It is not enough to only have a good source of income and save some money each month. Though savings are always important, investments such as a ULIP policy can help you grow your wealth. As a woman in a well-paid job or a self-owned business, you can avail of many investment options for women that can be most beneficial for wealth creation so that you can continue being self-sufficient and fulfil all your goals.
How Important is Investing for Women?
In today’s world, women have various financial needs to fulfil, especially if they are the family's sole breadwinners. Be it the education of a younger sibling or their child, starting a new self-owned venture, donating to charity, creating a retirement plan, or setting up a financially secure future for their parents or their spouse and kids, these goals require disciplined investment.
Options like ULIP Insurance help you choose a flexible premium-paying term and investment tenure that allows you to invest regularly and secure your financial future and goals.
As a single parent, if you need to tackle multiple bills and expenses single-handedly each month, you will need an additional financial resource apart from your monthly income. It is also advisable for housewives to consider an investment for women, even though they may not be earning and could be solely reliant on their husband’s income.
Historically, certain aspects of financial planning and literacy have been well understood by most women, even if they were not the ones who are earning for the family, owing to their skills at managing household expenses. And now, with so many well-paying jobs, adding to your financial knowledge and making informed decisions regarding investments can help you make suitable choices for the apt possible returns.
Financial literacy forms an important part of your financial planning, without which your income, savings and investments will only give you the bare minimum you can expect in terms of returns. Even investing in a ULIP policy can hardly be beneficial enough if you are not careful about choosing the right investment funds for your goals.
What are Some Investment Ideas for Women?
One can have different purposes for investing their money; while some aim for complete financial independence, others may want to secure their future or create an emergency fund. Instead of simple savings in bank accounts, investing money can help your wealth grow steadily.
Below are 5 investment options for women that can boost your financial corpus and help you achieve your financial goals.
- Unit-Linked Insurance Plan
ULIP insurance covers two important aspects of your financial planning under a single policy and with one premium – saving and life insurance. If you have long-term goals, you can get a ULIP policy that suits your risk profile and start your wealth creation plan. After the 5-year lock-in period, you can opt for partial withdrawals or choose to wait until maturity to receive the lump sum.
- Mutual Funds
If you have a steady income, no matter even if you have just started earning, a mutual fund through a Systematic Investment can be a good option for you. SIPs in mutual funds start from a minimum of ₹500, and you can gradually increase the amount after a few months or each year. There are different types of mutual funds you can choose from, depending on your goals and your risk profile.
A mutual fund can be a great investment for women since your SIP will benefit from rupee cost averaging – when the market is down, you get more units, and when the market is going up, the same SIP will buy fewer units.
- Fixed Deposits
Most women who save a lot of money through their jobs or business look for different options to invest in a lump sum amount. Fixed Deposits (FDs) are not only less-risk investments that offer assured returns based on interest rates but are also easy to understand, unlike a lot of market-linked instruments.
One of the features of a fixed deposit for women is that the invested amount will benefit from compound interest, which means you earn interest on the interest of the principal amount. This can be one of the apt investment options for housewives in India since, as less-risk investors, they can invest a lump sum amount securely without having to worry about market-related hassles.
- Gold Investment
For many years, women have always valued gold, not only for its ornamental value but also for its investment value. This is why, even today, women make it a point to buy a small amount of gold in the form of a gold coin or an elegant piece of jewellery at least once every year.
Digital gold is also a great option in today’s time, where you can have an online account with a reliable and choose to buy gold units digitally throughout the investment tenure. After this period, you can opt for a physical delivery of the gold, make some jewellery, or even sell the gold. The prices are always updated online as per the market rates, making price tracking easier.
- Real Estate
Like gold, real estate is one of the oldest forms of investment; however, it is only in the last 15-20 years that women have also stepped into investing in real estate. Therefore, concessions such as lesser stamp duty charges and similar benefits are available to women homebuyers.
Even home loan interest rates for women encourage more women to purchase homes and pay off the loans easily. As a woman, having one’s own property is an investment in different ways – while it certainly offers returns on investment as per the market conditions, it is also a safe haven for the woman and her family.
Given the various financial obligations and responsibilities women are tackling today, it may take some time to achieve financial independence, where a woman should not have to worry about maintaining her lifestyle and fulfilling her dreams. But with a range of suitable investment options and a strong and stable financial plan, one can get a good head start into creating wealth over the long term and securing their future.