Women in India are becoming more and more empowered and working towards equal rights. The never-ending growth of empowerment and feminism is making its mark in various fields and the workplace. It’s also changing the stereotypes about work that society has long believed in for centuries. Another aspect that is changing forever with the fast-paced growth of women’s empowerment is their role in investment options.
Although women do not have much knowledge about a savings plan because of societal stereotypes, they still play a major role in a family’s finances. The thought of ensuring a healthy future for themselves and their family makes women invest more, but they need to be smart about it. From an overview of the different investment options available for women to some important facts related to them, this blog post attempts to offer a one-stop solution for women investors looking for the best investment plans in India.
Public Provident Fund
The Public Provident Scheme is a savings plan that is open to most Indian citizens. It is one of the most widely used investment plans in India and lasts for 15 years with an interest rate of 8%. The PPF scheme requires a minimum of Rs. 500 and a maximum investment of Rs 1.5 lakh annually.
Additionally, one can withdraw half of the amount after completing five years of investing in the PPF scheme. There are even certain tax benefits associated with the plan that allows you to save even more money.
Whether you’re a homemaker or a worker, you can participate in the PPF scheme and benefit from its advantages. You’ll receive a good interest rate and build up your retirement savings.
Bank Fixed Deposits
Bank fixed deposits are another option to save and earn interest that’s available from both private and public sector banks. Just like you choose your bank account depending on its features, you can choose your investment options by looking at their interest rates and other terms.
The interest rate on these investments is set by the banks, and it varies from bank to bank. If you need to access your money before the maturity date, you can break the deposit and take out your cash for utilization.
However, keep in mind that you can lose interest if you don’t complete the duration of the deposit.
Mutual Funds
If you’re willing to let someone else manage your money, mutual funds are a good investment option. The investment amount is managed by fund experts. If you want to invest for the long run, you can invest in a SIP, which minimizes the risk on your investment and provides promising returns.
While self-trading allows you to maximize your returns, it can also lead to huge losses, which you may find difficult to handle. In this case, investing in a mutual fund allows you to make regular investments and avoid risks associated with the volatility of the market.
Gold
Buying gold is considered a prudent choice for many Indian women. You can buy various weights of certified gold coins at several banks and MMTC authorized dealers. Gold price goes up and down, but overall, it’s a good investment for the long-term.
It’s best to start small and increase your investment amount over time. When the price of gold increases, these coins can be exchanged either for cash or jewellery as per your requirement.
Post Office Time Deposit Scheme
The Post Office Time Deposit Scheme is one of the most beneficial saving schemes in India because returns are guaranteed on investment. The investment period can range from 1 to 5 years, with higher rates of interest for longer periods.
It is calculated quarterly and the payouts are made annually. This scheme is very similar to the National Savings Certificate and the Kisan Vikas Patra. It’s an investment plan that can be used by working moms who want to save for their children’s education or future healthcare needs.
Moreover, keep in mind that you can’t withdraw your money before the end of the term, except in special circumstances.
Employee’s Provident Fund
The Employees’ Provident Fund is a good investment option for working women because it allows them to save money while also gaining access to tax benefits. For the first three years, women will only have to make a contribution of 8% in the fund as opposed to the standard contribution of 10-12%.
The best part is that the new employees coming under the ambit of EPFO would be provided with a 12 per cent contribution from the government. These measures would help improve the take-home pay of employees.
As per the Income Tax Act of India, up to 1.5 lakh of your EPF contributions, every year is tax-free. Also, the interest earned from EPF will be tax-free, provided that the total taxable income of you and your spouse does not exceed 5 lakhs in a financial year.
Unit Linked Insurance Plan
A Unit Linked Insurance Plan or ULIP is essentially a life insurance policy that allows you to accumulate funds for the future in addition to death coverage. With a savings plan, you can make systematic investments to fulfil your short- and long-term financial obligations.
The Invest 4G Plan by Canara HSBC Oriental Bank Of Commerce is one such ULIP policy that can be customized as per your financial requirements. The policy offers an unparalleled combination of flexibility and portfolio management options that provide you with complete control over your investments.
Bottom Line
In a country like India, where the women in most families are not allowed to handle money, here’s a complete guide on the best investment plan in India for women. We have discussed some of the smartest ways in which you can invest your hard-earned money and earn good returns over time without putting your financial future at risk.
