costs around ₹40-45 lakh.   There are options for outside funding options like grants and scholarships. Also, keep an eye on deadlines because your child might need to submit a personal statement or a sample of their work for some scholarships, which require an early application. These options may lessen the expense but may not be enough to cover the entire cost of attendance such as living expenses and accommodation. https://www.youtube.com/watch?v=o-xEGg3N0Os Talk to an Expert Living expenses in the UK  Living expenses are a very relative number, it depends on the kind of lifestyle and expenses one wants to have, whether they want to live luxuriously or on a budget. This also depends on the affordability of the student as well as their parents.   Now, the average living expense of a Master’s student in the UK is somewhere around ₹30-40 lakh throughout the degree.   Your child can cover part of the fees by working part-time jobs while attending school. But be mindful of their visa limitations that will cap the number of hours they can work. https://www.youtube.com/watch?v=sRiktJ_KLmo How to save for these costs?  There are a few long-term as well as short-term ways to help you save for your child’s Master's in the UK.   One simple way is to divide the total amount, which supposes is ₹1 crore, and put aside around ₹40,000 per month or about ₹4.5 lacks every year for 18 years and start saving when your child is young. Invest your money, either for 18 full years or even a shorter time. SIPs can bring you incredible returns in 18 years if you keep investing for the future.  The last and tougher option is to take an education loan at the time of application and pay it back after. Now that’s not an ideal option because of the high-interest rates. Source: pexels The application process for the UK  1. Solid undergraduate degree or related work experience  UK universities prefer candidates for master's programs to have a strong undergraduate degree, ideally in a related or relevant field. However, some courses, especially those that are more artistic, like art, may call for the submission of a portfolio. Others might need to be interviewed.   Because of the pandemic's impact on university operations, interviews are now far more likely to take place online, which is extremely cost-effective for international students.  2. English proficiency test  A solid command of the English language is another prerequisite for master's studies in the UK. Your child will need to pass an English language exam, such as the TOEFL or the IELTS. Check which exams and at what level the universities accept.  3. The application procedure differs for each university  Every university in the UK has a very different application procedure for master's degrees. The deadlines for applications may vary greatly. For more information on the deadlines for the universities, your child is applying to, visit their websites or consult an expert to help them shortlist or understand the different requirements of studying abroad.  Some of the most prestigious universities will need applications to be submitted fairly early in November, while others may accept applications through the summer if there are still openings. Some applications might not even have a deadline, but it's best to submit them early because the course may fill up.   4. Recommendations are integral   Most colleges will want recommendations. These will often be two professors or other academic advisors from your child's prior course. You might also want to provide a reference for your job. You must ensure that the people you are proposing are willing to do so and can do so by any deadlines.  5. Customize your statement of purpose for every university   Make sure your child's statement of purpose has been customized for each institution they are applying to. Make them justify why their experience is perfect for the particular course the institution is offering.  6. Emphasize any prior relevant experience  It is important to emphasize in the application, any work experience that is relevant to the course or they should emphasize their transferable skills if the master's program they are applying for is entirely unrelated to their prior education or professional experience.  Home to some of the best universities in the world coupled with its new post-study work visa, the UK is fast becoming one number country for higher education. While you can’t reduce the cost of studying for a master's in the UK, you help your child pay for it when the right arrives! Start saving to give wings to your child’s masters!  FAQs Why do many Indians choose the UK for higher education? The UK offers top-ranked universities, committed faculty, comprehensive resources, and a diverse learning experience. Over 84 UK universities are listed in the QS World University Rankings. What is the application process for UK universities? The application process varies by university. It generally includes a strong undergraduate degree, English proficiency tests (TOEFL or IELTS), recommendations, customized statements of purpose, and relevant work experience. What's the key takeaway for parents? Planning and saving early is crucial for financing your child's Master's education in the UK. Consider various funding options and prepare well for the application process to secure your child's educational dreams. TALK TO AN EXPERT

Your children have completed their bachelor's and are now thinking of pursuing a management course. MBA or PGDM? Is that the question they've been looking for an answer to? Then let us help you figure out the best option for your child. Difference between MBA and PGDM Every student has certain preferences with respect to the duration they want to invest in that particular course, location, future prospects, etc. Here are some characteristics of both MBA and PGDM which will help you understand how they're both different. By going through these differences, you can help your child choose the option that works best for them. Categories PGDMMBADuration 1 year2 yearsQualification Diploma CourseDegree CourseRequired Entrance ExamsATMA, SNAP, CAT, XAT, NMATMAT, CAT, XAT, MAT, GMATCourse Fees (Range)INR 5 - INR 24 LakhsINR 2 - 35 LakhsSyllabus Your child will get exposure to a more hands-on approach to workplace situations. The curricula at autonomous institutes frequently get updated to keep up with the changing business environment.Compared to PGDM, MBA is more theoretical. It also depends on the university your child is applying to. Top Job RolesProject Manager, Consultant, Data Scientist, Auditor, Tax Specialist, etc.HR Manager, Business Analyst, Marketing Manager, Finance Advisor, Investment Banker, etcInitial Salary OfferedUp to INR 30 LPA or moreUp to INR 60 LPA or more MBA vs PGDM - Reasons to Consider Reasons to choose MBA MBA is a prestigious degree that propels students toward management careers. It offers early professionals opportunities for senior roles with more responsibilities. The typical duration for a full-time MBA program is around 2 years. Candidates pursue an MBA to enhance their skills and become business leaders. The degree is not limited by one's prior field of study. What matters is the desire for a management career in a specific area. Careful consideration of key factors is essential before choosing an MBA program. Reasons to choose PGDM Post Graduate Diploma in Management (PGDM) suits recent college graduates and professionals with around two years of experience seeking career advancement. It's highly beneficial for business-focused, innovative, and sustainability-oriented individuals. PGDM offers extensive exposure to management concepts across functional areas. The program aims to integrate learning and boost awareness. Innovative curricula aligned with industry trends are a key feature. Mandatory internships provide valuable industry exposure. The PGDM program's ultimate goal is to prepare well-rounded professionals for the demanding business world. MBA vs PGDM - Which is More Expensive? Although it varies from university to university, if we talk about the affordability of both courses, an MBA is usually more economical than a PGDM.  While your child can get an MBA for about 2 lakhs or a little over, a PGDM usually begins at 5 lakhs.  In either case, you can find out the exact cost of your child’s education through our College Cost Calculator. Once you find out the cost, you can plan your savings for their education accordingly. Start Investing in Mutual Funds for Child Education MBA vs PGDM - Impact on Career In both India and abroad, both MBA and PGDM programs hold equal weight in terms of career opportunities. Possessing a postgraduate diploma rather than a degree is not viewed as a limitation. What truly counts is the standing of your university or institution and, more significantly, your professional competencies. With a clearer grasp of the distinctions between MBA and PGDM courses, take the time to assess both options and make your choice based on your academic and professional inclinations. Your educational journey should align with your personal aspirations and career objectives, considering the flexibility and equivalency of these programs in shaping a successful future. Studying MBA in the USA or PGDM in Canada? Thinking of a study abroad plan for your child? Maybe an MBA from the US or a PGDM course from Canada? Well then here's what you need to know to help them decide. Pros of getting an MBA in the USA Increased possibility for lifelong income.  Increased likelihood of employment and employability.  Professionally connect with the top talent in the field.  Become more knowledgeable and broaden your horizons.  Develop strategic leadership abilities for large corporations.  Expenses: For premier colleges, Indian students' MBA tuition in the USA can range from 50,000 to 1,000,000 INR.  Cons of getting an MBA in the USA Studying for an MBA abroad has various drawbacks, such as the expense of being unable to apply for employment. Students may find it more difficult than they anticipated to get visas or work permits for their studies abroad, which might force them to leave the nation quickly after graduation with little time for adjustment. Masters vs PGDM in Canada Read More Pros of Getting a PGDM in Canada  In Canada, PGDM programs are less focused on research and more job-oriented. Many MNCs are headquartered in Canada, which also has a low unemployment rate of 6.5 percent. While doing the course, students might complete an internship to get experience in the real world. Canada promotes the option of staying behind after graduation. To add to this, getting a student VISA for Indian students is much easier in Canada compared to the USA.  Cons of Getting a PGDM in Canada Comparatively speaking, Canadian PGDM courses are less costly than those offered in the US and other nations. PGDM programs typically cost between 15,000 and 17,000 CAD (INR 8,00,000 - INR 9,05,000 approx.)  Create Goal for Post Graduation Study Abroad Programs Conclusion  Be it an MBA or PGDM; be it in India, the USA, or Canada, what's important for you as a parent is to be prepared for the educational expenses. Download the EduFund App today and take the first step to fuel your child's dreams. FAQs What is the difference between a PGDM and an MBA? MBA is a 2-year-long degree program whereas, PGDM is a one-year-long diploma course. For senior positions, should one get an MBA or a PGDM? Although both hold great importance if issued by prestigious institutions, the degree is sometimes preferred over the diploma. Which is more expensive - an MBA or a PGDM? The answer completely depends on the institute one has applied to. However, in general, the diploma program is more expensive than the degree. Do MBA and PGDM have equal career prospects? Yes, both programs hold equal weight in career opportunities, with the institution's standing and your skills matter most.

If you consider Tier 1 cities, then families of these cities spend almost an average of Rs 43,000 annually on the school education of their children. Tier 4 cities spend nearly Rs. 29,000 annually on children's education. In after-school education, an average parent spends 16,000 a year.   If you want to send your child to a quality university, you need to save money regularly for this goal for at least 8 years. Parents have to consider the rising education costs of education, and a suitable university, whether it is foreign or local. You also have to start saving towards living expenses like accommodation, food, transport, etc.  Applying for an education loan is the first option many parents consider when their child is ready for college. While you can opt for an education loan, it is advisable that you start saving money early in different investment schemes so that after 15-20 years, when your child is ready for college, the loan amount is reduced.  Ways to save for child education:  1. PPF Public Provident Fund is considered one of the safe investment options while investing for the long term where the funds are locked for at least 15 years. You can create a PPF account with any bank or post office and start saving your income for a good future return in the coming years. It has the ability to grow your money. The rate of interest of PPF in 2012 was 8.80 % which is now 7.60% in the year 2022.   2. Mutual Fund The fund grows when the market rises. The overall return after a long period comes through stocks, equity, debt, and even from money market funds. You can invest in a (systematic investment plan) SIP for both the short-term and long-term, and it is an efficient tool to save money.  Equity and debt are some securities where investors’ money is invested in mutual funds.  3. Fixed deposit A fixed Deposit is considered a safe investment option though the returns are comparatively low. If you invest a lumpsum amount through FD, you will get a fixed percentage on the amount. The interest rate ranges from 5.75% for regular investors and 7% for senior citizens for 1 year.  4. NPS National Pension System is a government-based savings option. The fund invests in government securities, bonds, and even equity. It provides investors with two options to invest in active and a default auto. In the auto option, the funds are invested in an automatic way. In the active option, the investor invests in the assets of their choice. It matures when the investor turns 60 years. The overall pension withdrawal amount is tax-free as per the scheme.  5. RBI bonds Taxable RBI bonds have a tenure of almost 6 years, and it gives an interest rate of 7.75% per year. It is available in the Demat mode, and it gets credited in the BLA( Bond Ledger Account) of the investor. For proof of investment, the bond is issued at Rs. 1000, and investors even get certificates of holding.  6. Direct equity Direct equity is another investment option to consider while investing in the long term. Though investors find it a risky option, the return is much higher compared to other investments. For 1, 3, and 5 years of investment, the return is 8,13, and 12.5 percent, respectively. source: pexels Hire a financial advisor  If you are still confused about the best savings option for your child’s education, then you can consider talking to the best financial advisors on the EduFund app. The financial advisor will guide you as per your financial needs and risk profile.    The upside is that all this can happen in a matter of minutes and a few taps without any hassle. Parents can take the expert's suggestion and invest the money accordingly to minimize risk and find a way to get a better return on investment. The financial advisors help you rebalance your portfolio on a regular basis to give your funds a better chance of growth when the market sees drastic changes.    Conclusion  As a parent, it is very important to start saving for your child’s education as early as possible to fight the rising costs of education. While applying for a loan is an option, it is wise to reduce the loan amount and save for most of the cost through investment to minimize or avoid the financial burden. FAQs How much do families spend on school education in Tier 1 and Tier 4 cities? Families in Tier 1 cities spend around ₹43,000 annually on school education, while Tier 4 cities spend about ₹29,000 per year. What's the importance of saving for education if you want to send your child to a quality university? To send your child to a quality university, regular savings for at least 8 years are crucial. Rising education costs and living expenses need to be considered. Should parents rely solely on education loans for college funding? While education loans are an option, it's advisable to start saving early through investment schemes. This approach reduces the need for larger loans in the future. Disclaimer:Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

Did you know that the rise in your child's tuition fees results from rising inflation in India? Inflation affects the costs of fruits, vegetables, cars, and even houses, and education is not immune to this increase. Education inflation is not the only factor affecting the increasing cost of education. Factors like government funding cuts, higher cost of living, higher administrative salaries, better infrastructure, dollar appreciation, and higher demand for college education.  Here is how education inflation can hurt your child's future without you even realizing it. What is Inflation? Read More What is education inflation?   Education inflation refers to rising education expenses over some time. You probably heard that the Indian Institute of Technology (IIT), India's most celebrated government institutional body, hiked up its tuition fees. The universities increased the cost of tuition from Rs. 90,000 to Rs. 2 lakhs for all understanding courses. This increase could have easily driven any unprepared Indian parent to borrow money from the banks. Hence, this is the silent yet unrepairable impact of education inflation on your child's future.   Universities across the globe increase their tuition fees due to inflation to ensure the smooth running of their universities. This price hike has been consistently growing and has gradually resulted in high student debt, increased drop-out rates, and broken dreams of higher education and careers.   Education inflation's impact is not limited to tuition fees. This phenomenon leads to an increase in registration fees, university application fees, transportation costs, accommodation costs, books, and a sharp rise in food prices (mess prices). How to Protect Savings from Inflation? Read More Increased tuition fees    In 2020-2021, many Indian parents moved their children from private to public schooling amidst the pandemic. The cause was an increase in tuition fees at private schools despite the ongoing norm for online instruction. The impact of education inflation coupled with the loss of jobs and stagnant incomes led to this mass movement from private to government schools. While many students shifted schools, some were forced to leave it altogether due to a lack of financial and technology resources like laptops or phones for learning.    Similarly, according to the Unified District Information System for Education, over 39% of students aged 20-24 are forced to drop out of college to help their families and become earning members. This stems from a sheer lack of education planning as well as the unaffordable increases in schooling and college prices.     While many Indian parents struggle to provide primary education in India, there are those whose kids dream of studying at universities like Yale, Harvard, or Oxford. These parents need to be prepared to spend a significant amount on tuition fees and manage the cost of living in a different currency in foreign countries like the UK, USA, or Canada. The rising cost of foreign education   Countries like US and UK are prevalent among Indian parents and students. India is the second largest source of international students after China, and every year, these universities increase their tuition fees in response to the growing demand and inflation.    Over the years, the average cost of studying bachelor's in the United States rose by 497 percent (from 1985-86 and 2017-18). This is twice the rate of annual inflation in the same period.    https://www.youtube.com/watch?v=75tJ3oX1_Gw In fact, many overseas universities hiked their college fees for 2022-2023. The University of Pennsylvania announced a 2.9 percent increase in tuition fees, while Arizona State University announced that tuition fees would increase by 5 percent for international students. The University of Illinois will likely see a 1.5-2.5 percent hike in tuition fees.   Delhi University, India's most popular central university, recently increased its fees for all undergraduate courses and included service charges, facility fees, a college facility fund, and a student welfare fund. It will be an average of 10% increase in overall university fees across colleges.  How can you protect your child's college education from inflation?   Many parents do not realize the rising cost of education until it's too late. They have little to no option left - either they must compromise on the quality of education or go for education loans that take years to pay off. Both these options can dramatically impact your child's future and potentially risk their careers.    Saving and investing early is the right way to protect your child's college education. The sooner you start investing, the better it is. Time horizon can determine when you need the money, how much you need it, and how to reach the goal. These questions are fundamental when considering investing in your child's education expenses.    https://www.youtube.com/watch?v=jPHG8h87Dzo The country you send your child to can determine what should be the predominant asset class. If you are planning to send them to a foreign country, then considering US equities and US ETFs is highly beneficial the geographical diversification in terms of investing can help you cover the purchasing power parity in the future when your child starts spending in dollars or pounds.    If you have a young child studying in school and planning to go to college in 8 - 10 years, then investing and saving for their future is a must. You can start with mutual funds, equities, and US markets. If you are new to investing, consulting an expert who understands your needs, risk aversion, and goals is a must Talk To An Expert FAQs What is education inflation? Education inflation refers to rising educational expenses over time. Tuition fees and other costs increase due to factors like inflation, administrative salaries, and better infrastructure. How does education inflation impact students? Rising tuition fees lead to high student debt and increased drop-out rates. It affects registration fees, transport, accommodation, and food costs, impacting education accessibility. How does foreign education cost escalate? Universities in the US and UK raise tuition fees in response to demand and inflation. The cost of studying in the US increased by 497% between 1985-86 and 2017-18. Why are private school tuition increasing? Private schools hiked fees despite online learning during the pandemic, prompting some parents to shift their children to government schools due to financial strains.

Getting a loan for higher studies comes with a set of challenges and requirements. Whether your child is planning to pursue higher education in India from a premium institute or pursue international studies overseas, you are looking at spending anywhere from Rs. 15 – 20 lakhs in India to almost Rs. 70-80 lakhs overseas.   Recent reports released by the Ministry of External Affairs reveal that over 1.1 million Indian students are currently studying abroad as of 2021. Industry experts estimate this number will rise to around 1.8 million for higher education overseas in 2024. This would approximate a student spend of USD 80 million per year.   With so many students traveling overseas and spending such large sums of money, the business of funding students for overseas education has been growing rapidly in recent years. Parents often find it easier to avail of education loans overseas than to fund their children’s education in premium institutes here in India. Let us look at a few reasons for this:  Source: pexels 1. International universities are keen to have Indian students As the monies involved are considerably large, international universities take a huge interest in having Indian students come to their campus. With this in mind, several universities tie up with lenders and offer a host of flexible options (scholarships, grants, or financial aid) to make it easier for students to avail of education loans.   2. Sheer numbers mean more interested lenders Given the pace at which the number of Indian students traveling abroad for studies is growing, the industry has become immensely profitable. This has encouraged many private players to enter the education loans markets, with some interesting products.   This gives parents a choice beyond the Indian Public Sector banks that are fairly rigid when it comes to the reputation of the institute, collateral, payback terms, etc. Many students who are rejected for loans by public sector banks, approach these private lenders and obtain the loans they need to pursue their dream careers.   3. Parents can opt for international lenders Apart from banks and NBFCs in India, if your child plans to take up higher studies abroad, you can look at approaching international lenders. Their rules are different for eligibility and necessary collaterals, etc. Making it easier for Indian parents to access the funds.   4. International universities help students avail of loans from lenders in their own countries  This works as a blessing for the parents. If the student is unable to organize funds from India, some universities can put applicants in touch with lenders in their own country. The only hitch here is that the loan is in foreign currency, and is subject to international currency fluctuations.   5. Need and merit-based scholarships Several scholarships are available for Indian students planning to study abroad. Parents must start checking out the eligibility for these scholarships well in advance.  Things to keep in mind when a child is applying for financial support for higher studies  Choose a reputed university: While Tier II or III universities in low-cost countries may work out cheaper, you will find it difficult to get loan sanctions for such universities. Most public sector banks offer loans only for select international institutions, which are among the leading names in the country.   Manage to raise some funds from your own kitty: If you can manage to put in about 40 – 50% of the total corpus required, it stands you in good stead with several international lenders. They see this as a sign of surety and timely payback in the future, towards their own loans. Further, having your corpus will mean a smaller loan and a shorter payback time.   Maintain a good credit score: This is an important aspect of loan sanctions for international studies. While in India, the awareness around personal credit scores is still low, international lenders put a lot of weightage on credit scores. Your loan approvals and amounts sanctioned are determined by your credit rating in the financials market.   Keep your documents updated: All lenders will take into consideration the previous year’s financial statements, tax statements, and so on. Parents planning to take education loans must keep these papers ready for perusal at all times and must maintain good financial health to be eligible for loans. All in all, it is easier to avail of education loans for international studies than to get one for courses in India, as the number of lenders is less for Indian education loans. make sure you plan well and start building your corpus early on.   Keeping your loan to a minimum will ensure your child is not burdened with repayment as soon as college is over. That is no way to start living life as an adult! Talk To An Expert FAQs Is it easier to fund international studies? Yes, due to large student numbers and university collaboration, international education loans are often more accessible than loans for premium Indian institutes. Why do international universities assist with loans? International universities value Indian students and partner with lenders to offer flexible funding options like scholarships and financial aid. Can parents approach international lenders? Yes, international lenders provide diverse eligibility and collateral requirements, making funding more accessible for Indian parents. How to minimize the loan burden for students? Starting with a strong corpus, maintaining financial health, and keeping the loan amount minimal ensures students aren't burdened with repayment immediately after college.

Education expenses are soaring high in leading institutions. Hence, students of lower and middle-income states are finding it difficult to manage the associated expenses. One of the first considerations that come to mind while thinking about studying in a top institution far from the home city is the expense of accommodation and studying there. Students take out school loans and, in many instances, disregard the expenditures covered by the loan.  People perceive school loans from a particular perspective, viewing them as a limited funding source covering the tuition charge. But student loans have changed substantially over time, including much more than the average person may imagine. Below are some expenditures that financiers often include while providing education loans. These expenses being considered as a part of a loan shall differ from bank to bank:  Expenses covered under education loans 1. Tuition charges  University tuition costs account for over half of the entire cost of a student's higher university education. Tuition fees are the highest cost that must be paid to the institution. As a result, it is supported by all financiers like government banking institutions, non-banking finance companies, private sector banks, multinational lenders, and other lenders. One of the primary reasons individuals would take out an education loan is to pay for tuition charges since the remaining expenditures may be met if they do any part-time jobs.  Read more: Tips on how you can pay off educational loan 2. Tickets for travel  Traveling to a different state is a significant investment for children from poor and middle-income families. Though the amount is not too huge, many lenders will allow the provision to include the plane ticket cost in the aggregate loan balance. It is required to be considered that banks do not normally include travel expenses as a defaulted element of the loan. This can be incorporated at the borrower's desire. It is recommended to include the transportation cost in the loan for individuals who could not afford it.  source: pexels 3. Expenses associated with aids for studying  Studying is not limited only to education. Studying in reputed universities far from home city entails a larger range of activities to be completed as part of their studying process. This includes project work, research, group projects, scientific studies, etc. The value of college tuition charges should not be confused with expenses associated with studying. Many banks recognize this and, subject to a limitation, issue loans for library expenses, laptops, stationery, and so on. It's usually a good idea to check if the education loan funds the study expenses.  Read more: How much expensive is education abroad 4. Health insurance and coverage  Health insurance is not typically included with student loans. The majority of lending institutions don't cover the expense of health insurance. Still, some banks may agree to cover the expense of health insurance per the ask of the borrower. Therefore, just a few banks would consider health insurance as a portion of the loan.  5. Expenses for daily living  Living expenditures could be a fairly large bracket including eating, accommodation, everyday expenditures, etc, especially when studying in a different state from the home state. There is little consistency in how loans meet expenditures. Certain banks sometimes restrict monthly spending based on a percentage of the entire loan amount, whereas other lenders may use a different technique to calculate the corresponding living cost. It is important to consider the degree of coverage information and loan coverage while taking a certain loan. Education loan portfolio in Tamilnadu and all India level Up until 2013–14, both in Tamil Nadu and in all of India, the growth of the education loan portfolio was decelerating. However, in 2014–15, it surged to double digits, only to moderate in the years that followed. Tamil Nadu's increase of student loans went into the negative zone in 2018–19, while the rate of fall slowed down in 2019–20. Though southern states comprise a large share of PSB education loans, they also account for the majority of accounts that turn in non-performing assets and the total amount of outstanding NPAs Education loan interest rates 2022 Find out the most recent interest rates for student loans from the largest banks in India so you can compare rates and select the one that best suits your requirements. A variety of factors affect how much these loans will cost in interest. Conclusion  Students must evaluate the aspects discussed while managing funds for their studies when calculating the loan amount. The expense of education in top universities is significant, running into many lakhs and sometimes into crores. As a result, students must look forward to seeking advice from experts and financial institutions operating in this sector. With their recommendations & suggestions, students can be confident that their loan would cover all of their expenditures.   While considering expenditure coverage, consider that the loan must be returned, and the interest amount on the loan is substantial. So, enlisting the assistance of specialists will assist in weeding out less acceptable possibilities and incorporating the more essential recommendations. Thus, it will benefit the borrower in the longer - term. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Are you having trouble deciding on the best college for your child? Wondering which course can help them in the future? What's the cost of their college, and how much money do you need to help them?  Your child's future depends on the college they choose. Even though you want to help him and advise him, your child should have the final word in this matter. After all, he will spend the next few years of his life in college.   Things to consider to help your child pick the right college 1. Education Quality  You should focus on the institution's teaching methods, the level of education it offers, and its prior academic achievement. You can accompany your child on a college tour so you can see for yourself how the professors are, meet current students, and hear their feedback. Your kid may choose to consider a foreign university, in which case you can contact the admissions office and get all your questions addressed. Don't forget to ask about the student-to-teacher ratio as well. It is very important for the type of schooling he will receive.   2. Location   Make sure the college you chose is accessible to your home and has all the amenities you require. Your child will be worn out before he even gets to college if the trip there is long. Consider they are the university is, the transportation options or if there are any hostels.   3. Finances   Choosing a college for your kid is among the most important decisions you can make. Even though college is expensive, you must stay within your means and select a school that you can afford. You can help with student loans and scholarships if they want to attend a college that is outside of your budget. If you have time on your hands, you can start investing in different tools and save up the amount as well!  4. Extracurricular activities    To foster your child's creativity, college life would be incomplete without some extracurricular activities. The activities could involve sports, drama, dance, or music. Confirm that the college she plans to attend offers courses in all the subjects in which he is interested.   5. Infrastructure   Academics are the main focus of the college, but without the right infrastructure to support them, learning may not be as efficient. Check the facilities, labs, common areas, safety measures, etc. when choosing the colleges.   source: pexels Questions you must ask your child before you start  Asking your child these questions will help him choose the best college   Why do they want to take the course?   What sort of extracurricular activities are they interested in?   Do they believe that the course will help them land a better career in the future?   Do they find the class interesting?   Do they want to study in this country or elsewhere?   What are their financial preparations if they decide to pursue an education overseas if you are unable to support them?   How do they believe the course will benefit them personally? Tips for Parents   Don't be afraid to ask questions: Parents shouldn't be afraid to ask the college administration many questions, such as how they would help the child socially, emotionally, and intellectually.   Multiple campus visits with your child before applying: The majority of parents only make one trip to college before enrolling their child. As a result, they might make a decision based on insufficient information. Parents' knowledge of the college will increase after several visits to the campus.   Don't get influenced: Finding the ideal college for a child should be a parent's objective, taking into account his preferences and interests. The majority of the time, friends' and family members' advice has an impact on parents. Determine the child's needs, then choose a college based on those needs.   Appearances can be deceptive: All parents desire to select a technical institution for their children. However, they must remember that appearances can occasionally be deceptive. Make sure the college uses the newest networking methods and technological advancements. To understand the teaching pedagogy of the teachers better, they must speak with them as frequently as they can.   Make sure the college prioritizes extracurriculars: A good college gives equal weight to students' extracurricular activities and academic performance. Parents frequently select a college based only on its academic reputation, giving little consideration to the extracurricular activities offered there.  Conclusion    Selecting the ideal college for their child can be challenging. Course preferences, location, and tuition fees, there are too many factors to consider. One way to simplify this decision is to start saving for your child's education fund! So, no matter where they want to study or what, you know their tuition fees are taken care of!  Consult an expert advisor to get the right plan TALK TO AN EXPERT

An education loan is a great instrument for pursuing higher education. With the cost of education rising every day, arranging for a massive amount for their child’s education is difficult and loans can ease that burden.  However, banks do not offer loans to everyone. Education loans have a high rejection rate.  Reasons why your child's education loan can be rejected  1. Academic performance  The academic performance of your child plays a vital role in deciding whether the loan can be approved or not. A student is usually expected to have average and above average marks on their report card to get a grant or a loan. The consistent score in the past few semesters and their performance in co-curricular activities are considered. Those students who have shown exemplary results in academic areas are given more preference for the grant of loans.  2. Missing documents  Incomplete information is one of the primary reasons for rejecting your child’s education loan. You must present all the documents the bank mentioned for the verification procedure. Also, you must ensure that you add the correct information while filling out the form. Check the form multiple times after you have filled it out. None of your documents should be fake. Make sure you get help from a bank professional if you do not know the steps. They will guide you with the further procedure.  Apply for Education Loan with EduFund 3. Admission to an unrecognized university  Banks often do not approve loans if they find the university unknown. They conduct a verification process on their level to know about the university. If unsatisfied with the data, they might cancel your child’s education loan application. On the contrary, they also ask for details from the parents to get a better view of the whole scenario. 4. Low credit score  A low credit score is another critical reason for canceling your child’s education loan application. The banks consider the score of your parent or the guarantee who will be signing the form. The application gets rejected if the guardian has not been good with repayments or has defaulted in the past. To increase the chance of the loan getting passed, it is advised that the parent or the guarantor should have a good record of repayments along with a healthy CIBIL score. source: pexels Type of education loan  The type of education loan is yet another factor that should be considered. Rejection rates are lower when you opt for a secure education loan (collateral-attached education loan). The unsecured education loan tends to get rejected during the verification process. You have to provide collateral such as agricultural land, your house, or some asset the bank can keep to get their money back in the case of fraud or non-payment. In the case of an unsecured loan, the pledged collateral is seized by the bank if the person taking the loan cannot pay the amount back.   Everything you need to know about education loans Read More Things to keep in mind while applying for an education loan a) Keep an account of the loan amount and policies  You should check the loan amount and guidelines provided by the banks. The procedures will vary with different principal amounts that are being borrowed. The interest rates also vary depending on the total amount of the loan.   b) Check the course, university, and eligibility  Make sure that the course and the university your child chooses are recognized. If the banks do not find them to be known, they might as well reject the plea for an education loan. Take proper guidance from an expert or professional to understand the course structure properly.   Next, check whether the university and course are eligible for the loan. Not only that, you must ensure that your child crosses all the eligibility factors, including citizenship, academic performance, and so on.   c) Interest rates offered by the banks   Make sure that you look at the interest rates and moratorium carefully so that you do not encounter any issues later. Some key points that require proper research are the duration of repayment, late payment fees, moratorium period, and so on. Usually, the interest rates for education loans lie somewhere around 9% to 15% of the principal amount. Do proper research on the long-term and short-term repayment periods to understand better what to choose. FAQs What are the reasons for education loan rejection? Poor academic score Lack of co-applicant Poor borrowing history of the co-applicant Courses that offer low employment options/ROI Choosing obscure universities that they not be accredited Type of education loan Incomplete documents Fake documents Country selection for the loan Insufficient income of the co-applicant How do you avoid loan rejection? To avoid loan rejection, you need to ensure all your documents are in place. Speak to the bank of your choice or take guidance from an education loan expert in getting all the documents, understanding the process, and the costs involved. Some tips are to make sure your financial history and your co-applicant's financial history are sound, your documents are real and your marks are on-point. Is an education loan easily available? Education loans are easily available in India. There are many lenders such as government banks like SBI, private banks like HDFC, Axis Bank, etc, and NBFCs like Avanse and Prodigy Finance. TALK TO AN EXPERT

In the previous article, we discussed 5 degrees for your child that can cost up to 1 crore. In this article, we will discuss the best way to save for any kind of education expense Saving and investing money is simpler when there is a goal in mind. For parents, their child’s education is the ultimate goal. Given the skyrocketing cost of education in India, it is one of the biggest financial outlays that families take into account.   This is because education is not just about tuition fees; it includes a host of expenses like a laptop, phone, course fees, etc. To make sure you can provide for all your child’s needs, let’s find out which is the best way to save for any kind of education expense.   Why is education becoming expensive?  The education inflation rate measures how rapidly educational expenditures have increased over time. Education inflation in India is presently between 10 and 12 percent, which is more than twice as high as inflation in the economy.  Most parents frequently find themselves going to banks to take out school loans, despite the rising inflation and education costs. Given that you have an added duty to make interest payments, this may not always seem sound advice. So, how should a parent save money for their child's education? Let's examine that in the part that follows.  Top ways to save for your child's education expense  Plan ahead and take the necessary actions to save money for your child's future. This will prevent financial constraints from impeding their ability to pursue higher education. So, these are the best ways to save for education expenses:  1. Set a goal amount for higher education  Parents generally don't know how much money to set aside for courses like medicine, engineering, the arts, science, and business. The annual costs for these courses range from Rs. 2.5 lakhs to Rs. 15 lakhs. When you have time on your side, you can save for this desired amount with a regular SIP and the power of compounding.  Once you've chosen the SIP amount, use the step-up function to raise it as needed with your bonus or extra cash flow. As your salary rises, you should ideally increase the SIP contribution each year.  2. Time is a big factor  For young parents, the ideal time to start saving is - before your child's birth. This allows you to financially prepare for their future and minimize the risk that comes with investing. By starting early, you would have sufficient money if you were saving consistently for 18 years. If you begin saving later than you intended, you may still be able to catch up by raising the amount you want to set aside each month.   3. Investment plans  The best way to save for any kind of education expense is through investing. Your saved money can be invested in PPF, ULIPS, and SIPs for kids every month. These alternatives allow you to set aside a sum of money every month based on your budget as well as goals.   Systematic Investment Plans (SIP)  Making money work for you is always an excellent idea rather than working for your money. Everyone makes an effort to save money, but you may be savvy and invest your funds to see your money increase. You can invest modest amounts on a regular basis using a Systematic Investment Plan (SIP), which will enable you to realize your goals.    Unit Linked Insurance Plan (ULIP)  Insurance providers provide unit-linked insurance plans that combine insurance protection with an investment strategy for investors. In this situation, a ULIP will be beneficial to you because it combines an investment and insurance plan.  Public Provident Fund (PPF)  There is no minimum age requirement to create an account with Public Provident Fund schemes, which are well-liked long-term investment plans. As a result, you can invest in a PPF for your child as it provides security, an alluring interest rate, and tax-free profits.  4. Look for Scholarships  Scholarship hunting in India is much simpler than you may imagine. With technology, finding scholarships and applying for them is easier. It may be simpler for you to obtain scholarships in India if you are a member of a specific caste or religion or come from a low-income household.  Always inquire about any available scholarships before accepting admission to any institution. These bursaries may be merit-based or available to low-income students. You can apply for merit-based scholarships by taking the exam that evaluates your knowledge and abilities. All they ask for from poor or category students is an income certificate and a category certificate.  5. Withdrawal plan  Even when investing long-term, the investment process is never static. Experts have recommended equity funds for individuals with an investment horizon of more than 12 to 15 years. However, it would help if you started moving money out of stocks and into debt five years before your target. Begin a planned transfer of funds from your equity fund to your short-term debt fund. It highlights the necessity to exercise caution while saving for an urgent need that cannot wait. Remember that your child's admittance to college has a set date.  When it comes to your child's education, having a clear strategy in mind is crucial. This is due to the significant disparity between present and future schooling expenditures. For your child's financial stability, it is crucial to establish a well-defined savings and investment strategy and implement it over the years! TALK TO AN EXPERT

A bond is a debt instrument that an investor purchases from the issuer and receives interest on it periodically. Financial institutions, companies, banks, non-banking financial companies, and the government provide bonds. Bond is one of the financial instruments that help companies finance themselves; it acts as a loan for these companies that raise money directly from investors.   Bonds are ideal for investors seeking low-risk investments, and they carry lower risk than equities and help diversify the portfolio. https://www.youtube.com/watch?v=iYJzL-H5sds What are some primary differences between bonds and stocks? Bonds Stocks In bonds, you provide an amount to the lender to invest in an organization/ government In a share, you own a portion of the company equity by investing. The person who invests in a bond receives a fixed interest over time from the issuer. An individual dealing in stocks sells the shares once the price rise.    These are a debt. The long-investment bonds are riskier. These investments are long-term and short-term. Long-term offers the potential to the investor. Safer investment option than stocks Profitable investment option than bonds   However, bonds are not entirely free from risks. If the company goes bankrupt, the investors stop receiving interest payments. In many cases, individuals do not get the principal amount as well. It is thus advisable to invest in bonds in India carefully. Analyze the growth and issuer’s creditworthiness. Companies with AAA ratings like HDFC Bank Limited or Infosys are considered the best bond issuer.   How to Invest in Index Funds? Read More What are the 5 types of bonds to invest in India?   Here are the top 5 bond types of investing in India:  Government security bonds   The Government of India issues this debt instrument. These are one of the safest bonds in India, and they do not carry any credit risk and pay interest semi-annually.  Corporate Bonds   Firms provide these bonds to individuals for a fixed period, and the account holder earns consistent interest over time. However, companies use the money to fund their business requirements; hence, these are highly risky.   Zero Coupon Bond  A Zero-Coupon Bond is a pure discount bond. In this, individuals do not receive interest or any benefit until the bond’s maturity.  Convertible Bond  It is a hybrid bond that acts both as equity and bond. However, it does not happen simultaneously, allowing the investor to convert a bond into equity and qualify for shareholder benefits.  RBI Bonds  It is also known as a Floating Rate Savings Bond (RBI). Released in 2020, the government pays interest every six months on the bond, and one has to repay the bond post 7 years of expiry.   https://www.youtube.com/watch?v=_vd24QDztRo Is Investing in a Bond beneficial?   Here are some popular benefits of investing in a bond:   Provides investors with a steady income source  Flexibility to receive interest income or receive both cumulative interest and principal on maturity  Some bonds offer tax benefits on returns and interests  Investors receive benefits from preserving or increasing the investments  Investors share a higher priority claim to assets in comparison to stockholders  7 Tips to Choosing the right bond  Individuals often dwindle between the right bond and a profitable bond. Here is how you must pick the bond:  Define your investment objectives  Analyze your risk-taking abilities  Identify the bond provider rating  Expected yield on the bond  Research the bond’s strengths, weaknesses, and future scope  Read the terms in fine print carefully  Decide whether a long-term investment is ideal for you.   How to invest in bonds in India?  One can invest in bonds through a primary or secondary market. In the primary market, an investor can invest in bonds issued by big companies. In this, the companies provide bonds to build capital. They release IPO (Initial Public Offering) to raise funds for generating capital. When a company raises capital from the market to expand its business or growth, it is termed an IPO.  In contrast, a secondary market exchange refers to organizations like NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). Investors buy and sell stocks by operating in any of these organizations independently.  If you need a pre-mature exit, you can view a secondary market.  In the primary market, an individual has to undergo a documentation process to invest in bonds in the DEMAT account.   Purchasing a bond in the primary market is subjected to strict screening. The company offering securities reviews it and creates a prospectus outlining the details of the securities. In opposition, the secondary market offers more flexibility in trading.   Ways to invest:  By Connecting with a Bond Broker  Connecting with an authentic broker is one of the ways to choose and invest in the right bonds. Fees may vary from broker to broker.   Invest through Institutional Investors   In this, investors bids on government securities. The yield on the bond is less than the interest rate one receives. But a higher bid rate makes it profitable.  Purchasing Mutual Funds and ETFs   It is among the best and fastest methods for bond investing. The provider provides the best ETFs (Exchange Traded Funds) on your behalf.   Buying Bonds through RBI retail   If you are seeking government securities to invest in, you can do so through RBI retail. Register for a GILT security account under RBI. An investor needs to update the dashboard post-logging:  An investor must update details like- issue size, date of bidding, price per security, and bid value range  Place the bid by mentioning the investment value and security  Complete the payment  TALK TO AN EXPERT