Invest Now Invest Now

Benchmark beating returns of 28.99%

RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

Importance of Investing For Women

As more and more women become financially independent, their numbers in the country’s workforce are increasing by the day. With this, the participation of women in financial decision-making is increasing also significant and growing prominently. ...Read More

Calculate Premium TALK TO OUR ADVISOR
Features and Benefits of HDFC Life Sanchay Par Advantage

GET A FREE QUOTE

We respect our customers' privacy and do not spam them.

I authorize HDFC Life and its representatives to contact me through Call, Email, SMS or WhatsApp. This consent overrides my registration under DNC / NDNC (this would mean we would contact you even if you are registered on any Do Not Disturb list).
Importance of Investing For Women

The Importance of Investing for Women: Strategies, Benefits, and Tips

The Importance of Investing for Women: Strategies, Benefits, and Tips
August 05, 2024

Table of Content

 

What is the meaning of investing?

Investing is a financial activity that involves allocating money or resources towards an asset, a project, or an enterprise. It is done with the intention of generating income and growing one’s wealth through profitable returns over time.

Investing could involve buying stocks, ULIPs, bonds, real estate, or starting a business with an aim to grow it in value for financial returns. You can choose the instrument for investment based on your risk appetite, financial goals and the time horizon.

What Is The Importance Of Investing For Women?

Investing is crucial for everyone, but it holds particular significance for women. Women often face unique financial challenges and opportunities. As a result, investing is not just about wealth management for women but also about securing their financial future, maintaining independence, and preparing for life’s uncertainties.

By exploring new investment opportunities, women can balance out financial risks and plan for the long term for true empowerment and stability. Here are some reasons why investing for women is important:

  • Exploring New Investment Opportunities

Investing for women means venturing beyond traditional savings accounts and fixed deposits. With the evolving financial market, there are numerous avenues to explore. For instance, mutual funds, exchange-traded funds (ETFs), and real estate present lucrative opportunities. Women should consider these options to diversify their portfolios and maximise returns.

  • Balancing Investments:

A balanced investment strategy involves a mix of high-, medium-, and low-risk investments. High-risk investments, like stocks, offer substantial returns but come with volatility. Medium-risk options, such as balanced mutual funds, provide a stable growth potential. Low-risk investments, like government bonds or fixed deposits, ensure capital protection with modest returns.

For example, investing in blue-chip stocks can be a high-risk option. On the other hand, a balanced mutual fund serves as a medium-risk investment, and a Public Provident Fund (PPF) in India is a low-risk choice. By balancing these investments, women can achieve a well-rounded and secure portfolio.

  • Catering to Limited Opportunities and Career Breaks:

Women often face career interruptions due to personal reasons like maternity leaves or caregiving responsibilities. Investing wisely can bridge the income gap during these phases of life. If women invest timely and wisely, they can rely on their investments to maintain financial stability. This will help create an environment where they can enjoy continued financial stability and meet their goals despite career breaks.

  • Nest Egg for Retirement:

A solid retirement planning for women is essential more so because they generally have longer life expectancies. Best investments for women include retirement-focused instruments like the National Pension System (NPS) or annuities, which provide a steady income post-retirement. By starting early and investing consistently, women can ensure a comfortable and secure retirement.

  • Planning for Increased Life Expectancy:

Women tend to live longer than men, as a result, investing for women is important to ensure an extended financial plan. Longevity requires substantial savings plan and investments that help sustain a comfortable lifestyle in the later years. Planning for increased life expectancy would, therefore, involve having a long term investment plan and investment instruments, along with ample health insurance to cover ongoing medical expenses.

  • Creating Financial Security:

Women and investing is about building a safety net. Financial security means women empowerment through investment. This helps having enough savings and investments to cover emergencies, career breaks, or unexpected life changes. By regularly investing a portion of their income, women can create a robust financial cushion. Some of the best investment plans for women in India, such as the Sukanya Samriddhi Yojana for those with daughters or ELSS (Equity Linked Savings Scheme), offer tax benefits and growth potential as well.

What is the right time for women to invest?

Investment is a journey on which one must embark at the earliest possible opportunity. Hence, it is vital to educate women to invest as soon as they start earning. This also holds good for stay-at-home women who want to save the earnings of their family members. Starting early with sound financial planning for women helps to maximise the benefits of compound interest. This allows investments to grow significantly over time.

An early start also allows you enough time to recover from loss-making or poorly performing investments without much impact on your future financial goals. By making small but regular and consistent investments in women investment plans, one can build substantial wealth. It not only provides financial security but also independence throughout life and into retirement.

To start, it is advisable to research the best investment plans for women in India. Make a bouquet with a well-thought-out mix of one time investment plans, long-term and short-term investment options to meet financial goals. One can also consult a financial expert for the best investment advice.  

Tips for women before investing

Before you invest, it is important to have a broad Investment plan in place. Here are some tips to keep in mind:

  • Assess your financial goals: Have clarity about what long-term and short-term financial goals you want to meet. Then, invest for them accordingly choosing appropriate investment instruments.
  • Evaluate your risk appetite: Understand your risk appetite and always choose investments that match your comfort level.
  • Educate yourself: Learn about the different investment plans, risks, and returns. Educate yourself about the prevalent tax benefits and specially tailored investment options for women. Knowledge is empowering for correct decision-making.
  • Consider investment tenures: When you invest your money, be clear about whether it is a one-time investment or an ongoing one. Know the difference between long-term and short-term investments. Then, invest based on your goals and needs.
  • Always opt for health and life covers: An important part of future planning is securing the financial future of your loved ones. Health insurance and life insurance plans are an integral part of wise investment planning as they lend security to you and your loved ones when all does not go as planned.
  • There is no ideal time to invest: Never wait for the most suitable time to invest. Start early, start now to get maximum returns.
  • Understand the role of life insurance: Recognize that life insurance is not just about protection, but can also be an investment tool. Understand how different life insurance products can fit into your overall investment strategy.

Conclusion:

Investing for women is not just a financial strategy but a path to empowerment and security. Women and investing go hand in hand in creating a robust financial future. By starting early, setting clear goals, and diversifying investments, women can achieve financial independence and stability. Embracing these practices ensures that women are well-prepared for life's uncertainties and can enjoy a comfortable retirement, and provide financial security for their loved ones. The inclusion of life insurance in this strategy adds an extra layer of protection, ensuring that women's financial plans remain robust even in unforeseen circumstances.

FAQs on Investing For Women

Q. Which scheme is best for investment for women?

The best investment plan for women in India depends on a variety of factors, such as their risk profile, financial needs, and present financial status. Women who have a lower risk appetite can invest in government bonds, mutual funds, money market funds, etc. On the other hand, women with a higher risk appetite can choose to invest in equity mutual funds or direct equity.

Q. What are the benefits of investing for women?

Investing for women has many benefits. It not only ensures a secure future but also helps them experience financial independence, provides a steady income, helps cope with limited employment opportunities, helps in retirement planning, and offers greater economic flexibility.

Q. Why should women consider investing?

With proper analysis and good decision-making, investing can help women ensure financial security and financial independence. By properly analysing your financial goals and available investment plans and knowing your risk profile, you can experience the benefits of investing and how it helps in wealth accumulation in the long term.

Q. How can investing benefit women in the long term?

Investing for women, ensures greater financial independence, ensures long-term security, and helps bridge the gender gap in wealth creation. Investing provides an opportunity for retirement savings and for creating a contingency fund. In addition, investing also empowers women to achieve personal goals and support their families effectively.

Q. Do women enjoy exclusive tax benefits on investment?

No, women do not have exclusive tax benefits on investment. The exemption benefits and tax deductions* are common to both women and men. The income tax liability is calculated based on the pre-existing income tax slab rates.

 

Talk to an Advisor right away

Not sure which insurance to buy?

Talk to an
Advisor right away

Talk to an Advisor right away

We help you to choose best insurance plan based on your needs

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

LinkedIn profile
Reviewed By Reviewed By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

 

Why is Financial Planning Important?

Why is Financial Planning Important?

The importance of financial planning is key to securing your future. HDFC Life helps you manage your finances with smart savings, investment, and insurance strategies

What is Financial Wellbeing?

SIP for NRI: A Smart Way to Invest and Secure Your Future

Where to invest ₹50000 in India?

Where to invest 50000 rupees? Find the best investment options like mutual funds, stocks, FDs, and more to grow your savings with minimal risk.

Where to invest ₹50000 in India?

HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Popular Search

Popular Searches

Disclaimer

* Tax benefits & exemptions are subject to conditions of the Income Tax Act, 1961 and its provisions. Tax Laws are subject to change from time to time. Customer is requested to seek tax advice from his Chartered Accountant or personal tax advisor with respect to his personal tax liabilities under the Income-tax law.

ARN - MC/07/24/13562