Women today, are multi-taskers. They take care of their husband and kids. They manage the household tasks and the family budget. They work in Government Offices and MNCs. This is a real lot of work.Many Women in India, including working women, are reluctant to manage their finances. This job falls on the male members of the family, as many women believe they are not good enough to manage their money.
Why don't Women manage their money? Women tend to avoid managing their money, leaving it to their father or husband. Many Women are not confident, handling their money.
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Why must women manage their money? Women are very cautious with money. They consult family and friends and also a lot of relatives before investing. This makes Women, their money's best friend.
1. Investment Plans for unmarried working women
Short term goals:
If you are an unmarried woman, you may need money for marriage. You need money for marriage, say maybe 2-3 years from now. Can you invest in equity mutual funds or stocks for a financial goal, just 2-3 years away? Definitely Not. An investment in equities is for the long term. (A time period of 3 years or more).
This investment requires time to grow. An investment in equities is very risky in the short run. This investment is subject to stock market movements and you could suffer losses if you invest for the short term.
If you are investing for financial goals like a good education or marriage expenses, invest in FDs, Post Office Deposits, Liquid Mutual Funds or Debt Funds. These investments are quite secure and you can easily withdraw the investment when you need it.
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Let's say you have a long-term goal of buying your own apartment. This is when you can invest in good equity diversified mutual funds or midcap equity funds if you are willing to bear risk. If you are an unmarried woman and have kept money aside for marriage, you can invest in equity for long-term goals like buying an apartment as you can bear extra risk before marriage.
SEE ALSO: Mutual Fund for Housewives
If you are a married working woman, you have twin responsibilities. You have to manage the household and also your job. You might not have the time to take care of your investments. This is why you must take the help of a financial advisor. You need to invest for your children's education, their marriage, a financial goal like buying a car or an apartment or your retirement.
If you are investing for children's education or marriage, consider an investment in equity, if you are willing to take risk. Your kids are still in school and when they are ready for college/marriage, you can use this investment. An investment in equities requires time to grow and it should be ready when your kids reach college.
If you are risk-averse, consider an investment in debt funds or Corporate FDs. Debt funds and Corporate FDs are riskier than bank FDs, but may give higher returns. You may also add an investment in bank FDs to earn decent returns. This money can be used for children's education.
For your retirement, consider an investment in PPF and NPS. These investments help you accumulate and grow your money across working years. You are also able to save tax which means more money at retirement.
You can also consider ELSS for financial goals like buying a car, an apartment or even retirement. This investment has a compulsory 3 year lock-in. You can invest small sums of money regularly in ELSS via SIPs. SIPs (Systematic Investment Plans) is a method of investing in mutual funds, where you invest small amounts regularly say once each month. Stay invested in ELSS for at least 5-7 years, to achieve financial goals.
These are some of the investments which have high benefits for females. There are lots more, but we will have this discussion at a later time. Be Wise, Get Rich.
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