Women of 2020 - From being financially independent to making independent investment decisions. Monday, Mar 09, 2020
Gone are the days when women earned less as compared to men and when women were reluctant to take risks. In today’s world, more women are highly educated, have greater participation in workforce and the percentage of financially independent women has increased rapidly. It is, thereby, essential for a woman to acquire the right skill of investing for consistent prosperity and wealth creation.
Evolution of society and modernism has to lead to women empowerment. Thus, investing is no longer restricted to a male’s decision alone. Although, women are insignificant in investment decisions in India, this trend is changing fast.
In Indian mutual fund industry, the number of women fund managers is rising gradually, they represent a mere 8% of the total fund managers and manage just 15% of the total assets . The growth of women fund managers is pleasing.
On a household level, women have been demurred from handling money matters and the awareness about investment decisions is minimal. Today, about approximately 45% of women take the decisions with their spouse, father or significant other. This scenario needs to change for the well-being of the women.
Apart from gender equality, there are more compelling reasons why women should take charge of their savings.
Sincerity and consistency results in better decisions
Women are sincere and consistent towards working towards achieving their goals. Women are more disciplined comparatively and hence, investing in SIPs is a best way for them to invest their savings in a disciplined and consistent way.
Slow and steady wins the race
Women are often criticized for being less aggressive. Well, it is simple. They take less risk, they worry less, they trade less and they earn more.
Since the focus usually is long term for women, they take their time to do detailed research, remain patient and often buy to hold.
Professional help and diversification
The maternal instinct in every woman works in her favor of investing. In order to minimize losses, women are more receptive towards professional advice offered by experts. Women rarely lose focus of their ultimate goal and hence, instead of speculation, they incorporate diversification in their investment strategy.
Among various studies and reports, the Forum of Sustainable and Responsible Investment has advocated that women outperform men by a considerable margin when it comes to investment decisions.
Longevity and survival
Biologically women live longer than men. Women tend to leave the workforce earlier than men to shoulder family responsibilities. Hence, it is imperative that women should start saving early as they would need larger retirement corpus for survival.
The changing social system in India, women are single by choice, aren’t tolerating an unhappy marriages anymore or are single parent. It is a must that every woman should be aware of her finances and must know how to manage her finances for thriving.
Today, approximately 57% of women entrepreneurs are sole decision makers of their finances, while the rest take the decisions with their spouse, father or significant other.
Lastly, trust and emotions are crucial drivers in women’s decision making. Women can connect and belief a role model and follow her footsteps to begin investing.
Women have the potential to work in adversities, women have the potential to create history and women have the potential to secure their future with investing. There’s no power like women power. All kudos to women empowerment! to strong and independent women , make the right choice , make the right investments.
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