Start with smaller amounts

 One of the advantages of mutual funds is that there is no requirement for high initial investments. Such a feature can be typically helpful for homemakers or young girls who may not have large amounts to invest. Most mutual fund schemes allow investors to start a Systematic Investment Plan (SIP) with as low as Rs. 500 per month.

Build a substantial corpus over time

Investing in mutual funds can help women build a large corpus over time, thereby achieving much-needed financial freedom. By making disciplined investments in a mutual fund scheme, one can reap the benefits of compounding in the long term.

Lets understand this through an example: Shivani, a 25-year-old woman who starts investing in mutual funds to build a retirement corpus. She decides to invest Rs. 2,000 every month through a Systematic Investment Plan (SIP) in a balanced mutual fund. This fund invests in a mix of stocks and bonds, offering a balance between growth potential and stability.

Here's how mutual funds can help Shivani build a substantial corpus:
Power of Compounding: Over time, Shivani's investments could not only grow based on the fund's returns, but the returns could themselves earn additional returns. This snowball effect is called compounding, and it's a major advantage of long-term investing in mutual funds.
Disciplined Savings: SIPs in mutual funds enforce a disciplined savings habit. By setting up an automated SIP, Shivani ensures she invests regularly, regardless of short-term financial fluctuations.
Professional Management: Mutual funds are managed by experienced professionals who research and invest in a diversified basket of stocks and bonds. This diversification helps spread risk and reduces the impact of market volatility.

Now, let's imagine an average annual return of 10% for Shivani's mutual fund investment. Using a SIP calculator, we can estimate that after 40 years (until Shivani's retirement at 65), her total investment would be Rs. 2,400,000 (Rs. 2,000 x 12 months/year x 40 years). However, the magic of compounding would have grown this amount to approximately Rs. 33,858,561! This is a substantial corpus that can significantly contribute to Shivani's financial security in her retirement years. Even with variations in investment amount, risk appetite, and market returns, mutual funds offer a compelling path for women (and everyone!) to build wealth over the long term.

**Remember: This is a simplified example, and actual returns may vary. It's crucial to do your research, understand your risk tolerance, and consult a financial advisor before making any investment
decisions.**

The expertise of fund managers
Professional fund managers possess expertise in analyzing and selecting securities and oversee the management of mutual funds. They can be typically beneficial for women investors, who may not have the time, knowledge, or resources to navigate market volatility and actively handle their equity portfolios.

Goal-based investing
Mutual funds allow investors to make goal-based investments by choosing between equity, debt, and hybrid funds. Such a feature makes them a perfect choice for women with varied financial objectives. For example, those looking to build a long-term corpus can invest in equity mutual funds, while those who wish to create an emergency fund or meet a short-term financial goal can invest in debt-based funds.

The final word
Mutual funds, with their features and flexibility, can be a prudent investment choice for women to achieve financial freedom and subsequently help India become an economic powerhouse. It’s better to start investing from an early age so that one can reap maximum rewards and meet their long-term financial goals.
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An Investor education and Awareness initiative of Aditya Birla Sun Life Mutual Fund
All investors have to go through a one-time KYC (Know Your Customer) process. Investors to invest only with SEBI registered Mutual Funds. For further information on KYC, list of SEBI registered Mutual Funds and redressal of complaints including details about SEBI SCORES portal, visit link : https://mutualfund.adityabirlacapital.com/Investor-Education/education/kyc-and-redressal for further
details. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.