When it comes to investments, the earlier, the better; traditionally, women in India have not been at the forefront of making investment decisions. However, the evolving landscape in India has seen more women entering the workforce and becoming financially sound.
The ongoing pandemic has also necessitated the need for having emergency funds in place.
All these factors make it more prudent for women to learn the ropes of the investment game, thus gaining better financial independence.
For those in need of funds, many lenders are now offering personal loans at attractive personal loan interest rates for those in need of funds, which will help them kick-start their investment journey.
How Can Women Start Their Investment Journey in 2022?
Though there are various investment options available today for the new age investor, all of them may not be ideal for a woman who is just starting her investment journey.
Let us explore key investment options for a new woman investor:
- Mutual Funds
Mutual funds are a good bet for all types of investors. New investors can start by investing in a systematic investment plan (SIP). Equity-linked savings schemes (ELSS) of mutual funds are eligible for tax deduction under Section 80 C of the Income Tax Act, 1961. So, women can also consider ELSS mutual fund plans.
- Stocks (Equities)
Equities are traded on the recognized stock exchanges and purchased via a Demat account in India. They ensure higher returns. However, owing to the associated market risks, returns from equities are not guaranteed. Women looking for long-term investments can opt for stocks but should actively manage their stock portfolio as they are influenced by market volatility.
- Exchange-Traded Funds (ETFs)
An ETF relates to various securities as part of a basket, including equity, debt, stocks, bonds, commodities, or currencies. ETFs get traded on the stock exchange, so investing in them offers the benefit of ease of trading in stocks and diversification of securities like mutual funds, ensuring higher returns.
- Fixed Deposits/Recurring Deposits
Fixed deposits (FDs), offered by banks and financial institutions, allow an investor to deposit a lump sum for a specified period at a fixed interest rate. Recurring Deposits (RDs), provided by banks and post offices, allow investment as a monthly fixed amount for a predefined period, earning a fixed interest rate.
Both FDs and RDs are a good investment option for conservative, risk-averse women investors who want complete capital protection plus guaranteed returns. However, returns are not high compared to stocks, mutual funds, or ETFs.
- Public Provident Funds (PPF)
PPF is a great long-term investment option for women investors, available across post offices and banks. PPF, a tax-free option, offers decent guaranteed returns with a lock-in period of 15 years. Women can start investing from Rs.500 up to Rs.1.5 lakhs every year. So, it suits all types of women investors, right from working women to homemakers.
- Employee Provident Fund (EPF)
EPF is another retirement-oriented scheme for salaried individuals eligible for deductions under Section 80C.
- National Pension Scheme (NPS)
Under NPS, investors need to stay locked in until their retirement, thus ensuring higher returns than PPF or EPF. However, the maturity amount is not entirely tax-free. The investor can withdraw only up to 40% of the accumulated corpus, and the balance is invested towards an annuity plan.
Conclusion
Women investors can now choose from the various investment options as per their investment goals.
After fulfilling personal loan eligibility, they can avail of a personal loan from key lenders like TATA Capital. Tata Capital also offers a personal loan EMI calculator for customising your funding needs.
