The question has two parts. First, why should women start investing, and second, why mutual funds.
Let’s talk about the first part. We are in an age that’s constantly at a war against gender stereotypes and looking for more equality. Having said that, even today, a large number of women are dependent on male family members, for not just putting the bread on the table, but to ensure their secure future as well. Financial planning isn’t something a lot of us women are encouraged to take interest in. We’ve seen women of our family manage our homes and household expenses expertly but, how many of us have grown up seeing them making an investment call?
Despite earning well, we women refrain from making investment decisions because of the fear of the repercussions of a bad investment. But we need to ask ourselves, how will we ever learn, if we never dare to take the first step? Women need to take that leap, trust their skills, and start working towards making investment decisions for themselves.
Now coming to the second part of our question, why mutual funds.
An investment journey must begin with the identification of goals. Some of our most prominent goals are higher education, childbirth, childcare, or retirement planning. In addition, we women should also invest to build a corpus for any uncalled emergencies. After listing out the goals, the next step is to calculate the amount required to attain the goal and also the time horizon for each goal.
Now comes the time to decide where to invest your money to attain these goals.
Fixed deposits are traditional favourites since they guarantee the principal amount and fixed returns. However, FDs do not beat inflation.
Investments need to be diversified across various asset classes for better returns. Investment in mutual funds will offer such diversification into various asset classes such as equity and debt, based on your risk appetite. Investing in mutual funds will help you use the power of compounding. It can work wonders for you if you invest wisely. Compounding is a simple yet powerful concept that has a multiplier effect. The longer you invest, the more your money works for you to build your wealth.
Start small if you are anxious. There are various systematic investment plans (SIP), which allow small investments as a starting point. This is important because it will help you gain confidence in your capabilities as an investor. And secondly, because it will help you shape your future as per your requirements.
Being in control of your investments lets you have a say in your financial future and that of your loved ones. It takes care of two very important factors when it comes to financial stability– uncertainty and dependency. So ladies, take the reins of your future and start investing.
Similar blog you may also like to read – Best Mutual Fund Plan for Girls
Smart Money February 23, 2024
ULIP Vs. Mutual Funds: Which is the Better Investment Option?
On the road to financial freedom and empowerment, women have several investment options available for them to choose from. Two among them are: ULIPs and Mutual Funds. In this blog, we’ll cover ‘what is ULIP plan?’, how ULIP works and the difference between ULIP and mutual fund. Read on to find out which between the … ULIP Vs. Mutual Funds: Which is the Better Investment Option?
Investment Strategies During Economic Downturn
Every woman must have heard the words, ‘recession’, ‘economic downturn’ or even ‘market crash’ while watching the news. These terms can be scary and it can lead a person to panic. But, as a woman on LXME, you should know that there is no reason to be scared. In this blog, we’ll talk about what a … Investment Strategies During Economic Downturn
Smart Money Uncategorized February 21, 2024
Empower yourself with LXME’s Fixed Deposits
Invest in Fixed Deposits: Target High Returns with LXME Welcome to LXME, where empowering women to become astute money managers is our mission. We are thrilled to introduce our newest offering: Fixed Deposits (FDs), tailored exclusively for women who aspire to secure their financial future. With LXME’s Fixed Deposits, you can invest in FD schemes … Empower yourself with LXME’s Fixed Deposits