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Due to a lack of funding, many students are unable to pursue quality education. As a result, students who desire to continue higher education, especially at universities abroad, choose to take out an education loan. In this blog we have discussed how can you save money and study by choosing the best education loans in India. Top banks for education loans in India Mentioned below is the list of top banks in India with interest rates for education loans: Best education loans in India Following are the best education loan in India you can opt for your children's further studies: 1. SBI education loan Additional read: Does education inflation impact student loan interest rates? 2. HDFC bank education loan 3. Punjab national bank education loan 4. Axis bank education loan What are the eligibility criteria and documentation requirements for an education loan? One must be an Indian citizen who has been admitted into an institution or university that is recognized by a competent body in India or overseas.  The candidate must have successfully finished senior high school.  Even before a student has been admitted to a university, certain banks may provide a loan. Although certain banks may do so, the Reserve Bank of India (RBI) guidelines specify that there are no higher age restrictions.  The banks want additional paperwork including the institution's acceptance letter, fee schedule, and Class X, XII, and graduation (if applicable) mark sheets.  It's also necessary to have the co-applicants income documentation, such as pay stubs or income-tax returns (ITR). Is collateral required for financing the loan? Banks will contribute up to 100% of the loan, depending on the amount. For loans up to Rs. 4 lakh, no margin money is now necessary. The candidate is required to provide 5% of the required funding in order to study in India.  On the other hand, the required margin money for abroad studies increases to 15%. Loans beyond Rs 7.5 lakh may also require collateral from the banks. Financial institutions do not require any collateral or third-party guarantees for loans up to Rs 4 lakh.  For loans between Rs. 4 lakh and Rs. 7.5 lakh, a third-party guarantee is necessary. A security deposit is needed for loans that are more than Rs 7.5 lakh. When a loan application is granted, the banks transmit the money straight to the institution or university in accordance with the fee structure. What is the process of repayment? The person who takes out the loan for their schooling is in charge of paying it back. Repayment usually starts once the course is over. Additionally, some banks allow you a grace period of six months or a year after you graduate from school before you are required to repay your loan.  Normal repayment terms range from 5 to 7 years, however, they can potentially be extended. Over the course of the loan's payback tenure, the bank assesses a standard interest rate. By paying basic interest during the course, the student's equivalent monthly installment (EMI) burden for future repayments is decreased. How to apply for an education loan? You can visit the Education Loans page on the EduFund website and fill up a simple form. You will get all the details, along with guidance from experts in the field. Taking out a loan may seem terrifying, but if the student is dedicated and makes the most of the opportunity, it will undoubtedly pay off in the long term. Consult an expert advisor to get the right plan TALK TO AN EXPERT

In India, most people earn less than Rs 20,000 a month, and in such a high inflationary environment, it becomes challenging to save money from your salary. Saving is as important as meeting your current needs; it helps you prepare for your future goals and save for an emergency. Let’s find out how to save money with a Rs. 20,000 salary in India!   Developing a habit of saving may be difficult for many salaried people, but in the long run, it can be very beneficial. It not only helps you accumulate wealth, but also teaches you to budget your needs, and expenses, save on unnecessary expenses, and allows you to make the most of your hard-earned money.  Whether you earn 20,000 or 2,00,000, investing and saving a percentage of this income is a habit thousands of millennials and Gen Z are picking up gradually. Ways to save money with a 20000 salary 1. Make a monthly budget before each paycheck Making a monthly budget will help you keep track of where your money is going and control your expenses. Making a monthly budget will help you to categorize your monthly spending. This will help you to avoid overspending, and you will be able to save some money from your monthly salary. 2. Try to clear debt with high interest rates If you have taken any loans, then try to pay off debts with the highest interest rates first. If you have not taken any loans, then try to avoid taking any fresh loans. For instance, a personal loan attracts huge interest. One should always avoid taking it into consideration. 3. Cutting down on monthly expenses You can cut down your monthly expenses in many ways, like lowering the expenses, credit card spending, electricity, mobile recharges, entertainment expenses, avoiding outside food, prudent grocery shopping, transportation, etc. By saving a few bucks from each category, you can actually save a lot of money. 4. Start investing your savings Just saving money will not help in any way until you invest it in the right asset class. If you are just saving and not investing, then your money is losing its value with time. So, investing becomes the most important part of your savings. In investing, the most critical factor is time. You need to start investing as soon as possible. You can also start your saving and investing journey with just Rs 500. The idea is to start early, even with a small amount of money. 5. Cancel unused subscription You might have taken subscriptions from different websites like Netflix, Amazon Prime, etc., but you are not using those monthly. So, you can cancel all your unused subscriptions and save a couple of bucks every month. How to save 50 lakhs for a child’s bachelor’s in New Zealand? Read More 6. Avoid late fees Avoid late fees on loans. Avoiding late fees can help plan your expenses and become systematic, and you can save money. A late fee is an extra expense that might not be planned or part of your budget. 7. Prudent grocery shopping Grocery is a must for every household and is important. One can save money in grocery buying in different ways like one can go for bulk shopping so that it will reduce the per unit cost. Another way could be to get a shopping card which allows a discount on monthly grocery shopping. 8. Shop during sales Shopping during times of sales will definitely be going to help you save money. During sales like Diwali or summer, you can find heavy discounts on clothing and other accessories. 9. Avoid impulsive buying Impulsive buying means an unplanned decision by a consumer to buy a product or a service. So, one needs to avoid impulsive buying, and if you make an unplanned decision, this will increase your unnecessary expenses. And you will end up buying things which are not important. 10. Pay yourself first Remember to pay yourself first. Do not compromise on your health; upgrade your skills, and reward yourself first. Always remember your health is wealth. Conclusion By following the above-mentioned steps, you can start saving early and develop an investment plan. Don’t wait for your salary to increase to start saving, even if your salary is low, you can start as small as Rs. 500 every month and watch how this small amount grows. Budgeting and saving small sums of money can make a huge change in your savings habit, meeting future expenses, etc.  Just ensure that you analyze the benefits of your spending. Make short-term goals to help you save money. If you save today, then you will be able to tackle any kind of emergency in the future.

Every investor is looking for a well-diversified portfolio. However, due to a lack of knowledge, investors can't do it themselves.  Here, EduFund comes in to solve your problem at no extra cost. How? Let's find out in this blog Why Educase? There are different educases to meet the requirements of every level of investor. Every case is made with proper diversification and the right asset allocation. For aggressive risk or long-term category of investors, the exposure is more in the equity asset class to provide good returns and for an investor with a short-term view (6 months), the exposure is more in the debt asset class. So, these cases meet the requirements of every investor. What is Navi Skyscraper Returns Educase? Navi Educase is a pack of multiple equity mutual funds investing across market capitalization and sectors, with most of the Index funds. Navi Skyscraper Returns is an aggressive risk category educase that invests your money in equity funds having high growth potential. This educase comes up with relatively low volatility and stable returns because this educase invests majorly in Index funds. Why Navi Skyscraper Returns Educase? It provides you with a well-diversified portfolio from a wide range of large, mid, and small-cap companies at a very low cost with the benefit of annual rebalancing. The past data on educases has been back-tested before implementation. The strategy behind Aggressive Educase This educase is designed in such a way that it beats inflation and helps you to create wealth over a long-term period. Index funds have been given more weightage to provide consistency in returns and match the market returns. Who should invest in? Early parents who have just started saving for their toddlers and have more than 7 years to save. Since the educase only consists of equity funds, the returns may not be seen in a shorter period, but in a longer period, returns will be more than average. Advantages No extra cost - There is no hidden or extra cost being charged to invest in educase. Annual rebalancing - All the Navi educases are rebalanced annually if required.  Continuous monitoring - Navi educases are tracked and monitored continuously. Lowest expense ratio – Navi as an AMC (Asset Management Company) offers the lowest expense ratio in the industry. So this educase has the lowest expense ratio because of the Index fund. Experienced Research Team – The EduFund research team has a total experience of more than 35 years collectively. Due Diligence – Educases are made after proper research and due diligence is done by the EduFund research team. How can you invest in Navi Educase? The process is simple and paperless: Download the EduFund app from the Apple Store or Android Play Store. Complete the KYC process. Calculate your risk appetite. Explore the Navi Educase under Educases. And place your order.

Having children involved in extracurricular activities has increasingly become the norm. Most parents want their children to be educated, engaged, and well-rounded individuals. However, some of these practices might be too expensive without proper planning and budgeting. Different forms of extracurricular activities are priced differently. And they might vary greatly depending on the activity and the region of the nation in which you live. Some popular extracurricular sports include basketball, cricket, aerobics, dancing, athletics, skating, combat sports, hockey, tennis, swimming, golf, track/running, and volleyball. Acting/drama, art (painting, sketching, and sculpture), and even gaming fall under extracurricular activities. While some of these activities are completely free, others might be costly. As a result, diversifying the expenditures will benefit your entire budget if you involve your children in various activities. Average expenses for extracurricular activities One factor to consider when deciding which activities to involve your children in is the expense. While this is not always the most significant issue, it is crucial to consider the activity from various perspectives to determine how it will affect you financially. Another aspect to consider is the amount of time it will take away from the family's lifestyle and whether it can be managed properly. Include the cost of time as well. Travel time, preparation duration, practice sessions, and outcome of the activities are all factors. Some sports competitions might last all day or even longer. The typical cost of a dance class varies based on the institution and the frequency of the courses. Dance academies often provide various packages to meet their pupils' learning needs. The average monthly cost of dancing instruction in India is Rs. 1,105.  The finest cricket academy in Chennai offers 6-month training for Rs.50,000. Other academies charge between Rs.3000-5000 per month for teaching. The pricing range might alter in different states, such as Mumbai, Bangalore, and Kolkata. However, for an average coaching academy in India, you need to budget at least 3000-4000 per month as a price. Recurring cost of extracurricular activities The charges for extracurricular activities are recurrent. It is the expenditure that occurs regularly and is expected monthly and annually. The pace at which it rises or falls, as well as the period for which the cost applies, are all connected. Such expenditure might be tough to budget for because it can change frequently based on the interests of your child. Creating a section for entertainment and extracurricular expenses in your budget and adhering to it might help you better account for all other expenditures connected with such expenses. Additional read: Budgeting tips for parents Short-term savings & yearly returns Short-term investments are brief or equity instruments that can be readily turned into cash. Short-term investments are liquid assets that offer a safe and temporary destination for cash reserves. In the event of short-term investments, the funds can be converted to cash after 3 to 12 months. High-yield investment funds, investment securities, treasury securities, and government bonds are attractive short-term investment vehicles. Let's look at the best short-term investment opportunities for 2022. Bank Fixed Deposits - Fixed deposit accounts provide a guaranteed interest rate on investment and returns after the fund's tenure. Fixed deposits currently provide 5-8% interest rates for investments of more than a year. Debt Instrument - Debt funds are regarded as one of the greatest short-term investments since they provide investors with minimal risk and consistent returns. Currently, debt funds provide an investment return of 7-9%. Large-Cap Mutual Funds – The large-cap mutual fund plan provides investors with high liquidity and significant investment returns. Large-cap investments in mutual funds are a secure short-term investment choice with minimal risk and a good return of 8%-13%. Money Market Account - Money market fund returns are not definite or set. MMF currently provides an annual interest rate of 7%. Post-office Time Deposits - The deposited money's interest rate is calculated annually. The post office program does not permit early withdrawal before the end of the six months. Recurring Deposits - As one of the top short-term investment plans, the interest rate on Recurring Deposit accounts is the same as that on Bank FDs. The appropriate interest rate for 12 months or more is 6.5% yearly. TALK TO AN EXPERT

As someone once said, "He who buys what he does not need steals from himself". Saving is an art; one learns to master it with time, but you don't have to wait. You can know how to save right now! Here is the best way to save money in India and learn from others so you don't spend more than you need to.  1. Save money by budgeting Budgeting your expenses is the most underrated yet obvious way to save money in India or elsewhere. By calculating your spending and where you are, you can find your monthly costs and check whether they fall within your income bracket.    Budgeting can help you understand where you are overspending, how to cut back on your expenses, and whether there is a leak in your budget, for example, a TATA Sky subscription you no longer use but are being charged for it every year. Take out your bank statement, assess where you are spending most of your money, and start budgeting. You don't have to cut down on all your luxuries, but you can eliminate the ones you no longer need or enjoy!    2. Save money by shopping online    Another best way to save money in India is to reap the benefits of digitalization and online shopping. Most brands offer great discounts and offers on items online to attract customers and retain them for the long run. For example, check different online shopping sites if you want to buy a TV. Figure out the best price by comparing it with various portals. You can also use this practice to book trips, hotels, and flights and easily save money in India.    3. Save money by using public transportation    Another way to save money in India is to use public transportation! India's metro cities are well-connected, and the availability of public transport helps Indians save money easily. This practice is not only good for your pocket but the environment. If you travel by private cabs to your office or college, switch to local trains, metro, or buses. If you use your car for daily commuting, look for carpooling with your co-workers or friends. This is a cost-effective way to save money on daily commutes for you and your colleagues.    4. Save money by avoiding lifestyle inflation   Most people fall victim to lifestyle inflation around the world. If you have increased your spending with an increase in your salary, you are a victim of lifestyle inflation. It is a phenomenon wherein people's wants increase with a rise in their incomes. It's easy to fall prey to this phenomenon because most people are unaware; a yearly bonus spent on a spontaneous trip or buying a new iPhone as soon as you receive your salary are some examples of lifestyle inflation.    Try to be conscious of your expenses and not spend your increment on luxuries or wants. Instead, try to save and invest it to make the most of your savings in the long run.    5. Save money by investing    Shockingly enough, only 2% of the Indian population is an investor in the stock market. Most Indians are averse to investing and miss out on an opportunity to create a rich corpus for themselves. But the scenario is changing; more and more people understand the benefits of saving and investing through social media. The opportunity to start investing as low as Rs. 100 or Rs. 500 has opened doors for people with no substantial disposable income but who wish to start soon and be regular.    Make the most of this finance trend in India; invest wisely and consistently so that you can save money on long-term goals like a house, your child's education, or an international trip! Explore SIP as an investment method and start saving Rs. 1000 every month in your chosen fund, ETF, or stock. You can also consult a financial advisor if you are new to investing and require expert guidance!   6. Saving money by creating passive income    Saving money also requires creating different income sources, so you do not have to rely on one source. This is a tremendous savings tip because it protects you in times of recession and job loss. Some ways to create passive income would be to invest in stocks that provide dividends to their stakeholders or skill-up to sell services like consultancy on jobs.    7. Saving money by reducing your debt   Another way to save money in India is to work towards reducing your debt to a manageable amount within your income. Try not to purchase too many items on EMI, no matter how attractive the monthly cost may be. Please avoid using your credit card for every purchase and limit your monthly expenses so you don't create a mountain of debt without realizing it.    You can use these tips and the best ways to save money in India to build a sustainable lifestyle. Avoid overindulging, and try to understand your cash flow so that you can save your hard-earned money.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Education loans for the USA have become a necessity because the cost of studying abroad is incredibly expensive. Every year Indian students travel to the USA to pursue their education at the top universities. Only some of them manage to arrange the funds, as the rest of them have to rely on education loans.  Several banks and NBFCs in India are offering education loans to interested students at reasonable rates to study in the USA.  It is essential to note that most banks do not provide 100% money for funding overseas education as 10% of the total amount has to be arranged by the aspiring student. Before applying for the loan, students should check the website of the desired university and know about the living expenses and fee structure to determine the actual amount they will need. They can use the loan eligibility calculator on the EduFund app to get a better idea about the amount they would be eligible to receive from a bank. https://www.youtube.com/watch?v=4gTQkdePOWM Education loans for the USA offered by banks  HDFC Bank Education Loan for Foreign Education – The scheme offers tax benefits, and the maximum loan amount offered is INR 20 lakhs. Oriental Bank of Commerce Education Loan for Study in India and Abroad – The loan amount depends on the fee structure of the university. SBI Student Loan Scheme – The maximum loan amount offered under this scheme is INR 1.50 crore, repaid within 15 years. Collateral is a must if the loan amount is more than INR 7.5 lakhs. Education loans for the USA offered by NBFCs Credit – the loan is offered at a floating rate of interest for 10 years. Avanse – interest rates are floating, and the processing fees are between 1 – 2% of the loan amount. Global Student Loan Corporation – this scheme does not require a co-signer. Eligibility of education loan for the USA The applicant must be a citizen of India. The co-applicants must be Indian citizens. The applicant must be 18+ years and above. Confirmed admission to a credible university in the USA. Strong academic record. Banks give preference to students studying technical or professional courses. Documents required to apply for an education loan Properly filled the application form. Admission letter from the university. The estimated cost of study. ID proof of the applicant and co-applicant. Address proof. Passport-size photographs. Income proof. Passport copy. School and university mark sheet. Documents of the qualifying exams like TOEFL, GMAT, etc. Foreign exchange permit letter. A brief statement of the assets and liabilities of the co-borrower/ guarantor/parents. Expenses covered under the education loan Tuition fees. Hostel fees. Caution fees. A refundable deposit and building fund. Laboratory, library, and examination fees. Cost of uniforms, books, instruments, and equipment. Cost of laptop if required. Traveling expenses. Insurance premium if applicable. Other expenses like projects or study tours. Repayment of education loan The terms of repayment of the education loan for the USA start after six months or one year once the borrower has secured a job or their course is complete, whichever comes first.  Tax Benefits Loan applicants can claim tax benefits and deductions only on the interest paid for seven consecutive years and not the principal loan amount under Section 80E of the Income Tax Act.  Additional read: Education loan for studying in Canada Factors to keep in mind before applying for the education loan Finalize the course and the university where you want to study.  Check the appropriate website to know about the required amount. Factor in all the expenses. Get an estimate of the total loan amount you will require. Make a list of required documents. Select a guarantor or a co-signer. Estimate the time of disbursement. How to apply for an education loan  The process of securing an education loan is time-consuming, so it is advisable to apply at the earliest possible moment.  Visit the representative of the financial institution. Check whether the study course is recognized as valid. Compare the loans provided by different banks and NBFCs based on the following parameters. Interest rate. Processing fees. Tenure or loan processing time. Expenses that are included in the education loan. Loan margin. Repayment terms. Start the education loan process immediately after submitting the application form for admission to the university.  Apply for the education loan at least three months before the date of the visa interview, as it takes time to process the education loan.   Conclusion An education loan from the USA is the best possible alternative for students who are unable to procure the required funds or scholarships for their studies in an overseas country. It helps to overcome the financial barrier of funding.  Our experts on the Edufund app can help with loan schemes up to 1 crore both in the USA and India so that you can make an informed choice. Choose from banks and NBFC partners where you do not require collateral for an amount up to INR 75 lakhs. The loan rates are low, and there are no hidden charges for a hassle-free loan approval process. Consult an expert advisor to get the right plan TALK TO AN EXPERT

The demand for education loans for Canada is quite high all over the world, especially amongst Indian students who aspire to pursue their education overseas.  Top-grade universities and colleges in Canada, unique curriculum, numerous options in diploma and degree programs, diverse exposure to an enchanting country and its culture, and excellent career opportunities lead to dynamic student life, which is preferred by the new generation.  There are several financial institutions like banks and NBFCs in India that offer education loans at reasonable rates to study in Canada. Top universities and their fees Canada is an ideal destination for studying abroad because it is home to some of the best universities in the world. The costs of a few of the top universities for an entire course are as follows- University of Ottawa - $31,444 (nearly INR 25 lakhs). McMaster University - $31,770 (nearly INR 25.64 lakhs). University of Winnipeg - $23,695 (nearly INR 18.8 lakhs). University of Manitoba - $22,000 (nearly INR 17.5 lakhs). Dalhousie University - $10,000 (nearly INR 7.9 lakhs). Brandon University - $7,203 (nearly INR 5.7 lakhs Types of education loans Education loan for Canada with collateral – The applicant has to provide collateral in the form of tangible assets (land, flat) and non-tangible (FDs, life insurance) to secure an education loan.  Loan without collateral – The applicant does not have to give any security as collateral, but there should be a co-applicant to minimize the risk.  Study courses covered under an educational loan Diploma course. Undergraduate degree. Doctorate programs. Postgraduate degree. Vocational course. Skill development course. Expenses included in the education loan Tuition fees. Hostel fees. Caution deposit. Traveling expenses. Library, laboratory, and examination fees. Cost of books and uniforms. Cost of laptop if required. Expenses for study tours or project work if required. Top Banks, tenure, rate of interest, and maximum loan amount Eligibility criteria for an Indian student The student should be a citizen of India. They should be 18 years and above (in case the student is shy of 18+ the loan will have to be secured in the parent's name). Must have a good academic record. The intended course should be valid. The admission should be to a recognized university in Canada Documents required for applying for an education loan in Canada Financial institutions need to verify the details provided by the applicant through the following documents- Properly filled-out loan application form. Photo ID proof of the applicant and co-applicant like Voter ID, Aadhaar card, PAN card, etc. Passport-size photo of the applicant and co-applicant. Residence proof like Aadhaar card, electricity bill, etc.  Result of entrance test. Letter of admission. Statement of cost of admission. Marksheet of qualifying exams. GRE/GMAT scores. Income proof of the applicant. Bank statement of the last six months of the applicant and the co-applicant. Property title deed in case of collateral Repayment terms Repayment begins after 6 months or one year once the study course is complete or the loan applicant is hired for a job, whichever comes first. The tenure is pre-decided, and the loan amount has to be paid accordingly.   Tax Benefits Applicants can claim tax benefits under Section 80E on the interest paid on the full amount of the education loan for Canada and not the principal amount. The benefits can be claimed for seven consecutive years starting from the date of repayment.  https://www.youtube.com/watch?v=4gTQkdePOWM How to get an education loan in Canada? Visit the official website of the financial institution or conduct a one-on-one interview with the representative to know the details about the education loan for Canada.   Check whether the selected course is recognized by the bank. Figure out how much loan amount you can get, the tenure, and the rate of interest.  Compare the details with other banks. After finalizing, submit the necessary documents. It takes nearly 15 days for the application process to complete. Conclusion  Education loan has become a necessity in recent years as it helps aspiring students with the required funds at the earliest.  The Edufund app ensures 100% transparency and a secured transaction for students interested in getting an education loan for Canada. It has a strategic partnership with financial institutions like Axis Bank, ICICI Bank, MPower Financing, etc., that enables students to get the lowest rates, door-step service, hassle-free process, and a better chance of loan approval. Consult an expert advisor to get the right plan TALK TO AN EXPERT

ETFs (Exchange Traded Funds) are popular in the US market. And leveraged ETFs are less known by everyone. In India, we do not have to leverage ETFs, but these are available in the US market. What is a leveraged ETF? Leveraged ETFs are exchange-traded funds that use financial derivatives and debt to increase the returns of an underlying index like the S&P 500. Leveraged ETF possesses high risk and return attributes. A leveraged ETF tries to boost the daily returns of the index. They basically take the margins/leverage by using debt and financial derivates. How do leveraged ETFs work? Traditional ETFs try to match the returns of the benchmark, but leveraged ETFs try to maximize the returns two to three times rather than just matching the benchmark's performance. Leverage ETFs use borrowed money to invest in financial derivatives such as future and option contracts. For example, an ETF that tracks the S&P 500 index will try to replicate the returns of the benchmark. But leveraged ETF will seek to maximize returns on a 2:1 or 3:1, expressed as 2x or 3x, respectively. Suppose an S&P 500 tracking ETF has generated returns of 2%, then a leverage ETF 2x can provide you 4% returns. And if the S&P 500 tracking ETF has generated negative returns of 3%, then a leverage ETF 2x can provide you 6% negative returns. Are leveraged ETFs expensive? Usually, traditional ETFs have an expense ratio of around 0.45%, but leveraged ETFs have an expense ratio of around 1.00%. The reason for the higher expense ratio is the frequent trading of underlying securities using leverage. A higher expense ratio reduces the returns of a leveraged ETF. Pros and Cons of leveraged ETFs Pros Easily to trade – Like any other ETFs, leverage ETFs are also traded on the exchange in the open market operations, just like stocks. So, it becomes easy to trade in leveraged ETFs. Access to derivatives – Leverage ETFs provide indirect access to financial derivatives, such as future and options contracts, which may not be accessible by everyone or cost high to trade. Potential to provide exceptional returns – Since these ETFs use leverage and invest in equity derivatives, they have the potential to provide exceptional returns to their investors compared to traditional ETFs. Cons Higher expense ratio – Comparatively leveraged ETFs require more management; due to this reason, these ETFs have a higher expense ratio than traditional ETFs. So, these ETFs could cost you more as they are associated with trading in financial derivatives. High risk – Leverage ETFs have high market risk compared to normal ETFs. Suppose the market or underlying security is not moving in one direction. In that case, these ETFs can erode the value of your money over time as they might have taken the opposite position. Poor long-term holdings – Since these ETFs mainly trade in derivatives of underlying securities, so they do not hold any security for a longer period. They only use stocks for a short-term period to generate daily profits. Conclusion Leverage ETFs can provide you with hefty returns, but they can also erode your wealth if the market reacts inversely. Evaluating leveraged ETFs is very crucial before investing. You can choose a normal ETF if your risk appetite is less, or a 2x/3x leveraged ETF if you take very high risk. Consult an expert advisor to get the right plan TALK TO AN EXPERT

A sound investment strategy is value investing, where investors aim to buy stocks, bonds, real estate, and other assets for less than they are worth. Selecting stocks could be difficult because the market overreacts to good and bad news, so the stock price movements won't reflect the company's long-term perspectives. What is value investing? There are two primary concepts regarding value investing, i.e. undervaluation and overvaluation. When a stock trades at less than its intrinsic value, it is considered an undervalued stock. And on the other hand, when a stock is trading at more than its intrinsic value, it is considered overvalued.  Value investing is simply buying securities at a discounted price. The commodity is for sale because its demand may not be high at that time. You save money by buying at a low price. Stocks, like any other commodity you buy, go through periods of low and high demand. As a result, the value of stocks tends to fluctuate. This does not change the value you get for your money. Price, low or high, is just a mere reflection of demand, nothing more. However, value investing means savvy value investors get the most out of stocks by buying them at low prices. Value investors hold onto them because they are in the process of making long-term profits, and they make a killing when these stocks go up. Technically, buying the securities below their intrinsic value. Additional read: What are goal-based savings? How to calculate Intrinsic value? There are various methods to calculate the intrinsic value of a company. Fundamentally speaking, a company's intrinsic value is calculated by determining the present value of the company's future cash flows. It requires projected future cash flows and rate of return to determine the intrinsic value of future cash flows. Let's see some methods to calculate the Intrinsic Value of a company. 1. Price-to-Book Ratio Price to Book, or P/B ratio, compares a company's stock price to its book value per share. Book value per share of a company is the company's net worth (assets minus liabilities) divided by the number of shares outstanding. In some cases, investors exclude certain intangible assets (e.g. goodwill) from the calculation of the PB ratio. In theory, any value below 1.0 means that the company's stock is selling for less than the company's net worth. Today, some banks are trading below their book value, while some growth companies are trading at multiples of their net worth. 2. Price-to-Earnings Ratio The price-to-earnings, or P/E ratio, compares a company's stock price to its annual earnings. For example, a P/E ratio of 15 suggests that at the company's current earnings, it will take 15 years to break even in the share price. Advantages of Value Investing Sustainable returns: Value investing could provide more than average returns in the long-term if done accurately. And these provide consistent returns over a longer period. Minimized risk: Value stocks have low volatility compared to growth stocks. Low volatility provides better risk-adjusted returns. 3. Value investing with mutual funds Mutual funds offer investors the opportunity to invest in value-driven stocks. Most large funds offer both actively managed and passively managed (i.e. index funds) value funds. For example, the ICICI Prudential Value Discovery Fund invests in value companies. A simple comparison of this fund can be made with the PGIM India Flexi Cap Fund. Conclusion Evaluating companies on the basis of value buying should not be the only criteria. Value investing is a prudent approach for value investors, and mutual funds offer funds that invest in value-driven companies. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Long-term goals help in achieving a significant desire in the long run. From an individual’s viewpoint, the term long-term goals mean achieving outcomes in the course of their life. It relates to personal struggles, career graphs, relationships, education, health, business dealings, savings, and investing plans.  Long-term goals cannot be achieved in one year, month, week, or day. It takes years for them to bear fruit. This type of goal requires proper planning and more effort for desired outcomes. Long-term goals motivate people to believe that their hard work will pay off eventually in the long run. Types of long-term goals  1. Career goals Long-term career goals relate to an individual’s career and job goals.  For example, starting a business, developing a career-specific skill, changing careers, or getting promoted.  2. Financial goals Financial goals focus on investing and saving for the future and creating wealth. This type of goal relates to money, and from an investor’s viewpoint, long-term financial goals are the ones that last for 5 years or more.  Examples include savings and investment schemes like a child’s higher education plan for abroad and retirement plans. Common investment vehicles to achieve them are mutual funds, real estate, and equities/shares.  Investors who want to create long-term education and retirement plans can choose Edufund. The app boasts of 4000+ direct mutual funds, SIPs, US ETFs, ELSS funds, US stocks, and fractional investing. Financial experts are available at every point of the journey to guide them toward choosing suitable savings plans to achieve their long-term goals.  3. Personal Goals Personal goals are the ones that focus on the personal life of an individual.  Common examples include pursuing a hobby like writing a book, becoming a better parent, or learning a skill that will help in the future. Additional read: What are long-term goals? How to set and achieve long-term goals? 1. Proper planning The research lays the groundwork for proper planning. It helps to understand what long-term goals are of an individual and how to set and achieve them effectively.  Differentiate between wishes and goals and rely on facts and not on luck and wishful thinking. Take concrete steps, and with the help of thorough research, make a concrete plan.  Financial experts on the Edufund app can guide you in investing in the right savings plans. The app also has the necessary tools like a SIP calculator, college cost calculator, and to create personal financial plans.   2. Set goals that matter Long-term goals are for the future and require goal-setting that will prove beneficial in the long run. Set goals that will matter, for instance, a retirement plan that every person needs for later years. If the goals are vague, they will lose their meaning over the years. The loss of focus, meaning, and motivation will decrease the likelihood of achieving that goal.  3. Take concrete steps Take concrete steps if you want to achieve long-term goals. Be precise, clear, and determined in your efforts as it will help focus and improve performance.  4. Be specific Be specific and create challenging but achievable goals that are easy to pursue. Tasks that are too easy can fail to motivate, whereas which are too hard proves demotivating. Find the right balance and push yourself towards it for desired results. 5. Break them into smaller goals Break the long-term goals into small-term goals as they are easily achievable in a short duration. When you achieve a small task, you take a step forward and contribute to the overall goal. Several small steps can make the long-term goals look doable.  6. Write it down When you have a clear path, it becomes easy to reach a goal. Write the goals in a diary or a journal because writing them down gives the goal a proper meaning and converts thoughts into action. It also acts as a reminder to focus and move towards them dedicatedly. 7. Create a feedback cycle Create a feedback cycle to track your progress on all aspects and identify roadblocks, if any. It will help to adjust and change for expected outputs.  8. Keep a track Keep track of the long-term goals to identify whether the desired goals are being met. The action plan has already been mapped out in the planning phase, and this stage confirms whether the tasks have been undertaken as per the schedule.  Conclusion Focusing on long-term improvement helps to achieve emotional intelligence, self-improvement, and personal development. There is a deep sense of purpose while working on a long-term goal, which encourages an individual to keep moving forward. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Short-term vs long-term savings for your child’s education is a common dilemma for parents who are trying to secure their child’s dream via quality education. Nothing is more important than a kid’s future, and education can open doors of opportunities for better personal and professional life.  Parents have to create proper education plans to deal with the rising cost of education. They have to save and invest promptly in worthy investment schemes that will yield the highest possible returns.  Which of the investment schemes is better, where should one invest, and is short-term better than long-term savings or vice-versa are important questions that need to be answered before creating an effective educational plan for your child’s higher education?  Let us identify the differences between short-term vs long-term savings based on different parameters to understand the purpose they can fulfill. Difference between short-term vs long-term savings 1. Meaning Short-term savings are used mostly to deposit excess funds for a shorter period. These are highly liquid and predictable schemes that can meet any unexpected future expenses. The long-term savings, on the other hand, cannot be easily liquified, nor can they meet any unexpected expenses.  2. Goal-based The short-term investment is created to meet immediate savings goals, whereas the long-term investment is created to meet long-term savings goals.  3. Tenure The timeframe of short-term and long-term savings plans vary as the former is for a small duration that lasts between 0 – 1 year, and the latter is for a longer duration as the investment tenure lasts for 5 years or more.  Additional read: Personal loan vs education loan 4. Risk and return expectations Every investment has some amount of risk and returns attached to it. It is the difference between the two financial instruments, short-term and long-term, that determines the amount of risk and return expectation.  Short-term investments show a lower risk for capital preservation and stable return expectation, whereas long-term investments show a higher risk incurred over a longer tenure in expectation of capital growth. 5. Purpose  The purpose of the investment matters a great deal. If you are in the later stages of the investment horizon, and it is time for withdrawal, then it is better to gradually stop long-term investment schemes and shift them to short-term savings like FDs and debt instruments. The purpose is to make the investments safe and secure, as short-term savings are considered safe compared to long-term savings schemes.  Thus, when the purpose of the scheme is principal protection, then short-term savings plans are the best option, but if the purpose is high returns, then long-term investment schemes are the better options.  Additional read: How to set financial goals? 6. Investment vehicles Investment vehicles to achieve short-term goals are savings accounts, FDs, treasury bills,  Gilt funds, and debt mutual funds. These are safe and secure vehicles with very low risk. Whereas the vehicles to achieve long-term goals are real-estate, mutual funds, ETFs, and equity/shares with high risks.  Choose from an option of 4000+ direct mutual funds and take a SIP for as low as INR 100 on the EduFun app if you are interested in saving for your child’s education. The app also offers the best US ETFs for a child’s education as well as ELSS funds that help parents in saving tax while investing in their child’s education corpus.   7. Rate of interest The interest rate for a short-term savings plan is less than that of long-term plans. A savings account offers an interest rate between 3% to 4%, whereas the rate of interest for an FD is 5% to 7%. The rate of interest for long-term schemes like mutual funds is way high as it shows an estimated return between 12% to 16%. Equity-oriented mutual funds with a holding period of more than 3 years generate nearly 15% returns.  8. Power of compounding The power of compounding makes the long-term investment yield higher returns, whereas short-term investments are unable to take advantage of the compounding power to the fullest.  9. Accessibility Short-term savings plans are easily liquified and accessible, whereas it is difficult to break the long-term schemes. Although the interest earned is small on the short-term savings plans, it can be withdrawn at any given time. The long-term savings plans, on the other hand, are more or less fixed for a definite tenure. In some cases, the investor can withdraw a part of the savings after a definite tenure but withdrawing the full amount is a bit trying.  Conclusion Short-term and Long-term savings plans are equally important to create an education corpus. It is important to note that a proper education plan must cover both short-term and long-term investment schemes. The right balance will yield some of the best possible returns to help parents to fulfill their child’s desire for a good education. Consult an expert advisor to get the right plan TALK TO AN EXPERT

When you have a goal in your mind, the whole process of planning and saving becomes easier. The goal could be anything with a certain amount of buying a house, creating wealth, retirement, vacation, buying a car, or even the dream education for your child. But, in this blog, we'll discuss specifically how to save money for child education in India Steps on how to save money for child education in India 1. Define a goal First, you must define your child's education goal. A goal consists of three things, i.e. horizon, target amount, and it should be realistic.  For example, you want to save Rs 50 lac for your child's higher education in the next ten years. So, you need to define your financial goal first in order to save for your child's higher education. 2. Record your expenses Second, you need to figure out how much you spend monthly on different categories like grocery, rent, entertainment, eating out, online shopping, etc. Calculate your spending to know where you are spending the most and least. 3. Prepare a budget and include savings  Now that you have an idea of where you spend the most and least, you can cut down your expenses. After calculating all your expenses, you can plan your savings and limit overspending. Include a saving category in your budget and try to save it every month. You can target 15% to 20% of your monthly income or save as per your financial goal requirement. Additional read: Are education loans a good idea? How much should you save for your child's higher education?  Many times, parents wonder where to get the best education for their child, whether from India or abroad, and which is the best course or university for their child's higher education. In addition, while pursuing higher education, there is another significant cost involved i.e. the living cost. Here, EduFund provides you with the college cost calculator to calculate the cost of your child's higher education along with the living cost. You can select the desired course for your child and the top universities as your target, and it shows you the tuition cost and living cost. After using the calculator, you will know the range you need to save monthly. 1. Starting early Starting early will give your money enough time to compound as time will be in your favor and your monthly contribution towards your target will be less if you give more time to your target. The maximum time you give your money to compound the monthly savings required will be less.  Understanding this with an example, suppose you need to save 50 lac after 15 years, then you need Rs 9,000 per month (assuming 13% annualized returns) to save for this target. Let's assume you delay the same goal by three years; now, you need Rs 14,500 per month (assuming 13% annualized returns) to save the same target amount of 50 lac. So, starting  saving and investing as early as possible is always advisable to get the most benefit of the power of compounding. 2. Where to put your savings? Now, the question is where to put your savings, which is the suitable asset class to save money for your child's higher education. There is no particular answer to this question as the asset class varies from individual to individual.  But suppose you have a more prolonged investment or saving horizon. In that case, you can invest your money in equity mutual funds, which can fetch you higher returns of more than 13% annualized returns over a longer horizon. But if you have two or three years left for your target, then hybrid mutual funds (it is a combination of equity and debt mutual funds) could work in your favor. And if you are planning to send your child abroad for higher education, then diversify your portfolio to the US market so that it can be hedged against the falling currency, and you get geographical diversification. 3. What if you cannot save enough? In case, you don't reach the target amount despite your continuous efforts, then you can look at available loans that wouldn't be so burdensome because you've done most of the work by saving and investing wisely. You can even try for some scholarships to fund your child’s higher education. Scholarships are available to a limited number of students. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Sending your child abroad for higher studies? Or is there a course that is domestic and expensive?  Wherever it may be, the cost of higher education is often on the upper end of our budgets and keeps on increasing with every passing year. But that shouldn't stop your child! Education loans (student loans) are advances made by banks or financial institutions to students to help pay for the cost of higher education. Under this special loan program, highly qualified students are given financial support to study in institutions in India and abroad. Many Indian banks offer such loans at low interest rates and with flexible terms to qualified applicants. In addition, the documentation process is kept to an absolute minimum so that students can get their loan cash as soon as possible. Education loan eligibility The important education loan eligibility criteria that candidates need to fulfill to get loan approval are given here: The loan candidate applying for the loan must be a resident of India. Must have confirmed admission to recognized educational institutions in India or abroad. The age of the loan candidate must be between 18 and 35 years at the time of the loan application. Must have done Post Graduate/Post Graduate or PG Diploma. The candidate must have secured admission to a college or university affiliated with the All India Council for Technical Education (AICTE) / Govt / University Grants Commission (UGC), etc. Students attending full-time courses must have a co-applicant who can be either a parent/guardian or a spouse/father-in-law (in the case of married candidates). The best time to apply for education loans Read More Education loan documentation Below is the list of all the mandatory documents that a student must submit to banks when applying for a student loan: Duly completed and signed application form with pasted photos Two passport-size photos Copy of mark sheets 10/12 or the last education certificate Statement of expenses for the course/ study costs Aadhaar card and PAN card of student and parent/ guardian respectively Proof of Age: Copy of Aadhaar Card / Voter ID / Passport / Driving License Proof of Identity: Copy of Voter ID / Aadhaar Card / Driving License / Passport Proof of residence: Lease agreement / Statement of the bank account of the student or co-borrower / guarantor for six months/ copy of allotment letter/ gas book/ electricity bill/ telephone bill Proof of income Most recent pay stubs or Form 16 of parent/guardian / co-debtor Six months' borrower's account statement or updated bank passbook An Updated ITR (Income Tax Return with Income Computation) for 2 years or IT assessment order for the last two years of parent / co-borrower / guardian Documents communicating the assets and liabilities of the parent / co-debtor / guardian. https://www.youtube.com/shorts/Icp7ASAGrjw List of expenses covered by the education loan Below is the list, of what the loan amount will cover: Tuition Accommodation fees Travel expenses and travel money for students studying abroad Insurance Premium Cost of books/ equipment/ tools/ uniform Examination/ Lab/ Library Fees The cost of a computer/ laptop required to complete the course Deposit, building fund / refundable deposit evidenced by promissory notes/ receipts of the institution Any other expenses which are required to complete the course, such as study trips/ thesis/ project work Education loan interest rates In India, the interest rates for education loans vary from bank to bank. However, it can be anywhere between 12.00% and 16.00%, which, of course, depends on the bank's prime rate and other factors. The base interest rate for banks in India is around 9% - 10% as per RBI guidelines. Additional read: What is education loan insurance What will improve your education loan eligibility? Banks are careful while analyzing the eligibility of the candidates to ensure that the financial aid reaches the students. Before a loan is approved, the basic characteristics that are considered are the student's overall academic quality, their future educational path, and their current admission status. Scoring high grades/ places in qualifying exams Displaying good academic results Getting admission to a reputed/ top institute or university Strong financial background of parents/guardian/ co-borrower Showing good prospects for future employment/ income generation Conclusion Getting an education loan will come at a cost that could be a financial burden for any student. And with that burden, you might end up taking a 100% loan.  Download the EduFund app today to start planning for your child's higher education. TALK TO AN EXPERT