From the time when you were a child, you may remember your mother and other women of the family saving every last penny and helping the household with critical expenses. They were aware of the day-to-day expenses of the house, and were, without a doubt,
very prudent and practical money managers.
What is surprising is that a lot of educated and independent women also, at times, feel uninclined towards taking charge of their own finances. In fact, as per a survey done in 2019, only 33% of women make independent investment decisions. It is typically
their father or husband who tracks and manages their money for them. It requires a cultural and mental shift to break this stereotypical approach to money and become independent in managing money.
Still not convinced? We give you 5 reasons to rethink your decision and start today!
You may live longer
Women’s life expectancy is higher than that of men. This implies that you may need a higher retirement corpus and a more detailed plan. A longer life may also mean more health care costs and lifestyle expenses. Women are also said to be more prone to
critical illnesses like cancer. For retirement, one of the ways of investing is to start a systematic investment plan (SIP) in an equity mutual fund of your choice. A small amount paid in the form of a SIP at any pre-defined interval may help you bring together a big sum for you to have a comfortable retirement. Starting the SIP at a young age helps in gathering
better returns in the long run as you benefit from the power of compounding.
You may take career breaks
There may be moments in your life when you may need to take breaks in your career, and in those months or years, you may want to be self-sufficient financially. Whether or not you anticipate these breaks, mutual funds investment can help you prepare for
these situations. With the help of the Systematic Withdrawal Plan (SWP), you can even opt for getting a monthly amount withdrawn from the mutual fund scheme.
You may want to be a role model
For your children and for many other women in your life, you can be a role model by planning your investments and finances. It promotes a healthy mindset and teaches them about independence, and the financial maturity women can have.
You may want financial security for various goals
It is better to safeguard yourself against any helpless situation in life. It is advisable to have your own portfolio of investments which has different investments catering to different life goals as per your risk appetite. For example, if you choose
to invest in mutual funds, you can invest in ELSS (Equity Linked Savings Scheme) for your tax-saving requirement, in liquid funds for your emergency fund requirement,
in debt mutual fund if you have a low-risk appetite and so on. This way, you will have your own financial plan to counter any situation.
Investing can be simple with the right guidance. If at all you find yourself confused or in need of guidance, you can contact
a mutual fund distributor for further consultation.
Economic times: article dated: May 30, 2019 (33 % Women)
Global Health Observatory (GHO) data on Health/mortality/life expectancy/
Aegon Life: article dated July 2, 2018 (Women specific Illness)
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ON ANY COURSE OF ACTION TO BE FOLLOWED BY THE READER. THIS INFORMATION IS MEANT FOR GENERAL READING PURPOSES ONLY AND IS NOT MEANT TO SERVE AS A PROFESSIONAL GUIDE FOR THE READERS."
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