A Handy Guide For Women To Manage Finances At Every Stage Of Their Lives

Indian women are emerging by breaking stereotypical barriers in several contexts. With enhanced learning and earning opportunities, financial independence and financial security have become easier for them, which helps them be more confident and boosts self-respect. For maintaining a sound financial portfolio, wise financial investment planning is essential.

Basic Investment Guidelines For Women

Young and single women:

Risk tolerance can change with age, stage of life, income, dependants, liabilities, etc. The investment pattern would also change accordingly.

You can begin your investment journey by investing in mutual funds through the Systematic Investment Plan (SIP) route. You can also invest in a lump sum if you have a specific amount of money set aside for investing. This is ideal for long term wealth creation. Also, you can start trading in stocks of well-managed companies to build a healthy portfolio.

Traditional fixed deposits (FDs), debt funds, and post office deposits are ideal for short-term goals and maintaining your emergency corpus.

Married and working women:

Midyears are most crucial for stepping up your financial goals. It is best to invest in a proper term plan and well-performing mutual funds and stocks at this stage. Trading is an excellent option if your risk tolerance is slightly high and you have time to do your research and have an interest. This will help you grow your overall investment portfolio.

Gold investment is also good, provided it is invested through gold mutual funds, Exchange Traded Funds (ETFs), or gold bullions.

If you are above 40 years, you can focus on retirement planning through NPS (National Pension Scheme), PPF (Public Provident Fund), and pension plans.

Home-maker:

As a home-maker, you have the entire responsibility to run the house and would like to make the best use of every rupee from your monthly allocated budget. Your savings plan is based on “It takes money to make money.”

You can consider investing your savings in different hybrid bank accounts, such as fixed deposits, recurring deposits, etc. The post office monthly recurring deposit plan offers a lucrative rate of interest. Depending on the market condition, you can also invest in gold mutual funds or gold ETFs.

Single parent:

As a single parent, the entire responsibility of your children is solely vested upon you, both emotionally and financially. Apart from planning for their education and marriage, it would help if you focused on your retirement benefits too.

Under such circumstances, risk-free and safe investment instruments are ideal. Term insurance is a definite buy, especially if you also have a home loan so that no unforeseen event jeopardises your child’s financial future.

Furthermore, you can combine the rest with your monthly income and invest in NPS, PPF and other balanced mutual funds or continue investing in stocks.

Conclusion:

Thus, it is essential to maintain a balanced diversification for enhanced income opportunities and do a monthly review of your financial portfolio to reduce the risks that are not per your financial targets.