The story of the 21st century has been the story of women outpacing men in every field of day-to-day activities. From studies to jobs, women are fighting their way back to claim equal status. However, when it comes to investing, the story is still the same. Their reluctance and passive approach towards investing have been the same as it was a century ago. However, studies have shown that if guided and made aware, then women are more prudent in investing and choosing better investment plans than men. A simple example is that most of the educated women open an fd accountright in the early stages of their careers.
So, in this article, we will discuss tips regarding investing for women and how to get better returns from it. Before we go to the tips and specific investment plans, let’s have a look at the major reason due to which there has been reluctance among women towards investing.
Why Women Don’t Invest
- Pay Gap
The gender pay gap still exists in major developing as well as some of the developed nations. Due to the low amount of cash received per month, women don’t have a sufficient amount left to invest at the end of the month.
2. Lack of Awareness
Although the scenario has changed a lot in the tier-1 cities, the social fabric has not changed much in the cities from the lower end of the strata. Women are not taught about the responsibilities to manage their money and do be financially independent through investments like opening an fd account.
Investment Tips for Women
- Opening an FD Account
Fixed deposits are one of the best ways to put your idle money to work without exposing it to any risk whatsoever. The fixed deposit interest rate are much better as compared to interest earned by keeping your money idle in the savings account. Banks and finance companies like PNB Housing Finance Company offer very attractive fixed deposit interest rates to their customers.
2. Sovereign Gold Bonds
Women have always shown a liking for gold and related products. However, they have not been made aware of the ways through which they can leverage the power of this rare commodity. A sovereign gold bond is issued by the government where you will get a fixed return of 2.5% per year along with the growth in the price of gold. If you have a look at the rate of increase in the price of gold over the past few decades, then you will understand how attractive this scheme is. It is almost as attractive as opening an fd account.
3. Mutual Funds
If you want to earn more than what you earn by opening an fd account, then you can invest in mutual funds. However, mutual funds have the element of risk involves as the money gets exposed to the stock market fluctuations of it is invested in equities or related assets.
These are some of the ways through which women can start investing their money without putting a lot of effort in managing assets. Nowadays, an fd account can be opened by depositing a very small amount too, and hence, you can start small and keep building upon it.