September 29, 2018
The world of finance and financial products is largely male-dominated. Men are always the ones to keep track of the money and plan household finances. They make all the financial decisions for their own lives and often are in charge of the money earned by the women in their lives as well. Thanks to this, there is a gap, both in investment and knowledge about personal finance between men and women. Not surprisingly, there are more male financial advisors than females.
However, this gap can easily be reduced if women were to step up and take charge of their own finances, instead of relying on their fathers and husbands to do so. As a woman, all you have to do is ask questions and educate yourselves on the various products available in the market, and learn about the nuances of the available investment options for women.
You can also hire a professional financial advisor to help you out with your investment if required. An advisor would be able to help you see the big picture and build a diversified investment portfolio to meet your financial goals.
Why women should invest in financial products?
Here are a few good reasons why women should invest in financial products:
1. To build an emergency corpus
It is important for women to create a corpus for emergencies. Ideally, this amount should be equal to 6 months of your family’s expenses. A good way to create this corpus is for you to save a part of your salary and invest it in fixed income investments, like FDs for women. These provide guaranteed returns, as they are not associated with the market performance.
Therefore, with FDs, there is no risk of losing your money. For instance, Bajaj Finance Fixed Deposit is a great FD option, that comes with high-interest rates of over 8% and flexible tenors ranging from 12 to 60 months. An FD calculator will tell you the returns you will get.
2. To be retirement ready
Women generally live longer than men. So, it is important that they take their retirement finances seriously. Investing in a retirement plan/systematic investment plan (SIP)/mutual funds when young, helps create a huge corpus by the time you retire. FDs for women is a wise option since they lock away a part of your money for a specific tenor. Moreover, FDs offer periodic interest returns according to your choice (quarterly, half-yearly, or annually), that can act as an alternate source of income. What’s more, you can invest in FDs as a senior citizen as well. In fact, FDs come with loads of benefits for senior citizens. Not only do they offer higher interest rates, but also offer greater tax exemption.
3. To meet all their financial goals
Women are equal participants in the family, and as your life stage changes, there are bound to be financial goals that you may want to meet. You will want to pay for your dream home, your children’s education, secure your retirement, or maybe just travel abroad.
Whatever your goal, it is important that you have a financial plan in order to fulfill that ambition. Investing in relevant financial instruments will help you build the desired corpus to address short and long-term goals.