You are a SUPERMOM! Yes, you heard that right. From managing household chores to your kid’s education, there is not a place you haven’t made your presence felt. But when it comes to investing money, I am sure you would shy away from the topic. The reasons may vary from being too difficult to understand or the feel of investing not being safe. The list is endless. But today, in this ever changing world we see that investing is much much simpler than you actually thought it to be.
Why mothers never invest?
Women have a tendency to avoid making and managing investments. This is due to their lack of confidence or comfort in making the financial decisions. This habit has been inculcated in them from a very young age since traditionally the man of the house made all the financial decisions. Gone is the time when only a man could invest. Today, when women have left their mark in every field it is high time women too, made their own investments. So the first step to managing your finances would be to ‘take ownership’ of the task. Don’t worry, if you continue to read you will realize that it’s not that a big deal.
Where do they park their savings?
Mothers are the best people who know how to manage finances. Within a given amount they buy groceries, pay bills, spend on necessities and also SAVE.So what happens to all these savings? They are kept very safe inside a hidden container in the kitchen or it is just lying untouched in a bank or some other financial institution which gives just a 4% interest. And every month they work hard to save some amount just to leave it in a secured place. Why work hard when you can make your money work for you?
Now is the right time to push aside all the stereotypes about being a woman who cannot invest but instead start saving smartly.When you are able to manage the month-to-month budget of your family with ease, investing is just a piece of cake.
How to start making your investments?
Firstly, write down the goal you want to achieve. It can be long-term goals like buying your dream home or a car etc. Or, short-term goals like buying a new tv set or saving for a wedding in the family or studying etc. After deciding on your target, next is the way to achieve it. Calculate how much you can manage to keep aside after all the family expenses. The last step would be in deciding the mode of making investments. Now is the time when mutual funds come into the picture.
The kind of mutual fund you will need to invest in is the one which gives you higher returns, with absolutely no risk and also being able to withdraw the money as and when you want.
I had a few conversations with some moms as to why they don’t prefer investing in mutual funds. Here are the answers I got;
- They think that investing in mutual funds can be done only with a huge amount in hand. While the reality is, we can start investing with as less as Rs.500. Read more about such funds here – Best Mutual Funds to Invest with Rs.500
- Worried about mutual funds being very risky and no assurance of safety for their money. The truth is there are many mutual funds that offer a very less risk and your money is completely safe, just like FDs. These are called debt funds.
- They think that investing in mutual funds is a very long and tiresome process. We at Groww make the process quite simple such that all you need to do is submit a couple of documents. Everything is done online and it is paperless.
- They think that investing in mutual funds is not free. Groww is absolutely free of cost now and forever. In fact, not investing is not free. Keeping money in the banks is costing you the inflation.
- Most of them have no knowledge about mutual funds and think that it is very difficult to understand. Educating them about this will be the first task in hand.
Keeping all the above-stated factors in mind, we have curated a perfect portfolio that suits every busy mother. This portfolio ensures that your money is safe and gives good returns, also lets you pull out your money when you want to.
The Supermom Portfolio
This portfolio is designed by keeping all the above-said objectives in mind:
|Franklin India Low Duration Fund – Growth||Ultra Short Term||40%|
|Axis Short Term Fund – Growth||Short Term||40%|
|Birla Sun Life Equity Fund – Growth||Multi Cap||20%|
Detailed analysis of the portfolio can be found here.
The minimum amount needed to invest in this portfolio is Rs 25,000. However, you can start SIP in this portfolio with an amount of Rs 2,500 and additional multiples of Rs 5,000. SIP is a systematic investment plan, through which you are able to automate the monthly investing.
Why this portfolio?
This being a core portfolio of a mother, I wanted to keep it conservative with good enough upside. That is why I decided it to be a mix of 20% equity and 80% debt+cash. A debt fund is one which invests in government securities, corporate bonds etc. Whereas an equity fund invests in stocks.
The chosen funds are few of the bests in their respective categories.
- Franklin India Low Duration Fund has a track-record of more than 5 years. 5-years annualized return is 9.87% which is 1.2x of the benchmark
- Axis Short Term Fund has a track-record of more than 5 years and carries very low risk. 5-years annualized return is 9.08%.
- Birla Sun Life Equity Fund has a track-record of more than 5 years and has a moderate risk level. 5- years annualized return is 21.22%.
This portfolio has generated a annualized return of 14.93% and generated around 12.68% returns in the last 3 years. However, we cannot project future returns from the past. If we take an estimate of 12% annualized return, a SIP of Rs 10,000 per month will help you build around Rs. 2,68,106 in 2 years. This is much more than the returns generated by any banks.
A SIP of Rs 2,500 / month would approximately generate around 2.6 Lacks after 2 years (assuming 12% annualized returns)
SIP or LumpSum?
This would totally depend on your source of income. If you have a huge amount of money lying unused then I would suggest going for a lump sum. You can also withdraw it as and when you want. Whereas, if you are able to keep aside a fixed amount of money every month, then go for the systematic investment plan or SIP. SIP enables you to make investing a regular habit.
The Supermom Portfolio has been specially curated for all the wonderful Moms out there. This will help you build wealth and make investing as simple as it can.Take a look at this portfolio, give it a try and taste the success of investing.