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How Can Women Start Their Investment Journey?

How Can Women Start Their Investment Journey?

Women Start Their Investment Journey

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There still exists a massive gender pay gap worldwide, with women earning almost 23% lesser than their male colleagues despite doing the same work. Efforts are on to bridge the gap between women and men in terms of income. Until parity is achieved, it is vital for women to focus on investing and growing their money smartly. 

There are multiple investment opportunities today, with some being launched specially for women investors. If you are planning to grow your wealth through investment but are not sure about how or where to start, then this guide is for you. 

When is the Best Time for Women to Invest? 

As a woman trying to invest and grow your money, you must have wondered as to when is the perfect time to start off. Is it right after you get a job? Maybe it would be after a promotion? 

 Well, there can be no better time to begin investing than NOW.

If you ask women who have already been investing for quite some time, they would tell how they could have been further ahead having they started off a bit earlier. So, make sure to begin right away instead of waiting for that promotion or for that dream job. 

How and Where to Start Investing? 

It is crucial to understand that all forms of investments are not ideal for someone who is just beginning. There are certain investment avenues that are less risky or challenging than others. 

While taking your first steps towards investment, you need to find investment options that will provide a higher return on investment (ROI). Moreover, investing requires reviewing investment portfolios on a regular basis. This can become a challenging task considering women have responsibilities towards home and family in addition to their work. 

So, make sure to determine how much time you can provide. The time you commit will affect your choice of investment option significantly. 

Here are some of the most noteworthy investment options that women today can consider: 

ETFs are basically a basket or pool of securities that track a particular index such as the Nifty 50 or Sensex. These are quite similar to mutual funds. That said, unlike mutual funds, the units of ETFs are listed on stock exchanges. These aim to follow the respective indices and mimic the returns. 

All you need is a trading account and a Demat account to start investing in Exchange-Traded Funds. 

Mutual funds are ideal investment options for both beginners and seasoned investors. You can choose from a wide range of schemes (debt, equity, hybrid, etc.) based on your investment objectives and risk-bearing capacity. 

Mutual funds are managed by professional fund managers who invest the fund corpus in necessary securities to optimize gains on your investment. Investors allocate their funds either through a Systematic Investment Plan or via the lump sum mode. 

  • Stocks

 Also known as equities, stocks denote fractional ownership of a business or company. When you buy a share of a company, you own a piece of that business. You can receive exceptional returns by investing in stocks. That said, equity investing is meant for individuals with a high-risk appetite as the performance of stocks is impacted by market fluctuations.

Investment in equity will require active vigilance and rebalancing, thereby taking up significant time. 

Investment Tips for Beginners

You do not need to have detailed knowledge about finances to start investing. There are experts who will guide you and help in managing your investments. Here are some simple and useful tips that women investors can follow to fulfill their financial goals: 

  • Educate Yourself

Start your investment journey by learning about various financial instruments and investment schemes that are available. You can find all necessary information on the internet, from various apps, and from various workshops/courses available online as well as offline.

  • Invest via SIP

If you are planning to kick off your investment journey, then SIP is the right choice for you. As a beginner, it is natural to be unsure about investing a massive sum. With SIP, you can invest a specific amount at regular intervals (monthly, quarterly, semi-annually, etc.)

This mode of investment is easy on your pocket and lets you start with a small sum. Moreover, investing at a regular interval helps to inculcate financial discipline. 

  • Explore and Find a Suitable Mutual Fund

There are numerous categories of mutual funds to invest in. However, since you are a beginner, it is wise to opt for a less risky scheme such as a liquid fund. You may also go for ELSS funds that help to create wealth while providing tax benefits at the same time.

  • Stay Updated with the Market

As a woman who has to manage both work and home, it might not be possible to keep track of every market development. However, you can choose a platform that will provide all market-related information to help you know what’s going on. 

The platform that you choose should come with a simple user interface that is easy even for a beginner to handle.  

  • Opt for Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana is a government-backed deposit scheme that is launched particularly for a girl child. You can begin your investment journey by investing in this scheme to secure the future of your daughter. The corpus will help you to manage expenses related to her higher education or marriage. 

The maturity of the SSY scheme will take place 21 years after the date of account opening. 

Wrap Up

With rapid digitization, the process of investment today has become easy, hassle-free, and convenient. You can find multiple online fintech platforms through which you can compare various investment options before making a decision. The online application process is also much simple, smooth, and time-saving. 

However, you need to avoid being too conservative while investing, as this can lead to missing out on significant returns in the long run. 

If you truly want to be financially independent, own an investment portfolio of your own instead of leaving all investment decisions to your partner. 

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