Five easy investment tips for women

Gender pay gaps persist, making it more important for women to take responsibility for investing their hard-earned money properly until men and women achieve gender parity. Maybe you are a stay-at-home mom who takes care of children. Investing in the stock market is a great way to put money aside for long-term goals like buying a house or paying for your child’s education.

Types of investments and their advantages

At the rebar investment stage, be sure to do so in a way that maximizes your return on investment (ROI). Women have the added pressure of balancing professional and domestic responsibilities. Therefore, it can be difficult for them to review their portfolio daily or weekly.

Some women, on the other hand, may wish to become more involved in managing their portfolio. Since no two investment portfolios are the same, keeping track of how much time you have is essential, as this will influence your investment choices.

The following investment choices are available to women:

1) Flexible fixed rate deposits

Being well prepared gives you confidence. In an emergency, most women do not know where to access emergency savings or insurance information. While it’s essential to protect your family’s finances, you also need to secure your emergency fund. Maintain a six-month emergency fund in a fixed Flexi deposit that you can easily access. Bank deposits have the added advantage of being able to borrow up to 90% of the value of the fixed deposit in a short-term loan. Keep in mind that while Flexi deposits are great for short-term investments, they’re useless for financial goals beyond three years.

2) Super complementary health

The super supplementary health insurance is taken out in addition to the ordinary health insurance. It is essential to have appropriate health insurance coverage. Do not rely solely on the benefits offered by your company. Also consider taking out additional health insurance. Considering the high cost of treating serious illnesses, a health insurance policy of Rs 15-20 lakh is recommended (which can also be purchased as a family float). Super supplemental plans are a cheaper way to get health insurance.

A super supplement offers low-cost health coverage in exchange for a co-payment from you. So, if you had a Rs 10 lakh policy with a 1 lakh deductible, you would have to pay the first lakh in claims every year (cumulatively) and the insurance company would cover the rest.

3) National pension scheme with active stock option

Women’s attitudes towards retirement have changed over time. These days, early retirement is the norm and it’s all about following your interests and ticking things off your to-do list. Investing in traditional vehicles, such as employee provident funds or public provident funds, would not help you build the necessary corpus. You can use a mixture of EPF and NPS to reduce the risk.

The National Pension Scheme Active Equity Option, a low-cost retirement savings vehicle, could be used to fund the equity component. NPS is a great way to save for retirement because it encourages you to make consistent annual contributions and funds are locked in until age 60, allowing your money to actively accumulate. An active equity option is suggested as it provides a high degree of equity exposure throughout the investment term, thereby enhancing overall performance.

4) Index funds, flex caps and midcaps are all options

Women despise losses and avoid investing in stocks. Traditional investments, on the other hand, do not outperform inflation and therefore do not increase in value. Financial dreams are quite important. However, most people don’t have the wherewithal to invest in their financial goals. You will need to invest in stocks at least 30-40% of the time if you want to achieve your long-term goals.

However, choosing companies to invest in can be difficult. In such a scenario, consider one of India’s 4000 listed companies. By allowing fund management to assess companies, you can make better use of your time and money investing in mutual funds.

The long-term risk-adjusted returns of index, flexible-cap and mid-cap equity funds have been consistent, and a combination of these products will provide sufficient diversity.

5) Gold

Gold is one of the best investment opportunities for Indian women as it provides exceptional security in times of uncertainty. This is a low risk investment that could provide a steady stream of income. Women can obtain gold coins from banks and authorized vendors. They can make a lot of money in the markets if gold prices go up. Gold coins can also be used to craft jewelry or exchanged for cash. Investing in gold can help a woman overcome her financial difficulties during times of high inflation.

Conclusion

At first, investing may seem time-consuming, but when you understand it, there is no turning back. As a woman, you can invest wisely, logically and successfully. This will allow you to reach your financial goals and guide you on the path to progress and opportunity. Seeking advice is one of the best things you can do when you’re having trouble deciding how to invest. There are no silly questions, and the doubts you have today are probably the same ones others had when they started.

(Sucheta Mahapatra, MD, Branch International – a personal finance app)

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Published on: Sunday, May 22, 2022, 07:00 IST

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