Women are less likely to stop their SIPs during a stock market correction, which is the best approach to generate wealth over time.
Women are cautious investors and follow a disciplined approach to investing. Earlier, Nitin Mathur, CEO, Tavaga Advisory, says, “a handful of women used to take their financial decisions on their own, while others depended on their male partners to make decisions for them. It has now become a thing of the past.”
For example, women prefer to invest in equity funds through systematic investment plans (SIPs). It is a method of regularly investing small amounts in mutual funds and helps one avoid timing the stock market. Moreover, women are less likely to stop their SIPs during a stock market correction, which is the best approach to generate wealth over time.
Here are various ways women can invest apart from traditional methods of investment in equities;
1. Buying Gold – It is regarded as one of the top choices when it comes to investing and buying a hedge against inflation. Mathur says, “Gold can be proven as a safe investment in the long term. Gold as an investment class is particularly suitable for women for their intrinsic value too.” Buying physical gold can be cumbersome hence, investing in gold through ETFs is a better alternative.
2. Silver ETFs – Next up on the list is silver ETFs. “ETFs are baskets of securities with various assets underlying. One such example of ETF is Silver ETF which has silver as its underlying asset,” adds Mathur. It can be bought and sold on the stock exchange making it flexible to trade and invest.
3. Public Provident Fund – It is one of the most popular ways of investing in India and is available in banks and post offices. Annual investment in PPFs ranges from Rs 500 to Rs 1.5 lakhs. PPFs have a tenure of 15 years and can fetch an annual interest rate of 8 per cent. PPF also provides tax benefits.
4. National Savings Certificate- Industry experts say it is one of the safest investment schemes in India and attracts 8 per cent annual returns. “Ideal for working women as it provides good interest on a regular basis. Withdrawal of cash is not permitted before maturity except in circumstances like death of certificate holder and joint holders etc.,” explains Mathur.
5. Sukanya Samridhi Yojana- Under this scheme, one can deposit an amount of up to Rs 1,50,000 per year for a girl child upto the age of 10. The interest earned and the amount received on maturity are exempt from tax.