Every Woman Needs to be Financially Independent! How Mutual Funds help?

In a world where women’s empowerment is gaining momentum, achieving financial independence stands out as a pivotal goal. It’s not just about earning money; It’s about taking charge of your own life, breaking free from stereotypes, and embracing the profound sense of self determination that comes with controlling one’s finances.

In the past, women were not given as much credit for handling finances. Due to cultural norms, gender biases and societal expectations, women frequently put their families need ahead of their own financial security. Despite being a key earning member, women in many Indian families do not participate in money decisions.

To bridge this gap, it is essential for women to embrace smart planning and investing strategies tailored to their unique needs and goals. Every woman is unique in her own way, so is her financial journey!!

The Role of Mutual Funds

Mutual Funds provide a wide array of product offerings, catering to varied financial goals of women.

> To build an Emergency fund

Women may consider investing a portion of their portfolio in Liquid and other short duration debt funds like HDFC Liquid Fund to meet medical emergencies in their household or to assist their elderly parents, whenever required. This may also come handy in case of an employment gap for childbirth, child care etc.

> Not putting all eggs in one basket

Traditionally, women never kept all the household money in one place to mitigate the risk of theft, loss etc. Likewise, women today can diversify their portfolio across different assets classes like Equity, Debt, Gold etc. to mitigate the impact of market volatility. Asset Allocation products like HDFC Multi-Asset Fund provide one stop solutions for women investors to achieve asset allocation in their portfolio. Further, within equities, funds like HDFC Flexi Cap Fund help to diversify one’s equity portfolio across market cap segments.

> Saving for Child’s education

The bond between a mother and a child is probably the most unique one in this world. Every mother wants to go out of her way to provide for her child’s future, including his/her higher education. Solution oriented Mutual Fund schemes like HDFC Children’s Gift Fund help in this endeavour. More importantly, having a goal associated with the investment means that this corpus does not get used for other financial needs.

> Longer life spans = Longer post retirement period

Another important variable at play is life expectancy. In line with other parts of the world, life expectancy for women is higher than men in India too. As per World Bank statistics (2021) globally, life expectancy at birth, for women was ~74 years, while that for men was ~ 69 years. Consequently, number of years post retirement are higher for women. Solution oriented scheme like HDFC Retirement Savings Fund can help women create retirement corpus in the long run. Having a dedicated corpus for sunset years and not having to depend on anyone to meet one’s needs post retirement, can be immensely reassuring.

> Feeling the pinch of tax?

With more women entering the workforce, tax planning has become as important as Financial planning. To avoid last minute hassle of investing in Section 80C eligible instruments to save tax, women could consider starting an SIP in HDFC ELSS Tax saver fund with an aim to create wealth and save taxes simultaneously.

> Being unaware is not an option anymore

It is an increasingly uncertain and fast-moving world. You would have come across many instances of women in the family or in your social circle who were completely clueless about their financial assets, liabilities, nominations etc. in the event of divorce/sudden demise of their spouse. One cannot stress enough on the importance of financial freedom for women in today’s uncertain world.

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Women have strived hard to break old stereotypes and live life on their own terms. This, to a large extent, can be achieved through financial freedom, which not only gives one the confidence to take key decisions but also provides a firm footing to stand up for oneself.

So, to all the women reading this: it’s time to embrace the power of investment, to take control of your financial destiny, and to unleash your full potential. Whether you’re a seasoned investor or just starting out, know that you have what it takes to succeed.

Invest in yourself. Invest in your future. Because when she invests, she succeeds.

Happy International women’s day!

Views expressed above are indicative and should not be construed as investment advice or as a substitute for financial planning. Due to the personal nature of investments, investors are advised to consult their financial advisors before investing.