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“Mutual funds or stocks risky hai, FDs karlo.” You have probably heard this statement from your parents or relatives in your life. Indians have stayed away from stock market for years now. According to SEBI, compared to United States (55%), the United Kingdom (33%), and China (13%), only 5% of the Indian population has ventured into the stock market.   Reserve Bank of India data shows that a staggering 95% of Indians have savings in FDs. While fixed deposits are safe and secure, are FDs the best way to invest money in 2024? Let’s look at some of the best emerging ways to invest money in 2024 and help you choose which investment is the right match for you.  Before we start with the blog, here’s an existential question (and answer) for you  Why Should You Invest? If you have ever contemplated why you should invest at all, then here’s a brilliant reason to convince you to start. Rising inflation. Inflation erodes the purchasing power of your cash over time. The money in your account today is losing its purchasing value. Investing your money in the right instruments is what matters – it will help you keep up with the rising costs of commodities and allow you to enjoy a stress-free life. Investing ensures your money is working for you and offers you a debt-free life in the future.    Here are some compelling reasons to invest in 2024:   Beat Inflation: Investing can help you outpace inflation and preserve your wealth. Take education inflation, for example, it is nearly 10%.     Financial Goals: Investing can help you achieve your financial objectives, such as buying a house, funding your child's education, or retiring comfortably.   Create Wealth: Investing can generate substantial returns over the long term, helping you build wealth.   Tax Benefits: Many investment options offer tax benefits, reducing your overall tax liability.   Diversification: Investing in a diversified portfolio can help you manage risk and reduce volatility.  Affordable: Investing is affordable. Whether you opt for FDs, RDs, or mutual funds, you can start investing with as little as ₹1000. It is a great option to grow your money in the long run. You can opt for a lumpsum or SIP style of investing.  Financial Security: Investing is the gateway to financial security and independence. It can help you with your daily needs, emergency funds and help you accomplish long-term goals like your child’s education costs.   Uncomplicated: Investing is the easiest, straightforward and uncomplicated way to use your money. It can accomplish various goals in one go and you can start investing in less than a day from the comfort of your house.   Accessible: If you have a phone, PAN card, Aadhar card and an Indian bank account, then accessing the best investments is just a few taps away for you. You can invest in mutual funds, digital gold and FDs all at once from a single app.     What are the types of investments in India? There are various types of investments available in India, each with its own risk and return profile. Some popular options include:   Equity: Investing in stocks of companies, aiming to benefit from their growth and appreciation in value.  Debt: Investing in bonds, debentures, and other fixed-income securities, providing regular interest income.  Real Estate: Investing in properties, either residential or commercial, for rental income or capital appreciation.  Mutual Funds: Pooled investment vehicles managed by professionals, offering diversification and access to various asset classes.  Gold: Investing in physical gold, digital gold or gold-backed securities, considered a safe haven asset during economic uncertainty.  Fixed Deposits: Investing in fixed-term deposits with banks or non-banking financial companies (NBFCs), offering guaranteed returns.  National Pension System (NPS): A retirement savings scheme offering tax benefits and a mix of equity and debt investments.  Public Provident Fund (PPF): A long-term investment scheme with a guaranteed return and tax benefits.  Government Schemes: There are several government investment schemes that empower Indians and encourage to invest money. Schemes like Atal Pension Yojana, Kisan Vikas Patra, Sukanya Samriddhi Yojana, Sovereign Gold Bonds, etc.  Now that we know the types of investment instruments available to us in India, let’s talk about which, among them, are the best ways to invest money in 2024.  10 Best Ways to Invest Money in 2024 You should always choose investment instruments based on your unique needs, risk tolerance and goals. So here are some of the popular investment options in India for 2024:   Stocks: Investing in stocks of promising companies can offer substantial returns over the long term. It is one of the best ways to invest your money in 2024 – stocks can help you grow your wealth over a period of time, help you fetch attractive returns and give you liquidity to withdraw your money in time of need.   Mutual Funds: Mutual funds have emerged as one of the most popular ways to invest money in India. Mutual funds allow you to invest in a host of stocks at minimal cost. These funds are a diversified portfolio managed by fund managers who can help you achieve your investment goals. They are inexpensive, easy to monitor, and have minimal maintenance costs. Mutual funds offer returns that rival inflation rates and help you save consistently for long term goals like your child’s education.  Here’s all about the best & latest mutual fund offerings for your unique needs.    Real Estate: Investing in properties can provide rental income and capital appreciation. Land is considered a sacred investment in India; thousands of people consider this an emotional yet practical investment in our country. While property is a great investment, it can be a costly one. It requires months of planning, research and effort to buy a real estate investment.   Gold: Gold is considered a safe haven asset and can hedge against inflation. Gold is an evergreen investment. It is a natural hedge against inflation. You can invest in gold digitally as well as in the physical form. Digital gold investments are easy, inexpensive and there is no fear of storage or purity defraud.  Fixed Deposits: A reliable investment option with guaranteed returns. Fixed deposits are historically the best ways to invest money in India. They are safe and allow you to grow your money at a predetermined interest rate. There is another category of investments within this group called corporate fixed deposits that can offer a higher rate of returns at the same investment cost.   Recurring Deposits: If you are looking for a safe investment where you can invest regularly then opt for recurring deposits. They are like FDs, but you can invest monthly in these investments instead of a one-time investment like FDs.   National Pension System (NPS): A tax-efficient retirement savings scheme. It is a government monitored scheme which allows you to growth your money in a safe and secure manner.   Public Provident Fund (PPF): A long-term investment with guaranteed returns and tax benefits.   Sukanya Samriddhi Yojana (SSY): A beneficial scheme for a girl child. You can save for your daughter’s education or marriage till they turn 14 years of age. Your investments are safe under this scheme.   Bonds: Investing in bonds issued by companies can provide regular interest income.  Who should invest in which investment? The best investment option for you depends on your individual circumstances, risk tolerance, and financial goals. Here's a general guide:  Risk-Averse Investors: Consider fixed deposits, government bonds, or low-risk mutual funds.  Moderate Risk-Takers: Explore equity mutual funds, corporate bonds, or a mix of debt and equity investments.  Aggressive Investors: Consider direct equity investments or high-risk mutual funds.  Long-Term Investors: Focus on investments with a long-term horizon, such as equity, real estate, or NPS.  Short-Term Investors: Opt for investments with a shorter time horizon, such as fixed deposits or liquid funds.  How much should you invest?  The amount you can invest depends on your income, expenses, and financial goals. It's essential to create a budget and allocate a portion of your income towards investments. Start small if necessary and gradually increase your investments as your income and financial situation improve.  When should you invest?  The sooner, the better. The more time you give your investments to grow and flourish, the bigger your final amount. The best time to invest is typically when the market is experiencing a correction or downturn. However, it's important to remember that timing the market is difficult and can be risky. A better approach is to invest systematically over time, regardless of market conditions. This strategy helps you average out the cost of your investments and reduces the impact of market volatility.   8 factors to consider before you invest money Here are some factors to consider before you start investing money in different investment instruments:  1. Know your financial goals   Every person has financial goals to achieve; whether it’s to cruise around the world or pay for your child’s foreign education. Everyone has them and everyone needs to work for them.  The first rule of investing is to determine your short-term goals like buying a car and long-term goals like buying a house to figure out how to work towards it based on your finances and spending.   When it comes to financial planning, it’s best to be realistic. Understand your goals and determine the best way to attain them without compromising your present needs!   2. Study your finances   Before investing a huge sum, it’s good to budget your finances and understand where your money is going. For instance, if you have an income of Rs. 45,000 a month and if you spend Rs. 25,000 on rent then it’s not feasible for you to invest Rs.20,000.  You have to take care of your utility bills, food, and other miscellaneous expenses. It’s best to pick a realistic amount for investing every month that you can pay consistently before starting a SIP.   3. Time your financial goals   Knowing how much time you have and need to achieve your goal is a crucial aspect of investing. Some investments have a lock-in period; suppose you choose an investment that has a lock-in period of 5 years but you need your money in 3 years, this can throw your financial planning off the charts.  So, it’s important to align your deadlines with your investments so that you can take care of all your needs on time ways to invest  4. Know your risk appetite   Some investments are riskier than others, some offer low to medium risks. Depending on your risk appetite you can choose the option that suits your financial goals and current needs.  Risk appetite depends on a number of factors like your running income, sources of income, financial obligations, number of dependents, age, etc.   5. Put your eggs in different baskets   You have probably heard this line more than enough to know relying on one financial tool like an FD Mutual Fund or ETF alone can be a huge mistake.  It is always beneficial to diversify your investments so that you can achieve your financial goals faster and more efficiently. Speak to an expert if you have trouble assessing the different investments for your unique goals!    6. Avoid impulse decisions   Many first-time investors make the mistake of investing everywhere without any specific goal in mind rather than the lure of lucrative returns.  While these avenues may be a great investment opportunity, they could prove to be a loss. So do your research well, understand your needs, and then invest your hard-earned money into schemes you can vouch for!   7. Ensure you have enough liquidity    Some investments have lock-in periods and levy extra charges for redemption before the set date. This can be a huge loss on your investment!  While you cannot foresee future emergencies, you can prepare for them with emergency funds and some liquidity, that is, cash in hand!     8. Market research is key   While the pandemic introduced various changes and led to the emergence of pharma companies like high-return investments, the winds are changing again.  Companies like manufacturing and logistics are making a grand comeback, especially in India with the start-up culture in full swing. So, know your market before making any big investments. If you have no prior expertise in share market research then contact an expert!    Choosing from the best ways to invest money in 2024 can be overwhelming and exhausting! Consult our savings experts and determine which of the following ways to invest perfectly aligns with your goals. Download the EduFund app to connect with our experts and start investing!  

India’s first capital markets index fund launched by Tata Mutual Fund is here. This investment fund aims to replicate the performance of Nifty Capital Markets Index. The first of its kind in India – the Tata Nifty Capital Markets Index Fund's primary goal is to invest in top 20 companies from Nifty 500 Index that are part of the capital market ecosystem. This includes asset management firms, stockbrokers, exchanges, and data platforms.  Capital markets in India have bloomed over the past few years. This growth is a result of increased investor participation, higher trading frequency, digitalization of financial facilities and intermediaries, growth in demat accounts and mutual funds.   “The exemplary performance of the Indian stock market compared to the world and emerging markets over the years can be primarily attributed to India’s resilience to global geo-political and economic shocks, its solid and stable domestic macroeconomic outlook, and the strength of the domestic investor base,” stated Finance Minister Nirmala Sitharaman in Parliament.  About Tata Nifty Capital Markets Index Fund    Tata Nifty Capital Markets Index Fund belongs to the index fund category, and the type is open-ended.  Investment Objective: The investment objective of the scheme is to provide returns, before expenses, that commensurate with the performance of Nifty Capital Markets Index (TRI), subject to tracking error.  NFO Information   If you wish to invest in Tata Nifty Capital Markets Index Fund, then here’s all the information you need about the NFO by Tata Mutual Fund.  Open Date 07-Oct-2024 Close Date 21-Oct-2024 Allotment Reopens 30-Oct-2024 (Scheme reopens for sale) Risk Very High  Fund Details  Tata Nifty Capital Market Index Fund is an open-ended scheme benchmarked against the Nifty Capital Markets Index (TRI). The last date to invest in this scheme is October 21, 2024. Here are some important details about investing in this index fund:  Minimum Investment Lumpsum - ₹5000 Exit Load 0.25% if redeemed on or before 15 days from the date of allotment. Entry Load NIL Minimal Additional Amount  ₹1,000 Minimum Redemption ₹500 or 50 units or folio balance (whichever is lower)  Key Benefits   Tata Nifty Capital Market Index Fund is a unique opportunity for investors to explore. The confidence in the financial ecosystem is growing amongst Indians. This fund gives you an opportunity to invest in companies that are real force behind India’s capital growth.   Affordable: Invest in India’s investment enablers at a minimal investment cost of ₹5000.  Passively Managed: The fund selects the top companies from Nifty 500 Index and tracks the performance judiciously.   Wealth Generator: Potential for long-term capital appreciation with a disciplined approach to investing.  Access to Indian Equity Markets: The fund allows to invest in Indian Equity Markets that are experiencing tremendous growth.  Fund Manager   The new Tata Nifty Capital Market Index Fund is managed by Kapil Menon at Tata Mutual Fund.  Who Should Invest in Tata Nifty Capital Market Index Fund?  This fund is ideal for investors who are seeking:  Long term capital appreciation   Exposure via investment in equity and equity related instruments comprising Nifty Capital Markets Index.  Sectoral exposure to key companies like stock exchanges, AMCs, financial advisories, depositories & more.  Wealth and growth by investing in financial assets instead of physical assets.  Ideal Time to Stay Invested   The ideal investment period for this fund would be 3 to 5 years.  Conclusion  This is a tremendous opportunity to explore and invest India’s emerging equity markets. By investing in Tata Nifty Capital Market Index Fund, you invest in India’s financial markets and market movers! Consult your financial expert to invest in this NFO before 21st October 2024.   Note: This is not investment advice. All the above information is for educational purposes only.  Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. 

Sector funds are mutual funds that invest in companies that belong to a specific sector of the economy. Sectors like Healthcare, Finance, Real Estate, Energy are usually covered by AMCs to expand the market and diverse investors’ portfolio. Sector funds can be a great addition; they follow a focused strategy towards investments. These funds capitalize on the growth and performance of the specific sector by investing predominantly in companies operating within that sector.   Sector funds can also potentially offer high returns when timed wisely. For example, during the pandemic, the pharmaceutical sector and its companies saw prosperity, which resulted in high demand for these companies and increased returns for their investors. Sector funds employ a tactical approach to investing and allocate funds so that the investors can seize the market trends and global political shifts.   Sectoral funds are more effective for long-term investors. Investors who are hoping to invest for long-term goals like child’s education expenses or college should consider this type of investment fund. This is because sectoral funds are high risk funds because they lack diversification within the sector, they require careful market timing so that the investor can determine when to enter and exit the fund, and they can be volatile to changing economic and socio-political sphere. Hence, investors saving for long-term goals and planning to stay invested for the long haul can consider this type of fund to add to their portfolios!  What are Sector Funds? Sector funds are equity mutual funds that invest in companies belonging to a specific sector. Investors get targeted exposure to a specific sector of the economy like healthcare, energy, IT, infrastructure, real estate and many more.   For a sector fund to qualify as one, fund managers need to invest 80% of the fund’s total assets in equity and equity-related instruments of a particular sector. Sectoral funds invest in companies of all sizes from large-cap to mid-cap to small-cap. For example, a sector fund with focus strategy on energy sector would invest in companies such as Reliance Industry, NTPC, ONGC, Adani Green Energy, Tata Power and more. Similarly, a sector fund focused on apparel and accessories would focus on companies that thrive in this sector such as Titan, PC Jeweller, Kaylan Jeweller, Campus and more!    Characteristics of Sector Funds: Here are some characteristics of a sector fund to help you determine if it's a good investment for your goals:  Targeted exposure: Sector funds offer investors concentrated exposure to a specific industry or sector, allowing them to capitalize on the growth potential of that sector.  Higher volatility: They are focused on a single sector like energy or healthcare, sector funds can be more volatile than traditional mutual funds. The performance of the fund can be heavily influenced by the performance of the underlying sector.  Potential for higher returns: If the chosen sector performs well, sector funds can generate higher returns than traditional diversified funds. However, if the sector underperforms, the fund's returns may be lower.  Sector-specific risks: Sector funds are subject to sector-specific risks, such as regulatory changes, economic downturns, or technological disruptions that can negatively impact the performance of the sector.  High risk: Sector funds invest in a specific sector and lack diversification which means these are some of the riskiest funds to consider.   Long term investment: A particular sector may take years to thrive so investors who are planning to invest for long-term goals like their child’s education can consider sector funds. An investment horizon of 5-10 years is good for sector funds.  Who Should Invest in Sector Funds? Here’s how you determine if sector funds investment is right for you and your goals:  Investors with high risk tolerance: Due to their concentrated nature and limited diversification, sector funds can be more volatile. Investors who are comfortable with potential fluctuations in their investments are more likely to benefit from sector funds.  Investors who are looking for long-term growth potential of a specific sector: Investors who have a strong conviction in the future prospects of a particular industry or sector can use sector funds to capitalize on that growth.  Investors who are prepared to accept potential losses: Sector funds are not immune to downturns, and if the chosen sector underperforms, investors may experience losses.  Investors who are seeking targeted exposure: Investors who want to focus their investments on a specific industry or sector, rather than a broad range of assets, can use sector funds to achieve this goal.  Investors who are looking for long-term investments: Investors who are looking to stay invested for 5-10 years and more should look at sector funds. Sectoral growth can take time and hence, staying invested is key to seeking potential growth.   However, sector funds may not be suitable for investors who:   Are risk-averse: If you are uncomfortable with the potential volatility of sector funds, it may be better to invest in more diversified options.  Lack knowledge about the sector: Investing in sector funds without a thorough understanding of the underlying industry can increase the risk of making poor investment decisions.  Are seeking short-term gains: Sector funds are typically more suitable for long-term investments, as the performance of a sector can fluctuate significantly over shorter periods.  Sector Funds vs Traditional Mutual Funds Feature Sector Funds Traditional Mutual Funds Investment Focus Specific industry or sector Diversified across multiple industries and sectors Volatility Higher Lower Potential Returns Higher (if sector performs well) Generally lower Risks Sector-specific risks Diversified risks Suitability Investors seeking targeted exposure to a specific sector Investors seeking diversified exposure across multiple industries Sector Funds vs Traditional Mutual Funds Benefits of Investing in Sector Funds for your Child’s Education Sector funds can also potentially offer high returns when timed wisely. Here are some reasons why adding them to your long-term investment portfolio can be beneficial.   Time horizon: Sector funds are well-suited for long-term investments, aligning with the goal of saving for education. If you are saving for college, you are probably planning to stay invested for 8-10 years which can be a good time horizon for sector funds.   Industry-specific focus: Sector funds concentrate on specific industries or sectors, allowing you to capitalize on the growth potential of a particular field.  Potential for outperforming the market: Sector funds can potentially outperform broader market indices if the chosen sector experiences strong growth. These funds can potentially beat the rising education inflation and help you send your child off to college debt-free.  Potential for higher returns: If the chosen sector performs well, sector funds can generate higher returns than traditional diversified funds. However, if the sector underperforms, the fund's returns may be lower.  How to Invest in Sector Funds? If you are looking to invest in sector funds, you can use the EduFund App to get started. Here’s a stepwise guide:  Download the EduFund App and create an investment account by completing your KYC process.  Explore the variety of sector funds that align with educational goals.  Consider factors like the fund's expense ratio, minimum investment amount, and lock-in period.  Select the sector fund that best suits your child's future educational needs and risk tolerance.  Place an SIP or lumpsum order for the selected fund and start investing for your child’s education.   Risks of Investing in Sector Funds Sector funds carry high risk! Sector funds are heavily invested in a specific industry or sector, making them more susceptible to fluctuations in that particular area. If the sector experiences a downturn, the fund's performance can decline significantly.   Before investing in a sector fund, it is essential to conduct thorough research and due diligence to understand the fund's investment strategy, portfolio holdings, and performance history. You can also consult a financial advisor to help you understand whether it’s the right fund for you and how much you should invest.   This is all about sector funds. If you wish to invest in sector funds for your child’s education or for any other long-term financial goals, then consult a financial advisor before starting. You can connect with our experts on the EduFund app before starting an investment goal for your child’s education. 

In the world of investments, timing is crucial. For mutual funds, the "cut-off time" plays a pivotal role in determining the NAV (Net Asset Value) at which your investment will be recorded. In India, The Securities and Exchange Board of India (SEBI) has set rules for mutual fund cut-off times to increase transparency and protect investors.   This blog post will delve into the intricacies of mutual fund cut-off times, their types, and the importance of adhering to them.  What is Mutual Fund Cut-Off Time?  A mutual fund cut-off time is the specific time of the day by which you need to place your investment or withdrawal request to ensure it is processed on the same day and to get the current NAV. This time is set by the mutual fund house in accordance with SEBI and is typically announced in their scheme information document.  Cut-Off Timings for Mutual Fund Transactions  Here are the cut-off timings for mutual fund transactions to understand the concept and relevance of cut-off rules. The cut-off timings help determine the current NAV and are set by SEBI to help AMCs and investors regulate various transactions within mutual funds sector with maximum transparency and ease.   Schemes Transactions Cut-Off Times General Schemes Subscription and Redemption  3:00 PM Liquid Funds and Overnight Funds Subscription and Redemption 1:30 PM and 3:00 PM respectively  Types of Mutual Fund Cut-Off Times  There are generally two types of cut-off times for mutual funds:  General Cut-Off Time  This is the standard cut-off time applicable to most mutual fund schemes. It is typically set between 2 PM and 3 PM on a business day. If your investment or withdrawal request is received before this time, it will be processed on the same day, and the NAV for the day will be applicable.  Liquid and Overnight Funds  Liquid and overnight funds have a distinct cut-off time. These funds are designed for short-term liquidity and typically have a cut-off time closer to the end of the trading day. This allows for same-day settlement of transactions, making them suitable for short-term cash management.  How Cut-Off Time Affects NAV?  The NAV of a mutual fund is calculated based on the market value of its underlying assets at the end of the trading day. If your investment or withdrawal request is received after the cut-off time, it will be processed on the next business day, and the NAV for that day will be applicable. This means that you might miss out on potential gains or incur losses if the market moves significantly between the cut-off time and the end of the day.  What is NAV in Mutual Fund?  The NAV (Net Asset Value) of a mutual fund unit represents its current price. These prices change with every trade and mutual fund NAVs are only updated at the end of each trading day. To calculate NAV, asset management companies use a formula that divides the net assets of the fund (total value of investments minus liabilities) by the total number of units.  Importance of Adhering to Cut-Off Times  Adhering to mutual fund cut-off times is crucial for several reasons:  Accurate NAV Calculation: By placing your transactions before the cut-off time, you ensure that the NAV applicable to your investment or withdrawal is the correct one for the day.  Efficient Processing: Timely transactions help in streamlining the processing of your requests and reducing delays.  Avoiding Inconveniences: Missing the cut-off time can lead to delays in processing your requests, which can be inconvenient if you need the funds urgently.  Cut-Off Time for Different Transactions  The cut-off time may vary slightly for different types of transactions:  Subscription requests, where you are investing in a mutual fund, typically follow the general cut-off time set by the fund house.  Redemption requests, where you are withdrawing your investment, may have a slightly earlier cut-off time to ensure that the funds can be settled on the same day.  Switch requests (transferring funds from one scheme to another) and SIPs (regular, systematic investments) generally follow the general cut-off time. However, there might be specific guidelines for these transactions.  Recent Changes and SEBI Regulations  The Securities and Exchange Board of India (SEBI) has been actively involved in regulating the mutual fund industry. There have been recent changes and guidelines introduced to ensure investor protection and streamline processes. It's essential to stay updated with the latest regulations to understand how they might impact cut-off times and other aspects of mutual fund investing.  Understanding mutual fund cut-off times is crucial for investors to make informed decisions and avoid potential delays or losses. By adhering to these timeframes, you can ensure that your transactions are processed efficiently, and you benefit from the correct NAV for the day. Always refer to the specific scheme information document or consult with your investment advisor for the most accurate and up-to-date cut-off times. 

Did you know that 40% of Indian investors prefer fixed deposits over mutual funds, yet only 15% fully realize the long-term growth potential of mutual funds?  While FDs are MCs with assured returns, mutual funds hence open channels for wealth generation through marked based products.   To introduce you to what to expect in this blog, the basis for understand ing the comparison between mutual funds vs fixed deposit will be grounded on the five critical factors so that you make an informed decision to enable you to grow your wealth in 2024.  1. Returns: Fixed and Market-Linked Growth  In terms of returns, mutual funds offer market-related returns, which implies the value of investment can more than triple over long periods especially in equity mutual funds, which on average give around 8–12% annually. On the other hand, fixed deposits provide a fixed interest rate—at present around 6- 7% which does not change with the market conditions.    Example: Supposing you invested ₹ one lakh in a mutual fund which pays 10% each year, your money could reach up to ₹ one lakh sixty-one thousand in five years. But the same investment if kept in an FD with 6% rate will fetch approximately ₹1,34,000 in the same period.   2. Risk and Return: Fixed Income vs. Stocks Fixed deposits are beneficial because they give a guaranteed income. When you fix a rate, you get back the same return on the option at maturity regardless of fluctuations in the market. Any investors who are very cautious should consider investing in FDs because of this reason. When comparing Mutual Funds vs Fixed Deposits, mutual funds, especially equity funds, have more risk because their value is pegged on market prices. Although their returns are higher, they are associated with risks that are not stable in the market, thus the investors willing to take the risk should invest in these structures.  3. Liquidity In terms of liquidity, Mutual Funds vs Fixed Deposits shows mutual funds stand much higher than that of fixed deposits. Anytime you can encash your units without any charges except a few schemes such as ELSS which has a lock-in period of 3 years. RDs, on the other hand, reduce the effective rate by giving premature withdrawal penalty, which is not usually appreciated by dealers. If there is an issue with liquidity, then mutual funds is a better option.   4. Taxation Tax Efficient Gains over Taxable Interest One more difference between mutual funds and fixed deposits is taxation also. The interest accrued in the fixed deposits is further taxable depending on the tax bracket percentage which ranges between 10% and 30%. In contrast, mutual funds provide even higher tax benefits of returns on the money you invest with them. For instance, the LTCG on mutual fund investments in equities is charged at a flat rate of 10% for all gains higher than ₹ 1 lakh per year; further, most debt funds also benefit from the indexation on the LTCG for long term investments.   5. Investment Goal Alignment: Short-Term vs. Long-Term Mutual Funds vs Fixed Deposits shows that fixed deposits are ideal for most short-term financial targets because they promise pre-set and certain returns. For example, it is common to mention it in the event of an emergency or for saving for a certain project that is within a few years’ time frame given the stability of an indexed mutual fund.  Equity funds in particular are not ideal for short term goals such as holidays or emergencies, therefore they should not be used as an investment product when formulating goals like retirement, college funding or building wealth. Long-term investors benefit from compounding in addition to market gains.  Mutual Funds vs Fixed Deposits Comparison Table Factor Mutual Funds Fixed Deposits Returns Market-linked (8-12%) Fixed (6-7%) Risk Medium to High Low Liquidity High (No penalties on withdrawal) Low (Penalties on early withdrawal) Taxation Tax-efficient (10% LTCG) Interest taxed as per income slab Investment Goal Long-term growth Short-term or guaranteed returns Mutual Funds vs Fixed Deposits How To Choose The Right Investment? They may be used as a source of comparison when the investor is in between two choices of investing in mutual funds and fixed deposits. Finally, if you want an almost risk-free investment coupled with sure shot returns, then fixed deposits are your best bet. But if you don’t mind bearing market risks with an expectation of higher returns then long-term mutual funds will be more beneficial.   Conclusion   While there are times when the interest rates might be low in fixed deposits, you may end up being interested in mutual funds for the long run. Each choice has its positive side, yet it is significant to identify the major characteristics of Mutual Funds vs Fixed Deposits that will serve as a major key to the decision of which form of investment is the most suitable for the future. Do not let your money lie in the form of capital – seize the opportunity in this market to invest in mutual funds. Evaluating Mutual Funds vs Fixed Deposits can be the key to identifying which investment is better suited to your long-term financial goals.  Are you ready to make the right decision for your financial situation? Whether you are planning to put your money in fixed deposits to safely park the money or put it in mutual funds for making your money grow, it is always sensible to prepare. EduFund has the relevant tools and materials to compare Mutual Funds to Fixed Deposits, and to choose the right investment process for you.   Contact EduFund today and begin to map out financial progress for yourself! 

Fixed deposits are amongst India’s most loved investments. India currently has ₹103 trillion saved across 24.23 million deposits. A survey revealed that almost half of the 1.6 million investors chose FDs when they needed money within 3 years with safety.   Fixed deposits are widely loved by Indians because they offer a fixed rate of interest (higher than savings account interest rates), they are reliable, offer liquidity and allow investors to grow their wealth without added fear of risk. But there is a category within fixed deposits that Indians have not yet explored – Corporate Fixed Deposits. Let’s understand India’s best-kept investment secret with this blog!  What are Corporate Fixed Deposits?  Corporate fixed deposits, also known as company fixed deposits, are offered by financial institutions like Non-Banking Financial Corporations (NBFCs) and Housing Finance Companies (HFCs).  Shriram Finance, Bajaj FinServ, Mahindra Finance, LIC Housing Finance and PNB Housing Finance are some prominent companies that offer corporate fixed deposits to Indian investors. They are not issued by commercial banks. Here are some features of corporate fixed deposits:  Higher Returns: You can enjoy higher interest rates compared to bank FDs. Corporate FDs offer over 9% interest rates.  Flexible Interest Payouts: Earn interest at every interval. You can choose monthly, quarterly, annually, or at maturity as your payout option.  Principal and Interest Repayment: Get your principal and accumulated interest at maturity for maximum payout.  Maturity: Invest for a fixed period, ranging from a few months to several years.  Affordable Investment: The minimum investment amount starts at ₹1000 to ₹5000 for most institutions.  Special Offers: Senior citizens and women can earn special returns on these investments. They get an additional 0.25 to 0.50 depending on the institution.   Loan Collateral: Use your fixed deposit as security to access loans when in need and if your provider offers the facility.   Easy Liquidity: Corporate FDs do have a lock-in period, yet they are generally considered liquid investments. You can withdraw your money at any time.  Premature Withdrawal: Early withdrawal might incur a penalty for breaking the lock-in period.  Credit Rating: Corporate FDs rated by companies like CRISIL, ICRA and CARE. The ratings can help you determine a deposit’s quality, performance and financial health.  Corporate Fixed Deposits vs Bank Fixed Deposits   The main difference between corporate and bank fixed deposits are the interest rates, risk factor and provider. Here’s the difference between corporate fixed deposits and bank fixed deposits:  Feature Corporate FDs Bank FDs Issued Authority Non-Banking Financial Corporations and Housing Finance Companies Public and Private Banks  Interest Rates Higher Returns starting at 7-8% Limited Returns starting at 3-6% Risk Factor Moderate Low Tenure Flexible (12 months to 3 years) Flexible (7 days to 10 years) Minimum Deposit  ₹1000 -₹5000 (depending on the provider) Starts at ₹1000 Liquidity Can withdraw with penalties Can withdraw interest-free deposited amount Special Offers Senior citizens & women get addition interest rates for investing Senior citizens & women get addition interest rates for investing Eligibility  Indian investor above the 18 years of age Indian investor above the 18 years of age Safety  Not insured by any company Insured by DICGC up to Rs. 5 lakh per depositor per bank. Tax Liability  Tax Deducted at Source (TDS) at 10% if the interest income exceeds Rs. 40,000 in a financial year.  TDS is deducted irrespective of your income level for corporate FD holders.  Tax Deducted at Source (TDS) at 10% if the interest income exceeds Rs. 40,000 in a financial year.  There is an option to submit Form 15G or 15H to avoid TDS if your total income is below the taxable limit.  Benefits of Investing in Corporate Fixed Deposits Corporate fixed deposits are a valuable addition to your portfolio because of their ability to yield higher interest rates. These deposits offer an edge over bank fixed deposits and allow you to save bigger amounts in the short duration. This is an opportunity to diversify your portfolio and keep up with inflation in terms of long-term goals like your child’s education costs. The biggest benefit of investing in corporate fixed deposits is that the higher returns; you can get 7-8% interest rates on your deposited amount as compared to 3-6% with bank FDs. Let’s examine the benefits closely with this listicle:  Higher Returns: Corporate FDs offer higher interest rates than bank FDs and recurring deposits. These rates start at 7-8% depending on your provider.  Flexible Tenure: Investors can choose how long they wish to stay invested. The tenure is 12 months to 3 years.   Flexible Payout Options: You can choose to withdraw your interest at different intervals, that is, monthly, quarterly, half-yearly, yearly or at maturity.    Special Interest Rates for Women: Women depositors get an additional interest offers yearly for investing in corporate FDs.  Benefits for Senior Citizens: Senior citizens also get concessions for investing in corporate FDs.  Diversification: Corporate FDs help diversify your portfolio and reduce the risk of depending on a single asset class as an investor.  Easy to Invest: Corporate FDs can be opened from the comfort of your home. All you need is your PAN card to start your KYC and investment.  Liquidity: Corporate FDs have a lower lock-in period than Bank FDs and you can enjoy greater liquidity.   Moderate Risk: Corporate FDs offer manageable risks which are backed by reputed rating agencies.  Affordable: The greatest benefit of corporate fixed deposits is that it is open for millions of investors because of its affordability. Minimum investment amount for most corporate FDs is ₹5000.  Disadvantages of Investing in Corporate Fixed Deposits While corporate FDs are considered good investments, they are not devoid of disadvantages. Before you invest your hard-earned money, here are some disadvantages of investing in corporate fixed deposits:  Company Defaults: The biggest risk associated with corporate FDs is the fear of default. There is a chance that the issuing company may default on interest payments or fail to return the principal amount.   Creditworthiness: Every corporate FD is rated by rating agencies. Investors are urged to carefully assess the creditworthiness of the company by examining the credit ratings provided by credit rating agencies before investing.   Limit Liquidity: Corporate FDs have certain terms and conditions around withdrawal. There may be penalties for withdrawing before maturity which can limit your access to your funds.  Factors to Consider Before Investing in Corporate Fixed Deposits Here’s a checklist to help you choose the best corporate fixed deposit for your future financial goals:  Credit Rating of the Provider: The credit rating of an issuer is a crucial indicator of the corporate fixed deposit to repay its depositors. Corporate FDs are rated by CRISIL, ICRA, and CARE. A higher credit rating suggests a lower risk of default. Investing in companies with strong credit ratings minimizes the risk of losing your investment.     Interest Rates and Offers: An important factor behind choosing the right corporate fixed deposit is their interest rates and offers. You can compare the interest rates, find out if there are any special offers for existing clients, women or senior citizens and choose the investment with the highest yield.  Tenure and Payout Facility: Make sure that the tenure offered by corporate FDs align with your goal. Also consider the payout options offered by the facility so that you can withdraw your money without any hassle at the time of need.   Tax Implications: Corporate FDs are taxed in India. Tax Deducted at Source (TDS) at 10% if the interest income exceeds Rs. 40,000 in a financial year. TDS is deducted irrespective of your income level for corporate FD holders.  Minimum investment: Corporate FDs are an affordable and worthy investment for Indians. You can invest a minimum of ₹5000.  How to Invest in Corporate Fixed Deposits? If you are looking to invest in corporate fixed deposits, then all you need is the EduFund App to get started.   Download the App, set up your investment account and complete your KYC process in minutes.   Head over to the fixed deposit table under investments and choose the FD that aligns with your goal and needs.   Choose the investment account, tenure, payout option, select your bank and nominee details.   Read the terms and conditions before depositing your money.  Deposit the money and start your investment journey in under 10 mins!  With the EduFund app, you do not have to pay extra charges to invest in corporate fixed deposits. You can easily monitor your investment progress, withdraw at your convenience, and ensure your family's financial future is secure!  Download the EduFund app to start investing in your child’s future.

Have you heard, Indian parents are willing to risk 64 % of their retirement savings to fund their children’s education abroad? Though the increase in this statistic reflects a favorable trend, it also raises knowledge of safe and credible investment alternatives to support one's future. One such option is the Fixed Deposit (FD), which comes in different types of fixed deposits, is clearly defined, promises fixed returns, and has very low risk factors associated with it.   However, there is a small catch, not all types of fixed deposits are created equal. t’s important because the choice of one affects your financial growth in a big way. This blog will help you understand the 6 types of fixed deposits and the right choices to make for high returns.  What is a Fixed Deposit? Fixed Deposit, also referred to as a term deposit, is a product wherein one invests a certain amount of money for a certain period in exchange for certain percentage interest rate. Essential characteristics of an FD are the promised return on investment which is why they are preferred by the cautious clients.  Advantages  Fixed Deposits Investment as an avenue for generating some income has the following advantages. Guaranteed Returns: Unlike stocks or mutual funds investment or any other form of investment, Fixed Deposits secure definitely an assured return that does not get affected by the market phenomena.   Capital Preservation: The principal amount is fully secure; therefore, it will suit the risks-averse investor perfectly.  Low Risk: FDs are with low risk profile which ensures investors to park their funds during stock market fluctuations.  2. Types of Fixed Deposits It is vital to consider the various types of fixed deposits to be in a position of choosing the right instrument to suit its objective. Now, let’s discuss the 6 various types of Fixed Deposits that exist for Indians. 2.1 Cumulative Fixed Deposit   Cumulative fixed deposits reinvest interest gained, taking advantage of compound interest. This strategy can considerably increase returns over time since the interest earned is added to the principle, which yields more interest.  Such types of Fixed Deposits are suitable for those investors who wish to accumulate money over a long period of time because the interest is compounded and results in massive returns.  Interest Payment: Compounded and paid at maturity.  Best For: Long-term savers looking for wealth accumulation.  2.2 Non-Cumulative Fixed Deposit   The FD scheme provides attractive interest rates for both, cumulative and non cumulative fixed deposit customers. The Non-Cumulative Fixed Deposit pays the interest amount back at prior time periods which can be monthly, half-yearly or yearly. This is one of the popular types of fixed deposits for any person especially in his or her dusk years, that is a retiree who wants a fixed ensure from his or her investment.   Interest Payment: To be disbursed on standard periods.   Best For: Low active investors or those who require for periodic use.   2.3 Flexi Fixed Deposit   A Flexi Fixed Deposit actually takes a little from both the savings account and the fixed deposit. They also have a ‘sweep-in’ facility under which any amount available in your savings account is automatically credits to the FD to fetch better interest rates. This gives cash availability while at the same time guaranteeing that your surplus cash does not stay unutilized.  Interest Payment: Depends on how much has been swept into the FD.   Best For: Investors seeking a combination of flexibility and higher returns, as distinct from stakeholders that seek capital appreciation.   2.4 Standard Fixed Deposit   Standard Fixed Deposit is one of the simplest types of Fixed Deposits where a fixed interest rate is provided for the selected fixed term. They are popular because they are easy to understand and not prone to failure, and therefore, best suitable for newcomers to investing.   Interest Payment: Fixed rate for a set period.   Best For: Banking and non-banking financial institutions requirements seeking safer security investment alternatives.   2.5 Tax-Saving Fixed Deposit   The concept of Tax Saving Fixed Deposit is a perfect meal for those who are much worried about saving tax under Section 80C of income tax regulation. It has a minimum maturity period of five years, and those planning on investing for a limited period, it is preferable since it will help in minimizing taxes as earnings a steady income.   Interest Payment: Cumulative, fixed for a period of 5 years, compounded annually.  Best For: Those in search of saving on taxes.   2.6 Fixed deposit for senior citizen  Especially for customers who are 60 years and above, the Senior Citizen Fixed Deposit has higher interest rates than most ordinary FD prices. This makes it favorable for risk-diversifying retirement income since it guarantees both safety and reasonable income return for the elderly.  Interest Payment: Higher than regular FDs.  Best For: Senior citizens looking for stable income with better returns.  2.7 Corporate Fixed Deposit   Corporate FD is available with the companies and Non-Banking Financial Companies instead of bank. While these FDs may earn one more returns than the others, they possess an extra degree of risk. It must be checked how credible the issuing company is before investing because your investment’s safety depends on that company’s credibility.   Interest Payment: Generally, prime rates are usually higher than bank fixed deposit rates.   Best For: High return chasers who are willing to take more risk in their investment.   3. How To Go About Selecting The Right Fixed Deposit The complexity of a fixed deposit relies on factors such as maturity, flexibility, and the risks you are ready to take. Here are some points to consider:   Investment Goals: Long term or short term do you plan to use the money? A Cumulative FD can be suitable if you’re saving for a long-term goal, in contrast, a Non-Cumulative FD may be most appropriate if you require immediate sources of regular income.   Need for Liquidity: If you require regular to your money, a Flexi FD will provide exactly what you need – the ease of a savings account with more benefits and an even better return. Risk   Risk Tolerance: Most FDs are relatively safer; however, a Corporate FD may be more rewarding but charged with risk.  4. How To Open A Fixed Deposit Account Fixed Deposit account can be opened in a very easy way. Here’s a step-by-step guide:   Select a Bank or Financial Institution: Compare interest rates as well as FD options offered by the banks and NBFC’s.  Choose Your FD Type: Depending on your monetary needs, choice of fixed deposit instrument for investment and liquidity considerate, choose the most appropriate type of fixed deposit.   Submit Required Documentation: Any bank would generally call for identity proof, proof of the address of residence, and a PAN card.   Deposit the Amount: After documentation confirmation, you need to add funds and your FD will be activated and ready to be used. Some of them also provide this account opening online by using the bank’s mobile application as well as the bank’s website. Conclusion  Fixed Deposits are one of the most effective ways of protecting your money and the good thing is that you get assured return. There are many types of Fixed Deposits, including Cumulative FDs, Non-Cumulative FDs, Flexi FDs, and Tax Saving FDs, and it is prudent to choose one based on one's investment risk, goals, and perseverance.  For instance, if you are planning for retirement, banking on regular income, under tax savings drive, or just seeking to build wealth over time; there is a fixed deposit to suit your needs. In defining your financial growth path, it is important to comprehend these 6 powerful types of fixed deposits. Fixed Deposits are a great way to safeguard your financial future. EduFund helps its customers make better financial selections that will help them achieve their goals. Contact EduFund now to learn more about Fixed Deposits and allow us to assist you in selecting the best FD investment for maximum revenue success and financial stability. 

Did you know that more than 95% of Indian families prefer Fixed Deposits (FDs) as a secure investment option? If you are unsure of where to invest and want to keep your money safe while getting a regular passive income, then knowing the structure of monthly interest for ₹1 lakh fixed deposit is very important. FDs are the most preferred amongst the population of the Indian households due to safety and return on maturity which is pre-defined.   In this blog, we will show you how to calculate monthly interest for ₹1 lakh fixed deposit and discuss the advantages of various types of Fixed Deposits.  Interest Payout Options for Fixed Deposits When considering the monthly interest for ₹1 lakh fixed deposit, it's essential to know the two primary types of FDs:  Cumulative Fixed Deposits  On cumulative fixed deposits, the interest earned is taken and added to the initial deposit principal and paid at the end of the maturity period. This makes your earnings to be paid in a way that they are compounded where, your interest earned is taken back to your initial sum and then used to calculate future interest. This type is best suitable for wholesale investors who do not need their money in the short term and who seek high yields at the end of its term.  Non-Cumulative Fixed Deposits  Non-cumulative fixed deposits, meanwhile, pay out interest monthly, quarterly or annually. And if you require a steady supply of income, this avenue can be especially advantageous. Cumulative FDs are more suited for those looking to create a corpus. Non-cumulative FDs suit them who need regular income, such as retirees.  Significance of Monthly Interest Pay-outs Opting for monthly interest for ₹1 lakh fixed deposit can yield several benefits.  Steady Cash Flow- The regular income helps in keeping monthly expenses at bay as you can get a monthly interest payout. This can be good for retirees, or anyone on a fixed income to have monthly interest for ₹1 lakh fixed deposit for financial stability.  Financial Flexibility- The requirement of a more constant flow of cash is beneficial for all-purpose expenditure control. You can use it to pay for recurring expenses such as water bills, rents, or hospital bills.  Consideration of the proposed model for yearly distributions  Though the annual pay-outs look decent, you have to stick with your money until the end of the year before you can touch it. How much practical use are monthly payouts for most investors? They are a form of security with the capacity to broaden or narrow the number of payouts in accordance with the investor’s needs; thus, incorporating the feature of providing funds when required in their structure.  How to Calculate Monthly Interest for ₹1 Lakh Fixed Deposit To determine the monthly interest you can expect from a ₹1 lakh fixed deposit, you can use simple formulas for both simple and compound interest.   Basic Formulas:  Simple Interest (SI):  SI=P×r×t/100 =   Where:   P = ₹1,00,000 (Principal amount)  r = Annual interest rate  t = Time in years  Compound Interest (CI):  A=P(1+rn)nt  Where:  A = Maturity amount  P = ₹1,00,000  r = Annual interest rate  n = Number of compounding periods per year  t= Time in years  Understanding the Calculations: Let’s try and understand with an example using an interest rate of 6% to illustrate how to calculate the monthly interest.  For Simple Interest:  If you invest ₹1 lakh at an interest rate of 6% for one year, your monthly interest for ₹1 lakh fixed deposit would be 500 using Simple Interest.   The annual interest would be ₹6,000.  For Compound Interest:  If you invest ₹1 lakh at an interest rate of 6% compounded monthly, the total maturity amount after one year will be slightly higher due to compounding.  After using the formula, you would find that the monthly interest is approximately ₹513.98. Using Our FD Calculator to Estimate Monthly Interest At EduFund, we offer an FD calculator that simplifies this process. With just a few inputs—your deposit amount, interest rate, and tenure—you can get an accurate estimate of your monthly interest.  Benefits of Using Our FD Calculator: Quick and Accurate: This service delivers accurate results in terms of seconds within zero human interference.   Comparative Analysis: Subscribe and easily compare how different interest rates can affect your monthly payouts.   To make a wise decision regarding which fixed deposit plan is closest to your requirements you need to understand these calculations and apply FD calculator.   Factors Affecting Monthly Interest Rates: Several factors determine the monthly interest for ₹1 lakh fixed deposit:   Bank Policies: The interest rates on loans can vary from one bank to another due to established regulations and competition. This means that one should compare our rates of the various banks to select the best sector that will suit him/her.   Tenure Amount: Fixed deposits as a type of investment are typically reliant on the amount to be invested and the duration for which it will be invested; this is because the length of the fixed deposit and the amount of money deposited substantially determine the interest rates to be given. Usually, duration of the account and the amount of deposit determines the interest rate that a particular account will first be charged or offered.  Market Conditions Economic factors, such as inflation and changes in monetary policy, can also impact the interest rates offered by banks. Keeping an eye on these factors can help you make informed investment decisions. Real-Life Scenarios Understanding how monthly interest for ₹1 lakh fixed deposit can impact personal finances is crucial:   Scenario 1: Retirement Planning An individual who invested in a non-cumulative FD with monthly payout of ₹500 can manage daily expenses from this income without touching the principle, which gives a retiree financial security.   Scenario 2: Emergency Fund An individual saving for emergencies would go for monthly interest payouts for example in case of an emergency one will not need to break the FD and thus have access to that money.   Conclusion  Understanding the monthly interest for ₹1 lakh fixed deposit is important for effective financial planning. By calculating your potential earnings and exploring various Fixed Deposit options, you can ensure a steady income stream that aligns with your financial goals.   Take advantage of our FD calculator at EduFund to make informed decisions about your fixed deposit investments today! With the right information and tools, you can maximize your returns and achieve financial security.