Many women find investing to be scary and difficult. It can be overwhelming to have too many options, big words, and advice from all sides.
However, investing doesn’t have to be difficult.
Everything makes more sense once you grasp the fundamentals. Understanding financial assets vs real assets is among the first things to learn.
Both are important. Both can help you grow your wealth. But they work in different ways.
Let’s understand them simply and slowly.
Real assets: what are they?
Real assets are things you can see and touch. Physically, they are valuable.
Examples include:
- Silver and gold
- Real estate, such as a house or land
- Property
- Products such as agricultural land
Why women often like real assets
Many women feel comfortable with real assets because:
- They feel safe and familiar
- Gold has cultural and emotional value
- Property feels solid and long lasting
Why do women often like real assets?
Many women feel comfortable with real assets because:
- They feel comfortable, safe & familiar
- Gold has emotional and cultural significance.
- The property feels sturdy and durable.
Benefits of real assets
- They offer protection from inflation.
- They typically hold their value over time.
- They provide a feeling of safety.
Drawbacks of real assets
- They require a large sum of money to purchase
- They are difficult to sell quickly.
- Maintenance and storage can be stressful.
- Returns are usually slow
Real assets are good for stability, but they may not always grow your money fast.
Financial assets: what are they?
Financial assets are investments linked to markets and institutions. You cannot touch them, but they help your money grow.
Examples of financial assets:
- Mutual funds
- Stocks
- Fixed deposits
- Bonds
- PPF and other savings schemes
Investments linked to markets and institutions are known as financial assets. They help your money grow, but you can’t touch them.
Examples include:
- Mutual funds
- Stocks
- Fixed Deposit (FD)
- Bonds
- PPF & other savings schemes
Why are financial assets becoming popular with women?
- More women are selecting financial assets these days because: You can begin with small amounts
- You can easily track them on your phone.
- They can provide better long-term returns.
- They help you in achieving financial independence.
Benefits of Financial Assets:
- Higher growth potential over time.
- Easy to start and manage.
- More flexible than real assets.
- Great for long-term goals like retirement.
Drawbacks of Financial Assets:
- Market ups and downs can feel scary.
- Need patience and discipline.
- Short-term losses can happen due to market volatility (but staying invested for the long term can help you get inflation-beating returns).
Financial assets reward those who stay invested and think long term.
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Real assets vs financial assets: Which is better for long-term growth?
If your goal is long-term growth, financial assets usually perform better.
Historically, investments like equity mutual funds have given higher returns than gold or property over long periods.
But this does not mean real assets are bad.
The smart approach is balance.
Think like this:
- Real assets give safety and stability
- Financial assets give growth and freedom
As women, we often plan for many goals at once. Family, children, career breaks, dreams, and retirement. A mix of both helps you stay strong and stress-free.
There is no single correct answer for every woman.
Some women enjoy gold, while others prefer mutual funds. Most women find that a combination of both works best.
The key points are:
- Understand where your money is going.
- Invest for your own future.
- Do not rely solely on others.
When women invest, they do more than just increase their money. They build confidence, freedom, and peace of mind.
That is true wealth.
FAQs
What is the main difference between real and financial assets?
Real assets are physical items you can see and touch, such as gold or property. Financial assets are paper or digital investments, like mutual funds or stocks, that help your money grow over time.
Do financial assets carry more risk than real assets?
Yes, financial assets usually have more risk in the short term because market prices fluctuate. But over the long term, they often provide better returns than real assets if you remain invested and patient.
Further Read:
How Exit Loads Impact Your Scheme Returns