Why women need to be active investors?

In a survey conducted by DSP Mutual Fund it was found that only 33 of women make independent investment decisions without being encouraged by their family Unfortunately such reservations can hamper your ability to generate wealth efficientlyIn todayrsquos financial market neither lack of knowledge nor insufficiency of liquid finance need be hurdles towards investing You can get started with the right instruments without a large corpus by researching investments online Further issues like the genderpay gap make investing even more crucial to your financial healthWhy should you investHerersquos a brief rundown on why women should invest and how to get startedbull Achieve financial goalsThe returns from your investments can help you work towards your short and longterm goals without depleting your savings You can finance your childrsquos higher education your wedding an international holiday and even build an emergency fund by using the right instruments like fixed deposit mutual funds stocks equities etcbull Gain complete financial independenceAs per the 2019 Monster Salary Index women in India are paid 19 less than men with only 1 improvement from 2018 proving that bridging the genderpay gap is still a distant reality Investing makes your money work for you helping you gain financial independence and set up sources of additional incomebull Work toward your retirement corpusConsidering the slow pace in which the genderpay gap is being bridged saving for retirement can be a task Therefore to secure a sizeable corpus itrsquos crucial that you build your savings through investmentsWhy your savings are not enoughThe finances you park in a savings account while safe grow at an interest rate of about 4 With retail inflation in January 2020 spiking to 759 an alltime high since May 2014 the worth of your savings is considerably reduced In effect when adjusted for inflation you could be earning negatively when you simply lsquosaversquo The better route is to create an investment portfolio whose yields combat and outmatch inflationHow to start investingFor women seeking smarter ways to grow their savings herersquos a rundown on how to get started bull Do your researchBefore you venture to make your first investment learn the pros and cons of various instruments know your prospective returns and evaluate how the risk margins align with your financial and wealth creation goals You can gain information on the internet and then take the help of a professional financial counsellorbull Chalk out your financial goalsWhen strategizing ensure that pay heed to womenspecific factors like income disparity and longer life expectancy than men This way you can ensure that your portfolio yields sufficiently and in a timely manner toobull Start investing earlyConsidering that women outlive their male counterparts by at least 6 to 8 years making the decision to start now is always beneficial This will help you grow your wealth through the power of compound interest over a longer periodbull Diversify your portfolioTo strike a balance between risk and returns diversify your portfolio with marketdependent and safe instruments so as to earn handsomely and hedge yourself against losses as wellWhere should you start investingAmid recent turmoil in the banking world and the continuous market volatilities it may get difficult to decide where to invest Herersquos a rundown on the best investment options to help you grow your savings bull Secure your retirement with PPFs and NPSBacked by the Government a Public Provident Fund provides security and attractive returns making it the perfect investment option for your postretirement plans It currently offers an interest rate of 790 and has a lockin period of 15 years which can be further extended in blocks of 5 years This investment option is available to both professional working women and homemakersYou can also invest in the National Pension Scheme which employs a unique blend of equities government bonds and corporate bonds This too has a long lockin period making it ideal for postretirement and longterm financial goals Additionally both these investment options provide tax benefits under Section 80C of the Indian Tax Actbull Enjoy higher returns via equitiesInvesting in mutual funds via a Systematic Investment Plan SIP for instance helps you march towards your goals with confidence via the path of enhanced returns You can also invest in an EquityLinked Savings Scheme to enjoy tax exemptions under Section 80C of the ITA However the current market downturn has most investors worried and you may encounter fluctuations in your returnsbull Get guaranteed returns by investing an FD Company deposits like the Bajaj Finance Fixed Deposit offer returns at a rate of up to 780 for new customers and 805 for senior citizens Along with a flexible tenor ranging between 12 to 60 months you can invest in an FD to meet your short and mediumterm goals The Bajaj Finance FD also has to its credit ICRArsquos MAAA and CRISILrsquos FAAA ratings and these point towards timely interest payoutsIt is worth mentioning that if you are a young earner you can start investing through bitesized contributions by setting aside a sum of Rs5000 or more every month Through a Systematic Deposit Plan you can then reap all the benefits that FDs offer without having to make a large initial investmentWhether you aim to maximise your savings accumulate a bountiful corpus for your retirement or gain financial independence wisely investing your wealth will help you attain your goals When considering FDs remember that with the announcement of LongTerm Repo Operations and a potential repo rate cut in June 2020 now is the best time to secure an attractive interest rate If you wish to partner with Bajaj Finance simply book a Bajaj Finance online FDCatch up on all the latest Crime National International and Hatke news here Also download the new midday Android and iOS apps to get latest updates