Mutual Funds for Women: Why and how to #invest4yourself
Read in: 3mins, Published On , 19 Nov 2020
Mutual Funds for Women: Why and how to #invest4yourself
Women display more patience when it comes to saving for their long-term investment goals. This is why Mutual Funds offer the perfect investment fit for them as it offers simplicity, accessibility, diversification, variety, affordability, and flexibility - all the attributes that women manage with ease. So, if you aim to look at the ‘big picture’, Mutual Funds may provide you with a more holistic approach to meeting your goals.
Here’s why you shouldn’t wait any longer to get started with Mutual Funds:
LONG-TERM WEALTH CREATION: Investing in Mutual Fund via the SIP route is a cornerstone of building your wealth due to the power of compounding. It helps you keep your investment plan on track as you focus on other priorities in life.
INFLATION-BEATING RETURNS: If you keep your money idle, it could depreciate year after year because of inflation. Investing in Mutual Fund helps you fights the effects of inflation in the long run.
START SMALL: You get the opportunity of investing small amounts of money over a longer period. With SIP, you can start with as small as Rs.500.
SAVES TAXES: According to Section 80C of the Income Tax Act, ELSS is a Tax-Saving Mutual Fund Scheme, with a lock-in period of three years, that qualifies you for a Tax deduction up to Rs.1.5 lakhs.
FIGHTS VOLATILITY: Investing via SIP allows you to take advantage of rupee cost averaging. It means you buy more fund units when markets are low. And less when it’s high, thereby helping you to mitigate the impact of volatility.
DIVERSIFICATION: Mutual Fund allows you to have a diversified portfolio by allowing you to invest across different securities such as Stocks, Bonds etc. So, with a single investment instrument, you can have multiple asset classes in your investment portfolio helping you lower the risks over time.
DIGITAL ACCESSIBILITY: The online mode of payment such as NetBanking, UPI and such can put your investments on autopilot, making your SIP investments faster, safer and convenient.
PROFESSIONAL MANAGEMENT: Your Mutual Fund investment is managed by a Fund Manager who analyses the
Fund scheme’s buying and selling decisions to help you earn good returns.
EASY REDEMPTION: If you need to withdraw your money, all you need to do is log into your Mutual Fund account online, click on the redemption button and confirm the transaction to receive your money directly to your bank account within the specified turnaround time.
How Index Funds can be your #firsteasystep
If you want convenience, low cost, and have a long-term goal to reach, try Index Funds. These are passive funds that track the performance of a specific index -NIFTY 50 or NIFTY NEXT 50. Rather than buying individual Stocks, Index Funds gives you the opportunity of owning a small piece of every company in the list.
Conclusion: The Wall Street Journal bestseller, 'Warren Buffett Invests Like a Girl: And Why You Should, too' reveals how Mr Buffet employs the patience and deliberative nature of a woman when it comes to making efficient investment decisions. So, be ready to make the best use of your powerful women-instincts by starting your investment right away.
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