How mutual funds cater to the financial goals of women investors
Authored by Kashmira Kalwachwala, Head Investor Services, Tata Asset Management.
India’s economy is growing at a fast pace. Businesses have realised the advantages that women bring to the table by improving organisational productivity and promoting growth. India’s Corporate sector and businesses have made efforts to increase women’s participation in the workforce. Today more and more women are joining the workforce and have started experiencing financial freedom. Even homemakers have their own budgets, expenses and savings to help them plan and run their households. Hence every woman has within herself the power to plan her financial journeys to achieve her life goals.
Mutual funds as an investment avenue
Different women from different walks of life may have different investment budgets, investment horizons and risk-taking abilities. In this context, Mutual funds emerge as one of the best investment choices for women investors.
Mutual Funds offer several benefits like small ticket sizes, no cap on the number of transactions, any-day investments or initiating systematic investment plans that provide women investors with multiple choices as per their financial needs and goals.
Another important aspect of Mutual Funds is that the investors can exit the mutual fund investment without any prior intimation in case of emergencies and get the funds within one to three days of requesting for the redemption, subject to exit load. This acts as a safety net for women investors and provides comfort to them in times of exigencies.
Mutual funds also provide options to switch investments within the various schemes available in the fund house. This makes it easy for women investors to make changes to their portfolios as and when the need arises as per their changing financial goals/requirements.
Features of investing in mutual funds
Accessibility is another great advantage of a mutual fund. Mutual funds can easily be purchased through a mutual fund distributor or through various online avenues/platforms that are available today. Online processes are quick and simple making it convenient for women investors to invest in mutual funds.
Risk diversification, planning for the long term and simplicity are a few added benefits that help women investors invest in mutual funds.
Mutual Funds are managed by competent professionals who ensure that the portfolios are designed and managed as per the scheme mandate and extant regulations.
The advantage of compounding and managing volatility while providing all the above benefits in a highly regulated environment makes investments by women in Mutual Funds a smart and safe choice.
Conclusion
Investment in mutual funds may lead to the empowerment of women, letting them chalk out their goals, embark on their own financial journeys, review their portfolios and make their dreams come true. This not only leads to the growth and development of India’s economy but also benefits society at large. Remember, empowered women = empowered India.
Disclaimer: The opinions expressed above are personal and may not reflect the views of DSIJ.