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Investment haven for women – Mutual Funds


According to World Bank data, while women in India represent 48% of the population, they only contribute about 17% to GDP, compared to 40% in China. For the year 2021, World Bank data states that the female employment rate in the United States was 46%, while in India it was 21%. Thus, for India to become a global superpower, it is necessary to have a more inclusive workforce, made up of skilled women, who drive overall economic growth.

However, in recent years, India has made efforts to increase women’s labor force participation and create a more gender-equal economy. These efforts include improving access to education and skills training, implementing policies and programs to support working women, addressing cultural and societal norms that discourage women from working outside the home, and encouraging private sector participation. By creating a more inclusive and equitable economy, India can unlock the full potential of its workforce and accelerate its economic growth.

Changing winds

With the expected economic growth in India, it is more important than ever for women to invest wisely and plan for their financial goals. Understanding financial planning can help women take control of their financial future and make informed decisions about their money. Learning about budgeting, investing and debt management helps women build financial security and achieve their long-term financial goals. Women who are financially literate also serve as positive role models for their families and communities. By sharing their knowledge and expertise, women can empower others to take control of their finances and build financial security.

One of the ways women can achieve their goals is by investing in mutual funds. Whether you’re saving for a down payment on a home or planning for retirement, mutual funds can help you grow your wealth and fulfill your dreams.

Saving for the long term can be a daunting task for many people, but as a woman you have a unique advantage: patience. This virtue is proving to be a huge boon in the world of investing, and mutual funds allow you to leverage this trait to build a robust financial future. When you invest in mutual funds, you benefit from the expertise of seasoned professionals trained to make informed investment decisions. By investing in mutual funds, you can build a solid financial foundation that can help you achieve your dreams and ambitions.

One investment, multiple benefits

When it comes to investing, mutual funds offer several benefits that make them an excellent option for women who want to save for the long term. One of the main advantages is simplicity. In addition, mutual funds provide the diversification, which helps spread risk across a range of different investment securities.

Another crucial advantage of mutual funds is the size of the ticket. Women may have different financial priorities or constraints, and mutual funds offer a variety of investment options with varying minimum investment amounts to accommodate different budgets. In addition, mutual funds provide flexibility by offering different types of funds that meet different investment goals and time horizons.

Accessibility is another essential factor to consider when choosing a long-term investment option. Mutual funds can be easily purchased through a mutual fund distributor or even online. This accessibility means that women can easily invest in mutual funds with little or no hassle. Investing in mutual funds from home through online platforms is especially valuable for busy mothers or working women to fit seamlessly into their lifestyle. This easy access also means that women can quickly and easily view and adjust their investments according to their goals and requirements.

Finally, the variety of mutual funds available in the market allows investors to choose one that fits their investment philosophy and goals. Asset Allocation Products such as Balanced Benefit Funds (BAFs) can be a good investment option for women who want to grow their wealth while minimizing risk. BAFs are mutual funds that invest in a mix of stocks and debt securities with the intention of balancing risk and return. BAFs may be an option for women because they provide diversification across asset classes.

To make the most of your hard-earned cash

Here are some tips for women before they start investing in mutual funds:

Set clear investment goals: Before investing in mutual funds, it is essential to define your financial goals and investment objectives. This will help you choose suitable investment funds that match your investment objectives and risk appetite.

Do your own research: Thoroughly research the mutual funds you want to invest in. Before investing, look at the fund’s philosophy, risk meter, historical performance, investment portfolio and expense ratios.

Diversify your portfolio: Diversification is essential to minimize risk in any investment portfolio. Consider investing in a mix of mutual funds across asset classes, such as equity, debt and hybrid funds, to spread your risk.

Invest regularly: Investing in mutual funds through a systematic investment plan (SIP) is a great way to invest regularly and build wealth over time. SIPs allow you to invest small amounts at regular intervals, making it easier to stay committed to your investment goals. SIPs are especially helpful for working women as it helps them plan their finances effectively.

Monitor your investments: Keep track of your mutual fund investments to monitor their performance on a regular basis. Adjust your portfolio as needed to ensure it continues to align with your investment objectives.

Benefit from Compounding: Albert Einstein once said, “Compound interest is the eighth wonder of the world. Whoever understands it earns it; whoever doesn’t understand it pays it.” When investing in mutual funds, compounding can be a powerful tool for women looking to grow their wealth over the long term. As the mutual fund’s returns are reinvested, the initial investment grows and generates long-term returns.

To sum up

In short, mutual funds offer numerous benefits that make them an ideal investment option for women. With their easy accessibility, long-term growth potential and range of investment options, mutual funds can help women take control of their financial future and achieve their goals. As we celebrate International Women’s Day, it is essential to recognize the value of financial independence and the role mutual funds can play in helping women achieve it. So why not take the first step towards a brighter financial future today and explore the world of mutual funds?

Author: Ms. Jigna Shyamyani, Head – Corporate Finance & Accounts, LIC Mutual Fund Asset Management Ltd

disclaimer: This disclaimer informs readers that the views, thoughts, and opinions expressed in the article belong solely to the author and not necessarily to the author’s employer, organization, committee, or other group or individual.

Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.