By Mashum Mollah
Gone are the days when women had to feel the constant regret of just being a housewife. Women these days are earning as much as a man, and sometimes even more than men. The modern woman, however, has a new challenge to overcome – to take an investment decision on her own. She must evaluate the available investment options for women and select the right choice for herself and her family. Let’s understand Which financial mistakes should women avoid?
Why Should Women Take Investment Decision?
The cost of not investing is substantial in an inflationary economy like India. Over time, the cost of living is bound to increase. The important and primary expenses incurred in a family including children’s education and aging parents also adds significant pressure on your savings. If you do not invest with a proper strategy, you may end up reducing the value of your fund, as inflation is consuming the buying power of money. Hence, it is necessary for women to assess the best investment options available to them and harness their value.
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Why Indian Women Remains Passive in Investing?
Historically, women remained busy in household activities and family cares. She could not contribute the time to earn money and manage the same. However, women now manage to have a successful career while acing a being a homemaker. While being self-reliant is a matter of pride, many women remain to continue to make money and hand over their finances to their husband or father. This passive attitude towards investment, however, is now changing slowly as women participate in important financial decisions.
Is Investing Difficult for Women?
MAAA rated (indicates the highest safety) agencies like Bajaj Finance offer plenty of options for woman fixed deposits online. If you have your PAN Card and Aadhar card handy, you can easily open an FD. To check the maturity amount of FD, you can use online Fixed Deposit calculators that you can plan her future expenses. The points to consider before investing are: safety of principal amount, assured regular income and ease of investment. Based on convenience, women should consider opening a new Fixed Deposit every three to four months, to generate consistent income in her retirement period. Let’s find out more about financial mistakes committed by woman.
Why is FD better Investment for Women?
The woman FD has some unique features, that are not available in investment options like PPF, ELSS, mutual funds or pension accounts. While some features are available in some accounts, the FD combines all the features, and hence it makes sense to invest in FD for the woman.
In case of emergencies, you can access your money easily by either breaking the FD or taking a loan against the FD. Moreover, you can select cumulative or non-cumulative interest payment option according to your requirement. If you are a salary earner and do not need immediate regular income now, you can choose to select the cumulative option. Under this option, interest is added to the principal amount and you can get the power of compounding. For earning regular interest income, you can choose non-cumulative interest pay-out option. Under this option, as per your choice, you can get monthly, quarterly, half-yearly or yearly interest income.
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Other Investment Option for Women
Once you have invested in FDs, you can think of investing in equity to get a higher return over an extended period. Instead of direct investment, she can choose any reputed mutual fund and invest regularly via SIP (Systematic Investment Plan) method. If you want to create tax-free interest income and can wait for 15 years, you can also open Public Provident Fund (PPF) account. You can invest the amount of your choice between Rs.500 to Rs.1,50,000 in a year. If you can take more risks, Equity Linked Savings Scheme (ELSS) is a good tax saving option for women, with the advantage of equity return. Hope you are clear about financial mistakes for woman.
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