In India, usually, there is this age-old myth that finances are to be handled by the male members of the family only. But, as a matter of fact, this does not hold true in today’s age. Today, there is no doubt about the fact that Indian women have moved out of their conventional traditional arena, from managing homes to managing MNCs, industries and even governments. And, it is important for women to manage their finances as well, to know where to spend, how much to spend, and where to invest and save. No matter what, women should be confident of their decisions taken with respect to investing.
For Unmarried Women
If you are unmarried, doing your studies, you can definitely go the extra mile if you want. It is seen, many young girls take up part-time jobs or internship, along with their studies. Investing is not a one-time activity, it’s a life-long process which will help you in the long run. So, sooner you start investing, better for you. Being unmarried, you will need savings for your higher studies, your marriage or for any other long-term plans you have in your mind. For short-term goals like eductaion, investing in equity shares or mutual funds is not advisable. Rather, go for the traditional investment options like as bank FDs, post-office deposits, liquid mutual funds and FMPs. Here, the chances of capital loss is almost zero and these investments can be withdrawn with limited deductions. Hybrid savings account of banks is also helpful, where your money is automatically transferred to fixed deposits, when you reach a particular threshold in your savings account. This lets you earn higher returns as well as high liquidity as availed in normal savings account. For long-term goals, you can opt for highly popular equity mutual funds, bullion or debt mutual funds. The midcap equity funds is a good option as they have a greater growth potential in longer term (more than 5 years).
Working married women
If you are married working women, you have the double tasks of managing your home and your job or business at the same time. It may not be possible for you to track your investment status regularly. But, you do require different investment options, for yourself and even for your children, their marriage, your retirement, for buying a house or car and so. The most recommended investments for you are the ones that have limited or no risks at all, that do not require your personal supervision. For retirement benefits, invest in PPF and NPS. These are tax-saving schemes. For your child’s education and marriage, make investments in recommended asset class like Equity, Debt, Corporate FD’s, Bullion etc. Diversification of investments in different assets will help reduce the risks involved. Better to take advice from financial advisor.
If you are a housewife and personally do not have any source of income, your investment is the savings that you accumulate month-on-month by managing your family’s monthly budget. But, rather than keeping your money idle in your safe or just putting in the saving accounts in your back, it is better to invest your savings into hybrid bank accounts as mentioned above. Recurring deposit or PO deposit is another good option. You may also invest in gold mutual funds.
Single women (widow, single parent or divorced)
If you are a widow or divorced, you have the full responsibility of taking care for yourself, your kids, their education and marriage, your own retirement; and all these have to managed by your own earnings. Hence, you should opt for investments that do not leave any of your goals to any risks. You can invest in an emergency fund, which is sufficient to cover atleast 3 month’s house-hold expenses (including EMIs if any). This is possible by investing in a liquid fund or hybrid savings account. If you are single and in your early thirties, which mean that you have many years to retire, you can invest into PPF or National Pension Scheme (NPS).
Its necessary that women should stay financially secured whether married or unmarried. Investment is a must for all women.
Note: inputs from moneycontrol.com