HOW SHOULD WOMEN CHOOSE THE RIGHT INVESTMENTS AT DIFFERENT STAGES OF LIFE?

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Women’s financial needs might not be the same as men. This is because women have a greater life expectancy than men and they are deemed to take a career break to tend to their caregiving responsibilities and expectations from the society. What’s more, lower digital and financial literacy among women as compare to men have made things worse. The lack of appropriate financial products for women have further worsen the scenario. As a result, despite women taking the leash in their hands apart from their domestic expectations, money management is still a domain largely influenced by the opposite sex gender – men. In this article we will understand the different types of investments that are ideal for women at different stages of life.

While women today are realizing the importance of financial planning, there are still hurdles copious when it comes to being at par with men in terms of money management skills. A successful investment plan does not merely require you to meet your savings target and invest in the right types of investment. Individuals often neglect an important aspect which involves taking into consideration your risk profile and financial goals that may change with changing scenarios.

What types of investment are ideal for women and why?

Following are some of the investments that might be suitable for women to achieve their financial goals:

  1. Mutual funds
    Mutual fund investments can be an ideal investment option for all types of investors – new or seasoned. This is because with different types of mutual funds offered to an investor, there’s a fund suitable for different investors with varying investing needs. You can invest in mutual funds either through a systematic investment plan (SIP) or one-time investment approach through lumpsum investment.
  2. Stocks
    If you are comfortable with exposing your investment portfolio to higher levels of risk in hopes of higher returns, then investments in stocks might be an ideal investment option for you. Investors with adequate knowledge about the workings and know-hows of market might consider investing a part of their assets in stocks to achieve significant returns in the long run. Stocks can be ideal to achieve your long-term financial goals.
  3. Exchange traded funds
    Gone are the times when investing in the stock markets required extensive research about the markets, making them beyond the reach of a regular woman. Enter exchange traded funds or ETF mutual funds. ETF funds are a basket of securities considering of various asset classes such as currencies, debt, stocks, commodities, equity, bonds, money market instruments, etc. ETF funds are traded similar to stocks on the stock market exchange. This provides investors with the diversification of the portfolio and the ease of trading in the stock markets.
  4. Fixed income instrument
    If you are a risk-averse woman, then you might consider allocating a significant part of your investment portfolio to fixed income securities. Examples of fixed income securities may include debt funds and government securities such as bonds, treasury bills (T-bills), government securities (g-secs), etc. Fixed income securities may be ideal for women looking to fulfil their short-term investment goals such as buying a car, or paying for your child’s tuition fees, etc.