Financial Independence can give women the power to make decisions and allows them to control their finances as well as attain goals without being dependent on anyone. Even though times have changed but some women still save their money in bank accounts and earn a minimum return instead of investing their money and creating a fortune for themselves. Many women still have a long way to go in terms of developing financial resilience, despite recent good developments, particularly with the Pradhan Mantri Jan Dhan Yojana.
Investments must begin as early as possible. So, starting early in your job, investing should be a part of every woman’s financial strategy. This will give you a sizable window of opportunity to watch your money grow. Also, it gives them an opportunity to choose various long and short-term investment choices based on their unique goals.
Why Women must Invest?
One of the most logical reasons why women should invest is that investments and savings have nothing to do with gender and planning, for uncertainties is everyone’s responsibility. However, apart from stating the obvious, investing is a wonderful method for women to increase their income.
For instance, a woman can allocate a portion of her discretionary money each month and invest it in the stock markets. Today, stock markets have been offering a wide array of investment products like equity, debt, bonds, ETFs, mutual funds among others. Returns from these investment products could aid women in saving for a variety of goals, such as a vacation, a degree, a car, medical bills or even additional cash for emergency.
Also, it is pertinent to note that to invest in markets, a woman does not need to be employed. One maybe a lady who takes care of her family by staying at home. In such a case, a reliable way to make money for any long-term objectives your family may have is through market investing. It is possible to create wealth for yourself by setting aside a small portion of your income and investing it to generate high returns.
How women can get more engaged with finance?
Typically, women fall a prey to some stories about investment risks. This is primarily due to a dearth of understanding and awareness of investments. It is important to understand that not all investments carry a high level of risk. By being conscious of your risk tolerance and practicing risk management, you can achieve great results. This also helps you in taking more control over your finances and paving a path for a secure financial future.
Not directing all savings towards gold
For many years, gold has been one of the most popular investment choices for Indian women. It is time that women attempt to diversify their portfolios by looking into other investment opportunities rather than buying too much gold. Women can even invest in Gold ETF instead of buying physical gold as it will assist them in shifting their attention from solely tangible assets to financial assets.
Consider Mutual Funds as a go-to choice
Any type of investor, whether new to investing or experienced, should consider mutual funds. As a woman, starting your investments with mutual funds is a fruitful choice as it helps in allocating your money effectively based on your objectives. You can simply start with a Systematic Investment Plan (SIP) if you are a beginner investor.
SIP enables you to invest a certain sum of savings each month, with the money being automatically taken out of your account each month to help you stick to your investment plan.
A diversified portfolio is the best portfolio
Before beginning to invest, women must note that it is important to invest in long-term instruments, but they must also be willing to take some risks if they want to increase the performance of their portfolios.
You can start by making sure that your portfolio is diversified and that you spread out the risk by not having it concentrated in one area. Consider various sectors and investment products before you decide to put your money anywhere. Diversification is a key factor in investing and a well-diversified portfolio helps in creating wealth systematically. It is of utmost importance that you know about your risk profile and how much are you willing to risk for the returns that you may get.
Ready to start? Let’s see how!
Investing may originally seem like a lot of work, but you won't want to stop once you start seeing your money grow. Please keep in mind that asking for assistance from an experienced investment advisor is often one of the best things you can do when you have concerns about investing. Starting to invest is important and gradually investing wisely becomes an easy task.
Women shouldn't invest less frequently, there are many investment options accessible, and they all have something for different people. Your financial future is just as crucial as anything in your present, so set priorities and begin right away!
There is a paradigm shift in the investments scenario when compared to what existed a few decades ago and today, women are taking the lead and carving a path for themselves that secures their financial future.
Financial independence among women is rising, and they are taking a bigger part in the process of making financial choices. Investing in order to grow your wealth becomes essential when you have a lot of dreams to fulfil.
The right investments can help you secure your financial future and the future of your loved ones, which will help you achieve both short-term goals like buying a vehicle and long-term goals like buying a home.
Connect with mastertrust today for shaping your financial journey by investing and creating wealth in the long run. Allow us to make your wealth creation path a secure one by taking prudent decisions.
Lastly, always remember that Malala Yousafzai said that “There are two powers in the world; one is the sword and the other is the pen. There is a third power stronger than both, that of women.”
This Women’s Day, pledge to invest regularly and see a visible difference in your wealth. May all women have a fabulous financial future! Happy Women’s Day.