Why Should Every Woman Invest in Mutual Funds?

Why Should Every Woman Invest in Mutual Funds?

In today’s era, women are more confident and independent. Most women are bread earners with their male counterparts. May it be homemakers or working women, it is essential for every woman to think about being financially independent.

Women today are empowered enough to make their own investment decisions. They have manifold accountabilities to attend to. It certainly makes it important for women to be aware of ways to be financially healthy. Mutual funds in India can prove to be a suitable investment vehicle for women. Mutual funds offer simplicity, flexibility, liquidity, variety, accessibility, and affordability.

Let’s explore more about how mutual funds prove to be beneficial for everyone and why every woman should invest in Mutual funds?


Women's Day: Can women actively co-manage investments with their spouse? - The Financial Express

  • High returns than FD- Most Indian women think Fixed Deposits to be a good and risk-free option when it comes to investment. However, it is essential to understand that though low-risk, Fixed Deposits offer low returns. With SIP mutual funds, one can get higher returns.
  • Allows you to start small and build wealth in the long run- Many women hesitate to invest just because they think they don’t have enough money. A key benefit of mutual funds is that you can start with what you have. Mutual funds prove beneficial to start investing in small amounts regularly and build own wealth in the long run. Investing in mutual funds via a SIP (Systematic Investment Plan) proves to be a simple way to keep your investment plans on track.
  • Liquidity: This is another major benefit of investing in mutual funds. Simply put, you can redeem the units at any point in time. No need to worry about the investment term you selected, as money is not blocked until maturity. One can withdraw money from your MF at any time. If you withdraw it before one year, you may need to bear a 1% exit load. If you want to pause or stop SIP, there is no charge or penalty.
  • Easy and quick accessibility- This is another advantageous edge of investing in mutual funds. As mutual funds can be easily traded, ease of use and low cost make them accessible.
  • A mutual fund comes in many types and styles- With numerous options to choose from, including bond funds, money market mutual funds, target-date mutual funds, sector funds, balanced funds, and stock funds; mutual funds let you invest in the market smartly and build a diversified portfolio at a low cost easily.
  • Disciplined investing- Mutual funds help develop a habit of disciplined investing as you have to invest a fixed amount each month towards your SIP mutual fund. This surely makes you plan your monthly budget and also restricts you from spending money wisely and avoid impulse purchases.
  • Inflation-Many women believe in the habit of keeping money safe as it is at someplace in the house; however, it actually depreciates the value of money year on year. By investing in mutual funds, you can build wealth gradually, and thus, you can fight inflation effects in the long term.

All in all, there are manifold benefits of investing in mutual funds. However, before starting to invest, talk with professionals to understand different types of mutual funds, which will surely help you head towards a healthy financial future.