Foreign exchange or forex is the global marketplace for all the world’s currencies. It is the biggest financial market worldwide. Forex trading has many benefits that can impact your financial future. Every forex trader will tell you a different reason why it’s worth a try. There is also lots of information about this particular market out there. Understanding the impact it can have on your finances will help you make a more informed decision. Here are the financial benefits of forex trading.

High Liquidity
The Forex market is the most liquid in the world. The ease in which something can be sold or bought is referred to as liquidity in trading. There are a lot of traders looking to sell or buy at any time with forex. Over 5 trillion dollars’ worth of currencies is traded there every day by companies, banks, and individual traders. With the right prop trading firms, your chances of making trades and profits will seriously increase. If you are trading with major currency pairs, your assets will be exchanged with a variance to their values. The slight variance means little profit, but you can increase the earnings because of the high liquidity. It also allows you to trade with minimal risks.

Convenient Market Hours
All the trading transactions in forex are done through computer networks; there is no one-on-one centralized exchange. For that reason, one can trade at any time across all the time zones. The trading hours add to the financial advantages of forex trading. As long as there is one open market somewhere in the world, you can make a trade. However, on weekends the market is closed to retail traders. But banks and other related institutions continue operations on weekends. You can trade on weekends, but if you don’t want to expose yourself to gapping risks, close your operations on Friday too. The market has incredible hours and doesn’t require a lot of capital to get started. This means you can start with small amounts and grow from there; the convenient hours will boost your finances. All the trading is done over the counter (OTC), and since forex is a global market, you won’t lack someone to trade with.

Leverage Makes Your Money Go Further
You can benefit from leverage in forex, which is probably the most appealing advantage. Leverage is using borrowed funds to increase financial trading position. It’s offered mainly by brokers to give traders a chance to go beyond their cash limitations. That means you can increase your return on the investment. However, you should know that leverage can also amplify losses. So before you use it, you have to consider all the possibilities. It’s the only way to avoid losing your money in forex. When used correctly, leverage can make you impressive profits. Stop-loss orders are essential when you are using leverage. They will protect your trades from any unexpected market shifts. Your losses will not accumulate and limit your financial goals; instead, you will be able to trade and improve your trading position. You can leverage large amounts of money and make significant trades that you could not have managed with your finances. It’s just like any business opportunity; you have to weigh the risk and reward and how it will impact your finances.

Greater Volatility
Very many things influence the foreign exchange market. Some of the things that affect the market are trade deals, the political and economic stability of different countries. Natural disasters and the global economy can also influence it. What this means for you as a forex trader is, there can be plenty of opportunities to make massive profits. Significant shifts in currency values can happen at any time. But as much as this is an advantage, you have to recognize the changes can occur in any direction. If they are not in your favor, you may incur losses. Some major currency pairs like the Canadian Dollar/Japanese Yen and Australian Dollar/US Dollar are subject to high volatility. So if you want to take advantage of the greater volatility in the forex market, you need a well-tailored strategy. If you detect any potential risk, you have to ensure your assets are protected. The market can make you lots of profits if you learn how to navigate the risks.

Conclusion
If you take all these financial benefits into account, the forex market can change your financial future for the better. But as you can see, there are some potential risks. Ensure you use leverage sensibly and be wary of shifts in currency values. If you treat forex trading as an investment, the rewards will be immense.

The procedure of availing Gold loan

The method of obtaining a gold loan is quick. In times of need, a Dena Bank Gold Loan can be valuable. The procedure of availing Gold loans are

Application process
Document verification or Documentation
Purity Test of Gold
Loan Approval
Application protocol

The application is a process where one has to appeal to the respective authority for granting certain things. The application for a Gold loan can be completed in the bank in-person visit or digitally by visiting Dena Bank’s official website or app. An application contains some personal information along with gold information and other details.

Documentation

This is the most crucial process for acquiring loam. A simple background check is conducted to avoid fraud. KYC documents, along with two passport-sized photographs, are asked to be submitted.

One can submit any one of the Aadhar Card, Driving licenses, Voter IDs, PAN Card as Identity proof. Aadhar card, Ration card, passport, utility bills, or renter agreement for people residing on rent can be submitted as Address proof or residence proof.

The Borrower has to visit the Bank for this procedure. A bank representative will assess your KYC Documents.

Purity test of Gold

Bank authorities do the Purity test of Gold on the premises of the Bank. The purity test of Gold is an evaluation of Gold for its composition, weight, and impurities present in it. The loan amount is sanctioned based on the evaluated gold rate per gram. A purity test is a mandatory test.

Loan Approval

After completing all the procedures and meeting the Eligibility criteria, a Gold loan is sanctioned. A Sanction letter is issued in the name of the Borrower. A sanction letter contains details about the lending bank, loan scheme, gold rate per gram, interest rate, processing fee, prepayment options, tenure period, repayment options, etc., along with the Dena Bank’s terms and conditions. After depositing the evaluated Gold in the Bank, the loan amount is reflected in the Borrower’s account quickly.

Safety of Gold

The Gold deposited in the Bank is placed in the bag and marked by a unique application no. This is placed in the lockers present in the Bank. Lockers are present inside the Bank’s vault. It is safely guarded and kept under surveillance. Bank authorities only enter this room. Each locker has its specific keys. The keys are with one of the Bank authorities.

Repayment options

These choices are given for the fulfillment of the Debt. The loan amount has to be paid over the tenure period chosen by the Borrower. If the Borrower misses repaying an installment, he/she can renew or extend their tenure period, but this has to be done before the expiry of the tenure period.

The three options given for repayments are Bullet repayment scheme, Overdraft repayment scheme, and EMI option.

Bullet Payment Scheme
One has to repay towards month-end, and the principal amount is due at the end of tenure.

Overdraft Scheme
This scheme can be available for colossal loan amounts, and the interest is only charged on the amount disbursed by the Borrower.

Equated Monthly Instalments (EMI)
In EMI, an indicated amount by the Borrower gets deducted towards the end of the month. EMI can be calculated using EMI Calculator. Choices have been given to the Borrower for making a suitable EMI choice.

Standing Instruction (SI)- It is For Dena Bank account holders. The repayments are made towards month-end on the amount indicated by the borrowers.
Electronic Clearing Service (ECS)- It is for Non-Dena Bank account holders to digitally transfer the amount.
Post-Dated Checks (PDC)- to enable non-Dena Bank accounts to submit post-dated EMI cheques have to be submitted.

What is a Voluntary Provident Fund?

VPF is an employee savings scheme that comes under the traditional provident fund savings scheme. However, under the VPF scheme, the contributor can decide the fixed amount for a monthly contribution. This contribution is not part of the 12% contribution by an employee towards his EPF.

Advantages

Safe option to invest: Since the Indian Government operates the scheme, the risk involved is relatively less as compared to other various schemes of investing; also it is easier and safer to invest via a VPF account.
High rate of interest: Under the VPF scheme, the VPF interest rate is usually around 8.50% p.a. for FY 21-22.
Easy to open account: It is simple and easy to open a VPF account. Employees can open a VPF account once by submitting the registration form. The current EPF account shall also act as the VPF account.
Simple transfer process: If employees change their jobs, the process of transferring from the old company account to a new one is also quite simple.
Conclusion:

The VPF account is considered one of the best options to invest for a salaried person. Employees are eligible for tax benefits of up to Rs.1.5 lakh under Section 80C of the income Tax Act, 1961. The interest that is generated from these contributions is also generally exempt from tax. However, in case of VPF interest earned on employee contribution above Rs.2.5lakh p.a over Rs.1.75 Lakh basic salary., will be taxable. Investments towards a VPF account are viable because of its efficient rate of interest and tax benefits.

What is the meaning of a Debt Mutual Fund?

A debt mutual fund is a mutual fund scheme that invests in fixed income instruments, such as Government or Corporate Bonds, corporate debt securities, and money market instruments etc. Debt funds are also referred to as Fixed Income Funds or Bond Fund.

What are the four Advantages of a Debt Mutual Fund?

High liquidity: Debt mutual fund schemes, especially liquid funds, typically have a high degree of liquidity and investors may redeem their investments faster than others.
Tax efficiency: Debt Mutual fund schemes do have long and short-term capital gains tax. However, the benefit of indexation increases after three years of holding and succeeding years.
Flexibility: Using an STP, the debt mutual fund units can be easily transferred periodically to an equity scheme or any other scheme as per investor’s choice.
Diversification of investment: While choosing debt mutual funds, ensure to verify the portfolio. Generally, it is safer to invest in Debt Mutual Fund that invest Government securities and Government-issued papers, thereby reducing portfolio risk.
Conclusion

Firstly, Debt Mutual fund schemes help reduces overall portfolio risk as they help in diversification. When equity markets fall, debt investments cushion downside risks and may bring stability to returns.

Secondly, Debt Mutual funds are a good option for your short-term investment planning. The accumulated cash could be used for short-term goals like vacations, buying a gift, etc.

Are you looking for the best exchange in India to buy Ripple (XRP)? Then, you have landed at the right place. By using this guide, you can easily buy ripple with INR on Koinbazar. Before we get into this, let’s see an overview of Ripple.

Koinbazar has recently launched the cryptocurrency exchange mobile app for both Android and iOS platforms. With this app, you can buy, sell, and trade your favorite cryptocurrencies instantly. Traders who download and sign in to the app will get FREE 10,000 SHIBA INU tokens instantly gets deposited into your koinbazar account.

What is Ripple (XRP)?

Ripple Labs is an open-source protocol for the development of the Ripple Protocol, including the XRP Leader and RippleNet, a series of payment technologies targeted at institutional use (banks, non-financial institutions, and digital currency exchanges).

Originally called OpenCoin, the business we know today was branded in 2015 as Ripple.

Created in 2012, Ripple Labs is a private corporation, located in San Francisco, California. So you can’t buy anywhere from your shop.

It should be noted that investing in XRP does not mean investing in Ripple Labs, but in the software, they have made.

Ripple Labs now hires more than 500 persons, has nine offices worldwide and (on average) reports an increase of 300 percent year-over-year.

Ripple also sells an XRP app package named RippleX tailored for developers and companies. The platform contains two protocols to be built independently from XRP for the interactions between XRP LEDGER and PayID and Interledger.

People also exchange Ripple and XRP, creating more chaos around the project.

XRP is a cryptocurrency that Ripple Labs, a US corporation, has made, produced, and partly controlled. XRP is one of the many Ripple Labs products that have been designed to increase cross-border payment performance, in particular in the banking sector.

It’s the native digital currency on the XRP Ledger — an open-source, permission-free and distributed directory with 3 to 5 seconds for settling transactions.

Without an intermediary, XRP can be explicitly sent as a handy tool to easily and effectively bridge two currencies. XRP’s key objective is to be a monetary trade mediator.

How do investors buy Ripple in India?

Like other major cryptocurrencies, XRP is also available on several exchanges like Koinbazar. Do you want to buy Ripple in India with INR? Then Koinbazar would be one of the best crypto exchange platforms where you can buy, sell, and exchange Ripple safe. Koinbazar offers an instant INR deposit option that helps traders to deposit funds instantly and start trading comfier.

How to buy Ripple in India from Koinbazar?

Do you want to buy XRP with INR? Follow the below-mentioned steps,

Step 1:

Visit Koinbazar.

Step 2:

If you are already a registered user, choose ‘SIGN IN’ at the top right corner of the website to log into your account. If you are a new user, click ‘SIGN UP’ in the top-right corner to register your account.

Step 3:

After you sign into the account, choose “MY ACCOUNT” at the top right corner of the page. Update the requested details to build your profile.

Step 4:

Choose KYC verification under “MY ACCOUNT”.

Step 5:

Update the KYC authentication section requested details and identity certificates should be updated and then click ‘SAVE’.

Step 6:

Choose ‘BANK DETAILS’ and update your required information. Then, click “SUBMIT”. Once the admin approved, you will be able to deposit and withdraw your funds from your Koinbazar wallet.

Step 7:

Once the admin approved your bank details, Choose “Funds” from the top right corner of the menu and select “Deposit”.

Step 8:

Choose the “Fiat” option from the deposit. Your desired funds are to be deposited in the form of fiat currency.

Step 9:

Then choose the ‘Manual Deposit’ option and update the required information and also instant INR deposit options available. Your transferred amount will be credited to your Koinbazar wallet after being reviewed by the admin.

Step 10:

Once your funds get deposited, go to the home page and select ‘TRADE’.

Step 11:

On the trading page, choose the “INR” market and select XRP/INR pair to buy Ripple instantly at the lowest fee.

Step 12:

At the bottom left of the page, start trading by setting the order type and order value you would like to buy.

Understanding Gold Loans
Gold loans are secured loans where borrowers pledge their gold jewelry or coins as collateral to obtain funds. The loan amount typically depends on the value of the gold. These loans are preferred due to their relatively low interest rates and quick processing times compared to unsecured loans. They can be used for various purposes including medical emergencies, agricultural activities, education, or even personal expenses.

Key Factors Influencing Gold Loan Rates
Several factors affect the interest rates of gold loans:

Loan to Value (LTV) Ratio: Higher LTV ratios, where a higher percentage of the gold’s value is given as the loan amount, generally attract higher interest rates.
Relationship with the Lender: Existing customers might receive more favorable rates.
Loan Amount and Tenure: Higher loan amounts can sometimes attract lower interest rates. The duration of the loan also plays a role.
Purpose of the Loan: Loans taken for agricultural purposes may have lower rates due to subsidies or government schemes.
Special Offers and Seasonal Schemes
Banks and financial institutions often run promotional offers and seasonal schemes which can significantly reduce costs. For instance, during festive seasons, lenders might offer reduced rates or waive off processing fees. It’s crucial to stay updated with current offers from various banks to capitalize on these opportunities.

Comparing Offers
When considering a gold loan, it’s advisable to compare offers from multiple lenders. Factors to consider include:

Interest rates
Processing fees
Loan tenure flexibility
Prepayment charges
Websites like DCB Bank Gold Loan provide detailed comparisons of different gold loan offers, which can be invaluable in making an informed decision.

Gold Loan Interest Rate Calculators
To estimate the cost of a gold loan, many lenders provide online calculators. These tools require inputs like the amount of loan, tenure, and expected interest rate to provide an estimated repayment schedule. Interest on gold loans can be calculated using two main methods:

Flat Rate Method: Interest is calculated on the entire principal amount throughout the tenure.
Reducing Balance Method: Interest is calculated only on the outstanding loan amount, which decreases as EMIs are paid.
Statistical Insights
According to a report by the World Gold Council, the demand for gold loans has seen an uptick as individuals seek quick liquidity solutions. The Reserve Bank of India (RBI) has also adjusted LTV ratios for gold loans to up to 90% to provide additional liquidity during financial stress periods, reflecting the growing reliance on gold as a financial asset.

Conclusion
Gold loans are a practical option for immediate financial needs, offering lower interest rates and quick disbursal. By understanding the factors that affect gold loan rates and using tools like interest rate calculators, borrowers can secure the best possible deals. Always stay informed about the latest offers and maintain a good relationship with your bank to leverage the most favorable terms.

Debt Mutual Funds significantly invest the money in fixed-income securities like government securities, debentures, corporate bonds and other money-market instruments. These products carry the low risk compared to Equity. They have low volatility and have potential to generate modest returns over time.

Tax on Debt Funds

Like other Funds, Debt Funds are also subject to capital gains tax, Short-Term Capital Gains Tax (STCG) & Long-term Capital Gains Tax (LTCG). If Debt funds are held for less than 3 years, then STCG is levied and if more than 3 years then LTCG is levied. Presently, the LTCG levied is 20% with indexation and STCG is taxed as per the investor’s tax slab. If the Investor’s Income Tax Slab is 20%, then the same will be levied on the Debt Funds gains in the case of STCG.

Indexation Benefits

Indexation is a tool that is applicable to long-term investments. It helps an investor to adjust inflation while gauging the returns of the invested amount.

As inflation is gradually rising, what’s worth Rs. 1000 could be worth Rs.1100 sooner in the near future. Thus inflation is reducing the purchasing power of our money. The same amount will be enabling the investor to buy lesser and lesser goods.

So how does indexation help us? To understand that, let us first understand what capital gains is. Capital gains are nothing but the increase in the value of an investment over a specific period of time. If a NAV of a fund was Rs. 10 when you invested and is now Rs.15 while you plan to redeem it, that difference of Rs.5 is called capital gains. So we are yielding a capital gain of Rs.5unit when we redeem.

In the case of debt funds, we arrive at long term capital gains after indexing the purchase price of the investment. When subjected to indexation, it lowers the long-term capital gains tax, which brings down your taxable income. Indexation is the reason why debt funds are looked upon as an excellent fixed-income investment option.

How does Indexation Work?

The rate used for inflation in indexation is obtained from the Government’s Cost Inflation Index (CII). The Central Government determines the values of the index and is updated on the Income Tax Departments Website. The data is available from 19981 onwards.

Let us consider the below example to understand how indexation works:

Imagine you invested Rs.1,00,000 in May 2015 in a debt fund of your choice. Today you choose to redeem your money. So you have gained Rs. 1,50,000 on your investment. Since your holding period was beyond 3 years you will not need to be required to pay tax on the entire amount of Rs.1.5 lakhs. You will need to arrive at the indexed cost by using the formula:

ICoA = Original cost of acquisition * (CII of the year of sale/CII of year of purchase)

So the indexed cost will be 1,00,000 (240/301) = 79,734.

So our Capital Gains will now be 1,50,000-79,734 = 70,266.

Using indexation, we have managed to reduce the income subjected to tax, which would be Rs. 14,053.2.

The benefit of indexation works best when your holding period is longer. For a holding period of 5 years, on average, the long-term capital gains tax on debt funds can come down efficiently. Thus indexation helps us to save tax on Long-Term Capital Gains and increases our earnings.

We are a society of debtors. No matter how hard we try, it always seems like we owe more money than we make. This is especially true with families in North America. Household debt as a percentage of disposable income increased by over 170% in 2020. Part of this is due to the coronavirus. However, many families were already in debt before the pandemic took hold. Now, they are looking for a solution to right their ships. A possible way to return things to normal is a debt consolidation program. Here are some things your family should know about this form of payment option.

It Combines Debts Into One Payment
The biggest issue families have when controlling debt is to get it down to a manageable amount. With added late fees and interest, it feels like the total added to the principle is minuscule. A debt consolidation program works similarly to a standard loan for a home or car. You’re provided with an amount that closes the accounts of creditors, utilities, and other vendors. In exchange, you pay down the loan.

Firms Work To Negotiate Lower Payments
While debt consolidation firms want to help you, they also try to lower the amount of the loan provided. They do this through a similar exercise as a bankruptcy trustee. They negotiate for a lower pay-off amount. This normally works with loans from other banks, credit card companies, and debt collectors. In negotiating with these organizations, the consolidation firm minimizes its liability. Furthermore, it allows you to quickly pay down the loan.

It Is Not A Form Of Bankruptcy
A debt consolidation program is not a form of personal bankruptcy. In this practice, a trustee is brought on to negotiate with creditors on amounts owed. While bankruptcy features an amalgamation payment similar to consolidation, the effects it has on your credit are more harmful. For example, debt consolidation in Canada is in the form of a loan. Firms support these programs to help families reduce their debt difficulties.

Payment Plans Are Flexible
Though you still make monthly installments on a debt consolidation loan, the time it takes to close it out is flexible. Firms work with you to establish a reasonable payment amount and the months or years you feel it takes to finish things up. There’s a caveat to this. The greater the loan’s length the more interest your family ends up paying. Granted, the value applied to the principal increases over time. However, it’s more incremental for a 60-month loan than for a two-year plan.

It Doesn’t Cover All Debt
Most unsecured debts can be included in a consolidation program. This is in the form of credit cards, mortgages, or auto loans. Yet, some things can’t be added to a debt consolidation program. For example, student loans. Though these are unsecured they tend to be held by a government entity. Thus, consolidation takes place within that institution. Unpaid taxes are also not permitted for inclusion in a debt consolidation program.

Not all Debt Consolidation Programs are the Same
Most debt consolidators want to help you get past the burden of owning money. Hence, they work to get the best value for a program. Nevertheless, not every firm is so giving. Though they say your payments are considerably less than the total of your individual transactions, that statement might only refer to the principal. The exorbitant fees and interest rates they apply make your monthly installments even higher. This is why you must perform a thorough investigation of debt consolidation organizations before a contract signing.

Debt Consolidation is One Step Toward Financial Freedom
Here’s the most important thing to know about debt consolidation programs. They only work well if coordinated with other steps toward financial freedom. To put it another way, you remain in debt if your family continues the same practices.

Conclusion
So, as you pay down your consolidation loan you must learn how to work well with money. This means reducing your expenses, creating a budget, and eliminating the use of credit cards. These changes help get out of the financial basement and into a world of financial security. In the end, don’t let the positives of a debt consolidation program falter.

Accounting services for self-employed are becoming increasingly popular in the UK. The number of businesses who are now setting up an independent or small company is on the rise. This is partly due to the fact that tax laws have been changed and the laws now state that any income earned by a company is taxable under UK tax laws. This has led many new start-ups to choose to set up their own company as they don’t want to be tied into any tax schemes set out by the authorities.

Self-Employed Firms
There are many accounting services for self-employed firms available in London. Many accountants have a firm set up in London so that they can take on new clients. Many firms have multiple locations in London, meaning that they can cater for all the needs of their clients. You may need a tax advisor in London, if you have earned a huge amount of money from your business.

Tax Advisor
A tax advisor will help you to ensure that you pay the right amount of tax. This is a service that you shouldn’t just take on board when it comes to hiring an accountant. This is a very specialist area and one that only highly experienced professionals should engage in. You need to ask plenty of questions about the accountant’s background and experience. You also need to ask how much experience they have with these types of services and what professional associations they are linked to.

Self-Employed Professionals
It is possible to get accounting services for self-employed professionals for just a few pounds. However, many accountants will charge higher rates for their services. If you want to be sure that you get an accountant who is reliable and experienced, then you might want to consider paying a bit more to make sure that the person managing your accounts is someone you trust.

You can also get accounting services for self-employed professionals at a lower rate than that of a regular accountant. This is because there are some tax advisors who offer their services for cheaper prices than others. The reason for this is because they are more likely to deal with less complicated tax situations. In general, it costs the accountant less money to provide their services because they do not have to buy office furniture or pay for expensive staff. You can usually get a better deal if you go with a tax advisor who is also an accountant.

Accounting Services For Self-Employed Individuals
When you are looking into accounting services for self-employed individuals, it pays to ask about what services are offered for a fee and how much they will cost overall. You also need to find out how long it will take for the advisor to settle any tax bills that you owe. Most self-employed people will not have their taxes settled right away, but many tax advisors will offer a settlement within a few weeks of your tax filing date. There may also be ways to get a refund back from the IRS if you owe them money. However, you should understand that these refunds will generally have a lower amount than the total amount of money you owe.

Finding Accounting Service
Finding accounting services for self-employed individuals can often be easier than you think. If you have any questions, you can call the local office of the CPA or tax professional that you have used in the past. They will be able to tell you what you can expect, what you can look forward to, and what the IRS requires from you. By talking to them, you will be able to get an idea of what to expect from the experience.

The accounting world can often be quite confusing for those who are just getting started. However, if you take the time to educate yourself and talk to the professionals that are available, it can make a big difference. Accounting services for self-employed individuals should not be something that is overlooked. Take the time to consider what they can do for you will likely feel more comfortable with them than you did before.

Planning for your child’s higher education corpus may look quite daunting at the beginning to gather such a large amount of funds considering the increasing inflation rate. Still, it is achievable, provided you are planning early and start your investments with SIP i.e. systematic investment plan in a mutual fund. Plan your financial journey according to your child’s future needs to achieve your desired goals.

Hypothetical example is given below -

Ms. Varma is a single mother of a child who will graduate in 10 Years. Ms. Varma wants her son to pursue Law. Let’s assume today’s cost is Rs 3 lakh; and now we need to calculate an estimated cost for the same in next 10 years based on assumed at 6 % p.a. inflation rate. So the cost of the education in the next 10 years is Rs. 5.37 lakhs. This goal can easily be met through SIP provided a regular investment of Rs.2334 is made on a monthly basis assuming the rate of return is 12 % p.a. (Please note this is based on the SIP and inflation calculator, however, it is not a guaranteed rate of returns)

Thus, it is most essential to plan and prepare to ensure your child gets access to the best of colleges. If you plan early, you may not have to compromise on your child’s future

Below is the step-by-step guide given to plan your SIP journey that helps build your child’s aspirations

Step 1: Decide Your Time Horizon

As stated in the earlier example, time is a crucial factor to determining your goals. Estimate the number of years left for your child’s graduation. The longer the time horizon, the better it is for you to plan and invest. Start early, invest wisely.

Step 2: Estimate the Cost of Education

You need to decide whether he or she wants a global exposure for education or a nearby well-renowned institute for their child. Also, which area of education do you want your child to graduate in is another important parameter to check. Depending on such points, you should be able to figure out an estimated cost of education. While keeping this in mind, it is thus important to determine future cost of school/ college.

Step 3: Assess Your Existing Assets and Liabilities

Make a list of all your assets and liabilities to help you assess your financial health and you can choose to plan better for your child‘s future goals. In a typical case, depending on your age, income and other significant criteria, you may need to prioritize your child’s education loan over the cost of a dream car or perhaps choose to delay your retirement planning depending on assessing your expenses and income (add a full stop)

Step 4: Estimate for the Amount to Be Saved

After calculating and assessing your assets and liabilities, the next step is to estimate our savings. Depending on that, you can choose your investment corpus. Decide how much you need to save now or whether a monthly contribution is required to achieve this goal on or before time. The easier way is to put aside some money towards each goal in a systematic manner. You can either opt for the Systematic Investment Plan in mutual funds or choose any other mode of investment options. An SIP is a preferred way to manage your investments. A disciplined and a planned approach will always make your journey easy.

Step 5: Choose your investment plan

Choose judiciously and invest wisely should always be your mantra. Asset allocation strategy is a boon to your investment journey. You may need to invest your hard-earned money in different investment avenues that depend on your risk appetite that aligns with your goals. Make sure you use the diversification strategy and continue to rebalance your portfolio at timely intervals. An SIP in mutual fund helps you do just that. You can choose from various assets such as equity, debt, gold, hybrid, etc. Ensure you analyze all the risks involved before investing, for example: Market risk, changes in Government policies, financial or economic crisis, etc.

Step 6: Prepare Yourself For The Unexpected

Make sure you are prepared for the additional costs that may or may not be included in the education cost, for example – tuition fees, hostel stay, books and stationery, etc. Remember to add them while preparing the cost analysis. None the least, start your investments today, Don’t delay. The earlier, the better.

Thus, with proper planning you are able to envision your child’s education expenses and help him or her achieve their dreams.

Every investor, at some point in time, makes a mistake while evaluating investment decisions. There are five valuable lessons learned in the investing arena from these mistakes. Let’s understand them in detail.

Mutual Fund returns over the past year: This is the most popular form of comparing two mutual funds. Comparing mutual fund returns in India over the last year may be the starting point of assessing mutual funds. However, you should look beyond 1 year to make a realistic expectation of the mutual fund returns.
Investing without a financial goal: Your investment decision should not be based upon recommendations of friends and a good financial advisor is a must. For example, suppose you are planning to invest for your children’s education and you have 10 years, you can consider investing a diversified equity fund portfolio instead of parking your money in a debt fund or a fixed deposit. Once you have a financial goal, you can use a mutual fund return calculator that helps you to get an idea of how to calculate mutual fund returns with time.
Timing the market: Another mistake that mutual fund investors make is hasty decisions to redeem or sell their investments due to market uncertainty. Do not invest with the intention to reap short-term profits. You also need to understand that mutual fund returns are taxable. On redemption, the capital gains are taxed as per the holding period. For equity mutual funds, short-term capital gains are taxed at 15% while long-term capital gains are at 10% for gains exceeding Rs. 1 lakh. Taking a hasty decision can be detrimental to your wealth creation journey.
Mutual fund returns comparison without factoring your risk appetite: You need to assess whether, for every risk you take, you are getting commensurate performance/returns? Solely evaluating mutual fund returns won’t suffice, you need to assess the risk-adjusted return using performance indicators such as standard deviation and Sharpe Ratio.
Over-diversification: Diversification is a good thing, but over-diversification is not. For the sake of earning additional mutual fund returns, do not resort to investing in too many mutual funds.