In an era plagued by grave economic challenges, finding a safe and secure financial instrument to invest in is indeed a tough job, especially when the financial objective of the investors is to fund their child’s education. This is why most people tend to either rely on their savings or prefer to approach a lending institution for availing a loan product. In both cases, they are left with little money to adequately plan for their child’s future.

Thus, it comes as no surprise that mutual funds have steadily begun to gain the stature of being a reliable investment destination. If you are willing to consider this option, here is a list of the top performing mutual funds which will help you build a good corpus over time:

1. ICICI Prudential Child Care Fund

Launched in 2001, this is a hybrid fund with assets under management (AUM) to the tune of Rs. 627 crores. The basic objective of this fund is to enable long-term capital appreciation by making prudent investments in equity and debt instruments. It has a diverse portfolio, wherein assets are primarily allocated to the sectors of healthcare and finance. The fund has generated an average annual return of 16.5% since its inception. It charges no exit load for a lock-in period of 5 years or until your child comes of age.

2. SBI Magnum Children’s Benefit Fund

Previously known as the SBI children’s benefit plan, this scheme aims to generate income consistently by investing in moderately risky instruments like money-market and debt funds. Although its AUM is merely Rs. 62 crores, its diversification into sectors as diverse as FMCG, construction, engineering and textiles gives it an edge over others. In the last 3 years, the fund has yielded annual returns at a rate of 14.5%.

3. UTI Children Career Fund

As the name itself suggests, this multi-cap fund with an AUM of about Rs. 275 crore aims to help investors earn money in the long-term so that they do not have to worry about the education of their children. It invests in equity instruments only and has largely allocated its assets to the financial and energy sectors. The average returns of this fund since 2004 have been stationed at around 9.7%.

4. Aditya Birla Sunlife Equity Fund

Mostly invested in equities, the Aditya Birla Sunlife equity fund has an AUM that is greater than Rs. 8,600 crores. Its portfolio principally consists of reliable names like HDFC, ICICI, and Maruti Suzuki. In the past three years, the fund has generated steady returns at a rate of 14.3%. Owing to its sterling performance and the simple fact that it allows investments as small as Rs. 1,000 to be made, this fund can be considered by parents who have children below 10 years of age.

5. Mirae Asset Emerging Bluechip Fund

The Mirae Asset emerging Bluechip fund contains stocks from the financial, FMCG, and textile domain. This form of diversification ensures that the fund continues to generate average annual returns as high as 17%. This fund is essentially a systematic investment plan which requires an investment of Rs. 5,000 in the initial period and Rs. 1,000 for every month thereafter. As a parent, you can apply for either the growth plan or the dividend plan. Though they have slightly different NAVs, they both reap equal rewards.

6. Reliance Top 200 Fund

This fund is basically a large-cap retail plan which requires parents to begin their investment period with a sum as little as Rs. 100. Having an AUM of approximately Rs. 11,000 crores, it is invested in the equities of banks, pharmaceutical companies, and software products. In the last 5 years, the fund has generated about 18% returns. This fund is suitable for parents with children aged between 10 and 18 as it provides stable yields through a long-time interval.

7. ICICI Prudential Balanced Fund

A variant of the ICICI childcare scheme, this fund is primarily invested in the equity and debt instruments of companies like Hindustan Unilever and banks like the State Bank of India. The debt part of the fund makes sure that it continues to earn long-term returns, which in the last five years have stayed in the range of 10% to 12%. However, even for parents, this fund charges an exit load of 1% if it is redeemed within a period of 365 days.

8. Aditya Birla Sunlife Front-line Fund

Like its counterpart, this fund is fundamentally invested in equities. Nonetheless, it also permits investors to build a sustainable corpus through a systematic investment plan. Its portfolio mostly consists of stocks from the sectors of finance, construction, and engineering. The returns this fund has generated over the last 5 years hover around 12.6%. When accumulated, the gains made from this scheme can provide a sufficient amount of money to fund your child’s education.

9. Canara Robeco Emerging Equities

Launched in 2005, the Canara Robeco emerging equities fund was conceived to be of a mid-cap size. Since then, it has provided an average annual return of 18.5%. It has a varied portfolio which contains stocks from well-performing companies like Reliance Industries, Bajaj Finserv, ITC etc. However, instead of the growth plan, it would be wise for parents to invest in its dividend section.

10. Franklin India Income Opportunities Fund

Designed as an open-ended scheme, the Franklin India income opportunities fund is considered to be one of the best mutual funds to invest in while planning for your child’s future. It has had a consistent performance which ranges between 8%-10% and has built its portfolio with stocks from insurance companies and government entities. With an AUM of over Rs. 3,000 crores, this fund assures lasting monetary security.

Parting Words

The cost of providing a decent education to children has now begun to skyrocket. Be it primary school or college, the prices are far too high for most parents to afford. This is precisely why investing in child-oriented mutual fund schemes is a monetarily prudent decision. Being professionally managed and diversified, they ensure that you are provided with a sufficiently smart and efficient solution for managing your child’s educational expenditure.

There are many banks and NBFCs that offer personal loans, each of them have different set of criteria for loan approval and interest rate. An interest rate makes a difference in the total loan cost. When it comes to a personal loan, you should always take into account the rate applied. Being an unsecured loan, the rates could be a little more as against a secured loan. You can now readily compare online personal loan rates by top banks and NBFCS.

Below mentioned are interest rate charged by leading banks and NBFCs on personal loans.

Given below details are purely informational and to know the updated list of interest rates, you should check with the particular bank/NBFC.

• HDFC Bank charges 11.25%, SBI charges between 10.95% and 15.35%, ICICI Bank charges between 10.99% and 18.49%, Axis Bank charges between 15.75% and 24.00%.
• Interest rates are 8.50% to 13%, 11.55% to 13.20%, 11.90% to 16.90%, 12.10% to 14.10%, 11.75% to 12.75%, 10.85% to 14.35%, and 10.99% to 18.99% by Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Central Bank of India, and CitiBank, respectively.
• Interest rates are 14%-33%, 10.99%-18%, 10.75% onwards, 11.30% to 15.05%, 13% to 18%, 11.75% to 14.65%, and 11% to 14%, 10.99% – 16%, by Fullerton India, Tata Capital, Yes Bank, Punjab National Bank, RBL, Federal Bank, Canara Bank, and Bajaj Finserv, respectively.
• Interest rates are 10.99% to 16%, 13% to 14%, 10.99% to 17.84%, 12.85% to 13.95%, 12% onwards, 12.70% onwards, by IndusInd Bank, Dena Bank, HSBC Bank, Corporation Bank, DCB bank, Karnataka Bank, respectively.

What Affects the Personal Loan Interest Rates?

Personal loan interest rates are influenced by several factors, some of which are listed below.

• Credit Score: The most important factor that decides personal loan interest rates is, credit score of the borrower. If you have 700+ credit score, then you stand a better chance at negotiating the rate and get the loan approved. A credit score will depict your financial behaviour, such as repayment of previous or ongoing loans, payment of credit card dues etc.
• Income: Depending on your monthly income, the loan amount and interest rate will be decided. If you draw a high income and require a low loan amount, then you shall get a better rate of interest. Existing liabilities and low disposable income will make the financial institutions to apply a higher rate of interest.
• Relationship with the Financial Institution: Existing customers of a bank/NBFC may definitely get the best rate available with that particular financial institution. The bank will consider the payment record and other essentials required before determining the rate for regular customers.

• Tenure of the Loan: The rate of interest will also differ depending on the tenure. A higher rate may be charged on a shorter tenure and vice-versa. Tenure of the personal loan can range from a year to 5. Longer the tenure, greater will be the interest payout.

• Amount of the Loan: Loan amount may also influence the rate applied. If the amount is less, a higher rate may apply, and vice-versa. The amount sanctioned will depend on other factors, such as repayment capacity, your monthly net income, credit score etc.

Why to Compare Interest Rate before Applying for a Personal Loan?

Mentioned-below are reasons of comparing personal loan interest rate of all providers before putting ahead the loan application.

• Right Fit to Needs: Interest rate of a loan scheme will inform you, if it is really suitable for your needs. It does not matter how low or high the rate is, but what matters is, if the scheme is perfect for you or not.
• Get an Idea about the Loan Cost: Applicable fees, charges, and interest together will account for the total cost of the loan. Knowing these details will tell you how much EMI you have to pay and the yearly cost of the loan till the end of tenure.
• Take an Informed Call: When you compare the charges, rates, and other costs of the loan, you will be able to take an informed decision. This is why it is a must to weigh your options before applying with a bank/NBFC.

Comparing interest rates for personal loans across financial institutions is important for more than one reason. The above post will help you know the interest rates applicable on a personal loan and what actually influences it.

Are you facing a difficult business decision? Many people do not know where to start when it comes to making a financial decision. Discovering the course of action to take is not easy to many, and that is why you need to seek professional advice from the experienced professionals. Here are the reasons why you need an expert financial planner:

Objective

Among the biggest mistakes you can make as an investor is lack of objective. It can reduce the performance of your business. If you make decisions based on emotions like panic, worry, and other feelings, you can end up reducing the performance of your company. For example, if you are a professional trader, you need to maintain your objective. For such a trader, there is a need to execute trades without being affected by emotions. The same applies to when you are investing.

A professional financial planner helps you by providing the objectivity. A Financial Planner Kansas City can help you by giving you an informed decision. A professional financial planner gives an investor the necessary advice, and this is essential when making an investment decision.

They Work Full Time

Professional financial planners work fulltime and will give you a vast knowledge in the field. They are qualified and experienced, and that means they know some things you may not know. It is the work of financial planners to give sound advice to their clients.

These financial planners are trained for the work. Their training starts at the university, and they gain experience when they begin working in the field. They go through various programs in their career to learn a lot of helpful insights. When hiring a professional planner, you need to work with the experienced ones. An expert with years of experience in the field can help you in many ways. You can ask from your friends and relatives for referrals.

Taxation

When investing your money, you need to understand tax well. Do not invest without knowledge of taxation only to end up being disappointed. A professional financial planner will help you to understand taxation and ensure it does not erode the gains from your investment. At times if you do not understand taxation, the performance of your business can reduce, and your gains can be hurt due to a tax charge. A financial planner already knows these issues and will advise you accordingly so that you do not lose your income.

Research

A financial planner spends time researching. When you hire an experienced financial planner, they will first understand the needs of your investment. If they do not have answers to some of your questions, they will research and give your answers with immediate effects. The best part is that a financial planner researches on a regular basis so that they can have the right knowledge of the industry. They must understand things like taxation, law and market trends. They are connected to other experts in the industry, and they keep gaining knowledge.

Do you have a project you want to undertake? Do you lack the money to perform your plans? Business loans can help you to expand your company. The institutions that avail funding are essential for the growth of businesses. Many entrepreneurs have benefited from these loans and are now doing well. Do you want to achieve the same success?

You will be surprised by how your business can grow. What you need is to meet the capital requirement of your business, and soon you will be making profits. If it is during a tough economic time, you must consider these loans as an entrepreneur. They will save you the hustle of maintaining your business. Here are exciting benefits you didn’t know about business loans:

They Are Flexible

You may come across different types of offers for loans depending on requirements. Firms may consider term loans to meet the requirements for funding in the short term. They may also choose working capital as an alternative to meet the business expenses when it comes to its operation.They can also consider a facility called overdraft whereby the funders overdraw the existing account according to the set terms and conditions and also the agreement. It is flexible, and this means that you can easily get a loan for your business.

Convenience Regarding Repayment

You will be given various options for repayment so that you can choose the one that is convenient for you. They can consider working out a suitable repayment plan that can be helpful to you. It ensures that at the time of servicing the loan, you do not face difficulties. Others may choose to either increase or lower the monthly payment depending on the profitability.

Costs Are Affordable

Some people believe that rates for business loans are exorbitant. It is a wrong belief because there are various criteria used. Some of them include dynamics in the market, your credential as a borrower, the financial situation of your business and tenure. Also, you are given nominal processing fees and commissions making it easy for entrepreneurs to borrow money from institutions. You can get affordable loans in Kirbyville TX.

Available Easily

Various institutions provide businesses with loans even without having a guarantor. It ensures that small businesses can access funds with ease to improve the state of their production. Nowadays many companies are also availing loans through the online platform which makes it easy to businesses and individuals to borrow money.The online platform is essential in that borrowers can keep track of their payment. You can also access various details in the online platform like repayment history, interest certificate, and repayment history.

Grow Your Business

What you may need to grow your business is adequate funding. These loans can help your business to improve and increase the profit margin. Your company can also use the borrowed money in various ways. Loans come with several benefits, and as a business owner, you should not watch your business collapse. All you need is to understand the terms and conditions and you will not face difficulties during repayment.

When you work, one of the most important things you want to do is to be able to save some money for the future. To do this, you will have to know what you are able to put away each pay period. You could sit down and figure this out yourself, or you may want to meet with a financial advisor who can go over it with you. Many banks have financial advisors on staff who will meet with you but, the latest trend is to join a credit union which works in many of the same ways as a traditional bank. The advisors there are specialized in how to help their clients save as much as they can.

What Is a Credit Union

Credit unions are set up like a regular bank but, they offer much more than a bank. The interest rates you receive on your deposits in generally higher than banks and interest rates on loans you take are much lower. In years past, credit unions were only available to those people working within the industry it was set up to serve. There were credit unions for plumbers, electricians, military personnel and much more. However, today, there are credit unions that serve entire communities and basically anyone who wants to open an account with them. While they no longer serve a specialized trade, they still offer the same great benefits. To find one near you, look for something like Houston TX Credit Union on the Internet.

Meeting with the Credit Union Specialists

Credit unions are known to have the most educated advisors available. They tend to make sure their employees attend training in whatever area they will be working in. This education shows when you meet with them to go over your financial information. The advisor who will be handling your account can tell you how you stand now and what you could possibly reach soon. If you are saving for a down payment on a house, he or she will tell you how much you must put away and for how long. If you want to save for your future retirement, they can tell you the best options for your situation. Depending on your age, they may have you invest in aggressive stock options or more stable investments. They will be handling your account from the moment you open it and will track all your investments for you. If any changes need to be made to it, they will contact you right away.

Even if you just want to open a savings or checking account, you will receive benefits from a credit union. Most of their interest rates are substantially higher than a bank and checking accounts are included in this. Many banks no longer give interest on checking accounts unless you have a certain balance in there monthly. Credit unions pay interest on the money that is in the account at the time the interest is paid each month.