Women's Day 2022: Should Women Start Investing For Their Secured Financial Future?

Introduction

Women wear multiple hats, from daughters and mothers to colleagues and professional workers. While some of their duties are unpaid, even paid work is not at par with men who work in similar roles. Research suggests that women make about 77 cents per dollar of what men earn worldwide. That is across industries and employment levels.

Moreover, women have longer lifespans compared to men. They also tend to work fewer years because of career breaks they may take for childcare and eldercare.

These reasons add up to the conclusion that women need to pay close attention to their savings and investments to ensure their financial security.

How Women Can Invest

While many women are adept at saving, squirrelling away money for emergencies, but investments often stump women. There are many reasons why investing eludes many women – a lack of information and investment knowledge, poor financial access and the historical stereotype of men handling money puts women at a disadvantage.

However, if women want to attain financial security and independence, they need to start making their money work. That means investing in suitable financial instruments. There is a range of financial instruments that women can invest in to grow their funds.

Additional read: 7 Steps to Wealth Creation

1. Fixed Deposits

For women who want to invest in financial instruments that are relatively secure, fixed deposits may be an excellent place to park money. They are liquid, provide stable returns and are better than keeping money at home or in a savings account.

2. Public Provident Fund

For working women, PPF investments can help build a corpus for retirement. As mentioned before, women tend to live longer than men. That means that they need a financial plan for their later years. PPFs provide guaranteed returns and are considered promising investment avenues for the long term.

3. Mutual Funds

Women who want to build a large corpus and multiply their wealth should consider investing in equity mutual funds. They provide inflation-beating returns and help with long-term wealth creation. For lower risk, debt mutual funds are a good option.

Additional read: Investing in mutual funds? Here's all you need to know

4. Stocks

Another financial instrument worth investing in is Stocks. In the long term, they provide returns that can help create wealth. Women investing in the right stocks can secure their financial future.

Also Read: Chapter 5: Different Investments Avenues – Real Estate and Gold

5. Other Investments

Apart from these financial instruments, women should also consider investing in other avenues such as bonds, Exchange Traded Funds (ETF), National Savings Certificates (NSC), etc., to multiply their wealth.

When Should Women Start Investing?

The sooner, the better. Women should start investing towards their financial future as soon as possible. This means investing with the first salary or the first income that they get. This will give them more time to build their investments and create a corpus that will see them through various stages in life.

Conclusion

There is no question that women should start investing for their financial security and future. The process should start as soon as possible. Even if it involves saving and investing small sums of money, they can go a long way in helping build a big corpus for emergencies and future requirements.

Sources

• 77 cents per dollar (Source – UN Women).