Which is the Best Investment Options for Women in India
When I first informed my wife to invest a small amount from her salary in each month, she was very reluctant. Few years back, when she was looking my investment portfolio and found the profit I made through systematic investments, she became bit curious to know more about investing. By utilizing this chance, I have informed her about the best investment options for women in India.
Today, she is a systematic investor in mutual fund and that is providing nice returns to her every year. There are lots of best investment options available for women in India to double or triple the money for long term and considering there status. Here are some:
Top investment options for women in India
Undoubtedly, women are the best money managers than men. They know how to save money better than us. This experience coming from managing the money for daily home expenses. They can easily save and invest money thus.
Traditional Investment Options for Women
If women are not willing to take risks, they have lots of investment options in India. Few of them are:
- Public Provident Fund,
- Kisan Vikas Patra
- National Savings scheme
- Post office time deposits
- Post office monthly income deposits
- Bank recurring deposits
- Gold
Above are few but not limited. These investments are capital protection oriented and will get decent returns upon the completion.
Other investment options for women
If we talk about the stock market investments, it is suitable for women capable to take high to moderate risks. This is the better option for working women and at their young age:
1. Stock Market investing
With acquiring required knowledge, women and invest successfully to the stock market. Direct stock market investment with goal and time line is mandatory and selection of stocks matters. It is highly recommended to the beginners to prefer blue-chip or large cap stocks with its products have high visibility in the market as well as having strong fundamentals.
For example, we all are using tooth paste and the well known brands are Colgate and Closeup. First is from Colgate and the second is from Hindustan Unilever. This is the method to identify the best companies by focusing the daily using items and finding its manufactures.
In this way lots of best companies are in market to identify and invest. Biscuits, cosmetics, consumer goods, food companies etc are very good to invest.
2. Mutual Fund investing
If do not have time to learn how to do direct stock investing, mutual funds are the best friends for women to prefer and invest. It offers systematic investment options that help women to invest a preferred amount in each month to a or multiple good mutual funds.
Few things to remember here is, the quality of the mutual funds to be identified by:
- Its star rating. Star rating with 5 or 4 can be best to prefer.
- Total AUM (Asset Under Management). How big is the asset of a mutual fund, that fund also good. This can be easily identified by online websites that provide information about mutual funds such as moneycontrol.com, Valueresearchonline.com, mutualfundindia.com etc.
3. ETF or Exchange Traded Funds
Exchange Traded Funds are another option for women to invest. It is a unique investment with combination of mutual funds and market traded securities. It also managing by the professionals on behalf of investors.
Major advantage of ETFs are, its diversification on multiple asset classed and that reduce the risks to a great extend. It is a very suitable investment option for women those are entering to investment as new.
4. Bonds
Bonds are like a loan that carried a fixed interest. Both corporate and government bonds are available in the market for women to choose and invest. It offers high capital protection as well as a fixed income during the maturity. Ensure to subscribe best, high rated bonds to add more safety to your investment capital.
Important points to remember
- Financial literacy and patience are two important qualities when planning to invest
- Identifying the risk tolerance is important
- Can find best companies by focusing the products using daily in the family
- Investment portfolio should have enough assets that diversify the portfolio to a great extend