Women manage monthly budgets so easily that no one has to worry about the same. And from that, a little amount is saved. Now, the question is – what should women do with that saved sum? Well, in times like this, making sound investments matters. And there are plenty of investment options women can choose from to achieve their financial goals. Both risk-oriented and fixed return investment options are available. So which are the best investment plans for women from the available options? Let’s find out in the article below.
Investment Plans for Women in India
Women have become more stronger and self-reliant in society today owing to exciting job opportunities. And with the following investment plans, they can earn more.
Savings Account for Women
There are banks like HDFC, ICICI, IDFC and more that provide specially-designed savings accounts for women. Well, you must be thinking about how it is different from a regular savings account. In this, you’ll get –
- High Interest
- Other exclusive privileges
And this is the first and foremost investment plan that can come to one’s head. So, if you want to play safe with your investment, open a women’s savings account.
Public Provident Fund (PPF)
This is a savings cum tax benefit investment plan where you’ll get an interest more than the savings account. Currently, the interest is 7.1% per annum on PPF. Using this investment plan, you can build a corpus for your retirement. And you can begin investing with a minimum of INR 500. The maximum investment is INR 1.5 Lakh a year in PPF.
This is a risk-free investment option wherein you can earn tax benefits under section 80C of the income tax act, 9161.
Employee Provident Fund (EPF)
EPF is a retirement scheme for employees working in the government or private sector. In this, a portion of your income is invested in the EPF account wherein an interest of 8.1% per annum is available. From your 12% contribution, 8.33% goes into the pension scheme while the remaining is in the EPF account.
National Savings Certificate (NSC)
An Indian Post Office savings product that offers 6.8% interest on your investment. You can start with a minimum of INR 1,000. This savings product comes with a lock-in period of five years. It is a low-risk investment for women and helps them earn steadily. You can visit any nearest post office branch to get NSC.
Kisan Vikas Patra
A small savings account is introduced by the Indian Post Office to double your investment over 124 months. You can invest a minimum of INR 1,000 in this. There is no upper limit for investment in the scheme. Types of Kisan Vikas Patra Certificate –
- Single Holder – This is issued to an adult for self or on behalf of a minor
- Joint ‘A’ – For two adults, and here, the amount is payable to both the holders jointly or to the one who is alive till the end of the term.
- Joint ‘B’ – For two adults, and in this, the amount is payable either to the holders or the one who survives.
Fixed Deposit (FD)
You can grow a lump sum amount with FD investment. Here, your money will be invested for a fixed tenure and provide you with a fixed interest. The FD rate ranges from 3.00% to 8.00% based on your deposit amount and chosen tenure. You can invest up to 10 years in FD. And there is no risk of market fluctuations, so you can get the desired amount at the end of the tenure. You can use the FD calculator and find the expected outcome.
Neha is looking to invest some money in a fixed deposit. She uses the FD Calculator to find the possible return –
- Investment amount – INR 25,000
- Tenure – 5 years
The applicable interest rate is up to 6.80%. So, by March 2027, Neha will get an amount of INR 34,737
There is a wide range of mutual funds available in the market by which you can earn high returns on your investments. Equities offer high returns, but the risk is high too. Equity funds can be the best investment plans for women who could take more risks for high returns. For investors with medium to high-risk appetites, a hybrid fund with a mixture of equity and debt investments will be better. In this, a part of your investment will go on equity while the rest will be invested in a debt instrument. So in case, the market is down, you won’t face a higher loss. And if you’re new to mutual funds, invest in debt funds that are more secure and help you learn the market movements. How to invest in mutual funds? You can invest directly through the asset management company (AMC) or distributors tied up with the former.
Unit-linked Insurance Plan
A life insurance cum investment plan wherein women can protect their family plus invest some money to build a corpus till the end of the policy period. In case the insured dies, the insurance company pays a death benefit to the nominee. And this amount is subject to the sum insured that can be from INR 10 Lakh to INR 1 Crore. In this, the policyholder gets different funds to choose from. So, choose the fund that helps you meet your financial goals and comes with the risks that you can afford. And accordingly, a part of your premium amount will be invested in the fund.
During the tenure, the insured will get the following benefits –
Loyalty additions – The company will invest a percentage of the premium amount in your chosen fund. And this will enhance your outcome.
Partial withdrawal facility – In case of a financial emergency, you can withdraw units from your fund. And this facility is available after five contours policy years.