Not too long ago women preferred to have secure investments such as gold and fixed deposits. However, the notion is changing with the new generation embracing alternative investment options. Bankbazaar’s recent Aspiration Index study sheds light on this shift, indicating that women today are diversifying their investment strategies.
According to Bankbazaar’s study, 40 per cent of employed women aged 23 to 45 are now actively participating in mutual funds, while an equal percentage is directly involved in the stock market. Interestingly, women in this demographic are opting for endowment or ULIP plans instead of traditional gold investments. Additionally, 15 per cent of women have diversified their portfolios by investing in real estate. It’s worth noting that these statistics reflect the financial awareness of earning women. However, it’s important to recognise that there are women who manage household responsibilities without engaging in external employment in Indian society.
The prevailing notion around them is to stay at home, save and invest in traditional avenues like gold or fixed deposits. Nanda Padmanabhan, DGM (Communications) at Bankbazaar, provides insights into why such women might not explore newer investment options. She suggests that time constraints play a significant role, hindering women from researching and considering alternative investments. Padmanabhan emphasises that making information readily accessible to women can potentially break traditional barriers, enabling them to diversify their investment portfolios.
Nanda Padmanabhan highlights the importance of considering the growing inflation rate. With inflation surpassing the return rates on savings, she suggests that investing in mutual funds has become essential. Given the yearly inflation increase of 6-7%, coupled with education costs rising at 10-15% annually, relying on a fixed deposit with a 7% return may not prove advantageous. Padmanabhan recommends mutual funds as a better alternative, indicating that staying invested for 5 to 8 years can potentially yield returns ranging from 12 to 15 per cent.
Encouraging women to invest wisely, Nanda Padmanabhan suggests dedicating time to understanding the workings of mutual funds before opting for SIP investments. She advises starting with a passive fund like Nifty50, which aligns with the Nifty index and is suitable for beginners. Emphasizing the importance of patience, Padmanabhan recommends staying invested for the long term, even during market downturns, to achieve favourable returns.
Index funds, as per the investment platform Groww, mirror a specific index, comprising the same stocks and weightage as found in that index. However, it is advisable to seek guidance from a financial advisor before investing in these funds. If you have specific funds in mind, feel free to share their names, and I can provide more information or assistance.
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