EduFund Blogs

Individuals' interest in index funds is increasing due to an overarching desire to compound and capitalize on wealth.   Amid constant volatility in markets, it has become imperative to explore investment ways that dilute any potential risks of losing on high-return investments.  This is why people are incredibly inclined toward building different buckets instead of leaving all eggs in a single basket. In investment terms, diversifying the portfolio by investing in different equities and sectors is one of the best techniques to evade market risks.  It is where investment in index funds emerges as a market dominator in the current Indian scenario.   What are Index funds?  Index funds work differently from active funds. These funds are appropriate for those wishing to evade risk and diversify investment. One can only manage the investments passively.   It implies that a person cannot invest directly in an index but through mutual funds called “Index Funds.” A manager or investor invests in the same equities as present in the index.  The market index leverages a company’s market capitalization to determine the total weightage of securities in the index. The total value of the company shares is equivalent to the number of outstanding shares.  As per Economic Times, “since February 2020, the number of index funds has surged 144% and the assets managed by these investors grew by 590%”.   As a part of the ongoing research by Economic Times, “The number of index funds grew from 32 in February to 78 in July 2020”. ETF draws the investor’s interest during the phase.  https://www.youtube.com/shorts/FlrxZAJjemE Who should invest in index funds?   Investments in index funds are profitable only for a selective bunch. If you meet the below investment behavior, index funds are just right for you:  You wish to evade any risks associated with investment/slash investment risks  You want to diversify your portfolio by starting and investing a low amount  You prefer to invest only a fixed amount in a particular index fund  You would like to invest in multiple investment forms – like real estate, gold, equities  How to invest in index funds?   Index Funds are a type of investment vehicles like mutual funds and exchange-traded funds that help achieve results on specific indexes. Here is how you can invest in index funds:   1. Figure out your investment goals  Before investing, it is important to ensure clarity over the present and future financial goals.   When do you want to retire?   How long till you achieve your financial goals?   What do your risk appetite and budget look like?   2. Pick one index to invest in  Index Funds, apart from helping diversify the investment, track broad sectors like large capitals and emerging markets. Different index types serve different purposes.   While deciding on the index to invest in, analyze the below parameter:   Which industry do you share knowledge in and is growing lately?   How much is your risk tolerance?   What are the company size and market capitalization?  What index fund would you find comfortable investing in (stocks, bonds, or commodities)?   Highlighting and improvising on these parameters will help you choose the right index fund. It will help build a growth foundation.   3. Decide the index funds to invest in  Each fund and company has different marketing capital, growth potential, and shares available to invest in. The best research method is by researching Asset Under Management (AUM). It is the total investment value that an expert manages on the client's behalf. Analyze the AUM index of a given fund and the ease of trading.  Here are some best index funds for 2022:  IDBI Nifty Junior Index Fund Growth  ICICI Prudential Nifty 50 Index Plan Direct-Growth  UTI Nifty Next 50 index Fund Direct-Growth  As per ClearTax - “ IDBI Nifty Junior Index Fund Direct Plan-Growth, is one of the most profitable index funds in India."  Index funds companies can vary in their short and long-term costs.  4. Sign up for a brokerage account   After signing up for a brokerage account, utilize the above points to figure out the best index funds to invest in. Here, an investment expert may help you meet the purpose according to your financial goals.   In the initial stage, having an expert backing works well. An expert can help you develop an investment strategy that aligns with personalized financial goals. It makes investment in index funds a smooth journey.   5. Manage investments cautiously   It is important to manage and check potential opportunities for growth. Start with small investments and set up automatic monthly deductions. Monitor the fluctuations and returns throughout the year. Modify the strategy if the market demands.  While Index funds are a great way to start investing, it's good to remember no market is without risks. Consult an expert advisor to get the right plan for you  TALK TO AN EXPERT

If you are planning to send your child overseas for higher studies, here are 5 ways early saving will help your child’s future career. Depending on the career your child decides to pursue and the country where your child wishes to travel, you will require a corpus of anywhere from Rs. 25 lakhs to up to Rs. 1 crore. And as you can imagine, these funds need to be planned for and accumulated over time.   Here is why early saving will help your child’s future career  Start saving early to build a larger corpus It is difficult to assess the career your child will ultimately pursue almost 15 years from now, it is best for you to go big and work with a higher target. This way your child will have the freedom to choose whichever career appeals to him/her, without you stressing out about how you are going to fund it.   You will not need an education loan While education loans are quite commonplace these days, if you plan well in advance, your child will not need to apply for education loans. No matter how easy they are to get, you must remember that most students end up having to commit a substantial portion of their 7-9 years’ earnings in the initial years towards settling these loans. If you plan well and start saving early, you can spare your child the stress of this loan.   Zero hassle of getting education loans While education loans are many today, the competition for these loans is going up as more and more students aspire to go overseas. This means by the time your child is ready to travel for higher studies, these loans will be harder to get and will definitely be more expensive than they are today. Also, loans that are easily available are provided against high-value collateral. If you do not have the necessary collateral with all the required documentation, the loan will not be sanctioned. Further, if your loan application is rejected for any reason by even one loan provider, it will create a lot of hurdles for you when you apply to other lenders. All of this stress can be avoided if you have your own funds to put your child through college with your funds.   Source: pixabay No fear of repayment Different lenders have different repayment terms. Some need the student to start repayment even during the study period. Others, once the course of over and the student starts working. In both cases, this becomes an additional area of concern for the student. Managing a job while studying overseas is not an easy task. Even if the repayment schedule starts to post the course completion, it implies the student will be forced to take up a job even if he/she prefers to study further. As you can see, there is no need to put your child through all these challenges. All you have to do is create and follow an effective savings plan that will help you save your funds and grow them through compounding over an extended period of time.   Builds healthy financial habits We all know that our children usually follow what we do when it comes to financial behavior. By saving early on, your child will be able to pursue the career of his / her choice and will be free to start work when he/she feels ready. Most children, having experienced the ease of access to their own funds, realize early on that saving for a bigger goal in the future is important. Your decisions today will encourage your child to put away their own funds for their future career and personal goals.   It may seem like an obvious adage to start saving for your child’s higher education. But most parents make the big mistake of waiting for their child to go off to college. By saving diligently, it can be the game-changer that your family needs to shift to a whole new level of success in just one generation. So, ensure you start your savings today! Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

A good college for your child is the end goal for every parent because it’s the stepping stone to a great career and life. Ideally, you need to save 10 years in advance for your child’s college but many parents make the mistake of thinking they have enough time. Here’s why you need to start saving early and consistently for your child’s higher education to be financially independent in the future.    Increasing tuition fees  Do you know that the cost of education schooling, and college is going up by 10 -12% every year? Let’s say the annual fees in a private engineering college in 2022 stand at Rs. 6-7 lakhs. By 2027, this same one-year fee will be Rs. 27 lakhs, given the rate at which fees are being hiked. The standard rate of inflation does not apply to education and is almost always higher.  Increasing lifestyle cost   Changing lifestyle standards and greater disposal incomes mean parents don’t want their children to study in government institutes that at times have the insufficient infrastructure. So, when you start looking for a college for your child, you will naturally find yourself drawn to contemporary universities with fancy buildings, equipped with all kinds of learning and teaching technology everything that comes with an expensive price tag. Especially as ICSE and international boards become increasingly accepted, the next step in a student’s academic career is a school that is comparable to global world-class educational institutes in terms of quality of education, opportunities, and facilities. When you plan to give your child the best of institutes, you must be ready for the financial demands that tag along.  High competition  Getting into good government colleges/universities was always challenging, but now it has become even more so with the growing numbers looking to pursue higher education. The intense competition at the govt universities has increased the demand for private universities that charge more than their government counterparts. This makes it necessary for parents to save up over time for the large fees that are required in private universities.  Similarly saving up for sending your child abroad comes with its own set of financial woes. You need to consider currency changes, the political and economic climate of both countries, and the average cost of living rather than just your child’s college fees.   source: pixabay How to save across 10 years?  Overseas undergrad education in the best of universities can cost you close to a crore of rupees. Sure, at the outset this amount sounds daunting, but it is not. If you start putting away Rs. 9000 – 12000 per month over the next 10-15 years, you will be able to touch your target of creating an education corpus of Rs. 1 crore. Investing in Equities across a long-term horizon usually brings you an average return of 15-16%. This is further enhanced when you do not pull out your earnings on a regular basis.   When you start early, you have the distinct advantage of the power of compounding. Your investment will grow and give you impressive returns over a long period.   If you think you will start late and make-up as you go along, you are sadly mistaken. A shorter investment term means your money has lesser time to grow. Yet there are many financial instruments you can depend on to reach your goal, it’s always better to approach a professional or a financial advisor when you are considering a huge expense like higher education.  Saving 10 years in advance for your child’s college gives you a huge advantage. It can you manage your daily spending and take care of one of the most challenging spendings of your life. Don’t start saving blindly, get in touch with an expert to get a financial plan for your child’s unique goals. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Recent events like the pandemic, Russian - Ukraine war, consistently falling rupee and high inflation have proved why investing at an early age and systematically is vital and a significant requirement today! Since it’s the only way to beat inflation and work towards wealth generation, here are 8 ways to invest in 2022 for beginners!  1. Know your financial goals  Every person has financial goals to achieve; whether it’s to cruise around the world or pay for your child’s foreign education. Everyone has them and everyone needs to work for them. The first rule of investing is to determine your short-term goals like buying a car and long-term goals like buying a house to figure out how to work towards it based on your finances and spending.  When it comes to financial planning, it's best to be realistic. Understand your goals and determine the best way to attain them without compromising your present needs!  2. Study your finances  Before investing a huge sum, it's good to budget your finances and understand where your money is going. For instance, if you have an income of Rs. 45,000 a month and if you spend Rs. 25,000 on rent then it’s not feasible for you to invest Rs.20,000. You have to take care of your utility bills, food, and other miscellaneous expenses. It's best to pick a realistic amount for investing every month that you can pay consistently before starting a SIP.  3. Time your financial goals  Knowing how much time you have and need to achieve your goal is a crucial aspect of investing. Some investments have a lock-in period; suppose you choose an investment that has a lock-in period of 5 years but you need your money in 3 years, this can throw your financial planning off the charts. So, it’s important to align your deadlines with your investments so that you can take care of all your needs on time.  4. Know your risk appetite  Some investments are riskier than others, some offer low to medium risks. Depending on your risk appetite you can choose the option that suits your financial goals and current needs. Risk appetite depends on a number of factors like your running income, sources of income, financial obligations, number of dependents, age, etc.  5. Put your eggs in different baskets  You have probably heard this line more than enough to know relying on one financial tool like an FD or Mutual Fund or ETF alone can be a huge mistake. It is always beneficial to diversify your investments so that you can achieve your financial goals faster and more efficiently. Speak to an expert if you have trouble assessing the different investments for your unique goals!   6. Avoid impulse decisions  Many first-time investors make the mistake of investing everywhere without any specific goal in mind rather than the lure of lucrative returns. While these avenues may be a great investment opportunity, they could prove to be a loss. So do your research well, understand your needs and then invest your hard-earned money into schemes you can vouch for!  7. Ensure you have enough liquidity   Some investments have lock-in periods and levy extra charges for redemption before the set date. This can be a huge loss on your investment! While you cannot foresee future emergencies, you can prepare for them with emergency funds and some liquidity, that is, cash in hand!    8. Market research is key  While the pandemic introduced various changes and led to the emergence of pharma companies like high-return investments, the winds are changing again. Companies like manufacturing and logistics are making a grand comeback, especially in India with the start-up culture in full swing. So, know your market before making any big investments. If you have no prior expertise in share market research then contact an expert!   How you invest in 2022 should be determined by your financial goals and needs while keeping research at the centerfold! The gamut of financial advice and instruments has increased in past few years, it is easy to get overwhelmed so seek help wherever you can to make the right choices!  Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Earlier we discussed the cookie jar investment method. In this article, we will discuss more investing options. Every investor wants to put their money into the best investment alternatives to get the best returns. Some people invest for financial security, while others meet their investment objectives.   Your investing alternatives are dependent on your risk tolerance, investment horizon, financial goals, and liquidity requirements.  In reality, risks and returns are precisely proportionate. That means the greater the risk, the greater the likelihood of returns will be. There are primarily two kinds of investment opportunities in the country.   That is financial and non-financial assets. We can further split financial assets into market-linked assets such as mutual funds, stocks, and ETFs. Some fixed-income products are bank FDs, PPFs, and Bank RDs.   Gold investments, real estate, Treasury bills, and other non-financial assets are also examples.   Let us now see which of these different investment options is suitable for India's various categories of investors.   Source: pexels Investment options for Housewives   Housewives are often left behind in the race to make investments. However, there are many options in which a housewife can put her savings to grow her money.   Some of the best options are investments in direct equity (if they have a relative level of experience) and mutual funds. By investing in mutual funds, they can reap the benefits of professional management of their money and diversification of investment.   Investment in ETFs, bonds, and even PPFs are viable options to grow their savings over time steadily.  Investment options for salaried people  Salaried people often struggle with managing their expenses. As a salaried employee in India, you will have various investment opportunities to invest and increase your hard-earned money wisely.  Different instruments are available for investing and ranging from traditional investment options like fixed deposits, recurring deposits, national pension schemes, and ULIPs to modern investment options such as investing in shares, cryptocurrencies, etc.   Investments in stocks and cryptocurrencies can provide returns as high as 10 to 15% per annum. At the same time, safer investment options include mutual investment in mutual funds like equity mutual funds and debt mutual funds.   Most risk-free investment options are bank fixed deposits, government bonds, etc. Salaried people have great potential to create wealth if they budget their expenses and investments.   Investment options for senior citizens  In old age, the thirst for returns is not as high as in youth. So, senior citizens usually need investment alternatives that mainly protect their money rather than growing it.   So, the need is for safe investment options. For elderly people over the age of 60, the Senior Citizens' Savings Scheme. It is one of the risk-free tax-saving investing choices available in the country.   It is one of the most significant investment ideas for seniors because they get a steady income in the form of a competitive interest rate of 8.6% per annum, making it a highly profitable investment option.  Another viable option is the Pradhan Mantri Vaya Vandana Yojana. It is for elderly adults of age 60 and up and provides them with a guaranteed return of 7.4% p.a.; pension income is payable monthly, quarterly, semiannually, or yearly depending upon the option selected.   Some other instruments include the Post Office Monthly Income Scheme and National Pension Scheme.   Low-risk investment options  Investments with low risk are always popular because they do not exhibit unnecessary volatility, so investors have less worry about the undertaking.   Low-risk investment options include Fixed Deposits, National Savings Certificates, Public Provident Funds, National Pension Schemes, and Gold. All these investment options are primarily fixed-income type investments – guaranteeing a particular level of return.   And gold has historically risen in value through tough times and often proves to be a hedge against inflationary pressure in the economy.   Investment options for students   As a student, you usually do not have too much money, but the biggest thing you have is time – which you can use to your advantage. Also, as a young investor, you have the option to take a significantly higher risk in terms of your investment options.   Students can invest even fundamental amounts through Systematic Investment Plans (SIPs) every month in mutual funds, index funds, and ETFs. Acquiring knowledge about bond investment will also be beneficial.   Since students have a higher risk appetite, they can also mobilize a small part of their investment amounts into cryptocurrencies after thorough research. Since there is less expendable money, choosing free brokers or low-cost brokers is essential.   Using simple rules of spending, students can save and invest small amounts over a long period and thus, grow their wealth. Investing Options - Summarised 1. Equity Shares Direct equity investment, out of all the investment options covered here, delivers the best combination of stock appreciation and dividends.   When a long-time horizon (10 years or more) is taken into account, equity markets can be somewhat unpredictable in the short run, but they provide greater inflation-adjusted returns.   You can diversify your portfolio by purchasing stocks from companies in different industries, allowing you to account for economic growth in other sectors.   Equity is the riskiest asset class due to the unpredictability of global markets and the probability of sectoral instability. When markets crash during difficult economic circumstances, there is always the risk of significant capital wipe-out.   2. Equity Mutual Funds Mutual funds that invest in equities are known as equity mutual funds. Instead of buying individual stocks in a specific industry, you can buy a mutual fund that encompasses that industry's growth. These are less hazardous due to their diversified nature.   An equities mutual fund invests more than 65 percent of its assets in the stock market (according to SEBI rules). An equity mutual fund can be active or passive.   Fund management's expertise also influences these mutual funds' performance.   3. Debt Mutual Funds Debt mutual funds, as the name implies, invest most of their assets in debt instruments. These funds are appropriate for investors with a moderate risk appetite and desire for consistent returns.   Government bonds, corporate bonds, treasury bills, and other money market instruments are also in the portfolio of debt mutual funds. Low risk does not imply that there is no risk.   Credit risk and interest rate risk are two risks that you should be aware of before investing in debt mutual funds.   4. Fixed Deposits (FD) A bank FD is safer than practically every other investment choice. With a high level of safety comes a poor rate of return.   FDs are a method to maintain your money where it is (returns are often so low that they don't even keep up with inflation), not a strategy to increase it.   Depositors have protected up to a maximum of Rs 5 lakh apiece in the event of a bank failure (under the Deposit Insurance and Credit guarantee corporation).   Bonds: Bonds are fixed-income securities representing a loan a borrower advanced to the investor. When governments or even listed companies want to raise money in the form of debt, they issue bonds to the public.   You can purchase these bonds in the bond market. Bonds offer fixed interest payments to the bondholders (a variable interest payment system is also there).   Bond prices and interest rates move in the opposite direction. At the time of maturity, the total principal has to is to be returned. There are different types of bonds, like government, corporate, and municipality bonds.    The risk of investment in bonds also arises from the possibility of potential inflation outstripping the rate of interest on the bonds.   Furthermore, when you buy bonds that are not well-rated, there remains a chance of default, wherein you might lose out on what you lent out.   5. National Pension Scheme (NPS) This investment vehicle is for people over 60. PMVVY offers a 7.4% annual guarantee.   Pension income, payable monthly, quarterly, bi-annually, or annually, with pension sums ranging from Rs 1000 to Rs 9250, is available. With a 10-year duration, the maximum investment amount is Rs 15 lakh.   The senior citizen, or their nominee in the event of the senior citizen's death, receives the maturity amount.   6. Public Provident Fund (PPF) PPF is a tax-free (interest) investment that lasts for 15 years. The government reviews the interest in PPF accounts every quarter.   A PPF account can also be opened with a monthly contribution of Rs 500. PPF is a remarkably safe investment because the interest received is covered by a national guarantee.   7. Gold Gold is often known to be a safe haven for investors. In your portfolio, gold will operate as a hedge.   In the past, gold has proven to be a winner when the economy has been in the doldrums. Gold is an attractive investment in the long run because of its rising price.   Digital gold, sovereign gold bonds, gold ETFs, and physical gold are options for purchasing gold. It's also a highly liquid asset to own. FAQs What are some low-risk investment options? Some low-risk investment options include Fixed Deposits, National Savings Certificates, Public Provident Funds, National Pension Schemes, and Gold. These options offer a relatively stable return on investment and are less volatile. Which investment options are suitable for senior citizens? Senior citizens can consider investment options such as the Senior Citizens' Savings Scheme, Pradhan Mantri Vaya Vandana Yojana, Post Office Monthly Income Scheme, and National Pension Scheme. These options provide steady income and are designed to protect their money. What investment options are suitable for salaried individuals? Salaried individuals have a range of investment options, including traditional options like fixed deposits, recurring deposits, national pension schemes, and ULIPs. They can also consider investing in stocks, cryptocurrencies, and mutual funds like equity and debt funds. What are the recommended investment options for students? Students with a higher risk appetite can consider investing in Systematic Investment Plans (SIPs) in mutual funds, index funds, and ETFs. They can also explore bond investments and allocate a small portion of their investment amount to cryptocurrencies. Using low-cost or free brokers is recommended for students with limited funds. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Investment Objective: The investment objective of the scheme is to provide capital appreciation and income distribution to the investors by using equity derivatives strategies, arbitrage opportunities and pure equity investments. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The scheme does not assure or guarantee any returns. AUM₹ 4863.41 CrNAV₹ 15.21Launch Date28-January-2019Min SIP Amount₹ 150Expense Ratio0.28%BenchmarkCRISIL Hybrid 50+50 Moderate IndexNote: Report as of 3rd June 2022.Source: Value Research Online Performance: Trailing Returns %FundCategory3 Months0.920.526 Months0.20-1.771 Year7.604.373 Years Annualized12.539.185 Years Annualized--Note: Report as of 3rd June 2022.Source: Morningstar Riskometer: Fund review: Asset AllocationFund %Equity42.50 %Debt25.51 %Cash31.99 %Note: Report as of 30th April 2022.  Source: Morningstar Top 10 HoldingsNameWeightage %Reliance Industries Ltd4.21Tata Ultra Short-Term Dr Gr3.465.63% Govt Stock 20262.89ICICI Bank Ltd2.70HDFC Ltd2.49Tata Consultancy Services Ltd2.39Hindustan Unilever Ltd2.15Larsen & Toubro Lt1.93Axis Bank Ltd1.85Grasim Industries Lt1.83Note: Report as of 30th April 2022.   Source: Morningstar Sector AllocationWeightage %Basic Materials17.20Consumer Cyclical6.13Financial Services19.72Real Estate2.40Communication Services2.81Energy7.80Industrials8.89Technology10.68Consumer Defensive9.35Healthcare8.71Utilities6.31Note: Report as of 30th April 2022.    Source: Morningstar Fund profile: The categorization of the stocks in this fund is based on three parameters i.e., Cyclical, Sensitive and Defensive. The fund largely follows a growth-oriented style of investing and invests across market capitalizations of around 53.82% in large-cap, 7.9% in mid-cap and 1.99% in small-cap companies. Basis stock selection makes the fund less volatile as compared to the category. The fund has around 27.94% investment in debt – 8.69% in G-Sec and 19.25% invested in very low-risk securities. ProsConsGood equity and debt diversification as per market conditions. Exceptionally outperformed the category averageExit Load of 1.0% before 365 Days. How much would you have made with SIP? Monthly SIP AmountTotal InvestmentCurrent ValuationNet ProfitCumulative Returns₨ 5000/-₨ 2,00,000/-₨ 2,56,049/-₨ 56,049/-60.81%Note: SIP Start Date – 28/01/2019, SIP End Date – 30/04/2022. Past performance does not guarantee future returns.Source: Morningstar About the fund manager: Akhil Mittal since Jan-2019. He is a B.Com (H) and MBA from University Business School. Prior to joining Tata AMC, he has worked with Canara Robeco AMC, Principal Asset Management Company, Edelweiss Securities Ltd. and Rallis India Ltd. Sailesh Jain since Jan-2019. He carries a rich experience of more than 16 years in both fund management and broking, He joined Tata Asset Management in November 2018 as the Fund Manager (Equities). He holds an MBA degree in Finance from the Queensland University of Technology in Australia. Disclaimer: The data in this presentation are meant for general reading purposes only and are not meant to serve as a professional guide/investment advice for the readers. This presentation has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been suggested or offered based upon the information provided herein, due care has been taken to endeavour that the facts are accurate and reasonable as of date. The information placed on the presentation is for informational purposes only and does not constitute an offer to sell or buy a security. The Company reserves the right to make modifications and alterations to the content available on the presentation. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investment. Investment in the securities market is subject to market risks, read all the related documents carefully before investing. The valuation of securities may increase or decrease depending on the factors affecting the securities market. EduFund and the EduFund App are the brand and product of Helena Edtech Private Limited “An affiliate of the Company, i.e., Samyama Advisors Private Limited, is registered with the Securities and Exchange Board of India (SEBI) as an investment adviser under the SEBI (Investment Advisers) Regulations, 2013 bearing the registration number [INA000015321]. Samyama Advisors Private Limited may provide investment advice to the clients through the Company's platform.” Registered Address: 30, Omkar House, Near Swastik Char Rasta, Navrangpura, Ahmedabad Gujarat, India – 380009. Transaction Platform Partner: BSE Star MF (with Member code-51573). CIN No: U67100GJ2020PTC112589. RIA Number: INA000015321 GST No: 24AAFCH2122L1ZU© EduFund | All rights reserved | 2022 Last Updated – May 19, 2022

Mutual Fund vs FD is a long-standing debate in the financial arena. While one offers fixed and stable returns, the other offers a chance at wealth generation.  Fixed Deposits are the most popular and favored investment mode among Indian households. And why not! It feels safe to have an investment that guarantees a risk-free return. An FD allows you to put a lump-sum amount with the bank with a fixed interest rate and lay back for a good long period. Once the deposit matures, you can withdraw your money and enjoy the interest earned over the selected period.  Mutual Funds enable you to pool your money and earn a return. Every Mutual Fund has a portfolio manager who invests your money into stocks according to your risk appetite and ROI. Therefore, the return on Mutual Funds depends on the market conditions. Unlike fixed deposits, it does not have a lock-in period. Choosing the right investment journey for your child is the primary concern for every parent. If you are confused between Mutual Funds and Fixed Deposits, then look at both these investment options from various standpoints.  Inflation-adjusted rate of return  Inflation is the most crucial yet commonly ignored aspect of investment. It is the rate at which the value of your money decreases with time. Inflation reduces your purchasing power and creates financial instability.  In India, FDs do not offer an inflation-adjusted rate of return. The maximum rate of interest on FDs is 5% to 7%. However, the inflation rate in recent years has been recorded somewhere between 4-6%.  Inflation-adjusted return that you receive adds zero value to purchasing power. Instead, if the inflation rate goes higher than the interest rate, you will likely lose the money you have invested.  On the other hand, Mutual Funds are highly responsive to the market conditions. Also, they come with the benefit of compounding on SIP investments. You can start with an amount as low as Rs. 500, and your money will grow every month. Mutual Funds, especially equity-based mutual funds, are influential enough to adjust the impact of inflation on your money.  Risk Factor Fixed deposits feel safe on the surface because they are government-regulated. But, when it comes down to investing in your child’s education, the risk against this safety goes scary. The need of the hour is to grow your money. FDs may keep your money safe but add nothing to growth.  Mutual funds, however, allow you to mitigate the risk through portfolio diversification. You can identify your risk appetite and stash your money accordingly. Moreover, you have experts who guide you through your investment journey and help you attain your financial goals.  Tax Implications Tax payable on fixed deposits is subject to the Slab rate under the Income Tax Act, 1961, as amended from time to time. Also, the interest that you earn on FDs is tax-exempt under sec 80 TTB to the extent of Rs. 50,000.  Whereas, Mutual Funds listed under Capital Gains are taxable. The tax rate would vary depending on the Mutual Fund and its income. The duration for which the Mutual Funds are held before the sale is significant for taxation purposes.  Source: Freepik Liquidity  Keeping the persistent trend of Education Inflation in mind, it isn’t wise to lock your money into Fixed Deposits. Once you make a choice, you can not withdraw until maturity.  Mutual Funds come with no lock-in and are highly liquid. You can choose between a lump sum and a SIP investment. It enables you to start small but earns high market-based returns. You can take away your money at will! What are mutual funds? Read More Wealth generation With the pace at which the colleges are upscaling their fee structures, it has become challenging to keep up with the cost. Therefore, parents don’t just have to save but ensure wealth accumulation to pay for the price.  Unfortunately, fixed deposits fail here. The ultimate return you receive from an FD would fall far below the level of return you need. However,  if planned early and the right way, mutual funds are incredibly potent to help you reach your target. All you need to do is make the best out of the investment. Start early and extract the magic of compounding! Parents need to look at the broader picture when choosing an asset for their child’s education. Due to their low Inflation-adjusted return, fixed deposits are likely to fail as productive assets. And, it doesn’t matter how safe FDs are if they don’t help you meet your desired goals.  Mutual Funds offer you a safer opportunity to invest in stocks, especially if you don’t have the financial knowledge. Moreover, you don’t have to stress your pocket to invest. All you need is the magic of the 3Ps: planning, patience, and persistence! FAQs What is a Mutual Fund? A mutual fund is a financial trust that collects funds from investors and invests them into different instruments like stocks, bonds, and other money market instruments. How to invest in a Mutual Fund via the EduFund App? Step 1: Log in to the EduFund website or the EduFund app. Step 2: Complete your KYC and move ahead to create your investment account. Step 3: Choose the option of mutual fund investments. Step 4: Analyse your risk profile on the app by answering your household income and expense, the number of dependents you have, the highest level of maturity you have in terms of investments, your period of investment, and similar questions. Step 5: After answering the above questions, you will know what type of investor you are and the degree of risk you might be willing to take. The EduFund website or the EduFund app will suggest some mutual funds you might want to invest in, with a recommended SIP value. Step 6: Choose the fund and start investing. What is an FD? Fixed Deposits are the most popular and favored investment mode among Indian households. An FD allows you to put a lump-sum amount with the bank with a fixed interest rate and lay back for a good long period. Once the deposit matures, you can withdraw your money and enjoy the interest earned over the selected period. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

As an investor, there are many standard rules of money-making that you might have come across. In this article, we will learn about the very famous 15*15*15 rule. We will discuss the compounding magic that works wonders here.   The rule says that if you invest Rs 15000 per month for 15 years and generate 15% returns annually via a SIP in an equity mutual fund, then at the end of the 15 years, you will have an accumulated wealth amounting to Rs 10,027,601 (Rs 1.00 crore).   Breaking it down, we see that the total investment amount over the 180 months is Rs 15000x180 = Rs 27,00,000 – this means that the total returns you generate are equal to Rs 73,00,000.   The rule is so powerful that if you double the investment period from 15 years to 30 years, your accumulated wealth will equal Rs 10.38 crores (wealth increases 10x times).   The staggering figures that appear above are the result of compounding. https://www.youtube.com/watch?v=lelFL8eyw-0 Source: EduFund What is compounding interest?  Compound interest implies interest earned on interest. The magic happens when you keep adding funds to your investment and do not break it.   As your invested value grows every year, the base (on which returns are generated) increases. The return generated also rises with time - this is how a very normal amount of Rs 15000 per month can lead you to become a crorepati in 15 years.  A time frame of investment is an essential factor when we talk about compounding. The more time you give your investment, the more returns you will generate. This is because your investment base is growing bigger and bigger over time.   As we saw above, doubling the investment time increases the wealth corpus by ten times.   Let us take an example to see how compounding works. Assume that person A starts to invest from the age of 20 and stops investing at 30 years of age, whereas person B starts to invest from 30 years until his retirement at 60 years. The table below clearly illustrates the magic of compounding.   Person A turned out to be the smarter among the two investors because he started his investment journey ten years earlier than person B and thus, was able to amass a fortune even with just one-third of the investment amount of person B.   The most considerable teaching that the 15*15*15 rule gives us is giving our investments ample time in the market; more importantly, the earlier you begin, the richer you become.   Mutual funds offer you high flexibility in switching from one category to another, with redemption at desirable times. To take advantage of compounding, start your investment journey today. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Equity mutual funds are investment instruments that primarily invest in stocks of various companies across different sectors.   The aim of the fund manager is to maximize returns by allocating money among stocks with the help of screening criteria such as market capitalization or by investing in stocks of varying sectors.  Equity mutual funds are the riskiest category of mutual funds because of the high exposure (at least 65%, according to the rules laid down by the Security and Exchange Board of India) to equity markets.   However, this also leads to higher returns (on average) than other classes of mutual funds.  The risk involved in this investment arises from the general market conditions and the specific sectoral performance. A good option for investors looking to grow their capital over the long term, with considerable exposure to the stock market, is an Equity mutual fund.  Investment in these funds is possible through the SIP (Systematic Investment Plan) format and lump-sum format. Investors with different objectives and risk profiles have other options (among equity mutual funds) to invest in. Difference between Equity and Equity mutual funds  Direct investment into equity means purchasing stocks of listed companies directly through your Demat account.   In contrast, when you purchase an equity mutual fund, you are giving your money to the fund manager managing that fund to invest primarily in equity and some investment in other instruments to balance the fund.  While investing directly in equity, you have to decide which company to invest in and other related decisions. When you invest in equity funds, you choose to choose the fund, and the fund manager takes care of the further details, like the fund will constitute what companies' shares, in what ratio, etc.  Also, mutual funds offer diversification by giving us the option to make investments in diverse companies and sectors through an equity mutual fund, thereby exposing us to a more significant section of the market and possibly reducing our risk.   Investment in these funds is possible through the SIP (Systematic Investment Plan) and lump-sum formats. Investors with different objectives and risk profiles have other options (among equity mutual funds) to invest in. These are the main difference between direct equity and equity mutual funds investment source: freepik Different types of equity mutual funds 1. Categorization based on the market capitalization of companies Large-cap funds, Mid-cap funds, Small-cap funds, and Multi-cap funds.   Market capitalization tells us about the company's size; it is calculated as follows: Market Cap = Price of share * No. of shares outstanding  Companies having a market cap of more than Rs. 20,000 crores are known as large-cap companies. A mid-cap company has a market capitalization between Rs. 5,000 and Rs. 20,000 crores and small-cap companies have a market capitalization of less than Rs. 5,000 crores.  2) Sector funds These types of equity mutual funds invest the majority amount in particular sectors; that is, there is a concentration of investment into specific sectors in the economy, like FMCG, pharma, technology, PSUs (Public sector undertakings), etc.  3) Theme-based funds Theme-based equity mutual funds are pretty similar to sectoral funds because they invest in "themes" like ESG (Environmental, Social, Governance), Make in India, Digital India, and many other themes in the public and private sectors.  4) Focused funds Investments via these funds mean that more than 65% of investments are in equity only and related investments.  5) Contra funds Just as the name says, contra equity mutual funds follow contrarian investing methods – identifying potential market winners and investing in them.  6) Taxability-based categorization ELSS (Equity linked savings scheme) funds allow for deductions under section 80C of the Income Tax Act.  How do equity mutual funds work?  Equity mutual funds work simply. To state it in words, equity mutual funds invest more than 60-65% of their assets in stocks of different companies.  The fund manager tends to invest in names to maximize the overall return from the fund.  Are equity funds the same as mutual funds?  Equity funds are a type of mutual fund that primarily invests in equity shares of companies. FAQs Are equity mutual funds good? Equity mutual funds usually have a high potential to earn great returns among all mutual funds. However, with high returns, a high risk is also included. Hence, investors with a higher risk appetite are considered suitable for these funds. Which equity mutual fund is the best for me? Deciding the best equity mutual fund for oneself depends on a lot of factors that have been discussed above. However, here are some top options based on their annualized 5-year returns - PGIM India Midcap Opportunities Fund, Parag Parikh Flexi Cap Fund, Axis Midcap Fund, etc. Is equity mutual fund good as a long-term investment plan? Long-term investment plans bring wealth creation for investors. And that's where Equity Mutual Funds shine. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

ETFs have been doing the rounds in the market for a long time and have penetrated deeply into investor portfolios. Thanks to their liquidity, accuracy, and ease of understanding, these instruments have proven to be a boon for retail and institutional investors. Advantages of ETFs The most eye-catching amongst them is their lower costs. But why are these ETFs cheaper? The answer to this question is the ETF structure and how they operate. Reasons why ETFs are cheaper?  Most ETFs are passive index funds. These funds generally track the underlying index with full or partial replication, thereby reducing the need for actively managing a fund which is usually the case with mutual funds.  Index-tracking mutual funds are also expensive as compared to similar ETFs. Let's suppose an investor wants to sell or buy an ETF; the investor does the same by directly placing an order with the broker. However, to transact in a mutual fund, the investor needs to contact the fund manager, sell these units in the secondary market, and revert to a tedious process that costs more. The mantra is simple "less work = fewer costs" ETFs use an "in-kind" method of creation and redemption of shares. What is the in-kind creation process?  An in-kind creation process means that if an investor has a portfolio precisely similar to the underlying security basket of the ETF, then the investor can directly exchange this portfolio for the equivalent number of ETF shares.  The option was available only to large sum investors or institutional investors, but now it is available for retail investors too. This type of transaction reduces the number of transactions an investor must go through to get ETF shares. Thus, the transaction fee and paperwork commission are not there. What is the in-kind redemption process? An in-kind method of redemption process is also in place. The investor can opt for an in-kind redemption process by exchanging the ETF share for underlying securities rather than selling them in the secondary market.  The above-mentioned process again enables the fund to buy and sell securities without entering the secondary market, leading to a reduction in paperwork and other transaction costs, thus allowing a cost-effective running of the fund. Consumers, thus, benefit in the form of a lower expense ratio. Administration charges are also one of the key factors which increase the cost of holding mutual funds vis-à-vis ETFs.   Since ETFs trade on the stock exchange. The fund house need not get involved in the everyday transactions of the fund. The issuer needs to come into the picture only during the creation and redemption process of the shares.   Consider this: When investors trade Tesla (TSLA) shares, the company has no direct involvement. ETF issuers have no direct participation when investors sell their shares on similar lines.   On the other hand, a mutual fund needs to be involved in every transaction since all transactions happen through him.  Mutual funds charge an annual 12b-1 fee. What is a 12b-1 fee? It is an expense that the mutual fund undertakes to promote and market the mutual fund to increase its AUM.   If you wonder whether they transfer these expenses to their investors, the answer is - YES, they transfer these expenses! The world is not a fair place after all.  According to the Securities and Exchange Commission (SEC), "these fees are deducted from a mutual fund to compensate securities professionals for sales efforts and services provided to the fund's investors."   The original motive for sharing these costs was to increase the popularity of the mutual funds by lowering the expenses of mutual fund houses, but in today's world, where they have infiltrated almost every portfolio, charging this fee is a bit controversial.   ETFs are far less expensive than mutual funds because they do not charge 12b-1 fees, thus, they have a lower expense ratio. Conclusion ETFs are significantly cheaper than other such investment vehicles due to their operation and structure.   ETFs are intrinsically more cost-effective than mutual funds since they trade on exchanges like stocks, eliminating many operational fees of running a mutual fund.   Furthermore, because most ETFs are passively managed and linked to an index, issuers have fewer costs to pass on to investors, resulting in reduced expense ratios. Consult an expert advisor to get the right plan TALK TO AN EXPERT FAQs Is it better to buy ETFs than mutual funds? Which option is better - ETFs or Mutual Funds - the answer to this question varies from investor to investor. However, if you are looking for an investment that is more tax-efficient, ETFs would be a better option for you. Are there any disadvantages to owning ETFs? There are two sides to every coin. Just like its tremendous advantages, there are some drawbacks that investors must be aware of before buying ETFs. Some of the disadvantages include high trading fees, low trading volume, operating expenses, tracking errors, etc. Should I switch from mutual fund to ETF? Switching from mutual funds to ETFs would likely be the right choice for you if the fund you're investing in has a high expense ratio or, due to undesired distribution of capital gains, you find yourself paying too much in taxes every year.

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

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

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