Women are undoubtedly the most judicious managers, irrespective of their roles. Whether it’s household management or professional management; women have always proved their mettle. Since a woman is aware of the household situation, it is wise for them to manage finances as well.
Now, these finances can be related to child education, short-term and long-term goals, financial security, retirement planning, wealth creation, and so on. Mutual fund schemes can assist you in accomplishing all your investments goals, including the mentioned ones. Based on your goal, we have listed best mutual fund schemes ideal for women investors.
Equity Funds
If your ultimate aim is to accumulate wealth over a long-term, you should opt for equity-oriented mutual fund schemes. According to the SEBI guidelines, it is mandatory for equity-oriented fund schemes to invest at least 65% of the amount in equity stocks. Women investors who want to accomplish their objectives, such as starting a business, can consider equity funds.
These mutual funds offer impressive returns over a long period of time. But, there are high risks associated with equity funds as well. Hence, if you are willing to take the plunge, you can invest your money by initiating a systematic investment plan (SIP).
For example, let’s assume that you are investing a fund value of Rs 10,000 per month in an equity mutual fund offering an annual interest rate of 20.90%. The duration of the investment is 5 years. As per calculations, you would receive Rs 9, 93,013 after 5 years.
Debt Funds
Women are more cautious than their male counterparts when it comes to money. In this case, you can consider opting for debt-oriented funds. These funds do not deal in equity stocks and hence, these are not influenced by the volatility in the market. For the investors seeking impressive returns at low risks, debt funds are an ideal preference.
In fact, debt-oriented schemes constitute 41.5 % of the total assets under management (AUM) in the industry. The fund manager invests your money in money market instruments, government securities, fixed income instruments, and so on.
Whether it’s about your child’s higher education or your retirement planning; you can rely on debt funds for appreciation of your money.
Balanced Funds
Balanced funds, or hybrid funds, offer you best of both the worlds. A balanced fund will invest money proportionately in both equity and debt funds. However, the proportion may either be inclined towards a specific category or it will neutral.
If you have an appetite for moderate to low risks, and at the same time you expect lucrative returns, you can rely on balanced funds in this case. For women investors, both employed and housewives, with medium to long-term investment goals, these funds will serve the purpose.
Equity Linked Saving Schemes (ELSS)
For working women professionals, ELSS can be an ideal investment option. While earning hefty returns on your investment, your income is liable for tax exemption as well. Under Section 80C, of the Income Tax Act, investments up to Rs 1.5 lakhs are not subjected to tax deductions.
Since ELSS invests 80% of the amount in equities, you can expect higher returns. However, it should be noted that ELSS require a minimum lock-in period of three years.
Liquid Funds
Being the homemaker, if you are an in charge of all the money, you would park your money in savings account. The average rate of interest offered on saving account fluctuates around 4 % per annum. You can withdraw your money from the account anytime. However, we have a better option for you – liquid funds.
These funds invest your money in liquid money market instruments such as commercial paper, treasury bills, etc. These instruments have a maturity period ranging from 1 day to 91 days. The interest rate generally ranges between 7-10 % and you can withdraw your money by submitting a withdrawal request anytime. So, if you have surplus cash, liquid funds seem to be the most suitable investment option for you.
Conclusion
Women are known to be competent managers and this is certainly applicable when it comes to money. Secure your future or meet your short-term goals by investing your hard earned money in suitable mutual fund schemes.
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Investment Guru India
