Financial independence is paramount for everyone today. It allows you to think out loud and make your own decisions. Set aside a portion of your income every month to pave the way towards financial security. This will help you build a healthy habit of saving money and reward you in the long run.
Numerous options are available for investing your hard-earned money. However, to get good returns, you must invest in schemes that you thoroughly understand.
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So, let's take a look at a few top investment options that will help you build wealth over time.
Mutual Funds
Even if you are new to the workforce and have a steady paycheck, starting a mutual fund investment through a SIP is wise. With SIPs beginning at just Rs 500, it's easy to start small and gradually increase your investment over time. Depending on your financial goals and risk tolerance, you can select from a mutual fund option that matches your risk tolerance and start a SIP.
Fixed Deposits
For women who diligently save from their job or business, FDs offer a straightforward, low-risk investment option with guaranteed returns. FDs are favoured for their simplicity and compound interest features. In recent times, FDs have been heavily criticised for their low-interest rates, but the truth is they provide stable returns and are a good investment product.
Unit-Linked Insurance Plans (ULIPs)
ULIPs stand out as an exceptional choice for women, as they blend the security provided by life insurance with the growth potential of market investments.
You can opt for equity-oriented funds for greater gains or select debt-focused funds for more steady growth. ULIPs also offer the flexibility to transition between funds based on your evolving investment objectives or changes in the market landscape.
Buying Physical Gold
Historically, Indian women have cherished gold not only as an ornament but also for its value as an investment. Many women continue to purchase gold annually as coins, bars, or jewellery.
Savings schemes backed by the government
Policies backed by the government are very secure and there is very low credit risk involved here. If you want to go one step ahead and secure your savings, you can also choose to invest in these government-backed schemes that will help women immensely to grow their funds:
Mahila Samman Savings Certificate Initiative
This savings scheme was launched in January 2023 and is available only until March 31, 2025. The scheme is curated for women, allows investments from Rs 1,000 to Rs 2 lakhs, and offers a 7.5% annual interest rate.
Public Provident Fund (PPF)
A secure, government-backed saving scheme that offers a 7.1% interest rate. With a minimum annual investment of Rs 500 and a maximum of Rs 1.5 lakhs, it has a 15-year term that is extendable by five years. PPF enjoys the EEE tax benefit, making it a highly attractive option for investment and saving taxes.
Sukanya Samriddhi Yojana (SSY)
This SSY government scheme supports a girl child's future education and marriage expenses. Accounts can be opened for girls under ten, and tax-deductible contributions up to Rs 1.5 lakh annually can be provided.
National Pension Scheme (NPS)
A central government initiative aimed at providing a stable post-retirement income through regular contributions to a pension fund. Upon retirement, a portion of the fund is withdrawable, with the remainder disbursed as a monthly pension. NPS also offers a tax benefit of Rs 50,000.
Sovereign Gold Bonds (SGBs)
SGBs offer an alternative to physical gold investment. It is open to all Indian residents, and the redemption value of the bonds is tied to the average gold price, with certain tax benefits on interest and capital gains for individual investors.
Lakhpati Didi
This scheme focuses on boosting the economic status of women, especially in rural areas, by offering vocational training. It teaches skills like LED bulb making, plumbing, and drone technology repairs. This scheme is open to women belonging to families with a yearly income of at least Rs 1 lakh and aims to provide them with opportunities for financial growth and self-reliance.
Final Thoughts
Achieving financial independence may take time, especially given the numerous roles women have to take on. However, several investment options and a strong financial strategy can help make significant strides towards building long-term wealth and securing a financially stable future.
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