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    Top 6 investment plans for women in India

    The Top 6 Investment Options for Women in India

    Last Updated On 27-09-2023

    Investment is an essential part of life, irrespective of gender. But India witnesses far less participation of women regarding financial decision-making and investment. Only 64% of women invest in various low-risk assets. Others are unaware of the concepts and tools or lack funds.

    Yet, various financial institutions have dedicated schemes and policies for women investors. Whether you are a professional or a housewife, investment for women is crucial.

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    Here we have shared everything about investing for women and the tools which allow you to invest strategically for maximized returns.

    Investment Options for Women - Importance and Benefits

    Investment is the key to leading an independent and self-sufficient life. Though many women are working today, very few participate in aggressive investing. Even today, they depend on the men in the family for any financial decisions.

    Once you start to invest independently, it ensures financial stability and security and makes you more confident regarding your decisions.

    When the best investment options are available, everything gets easier to achieve, from the smallest desires to life goals.

    How Important Is Investing for Women

    Investment is as crucial for women as it is for men. Whether you are a working professional or a housewife, your money is hard-earned, and you would want it to grow. Here are a few reasons to start investing in the best investment plans for women:

    • You gain financial freedom and support your goals and dreams without depending on anyone.
    • The money grows with time if you choose the right investment plans, and as a result, realizing your life goals is more manageable.
    • Allows you to take breaks in your career without having to worry about the finances
    • Never get dependent even after retirement when you have maximized your savings through investment.

    When Is the Right Time for Women to Invest?

    You may wonder "how to invest money," but more than that, it is crucial to know when is the right time. Your timing significantly affects the return you get from the investment.

    Most financial experts agree it is wise to start investing as early as possible. The longer your money rolls, the better returns you get.

    Inflation is affecting interest rates everywhere. Hence, one must invest as soon as they can while they are still able to get better returns. Look out for the best investment options for females, which give a high return.

    Benefits of Investing

    From securing your future and coping with growing expenses to fulfilling your dreams- you must invest for many reasons. Here are a few such benefits to note:

    Financial Security

    The primary reason to invest is to ensure financial security in the distant future. Never get dependent on anyone, even when you are taking a career break or are a homemaker.

    Retirement

    Enjoy the same lifestyle even after retirement when you invest in the best investment options for women.

    Overcome Salary Gap

    A sound investment plan lets you overcome the salary gap with your spouse or anyone else. Make the most of your savings when you know how to short a stock or use various financial tools judiciously.

    Battling Fewer Work Opportunities

    Bypass hard times such as recessions and diminishing job opportunities when you invest strategically. You can patiently wait for the best career opportunity when you have a surplus of savings.

    Long Term Plan

    Plan for the future as you invest in the best investment options. Realize bigger goals smoothly, with you getting the maximum return on investment.

    Best Investment Options for Women

    The best investment option largely depends on the person's financial capacity and risk-taking ability.

    Professionals have the scope to invest aggressively and also take greater risks. But most homemakers prefer secured investment strategies.

    The best investment for women would vary from one person to another. A thorough understanding of types of funds and financial circumstances together determine the suitable choice.

    Mutual Funds

    There are different mutual funds available in the market. The choice depends on your investment objective and risk tolerance. If you are wondering how to invest in mutual funds- SIP or Lump sum are the methods. However, systematic investment planning (SIP) is preferred by women as you can start investing monthly with as little as Rs. 500. There are also schemes available for every woman investor based on their objectives and risk tolerance.

    Life Insurance

    Life insurance policies are not just limited to securing the financial future of your loved ones. Most policies have a pre-determined maturity period, after which you can claim a significant sum based on your investment. Several life insurance policies cater explicitly to retirement-based goals, helping you maintain an income source even after you stop working.

    Gold

    This is a favorite investment instrument among Indian women. Gold is bought as bars, coins, and jewelry on auspicious occasions as a tradition here. Investing in gold lets you hedge against market risks. You can also digitally invest in gold bonds or gold exchange-traded funds ETFs. Moreover, it is a liquid asset that provides inflating-defying returns eventually.

    Recurring Deposits

    Recurring Deposits, or RD, are convenient for women trying to save for the future. A monthly deposit is made for a fixed tenure, and interest is calculated based on that time for recurring deposits.

    There is flexibility regarding the month you choose, which can be as low as Rs.10. The investment tenure is also flexible, as you can choose from a minimum maturity period of 6 months to a maximum of 10 years. Lastly, you can withdraw it anytime, though there is a penalty if you do it before maturity.

    Fixed Deposits

    Fixed Deposits are suitable options for women looking for a guaranteed return after a fixed tenure. The interest rate varies from one bank to another, and the depositor can receive interest payments monthly, quarterly or yearly. You get tax exemptions under section 80C too. The Fixed deposit can be withdrawn anytime, but a nominal penalty gets charged.

    PPF (Public Provident Fund)

    Public Provident Fund is one of the safest and most reliable savings schemes backed by your bank. It is a risk-free investment and provides a fixed interest for 15 years. You can invest a minimum of Rs.500 and a maximum of Rs.150000 in a financial year. This scheme offers tax exemption under Section 80C of the Income Tax Act, 1961.

    Tips to Get Started with Investments for Women?

    Invest at the earliest, but make sure you research various topics like how to invest in mutual funds or how to buy stocks before getting started. Here are a few tips to help you wisely make financial decisions that maximize returns:

    Set Objectives

    First, you need to recognize the purpose of the investment. Are you saving to achieve meaningful life goals, like marriage or owning a home? Or is this for your future and retirement plan? Once the objectives are clear, choosing the best investment plans for women gets easier.

    Set Horizon

    Having a set investment timeframe can allow your investments to mature in a way that is aligned with your retirement planning. At the same time, you can choose different investment horizons for various financial goals. To determine the maturity goal, consider the specific purpose of the investment and set a timeframe accordingly.

    Understand the Risks

    Certain investment plans like mutual funds, stocks, and bonds have significant risks. You need to be far-sighted and determine whether you can take the risk.

    Understand the Returns

    You can easily understand the return by calculating the tenure, amount, and annual interest. Once you have a clear idea of the return, strategizing the investment plans becomes easier.

    Calculate Cost and Expense

    Do not ignore your household budget, cost, and expenses like medical emergencies, education, etc. Set these aside first, then determine how much you can save and invest.

    Understand Liquidity

    Liquidity means how quickly an asset can be converted into ready cash. Not all investment schemes allow you to withdraw anytime you want. Some even penalize for withdrawing untimely. You need to note all these factors while you invest.

    Know the Lock in Period

    Some investment plans have a lock-in period when you cannot withdraw the amount. Before you invest, make a note of this to plan your finances accordingly.

    Taxation

    The strategic investment significantly exempts your taxes under Section 80C of the Income Tax Act, 1961. Always clarify with your bank or the authorized institution the tax benefits you get by investing in these schemes.

    Frequently Asked Questions

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    Where Should Women Invest Their Money?

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    Women can invest in various financial instruments like Fixed Deposits , stocks, gold, PPF, bonds, and more. Among these, PPF and Fixed Deposits are completely risk-free options that homemakers prefer.

    Which investments can help women plan the future of their loved ones?

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    Life insurance is a great way to safeguard your financial future, as well as look after your family’s monetary needs in the event of unforeseen circumstances. Plus, life insurance policies come with a maturity period, after which you can withdraw the total amount + bonuses accrued.

    How Housewife Can Invest Money?

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    Homemakers can start with a PPF account or fixed deposit. Investing in gold is also a stable choice. There are a few mutual fund schemes as well where you can invest.

    What is the best investment option for women with kids?

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    For women aiming to secure their kids’ futures, life insurance is the most ideal option. Apart from providing death benefits for your kids, most policies also award a substantial amount after the end of the maturity period. The most notable benefit is that you can claim tax breaks on insurance premiums of up to ₹1.5 lakhs every year. Plus, the death benefits awarded to your dependents are tax-free.

    What Are The 3 Best Investments?

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    Recurring Deposits, Fixed Deposits, and PPF are among the best risk-free options. To invest more aggressively, you can try out stocks and mutual funds.

    Disclaimer:

    The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.

    PNB MetLife India Insurance Company Limited
    Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka IRDAI Registration number 117 | CIN U66010KA2001PLC028883

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    The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
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    Disclaimer

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    As your trusted life insurance partner, PNB MetLife is with you amidst the current COVID-19 outbreak. Our policies also cover COVID-19 Claims. In case of a Death Claim, kindly submit the signed Claim Intimation Letter mentioning the policy number, brief of the insured event and other claim documents on the email mentioned herewith. Please write-in to us at claimshelpdesk@pnbmetlife.com or indiaservice@pnbmetlife.co.in. You can also call us on 1800-425-6969 for death claims intimations and for any queries on Monday - Saturday between 10:00 am - 7:00 pm.

    PNB MetLife Insurance, amongst the trusted Life Insurance companies in India, aims to provide a wide range of Life Insurance products that suits the needs of an individual at every stage of his life. Life Insurance Plans range from Term Life Insurance PlansTerm PlanProtection PlansLong Term Savings Plans , Retirement Plans & Child Education Plan.

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