In today’s world, men and women are equal in all fields and even ahead of men in some. Looking at any profession be it, doctors, lawyers, managers, software, women are progressing in every direction. There is a general misconception that men are better than women when it comes to handling investment options. Women are as much a part of the world of investments as men. From HCL Technologies Chairperson Roshni Nadar Malhotra to Biocon Founder and Managing Director Kiran Mazumdar-Shaw, women are not just heading giant corporations, but also raking in the moolah they so very well deserve.
Investment Is Beneficial For Every Woman, Working Or Otherwise
A housewife may not be earning but their importance and value to the family are immense. They save money from whatever small amount they are handed and that is what comes as a surprising saving during any incident.
The portfolio of a working woman also depends on her risk-taking appetite and goals regarding finance. There are no shortcuts to anything be it life or wealth creation. The financial responsibilities hike up when you start settling into life with family and kids. For everyone but especially women, they need to secure financial security for themselves and their loved ones.
There are so many different investment options in the market. Some are high-risk and some low. While choosing the options you need to check how much risk you are willing to take.
10 Short & Long-Term Investment Options With High Returns
There are a ton of different investment options but it all varies and depends upon one’s requirements and risk appetite.
1. Low-Risk Investments
Investors with low-risk tolerance looking for almost no volatility in the investments look for these types of investments. Most retirees who have spent decades saving up fall under this category. Government saving schemes and fixed deposits fall under this category and suit the needs of low-risk investors.
These investments are not linked to the stock market and are usually governed by the interest rate movements of financiers. The returns are assured and the investor is required to lock in the amount for a long period to gain a substantial profit. This type of investment is the best investment plan for monthly income.
2. Medium-Risk Investments
Investors looking for comparatively higher return rates and are willing for moderate risk invest in these types of investments. These are investments that have a certain amount of risk but the return rates are also higher. Debt funds, balanced mutual funds, and index funds are some examples of this type of investment.
These carry an element of debt and stability but these may also lead to losses from the principal amount. These also do not allow a regular fixed income due to irregularities in earnings.
3. High-Risk Investments
For investors with a deeper knowledge of securities and a high tolerance for risk, these investments work best. The level of risk is very high but there is also no limit for gains. Stocks, equity mutual funds, and derivatives all fall under this category. Mutual funds are the best investment plan with high returns.
These types of investments can give huge returns but one should know when to put the money in and when to stop and pull out the money with huge gains. The quantity and time for these gains are not fixed. Let’s look at all the different investment options for women.
10 Investment Plans For Women
Public provident fund(PPF) is probably one of the best investment options. It offers complete tax-free benefits as well as a steady income. It is the ideal risk-free option. Up to Rs.1.5 lakh can be deposited and the interest keeps compounding annually and credited at the end of every year. It doesn’t provide quick returns but it does offer stability and decent returns after 15 years. The tenure can be increased in blocks of 5 years after the initial lock-in period.
2. Liquid Funds
For investors looking for short term investments, liquid funds are ideal. It is a type of mutual fund that invests your money in short term government certificates or securities. The investor can draw out the money from these investments anytime. It can act as the best short term investments in case of emergency.
3. Life insurance
One of the biggest mistakes made by housewives as well as working women alike is not buying life insurances. Life insurance means protection against life risks. If you and your spouse are both working and only one of you have life insurance it means that in case of any life risks, it comes down to one source of income. So it is really important to invest enough in life covers. It is also important for single women with dependent parents. The earlier you join, the better because the premium gets only expensive as you get old. The premium amount depends upon certain factors like nicotine and tobacco use, cancer, heart attack, driving record, etc.
4. Post Office Monthly Income Scheme
It is also known as a post office fixed deposit. It is valid for a tenure of 5 years. You can invest from 1,500 to 4,50,000. It is highly beneficial for women and retired people. It is the best investment plan for monthly income.
5. Health Insurance
According to studies, women not only live longer than men but they also utilize more medical services apart from reproductive care. This is a strong case for working women as well as housewives to invest in separate medical insurance. Settling as a dependent for the family insurance will not do. Also, there is a maternity benefit. Without the insurances, any sudden expenses in case of any incident could cause a number on the family’s budget.
6. National Savings Certificate
NSC is a fixed income investment scheme that can be opened from any post office. These investments are best for small to mid-income investors. Like PPFs, it is also one of the best investment options. It’s a secure and low-risk investment. There are only 2 fixed maturity periods – 5 years and 10 years. There is no maximum limit on the purchase of the NSCs but only up to 1.5 lakh earns you a tax break.
7. Employee Provident Fund
It is one of the most widely used investment schemes for women who are working. The tax-free interest and the maturity amount ensures a very good growth to your money.
8. Mutual Fund
Mutual funds are ideal plans for high returns over a long time. They also come with a moderate to high risk. It is a market-linked investment alternative. It is also the best investment plan with high returns.
9. Fixed Deposit
It is a low-risk investment with lucrative returns. By investing in fixed deposits, you can get assured returns after a fixed interval of time. FD monthly income scheme allows assured returns every month. It is also one of the best investment plans for monthly income.
10. Savings Account
They are one of the most preferred choices for most people for short term investments. It may not be the best short term investments unless you often need access to the funds. It offers maximum liquidity.
You can see how there are so many different types of investment plans to cater to everyone’s needs. You can choose a long term plan as well as various short term investment options. It all comes down to the risk factor and one’s appetite for it and also their requirements.
6 Useful Money-Management Tips For Women
A few tips to manage money better:
- Save first and spend later. It is one of the most important tips
- Creating a comprehensive budget bit of help
- Credit card purchases can be risky and should be done with thorough planning
- Set your goals and track your expenses
- Start investing in various funds
- Ensure protection from sudden emergencies like medical emergencies
To make a smart investment, it is essential to know all the types of plans and the ones that you require. Savings and investment are different. Savings is considered an aloof way of collecting wealth and a few proper investment plans can also help you create more wealth. Before investing in anything, you should have a clear idea of it and be aware of all its risks as well as its benefits. A proper investment plan is extremely essential for everyone especially women, be it working or not.