Women's world is evolving every day. We aim for independence and self-reliance. We have the potential to cultivate colorful dreams and achieve difficult goals in life. And we know that financial freedom is one of the most important things you need to follow your dreams.
It's more important than ever for us women to invest wisely and plan for our financial goals. Understanding financial planning will help you take control of your financial future and make informed decisions about your money. Gaining knowledge about budgeting and investing can help women build financial security and work toward achieving their long-term financial goals. Additionally, financially literate women can serve as positive role models for their families and communities by sharing their expertise and helping others manage their finances.
Also read: International Women’s Day 2024: What are the 5 Ps to achieve financial freedom?
In today's society, any celebration that focuses on women must align with our evolving priorities. Gone are the days when the desire to get married and start a family consumed our every thought. In the past, every rupee he saved would go toward his child's wedding and future wifehood. But times have changed. Our horizons have expanded and our priorities have evolved. Today, young women want to receive a quality education, preferably at a prestigious institution, pursue a successful career, own property, achieve financial security, secure a comfortable retirement, and more. Masu.
To help women achieve these goals, traditional financial instruments appear insufficient and inadequate, especially in the context of high inflation and shrinking real profits. Depending on the growth rate of these investments, you may not be able to accumulate the required corpus within the specified period. The lower the growth rate, the longer it will take to reach your goals. But to achieve any financial goal, be it your child's education, wedding, home purchase, or retirement planning, mutual funds offer a variety of investment options that can generate wealth in the long run. Masu.Also read: International Women's Day 2024: How can women ensure long-term wealth creation?
MFs offer a variety of options for investors to park their funds in different asset classes such as stocks, debt (corporate bonds, government bonds, Treasury bills), derivatives, commodities, and exchange-traded funds (ETFs).
If your aim is to create wealth over the long term, investing in equity schemes can be a reasonable option. If capital protection is the objective, a debt scheme may be chosen. Depending on the investor's risk profile, a combination of equity and debt (hybrid schemes) can also be selected. There are a number of other solution-oriented schemes, such as retirement benefits, tax savings, and child welfare, that can provide women investors with excellent opportunities to grow their wealth.
There are several key features that make investing through mutual funds (MFs) attractive to women. First, MF offers an affordable price. Individuals can start a Systematic Investment Plan (SIP) with a small monthly payment of Rs 2 million. 500. It is the process of continuously investing a predetermined amount in an MF scheme. For women, her SIP is the most preferred option as it does not require a large initial investment. Moreover, the biggest advantage of SIP is the average rupee cost. This disciplined investment approach helps you navigate market fluctuations and capitalize on long-term growth opportunities.Also read: Women's Day 2024: What wealth means to women – explained
Accessibility is another important factor to consider when choosing long-term investment options. Mutual funds can be easily purchased through mutual fund distributors or directly through online platforms. This accessibility means women can easily invest in mutual funds with little effort. Investing in mutual funds from home through online platforms is especially valuable for busy mothers and working women. This ease of access also means that women can quickly and easily review and adjust their investments according to their goals and requirements.
In addition to the above, MF also has the advantage of liquidity. In case of emergency, you have the option to liquidate your investment. However, certain schemes may have lock-in periods. Some mutual fund schemes may incur exit load charges when you redeem all or part of your investment before a specified time. There is also a Systematic Withdrawal Plan (SWP), especially for people who need regular fixed income from their MF investments.
Finally, investments in certain plans can receive tax benefits. Investments in Equity Linked Savings Schemes (ELSS) are tax exempt. Additionally, when you withdraw funds through an SWP, you can only pay tax on the capital gains (profits generated from your investments) rather than the full amount. Such capital gains arising through investment in mutual funds may be subject to short-term capital gains (STCG) or long-term capital gains (LTCG) tax. Currently, the tax liability on capital gains from investments held for a longer period of time (currently more than one year) is lower compared to capital gains from investments held for less than one year.
In conclusion, MFs offer a vast array of investment options that suit your risk appetite and financial goals. So consult your financial advisor and start investing in mutual funds on this Women's Day. It is the best gift that gives you wings to your dreams and empowers you to face life's challenges with confidence.
Neha Khandelwal, Senior Credit Analyst, LIC Mutual Fund Asset Management Limited
Disclaimer: This disclaimer indicates that the views, ideas, and opinions expressed in the article are those of the author alone and not necessarily those of the author's employer, organization, committee, or other group or individual. Inform readers.
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