The participation of women in the workforce has risen substantially in the last few decades.
From finance to management, to sales, women have excelled in all types of jobs.
However, just having a stable source of income is no guarantee of a stable financial future. Investing surplus money into a mix portfolio is as important as earning well so that you can achieve your Life Goals. Many working women who plan to invest and manage their finances may face difficulties in accessing credible information.
Questions like
how to invest 💸 money?
where to invest
Needs to be answered to make the investing journey easier for women.
There are varieties of investments available ranging from tax-saving investments to long term investment that helps in delivering desirable returns over the long run provided you have invested in a disciplined manner.
Here are 5 investment tips for women
Investing money without a plan is like playing football without the goalposts. Allotting random amounts of money to different investment instruments can backfire without a proper plan. Decide how much to invest and for what period, you can take into account other factors like age, occupation and liabilities.
2. Start early
The thought of saving for the future comes later in life. The scenario is relevant even for working women. Starting late in life has various disadvantages. The biggest drawback of thinking about investing at a later stage in life is the loss of compounding gains. If you start saving and investing early in life, even with a small amount, the seemingly small amount will compound over time and become a substantial sum over the long run. Another advantage of starting early is the availability of a greater proportion of the income for investing in the early stages of life. There are relatively lesser responsibilities in the twenties, which gradually increases with marriage and kids as one enters the thirties. It is advisable to start early and invest in long-term investment to create wealth.
While investing in a financial product, the focus is always on the return on investment. However, while calculating, people often ignore the impact of taxation on the returns. The calculation is limited to the rate of capital appreciation over a period. The tax deducted from the accumulated corpus can have a significant impact on the final returns. It is therefore important to understand tax implications and invest in tax-saving instruments. A Tax-free pension insurance plan is one of the investment options with an exposure to Tax-free Pension that has remained unaffected from the long-term capital gains tax.
One of the most critical factors for wealth creation is systematic investments. Working women can start with a small amount in the early stage of their careers, but it is important to maintain the investment’s continuity. When money is invested systematically in long-term investment options, one can achieve their desirable life goals
5. Diversify
The golden rule of investing is to diversify investments across assets and instruments. Diversification helps in reducing the risks associated with an investment.
Regards
Disha D Mandavia
LIC Advisor
Message Disha Mandavia on WhatsApp. https://wa.me/918779787089
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