EduFund Blogs

“Sukanya Samriddhi Scheme vs LIC Kanyadan Policy – which one is better” is an important query that needs to be answered so that an investor can invest in the scheme which is more suited and helpful for their girl child.  By assuring the safety of the capital and providing a fixed income, both schemes have managed to gain popularity amongst the masses. What is Sukanya Samriddhi Scheme? The Sukanya Samriddhi Scheme is a small savings scheme that comes under the “Beti Bachao Beti Padhao” scheme. It was launched by the central government to build a secured financial corpus and ensure a bright future for the daughters of India. What is LIC Kanyadan Policy? LIC Kanyadan Policy is a small savings scheme offered by LIC to protect the financial future of a girl child. It is a customized version of the LIC Jeevan Lakshya Policy, where a father can deposit money for the marriage and education of his daughter at a low premium. The policy offers both protection and savings benefits. Sukanya Samriddhi Scheme vs LIC Kanyadan Policy 1. Type of Scheme The Sukanya Samriddhi Scheme comes under the Beti Bachao Beti Padhao Scheme and is purely a small savings scheme launched for the education and marriage of a girl child. The LIC Kanyadan Policy is a modified policy based on the LIC Jeevan Lakshya Policy to financially secure the future of a girl child for later years.  2. Launched By The Sukanya Samriddhi Scheme was launched by the Government of India, whereas LIC Kanyadan Policy was launched by LIC. Both policies are exclusively meant for a girl child.  3. Account Holder The girl child is the account holder of the Sukanya Samriddhi Scheme until her marriage, whereas in the LIC Kanyadan Policy, it is the father who is the account holder and not the daughter as he operates the account in her name.  4. Age Criteria The age criteria of Sukanya Samriddhi Scheme vs LIC Kanyadan Policy are different as the first can be purchased after the birth and before the girl child is 10 years old, and the latter can be purchased when the girl child is at least 1 year old, and the age of her father is between 18 years and 50 years.  5. National Eligibility The Sukanya Samriddhi Scheme is open only to the citizens of India, whereas outsiders have the option of choosing the LIC Kanyadan Policy for their daughters.  6. Premium Limit In the Sukanya Samriddhi Scheme vs LIC Kanyadan Policy, the premium limit for the first scheme is INR 1.5 lakhs for a financial year, whereas there is no limit for the latter scheme.  7. Sum Assured Limit The sum assured in the Sukanya Samriddhi Scheme is limited as it is dependent upon the premium paid, whereas the minimum and maximum limits are INR 1 lakh and no limit, respectively, in LIC Kanyadan Policy. 8. Payment Terms In Sukanya Samriddhi Scheme, the amount should not be more than INR 1.5 lakhs and has to be paid every fiscal year. The payment term of the LIC Kanyadan Policy is 3 years under the policy term.  9. Account Maturity Tenure In the Sukanya Samriddhi Scheme, the girl child can handle the account until she is the age of 21 Years or married after 18 years, whereas in LIC Kanyadan Policy, the account maturity tenure is between 13 years – 25 years.  10. Loan Facility There is not any option for a loan facility in the Sukanya Samriddhi Scheme, whereas in LIC Kanyadan Policy, the policyholder can opt for a loan if the account is active and the premium has been paid for three consecutive years.  11. Compensation Offered (in case of the account holder’s death) No compensation is offered in case the account holder of the Sukanya Samriddhi Scheme dies. In LIC Kanyadan Policy, if the death of the account holder is natural then the girl child is eligible for immediate payment of INR 5 lakhs, and in case of accidental death, immediate payment of INR 10 lakhs. If the death is suicidal within 12 months of the policy purchase then 80% of the premium amount is paid by the LIC corporation, along with the surrender value and the tax amount.  Conclusion By now, you must have got a clear idea about which one amongst the Sukanya Samriddhi Scheme vs LIC Kanyadan Policy will suit the personal needs of your child. Remember, both schemes provide financial assistance to low- and high-income group parents who want to fulfill their dream of educating or simply marrying their girl child. So, consider their differences well and choose the one you find most beneficial.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Becoming financially independent is one of the ultimate goals behind pursuing any profession of your choice. Of course, everybody needs to work to earn money. But will earning money alone ensure your financial independence? We’ll discuss the possible ways to become financially independent in this blog. What financial independence means? Everyone defines financial independence in their own terms and goals. For most people, it usually means having financial freedom and not having to worry about finances and money-related issues. Financial independence comes when you intelligently invest and can afford a certain lifestyle of your choice. It also means you retire without worry or have the freedom to pursue your passion without second thoughts. 1. Set life goals A mere desire to achieve financial independence won’t help you reach your goal. If you wish to be financially independent as soon as possible, you should set realistic and ambitious goals. Setting life goals, big or small, would help you create a blueprint for achieving those goals. Be focused and specific about your goal and make timelines accordingly. This will not only help you meet your goal’s deadlines on time but also increase your chances of achieving your goal. 2. Make a monthly budget Making a monthly household budget is one of the best ways to control your spending and track your bills. Sticking to your budget is a great way to ensure that bills are paid and savings are on track. It also acts as a regular routine that reinforces your goals. 3. Start investing now In the midst of rising debt, financial emergencies, medical expenses, and excessive spending, achieving financial independence can be quite challenging. However, it is attainable with discipline and careful planning. Bad stock markets and low returns can make people question their wisdom in investing and whether they should keep investing their hard-earned money. But there is no better way to grow your money than investing. Investing is basically making your money work for more money rather than you working for the money. The magic of compound interest, dividends, growth in the share market, increments in shares you have invested in, etc., will grow your money exponentially. But you need a lot of time and patience to achieve this meaningful financial independence. Investing in the right tools at the right time with expert advice can help you reach your goal. Remember that not everyone is a professional investor from the beginning, so it would be a mistake to attempt the kind of stock-pinning and risky investments made famous by billionaires like Warren Buffett. Instead, start simply by opening an online brokerage account that will help you learn how to invest, create a manageable portfolio, and make weekly or monthly contributions to it automatically.  Track your investments on a regular basis and keep learning more about investments and better opportunities to invest in. More importantly, consult financial experts while investing your savings. 4. Avoid loans and debts and pay off your credit cards in full One of the vital hacks for becoming financially independent is to avoid loans, credits, debts, etc. You need to be smart when it comes to money and financial freedom. It might seem easy to pay back loans, but in reality, there are many challenges. When loans are being taken, they should be intelligently calculated and only be taken when necessary. Credit cards and other high-interest consumer loans may be hurdles to wealth-building. Make sure to settle the entire balance every month. Paying off mortgages, student loans, and other loans with comparable terms often have significantly lower interest rates, so doing so is not urgent. Even yet, timely repayment of these loans with lower interest rates is crucial. On-time payment of these loans would not only help you get financially independent early but also help you build a good credit score which is very beneficial. 5. Watch your credit score The credit score is a very important number for you as it determines the basis on which interest rate will be offered to you when you decide to take loans for any personal reasons like renovating your house or buying a new car, or taking any loans for any purpose. Credit score also plays an important role in determining the premium rate you will have to pay for any kind of insurance you take. Since someone with careless financial habits is thought to be irresponsible in other areas of life, credit scores are given a lot of importance. This is why it's crucial to obtain credit information on a regular basis to ensure that no incorrect defaults are harming your reputation. Stay educated on financial issues. 6. Create automatic savings Automatic saving basically means setting money aside the day you get paid so that it never reaches you. You can also call it paying yourselves to be ready for retirement. To be financially independent, it’s very important to enroll in an employer’s retirement plans and make full use of any matching contribution benefits, which are essentially free money. Having an emergency fund that may be accessed for unforeseen needs is a good idea as well. 7. Do not stop having fun And last, ensure your life does not seem too boring because you do not let yourself have a little fun and relax. Join parties, travel from time to time, and do not forget that you need to strike a reasonable balance between achieving financial independence and your everyday life as a young and happy person. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Is your child about to finish 12th this year? The question that which is the best bachelor's degree in India may have crossed your mind a dozen times.   India’s educational landscape has involved the years with thousands of esteemed universities and colleges for your kid to choose from. Let’s look at some of the best bachelor's degrees in India that your child should consider!    Based on the field of study, bachelor's degrees can take three to five years to complete in India. For instance, bachelor's degrees in the arts, business, communications, and sciences normally take three years to finish, whereas those in engineering, pharmaceutical science, and technology take four years to complete, and those in architecture, medicine, or surgery take five years.   Different programs, institutions, and applicants will have different tuition costs. Depending on financial needs or academic accomplishments, scholarships may be offered to help with costs. If you believe that enrolling in a bachelor's program in India could be the next step in realizing your kid’s career objectives, continue reading to learn more about the fantastic bachelor's options offered by Indian colleges and other educational institutions Popular bachelor's degrees in India 1. MBA/BBA Management in an organization or corporation is a term used to describe a person who plans and organizes the work of personnel. So, unless you are the type of individual who enjoys or believes that they can properly plan, organize, choose staff, lead or direct, and control an organization to achieve different objectives, management classes can give you guidance to achieve various objectives by making efficient and effective use of human and financial resources.   The top colleges for studying BBA are   Loyola College   Delhi University   University of Mumbai  Christ University  Amity University  2. Engineering Engineering is the use of mathematics, empirical data, and scientific, economic, social, and practical knowledge to design, develop, maintain, research, and enhance organizations, machines, tools, systems, components, materials, processes, and systems. Many scientific students choose it as one of their top programs after completing their 12th-grade education since it leads to the highest-paying job in the world.  The best college for studying engineering in India are:   IITs  NITs  VIT Vellore  Jadavpur University  Anna University   3. Computer Application Computers are becoming an essential component of education as well as the young (student) generation's lifeblood. Computer systems are getting more and more accessible, and the information technology sector is increasing and rising along with it. The term "system software" refers to computer software that is created to carry out a number of synchronized tasks and operations for the consumer. In order to understand how to use the technology, computer application students mostly study those software packages.  The best college for studying computer applications are:   NITs  Birla Institute of Technology   Christ University  Jawaharlal Nehru University   Delhi University 4. Hotel Management  Always questioned how similar opulent hospices, resorts, and elegant outfits operate and coordinate similar massive structures without a hitch. hostel operation is the operation of the hospitality assiduity's service division with an emphasis on meeting the conditions of its guests. The hostel's general director is the top superintendent in charge of running that hostel or a connected business. Being the director of a voyaging boat would also give you the chance to sail.  The best colleges for studying hotel management are:   Institute of Hotel Management, Lucknow  Heritage Institute of Hotel and Tourism   KR Mangalam University  Amity University  5. Fine Arts Fine Trades Fine art is distinguished from applied art by being created purely for aesthetics or beauty rather than having to have some practical purpose. Fine art generally consists of imaginative graphic displays that are valued for their aesthetic, intellectual, or imaginative rates. Fine trades include effects like oil, form, armature, music, poetry, photography, film, videotape products, theatre, and cotillion. This field is for you if one or further of these formats allows you to express your feelings more effectively or inspires or fascinates you.   Here are the best colleges for studying fine arts in India:   Jamia Millia Islamia  Sir J J Institute of Applied Arts  Government College of Fine Arts  Aligarh Muslim University  College of Art, Delhi  6. Nursing Nursing, which is described as the profession of minding for cases, families, and societies so that they can heal from illness, is further than just a job. The foundation of the health sector, nurses are essential to the smooth operation of the entire assiduity. The need for healthcare is global, so the range of nursing is veritably broad. As a nurse, you will have the capability to help individuals in a variety of ways, from minding for new maters to offering advice to cases who are meaning self-murder. One of the stylish nursing seminaries in India is RAK College of Nursing in Delhi and CMC Vellore College of Nursing. In recent times, India has come the country that exports the most largely good nurses.  Here are some of the best colleges for nursing:   AIIMS, Delhi  Armed Forces Medical College  King George's Medical University  Madras Medical College  Dayanand Medical College & Hospital With the cost of education increasing every year by 5-6% across the globe, the need to start planning your child’s higher education is unavoidable!   Universities and the education world are no strangers to inflation. In fact, the educational sector has witnessed an unprecedented increase in tuition fees and living expenses. To ensure your child’s dreams are not crushed under the weight of inflation, you need to start planning and saving for their future right here!   Consult an expert advisor to get the right plan TALK TO AN EXPERT

Mutual funds are one of the hottest options for investing because they can assist you in achieving your financial goals. One significant downside of putting your money in a fixed deposit for investment purposes is that the interest is added to your taxable income and taxed at your income tax slab rate, which is especially unfavorable if you are in a high-income tax bracket. Here mutual funds do better financially as they can help you save some taxes.  You can benefit from specialized money management and tax-efficient returns by investing in mutual funds. Profits from investments in mutual funds are taxed in a manner similar to that of other asset classes.  By becoming knowledgeable about the taxes of mutual funds, you can set up your investments to lower your overall tax liability. You may also benefit from tax deductions in certain situations. Keep up with the rules governing tax on mutual funds when investing in them. Determiners of Tax on Mutual Funds There are two categories of mutual funds: equity- and debt-oriented. Both of them are subject to different taxation.  Dividend: A dividend is a portion of the cumulative profit that mutual fund providers distribute to scheme investors.  Capital gains: They are the profits made when investors sell their capital assets for more money than they originally paid for them Taxation of dividends offered by Mutual Funds  The Union Budget 2020 made changes that affect how dividends offered by any mutual fund plan are taxed. In other words, dividends that investors receive are added to their taxable income and taxed at the rates applicable to each income tax slab. Dividends were previously exempt from tax in the hands of investors since businesses paid dividend distribution tax (DDT) before distributing their profits to investors as dividends.  Investors were not subject to tax on dividends (received from domestic enterprises) up to Rs 10 lakh per year. Any dividends that exceeded Rs 10 lakh per fiscal year were subject to a 10% dividend distribution tax. Taxation of capital gains offered by Mutual Funds  The holding duration and kind of mutual fund affect the tax rate on capital gains for mutual funds. The holding period is the length of time an investor held units of a mutual fund. Mutual funds offer both short and long-term capital gains, which are taxed differently Things to remember regarding tax for mutual funds  Mutual does not need you to pay taxes yearly. When choosing a mutual fund scheme, the appropriate taxes must be paid only when the units are redeemed or the scheme is sold. It does not factor in annually. Your dividend income from mutual fund plans is included in your overall income for the questioned fiscal year. Therefore, if your income is subject to income tax, you must pay tax on this dividend income.  Even though you cannot avoid paying tax on capital gains, you can structure your investment in a way that minimizes your tax liability.  Even though tax-saving mutual funds have some restrictions, you should take four things into account when choosing one. They are investment method, asset allocation, tax-exemption thresholds, and lock-in duration.  Your investments in mutual funds may be eligible for an income tax refund. Tax benefits are available in the case of ELSS, or Equity Linked Savings Schemes, under Section 80C of the Income Tax Act. You can deduct up to Rs. 1.5 lakh from your taxes, which translates to an annual tax savings of about Rs. 46,800. Keep in mind that ELSS has a three-year minimum lock-in term.  There are no wealth taxes imposed on mutual funds or other financial assets.  It’s important to read and study the tax guidelines for mutual funds before investing your money. Connect with a financial expert to make the right choices and make the most of your returns to achieve your financial dreams. TALK TO AN EXPERT

Did you know that there are certain RBI guidelines for education loans that every borrower should be aware of? Let’s find out!    The RBI is in charge of determining the lending standards for Indian banks. It has agreed to give banks' financing to the education sector priority. Similar to any other loan, the bank considers the borrower's creditworthiness before approving an education loan. It's possible for a student to lack a credit history. Therefore, banks consider the CIBIL score of the parents who are the student borrower's co-signers. Here are the RBI guidelines for education loans The RBI demands that banks give deserving applicants education loans. A comparative phrase, "praiseworthy," is used to describe a student who has passed the admission test for professional and technical programs.   It also takes into account pupils who have been accepted to reputable universities on the basis of their employment history, demonstrating the students' potential for employment through campus recruitment.   The interest component of the loan may be claimed as a subsidy when filing for income taxes, according to Section 80E of the Income-tax Act. In addition to this law, the CSIS program offers the economically poorer portion full interest subsidies during the moratorium time.  Based on the sum provided, loans must be separated into protected and unprotected loans. No collateral is needed for loans under 4 lakhs, however, a security deposit in the form of collateral is required for loans over 4 lakhs.   Banks also provide a suspension period right after the program is over, during which the debtor can start looking for employment to begin paying as soon as the term is over.  Depending on whether you're seeking a student loan for India or abroad, the RBI will determine the interest rate. In India, students who are accepted into highly regarded educational institutions must pay a considerably lower interest rate. In general, interest rates primarily consist of fixed and floating rates.   Foreign loans are available with fixed interest rates, but loans from Indian banks for study at Indian colleges have a floating rate of interest.  In accordance with RBI regulations, you must begin making monthly payments as soon as the grace period is ended. Experts recommend that a person's EMI not go over 50% of their wage.  After the time limit, the payback should be finished in a range of 8 to 15 years. The payback period could be extended based on how soon the subsequent course will be finished in rare instances where a student gets another loan for a program enrolled in soon after the initial course completion.  Parents should take into account several factors prior to actually taking out a loan, such as   The potential increase in interest rates  EMI rates  Repayment options available  The RBI guidelines for education loans strive to ease the pressure by managing interest rates and repayment options to make education loans affordable for all.  FAQ What is the rule of RBI for education loans?  Program length plus one year, or six months following the job offer, which comes first. The loan will be repaid in 5-7 years from the start of the repayment period. If a student is unable to finish the course in the allotted time, an increase in the time limit for completion of the course may be allowed for a maximum of two years.  Are there any criteria for an education loan?  The applicant requesting the loan should be an Indian citizen. He or she should have received written confirmation of admission to reputable universities in India or abroad. When applying for a loan, the participant's age must fall between the ages of 18 and 35.  What is the rule for education loan repayment?  For Student and Scholar Loan Schemes, the EMI payback period begins 12 months after the course is finished or 6 months after obtaining employment, whichever comes first. Repayment of the EMI for Global Ed-Vantage Loans begins six months after the course ends. What happens if an education loan is not paid?  The lender would start sending reminders to you and your insurer if there is one if you don't repay your education loan in India. Failure to accept the cautions will result in loan default, which will negatively impact your credit score. For a very long period, you wouldn't be eligible for any loans in the future.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

The asset management branch of State Street Corporation, State Street Global Advisors, was created in 1978 in Boston, Massachusetts.  The company's first three products  The domestic index fund An international index fund (based on the MSCI EAFE index) Short-term investment fund  By 1989, the division's assets were $53 billion (USD). State Street Global Advisors was established in 1990 as a distinct company from State Street Bank to expand internationally.   With the S&P 500 SPDR product release, traded on the American Stock Exchange in 1993, SSGA established the investment vehicle known as the exchange-traded fund (ETF).  State Street Global Advisors (SSGA) is State Street Corporation's investment management subsidiary and the 4th largest asset manager, with roughly $4.14 trillion in assets under administration as of December 31, 2021.   After BlackRock and Vanguard, SSGA is the world's third-largest ETF manager. States, corporations, foundations, non-profit foundations, business financial officers and CFOs, investment firms, financial advisors, and other intermediaries worldwide use the company to create and manage investment plans.  The company has won several accolades for its services. Some of the prominent awards are  Asia Asset Management's 2022: Best of the Best Awards- At Asia Asset Management's 2022 Best of the Best Awards, State Street was named Best Global Custodian in Asia-Pacific (25 years) and Best Middle and Back Office Provider.  HFM Asia Services Awards 2021: State Street was named Best Hedge Fund Custodian for the second year in a row at the HFM Asia Services Awards 2021.  The Asset Triple A Sustainable Investing Awards for Institutional Investor, ETF and Asset Servicing Providers 2021- For the seventh year in a row, State Street was named Best in Securities Lending at The Asset Triple A Asset Servicing Providers Awards.  Aite Group 2020 Impact Innovation Awards The organization earned operational efficiency after being recognized as a financial institution that has used technology to raise the bar.  Asia money FX Survey 2020 In South Korea, Taiwan, and Thailand, State Street has been named Market Leader. The company provides several ETFs and mutual funds to be chosen from. The company has a set of thematic ETFs which focus on cutting-edge innovation.   The SPDR S&P Kensho New Economy ETFs have the backing of S&P Kensho's forward-thinking and dynamic approach, which employs artificial intelligence to analyze regulatory filings to find and classify innovative enterprises based on factors other than revenue and balance sheet data.  Some such ETFs are associated with Future security, clean power, smart mobility, space exploration, intelligent infrastructure, etc.   Fixed-income ETFs come at a high degree of diversification with a 60% lower expense ratio than competitors. Investment worth $621 billion has been made by the firm in fixed-income assets with over 100 strategies.  SPDR Blackstone Senior Loan ETF and SPDR Portfolio TIPS ETF are some of the fixed-income ETFs. There are more than 250 low-cost passively managed ETFs offered by the company all over the globe.  Investors can use SPDR Portfolio ETFs to build large, diversified portfolios by choosing from equities and fixed-income exposures. SPDR Portfolio S&P 400™ Mid Cap ETF, SPDR Portfolio S&P 500® Growth ETF, etc., are some core ETFs.  Gold-backed exchange-traded funds (ETFs) combine the gold market's flexibility, openness, and accessibility with the cost-effective liquidity of an ETF wrapper through the company's offerings. The company offers two distinct products 1. SPDR Gold Shares 2. SPDR Gold Mini Shares The company also provides a variety of ESG investing options along with sectoral investing options and Smart Beta ETFs.  Along with ETFs, the firm also offers a variety of mutual funds to choose from - grouped into four categories SSGA Funds, State Street Institutional Funds, State Street Institutional Investment Trust, and State Street Variable Insurance Series Funds. These funds track indices like FTSE Russell, MSCI, Multiple/Blend, S&P Dow Jones, etc.  Multiple ESG investment strategies 1. Screening Negative screening excludes specific firms, sectors, or nations based on environmental, social, and governance (ESG) issues and an investor's values-based goals. Among the advantages are reduced reputational risk and the ability for investors to avoid providing capital to organizations or sectors that contradict their views.  2. Best in class This strategy focuses on investing in sectors and firms that outperform the industry peers in terms of ESG performance.  3. ESG integration To limit risk and uncover possibilities for long-term outperformance, active portfolio managers routinely include ESG signals and factors in the investment analysis and decision-making process.  4. Climate investing This thematic investment strategy aligns portfolios with the transition to a low-carbon economy and limits global warming to far below 2 degrees Celsius.  5. ESG for index investing ESG investors can benefit from index investing in various ways, including diversification and transparency. Index methods give investors a simple way to acquire broad diversification in their portfolios, which improves risk management.  Thus, the pioneer of ETFs should be taken into account whilst creating a portfolio! FAQs What are State Street Global Advisors known for? State Street Global Advisors is an investment management firm located in the USA. It offers the following services such as portfolio management and advisory services to individuals, institutions, trusts, private funds, charitable organizations, and investment companies Where is the Headquarters for the State Street Global Advisors? The headquarters for State Street Global Advisors is in Boston, Massachusetts, United States. Who are State Street's clients? State Street's clients are Consumer Healthcare Products Association (CHPA) CIGNA. Everytown for Gun Safety Action Fund. Health Partners Plans. Lilly USA Is SSGA an established investment firm? State Street Global Advisors (SSGA) is State Street Corporation's investment management subsidiary and the 4th largest asset manager, with roughly $4.14 trillion in assets under administration as of December 31, 2021.   TALK TO AN EXPERT

This article will look into the three best large-cap categories of ETFs. But before that, let's understand what large-cap is. What is a large cap?  Even if they're young, large-cap corporations are likely to be well-established and dominating in their respective industries. Some corporations go public and have a market cap of more than $10 billion right away.   A corporation having a market capitalization of more than $10 billion is known to be a large-cap (or "big cap"). According to the Wilshire 5000 Overall Market Index, large-cap companies account for roughly 93 percent of the total U.S. equity market.  Large-cap corporations are usually well-known, having a track record of generating high-quality goods and services. Many of these businesses have grown their businesses beyond the United States and may have a diverse business that spans multiple industries.   As these businesses seek to expand, they will look for possibilities to buy smaller businesses or even consolidate with competitors of similar size. Large-cap companies are less volatile and less susceptible to significant price movements. As a result, large-cap stocks are a safer investment option.  Key indices to track the large-cap market  1. Dow Jones Industrial Average Apart from transportation and utilities, the DJIA exclusively analyses the performance of 30 businesses considered "blue chips," or those that are dominating champions in their respective industries. The DJIA is not indicative of the large-cap market as the S&P 500 Index. a 2. S&P 500 Even though it focuses primarily on the large-cap sector, the S&P 500 is the benchmark for the U.S. stock market.   This index measures the performance of the 500 most significant and most profitable corporations in the United States across 11 distinct industries. Top 3 ETFs in the large-cap category  Rank ETF1 Schwab International Equity ETF 2 BlackRock U.S. Carbon Transition Readiness ETF 3 Schwab Emerging Markets Equity ETF  Schwab International Equity ETF   SCHF delivers a market-like basket of worldwide stocks. The fund's portfolio closely resembles our benchmark in performance statistics and sector coverage.   SCHF removes most of the small caps in our standard, although this hasn't substantially influenced performance. The fund is also unique because it includes South Korea. Korean shares wind up in the basket because the fund's index classifies South Korea as an advanced nation.  Unlike many of its competitors, it also carries Canadian stocks. The MSCI ESG Fund Rating for the Schwab International Equity ETF is AAA, based on 8.93 out of 10.   The MSCI ESG Fund Rating assesses a portfolio's long-term resistance to risks and opportunities posed by environmental, social, and governance variables. Performance  Performance [as of 14/03/22]1 year3 years5 years10 yearsSCHF-5.52%6.52%6.33%5.65%MSCI World ex USA IMI Index-3.89%6.67%6.37%5.86% SCHF Top 10 Countries’ exposure Source: etf.com SCHF Top 10 Holdings  Source: etf.com SCHF Details BrandSchwabExpense Ratio0.06%YTD Return-10.91%AUM$27.25BNumber of Holdings1491Avg. Spread ($)$0.01Average Daily $ Volume$309.56M BlackRock U.S. Carbon Transition Readiness ETF  Firstly, LCTU strives to outperform its index, the Russell 1000 Index, a broad equity index comprising the 1,000 largest U.S. corporations. The fund employs proprietary scoring criteria to evaluate companies' readiness for a low-carbon economic transition in comparison to their industry peers when selecting shares from the Russell 1000.   Five categories make up the 'transition ready' score: fossil fuels, clean technology, energy management, waste management, and water management.   LCTU favors high-scoring companies while minimizing risk. Firms may also be evaluated on their governance in addition to their strategy. The fund adviser may invest in Russell 1000 securities that aren't necessarily green economy investments despite the low-carbon orientation.   The MSCI ESG Fund Rating for BlackRock U.S. Carbon Transition Readiness ETF is A.A., based on 8.02 out of 10. The MSCI ESG Fund Rating assesses a portfolio's long-term resistance to risks and opportunities posed by environmental, social, and governance variables.  Performance Performance [as of 14/03/22]1 month3 monthsYTDLCTU-5.37%-10.67%-13.31%No underlying index. The fund performed poorly not because of its inherent structure but due to the volatile markets and emerging uncertain geopolitical situations as of March 2022.  The fund invests entirely in the USA.  LCTU Top 10 holdings  Source: etf.com LCTU details BrandBlackrockExpense Ratio0.14%YTD Return-13.31%AUM$1.34BNumber of Holdings329Avg. Spread ($)$0.05Average Daily $ Volume$215.49K Schwab Emerging Markets Equity ETF   According to FTSE, SCHE follows the FTSE Emerging Index, which comprises large and midcap companies from emerging market countries. Market capitalization is used to choose and weigh stocks.   South Korea is not a part of the index as an emerging market, notable from other comparable indices. Instead, countries like India and China have gained more clout. Every March and September, component are assessed on a semi-annual basis.   The MSCI ESG Fund Rating for the Schwab Emerging Markets Equity ETF is BBB, based on 5.56 out of 10. The MSCI ESG Fund Rating evaluates a portfolio's long-term resistance to risks and opportunities posed by environmental, social, and governance variables.   The best ESG Fund Rating is AAA, while the poorest ESG Fund Rating is the worst (CCC).  Performance Performance [as of 14/03/22]1 year3 years5 years10 yearsSCHE-18.35%2.69%4.52%2.33%MSCI Emerging Markets Investable Market Index-17.99%3.31%4.98%2.53% SCHE Top 10 countries Source: etf.com SCHE Top 10 holdings Source: etf.com  SCHE Details BrandSchwabExpense Ratio0.11%YTD Return-13.54%AUM$8.51BNumber of Holdings1708Avg. Spread ($)$0.01Average Daily $ Volume$75.29M FAQs What is the large-cap category?  A large-cap company refers to a corporation having a market capitalization of more than $10 billion. What is an example of a large-cap stock? Some examples of large-cap stocks are Microsoft, TATA, Apple, Amazon, Alphabet, Reliance, and Facebook. What are the top 3 ETF large-cap funds? Schwab International Equity ETFBlackRock U.S. Carbon Transition Readiness ETFSchwab Emerging Markets Equity ETF Is S&P 500 all large-cap? S&P 500 is a market index that contains large-cap stocks. One should look out at these ETFs before investing in the large-cap category in the USA. Consult an expert advisor to find the right plan for you TALK TO AN EXPERT

In the previous article, we read about what are equity mutual funds. In this article, we will talk about the benefits & types of equity mutual funds. Equity mutual funds invest in shares of different companies. The fund manager aims to maximize the returns by diversifying the portfolio across stocks of various industries and companies with varying market capitalization. There are various types of equity mutual funds based on different categories. Let us have a look at them Types of Equity Mutual Funds Market capitalization-based differentiation  1. Large-cap funds These equity mutual funds invest more than 80% of their assets in the shares of large-cap companies (companies with a market capitalization of > Rs 20000 crores).  Large-cap funds are safer than mid-cap and small-cap funds because the stocks in the large-cap funds are of stable and solid companies with a proven historical track record. 2. Mid-Cap funds As the name suggests, equity mutual funds invest around 65% of the total amount in shares of mid-cap companies (companies with a market capitalization of > Rs 5000 crores but < Rs 20000 crores).  These funds tend to provide slightly better returns than large-cap funds because most of the stocks in these funds are of companies that are still growing to become bigger and better. Apart from offering higher returns, the funds are relatively more volatile. 3. Small-cap funds  Small-cap equity mutual funds invest around 65% of the assets in equity shares of small-cap companies (companies having a market capitalization of < Rs 5000 crores).  This is the riskiest type of fund in the market-cap-based category because the fund invests in companies that are potential superstars that may multiply your money by significant amounts and the risk of capital wipeout if the company fails.  A considerable number of companies in India fall into this category Investment style-based categorization 1. Active funds  These equity mutual funds are ones that fund managers actively manage; they use their knowledge of the markets and situation of the industries to choose stocks that become a part of the portfolio. 2. Passive funds Usually imitate a particular segment of the market, and with that, the stocks that will become a part of the portfolio are determined. A fund manager plays no active role in this regard 3. Sectoral 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. Only investing in a particular industry concentrates your portfolio on all the close activities in the industry. Taxability based categorization ELSS (equity-linked savings scheme) funds allow deductions under section 80C of the Income Tax Act. ELSS schemes allow for up to Rs 1.5 lakh deductions under the act mentioned above of law.  Equity-linked savings scheme funds invest more than 80% of total assets in equity and related instruments. Also, there is a lock-in period of 3 years for these schemes. Other than ELSS, all the additional equity mutual funds in the market are subject to given rates of capital gains tax. Benefits of Equity Mutual Funds 1. Diversified portfolio Equity mutual funds offer diversification by investing in various sectors thereby offering better exposure to the market. 2. Capital appreciation As the company grows, it earns more profits and invests it back in the company, thereby leading to the company's growth, which in turn is reflected in the stock price and thus benefits the fundholders. 3. Small ticket size  Sometimes, buying stocks of companies can be costly, as some good companies' shares are trading in a high price range. However, you can invest in equity funds starting with amounts as low as Rs 500 to Rs 100. 4. Professional management In the event of an actively managed fund, your money is being taken care of by professionals who have tremendous experience in the market. Your money is invested in a way such that your returns are maximized. 5. Risk mitigation  A fund manager follows the rules laid out by asset management companies (AMCs) to mitigate various risks. For example, the risk is reduced by limiting over-exposure to any particular stock or industry. Additionally, parameters like volatility and liquidity are also studied for better risk mitigation strategies. FAQs What are the types of equity mutual funds? Equity mutual funds are divided into three categories- Large-cap mutual funds, Mid-cap mutual funds, and Small-cap mutual funds. Large-cap mutual funds invest more than 80% of their assets in the shares of large-cap companies. While mid-cap mutual funds invest around 65% of the total amount in shares of mid-cap companies. Small-cap equity mutual funds invest around 65% of the assets in equity shares of small-cap companies. Which type of equity mutual fund is the best? Equity Linked Savings Scheme funds offer investors high returns over a long time compared to other funds under Section 80C. For new investors, large-cap mutual funds are the best as they are safer compared to mid-cap and small-cap mutual funds as they invest in big companies with good reputations. Large-cap mutual funds are not likely to offer higher returns than mid-cap and small-cap mutual funds. What are the four types of mutual funds? Mutual funds usually fall into four categories—money market funds, stock funds, bond funds, and target date funds. What are the benefits of equity mutual funds? There are many benefits to investing in equity mutual funds. Equity mutual funds offer diversification by investing in various sectors, thereby offering better exposure to the market. It provides capital appreciation. Professional fund managers look after your portfolio, reducing investment risk. A fund manager follows the rules laid out by asset management companies (AMCs) to mitigate various risks.

Do you know that the value of 1 crore after 20 years will be much less than what it is now due to inflation and high consumption?  Yes, over a longer time frame, the importance of inflation cannot be understated. The buying power of the rupee is reduced by inflation, and the value of each rupee keeps falling over time.  Twenty years from now, assuming a 5 percent annual inflation rate, the value of one crore rupees would be equivalent to about 37.68 lakh rupees. That is the crumbling effect of inflation on our money. Numerous SIP calculators and monthly savings formulas are available to assist you in determining how much you should invest each month if your goal is to save Rs 1 crore. For instance, if you invest 10,000 per month for 20 years at an expected annual growth rate of 12%, you may save Rs 1 crore.  In simple terms, you might have bought a lot more with 1 crore rupees 20 years ago than you can purchase today.  The actual worth of it at that point would therefore be significantly smaller even if you save for one or two decades and are able to accumulate Rs 1 crore or more.  One should remember that even if the economy is experiencing inflation at a 5–6% rate, inflation in the fields of education and medicine will be greater. Therefore, inflation is a crucial element that influences your financial plans, especially long-term objectives like retirement and schooling for your children. Value of 1 lakh after 20 years Read More How can you counter this devaluing of money?  The solution to this issue is to manage your assets by tying them to the rate of inflation. To achieve that, multiply that quantity of the savings plan by the rate of inflation. After that, you can begin a SIP to save for the adjusted inflation amount.  Let's imagine you have higher education plans for your child that will cost about Rs. 15 lakhs over the next twenty years. The cost of the course could increase to about Rs 40 lakh if inflation is projected to be 7%. As a result, you can start saving Rs 8000 per month to amass roughly Rs 40 lakh and put the plan together without difficulty.  In a similar manner, you can manage your long-term objectives by multiplying the present value by inflation. Investing so that you can beat inflation can be tough, which is why taking care of your expenses and seeking sound financial advice can help you maximize the value of your money.  FAQ What will be the value of 1 crore after 30 years?  The value or buying power of Rs 1 crore will be around Rs 23 lakh after 30 years if you really are trying to save Rs 1 crore for a target that is 30 years away.  What would be the value of 1 Cr after 25 years?  In 25 years, a rupee will be valued at around Rs 29.53 lakhs, given a 5% average annual inflation rate. What is the value of 1 lakh rupees after 20 years?  After 20 years, the price of one lakh would be approximately INR 37,000, using a 5% inflation target.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Are you thinking of buying digital gold? But not sure if digital gold is a good investment or not. We will help you.   As India embraces financial education and the desire to engage in different types of investments, the idea of investing in the digital version of a commodity that the country has been both physically and emotionally tied to is slowly beginning to take shape.  In India, physical gold is still the most popular traditional method of gold investment. Digital gold assets are currently being examined. We will discuss the options and how to invest in digital gold in this blog.  Advantages of digital gold It allows you to keep gold digitally without ensuring a secure bank locker. Consequently, you will not have to worry about storage or security. The custodian's vaults have verified 24-carat, 99.99 percent pure gold, which is used for digital gold investments. Impurities are a common problem with physical gold. Purchasing actual gold also implies expensive manufacturing fees. Except for 3% GST, a digital gold account is free. Since digital gold prices are the same throughout India, you may buy and sell gold digitally at completely transparent, real-time market rates.   Additionally, you are not subject to any deductions when selling your gold back to the platform online. If exchanged in this way, the majority of platforms offer the perk of inexpensive home delivery of the physical gold. Additionally, compared to genuine physical gold, digital gold enables purchases in far smaller amounts.  Additional read: Benefits of digital gold Disadvantages of digital gold Ah, to feel as though you were wrapped in gold! Something that digital gold would never provide you. In countries like India, acquiring gold is an obsession. Therefore, digital gold might not resonate with all demographics. However, only some hold that opinion, which is a blessing. Some people view gold as a pure investment, and when given a choice, they choose digital gold since it is quick and secure. Steps to buying Digital gold A Demat account that is connected to a bank account and PAN card is required for investors.  Consumers can purchase specific gold goods via reputable stock exchanges after opening a Demat account, or they may do so straight through a mutual fund for gold ETFs and the RBI-announced SGB (Sovereign Gold Bond) series for SGBs.  Consumers have two options for selling their gold digitally: either they can hold it till maturation and then release it, or they may sell it on the secondary market, or stock exchanges.  Additionally, a few businesses give customers the possibility to buy digital gold starting at INR 1.  Know-your-customer (KYC) documentation must be accurate and checked prior to purchase. E-KYC and video KYC are two available Demat KYC modes that streamline and hasten the procedure of creating an account to purchase gold digitally.  Generally, KYC includes the person's PAN and Aadhar Card information. Additional read: Physical gold vs Digital gold Risk related to digital gold The main risk associated with every investment is that it will often lose value, which will lead to slower growth. That risk applies to digital gold purchases as well  In the case of digital gold, India still lacks a well-established regulatory structure to control metal transactions. It's necessary to think about this possible risk. Investors must conduct due diligence on the honesty and business model of the provider of digital gold until the government announces the required regulations to control the buying and selling of digital gold.  Any online payment is at significant risk from cyber-attacks. This also applies to purchasing the commodity in digital form.  To prevent any hazards, it is important to assess the reliability and standing of the somersaulting company where the gold is kept as well as the sufficiency of insurance if administrators are chosen by digital gold-providing firms.  Another ambiguity is hidden fees. Check any or all charges associated with the product before investing. If not, they will have a negative impact on the investment's overall results.  Conclusion The Indian federal government made it clear in the Plan for FY 21-22 that the markets regulator SEBI will serve as the supervisor for gold markets. This action is anticipated to increase confidence across the board in the commodities market, especially among retail gold buyers and gold traders.  With SEBI functioning as the regulator, the procedure of buying and selling gold is being simplified, like how shares are now dematerialized. This has led to a simpler delivery of the gold product in one trading day plus two more days, or T+2 days.  Investors must be smarter with money and receptive to novel investment products for the idea of purchasing and selling digital gold to become more widely accepted. FAQ Is digital gold better than gold?  There is no difference in price between physical gold and digital gold. Additionally, a person dealing in digital gold should not worry about storage since it is safely kept in free, guaranteed vaults.  Who is buying digital gold?  MMTC PAMP, Augment Goldtech, and Digital Gold India are the 3 best-known companies offering digital gold in India (Safe Gold) in partnerships with several financial service providers, including Paytm, Google Pay, Amazon Pay, and Phone Pe, among others, these businesses sell digital gold. Can I get profit from digital gold?  Virtual gold is a profitable investment choice despite some downsides, such as investment caps and a lack of a governing organization. It supplies adaptability, purity, and the right financial worth. Consult an expert advisor to get the right plan TALK TO AN EXPERT

It is always a good idea to have a financial expert manage your money. A mutual fund firm or an Asset Management Company (AMC) is exactly that expert when it comes to investing.  What are Asset management company(AMC)?  Asset Management Companies are businesses that collect money from different institutional and individual investors and invest it in a variety of securities. The corporation uses the money to buy capital assets like stocks, bonds, and other types of property. The research team chooses the appropriate assets, and the asset management companies employ specialists known as fund managers to oversee the investments.  Fund managers discover investment possibilities that align with the fund's goals. To safeguard the investment and generate a consistent return, they invest money in debt funds such as bonds and government securities. To maximize returns for investors, an equity fund is typically invested in company shares. Start Investing in Mutual Funds How are the funds managed by an Asset management company?  Direct mutual fund investments can be made through an AMC. The corporation is primarily in charge of managing the mutual fund and making choices that are beneficial to investors. It makes investments as per the scheme's set goals under the direction of a fund manager. The general steps are described below 1. Asset allocation  The specific investment goal of mutual funds aids the fund manager in selecting the assets in which investments can be placed. As an illustration, the majority of debt-oriented funds manage a sizable amount of their assets in bonds and other fixed-income securities. Another instance is how the majority of balanced funds blend their investments in stocks and fixed-income assets. 2. Research and Analysis  A lot of research and analysis of the performance of the asset classes goes into building the fund's portfolio. Experts conduct market, micro, and macroeconomic analyses and communicate their findings to the fund manager, who bases investment choices on the fund's goals.  3. Portfolio Building  The fund manager is often updated on market trends and results by a team of researchers and analysts who work for the AMC. The fund manager then determines which securities to acquire or sell based on these results and the investing goals of the fund. This is how a business develops a portfolio.  4. Performance Evaluation  AMCs are required to give their unit-holders information that directly affects their mutual fund investments. Additionally, it must regularly update investors on sales and repurchases, NAV, portfolio information, and other matters. Simply put, AMCs have a responsibility to represent and protect the interests of mutual fund participants. Additionally, they must address client complaints about their mutual fund schemes. source: pexels What criteria should an investor use to select an Asset management company?  Before selecting an AMC, you must look into both the AMC's track record and the assets it is currently managing. Selecting an AMC with substantial assets under management that can withstand rapid redemption demand from major investors is important.   When selecting an AMC, investors should take the following factors into account:  Credentials of the fund manager: You must look at the manager's history and investment philosophy. The investment approach and expertise of the fund manager determine the performance of many mutual fund schemes.  The AMC's reputation: It might take months or years for a fund house to establish its standing in the industry. An AMC usually develops a solid reputation after continuously performing for five or ten years.  Look at the ratings: Speaking with other investors will help you determine whether prior performance has been consistent and whether the AMC has had any complaints.  Are fund houses as reliable as banks?  There is a common misconception that mutual funds are less secure than bank accounts or bank-sponsored investing programs. People worry that AMCs might go out of business or steal their money at any time. People frequently forget that AMFI is responsible for investor education and that SEBI, the capital market regulator, oversees mutual funds.  AMFI and SEBI's Role in AMC Operations  AMCs operate under the direction of a trustee board. However, they must answer to the Securities and Exchange Board of India (SEBI), which oversees the country's capital markets. Another regulatory organization that answers investor complaints and protects their interests is the Association of Mutual Funds in India (AMFI). The set of risk management standards established by SEBI and AMFI must be followed by every mutual fund house.  The AMFI was created by mutual fund companies, whereas SEBI is a government organization. Together, they maintain the industry's ethical foundation and transparency. Mutual funds require clearance if they are establishing guaranteed schemes, and the RBI is crucial in regulating AMCs. Finally, all of these regulators are under the control of the Ministry of Finance. Guidelines for investors from SEBI and AMFI  Some of the standards and regulations that SEBI, AMFI, and RBI prescribe for mutual fund firms include the following:  SEBI has set some guidelines for the reports that AMCs must provide to the trustees.   The trustees must receive the compliance certificate from AMCs every two months.  They must provide the trustees with quarterly updates on their operations and adherence to these rules.  The firm is not allowed to invest in any of its schemes unless the offer documents fully disclose the company's intention to do so.  The AMC Chairman is not allowed to serve as a trustee for any mutual funds.  AMC's top employees should have a spotless record (not convicted of any financial offense such as fraud or insider trading).  The AMC should be under Rs 10 crores in net value.  AMCs are not permitted to act as mutual fund trustees.  FAQs Which is the best AMC for mutual funds? Some of the best AMCs in India for investing in mutual funds are: SBI Mutual Fund ICICI Prudential Mutual Fund TATA Mutual Fund DSP Mutual Fund Kotak Mutual Fund How many AMCs are there in India? There are over 44 AMCs in India managing thousands of mutual funds. SBI mutual fund is one of the oldest mutual fund management companies in the country. How do I invest in AMC mutual funds? You can directly invest with a particular AMC by visiting and setting up an account on their official website. Many AMC lists their mutual funds on different investment platforms which you can visit and select the best fund based on your financial preferences. How do I choose the right AMC? To choose the right AMC, you need to answer certain financial questions - What is your investment objective and goal of investing? What is your time horizon and how long can you stay invested? What is your risk tolerance? What kind of performance and growth has the particular AMC recorded in the last few years? What is the consistency of performance, fund manager's experience, AMC Track Record, and investment objective? Are fund houses as reliable as banks? There is a common misconception that mutual funds are less secure than bank accounts or bank-sponsored investing programs. Which is the biggest AMC in India? SBI Mutual fund is the biggest AMC in India. There are over 44 AMCs in India managing thousands of mutual funds. If you are interested in investing via AMC curated mutual funds for your child’s education then check out the EduFund App and select the top performers!  TALK TO AN EXPERT

You've probably heard of Nasdaq if you follow financial news. After the New York Stock Exchange (NYSE), Nasdaq is the world's second-largest stock exchange and is home to tech titans such as Apple, Google, and Amazon.  The Nasdaq market has grown to accommodate over 4,000 corporate listings since its inception in 1971, including many of today's largest corporations.  The value of the Nasdaq-listed portfolio changes with the performance of the companies under consideration.  But what is the Nasdaq, and how does it function? Let's have a peek at one of the most well-known stock exchanges in the world. What is Nasdaq?  Nasdaq stands for National Association of Securities Dealers Automated Quotations; in case you didn't know. It was a division of the National Association of Securities Dealers (NASD), now the Financial Industry Regulatory Authority (FINRA).   Nasdaq was set up as a platform for investors to trade assets automated, fast, and transparently.  The Nasdaq split from the NASD in 2006 and formed its own company. Nasdaq announced in 2007 that it would merge with the OMX Nordic Exchange to form Nasdaq OMX the following year.  How does the Nasdaq work?  The Nasdaq was built from the ground up to deliver automated quotes. It regularly supported over-the-counter (OTC) trading in the years after its creation, when Nasdaq became associated with OTC and was frequently synonymized as an OTC market by mainstream and trade magazines.  Later, the implementation of automated technologies was done to generate trade and volume information – it became the first exchange to offer electronic trading.  All deals made by investors on Nasdaq's electronic exchanges are executed through dealers, often known as "market makers," rather than directly through auctions.  Trading hours on the Nasdaq  The Nasdaq, like the NYSE, is open for trading from 9:30 a.m. to 4 p.m. ET. Traders can take advantage of Nasdaq's "pre-market" and "post-market" hours. From 4 a.m. to 9:30 a.m. ET and from 4 p.m. to 8 p.m. ET are the pre-market and post-market hours, respectively.  It is critical to account for the time difference between the United States and India while investing in India. The NYSE and NASDAQ open at 8 p.m. and close at 2.30 a.m. respectively, in Indian Standard Time (IST). The US stock markets open at 7 p.m. IST and close at 1:30 a.m. IST during daylight saving time. Source: Freepik Requirements for Nasdaq listing  A corporation must meet the following criteria to be on the Nasdaq electronic exchange  Meet specific financial, liquidity, and corporate governance standards.  Be a member of the Securities and Exchange Commission (SEC) (SEC)  At least three market makers are required.  Companies should meet the criteria regarding their size and trading volume  The approval of a company's listing might take anywhere from four to six weeks after an application is submitted.  Nasdaq Market Tiers in the United States  A corporation's shares will be offered under one of three market tiers, depending on the listing requirements:  1. Global select market This composite is weighted based on market capitalization and comprises stocks from domestic and international companies.   Companies listed here must meet Nasdaq's strict criteria. Nasdaq's Listing Qualifications Department Reviews Global Market listings on an annual basis and, if they are eligible, moves them to the Global Select Market.  2. Global market Nasdaq's Global Market comprises equities from companies listed in the United States and worldwide – classified as a mid-cap market.  3. Capital market Before Nasdaq changed its name, the Capital Market was known as the SmallCap Market. It is an extensive list of companies with smaller market capitalizations.  Nasdaq performance  Nasdaq's overall performance has been quite robust in the previous quarter-century because it is mostly tech stocks. The NASDAQ-100 index, which comprises the exchange's top 100 stocks, had a five-year return of 196.31 percent and a 10-year return of 552.24 percent as of November 3, 2021.   Meanwhile, the Composite Index returned 171.64 percent over five years and 444.12 percent over ten years. The Nasdaq has outpaced other vital indices, such as the S&P 500.  The Nasdaq Composite and Nasdaq 100 indexes  Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Tesla (TSLA) make up most of the Nasdaq Composite Index. On the other hand, Nasdaq includes corporations in the oil, industrial, consumer products, and healthcare areas.  The Nasdaq 100 index, for example, measures 100 of the Nasdaq Composite's largest and most commonly traded securities.  All things considered, the Nasdaq is a stock market where businesses can list their stock. Investors can purchase and sell corporate shares on these markets through brokers. Nasdaq is famed for its ingenuity.   To summarize many of the world's most prestigious businesses are now listed on the Nasdaq, and you trade in their securities either directly or via instruments like ETFs and mutual funds FAQs What is Nasdaq? Nasdaq stands for National Association of Securities Dealers Automated Quotations. It was a division of the National Association of Securities Dealers (NASD), now the Financial Industry Regulatory Authority (FINRA).   Nasdaq was set up as a platform for investors to trade assets automated, fast, and transparently. How does Nasdaq work? The Nasdaq was built from the ground up to deliver automated quotes. It regularly supported over-the-counter (OTC) trading in the years after its creation, when Nasdaq became associated with OTC and was frequently synonymized as an OTC market by mainstream and trade magazines.  What is in the Nasdaq? Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Tesla (TSLA) make up most of the Nasdaq Composite Index. On the other hand, Nasdaq includes corporations in the oil, industrial, consumer products, and healthcare areas.  The Nasdaq 100 index, for example, measures 100 of the Nasdaq Composite's largest and most commonly traded securities. Who owns the Nasdaq? Nasdaq is one of the largest stock exchanges in the world and the USA. It is owned by the AB Wallenberg family.

If you pay attention to your daily routine, you'll see that many firms' products/services have a link with your life and the lives of millions of families across the nation and the globe. But it begs the question: Are you taking advantage of such opportunities?  During talks, we frequently hear statements like, "The Pradhan Mantri Jan Dhan Yojana is a terrific program introduced by the government to make banking inclusive" but what are we doing to turn this into wealth?  Today's world is constantly evolving, and there has been a massive paradigm shift due to disruptive ideas, unparalleled technical advancements, and changing consumer tastes. Thematic investing is a type of investment strategy that identifies more significant macro-level trends as well as the firms and sectors that will benefit from those trends materializing.   A good investor seeks to predict these trends and buy in the underlying assets and businesses ahead of time. The goal of thematic investing is to profit from these transitions by selecting and investing in firms most likely to gain from them.   It entails matching our values and ideals to our assets. Thematic investing is gaining popularity to identify future contributors of return from stock investments allowing investors to outpace traditional broad indexes, which reflect the market's overall movement. The good news for many investors is that thematic investing offers the potential to assist in positioning holdings for long-term growth. What is the process of Thematic investing?  A conventional thematic investing strategy considers the following variables when selecting stocks, ETFs, bonds, mutual funds, and other assets.  You can engage in themed mutual funds or exchange-traded funds (ETFs), which provide you with expert investment analysis and management benefits.   While investing in ETFs or mutual funds, you can benefit from experienced financial planners and research groups who strive to build high-performing products.   Investing in a thematic fund enables you to diversify your risk by investing in a single theme.  Manually creating a thematic portfolio involves the following steps Finding Themes and Categories - As a first step, you should screen out the themes you are interested in.  Research and Choice - Examine various concepts and sectors, compare them to other asset classes, and decide.  Managing Weights - Consideration is for the market-cap-weighted or risk-weighted allocation in the portfolio. You can, however, shuffle and personalize your portfolio based on your risk appetite.  Rebalance - It is customary to restructure your portfolio regularly to get optimal returns and risk balance. As the performance of the constituents diverges, you should change your portfolio to bring the weights back into line with the original strategy. Sector Investing vs Thematic Investing  Since sector investment and thematic investing are similar, it's easier to get these two methods mixed up. Targeting companies in specific parts of the economy, like information technology or energy, is known as sector investing.   On the other hand, a theme investing strategy can span many industries to correspond with a potential market or specific goal.  1. Sectoral investing Investing in companies that are parts of a specific industry, such as semiconductor manufacturers, healthcare, or social media companies.  2. Thematic investing Investing in one or more of the following industries simultaneously, as long as they are related to a disruptive communications theme: semiconductor manufacturers, mobile phone tower operators, and social media firms.  Benefits of Thematic Investing Thematic investing allows you to profit from future trends. It assists you in investing in 'Future Businesses' due to its forward-looking character.  A themed investment strategy focuses on a single theme, idea, event, or government policy and invests in linked industries.  To understand future trends, thematic investing necessitates a thorough awareness of the impact of all patterns on various areas and sectors and a forward-thinking cognitive process.  Thematic investing can operate as a portfolio hedge since it focuses on global trends and disruptive innovations.  Thematic investing gives the possibility for investors to earn more alpha.  Limitations of Thematic Investing  Thematic funds carry a high level of risk because of their basis on a single idea or subject that may or may not generate high returns, particularly during market cycles.  If you invest in themed mutual funds, you should expect a higher expense ratio than conventional mutual funds.  FAQs What is Thematic investing? Thematic investing is a type of investment strategy that identifies more significant macro-level trends as well as the firms and sectors that will benefit from those trends materializing. This type of investment allows you to take advantage of upcoming trends and invest in profitable upcoming investments. What does thematic mean in investing? Thematic investing researches a particular theme and its consequent investment opportunities. It you to profit from future trends. It assists you in investing in 'Future Businesses' due to its forward-looking character.  A themed investment strategy focuses on a single theme, idea, event, or government policy and invests in linked industries.  How do you do thematic investing? Fund managers or advisors research a theme that they believe will become profitable in the future. They develop a strategy to study its development and investment opportunities. For example, digitization and AI are considered futuristic themes worth evaluating from a thematic investing perspective. Is thematic investing risky? Yes, just like any form of investing, thematic investing carries a level of risk and return. Emerging opportunities and structural transformations that can provide superior returns or intangible gratification to the investor are the focus of thematic investing.  To create optimal returns and maintain a balanced risk profile, you should regularly monitor and review your portfolio. Consult our expert advisor to get the right plan  TALK TO AN EXPERT