In a noteworthy departure from traditional investment choices, working women are increasingly turning to mutual funds over conventional options like gold and fixed deposits. Bankbazaar’s recent Aspiration Index study sheds light on this evolving trend, showcasing a significant shift in the investment strategies of the new generation.
The study reveals that 40% of employed women aged 23 to 45 are actively engaging in mutual funds, with an equal percentage directly participating in the stock market. Surprisingly, women in this demographic are opting for endowment or ULIP plans over traditional gold investments. Additionally, 15% of women have diversified their portfolios by investing in real estate. These statistics highlight the financial awareness and adaptability of earning women in the current landscape.
While these trends indicate a positive change, it’s crucial to acknowledge the diverse roles women play in society. Many women manage household responsibilities without participating in external employment, and the prevailing notion around them often encourages traditional investments like gold or fixed deposits.
Nanda Padmanabhan, DGM (Communications) at Bankbazaar, offers insights into why some women may not explore newer investment options. She suggests that time constraints play a significant role, hindering women from researching and considering alternative investments. Padmanabhan emphasizes that providing accessible information to women can break traditional barriers, enabling them to diversify their investment portfolios.
Highlighting the importance of considering the growing inflation rate, Padmanabhan suggests that investing in mutual funds has become essential. With an annual inflation increase of 6-7%, relying on a fixed deposit with a 7% return may not prove advantageous. Mutual funds, with potential returns ranging from 12 to 15% when invested for 5 to 8 years, emerge as a more viable option.
Encouraging women to invest wisely, Padmanabhan recommends dedicating time to understanding the workings of mutual funds before opting for SIP investments. She advises starting with a passive fund like Nifty50, suitable for beginners. Emphasizing the importance of patience, Padmanabhan recommends staying invested for the long term, even during market downturns, to achieve favorable returns.
In conclusion, the study reflects a dynamic shift in the investment preferences of working women, showcasing a growing interest in alternative financial instruments for long-term wealth creation.
