With the hustle culture taking over, one must always be aware and updated with the trends of investing. Some people see investing as a side hustle that reaps benefits if given even minimum genuine effort. Women must be able to acquire a sense of financial equality and independence in today’s competitive environment. Along with seeking high-powered occupations and being an indispensable member of a workforce, one must consider long-term financial security.
In India, there are several investment options and hence one can get a little confused with where to put their hard-earned money. So if you have considered investing, but are suffering from the same confusion, then continue reading this article because we’ve concluded major seven important investment options that you can consider. Without further adieu, let’s look at the list and start our investing journey today itself.
Instead of making a lump-sum commitment, Mutual Funds provide a Systematic Investment Plan (SIP), which allows investors to invest a specified amount in a Mutual Fund scheme at regular intervals, such as once a month or once a quarter. The monthly installment amount, which is akin to a recurring deposit, might be as low as INR 500. It’s convenient since you may direct your bank to deduct the money every month. SIP has gained popularity among rising investors as it enables investors to invest in a disciplined manner without having to worry about market volatility or market timing. Mutual Funds’ Systematic Investment Plans are by far the finest method to get started in the realm of long-term investing.
2. Trading and Stocks
Stock trading is the act of purchasing and selling shares in a corporation; if you possess the stock, you own a portion of the corporation. Stocks reflect a company’s own equity and provide shareholders with voting rights as well as a residual claim on profits in the form of capital gains and dividends. On stock exchanges, individual and institutional investors come together to purchase and sell shares in a public setting. The truth is that investing in the stock market is risky, but when done correctly, it may be one of the most effective methods to increase one’s net worth. The first step in learning how to trade the financial markets is to educate yourself on how to interpret charts and price action. Price activity may be deciphered using technical analysis in combination with fundamental analysis.
A cryptocurrency (or “crypto”) is digital money that may be used to purchase goods and services, but it is secured by an online ledger and powerful encryption. To use the item or service, you’ll need to convert actual money for cryptocurrency. Blockchain is the technology that enables cryptocurrency to function. Blockchain is a decentralized system that handles and records transactions across numerous computers. Bitcoin, Ethereum, Binance Coin, Tether, Dogecoin, Gari Tokens, and a variety of other cryptocurrencies are accessible on the market, each having a distinct market capitalization. Supporters of cryptocurrencies such as bitcoin see them as the money of the future and are rushing to acquire them now, presumably before they grow more valuable. Some people prefer the idea that cryptocurrency frees central banks from regulating the money supply whereas others like the technology that underpins cryptocurrency.
4. Real estate
Real estate investment is a costly but rewarding alternative. Home loans are available from both governmental and private sector institutions. Due to house loans, it has been simpler for women to invest in real estate. The loan amount can be readily repaid over a period of 10 to 20 years with interest. Real estate is regarded as one of the most profitable investment options. Furthermore, the property you buy may be rented out for additional money, allowing it to pay for itself and give you a consistent monthly income.
The National Pension System (NPS) is an Indian government-sponsored market-linked savings plan designed to help you save for retirement. An individual’s savings are invested in a diverse portfolio of equity, government bonds, liquid funds, corporate bonds, and fixed financial instruments under the NPS plan. The NPS is governed by the Pension Fund Regulatory and Development Authority (PFRDA). The plan allows you to select your Investment Fund Manager, fund alternatives, Annuity service provider, and Annuity option. In a financial year, you must make a minimum contribution of Rs 6,000. NPS provides you two options: you may pick your assets or the money will be invested automatically based on your age. This investment is basically to secure yourself even after retirement and can be a viable option for women.
6. Public Provident Funds & Fixed Deposits
The Public Provident Scheme, which is available through post offices and banks, is one of India’s most popular investing options. This investment program has a 15-year term and pays an annual interest rate of 8%. The scheme’s annual investment amount varies between Rs 500 and Rs 1.5 lakh. In addition, after 5 years of investing in the PPF program, one can withdraw 50% of the money. Furthermore, you will profit from tax advantages as a result of the plan. Whether you are a stay-at-home mom or a working woman, you may benefit from the PPF program. This annual investment would not only earn a high rate of return but would also save a significant amount of money over a 15-year period.
Opening a Fixed Deposit with a monthly income payout option can assist you in managing your money once you retire and your source of income ceases. This strategy is divided into two parts: investment and payout. Both stages must last a minimum of 24 months. For the duration of the loan, the interest rate will stay unchanged. Tax Deducted at Source applies to interest payments made under such a plan (TDS).
One of the most well-known and passed down investment options by generations of women is investing in Gold. For Indian women, purchasing gold is viewed as a solid financial choice. MMTC licensed merchants and banks sell certified gold coins in various denominations like 5 grams, 10 grams, and 20 grams. Despite the fact that gold prices are not fixed, it may be considered a secure long-term investment. You may start with a 5-gram gold coin and gradually grow your investment to 50 grams in ten years and 100 grams in twenty years. When the price of gold rises, these coins can be exchanged for cash or jewelry, depending on the circumstances.
Your mantra to get the most out of your finances should be “Start Early, Invest Regularly.” It is critical to invest for the long term, which means you should begin investing as soon as possible in order to optimize your final results.