How can women start investing for a solid financial future?

Men have dominated the investment space for a long time. But as societal equations are changing, there is a surge in the number of female investors. Ease of investing offered by the investment apps, greater financial autonomy, and awareness have led to higher inclusion of women. 

This article is for our women investors. Here are the ways you can prepare yourself before you start.

Why Should Women Invest?

Investing is a simple way to accumulate wealth for a secure financial future. Men have been investing for a long time. Compared to that, there aren’t many women investors. 

Even today, women get 23 percent less salary for the same job. Until gender pay disparity continues, the only way for women to attain financial freedom is through smart investment. 

Working women can apportion some of their disposable income to invest in the stock market. It can help her grow a nest egg for the future and retirement.

If the woman is a homemaker, she can still invest. Nowadays, investing as little as Rs 500 through mutual funds is possible. This fund can grow over time and help in attaining long-term financial goals.

What Are The Best Investments For Women?

When you first start investing, invest in instruments that generate higher ROI. You may not want the additional burden of monitoring your portfolio if you are a busy woman. However, it is crucial to understand that no two investment portfolios are the same. You need to measure the time you can invest in managing your finances, which will influence your investment choices.

It might seem like the stock market is the only avenue to invest. But it is not correct.  

Mutual funds

Whether you are a first-time or a seasoned investor, mutual funds are an excellent investment option. When you are new, you can begin a systematic investment plan (SIP). 

Mutual funds allow your investment to grow at a compounding rate.

ETF

An ETF is primarily a basket of securities – bonds, equity, debt, or stocks that are traded on the stock exchange like shares.

Stocks

Stocks represent fractional ownership of the company. Stock investment, however, carries risk. So, one needs the knowledge and experience to invest in stocks.

Steps to Prepare Yourself

Believe in yourself

Confidence is essential to taking charge of your finances. Believe in our abilities. Gain knowledge about investing in the market.

Don’t let the fear cripple you

Investing can be scary initially, but it is never a daunting task. You can start with simple investment tools like mutual funds.

Assess your financial situation

To assess your financial status, you need to measure your monthly cash inflow and outflow. It will help you calculate the amount you can save and subsequently invest.

Decide your goals

Before you invest, calculate your long-term and short-term financial goals.

Keep learning 

Knowledge is the critical first step to financial freedom. Since the financial market is complex, only education can help you navigate it successfully.  

Avoid mistakes 

Making investment mistakes can be costly and, sometimes, unforgivable. Understand and evaluate each investment option before betting your hard-earned money.

Take charge 

Last but not least, take charge of your finances. Discuss with your family member managing your money and understand what they are doing. It will give you an idea about your future course of action.

Conclusion

For women, investment is often not the priority of their life. But it needs to change. Women can experience true power when they take charge of their money. Open a free Demat account with Angel One and use our suite of apps that simplifies investing.