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Are you interested in investing in stocks with a range of market capitalizations? Do you wish to build your portfolio flexibly? Consider investing in Flexi-Cap Funds. It is a type of mutual fund that invests without limitations, primarily in large, mid, and small-cap companies. Fund managers optimize exposure to a specific market segment depending on the state of the market.  What are Flexi-Cap Funds? Flexi-Cap Funds make stock investments in various market capitalizations, topics, industries, and sectors. The fund must invest at least 65% of its assets in equities and securities related to equity, per SEBI regulations. Depending on the state of the market, the fund manager may choose to increase or decrease exposure to a particular market segment.  According to AMFI data, Flexi-Cap funds received the most money from equity funds in June 2022, amounting to Rs 2,511.74 crore. In addition, the Flexi-Cap Fund sector had a 31% average return for 2021. For example, Flexi-Cap Funds beat Multi-Cap Funds, ELSS, Small-Cap Funds, Mid-Cap Funds, Thematic Funds, and Thematic Sectoral Funds. Should you invest in Flexi-Cap Funds? If you have a more significant risk tolerance, consider investing in Flexi-Cap Funds. It is appropriate for individuals familiar with the market and may have a large allocation to mid-cap and small-cap firms. If this is your first time investing in the stock market, stay away from this one.  The stock market has been highly turbulent after Russia invaded Ukraine. It's because India imports over 80% of its energy needs, and global crude oil prices have also risen. Inflation in India is skyrocketing as domestic gasoline, diesel, and LPG costs increase. In the current market environment, Flexi-Cap Funds have chosen a novel strategy. For instance, the average asset allocation for Flexi-Cap fund schemes was 65% of assets allocated to large-cap stocks. Large-cap stocks have better stability and increased liquidity in a turbulent stock market; therefore, investing in them is a wise strategy. Large-cap companies are also more risk-adjusted during a market crash since they are more established and offer larger returns.  Flexi-cap funds have less risk to mid-cap and small-cap firms when the markets are unstable. It gives the portfolio more stability than mid-caps and small-cap stocks, which tend to tumble in a declining stock market. If you're looking for credible alternative investments in the present market since large-cap funds have recently underperformed, consider investing in Flexi-cap funds. Why invest in Flexi-Cap Funds? You can build a diversified portfolio with the aid of Flexi-Cap Funds for every market scenario. You are exposed to equities from various sectors, industries, and themes.  To maximize investment returns, Flexi-cap funds combine various investment strategies. For instance, the value style concentrates on inexpensive companies to maximize long-term profits, whereas the growth style concentrates on growth potential.  The Flexi-Cap funds are an option; they have outperformed peers and the benchmark index over time. Additionally, seek performers that deliver in both bull and bear markets. Whenever the stock markets are down, choosing Flexi-Cap funds, which have performed well, pays off. Examine the portfolio of the Flexi-Cap fund because some are more conservative and have a bigger risk to large-cap stocks. If your time horizon is greater than five years, only then are Flexi-Cap funds required. It's because equities funds can provide long-term gains that outpace inflation. Nevertheless, pick Flexi-Cap funds with a lower expense ratio, representing the fund management cost. Over time, it contributes to rising overall returns. In summary, Flexi-Cap funds are a wise investment in a turbulent stock market.  What is the difference between Flexi-Caps and Multi-Caps?  Fund managers for multi-cap schemes must ensure that 25% of their assets are invested in each of the three market caps, large-cap, mid-cap, and small-cap. Flexi-cap funds are exempt from this restriction in all three parts.  Who should invest in Flexi-Cap funds? Long-term investors with some investing experience should consider Flexi-cap funds. It allows owners and fund managers the flexibility to make asset investments based on their perception of the market.  It might be appropriate for investors with a five to seven-year investment horizon because it might offer better returns and possibly outperform inflation. They ought to be ready for potential ups and downs in their investments, though. Flexi-cap funds taxation  Flexi-cap funds are taxed under the Income-tax Act of 1961 as equity-oriented schemes. Regardless of the slab rate, profits from a Flexi-cap scheme are taxed at a flat rate of 15% within a year. After the first exemption of Rs. 1 lakh relates to all long-term capital gains, profits over 12 months are subject to a flat 10% tax rate. Conclusion  Investors should choose a Flexi-cap program very carefully. Before investing, they must be aware of their risk appetite and tolerance. Flexi-cap plans, for instance, may be conservative. Therefore, it is up to you if you are a risk-averse person or the opposite. Flexi-cap schemes, like other schemes, are subject to various market risks, including volatility, economic decline, and geopolitical conflicts. Other than that, if there's any confusion or you need any information, our team of efficient financial advisors is always available for you. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Want to invest in India? Here are the best top 10 investment options in India available to park your money!  Every investor wants to enjoy ultra-high returns by undertaking ultra-low risk. However, this possibility is non-existent in reality. The risk-reward equation says that one has to experience more trouble to get high returns.   So, a sound risk-reward analysis must reap the highest possible benefits before choosing an investment. India is the land of possibilities. The Indian economy is growing at a great pace, with a vast population dividend to reap.   With India's ever-expanding infrastructure, high level of competitiveness with the other major global economies, and very significant economic influence, India will be a powerhouse of economic growth in the future. For you to become a part of this growth journey and increase your wealth in the meantime, we'll tell you about ten ways to invest in India.  There are two categories of investments in the broad aspect  Financial investment  Non-financial investment Financial investment includes stocks, bonds, and different bank products, whereas non-financial investment assets include gold and real estate Top 10 investment options in India 1. Equity shares Among all the investment products listed here, direct equity investment offers the highest returns in a combination of stock appreciation and dividends. Equity markets often tend to be considerably volatile in the short run but give better inflation-adjusted returns when a long-time horizon (10 years and beyond) is taken into account.  You can directly buy and sell shares of companies listed on the BSE (Bombay Stock Exchange) and the NSE (National Stock Exchange). You can take different types of trades like intra-day trade (buy and sell on the same day), swing trade (buy and sell over a week or a month), and invest for the long term. You can diversify your portfolio by purchasing stocks of companies from different industries – thus, taking into account the growth in various sectors of the economy. Because of the unpredictability of the world markets and the possibility of sectoral turbulence, equity is the riskiest asset class (not considering cryptocurrency here) out there to invest in. There always remains a chance of potential capital wipe-out when the markets crash during challenging economic scenarios.   2. Equity mutual funds Equity mutual funds are packages that invest in inequities. For example, instead of purchasing individual stock from a particular industry, you can purchase a mutual fund that encapsulates the growth of that industry, these are less risky because of their diversified nature.  According to SEBI rules, an equity mutual fund invests more than 65% in equity. An equity mutual fund may either be managed actively or passively. The returns on these mutual funds also depend on the fund manager's expertise.   3. Debt mutual funds As the name suggests, debt mutual funds invest most in debt securities – these funds appeal to investors with a low-risk appetite with the request for steady returns. Debt mutual funds make investments in government bonds, corporate bonds, treasury bills, and other money market instruments.   Low risk does not mean any risk. Debt mutual funds bring along credit risks and interest rate risks that you need to study well before investing in debt mutual funds.   4. Fixed deposits (FD) A bank FD is safer than almost all investment options out in the market. With a high degree of safety come meager returns. FDs are a way to keep your money (the returns are often so low that they do not even match inflation figures), not an instrument to grow your money.   In the case of bank default, the depositors get insurance for up to Rs 5 lakh each (under the Deposit Insurance and Credit Guarantee corporation).   5. Bonds Bonds are fixed-income securities representing a loan advanced by a borrower to the investor. When governments or even listed companies want to raise money in 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). Prices of bonds and the rate of interest move in the opposite direction. At maturity, the entire principal has to be paid back. There are different types of bonds, like government bonds, corporate bonds, and municipality bonds.    The risk of investment in bonds also arises from 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.   6. Pradhan Mantri Vaya Vandana Yojna (PMVVY) This investment instrument is for senior citizens (age > 60 years). PMVVY provides a guaranteed return of 7.4% per annum. The payout offered is pension income payable either monthly, quarterly, bi-annually, or annually, with pension amounts ranging from Rs 1000 to Rs 9250.   The upper limit for the investment amount is Rs 15 lakh, with a tenure of 10 years. The senior citizen (or the nominee in case of the senior citizen's demise) receives the maturity amount.  7. National Pension Scheme (NPS) This is a retirement-oriented investment instrument managed by Pension Fund Regulatory and Development Authority (PFRDA). It is a mixture of equity, debt, fixed deposits, and liquid funds. You can decide the proportion of your investment according to your risk appetite. You can invest in this for as low as Rs 1000.    There exists a risk factor here as well – it comes from the underlying assets that the scheme invests in; depending upon the exposure to equity and debt (etc.), the risk is determined.   8. Public provident fund (PPF) PPF is a 15-year-long tax-free (interest) instrument. The interest on PPF accounts is reviewed by the government every quarter. A minimum of Rs 500 every month also works for a PPF account. A sovereign guarantee backs the interest earned here, and thus, PPF is a very safe investment.   9. Gold Gold is often known as a haven for investors. Gold will act as a hedge in your portfolio. Historically, gold has been a winner in times when the economy is in the doldrums. In the long run, the increasing price of gold makes it a good investment.   You can buy digital gold, sovereign gold bonds, gold ETFs, and physical gold. It is also a very liquid asset to possess.   10. Real estate Real estate investment is a humongous task for the general public. The real success of the investment depends on the type, location, and possible rental yield of the property. Also, the houses you reside in are not investments, because they do not generate positive cashflows.  The profits in real estate are generated through the price appreciation of the property and the rent that it yields. A suitable property can overhaul all negative returns in your portfolio, while a bad one can block your capital with no growth possibility. With the high investment amounts, asset illiquidity, and many regulatory approvals, real estate remains a less popular investment choice among the commoners.   Use your risk-reward analysis to choose the best option for you. FAQs How to choose the best investment options? To choose the best investment options, you need to first understand your goals, when you want to achieve them and the cost required. For example, your goal is to send your daughter to the UK to study abroad. You may have a time span of 10 years- 12 years (assuming your daughter is in school). This means you need 50-60 lakhs to fund her education and maybe more considering inflation. Once, you know your goal, you can now approach a financial advisor or explore yourself to figure out your investment options to get the amount. What types of investment options in India are suitable for an average person? There are many investment options in India that are suitable for the average Indian. They can go for Mutual funds, ETFs, Indian stocks, US stocks, Bonds, Gold, Digital Gold and much more. The investment options depend upon the short-term and long-term goals that the investor has set for themselves. Why should I check my risk tolerance before investing money? Risk tolerance refers to how much risk one is willing to take and how much money are they willing to expose. Markets are volatile by nature and are driven by multiple factors that can affect your investment. Understanding the risk involved and ensuring measures to minimize the impact allows you to check your risk tolerance. What do you mean by a diversified investment portfolio? A diversified investment portfolio gives you exposure to different investments. For example, investing in stocks, mutual funds, ETFs and US dollars can bring diversification to your portfolio. Diversification does not mean taking on different types of investments, it means seeking a balanced portfolio and exposure to different investments. It is important to consult a financial advisor for a diversified investment portfolio. Consult an expert advisor to find the right plan for you TALK TO AN EXPERT

Living expenses in Canada for Indian students are very high and aspiring applicants need to be aware of them before traveling abroad for the desired study course. Canada is the preferred study hub because of its growing economy, cultural diversity, access to seamless medical care, and unlimited job opportunities.  The country is known for its excellent education system, distinctive curriculum, numerous study courses, and reputed colleges and universities. A promising future encourages Indian students to travel to Canada for higher studies but what about the living expenses?  There has been a lot of speculation about the living cost in Canada hence let us find the answers to the queries related to the cost of essential expenses. Living expenses in Canada for Indian students The average living expenses in Canada for Indian students vary between 15,000 CAD (nearly INR 8.9 lakhs) – 20,000 CAD (nearly INR 11.9 lakhs) every year based on individual lifestyles and different cities across the country.  The essential living expenses that an Indian student has to incur include- 1. Accommodation (average monthly cost) The most popular options for accommodation are dormitories which house many students and townhouses which house three to six students. Both on-campus accommodations have several facilities like hot water, internet, and heat. Other popular choices are shared apartments and unfurnished rental apartments. The average monthly living cost of the accommodations is-  Dormitories 350 CAD – 600 CAD (nearly INR 20,958 INR 35,928)Townhouses 250 CAD – 650 CAD (nearly INR 14,970 - INR 38,922)Shared Apartments 400 CAD – 800 CAD (nearly INR 23,942 – INR 47,904)Unfurnished Rental Apartments300 CAD – 500 CAD (nearly INR 17,964 – INR 29,940) Master's vs. PGDM in Canada? Read More 2. Food (average monthly cost) It is easy to get an estimate of food expenses by going through the rates of some of the most common food items. Water (1.5 liters)1.84 CAD (nearly INR 110)Rice (1kg)3.74 CAD (nearly INR 224)Apple (1 kg) 4.24 CAD (nearly INR 254)Cheese (1kg)12.99 CAD (nearly INR 778 )Milk (1 Liter)2.46 CAD (nearly INR 147)Eggs (12)3.63 CAD (nearly INR 217) How to finance a child's master's in Canada? Read More 3. Transportation (average monthly costs) Students use public transport in Canada as it is quite safe and easy to navigate. You can get student discounts by showing your student ID card. The average monthly costs of using some of the common modes of transportation are –  Bus 100 CAD – 150 CAD (nearly INR 5,988 – INR 8,982)Subway65 CAD – 99 CAD (nearly INR 3,892 – INR 5,928)Taxis per km40 CAD -50 CAD (nearly INR 2,395 – INR 2,994) Canada University Fee Structure Read More 4. Health Insurance (average annual premium) Every international student must have a health insurance policy in Canada. The coverage depends upon the province where one lives. Some popular medical insurance plans with their costs are BC MSP Program74 CAD/month (nearly INR 4431)iMED 225 CAD for 3 months (nearly INR 13,473) 5. Miscellaneous (average monthly cost) It is important to factor in personal expenses like clothing, laundry, toiletries, etc. which are part of everyday spending and depend upon an individual’s lifestyle.  Other important expenses include Electricity (average monthly costs) – 50 CAD (nearly INR 2,994) Phone bill - (average monthly costs) – 40 CAD – 100 CAD (nearly INR 2,395 – INR 5,988) Internet (average monthly costs) – 30 CAD – 50 CAD (nearly INR 1,796 – INR 2,994) Tenant’s Insurance (average monthly costs) – 15 CAD – 30 CAD (nearly INR 898 - INR 1,796) Cost of living in some of the cities of Canada The cost of living for Indian students depends upon their lifestyle and the city they live in. Some of the popular and most costly destinations for students and the average cost of living in that city are mentioned below- City The average cost of living every yearToronto37,000 CAD (nearly INR 22 lakhs)Montreal 25,000 CAD (nearly INR 14.9 lakhs)Ottawa20,000 CAD (nearly INR 11.9 lakhs)Calgary26,904 CAD (nearly INR 16.1 lakhs)Vancouver38,484 CAD (nearly INR 23.08 lakhs) 10 Tips to save money in Canada 1. Try to save money Save money whenever you can. If you find alternatives to doing something on your own then instead of spending it, save the money.   2. Apply for scholarships Every college has scholarships. Canadian universities offer amazing scholarships to potential students, so take advantage of them.     3. Keep a budget To save money as a student, you need to keep a budget for everything. When there’s no budget maintenance, people tend to spend more. Have a fixed budget for the month and don’t spend more than it.  4. Cook your meals University campuses are filled with food stalls and fast food joints and when you are hungry, you buy them, and then your bank balance drops.  So cook for yourself.    5. Claim student bank discounts and offers All bank in Canada has offers for students. Take advantage of them. Save every penny.   6. Buy second-hand stuff if you can You might need something but you don’t need to buy everything new. You can buy them in any second-hand marketplace and you can find anything there.  So instead of buying everything new or on amazon search it in these marketplaces.  7. Don’t use credit cards Credit users tend to spend more as they think they have enough money but you spend more than they need.  So cut them off.  8. Start doing a side hustle  Start earning!   Start doing a hustle so that you can earn more. Then you don’t have to worry much about your expenses. There are too many ways to earn more.   9. Use a bicycle If you need to travel daily and it’s a short distance then buy a bicycle instead of using public transport and spending more money.  10. Lower your party days Party is okay, everyone loves to party but don’t do too much of it too. Set a monthly budget for it.   FAQs How can I earn money in Canada? Students can work up to 20 hours per week off-campus in Canada. You can take up some internships or part-time jobs or start a side hustle. International students on a student permit are legally allowed to work and earn a living in Canada to help with finances.   What is the average living cost in Canada? The average living expenses in Canada for Indian students vary between 15,000 CAD (nearly INR 8.9 lakhs) – 20,000 CAD (nearly INR 11.9 lakhs) every year based on individual lifestyles and different cities across the country.  Is living in Canada expensive? Canada is considered one of the most expensive countries to live in. The most expensive city in the country is Toronto. How much money do you need to live in Canada comfortably? As a student, you need roughly 15,000 CAD (nearly INR 8.9 lakhs) – 20,000 CAD (nearly INR 11.9 lakhs) every year. What problem an International student can face? Problems like cultural shock, new language, new people, accommodation, money management, etc. There are many student accommodation scams and foreigner scams that you need to be aware of so that you do not end up losing your hard-earned money. Conclusion Canada is no doubt an expensive country and it is challenging to manage the education and living costs simultaneously. A well-structured financial plan can be a blessing in disguise but you need an expert who can formulate such an organized plan for you.  Knowing about the living expenses in Canada for Indian students is important especially when they are preparing for overseas education. The college cost calculator on the Edufund app takes into account the future living costs so that the students can be aware of the average total cost of studying abroad and plan accordingly. 

In the previous article, we talked about the difference between IELTS and TOEFL. In this article, we will learn about the difference between IELTS and PTE. English proficiency exams like IELTS and PTE and the GRE and GMAT also form part of the requirements for university applications in English-speaking countries.   In many cases, all applicants with a non-English speaking background must submit their IELTS/PTE scores to the university to which they are applying. What is IELTS?  The International English Language Testing System (IELTS) is made to let you work, study or move to a country without worrying about your English which can be the native language. This includes countries like Australia, Canada, The UK, New Zealand, and the USA.  Your capacity to listen, read, write, and talk in English could be assessed in the course of the test. IELTS is marked on a scale of 1-9. IELTS is collectively owned by the British Council, IDP: IELTS Australia, and Cambridge English.   What is PTE?  PTE is the Pearson Test of English. It is a worldwide totally computer-based English Competency check. To get a seat down the check, candidates need to sign in online and get a seat down their check in a licensed PTE check center.   Difference between IELTS and PTE Basis of DistinctionIELTS (Academic)PTE (Academic)NameInternational English Language Testing SystemPearson Test of EnglishConducting BodyBritish Council and IDP Education LtdPearson PLC groupDuration2 hours 45 minutes145 minutes to 190 minutes to finish fullySectionsReading, writing, listening and speakingReading, writing, listening and speakingMedium of conductComputer-based and Paper-basedComputer-basedScore rangeBand 0 to 9Band 10 to 90No. of timesCandidates can take this exam 48 times a yearCandidates can take this exam for more than 360 days a yearCountry of PreferenceAll UK universities accept IELTS academic test scores as a certification of English language abilityUsually accepted by universities in the UK, Australia, and New ZealandCost (Usual)$225$150 - $210Validity of scores2 years2 years IELTS vs PTE: Deep understanding 1. Speaking   The IELTS speaking test is given face-to-face and lasts 10-15 minutes. Students must speak at length about a familiar topic and answer questions.   PTE requires you to make a personal introduction, read aloud, repeat sentences, describe the visual, retell the lecture, and answer a question.  2. Writing In IELTS writing test is to explain a graph or diagram, and the second is to write an essay on a given topic or the evaluation of an argument.  PTE, you must summarize a text in one sentence and then write an essay based on it.  3. Reading The IELTS test includes questions based on the reading of three long passages; students must answer questions in various formats such as gap fillings, short answers, and so on after reading.   The PTE exam consists of five academic passages with questions designed to assess various skills. The student must respond to inquiries by filling in the blanks, rearranging paragraphs, and answering multiple-choice questions (MCQs).  4. Listening In the IELTS listening section, students must answer questions based on four monologues that as played for them.  PTE, this section includes questions such as summarizing the spoken text, highlighting the correct summary, selecting a missing word, writing from dictation, etc. Score report: IELTS and PTE  1. Marking system Overall scoring is between 10-90 for PTE.  Overall scoring is between 0-9 for IELTS.  2. Subjects-related Communicative skills (includes reading, speaking, and writing). A score for each section for PTE.  Communicative skills (includes listening, reading, writing, and speaking). A score for each section for IELTS.  3. Overall scoring Not an average score calculation for PTE.   Average score calculation for all sections for IELTS.  4. Global Acceptance Selected universities but popular in many countries in PTE.   A lot of universities accept IELTS.   FAQs Which is much easier to crack; IELTS OR PTE?  The IELTS exam is much easier to crack than PTE because the grading process is better than PTE’s grading process.  Why PTE and IELTS are important to pass?  PTE & IELTS both exams are both important because it helps in checking if someone is fluent in English or not for attending college abroad.  What’s a good score to obtain for PTE exams?  On average around 75-85.  Are 12th/10th marks important for giving any of these exams?  No, your 12th/10th doesn’t matter for giving these exams. Also, there are no minimum marks given to give these exams.  What happens if I pass IELTS?  If you can pass IELTS then it opens different choices of career opportunities in English as a native language.   Looking for more information? Talk to a professional! Consult an expert advisor to get the right plan TALK TO AN EXPERT

Along with the GRE and GMAT exams, English proficiency exams like IELTS and TOEFL are essential for university applications to English-speaking countries.   Usually, all applicants having non-English speaking backgrounds have to report their IELTS/TOEFL scores to the university they apply to.   Difference between IELTS and TOEFL IELTS and TOEFL test format Difference between the exams of IELTS and TOEFL 1. IELTS and TOEFL: Writing section In IELTS, students have to answer two writing questions First question requires students to examine and explain a picture or a chart. Second question, the student has to write 200-250 words on a given argument.   For the TOEFL, First question’s answer is a 5-paragraph essay. In the second question, the students have to write notes (150-225 words) from a given text.  2. IELTS and TOEFL: Speaking section The IELTS test is conducted face to face, for 10 - 15 minutes students need to talk at length about a familiar topic and answer questions.   In TOEFL, the duration of the section is 20 minutes the speaking assessment is recorded through a microphone, then sent to the examiners.  3. IELTS and TOEFL: Reading section IELTS test includes three questions in this section, and the students have to answer questions in different formats like gap fillings, short answers, etc., after reading three long passages.   For TOEFL, the reading consists of 36-56 tasks based on reading academic texts and answering them through your lens of understanding.  4. IELTS and TOEFL: Listening section In the listening section of IELTS, students will have to answer questions based on four monologues that will be played for them, whereas the TOEFL test will be on classroom lectures and applicants taking notes while listening to the audio.   Students have to solve MCQs in a given duration of 40-60 minutes in the TOEFL listening component. Source: pexels.com What are the main differences between IELTS and TOEFL? Category IELTS TOEFL Mode of Conducting Computer-based exam Paper-based exam Computer-based  Time duration 2 hours, 45 mins 4 hours Types of Questions Variety of questions MCQs in reading and listening Score chart  Scores are from 0-9 Scores are from 0-120 Accepted by UK, Canada, New Zealand, Australia, etc USA universities  Which universities accept IELTS vs TOEFL?  IELTS exam score is accepted by around 9000 institutions and a lot of countries like the US, UK, Australia, Canada, and New Zealand.  TOEFL exam scores are accepted in more than 10,000 institutions and a lot of countries like the US, UK, Canada, Australia, New Zealand, France, and Germany.  Score Comparison IELTSTOEFL9118 - 1208.5    115 - 117 8110 - 114794 -1016.579 - 93 5.546 - 595 35 - 45 4.5  32 - 340 - 40-31 Major factors to consider  Check if the universities you want to go to accept IELTS or TOEFL because if don’t then nothing else matters.  TOEFL is preferred in most American universities whereas IELTS is accepted in universities in other countries.  If your university accepts both tests then pick one which is more suitable for you as both tests are different. Such as TOEFL has MCQs while IELTS has varieties of questions.   TOEFL is a computer-based test while IELTS is a pen-paper test so if you prefer a computer because you can type faster or your handwriting is not that good then you can go for TOEFL.  The cost is different for both of the tests but depends on the exam location.  Which exam should you take?  The above question depends on the country and the institute you want to study in. Some universities accept either of these tests with individual score requirements.   However, we recommend you think closely about the question types and formats that suit you and then decide. After the university’s requirements, it boils down to your needs. FAQs What’s the full form of TOEFL?  Test of English as a foreign language.  How many times can I give IELTS?  As many times as you like to.  Is 7 a good score for IELTS?  If you have scored 7, then 7 is definitely a good score.  Is TOEFL easier to pass?  In comparison to other tests, TOEFL is considered easier to pass. Consult an expert advisor to get the right plan TALK TO AN EXPERT

So what do you do if you are enrolled in a medical degree in India and want to study abroad after MBBS? Or if you want to practice law in the United States? The GRE is a broad general-purpose aptitude test that is accepted by a wide range of postgraduate programs. However, if you want to study abroad for a professional degree like medicine or law, you will have to take specific aptitude tests for those disciplines.  MCAT vs LSAT MCAT The Medical College Admission Test is conducted by the Association of American Medical Colleges. It is a standardized computer-based test for admission into medical programs that test the aptitude of students who have already completed basic pre-medical training at the university level. 1. Eligibility In order to be eligible for the MCAT, you have to be planning to apply to medical school and not currently be enrolled in any professional health courses. These include MD programs, DO programs, and Podiatry or Veterinary medicine programs. For Indian students looking to study abroad, if you are enrolled in or have graduated with an MBBS degree, you are eligible to sit for an MCAT. If you don’t fulfill the above criteria, you may have to take special permission before sitting for the MCAT. 2. Format Unlike the GRE and GMAT, the MCAT is not computer-adaptive. This means, the questions are standardized and do not get automatically adjusted to the difficulty level as you answer. The MCAT has four sections: chemical and physical foundations of biological systems, critical analysis and reasoning skills, biological and biochemical foundations of living systems, and psychological social, and biological foundations of behaviors. The exam tests students' broad and specific knowledge of biology, chemistry, organic chemistry, physics, psychology, and sociology as well as critical reasoning, research methodology, and scientific reasoning and inquiry.  The entire test is around 7 and a half hours long, including optional breaks: a 10-minute break after each section and a 30-minute mid-exam break after the first two sections. Each section is 95 minutes long, except the critical reasoning section which is 90 minutes long. There are also a few ‘void’ questions that are not scored but are used for experimental or research purposes. Additionally, there is an end-of-the-exam survey which is optional.  3. Scoring The MCAT is scored on a scaled and equated scale of 118-132 with 125 being the median. Your raw scores will not be revealed on test day or mentioned on your score report. Candidates also receive a percentile score. 4. Validity MCAT scores are accepted and required by all US medical schools and all Canadian medical schools. The scores are valid for three years from the date of taking the exam. 5. Registration and Fees You can register for the MCAT through their website and book an appropriate test date and center according to the MCAT schedule.  If you register for the test at least 29 days before the date, you will be charged $320. This number is for Indian nationals looking to study abroad after MBBS. MCAT Syllabus About physics, chemistry, and biology,  Social demographics,  About behavioral science,  Critical reasoning,  Problem-solving knowledge in the medical sciences  Prevalent lifestyle trends,  The role of a physician  How do I prepare for the MCAT?  Try to understand what’s MCAT: Learn about the MCAT exam. It has MCQs, and it is a computer-based exam. This exam is for the medical school selection process.  Think before selecting your undergraduate course:   Don’t overload yourself with too many science subjects. The MCAT itself has too many subjects to learn. Learn about humanities, accounting, and literature, which are going to help you in your MCAT preparations.  Start your preparations as early as you can:   If you start early, you will have plenty of time to prepare for the exam. At least keep three months on your hand.  Make a study schedule that suits you:  Prepare a timetable so that you can work accordingly.  Take mock tests yourself:   After completing your preparations, take mock tests to prepare yourself more.  LSAT The Law School Admission Test (LSAT) is administered by the Law School Admission Council (LSAC) for admissions to Juris Doctor (JD) and LLM programs in the USA, Canada, and some Australian universities. The LSAC also conducts LSAT India which is for admission to LLM programs in certain law schools in India. 1. Eligibility There are no specific criteria for taking the LSAT as determined by the LSAC. Legal degree-granting programs and law schools that accept the LSAT may have specific criteria. However, most US law schools require an undergraduate degree in any discipline as a prerequisite for admissions. Law schools in the US generally don’t prevent international students from applying to legal programs in the US. However, it is always a good idea to check the eligibility requirements of the program you are applying to before registering for the LSAT. 2. Format The LSAT consists of five sections: logical reasoning, reading comprehension, analytical reasoning, writing sample, and an unscored experimental section that is indistinguishable from the rest. The logical reasoning section asks students to analyze logical arguments to identify assumptions, alternate conclusions, errors, or logical omissions. The reading comprehension section involves reading a particular passage and analyzing it to interpret meaning, draw inferences, determine the structure of the passage, etc. It also often includes a comparative reading question that involves reading, analyzing, and comparing two passages. Analytical reasoning tests a candidate through 'logic game' based questions that test the candidate's ability to analyze a range of possibilities within a given set of rules. The writing sample involves writing an argumentative essay based on a given writing prompt. The unscored section consists of questions being used by the LSAC for experimental purposes and is not counted toward the final score. However, it is indistinguishable from regular, scored sections. Any of the sections can be used for the experimental section The LSAT is 3 hours long excluding an optional 15-minute break that is offered in between. Each individual section is 35 minutes long. In light of COVID, the LSAC now offers the LSAT-Flex and LSAT-Writing. The LSAT-Flex is a 2-hour long, remote-proctored, at-home, computer-based test. This includes the logical reasoning, reading comprehension, and analytical reasoning sections. The writing sample will need to be submitted by taking a separate remote proctored, at-home test, the LSAT-Writing. This is a 35-minute long test taken at a later date. 3. Scoring The LSAT is a scaled, standardized test like the MCAT. Scores are distributed on a scale of 120-180. They also receive a percentile score. 4. Validity LSAT scores are recognized and required by law schools across the USA, Canada, and some Australian universities. The scores are valid for 5 years following the date of taking the test. 5. Registration & Fees Indian students looking to study abroad for legal studies can register for the LSAT through the LSAC website. You will be required to use your passport as an ID document for registration.  The basic fees for LSAT are $200 plus an additional fee of $195 and $45 for the Credential Assembly Service (CAS), and Law School Report respectively. The Law School Report is a streamlined compilation of all your law school application documents like scorecards, transcripts, letters of recommendation, etc. The CAS is a centralized service used by law schools to access the Law School Report. Extra charges may be levied for test date changes, score previews, etc. FAQs How hard is the LSAT exam? It’s generally hard, but if you have done your preparations nicely, then you can pass it.  I study for just one month and clear the MCAT exam? Studying just for 1 month is risky, but if you’re already good at science or the humanities, then you may clear the exam.  Is studying for 3 hours a day enough for the MCAT?  You can study 3-6 hours a day or whatever suits you for MCAT. What is the lowest mark accepted in the MCAT exam?  If you score as low as 508, then you might get accepted.  Is it possible to study for the MCAT exam on my own?  Yes, you can study on your own if you think you can do it efficiently.  Conclusion A professional degree is a great option for those who have specific goals that they want to commit to. While degrees like law and medicine are very intensive, sometimes expensive and require a lot of hard work, they are equally rewarding. If you are willing to put in the time and effort required for these degrees and entrances, you can look forward to a bright future! Consult an expert advisor to get the right plan TALK TO AN EXPERT

In the previous article, the focus was on why do you need to look beyond traditional investment options for your child’s education?. In this article, we will discuss the time value of money. The idea of the time value of money tells us that money now is more valuable than money in the future because the money received now can be used for further investment, to obtain more returns.  Assume that you have lent Rs 2000 to your friend. Would you want him to pay you back today or tomorrow? The sensible answer is today because you'll be able to put that money to work, to earn your potential gains.  Furthermore, with future money, there is a danger that the money might never be received, for whatever reason possible. The net present value or NPV is another term used for money's time value.   The present value of future cash flow is calculated by dividing the future cash flow by a discount factor which incorporates the amount of time that will pass and the expected interest rate in the future.   The time value for money and purchasing power Inflation and buying power are two related concepts of the time value of money. Both these factors need to be considered, along with whatever rate of return might be obtained by investing the money.   While investing money, you must account for inflation and buying power because you need to subtract the inflation rate from the percentage gain you grow your investments with.  When you subtract the rate of inflation return percentage, you get the real rate of return. If the inflation rate is higher than your investment return, you are losing money in terms of purchasing power even though your investment shows a nominal positive return.   For example, if you earn 10% of your investments and the rate of inflation is 12%, then, in reality, you are losing money.   The time value of money formula  FV = PV × (1+i)^n     Where FV = Future value of money,   PV = Present value of money, n = number of periods, and I = interest rate per period.   So, if we have to calculate the PV, the formula becomes PV=FV/ (1+i) ^n   And the calculation of FV requires the following formula FV= PV (1+i) ^n.   Source: Pixabay Why does the time value of money matter?   Decision-makers can use the time value of money to assist them in choosing optimal alternatives because absolute rupee quantities across different periods have different values.  The time value of money equalizes options depending on timing. While comparing projects and businesses with different cash flows. The time value of money formula is frequently used.  Businesses can also utilize the time value of money to see if a project with an initial cash outlay and a later cash flow will be lucrative. Companies employ the time value for money for external reporting obligations.   Also, individual investors can better comprehend the actual value of their investments and liabilities over time by using the time value of money; the time value of money also helps to determine how much an investor will have in retirement.   It is important to note that the time value of money often ignores detrimental impacts to finance, such as negative interest rates or capital losses.   Negative growth rates that are unavoidable can be used in situations where losses are known.  Some important points The philosophy of the time value of money holds because money today can be invested and potentially grow into a more significant amount in the future.   A future cash flow's present value is estimated by dividing it by a discount factor that considers the period that will pass and the predicted interest rates.   Multiplying the quantity of cash by a function of the expected rate of return over the predicted period yields the future value of a sum of money today.   The time value of money is used to make long-term financial decisions like whether to invest in a project or with which cash flow sequence is more advantageous than the other.   The applications of the concept are far-fetched in today's financial world. Knowing it will be an excellent addition to your kitty of financial knowledge.  FAQs What are the three elements of the time value of money?   There are a few key components of the time value of money:  Interest rate  The present value of money  The future value of money  Time periods and   Installments   What will Rs.10000 be worth in 20 years?   The formula to calculate the future value of money:   Future amount = Present amount * (1+ inflation rate) ^ Number of years   Why is understanding the concept of the time value of money important?   The idea of the time value of money tells us that money one has now is more valuable than the money in the future because the money received now can be used for further investment to obtain more returns.   How do you explain the time value of money?   The sum of money that a person has now is worth more than the same amount of money in the future. If money doesn’t grow with time, its value will depreciate as time progresses.   Consult an expert advisor to get the right plan for you  TALK TO AN EXPERT

Investing is no longer associated with wealth. To protect one's future it has become essential. In this blog, let's compare Public Provident Funds (PPF) and mutual funds to see which is a better option for you. What are public provident funds(PPF)? The Public Provident Fund, popularly abbreviated as PPF is used as a tax-free savings vehicle to save aside a portion of one’s annual income for the future. PPF investors may get tax-free interest income on their capital if the amount was received on maturity. PPF is a risk-averse person's saving tool that is supported by the government. What are Mutual funds? Mutual funds, a popular method of investing, pool client money to purchase a range of securities, such as stocks, bonds, and money market instruments.  Mutual funds are governed by the Securities Exchange and Board of India (SEBI). Through mutual funds, investors have access to professional fund management. The fund management staff carefully considers the fund's objective before making any investing decisions. Assets like bank savings accounts and fixed deposits perform better than more traditional ones, thanks to skillful management. Equity and debt mutual funds are the two main types of mutual funds. Equity mutual funds' primary investments are equity and equity-related goods. The many forms of equity funds include large-cap, mid-cap, small-cap, multi-cap, sectoral or thematic, tax-saving, etc.  Conversely, debt mutual funds make investments in corporate bonds, government securities, and other financial goods. There are many different types of debt mutual funds, including liquid funds, dynamic bond funds, and short- and ultra-short-term funds, among others. Mutual Funds Vs PPF (Public Provident Funds). PPFs and mutual funds, each have their own set of perks and drawbacks. Therefore, it is a good idea to take into account their distinctions before choosing one at random. ParametersMutual FundsPublic Provident Funds (PPF)Investment run byFunding institutions or asset management firmsBy The Government of IndiaRequirementsTo achieve short- or long-term objectivesTo amass a retirement fundReturn on investmentsThe performance of the underlying assets affects the returnsAnnual returns calculations are madeTax benefitsThe sort of mutual fund investment and the length of the investment are what define itUp to INR 1.5 lakh of PPF investments are tax-free under Section 80C of the Income Tax ActMaturity PeriodNo fixed tenure15 years, which may be extended in 5-year chunks.LiquidityA high degree of liquidityLow degree of liquidityRisk/safetyRiskier than PPFsPPF is a risk-free investmentLock-in periodNo concrete lock-in period15 yearsDiversificationYesFixedPremature withdrawalThere are certain mutual funds that have a lock-in period; in these instances, SIP payments can be stopped, but withdrawals are not allowed prior to the maturity date.Only after the end of six fiscal years is a partial withdrawal permitted. PPF vs Mutual fund - Which is better for you? The decision between a PPF and a mutual fund relies on the objectives or aims of the investor. The latter operates more like a savings plan whereas, the first is a market-linked program.  While PPF delivers predictable returns and is most suitable for investors who are risk-averse. Conversely, mutual fund companies invest in a variety of securities, including government bonds, debt, and shares. As a result, it offers the potential for bigger profits, but because it is market-linked, the risk is also higher. FAQs Is PPF still a wise choice for investments? One of the most popular long-term and tax-saving programs for depositors is the PPF program since it offers a variety of benefits. If a person can make consistent investments for 15 to 25 years, compound interest might help them amass a sizeable wealth of about Rs 1 crore. The PPF interest rate is modified every three months. Which is preferable, PPF or SIP? SIP and PPF are both long-term investing strategies. They vary, nevertheless, in terms of maturity and lock-in time. A PPF has a tenor of 15 years and a 7-year lock-in period, whereas SIPs can be stopped and redeemed at any time. You can then take out a portion of the money after that. Which investment is good for a child's future? It is a great idea to start investing in equity mutual funds when your child is still young and you have at least 15 to 20 years before retirement. This makes it possible for you to resist shocks like volatility and stock market crashes. When developing investment plans, each person has their own way of thinking and attitude. While some people want larger profits, others want financial security. It's critical to assess your financial status before making any form of investment, including those in mutual funds or Public Provident Funds (PPF). Consult an expert advisor to get the right plan TALK TO AN EXPERT

A crucial first step to achieving financial security is to set short-term, mid-term, and long-term financial objectives. But what do these goals stand for? What are the differences between short-term and long-term goals? Keep reading to find the answer. What are short-term goals? Anything that can be accomplished in less than two years is considered to be a short-term goal. Although this is a useful generalization, where to draw the line between short-term and long-term objectives is ultimately fairly arbitrary. A goal accomplished in one and a half years and one accomplished in two years and a month have no discernible differences.For instance, a short-term goal for your child’s education needs can be a laptop or a phone. You can select the best funds and a time horizon to save up for the cost and accomplish your goal easily. This is a short-term goal which means you plan to accomplish it in the next 1 or 2 years. Click here to start a short-term goal for your child’s education dreams. What are long-term goals? In contrast, anything that takes more than five years is considered a long-term goal. Long-term objectives include things like paying off a mortgage and saving for retirement. The terms "short term" and "long term," nevertheless, aren't always sufficient. Some people favor including medium-term objectives as well. These objectives usually take two to five years to complete. Despite their apparent opposition, the two temporal periods complement one another. Long-term goals shape your short-term goals. For instance, a long-term goal can be your child’s dream college. Long-term goals generally require a long-term horizon. If you are planning to save for your child’s college then starting 10-15 years in advance is the right way to go. This gives you enough time to save up and make the right corrections over the years to get the right amount by the time they go off to college. Use the college cost calculator on the EduFund App and start saving for your child’s long-term goals! Key short-term goals Your more pressing expenses are those for short-term aims. These are the things you'll often spend money on within a few months or years, though timing varies. The following are some top key short-term goals: 1. Establish a Budget By reading through your bank statements and bills from the previous few months and classifying each item with a spreadsheet or on paper, you may make a budget the old-fashioned way. You can decide better where you want your money to go in the future when you can see how you are spending your money and are directed by that information. You can try to find methods to eat out less frequently or save money by following certain practices etc. 2. Build an emergency fund The cornerstone of creating financial goals is an emergency reserve. If something unforeseen occurs, it's what keeps the rest of your strategy from falling apart. Without an emergency fund, one unforeseen expenditure, such as a busted water heater, medical expenses, auto repairs, or a job loss, might cause all of your other objectives to fall through the cracks. Your emergency fund has to be sufficient to pay for three to six months' worth of costs. You may wish to save even more if you are paid on commission or have a fluctuating income. Make a budget and, if necessary, cut spending so that you can afford to set aside some of your money. 3. Open a life insurance policy By purchasing life insurance, you guarantee that your loved ones will be compensated in the event that you die away and are unable to support them. A cash lump amount is often used for this, serving as a safety net to replace your income. Life insurance coverage is crucial for defending yourself and others who depend on you, much like an emergency fund. Even though nobody likes to consider the worst-case scenarios, anything may happen tomorrow. Key long-term goals It can take years or perhaps decades to accomplish these aims. Long-term objectives often require more resources and ongoing care than short-term objectives. The following are some top key long-term goals: 1. Consider your dreams Long-term objectives might also include objectives like purchasing a primary residence or, eventually, a vacation property. Maybe you already own a home and want to give it a considerable upgrade, or maybe you want to start saving for a bigger house. Other examples of long-term objectives include saving for college for your kids or grandkids, or even for when you do have kids. Once you've chosen one or more of these objectives, start estimating how much money you'll need to put aside to make progress toward achieving them. 2. Plan for retirement Retirement savings goals are among the most long-term-oriented in terms of planning. Finding out how much money you need and how close you are to that objective is the first step in this process. Then, you may reach your destination through a variety of retirement plans, which is a perfect illustration of how long-term goals ultimately need to be divided into more manageable goals. How to prioritize your goals? You'll probably need to strike a balance between a number of short-term and long-term ambitions. Plan your objectives around your regular spending, putting necessities like food and shelter first. Contributing to emergency and retirement accounts is a top priority; after paying off debt, do so. After that, you may choose how to divide the remaining funds between your demands and other savings objectives. The most essential thing is to stay consistent. Don't be upset with yourself if you have to withdraw money out of your emergency fund one month because you have an unanticipated auto repair or medical cost; that's why the fund is there. Just get back on track as soon as possible.

Hybrid mutual funds are the type of mutual fund scheme that invests in two or more asset classes, i.e., equity, debt, and other asset class, depending upon the fund’s objective. This helps the fund manager to diversify the portfolio not only among the sectors but also among different asset classes. Hybrid funds are subdivided into different categories, i.e., based on equity-debt allocation, based on solutions, and others. Aggressive Allocation: The fund has the flexibility to invest 65-80% in equity & equity-related instruments and 20-35% in debt instruments. Balanced Hybrid: The fund has the flexibility to invest 40-60% in equity and equity-related instruments and 40-60% in debt instruments. Conservative Allocation: The fund can invest 10-25% in equity & equity-related instruments and 75-90% in debt instruments Types of Hybrid Funds Hybrid funds come in various types based on their asset allocation: Equity-oriented Hybrid Funds: These allocate 65% or more to equity and the rest to debt and money market instruments. Debt-oriented Hybrid Funds: They invest at least 60% in fixed-income securities and the remainder in equity. Balanced Funds: With a minimum of 65% in equity and the rest in debt, they offer tax benefits on long-term capital gains. Monthly Income Plans: These primarily invest in fixed income, with a small portion in equity, providing regular income to investors. Arbitrage Funds: These seek arbitrage opportunities by buying low and selling high, switching to debt when opportunities are scarce. They have a tax treatment similar to equity funds. Each type serves different investment goals, offering a range of risk and return profiles. Benefits of hybrid funds Hybrid funds offer several advantages: Simplified Diversification: They provide access to multiple asset categories within a single fund, reducing the need for multiple investments. Active Risk Management: Hybrid funds actively manage risk through diversification and asset allocation, investing in non-correlated assets like equity and debt. Enhanced Diversification: They diversify across various asset classes and sub-classes, such as different stock types and growth/value stocks, boosting portfolio diversification. Risk Catering: Hybrid funds cater to various risk profiles, accommodating conservative, moderate, and aggressive investors. Multi-Asset Class Exposure: Hybrid funds provide multi-asset allocation to the portfolio by investing in equity, debt, and other asset classes. Actively Managed: All the hybrid funds are actively managed by professional fund managers. So, as per the market condition, the fund manager has the flexibility to change the fund’s allocation. Top 6 hybrid funds S.No.Fund Name3-Yr Annualized Performance1Quant Absolute Fund Growth Option Direct Plan28.29 %2Bank of India Mid & Small Cap Equity & Debt Fund Direct-Growth25.71 %3Edelweiss Balanced Advantage Fund Direct Plan-Growth16.37 %4Baroda BNP Paribas Balanced Advantage Fund Direct-Growth16.05 %5Bank of India Conservative Hybrid Fund Direct-Growth14.74 %6Kotak Debt Hybrid Direct Growth12.17 %Note: Data as of July 25, 2022Source: Morningstar 1. Quant Mutual Fund Fund analysis: The fund has the flexibility to invest 65-80% in equity & equity-related instruments and 20-35% in debt instruments. The risk grade is above average, and the returns grade is high. The fund has given consistent performance over different trailing period returns. The fund has outperformed the category average over the period. It has invested in equity and debt securities. ProsConsFund has outperformed the category average with good margins. Attractive risk-to-reward ratio.Low Assets Under Management. Start Investing 2. Bank of India Mutual Fund Fund analysis: The fund's objective is to provide capital appreciation and income distribution to investors from a portfolio constituting mid and small-cap equity and equity-related securities as well as fixed-income securities. The fund holds major holdings in mid-cap companies and the cyclical sector holds 62.84% weightage followed by sensitive 20.52% and defensive 16.64%. The risk grade is high, and the returns grade is also high. ProsConsHigh growth potential. Invested in AAA quality bonds.High expense ratio. Start Investing 3. Edelweiss Mutual Fund Fund analysis: The fund’s objective is to generate capital appreciation with relatively lower volatility over a longer tenure of time. The Scheme will accordingly invest in equities, arbitrage opportunities, derivative strategies on the one hand, and debt and money market. instruments on the other. The Scheme may also invest in Infrastructure Investment Trusts and Real Estate Investment Trusts. The fund has outperformed the category average over the long-term period. The fund has a well-diversified portfolio of 113 equity holdings and 14 bond holdings. The risk grade is average and the returns grade is high. The fund has the flexibility to invest 0-100% in equity instruments and 0-100% in debt instruments. ProsConsFund has outperformed the category average with good margins. Fund has invested in both value & growth stocks along with AAA-rated bonds in the debt category.Fund has underperformed the category average over 3-Months & 6-Months trailing returns. Start Investing 4. Baroda BNP Paribas Mutual Fund Fund analysis: The fund has the flexibility to invest 0-100% in equity instruments and 0-100% in debt instruments. The risk grade is average, and the returns grade is high. The fund has a well-diversified portfolio of value & growth stocks and has invested across sectors. In the debt market, the fund has invested majorly in aaa-rated bonds and money market instruments. ProsCons5-star rated by Morningstar. The risk grade is average, and the returns grade is high.Fund has underperformed the category average over 3-Months & 6-Months trailing returns. Start Investing 5. Bank of India Mutual Fund Fund analysis: The fund can invest 10-25% in equity & equity-related instruments and 75-90% in debt instruments. The risk grade is high, and the returns grade is also high. The fund has a blended style of investing, indicating both value & growth stocks. The fund has invested across sectors and AAA-rated bonds. The fund has 23.99% in equity, 50.20% in bonds, and 25.81% in cash & money market instruments. ProsConsFund has outperformed the category average over different trailing period returns. The fund has captured the market well when it was falling & rising, better than the category average.High expense ratio. Start Investing 6. Kotak Mutual Fund Fund analysis: The fund’s focus is to provide regular income by investing in debt instruments, along with some exposure to equity & equity-related instruments to enhance returns. The fund may also invest in derivatives to hedge the position. The risk grade is average and the returns grade is high. The has given a consistent performance over the period and has also outperformed the category average by good margins. The fund has invested 24.88% in equity, 66.94% in bonds, and 8.18% in cash & money market instruments. ProsConsConsistent performance. The fund captured the market well when it was falling & rising, better than the category average.Fund has underperformed the category average over 6-Months trailing returns. Start Investing How do hybrid funds work?  Hybrid funds invest in both equity and debt. While equity has the potential to generate high returns, it comes with high risk. On the other hand, debt is a fixed-income instrument with low risk and returns. So, in hybrid, you can see a fund with moderate risk and return due to the availability of both asset classes. A hybrid fund gives you both asset classes in a single product. Equity provides long-term gain, whereas debt provides short-term stability or regular income.  Boost Your Financial Liquidity: Dive into the Top 6 Liquid Mutual Funds Read More Who should invest in hybrid funds? A hybrid fund is perfect for: First-time investors - Investors are looking for stability like fixed deposits and fear the risk of volatility over the short term. Hybrid funds give a good entry point to the equity market.  Investors with a 3-5 years horizon - For any medium-term goal like buying a car, school fees, etc., hybrid funds can be a good option as returns generated are relatively less volatile. Retired Investors: Investors who have retired can look to generate regular income with the help of hybrid funds and their unique asset allocation. Short-term investors - Arbitrage funds provide a good option for investors looking to park money in volatile market conditions. Taxation 1. Equity-Oriented Schemes - A fund with a minimum of 65% in equity or equity-related instruments is treated as equity funds for taxation. Arbitrage funds are also classified as equity funds for tax purposes. For equity, the taxation is as below -. Long-Term Capital Gains: If held for more than a year, it is known as long-term capital gains and comes with a 10% tax over Rs 1 Lakh gains which is tax-free. Short-Term Capital Gains: If held for less than a year, it is known as short-term capital gains and comes with a 15% tax 2. Other Schemes: Long-Term Capital Gains: If held for more than three years, it is known as long-term capital gains and comes with a 20% tax with an indexation benefit. Short-Term Capital Gains: If held for less than three years, it is known as short-term capital gains. Gains will be added to the investor's income and taxed as per their tax slab. Conclusion: Investors should consider hybrid funds as part of their portfolios. As they can provide you attractive risk-to-reward ratio along with low volatility. Talk To An Expert FAQs Is it good to invest in hybrid funds? Hybrid mutual funds are the type of mutual fund scheme that invests in two or more asset classes, i.e., equity, debt, and other asset class, depending upon the fund’s objective. This helps the fund manager to diversify the portfolio not only among the sectors but also among different asset classes. What is a hybrid fund example? Some hybrid fund examples are: Quant Absolute Fund Growth Option Direct PlanBank of India Mid & Small Cap Equity & Debt Fund Direct-GrowthEdelweiss Balanced Advantage Fund Direct Plan-Growth Is a hybrid fund better than equity? Hybrid funds are the best of both worlds - equity and debt funds! Investors who are willing to take moderate risks and gain high returns can consider this type of fund after consulting an investment advisor. Are hybrid mutual funds safe? Hybrid funds are safer than equity funds and less risky. Disclaimer:This is not recommendation advice, use it for educational purposes only. Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of the future performance of the schemes

What is AUM in mutual funds? What does it stand for or how is it calculate? Let's answer what does it mean when investors talk about AUM in mutual funds! The aggregate market value of the investments held by a mutual fund is known as its Assets Under Management (AUM). On behalf of the investors, the fund manager handles these assets and makes all investment-related decisions. AUM is a measure of a fund house's size and performance. The assets managed by a fund can be easily compared with other similar funds' performance over time.  The returns a mutual fund receives are also factored into the AUM value. This can be used to purchase securities, hold them as specified by the investing mandate, or distribute dividends to investors.  Things to consider in AUM before investing?  Investors in mutual funds frequently evaluate the fund's AUM and are impressed if it is on the higher side. People assume that a fund must be good if so many investors have previously contributed to it. However, there are a lot of reasons why this number shouldn't matter when selecting a fund.  Some of the most crucial elements to consider are the expense ratio, the fund manager's reputation, and compliance with the investing mandate. Let's examine the significance of AUM in relation to various fund types.  1. Large-cap funds  Let's examine an example of how AUM affects large-cap mutual funds. Two large-cap equities funds are HDFC Top 200 and Mirae Asset India Opportunities. The former's AUM is Rs.14,655 crore compared to the latter’s just Rs.4,738 crore. Most investors may choose to invest in HDFC Top 200 for this reason. However, the Mirae has historically earned higher returns over various periods.  2. Small-cap funds  Small-cap funds typically limit the inflow of cash after a specific threshold. A well-known case of this is the DSP BlackRock Micro Cap Fund. This typically happens when a mutual fund's assets exceed a certain threshold. When the market fluctuates, the fund might not be able to quickly trade its shares if it becomes a major stakeholder in a company. Due to this, small-cap funds frequently stay away from lump-sum investments and instead opt for SIPs.  3. Debt funds  If you’re considering investing in debt funds, AUM is an important factor to consider. The fixed fund costs might be split among more investors in a debt fund with higher capital. This can lower the cost per individual and hence boost fund returns. Additionally, more assets under management assist the fund organization in securing fair interest rates from debt issuers.  4. Equity funds  Here, stability in returns and commitment to the investing mandate by the fund company is more important than AUM. By stability, we mean surpassing the benchmark during both the highs and lows of the market. As a result, rather than popularity or size, an equity fund depends on the asset manager's ability to produce strong returns consistently.  How to calculate AUM in mutual funds?  Fund houses use different techniques to determine assets under management. When a fund continuously generates positive returns, its total investment value will increase. Growth in AUM might result from the attraction of new assets and investors due to strong performance.  Similarly, assets may drop if the market value or investment performance declines. The same applies to sudden fund closures and share redemptions by investors. Capital that has been invested in the firm's goods is included in its assets under management, which also includes the stock of the company's executives.  Formula to calculate AUM: "AUM = Net Asset Value (NAV) * Total number of units.”  AUM's impact on the expense ratio or fee  Every fund house charges a fee called a management fee that is based on the size of the fund. Investors are charged based on the number of units they own at a single cost for the entire fund. The fees are unaffected by the performance of the fund. It just pays for administrative costs and establishes the asset manager's pay for his work. The annual costs to run a mutual fund are measured by the total expense ratio (TER). According to SEBI, the AUM must always be more than the TER.  source: pixabay High AUM's effects on mutual funds  AUM growth can occasionally hurt an equity fund's performance. However, there is hardly any data to suggest that a bigger AUM either helps or hurts the fund's performance. The fund manager is the one who should seize market opportunities and buy or sell a stock at the appropriate moment. Larger assets under management have frequently made it more difficult for the manager to make rapid judgments regarding investments. Before investing, evaluate the fund's performance in relation to the benchmark and its rivals. Higher AUM means the manager needs to be on point and well-experienced. Check the experience of the manager in handling high assets before investing in such funds.   AUM and market fluctuations  Market movements have a significant impact on the assets managed. The assets of the fund will increase when it generates returns and decrease when it suffers losses. This impacts the mutual fund fee as well. Lower expenses typically equate to lower value. For instance, imagine that a mutual fund that has produced 10% returns has received a total investment of Rs. 10,000 from 100 investors. If so, Rs. 11,000 would be the fund's AUM. After all, businesses determine the worth of their assets under management using a variety of techniques.  AUM is a great way to evaluate a fund's popularity and performance. However, it should not influence your decision to invest in that fund. Should you consider AUM before investing? AUM is an essential factor that helps you in shortlisting the funds. The higher the AUM, the more stable the fund could be. Often you will see Analysts mentioning AUM > Rs 1000 crore is a good benchmark as it defines the fund's stability.  Also, the expense incurred to manage the fund gets spread, and the expense ratio reduces with rising AUM. Let us see the impact of AUM on equity funds and debt funds -  1. Equity funds In equity funds, consistency and sustenance of returns are more critical than AUM. Thus, the investment process and philosophy should be given more importance.  2. Debt funds In debt funds where the investment is in different fixed-income instruments, it is critical to consider AUM. While benefits such as expense ratio and reputation are one thing, the essential thing in debt funds is getting reasonable rates with debt issuers. With higher AUM, the fund manager tends to get better rates which add to the performance. Also, higher AUM in debt funds for retail investors adds to the fund's stability. Impact of high AUM in mutual funds While a high AUM is good for the stability of the fund but huge AUM often impacts your performance. For example - in the case of Large Cap Equity funds, if a fund reaches are very high AUM, the performance is likely to get impacted as the universe of stocks in which the money can be deployed is minimal and beyond a point outperforming the benchmark in large-cap space (where information inefficiency is negligible) is often tricky.  Thus, while AUM is necessary for the stability of a fund, it is not the only and single most critical factor on which the decision to buy or sell a fund should be dependent. FAQs What is a good AUM in mutual fund? AUM is a measure of a fund house's size and performance. AUM size only matters in certain funds. What is AUM vs NAV? NAV refers to the prices of shares in a fund while AUM refers to the value of assets managed by the advisor. How is AUM calculated? Here is the formula to calculate AUM: "AUM = Net Asset Value (NAV) * Total number of units.”  Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Even if studying abroad is pricey, there are still ways to get a top education from foreign universities for a lot less money. In this blog, we have discussed the cheapest cities in the world that are great for studying abroad. Need help funding for dreams? Connect with our loan experts! Cheapest cities in the world Following are the top cheapest cities in the world. 1. Kuala Lumpur Malaysia's capital and largest city, Kuala Lumpur, is ranked second in the world for affordability for the second year in a row. International students will pay an average of just USD 2,500 per year in tuition at one of Kuala Lumpur's five top-ranked colleges, placing the city in equal 29th place overall among the world's best student cities this year according to QS rankings 2022. A one-bedroom apartment in the city center will typically cost US$568 a month for those looking to reside there (according to Numbeo). According to the Mercer Cost of Living Survey, Kuala Lumpur ranks 141st out of 209 nations for affordability. 2. Hsinchu Hsinchu, the second city to call itself "The Windy City," can astound those of you looking for an excellent spot to study abroad (the first, of course, being Chicago). Hsinchu is a great choice for students who want to study in Taiwan but don't want to deal with the commotion of a large city, ranking 10th for affordability this year and joint 68th overall in the QS Best Student Cities rankings. With a population of 435,000, Hsinchu is one of Taiwan's lesser-known, smaller cities (as opposed to its capital, Taipei, which has over 8.6 million inhabitants). Tuition costs for international students are equal US$2,900 annually. National Tsing Hua University and National Chiao Tung University are two highly regarded universities in Hsinchu that are both listed in the top 250 of the QS World University Rankings 2022. 3. Johannesburg, South Africa South Africa's largest city, Johannesburg, also serves as the nation's financial and commercial hub. There are 11 official languages in the nation, and English is typically used to teach university courses. Johannesburg is home to two of the top universities in the nation, each of which is ranked among the top 450 worldwide. The average annual cost of tuition is $4,200 USD. A student only needs about USD 664 per month for living expenses, plus USD 465 for rent in the city center. With an annual average temperature of 21C, Johannesburg experiences warm weather all year long. There is a lot to see and do in the city, including festivals and concerts, markets for shopping, galleries, and museums to explore. Beautiful natural areas, such as Lion Park, are close to the city. 4. Budapest The capital of Hungary, with three of the world's top institutions and a population of over three million, tops the list for affordability. Budapest also ranks 43rd overall in the QS Best Student cities 2O22. Budapest will have an average annual tuition cost for out-of-country students of US$1400 (much lower than many other study destinations). In the Mercer Cost of Living Survey, the city comes in at 164th place out of 209 nations.  5. St. Petersburg There are more than five million people living in St. Petersburg, which is the second-largest city in Russia (after Moscow, of course). The city, which in 2019 was ranked 66th overall, has moved up four spots in the affordability indicator to tie for fourth place, with an average annual tuition of US$2,600 at its three top universities. According to Numbeo, this amazing city's cost of living is 28.2 percent less expensive than Moscow, the capital of Russia, which will excite students wishing to study there. Even though St. Petersburg's affordability receives the highest overall rating, the student view indicator, which shows how well-liked it is among students, has seen the most improvement this year, climbing 16 spots. Cheapest universities in the world  Following is the list of the cheapest universities in the world for international students: University of Wuerzburg Brigham Young University Florida State University University of Central Arkansas Brandon University Bucks New University Bucks New University Osaka University FAQ Can underprivileged students travel and study abroad? You can always apply for international scholarships if money is tight. Additionally, you want to submit applications to several economically sound or cost-effective nations, including Germany and Canada, which feature colleges with cheaper tuition rates. What nation offers free education? Many nations, including Denmark, Iceland, Finland, Norway, and Sweden, have possibilities for a free or discounted education Is college in the USA affordable? The United States has long been regarded as one of the most expensive places for overseas students to pursue higher education. However, students can locate colleges that provide high-quality instruction at reasonable costs. We hope that this blog gave you some insight into the most affordable cities in the world for foreign students.

UTI Asset Management Company (AMC) UTI is one of the pioneers of the Indian Mutual Fund Industry. With over Rs 2.4 lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMF offers products across asset classes. Let us talk about its flagship product – UTI Master share Unit Scheme  About Fund  1. Investment objective The fund seeks to generate long-term capital appreciation for investors by investing in equity and related securities of large-cap companies. It is India’s first equity-oriented fund launched in October 1986.   2. Investment process   The Fund takes a top-down view of the sector and then takes a bottom-up approach to select the stocks within the sectors. The fund is a well-diversified portfolio and avoids sector as well as stock concentration.  3. Portfolio Composition  The portfolio holds the major exposure in large-cap stocks at 87% and sectorally major exposure is towards financial services which account for roughly one-third of the portfolio. The top 5 sectors hold nearly 63% of the portfolio.   Note: Data as of 30th Sep 2022. Source: UTIMF  Top 5 Holdings  Name Sector Weightage % ICICI Bank Financial Services 9.52 Infosys Information Technology 7.12 HDFC Financial Services 6.12 Bharti Airtel Telecom 4.52 Reliance Oil and Gas 3.93 Note: Data as of 30th Sep 2022. Source: UTIMF  Fund performance over 35 years  If you would have invested 10 lakhs at the inception of the fund, it would be now valued at Rs 18.20 crore whereas the benchmark (S&P BSE 100) would have fetched you Rs 11.88 Crore.  Note: Performance of the fund since launch; Inception Date – October 15, 1986. Source: utimf.com  The fund has given consistent returns and has outperformed the benchmark over the period of 35 years by generating a CAGR (Compounded Annual Growth Rate) of 15.56%.  Now, let’s look at the fall of the fund during market corrections. Source: utimf.com The above table explains that the fund has seen less fall/correction compared to the market correction. While corrections are painful for the short-term investor, at the same time, it is an opportunity to make higher returns for the long-term investors.  Fund manager  The fund is managed by Swati Kulkarni and Karthikraj Lakshmanan. Swati has over 36 years of experience and has been managing the fund since December 2006. Karthikraj has over 17 years of experience and is a new entrant in this fund management.  Who should invest in UTI Mastershare unit scheme?  Investors looking to  Own large-cap businesses with sound management, steady cash flow, and earnings growth  Build core equity portfolio for long-term wealth creation with steady growth  Why invest in the UTI Mastershare unit scheme?  India’s first equity-oriented fund with a proven track record of over 35 years and over Rs 10,000 crore in Assets Under Management currently.  Strong stock selection approach with a diversified portfolio reducing concentration risk  Horizon  One should look at investing for a minimum of 5 years or more  A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility  Conclusion  The fund is the oldest fund with a proven track record of 35 years and has delivered 15.56% CAGR consistently. Thus, suitable for even first-time equity investors who are looking to take a little higher risk DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.