n India, there are several investment options and plans that offer long-term benefits to women investors. However, one must know how and where to invest their hard-earned money.
Furthermore, there are several investment options that can also be used for generating monthly income, by earning interest on the principal amount. Apart from this, investing in fixed or immovable assets adds financial security over the years.
1. Public Provident Fund (PPF)
Available in post offices and banks, the Public Provident Scheme is one of the most popular investment plans in India. This scheme has tenure of 15 years and attracts an annual interest of 8%. The annual investment amount of the scheme ranges from Rs 500 to Rs 1.5 lakh. In addition to this, one can withdraw 50% of the amount after completing 5 years in investing in the PPF scheme. Furthermore, you get to enjoy tax benefits on the scheme.
2. National Pension Scheme (NPS)
National Pension Scheme (NPS), a concoction of equity, fixed deposits, corporate bonds, liquid funds and government bonds. It offers completely tax-free benefits under section 80C of the Income Tax Act to the tune of Rs 1.5 lakh, plus you can claim an additional tax-free deduction up to Rs 50,000 under Section CCD (1B). Moreover, under NPS, you have the option to invest in equities depending on your risk appetite. The one year market return for Fund option E is around 9.5%, while the same for 5 years is 11%.
3. Employees’ Provident Fund (EPF)
The Employees’ Provident Fund is one of the best investment options for working women to avail of tax benefits and gather tax-free savings. As per the Government of India, new women employees will have to contribute only 8% instead of 12% or 10% for the first three years. This would also increase their take-home pay. In addition to this, new employees coming under the ambit of EPFO would be provided a 12 percent contribution from the government.
Buying gold is regarded as a good investment option for Indian women. Various banks and MMTC authorised dealers sell certified gold coins in different denominations like 5 grams, 10 grams, and 20 grams. Though gold prices are not fixed, it can be considered as a safe investment in the long-term. You can invest as little as a 5-gram gold coin every year and further increase the investment to 50 grams in 10 years and 100 grams in 20 years.
5. Mutual Fund
A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets. Mutual funds are operated by professional money managers, who allocate the fund’s assets and attempt to produce capital gains or income for the fund’s investors. A mutual fund’s portfolio is structured and maintained to match the investment objectives stated in its prospectus.
Mutual funds give small or individual investors access to professionally managed portfolios of equities, bonds, and other securities. Each shareholder, therefore, participates proportionally in the gains or losses of the fund. Mutual funds invest in a vast number of securities, and performance is usually tracked as the change in the total market cap of the fund—derived by the aggregating performance of the underlying investments.
6. Post-Office Monthly Income Scheme
Post-Office Monthly Income Scheme is also known as the Post-Office Fixed Deposit scheme. Backed by the Government of India, this is a small savings scheme, which is valid for a tenure of 5 years. The interest rate that is earned on this scheme is 7.6% per annum. The minimum amount that can be deposited in the scheme is Rs 1,500. The maximum amount that can be deposited is Rs 4,50,000 (a single account) and Rs 9 lakhs (joint account). This scheme is highly beneficial for retired women and homemakers.
7. Fixed Deposit
A fixed deposit refers to an investment scheme that banks and non-banking financing companies provide. FDs offer greater returns on the principal invested when compared to the returns generated from a regular savings account.
Fixed deposits have a fixed tenure, hence the name. Depending on a consumer’s investment portfolio, the FD investment period can either be short-term or long-term. The interest rates on fixed deposits vary from one company or bank to another.
8. Kisan Vikas Patra
India Post introduced the Kisan Vikas Patra as a small saving certificate scheme in 1988. Its primary objective is to encourage long-term financial discipline in people. As per the latest update, the tenure for the scheme is now 124 months (10 years & 4 months) if you purchase the certificate between 1 April 2020 and 30 June 2020. The minimum investment is Rs. 1000 and there is no upper limit. And if you invest a lumpsum today, you can get double the amount at the end of the 124th month.
9. National Savings Certificate
A Government of India initiative, the National Savings Certificate is a fixed income investment scheme that you can open easily with any post office. It is a savings bond scheme that encourages subscribers primarily small to mid-income investors to invest while saving on income tax under Section 80C
10. Real Estate
In the opinion of experts, the real estate investment in the present time needs a different strategic approach than purchasing a property for personal use. When you choose real estate as an investment strategy, you purchase property to make profit out of it. In most cases, the investor rents out the property or resells it at a higher cost. Keeping both the types of interests in mind, here is an analytical detail of the real estate market, which will help you clarify the doubts.
7 Financial mistakes every Woman should avoid
There is one aspect where Indian women still need to catch-up it’s managing their finance independently. There is still a dependency, especially among Indian women, on their father or partner to manage their finance, mainly due to the failure to break away from the age old traditions of men taking all the financial decisions.
Financial Advice for Women
Indian women have started earning decent money and thus are becoming financially independent. However, financial decisions are still being taken mostly by their fathers or husbands.
Loan Schemes for Women Entrepreneurs in India
Women Entrepreneurs can be seen everywhere in the startup-up ecosystem of India. Women too are seen leaving their high-profile jobs as well as some stepping out of the four walls of their homes and joining the pool of Entrepreneurship in India.
Loan sizes higher when Women Borrow
A woman’s best protection is a little money of her own. Women in India have been taking huge strides in breaking through the glass ceiling in many industries.
Tips for Women to save more
Be it single women, married or divorced, there are ways to overcome hurdles and become financially independent. Some of the challenges may be it in dealing with the struggle of saving and investing, tackling financial illiteracy, balancing the needs and wants of parents and children, or overcoming resistance in marriage.
Woman’s Guide to manage Finances in 2021
The higher loan amount when a woman applies could indicate it’s a household with two incomes, unlike when a male applies, where he could be the only breadwinner.
Business Loans for Women in 2021 – Best Bank Business Loans including SBI
To encourage the growth of women entrepreneurship, many initiatives that will provide loans for women have been introduced by the government and independent financial firms.