Best Saving Schemes for Women in India

Women need to save and invest more than men do because of things like longer life expectancy, pay gaps between men and women, and taking time off to care for family members. These money-saving tips and different savings schemes for women can help women become financially independent, build wealth, and prepare for emergencies. These make it easier for women to build a strong financial future. If women take these chances, they can be safe and financially free in the long run.

Now it’s time to learn about saving schemes for women

Let’s look at some of the best saving schemes, including LXME and other Post Office Savings Schemes.

1. Mutual Funds

A Mutual Fund pools money from various investors and puts these funds into different assets such as equity, debt, gold, etc., depending on the specific scheme chosen by the investor. It is professionally managed and monitored by a fund manager whose goal is to generate returns for the investors. There are various types of mutual funds, however, the main 3 types are:

Equity Mutual Funds

These mutual funds invest the pooled money from investors primarily in stocks/shares of different companies. Compared to other investment options, equity involves a higher amount of risk, however, it’s a long-term asset class where the risk is mitigated when you allow time for your money to grow and aim at generating inflation-beating returns and benefit from the power of compounding. These are market-linked instruments and, therefore, don’t provide fixed returns.  The returns vary as per the fund’s performance.

You can check out LXME app investment for women for LXME’s equity mutual fund portfolios which are well-researched, diversified, and curated by experts.

Debt Mutual Funds

These funds tend to invest in fixed-income instruments such as corporate and government bonds and money market instruments. These are suitable for your short-term goal (less than 3 years) and are an essential part of the overall asset allocation of the investor which offers you the benefit of power of compounding. These are market-linked instruments, therefore, don’t provide fixed returns.  The returns vary as per the fund’s performance.

You can check out LXME’s Debt Mutual Fund portfolios which are well-researched, diversified and curated by experts.

Gold Mutual Funds

Gold Mutual Funds are mutual funds that invest in gold and different gold-related assets including Gold ETFs on your behalf. They act as a hedge against inflation, and market uncertainties and allow investors to invest in gold in a smart way. These are market-linked instruments and give you the benefit of the power of compounding, therefore, don’t provide fixed returns.  The returns vary as per the fund’s performance.

You can check out LXME’s Gold Mutual Fund portfolios which are well-researched, diversified, and curated by experts.

2. Sovereign Gold Bonds (SGB)

Sovereign Gold Bonds(SGBs) are issued by RBI on behalf of the Government of India, allocated in units where each unit is equivalent to 1 gram of gold. Capital gains arising from SGB’s are exempt from the Capital gains tax if the bond is held till maturity of 8. Here you can earn additional interest income of 2.5%p.a over and above capital appreciation/returns you’ll get from gold price rise.

3.  Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana is a government investment scheme in India aimed at supporting the financial future of girl children which will help parents save for their daughter’s higher education and other expenses. The prevailing interest rate is 8.2% p.a. compounded annually, however, it cannot beat inflation over the long term.

4. Public Provident Fund(PPF)

PPF is a government-backed savings scheme open to Resident Indians, parents can open an account on behalf of their child. It offers a fixed interest rate, currently at 7.1% p.a. which is compounded annually, and it’s revised every quarter by the government. PPF has a maturity period of 15 years, providing a secure investment option for long-term savings. However, it cannot beat inflation over the long term.

5. Mahila Samman Savings Certificate – 

Mahila Samman Savings Certificate is a one-time small savings scheme for women and girls announced in Budget 2023. It will be available for 2 years i.e from April 2023 – March 2025. It offers a fixed interest rate of 7.5% p.a. compounded quarterly and allows a minimum deposit of Rs.1,000 and in multiples of Rs.100. however, it cannot beat inflation over the long term.

6. National Saving Certificate (NSC)

The National Savings Certificate (NSC) is a savings option by the government that is backed by a fixed-income investment scheme offered by India Post. These certificates earn fixed interests to provide stable and long-term income. The prevailing interest rate is 7.7% p.a. compounded annually, however, it cannot beat inflation over the long term.

7. Employee Provident Funds (EPF)

EPF is a savings scheme offered by the Employees’ Provident Fund Organization (EPFO) that aims to provide retirement, pension, and insurance benefits to employed individuals. Under this, both employer and employee contribute 12% of an employee’s basic salary to the scheme. EPF duration of maturity is up till retirement.

8. Fixed Deposits, Recurring Deposits – 

Both FDs and RDs are fixed-income products available at major banks and financial institutions. These are low-risk investment options that offer fixed returns ranging from 3-8% based on the tenure and varying among different banks, the interest for FDs can be compounded at different frequencies like monthly, quarterly, semi-annually or annually, while RD interest is compounded quarterly. You can consider these options for your short-term goals. However, it cannot beat inflation over the long term.

These saving schemes for ladies or the best saving schemes for women provide a solid foundation for planning your child’s future, retirement, or simply maintaining a financial cushion. Start now and see your savings increase!

In conclusion, having a mix of different investment options is key for women to achieve financial security and independence. By exploring different investment options, women can build a strong financial foundation. 

“Don’t put all your eggs in one basket”, diversifying your investments helps reduce risk and increase potential returns. 

Start early, stay consistent, and take control of your financial future with LXME’s goal and time based portfolios which are well-researched, diversified, and curated by experts, where you can invest money online. 

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