Mutual Fund Investment Plans for Housewife
As a housewife, the responsibilities don’t end just with taking care of the family and the house. Housewives are also capable of making smart financial decisions and inculcating the habit of savings. It is often seen that housewives have a lot of saved money and instead of letting these funds sit idly in a bank account, a housewife can make use of the various investment opportunities that the financial markets have to offer. Mutual fund investments for a housewife are a great way to utilize these idle funds in order to generate returns and save money.
Investment Plan for Housewives through Mutual Fund
Mutual funds are an investment vehicle in which money from several investors is pooled-in together and invested in various securities like equity, debt, bonds or government securities. These funds are managed by highly-qualified, experienced and licensed fund managers who make investing decisions.
When selecting a mutual fund for housewife, there are numerous options available. Although the most important criterion while selecting a fund is the risk profile.
Tenure of Investments
Another important factor while making investment decisions is the tenure of the investment. Certain mutual funds like Equity Linked Saving Schemes have a lock-in period of 5 years. This means the funds invested can’t be redeemed until the lock-in period is over.
For other funds the minimum tenure is a day, while the maximum tenure is perpetual. In these kinds of funds, one can purchase the mutual fund on one day at a given price, known as the Net Asset Value (NAV), and can sell these funds on the next day. If the investment is done through the Systematic Investment Plan (SIP) route, an investor may invest a certain amount at regular intervals for a given period. The amount invested can be increased, decreased or paused as well.
Gaining higher profit in mutual fund investments
Investing is mainly done with the purpose of generating returns and earning a profit. Here are some tips on how you can maximize your returns from a mutual fund investment for a housewife.
One of the best ways to invest in a mutual fund is through SIP. It allows you to invest a small amount of money at periodic intervals. It can help in generating higher profits as an investor can get a better cost-price average and benefit from the power of compounding which is the process of the returns getting reinvested and earning returns.
Diversification is a great way to build a sound portfolio. One should invest in equity, debt and hybrid funds in order to benefit from appreciation in various asset classes. A diverse portfolio fares well in volatile times while generating profit.
Knowing your risk profile
In order to generate higher profits, it is important to stay invested for a long time. Investing in funds that meet your financial goals and risk profile is the best way to stay invested without additional stress. Knowing your risk and investing accordingly can help in making sound investment decisions.
How investing in mutual funds can secure a housewife’s future
In many cases, a housewife is not an actively earning member of the family. This increases the importance to plan for an individual’s future but also for their loved ones. Especially in the case of an earning member of the family passes away or is unable to work, having a secure financial future is extremely beneficial. Here’s how mutual fund schemes for a housewife can help:
- Investments made in mutual fund schemes can act as an emergency fund during times of need.
- Apart from the market risks, mutual fund investments are safe and secure. There are funds offering various degrees of risk and reward to investors.
- ELSS funds can help an investor save tax. These additional savings can be useful in the future.
- Being one of the most liquid assets, mutual funds can be sold easily in times of need.
- Investing in mutual funds through SIP inculcates the habit of saving as a certain amount needs to be invested regularly.
In conclusion, a housewife can successfully plan for the future by investing in mutual funds. They can start SIPs with as low as Rs 500. These investments help them to generate higher returns on the money they save.
Which mutual fund is best for housewife?
There are numerous types of mutual funds available. A housewife should select a fund that meets their financial goals and fits within risk appetite.
How can a housewife save money?
Investing in a mutual fund through SIP is a great way to save money as a small amount of money is invested into these funds at periodic intervals.
How can a woman grow financially?
The financial markets have become easily accessible due to the internet and developments in technology. A woman has an incredible opportunity to grow financially by investing in the various investment vehicles available.
Disclaimer: ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investments in securities market are subject to market risks, read all the related documents carefully before investing. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose.