How Can Women Start Their Investment Journey?
Women are increasingly making smart investment plans as they are attaining empowerment like never before, as a result of better access to education.
Women comprise about half the world’s population. As more women enter the workforce daily, it is becoming essential for them to learn to manage personal finance. Women should acquire a sense of financial equality and independence. Investing is one of the best strategies for women to ensure they can amass the same amount of money as men and circumvent problems such as low savings and lack of financial security.
Meeting Financial Objectives
Investing is probably the best approach to achieve your goals, whether you want to go back to school, build an emergency fund, send your kids to college, save money for a big purchase like a house or wedding, or increase your general wealth. According to the World Health Statistics 2021 report, women generally live longer than men. Therefore, it is also essential to factor in retirement planning.
When To Start Investing?
You must be wondering what is the right time to start investing and grow your money. Should it be after getting a job or promotion?
The saying goes, “The best time to plant a tree was 20 years ago. The second-best time is now”. So, please do it now, and don’t wait for a promotion or your dream job.
Where to Start?
When you initially start investing, do it in a way that maximises your return on investment (ROI) and value for your money. We are all swamped, but women occasionally have the added burden of juggling responsibilities at home and work. Prioritise investing in your life. Here are some options for you to get a head start on your investment journey.
Stocks, also called equities, are a portion of a company’s ownership. Shares of a firm represent a fractional ownership interest in that business. Today, people can buy and sell stocks from some of the most well-known companies. Stocks may be high risk, but they also provide a great return on investment.
Both novice and experienced investors should consider mutual funds as their primary investment option. Depending on your investment goals and risk tolerance, you can select from various asset classes (debt, equity, hybrid, etc.). A systematic investment plan or lump sum mode are the two ways investors manage the investment.
Exchange-traded funds (ETFs)
An ETF is a collection of securities that considers all types of assets, including debt, equity, stocks, bonds, commodities, and currencies. ETFs are an excellent option if you do not want to manage your investments actively.
Not just physical gold, women must consider investing in government gold bonds. They are cheaper (no fees or expense ratio), give higher yields than actual gold, and can be kept in a certificate or demat form.
Women should have adequate health and life insurance. Whether you are a single woman, a stay-at-home mother, a married woman, or a working woman, having adequate health insurance coverage is important because it helps to protect your health, save money, and create a shield of protection. Life insurance, on the other hand, not only assists your family during difficult times, but it also empowers you and provides you with a sense of financial security throughout your life.
Other investment options are corporate bonds, government bonds, real estate and even cryptocurrency.
Mistakes To Avoid While Investing
In the best-case scenario, savings accounts or fixed deposits are another investment option that women in India prefer. Owing to their poor interest rates, storing money beyond a certain amount in these is ineffective. Inflation can erode your money in savings accounts or bank deposits. Instead, invest in securities that give you an inflation-beating return.
Learning to manage risks and being a patient investor can be really helpful. If you invest too cautiously, you can underperform over the long run and miss out on high profits, while being a persistent risk-taker with your investments can cause you significant losses. You need to analyse your risk appetite and invest accordingly.
Nowadays, investing is a simple, hassle-free, and convenient activity thanks to growing digitisation. Before making a choice, you can analyse different investment choices using various online finance sites. Geojit can help you make informed investment decisions and grow your wealth over time.