Investment options for individuals are endless given that the popularity is rising daily. Indian women have moved beyond traditional investment methods, and are now exploring critical investment options. It has reduced their dependency on others to manage their finances and made them more aware of the situation.
Why Is Financial Planning for Housewives a Challenge?
In general, a lot of housewives do not look beyond regular investment options such as a fixed deposit or a public provident fund. As such there is no clear source of income for major reasons. Be it family constraints or those of talent, creating an investment corpus for women who are restricted to the four walls after marriage is a challenge.
Housewives Do Not Lack the Skill to Manage Money
The source of income can be the monthly savings that come from efficiently managing household expenses. Making every penny count is a talent and housewives do not lack that. Even if you are a homemaker who does not have a regular source of income, you could still make it work in your favor. Generating your savings and creating wealth is one of the mantras finance experts vouch for.
Make Your Money Work for You
Money earns money and it is a known fact. Where most individuals are investing sums in shares, stocks, and bonds, you could start by investing in mutual funds which allow a deposit in the form of easy installments. Isn’t it much better to make your money work instead of making it sit idle for no reason at all? Invest in hybrid bank accounts which can help you earn higher interest. As a homemaker, you should not be deprived of having an impressive portfolio.
Best Investment Options for Housewives
Keeping money in the bank is not enough and it needs to work as much as you do. Managing money is not rocket science and does not require high-end degrees. You as a homemaker can do a decent job in managing your profile. Getting started with debt funds is a great choice for starters. It is not linked to the stock market, it is not invested in equities.
The money that you invest is passed on to the government as a debt, as the name suggests. Sometimes, it could be a larger organization too. With lower risks, and returns ranging up to 11%, the funds allow you to invest in the form of an SIP which starts at a monthly cap of 500 INR. The performance is based on the market, but it is less risky for the unadventurous housewives.
Control Your Money Well
Having complete control over the money you are investing is important. Having access to liquid cash is what everyone looks forward to. Therefore, an option that allows easy liquidation is comfortable and more assuring compared to the ones that lock in the money for a definite period. Several open-ended mutual funds do not have a transaction fee associated with them. Most of them do not even have a withdrawal penalty which makes it even better.
Also Read: 5 Signs You Should Invest in Mutual Fund
Wealth Creation Should Be the Ultimate Goal
Housewives need to focus on wealth creation too. Equity-based funds such as those of regular growth, blue-chip growth funds, balanced growth funds, and the like can help earn returns up to 35% in five years. Easy SIP options of 500 INR per month make it one of the best investment options for housewives. Financial planning for housewives should not be exhaustive but easy to understand and operate. Having complete control of the account helps you understand the nuances of the trade such that you stay on top of things.
Medium Term Investments, Debt Funds are Feasible
Choose Mutual funds which allow a fixed return over a medium-term investment. Safe, consistent, and tax efficient, these funds have better returns than of fixed deposits and other traditional methods of investments. Even a SIP investment for women that is for a short term, can be made to work for you instead of a savings account or a recurring deposit. Higher returns and individual benefits can set you up for liquidation which is always desirable. Think wealth, mutual funds are the way to go. Systematic Investment planning or SIP is easy and comfortable at all times.
Save Time and Be Smart
If you have a lump sum saving, you can always set up traditional standing instructions and choose the kind of fund you want to invest in. The money is auto debited from your account against a mandate which saves you the hassles of going to and fro to the bank to deposit that cheque. Put the money away in the SIP or mutual funds. It controls the urge to shop impulsively too. Save smart to build wealth, create opportunities for children’s education and even your old age.
