Until recently, not many women in India were financially independent. However, there has been a big change in this situation lately. A new generation of educated women is working in well-paid jobs across the country. This has resulted in women having a larger disposable income. This post shall try to help independent working women to invest their money based on their goals and aspirations.
- Focus on long term goals
A big advantage for women investors is that they tend to have a long-term view regarding investments. Due to this, they are less impulsive than their male counterparts, says a Prudential research study. With extra funds on hands, they can comfortably plan for long-term goals such as retirement. Investing in balanced funds might be a good start in this direction.
- Slight push
The survey further states that while 92% of working women claim to be involved in the decision-making process, around 70% of them are actually joint decision makers. Typically, they prefer to transfer investment decisions to the father or husband. But with a little push, they tend to perform better as they generally find more time to conduct research and understand the product.
- Less prone to take risks
Most women are reluctant to take big risks according to a survey by DSP Black Rock. Due to this reason, they prefer to invest their savings in very safe avenues like bank deposits. But how about earning a much higher rate of return at a similar level of risk? For starters, you can consider putting your money in fixed deposits as they offer around returns around 8.5%. Other low-risk options include debt funds that invest in fixed income securities like bonds and treasury bills.
- Reasons to invest
Women who are the primary breadwinners of the household tend to look beyond their personal concerns. Apart from investing for a secure future, they also look to provide for others. If regular income is a priority, it is preferable to invest in blue chip companies or equity-linked dividend paying mutual funds. This way, you can earn good dividends at relatively low risk.
Women are excelling in every field today. With an increase in jobs, more women have disposable income in their hands. With these investment options, independent women can secure their financial future and enjoy good returns over the years.