Financial Advice For Women Who Are Serious About Investing

Most financial institutions will tell you that the earlier you start investing, the richer you’ll get. And, this may well be true, because investments teach you financial discipline and help your money make money for you.

1. Can you recommend some key tax-saving investments for women?

Abhinav: There are various tax-saving instruments like Equity Linked Savings Scheme (ELSS), Public Provident Fund (PPF), Unit-Linked Insurance Plan (ULIP), NPS (National Pension Scheme), Life Insurance, National Savings Certificate (NSC), Fixed Deposits, etc. All these instruments provide tax relief to investors. However, Equity Linked Savings Scheme (ELSS) not only provides an opportunity to save tax but also delivers decent returns that can help to beat inflation. All other instruments offer a fixed return wherein the majority of cases, the returns are determined by the government.

2. How Can You Align Your Investments With Your Financial Goals?

Abhinav: Honestly, investments should not be made for the sake of saving tax; they should always complement one’s financial goals. With a careful investment strategy, it is possible to fulfil life goals like children’s education, retirement, among others. Each investment is different, but here are some key things to remember when you’re trying to find the right match for your financial goal: – Unit Linked Insurance Plans (ULIPs) can help one to meet various goals like saving for children’s education, but ULIPs are prone to fluctuations due to linkage with equities.

3. What are some long-term investments with good returns?

“Long term investment requires a financial commitment and fiscal discipline. They are known to deliver superior returns which can help one to fulfil financial goals,” says Abhinav. “For long-term, one must go for equity advisory and aggressive quality Mutual Funds. Equity Advisory is a simple product offering high-quality advice on what equity to buy, hold and sell. It is for people who want to stay committed for a long period, say 5-10 years.

4. How should you divide your investment portfolio?

Satyen says, “Building the perfect portfolio may be different for different individuals, however, there are a few basic rules which will remain common. First, you must build an emergency fund. Think of this as setting aside 3 to 6 months of living expenses. You could keep this money in your bank or liquid funds Once this is taken care of, think of investing for short term goals like a wedding or saving up for higher-education. You can do this by investing in any short-term asset that doesn’t risk your core amount.