It’s the year 2020 and the world of investments, particularly mutual fund investments is evolving at breakneck speed. With different schemes available to suit your financial goals, to the level of ease of the transaction process, investing is getting convenient by each passing day.
While men have dominated the investment space for a long time, the ease of investing, greater financial freedom, and awareness levels have led to a higher inclusion on women as well, and their numbers have been increasing steadily over the years.
If you are a woman looking to take the plunge into investing too and join the growing tribe of women investors, here are 7 ways you can prepare yourself. Read on!
In this article
Believe In Yourself
This is a no brainer. Your biggest asset in the world of investing is confidence. Believe that you have the capability to not only learn the nuances of investing but also thrive at it. Remember, investing is a skill and like any other skill it can be learned with determination and patience -both qualities you are blessed with.
Don’t Let The Fear of Planning Stop You
Investing simply put is to park your money in suitable investment avenues and let them grow.While it was never a daunting task, thanks to technology and the advent of digitalization things have become simpler.
Today, investing is a matter of a few clicks. You can invest via app or online. Also to invest for your financial goals you don’t have to invest in 100 different funds, keeping it simple and investing in mere 5 – 7 funds would take care of all your wealth creation needs.
So, don’t think of it as a complex process that requires a lot of assistance and paperwork. Know that it’s simple and can be done on your own very easily.
Assess Your Current Financial Situation.
Before you mentally prepare yourself to begin investing, assess your current financial situation. Take note of all the inflows and outflows, loans, liabilities, and other financial commitments. This will help you calculate the amount you can save and subsequently invest. You can use any online budgeting tools available for free and organize your cash flows efficiently.
Know Your Objectives
Before you invest, make sure you know the reason why. Are you investing for long term goals that you want to achieve, say, 10-15 years from now? or are you looking to raise a corpus to meet your short term goals? either way, it is important to know the time horizon you are looking for.
Another thing is to figure out your risk profile. Are you willing to take risks to reach your goals within the desired time frame? or are you okay with reaching the target amount a little later by opting for safer options?
Think deliberately on this and make sure the investment options you choose are in alignment with your profile. This exercise will ensure you step into investing knowing fully well of what you are getting into and will set your expectations right.
Keep Educating Yourself
If there is one thing a woman who wants to start investing for herself should do, it’s to start with reading. Probably the first step towards financial freedom. Learn and understand what the different avenues to invest are? Which of those avenues can help you reach your goals faster?
How to gauge your risk appetite? Are mutual funds suitable for you? Reading about investments will only make you comfortable with investing. Knowledge about any subject makes it simple. So read more financial newspapers, visit investment websites or even participate in different investment workshops/seminars, most of them are free.
Take Some Time Out
A woman plays many roles all through the day, she could be a chef in the morning, the mother who gets her kids ready for their school, a manager at her workspace, a wife, a daughter etc…etc. but as you might be taking some time out for yourself while going for a walk or a workout, take some time out to review your finances.
Being busy is the most common excuse women give when they are asked why they don’t invest. You don’t have to sit with your excel sheets for hours every day, but weekly sometimes or even monthly sometime to review and manage your finances can help you achieve your goals, your way.
The last piece of advice, we would like to give you, dear lady, is to sit with your husband/father/brother or whoever currently is taking care of your money. Know and understand what they are doing. It’s not just your right, but also your role to be responsible for your finances.
While they might be doing everything right for you, you might add value and help them invest prudently and then finally, take over the responsibility of investing by yourself. Your first step could be to ensure if you have adequate life and health protection and an emergency fund in place.
This women’s day if you could give yourself one gift, it should be the gift of financial wisdom. The ability to make decisions for yourself and your family when it comes to investing and planning for your financial goals.
Disclaimer: The article is written by the content desk of Quantum Mutual Fund. The views expressed in this post are that of the author and not those of Groww