Breaking the shackle of Myth – Women has all it takes!
Men do not possess any special skills to perform the Investment requirement of the family. As a matter of fact, Women in India have long been associated with judicious spending, organizing the expenses, saving every bit with discipline to ensure the family is never out of money. Women in general are risk averse, focuses on security of principal, are relatively more disciplined and patient. These are precisely the basic principles of long-term investment and wealth creation. Thus, women have all the prerequisites for becoming the Investment expert of the family.
Importance for Investment intellect - Why is it needed?
Women in India by nature are very good when it comes to saving. However, she needs to take it one step further by converting the saving into wealth. Today a large number of married women are unaware of financial possessions of their husband. Being self-reliant in financial planning may boost her self-esteem and develop a sense of independence within her. Being independent doesn’t necessarily mean earning for self. Rather how equipped are you to secure your future financially is what matters the most. It is important for such skills to be developed, as it places her in position to combat extreme and/or emergency situations like when a family member loses a job or a serious health condition or a sudden death in the family etc.
Road to self-reliance - How can women achieve it?
For starters the women should start getting actively involved in the financial planning. The husbands should start involving wives and guide them in acquiring the skills. She must be willing to understand the world of investment. She may find it difficult to grasp at first but with proper orientation and guidance she could master it. Investment planning doesn’t even need getting into complex products, traditional investment options along with Equity market and Debt market are sufficient to start the process of long-term wealth creation. This is more simplified with the onset of Mutual funds. Mutual funds are one of the simplest & easiest option to invest in Equity & Debt markets.
Decoding the puzzle – All about Investment planning
The first step is to take care of ‘The uncertain’ i.e., Life insurance & Medical Insurance. There is a misconception that women of the family especially the housewives are not required to get their life insured. Rather women should do it for the benefit of her child. She may choose to keep the child as nominee. Medical emergency may or may not occur, but when it does it has a huge impact on your available finances. Here, having a family medical insurance is preferred. After accommodating for the uncertain, what is left is your actual savings. To translate this saving into wealth, one needs to invest such money in financial avenues which increases its value as time passes. Mutual Funds could serve to be a favorable option. The Systematic Investment Plan (SIP) option suits well for women as she is meticulous and disciplined. SIP option enables investors to invest in periodic time like monthly, quarterly etc. Since women are good at saving, SIP route of investment bodes well for her. MF products come in all variations and forms like Debt, Equity, Hybrid, ETFs, Index, Sector focused, Theme focused etc. One must take experts advise in deciding allocation to individual asset classes to optimize the returns. One must have a clarity on their risk appetite and targeted financial goal, return expectation, horizon of investment etc. before investing in MFs.
With this, women can transform the family savings into long term wealth creation and secure her family financially. Today women with her progressive pursuits have a strong hold of her present, by building financial planning skills, she will have a stronger hold on her future that will make her more confident than ever. Afterall,” Earning money isn’t enough if one can’t use that money in times of crisis”.
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