Women’s Day 2022: Women have worked hard to make a mark for themselves in all spheres of life. Their journey, from being confined to their roles as daughters, sisters, wives, and mothers to being global role models, has been phenomenal and inspiring. Today, more women globally are joining the workforce, progressing in careers, and inheriting wealth, owing to which they are gaining control of a growing amount of wealth. It has been said that female investors have advantages over their male counterparts in the sense that they are good at saving, and can differentiate better between price and value.
Take the case of the COVID-19 pandemic, where several households were subject to pay cuts or loss of income (due to lockdowns or restrictions imposed): it is the conservativeness and budgeting practised by many women that helped families sail through challenging times.
However, a professional working woman or a housewife, women should take their own financial decisions and planning for your future. You do not have to always depend on someone for your financial wellbeing.
Amisha Vora, Owner and Joint Managing Director at Prabhudas Lilladher, said: “They should start with setting financial goals for themselves as goals give a sense of direction and lay the foundation for sound investment planning.
How to Determine Best Asset?
Archana Elapavuluri, Co-founder at Pickright Technologies, said: “The best asset is determined by the individual’s objectives and risk tolerance. However, in the long run, equity can help generate more wealth, as markets have historically delivered returns of more than 12 per cent during a holding period of more than 7- 10 years. However, it is critical to make investments in the SIP style.”
Gold
Gold is a favorite of women, and it is essential to have exposure to the shiny metal during market turmoils. Gold is more than just a precious metal, especially in India. It has a rather emotional value in the hearts of millions of Indians. Sovereign Gold Bond, Gold ETFs, and/or a Gold saving fund will certainly fulfil that goal. A 10-20 per cent allocation as it is a hedge against inflation and equity.
Mutual funds:
A systematic Investment Plan (SIP) is a worthwhile medium of goal planning. “Mutual funds are a good investment option that does not require active management by the investor and is managed by experts. MFs help in bringing the relevant amount of risk diversification into the portfolio. One can invest a lump sum amount through a SIP (Systematic Investment Plan), wherein a specific amount can be invested on a periodic basis. The benefit of SIP is the rupee cost averaging, which helps in capturing the prices at various levels. As far as possible not to deviate from your asset allocation suggested by your advisor based on your risk profile. Assess your goals and risk appetite from time to time,” said Sumita Pillai, CEO of Torus Private Wealth.
Public Provident Fund (PPF)
The benefits of PPF are available for both a homemaker as well as a working woman. “It’s an annual investment for 15 years and attracts a good interest and compounded saves up a large amount. You can invest from Rs.500 to 1.5 lakhs annually.” said Pillai.
Insurance
Health insurance, life insurance, term plans – you could choose any. The aim is to provide your partner with the necessary financial security in the unfortunate event of a health crisis and mounting bills.
Equity Investments
It is said that less than 5 per cent of those who come to the stock markets are consistently profitable. In a zero-sum game, wealth is accumulated by a handful of investors. What separates these individuals from the rest is not a very high level of intellect but a disciplined and pragmatic approach. And it is these traits that make investing come naturally to female investors. Equity is an important asset class to include in the asset allocation to make the most of the market’s opportunities and compound at a higher rate, said Sonam Srivastava, Founder at Wright Research.
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