Indian Women are Natural Savers and could be Excellent Investors
Today, women in India are more independent and self-sufficient than in the past. They have shattered all barriers and broken free from the tangles of the erstwhile male-dominated Indian society, seemingly outpacing men in every aspect but one – INVESTMENTS. As, when it comes to investing their hard earned or hard-saved money, Indian women continue to stick to the conventional cash savings or bank Fixed Deposits, despite their low return on investment. Practically, the earnings on their investments are so low that it can hardly beat the inflation. This is despite the fact that Indian women today get an equal opportunity to learn about and explore alternative investment avenues. However, most of them choose not to consider them. A survey by Central Depository Services India Ltd (CDSL) suggested that less than 25% women consider stock markets for investment. But why? Let us find out.
Why do Indian women prefer traditional investments over equities?
The societal roots in India defines men as providers and women as nurturers. Thus, how the money would be earned, spent and invested were responsibilities primarily vested with men. Women were never involved in investment decisions. Though with time, women stepped out of their roles as nurturers and became financially independent, they still felt disempowered when it came to handling investments on their own. Thus, most of them are still reliant on their husbands to channelize their savings into desirable investment avenues. For one moment, even if we choose to ignore this, what are the options available to the 74 million single women in India (2011 census)? Also, what about women who do not have anyone to rely on- Should they stay put in FDs? It’s time for them and all others to wake up to the call of investment planning, empower themselves, and move towards financial literacy.
Women are better off than men when it comes to investing
Women are known to be more competent at making decisions, are less impulsive, better planned and more pragmatic and systemized when it comes to money. They are also more open than men to admit their mistakes and learn from them. Especially so in India, where women by nature are savers and are explicitly popular for their skills of squeezing out money from the household expenditures or income and keeping it aside as their own personal savings. They are excellent at managing hard earned finances and certainly deserve a chance at investing for themselves and those around them.
So, move out of your shells, discard the dependency, know that you can do it, and help your investments score best returns. It’s not a rocket science and you do not have to be good at maths. Just hold our hands as we show you the way.
The way forward- Empowering women towards financial literacy
Most women dread stock markets as they feel it is too complicated and full of financial jargons. Let go these fears, as they say “Saab mind main hai”. One needs to start moving Step by Step towards understanding different investment avenues.
Team Ventura is truly committed to women’s financial empowerment and would be keen on helping them take the right decisions. We would be glad to be your “Google Assist” for Investment Decisions.
According to us the first few steps towards understanding the complex world of investing could be:
- Invest in MF SIP’s
Conventionally, women in India are married to the idea of setting aside a small but constant portion of their income. Exactly the reason, why Fixed Deposits is such a hit with them! We have already spoken about how FDs do not even beat the rate of inflation, leave alone providing returns and earnings. So, why not invest the same amount every month in equity based Systematic Investment Plans (SIPs). They are unarguably the best financial tool in the hands of the investors and promise excellent returns over the longer run. We will guide in your choice of funds after looking at your risk appetite and time horizon.
- Start Understanding Stocks:
Do stocks sound very risky to you? Yes, but prudence would make it little easier to understand. The best way to understand a stock is by just being more aware of your surroundings. Simply observing small things in your day-to-day life canhelp you build a significant understanding about what products are selling and what are not and what will be the next big hit in the market. For instance, when you move out to buy a light bulb/switch and every other shopkeeper suggests you to purchase Havells, it means that Havells has a good reputation and its products are in demand, which in turn means that it can be worth a buy.
A classic example of this is Maruti. in 2010, the roads had started to flood with multiple variants of Maruti cars and people were blindly pursuing the brand for the cost savings and durability that it promises. A keen observer back then wouldn’t have failed to notice the trend, bought some Maruti shares (at Rs. 1300 appx) and would be enjoying good fortune today as the price has soared five times to Rs. 7500.
- Consult a financial advisor
Once you had made up your mind to start a SIP or practiced higher awareness for shortlisting few stocks that may work in your favour, the next step would be to decide which mutual fund to choose or conduct some advanced research on the stock with help of a financial advisor.
“Let’s create an environment where every woman has the ability to decides where to invest by herself”
Disclaimer: Ventura Securities Ltd has taken due care and caution in compilation of data for its web blog. Information has been obtained from different sources which it considers reliable. However, Ventura Securities Ltd does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Ventura Securities Ltd especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its web blog. The information provided herein is just for the knowledge purpose and shouldn’t be construed as investment advice under any circumstances.
The section on stock selection is so true !!! Simple observations can lead to good investments !!!
I’m impressed your message