The current status of women in investing is not that great In india. Although 25 per cent of Demat accounts in India are owned by women, a vast majority of them are operated by the men in their lives.
Surveys have shown in the past that hardly 10 per cent of women make independent investing decisions. They are not participating in the decision making process enough.
Studies have shown that women are temperamentally better investors. They do more research, hold for longer and follow a systematic plan to invest. All of these are parameters of best practices for a good investor. Women also trade less than men which helps improve returns even by simply reducing transaction costs.
In a patriarchal society like India, money decisions are often made by the men of the family. Conversely, more women find discussions around money, investing and finances intimidating and daunting,” she points out.
Also women may even be better savers than men but do not participate in investing enough.
Best things working woman must know before investing
- “Investing is simple but not easy” Warren Buffet Once Said. Given the mushrooming of apps today, starting one’s investing journey is now quiet simple where any female can set up mutual fund SIPs with the click of a few buttons.
Experts advise that women can start small and eventually keep 6 months of expenses as liquidity for emergencies.
Women should Invest regularly and don’t buy products if you don’t understand them.
Women should notbe dependent on employee health cover alone. Industry experts suggest individuals to have one should get both term and health insurance as well as for their family.
Females should Start investing is asset allocation. Women should look at their finances and based on how much risk one wants to take, She should split 100 per cent into at least 3 basic asset classes like equity, debt, and gold.
With equity, females can have a NIFTY ETF, couple of mid and small-cap funds, an international fund (when it opens up again) and start a SIP and invest monthly.
With debt short term money can sit in fixed deposits, liquid funds and long term. Females can pick even conservative MFs that invest in government bonds backed by the RBI.
In gold, Females can buy gold ETFs or sovereign gold bonds which come with an 5-10year lock-in period. Once a year working women can check if the asset allocation has changed because the prices of your assets moved and then rebalance to reset it to your pre-decided allocation.
Most importantly, Females need to remember that it’s never too late to start investing. Most money is made through the compounding of returns and hence starting today is better than tomorrow