As much as it is important to invest in the well-being of loved ones, it is most important today, for women to think of their future first. Investments can come handy for God-forbidden, bad times or you can liquidate later to further invest in higher education, crystallizing your dreams of having your very own venture or merely indulge in little pleasures of life.
There are many challenges women face in their daily lives; especially when it is about securing finances. Working patterns for women have changed over the past few years; they often go on breaks for marriage, pregnancy and children. Secondly, women have longer life expectancy. Statistics show, on an average, women live five years longer than men. Last but not the least, increase in divorces and relationship breakdowns have been witnessed vividly in the last decade. Believe or not this is the hardest truth that anyone may face. Moreover, this not only affects a woman emotionally, but even takes toll on her finances.
When it comes to investments, there are numerous options available for women. ETF (Exchange Traded Funds), gold and real estate are some of the best investment areas for women. Any kind of investment, which will remain unused for more than five years should be considered as a long term investment and it should be bought through ETFs only. In case of short term investments (less than five years), fixed deposits and mutual funds should be kept in mind.
Exchange Traded Funds basically deals with investing in equity markets. There are certain parameters that measure the growth of a country, like, SENSEX and NIFTY. Buying them through ETFs is the safest and best option. ETFs are arguably safest; and even better than mutual funds. Mutual funds never outperform their benchmarks and therefore, are quite risky too.
Nearly 100 per cent of women are confident about managing their day-to-day household finances and they are smart savers as well. The best investment option for a woman can also be Systematic Investment Plan (SIP) and gold. Well, SIPs help to invest even very small amount of money every month in mutual funds. It gives exposure to equity markets by investing in a disciplined and easy way. Gold has its own benefits, like, ease of purchase or sale and long term prospects. The next best option is buying a life insurance for returns and risk cover. For single mothers, it becomes necessary as it is income replacement for the kids in case of any misfortune.
Before making an investment, always ascertain in your mind whether the investment is for a long term purpose or relatively shorter term and then choose wisely. And always calculate well, before taking risks.