The topic of financial independence for women has become prevalent in the last few years. While many of them still strive to get equal opportunities, the ones who do end up sacrificing their careers at some point for their family or children. However, in these times of rising inflation, it becomes very crucial for everyone, including women, to lead a financially independent life.

On this International Women’s Day, let’s discuss how women can achieve financial independence with Mrs. Mrin Agarwal – a career investment advisor for the last 21 years.

How should women prepare themselves mentally?

First things first, it’s very crucial to have the right mindset for women to become financially independent. In India, they are brought up with an inclination that money management is something they shouldn’t care about. But, with changing times, it’s crucial to understand that financial independence is as important for women as it is for men. And they should not be unapologetic for being ambitious. Instead, they need to believe in what they are and what they can be.

Challenges faced by women during their journey

Women have always faced a host of challenges on their journey to achieve financial freedom. One of them is the gender pay gap. Women have always remained underpaid as compared to their men counterparts. Then, they have more family responsibilities on their shoulders. For example, taking care of their in-laws, looking after their children, etc. These responsibilities can drain them physically and emotionally.

How can women achieve their financial goals while fulfilling all other responsibilities?

Investing whatever resources one has is the best way to achieve financial goals. For women, mutual funds can be a very good investment option. Here’s why:

• They can invest in them from the convenience of their home
• They won’t have to manage their investments as it will be done by a professional fund manager
• They can invest whatever amount they want to. It can be as low as Rs. 500 and as big as Rs. 50 lakh
• They can choose between equity, debt, and hybrid funds as per their risk appetites and investment objectives

How to choose a mutual fund based on a financial goal?

It depends on whether one is investing for their short-term, mid-term, or long-term goal. For example, if someone is investing for the short-term goal of buying a car, they should invest in a debt fund that entails lower risks. Similarly, if someone is investing for a mid-term goal of buying a house, they can invest in a hybrid fund that involves moderate risks. For long-term goals like retirement, child education, etc., one should always go for the equity funds that carry high risks but can also provide the best returns.

Key Takeaways

• Being financially independent allows a woman to take her own decisions and also support her family if the need arises.
• Women should be aware of their rights and resources and invest them as per their financial goals.
• Mutual fund is an effective way to invest for short, medium, or long-term goals.
• Equity funds are ideal for saving for retirement, child education, etc., as they are prone to high risks but also yield high returns.

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.