In ULIPs, the investment risk in the investment portfolio is borne by the policyholder
Women are increasingly becoming financially independent and are playing an important role in the process of making financial decisions. With a lot of responsibilities in hand and the financial needs of the loved ones to cater to, increasing wealth through investment becomes a crucial activity. As a woman, with the right investments, you can secure the financial future of you and your loved ones which, in turn, will also help in achieving your short term goals like purchasing a car as well as long term goals like buying a house.
What is the meaning of investing?
Investing refers to growing your wealth over time. With the power of compounding, investing allows you to generate good returns on your capital and ultimately increase your wealth. There are various investment instruments that you can consider based on your risk appetite, time horizon, and future needs.
How important is investing for women?
As per a survey conducted by DSP Winvestor Pulse, an Indian financial firm, in 2019, only one-third of women take investment decisions by themselves1.This speaks volumes on how little women are exposed to the world of investing. Surprisingly, even as many women are becoming financially independent, the idea of investing in stocks, bonds, or even real estate is still often linked to the men of the family. The concept of aggressive investing continues to be absent in the lives of many working women. They prefer saving for their future in bank accounts or investing in jewellery like gold.
In these times of sky-rocketing inflation and unexpected economic downturns, the need for a well-planned and calculated investment strategy is crucial for everyone. With the right investments, you can secure not just your future, but that of your loved ones as well. Investment options, such as owning real estate, stocks, bonds, ULIPs, and more, can offer you more economic flexibility. This ensures that you do not have to depend on others for your financial needs.
What is the right time for women to invest?
Financial experts suggest that the right time to invest your money is at the earliest possible opportunity. Hence, investing should be a part of your financial plan from the early years of your career. This will provide you with a significant amount of time to let your money grow. Also, it will provide you with enough time to make up for any losses due to low performing investments. Having said that, you can pick a different long term and short term options for investment based on your specific goals.
Saving for retirement
Unless an individual earns an exorbitant salary from the very start and can save up more than half of their paycheck, it is practically impossible to save up for retirement without investing. Rising medical costs, inflating higher education expenses, overpriced commodities, and other expenses can make it difficult to sustain a comfortable lifestyle on savings alone. It is essential to have an investment plan that can grow your money over time and offer high returns to counter inflation. A sizable fund for retirement can help you lead a comfortable life in your retirement years and at the same time, cater to medical emergencies, family requirements, and a lot more.
Overcoming the salary gap
Industries around the world reflect a very alarming gender wage gap. Women are sometimes paid less in comparison to men. These low numbers lead to a sizeable amount of funds over a time. Although many women are fighting tirelessly to overcome pay parity and workplace discrimination, it may take time for things to change. Investing can be extremely useful for women to bridge this gap. For example, investing in a suitable life insurance plan can help women leave behind a legacy for their loved ones. Retirement annuity plans are another excellent investment tool that can guarantee women a safe and secure source of revenue in retirement.
Battling fewer work opportunities
Despite recent changes in ideologies and conservative mindsets, women are still seen as the primary caregiver of the house. When it comes to raising children, it is generally the mother who is encouraged to leave her job, work as a freelancer, or put in fewer hours as compared to the father. Pension accounts like the Employer Provident Fund (EPF) can be a smart way to save. Hence it makes sense to also invest in mutual funds, Systematic Investment Plans (SIPs), or at the very least, a Public Provident Fund (PPF) to make up for the lost time.
Ensuring financial security
A discussion on the economic security of women is incomplete without bringing in real estate. Traditionally, ancestral family properties in our country are passed down to sons and not to daughters.
Investing in real estate is a good investment decision that women can take to secure their future. The ownership of a house not only empowers women financially but also offers them peace of mind and secures the future interests of their children. Right investment tools can help you accumulate a large savings amount to fall back on in case of any urgent shortfall of funds. This offers a much-needed financial security.
Planning for longer life spans
Science suggests that women tend to live longer than men. Life expectancy for an individual can depend on many factors like family history, existing medical conditions, and more. Nevertheless, one cannot overlook these facts. Women must proactively prepare for a long life and make sure that they have enough funds to cover their expenses. While savings can offer partial monetary relief for a few years, strategic investments can provide better rates of return. And ensure that the golden years of an individual’s life are spent blissfully and comfortably. For example, Unit Linked Insurance Plans (ULIPs) not only provide financial coverage during difficult times but also reward you with attractive returns on investments.
Tips for women before investing
- Evaluate your financial goal : Make sure to define your goals so you can pick appropriate investment options suitable for each specific goal
- Consider the tenure of your investment : If you are looking for immediate returns, you should choose a short term instrument. However, if your goal is not an immediate one, you should invest in a long term instrument
- Analyse the risk involved in the investment : Each investment tool carries a certain level of risk, which may affect the returns that you will receive at the end of the tenure of the investment. Ensure that the risk involved is aligned to your risk appetite
- Don't wait for the right time to invest : The only right time to invest is right now. The sooner you start, the higher can be the sum accumulated
- Life cover : While planning for the future, make sure to secure your loved ones too. Insurance plans, like ULIPs*, come with a dual benefit of protection and investment
Consider the following steps to create a successful investment plan:
To sum it up
The benefits of investing for women are plenty. You should start investing as soon as you can. With investments, you can enjoy a greater level of financial freedom and achieve your goals with ease. Consider ICICI Pru Signature, a ULIP that offers a life cover as well as the opportunity to earn market-linked returns. With this plan you can get financial protection, tax^ benefits, get money at regular intervals with a systematic withdrawal^^ plan, flexibility in your investment with a choice of portfolio strategy and funds# and unlimited free switches between funds.
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1Only 33% women take independent investment decisions: Study: https://economictimes.indiatimes.com/markets/stocks/news/only-33-women-take-independent-investment-decisions-study/articleshow/69577084.cms?from=mdr
*In ULIPs, the investment risk in the investment portfolio is borne by the policyholder.
^Tax benefits are subject to conditions under Section 80C, 80D, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Good and Service tax and Cesses, if any will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.
^^Systematic Withdrawal Plan is allowed only after the first five policy years.
#Past performance is not indicative of future performance.
ICICI Pru Signature UIN: 105L177V03