Truth about investing: Women do it better than men, get the tips
Investment tips for women aren’t always about where to put your money but also a great deal about how to think about your money. Radha Singhai works from home in Indore but she has stayed away from managing her money because she always thought it was someone else job. One of the main reasons for being ‘lazy’ about this a complete lack of advise she says. “Most often I don’t think I need help or I have never paid enough attention.”
Rising cost of living and changing lifestyle patterns are among the many reasons why investing one’s money is important. “Investing is extremely important today, irrespective of what gender one belongs to. One needs funds to keep up with our lifestyles, and with increasing life expectancy, people need to plan for a longer retirement,” says Shruti Agarwal, Co- Founder of CAGR Funds. “For women, planning this early on is extremely important as they tend to work fewer number of years, live longer and save up less. Also, individual preferences and aspirations of women needs them to plan their finances too rather than just letting the spouse take the decisions.”
“Financial independence is the first step towards women empowerment”, says financial advisor Shobhana Raj while sharing that the more women talk about it and discuss, the higher the chance of them making their money work. “Investment makes us independent in real terms. It gives women a platform to lead life on her own terms” adds Rubina Singla, founder of Wealthquest.
Surveys after surveys also show women are good at investing. While men often invest hoping to multiplying their money, women are known to define goals, be more rational while thinking of investment.
CONSULT WHEN IN DOUBT
For those who are planning to invest but don’t know where to begin, financial advisors say consult when in doubt. “First, find an adviser who understands your requirements and suggests suitable solutions to you,” shares Shruti Agarwal. “Second, one must try to understand the various investment options available and assess the risk and reward of each,” adds Rubina.
TIMING IS IMPORTANT
The most practical advise financial advisors have is to ‘invest regularly.” The concept of personal finance isn’t a game of hide and seek. “Do not try to time the market. And seek suggestions on how to invest at the time there are opportunities,” says Shobhana Raj. She says while investing, one should also work together return-oriented goals such as compounding your money. Compounding is the ability of an asset to generate earnings, which are then reinvested in order to generate their own earnings.
DEFINE YOUR GOALS
Define the ‘why’ of your investment. Decisions should be based on an individual’s own goals, time horizon, and tolerance for risk. This should be followed up with seeking suggestions to invest in a way that you can achieve those goals, adds Rubina Singla.
FOR ACTIVE INVESTORS
Some useful tips for those who already invest actively. Advisor Shruti Agarwal says:
- Allocate funds to assets: Understand the concept of investing across different assets.
- Depending on your age profile and risk appetite, invest in a fix deposit or mutual fund or insurance or any other product.
- Diversify your risk and explore how you can invest to achieve your wealth goals. But goals you must have!
IT’S YOUR MONEY
“Do not leave investing decisions to someone else,” says Shruti. “A lot of women tend to start investing but lose interest and leave someone else in the family to take the shots. Money is an important tool and how comfortable you end up being depends on how well you put it to use. So stay on top of it at all times.”