Why it’s important that women invest?

There are so many reasons why it’s important to invest but here are a few of my favorites.
First and foremost, women must acquire a sense of financial equality and self-sufficiency.

Faced with issues such as the gender wage gap, investing is one of the most effective
strategies to ensure that you have the same opportunity to create wealth as men. Women must
have the financial ability and confidence to walk away from situations that are not benefiting or
Investment Insights from Experts even harming them, whether it is a bad career or a bad relationship.

You should have the financial autonomy to make decisions that allow you to care for yourself.
The second reason to invest is to achieve your financial objectives. Investing is the smartest
way to achieve your goals, whether you want to pursue higher education, save for an emergency
fund, send your children to college, prepare for a significant purchase like a house or wedding,
or save for retirement.

Investing is also invaluable if you want to take a break between jobs. Women are much more
likely to take career breaks than men. This may happen at any point in your life, including when
you get married, have children, or if your spouse is transferred to a new location, for example.
Women have also been taking professional breaks in recent years to upskill or further educate
themselves. Of course, taking a career break means accepting a loss of income. Savings and
investment income are imperative during these times, and to give you the option take these
important breaks.

Getting started with investing can be challenging, as many of us may have already
experienced. When you don't really understand financial and inflation risk, you may spend your
money less wisely. You may save it in your bank account.

This, of course, comes with its own set of problems, as money held in savings accounts earns such low rates that it loses
purchasing power over time due to inflation. Money invested in the stock market, on the other
hand, can outperform inflation and significantly grow your money over time, with of course risks
involved
 
When it comes to saving for retirement, it’s important to be cognizant of the fact that, on
average, women earn 83 cents for every dollar earned by males. That means we will likely not
save the same amount as men, even if we save the same percentage of our income. Women
also have a longer life expectancy than men. In other words, our reality is that, when women
save money without an investment strategy, less money must last longer.

Women spend more time examining their financial options, according to research. Although, when it comes to investing, women tend to take on less risk than males, but it doesn't mean we’re risk-averse.

Rather, we’re simply more inclined than males to take proper risks with our assets, thus resulting in higher investment results.

Women don't tend to chase hot ideas or trade on the spur of the moment, and these are the
practices that help our portfolios grow. Women are also successful at accomplishing proper
diversification to help protect our money, regardless of market conditions, because we are more
likely to have practical, age-based asset allocations.

I would advise, quite simply, to have strong investing basics in place. Even if you aren't a stock
market expert, understanding the fundamentals can help you articulate your goals and better
understand what's going on with your money. You can invest in a variety of vehicles, including
stocks, bonds, mutual funds, and more.

Bonds, often known as fixed-income investments, are common holdings in most investment
portfolios. In basic words, a bond is a loan from an investor to a borrower, such as a firm or the
government. A bond's market value might fluctuate over time but not generally by very much.

The major pros of investing in bonds include:
 Bonds are a generally safe investment.
 Bonds pay interest at set rates and times that are predictable.
Bonds have lesser return potential than stocks or other risky assets, but they are more stable.


Mutual funds are one of the best investment vehicles on the market.
In short, mutual funds pool money from a number of different investors and then invest
it all together. Then, investments are made by professional fund managers based on the mutual
fund’s mandate. Large-cap mutual funds, for example, will exclusively invest in large-cap
equities. So, if you invest in a large-cap mutual fund, you know exactly where your money is
going.

With mutual funds, your direct responsibility is not as high as other investment types because
the fund manager and their team are responsible for conducting detailed research and analysis,
and they invest your money based on this extensive research.

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