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The Whys & Hows of Women’s Independent Investment

“A woman’s best protection is a Little Money of her own” – Clare Boothe Luce
Women's Day

Women worldwide have time and again broken the cages of male dominance in and around all sectors of society. Be it new industries, new age businesses, literature, science, etc. With women becoming independent in all walks of life, this independence is heightened when ‘Financial Decisions’ and ‘Independent Investments’ are counted. 

Only two out of every eight women makes their own financial decisions in today's times. The rest provide men control over their financial lives. That's regret because women are better at investing and managing money than males.

Women, it is said, spend more time investigating their financial options, do not chase returns, and do not engage in risky investments based on whims. Women are also more inclined to seek professional counsel and information that counters their preconceptions.

This scenario turns out to be paradoxical that despite having all the nuances needed to invest right, we see a significantly lower turn out of women investors. Nonetheless, with a bit of booster shot in awareness, the numbers have risen. According to a few reports, women investors have surged. Now, since there are women finally taking steps to their financial independence, we are here to tell you why women need to make their investments. Towards the end, we will also let you know how women can make such investments.

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Why should Women Invest their Money?

The logical explanation for women investing is simply that men can and do. Besides stating the obvious, investing is an excellent strategy for women to increase their income.

If a woman works, she can set aside her monthly disposable income and invest for her future.  This could assist her in saving for a vacation, a degree, a vehicle, or even having extra money set aside for a rainy day. 

Still not convinced? Wait, there are more reasons for it!

Instils Financial Equality, hence help make you Financially Independent

First and foremost, women must acquire a sense of financial equality and self-sufficiency. Faced with the gender wage gap and the pink tax, investing is one of the most effective strategies for women to ensure they have the same opportunity to create wealth as men.

Whether a woman runs a business or a home, she knows how to save money in whatever big or small amount she can. This is something that she will be proud of. Now investing the same to let it grow will give her the wings to be financially independent. 

Help Reach Life Goals through Money

Life can take unexpected roads, and our goals will also be hindered. However, when one is financially stable, the alteration of the Life Goals does not hit hard. Investing is perhaps the best approach to achieve your goals, whether you want to go to that MBA school, save for an emergency fund, send your children to college, prepare for a significant purchase, or enhance your total wealth.

A perfect second Innings: Retirement

Safe and happy retirement is something that we all seek. Even for non-working women, retirement means a second innings to live life the way she wants to, indulging in all those things she gave a ‘no’ for the times to come. Women, according to science, live longer than males. An individual's life expectancy is influenced by various factors such as family history, medical issues, and other factors. Nonetheless, these facts must be considered. Women must plan financially for long life and ensure that they have the finances to meet their needs. While savings can bring temporary financial respite, intelligent investments can yield higher rates of return.

How and Where can Women Invest their Money?

Anyone and everyone can invest in the plethora of options available to invest from. However, the catch is to invest in places where one gets to maximise their return and at the same time minimise risks. The following listed investment options can be a good choice:

Public Provident Fund

One of the most popular investment schemes given by the Indian government is the public provident fund or PPF. It is the most acceptable option for homemakers or working officials who plan for the future. Another benefit of PPF is that it provides a competitive rate of return to investors, allowing them to improve their cash flow. Aside from that, they are higher than bank deposit rates, resulting in higher returns.

Mutual funds

This is the ideal investment for ladies if they wish to invest in the short term, medium-term or even long term goals. Depending on your financial objectives, you can invest in Equity, Debt, or Hybrid Funds. Start with a Systematic Investment Plan (SIP), which is can be started as low as Rs. 100 and suitable for both working and non-working individuals. 

Physical Gold to Digital Gold

Gold is the investment women have been doing even before the experts coined the term ‘Investment’. Gold is much more than an ornamental favourite among Indian women. It's a good investment that can help beat inflation while diversifying your portfolio. Furthermore, gold tends to perform better during economic downturns, such as the one we're currently experiencing. As a result, when interest rates and stock prices decrease, gold generally preserves your investment value.

Few Tips to keep in Mind before Investing

To establish a sound investment plan, consider the following steps:

  • Examine your financial objective: Make sure you establish your objectives to choose the best investment options for each one.
  • Consider how long your investment will last: If you're searching for quick profits, a short-term instrument is a way to go. If your aim isn't urgent, though, you should invest in a long-term instrument.
  • Examine the risk associated with the investment: Each investing tool carries a certain level of risk, which may impact the returns you receive after the investment's term. Make sure the risk you're taking is in line with your risk tolerance.
  • Life Insurance: When planning for the future, don't forget to protect your loved ones. Insurance products, such as ULIPs*, provide both protection and investment.

Places Where Women Should not Invest

While there are a lot of places experts would suggest investing in, there are a few places in which women should refrain from investing. Now, these have time and again tried to frame females. Women are known to put their trust and confidence in the new initiative that runs around them. However pleasing and encouraging it might sound, women mostly are scammed by such plans. 

Chit Funds

 In a chit fund, a group of investors pool their funds to ensure that their money will be multiplied in a short period with a guaranteed return. A certain number of subscribers contribute payments in instalments over a set length of time under this sort of saving plan.

Now Chit Funds have been relatively common with Indian women because of the ease of transaction. This super easy give and take of money has often been used to scam people. If growing money and wealth creation is the motive, chit funds should be avoided for the best. 

Ponzi Scheme

A Ponzi scheme is a scam in which cash from more recent investors is used to pay gains to previous investors. Victims believe that profits are generated through legal and economic activity, unaware that funds are coming from other investors.

Investors Scams like Plantation or Product  

Investment scammers entice you in by promising to show you how to make a lot of money fast, simply, and safely – usually by investing in the products, plantation, financial or real estate markets. Scammers usually bring out offers that seem very fruitful at the start and promise you higher returns in a quicker period by just pooling in a small amount of money. 

Regardless of how enticing and easy these schemes might sound, the lack of proper guidelines and legal affiliation is enough to indicate that these are not suitable investments. However, since money is one of the most valuable assets, we must play around with it wisely. 

The Takeaway for the Ladies

Investing may appear to be a time-consuming task at first, but once you watch your money grow, there is no turning back. Fortunately, there is a wealth of information accessible to assist you in beginning your investing adventure.

As a woman, you have the power to invest your money cautiously, sensibly, and efficiently, which can help you meet your financial objectives and lead you along a path of advancement and opportunity. When you're unclear about how to invest, remember that one of the best things you can do is seek advice.

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