How Should Women Invest: A Complete Checklist (2024)

Managing money is not new to women. They’ve been expertly juggling everyday expenses with saving for long-term goals since the days when there were hardly any banks or lucrative investment options. Today, women have far more opportunities to invest. They also have much more money in hand, especially if they are working and are financially stable.

While everyone wants to grow their capital, many women in India shy away from investing due to their limited financial knowledge or understanding of the various options. Others are under the misconception that investing requires large sums, so they postpone the decision for when their income is higher.

Why Should Women Invest?

With the role and responsibilities of women evolving with the changing times, there is a clear need for women to take charge of their finances. They need to invest wisely and make their wealth grow for several reasons, some of which include:

  • Financial independence: Women can have a better control over their financial future if they choose to invest right towards being financially independent.
  • Wealth building: Starting early and investing consistently can help women tap into the power of compounding to steadily build wealth over a period of time.
  • Retirement planning: Women generally live longer than men. Hence, they need to ensure that they have enough savings to last through their retirement years.
  • Closing the gender wealth gap: Investing can help women close the gender wealth gap by providing them with access to the same investment opportunities as men.

How Should Women Invest?

It’s important for women to consider their individual goals, risk tolerance, and financial situation when planning their investments. Before delving into specifics, it is important to first answer a few questions. What are the priorities for a woman to invest? What is their ability to save? When is the money needed? What is their risk appetite? Let us examine each of these in detail:

  • Identify your needs and evaluate the duration of those needs
    What are the goals and aspirations you need the investment to fulfill? The duration will give you an indication of the amount of money required and the investment horizon for each goal. Once you have identified your priorities and the timelines, it is important to match them with the appropriate investment products. Here are some examples:
    • Saving for a short-term goal: If you are saving for a short-term goal, such as planning an international holiday, putting a down payment for a house or vehicle, or paying children’s fees, you may want to consider a Savings account or a short-term bond. Investments in recurring deposits, liquid funds, and fixed maturity plans will also provide safety of capital and return on investment for short term goals.
    • Saving for a long-term goal: Long-term goals such as children’s higher education or marriage, or setting up a business, can be achieved by investing in equities, ULIP and ETFs.
    • Saving for retirement: If you are saving for retirement, you may want to consider investing in stocks, mutual funds, pension funds, or exchange-traded funds (ETFs). These products offer the potential for higher returns over the long term.
  • Assess risk tolerance
    Risk is an important factor in investing as it determines the investments you choose. The rule is simple, high returns involve high risk. If you are someone who treads cautiously, opt for low-risk investments but be informed that the returns will not be high.
    As a risk-averse investor with long-term goals, you can invest in debt funds, savings insurance plans, bonds, conservative mutual funds, and bank deposits that give you low but steady returns. The risk-takers can get higher returns from equities, ULIP, and savings insurance plans.
  • Evaluate your ability to save
    Investments come from your disposable income, which will determine your investment capacity. Ideally, you should save a fixed amount every month and manage your spends with the remaining amount. It is important to strike a balance between investing and other financial priorities, such as paying off debts.
  • Diversify your investments
    The saying “Don’t keep all your eggs in one basket?” applies for investing as well. Diversification helps investors manage risk by reducing the impact of market volatility on their portfolios. By diversifying across different asset classes, such as insurance, stocks, bonds, and mutual funds, you hedge the dependency on any one asset class for returns.
  • Determine your level of financial knowledge
    While you do not need to be a financial expert who understands the nitty-gritties of how investments work, a reasonable level of financial knowledge will help you gain better control over them. It is important to educate yourself on investment options, how returns are calculated, financial planning, and the risks and rewards of different investment products, for your own benefit.
  • Hire an expert advisor
    Even if you do have a good amount of financial knowledge, it may be difficult to monitor your investments on a regular basis, especially market volatility. Hence, it’s advisable to hire a professional financial advisor to provide guidance and help create an investment plan that aligns with your financial goals and risk appetite.
  • Leverage tax benefits
    Investing in tax-saving investments such as Public Provident Fund (PPF), National Pension Scheme (NPS), and Equity-linked Savings Scheme (ELSS) can help women save money. These investment options not only offer tax benefits but also help women build a corpus for their long-term financial goals.
  • Insurance offers the best protection
    Contrary to what people think, insurance is associated with protecting life and benefiting from this. Different insurance plans fulfill different needs – such as financial security for family, wealth creation, income generation, retirement planning, healthcare, children’s future ambitions, and a whole lot more.

Bottom Line

Women should invest based on their individual needs, priorities, and financial goals. It is important to assess your risk tolerance, financial knowledge, and ability to save. Once you have identified your needs, you can match them with the appropriate investment products.

Seeking professional help can also be beneficial for those who lack the knowledge or experience to invest on their own. By taking the time to understand your financial situation and needs, you can create an investment plan that aligns with your goals and helps secure your financial future.

How Should Women Invest: A Complete Checklist (2024)


What should women invest in? ›

Assess risk tolerance

As a risk-averse investor with long-term goals, you can invest in debt funds, savings insurance plans, bonds, conservative mutual funds, and bank deposits that give you low but steady returns. The risk-takers can get higher returns from equities, ULIP, and savings insurance plans.

What are the facts about women investing? ›

As of 2023, around 60% of women in the US are investing in the stock market in some way or another, compared to just 40% in 2017. And with the approach of the Great Wealth Transfer, women are expected to control $30 trillion by 2030. Not bad — considering we got a late start in the financial game.

Why do we need to invest in women? ›

Evidence shows that closing gender gaps could boost GDP per capita by 20 per cent. Investing in women can be an opportunity. It is estimated that closing existing gaps in care services and expanding decent works, would create almost 300 million jobs by 2035.

How to be financially secure as a woman? ›

Set goals to ensure your financial security

Tayne suggests starting simple with saving, debt payoff and long-term planning. Contribute regularly to a savings account. Generally, experts advise saving at least 20% of your gross income each month. However, any amount you can save will help the future you.

How can a woman invest in herself? ›

5 Simple Ways to Invest in Yourself
  1. Prioritize Self-Care.
  2. Continuous Learning and Professional Development.
  3. Build a Supportive Network.
  4. Embrace Mindfulness Mindset.
  5. Set Goals and Take Action.
Aug 4, 2023

Do women invest better? ›

Women tend to be better investors than men, but don't always take enough risk, CEO says. Women tend to think of themselves as savers rather than as investors. Over time, not taking enough risk may reduce their wealth. Here's what one long-time portfolio manager says women can do to change that.

What does girls who invest do? ›

Girls Who Invest (“GWI”) is a non-profit organization founded in April 2015 dedicated to increasing the number of women in portfolio management and executive leadership in the asset management industry.

Who is the best female investor? ›

Top Female Angel Investors According to Exit Rate
RankAngel InvestorNumber of Investments
1Kim Perell26
2Marissa Mayer28
3Caterina Fake29
4Constance Freedman47
18 more rows

What happens when we invest in women? ›

Investing in women has many benefits. For example, there is often a multiplier effect, as women will prioritize a good education for their children and share their knowledge with their communities. Women increase trust because they rarely misuse funds.

What does investing in women mean? ›

Investing in women also means giving her access to the various resources needed to help her overcome the various challenges she faces. This way she can build a world in which she can realise her rights by thriving in all areas (financial, professional, etc.).

How can we empower women? ›

Here are 10 Ways to Empower Women in the Workplace:
  1. Equal Opportunities. ...
  2. Diverse Hiring Practices. ...
  3. Enact Fair Parental Leave Policies. ...
  4. Professional Development. ...
  5. Pay Equity. ...
  6. Support for Work-Life Balance. ...
  7. Promote Inclusive Leadership. ...
  8. Zero Tolerance for Discrimination and Harassment.

Why do women invest differently than men? ›

Examining the investment behaviour of women

Women also regularly take a more “disciplined and considered” approach than their male counterparts, according to Reuters, which cites statistics showing that women make higher use of stop-loss orders to reduce risk.

Why should a woman be financially independent quotes? ›

"Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver," — Ayn Rand, novelist and philosopher. “A woman's best protection is a little money of her own,” — Clare Booth Luce, American author and US ambassador.

What does it mean for a woman to be financially independent? ›

Financial independence offers women the freedom to make life choices without being constrained by economic limitations. It enables them to pursue education, career opportunities, and personal passions without relying on anyone else for financial support.

How do I become financially savvy? ›

Becoming Financially Savvy: Empowering Your Financial Journey
  1. Educate Yourself. ...
  2. Establish Clear Financial Goals. ...
  3. Create a Budget and Track Spending. ...
  4. Build an Emergency Fund. ...
  5. Manage and Reduce Debt. ...
  6. Invest Wisely. ...
  7. Protect Your Financial Future. ...
  8. Continuously Evaluate and Adjust.
Feb 9, 2024

What do females spend the most money on? ›

A $526K Lifetime Tab: All the Ways Women Pay More Than Men
  • Personal Care Products. On average, women's shampoo costs around $9 while men's shampoo costs close to $6, Business Insider reported. ...
  • Home Ownership. ...
  • Feminine Care Products. ...
  • Clothing and Accessories. ...
  • Beauty Products. ...
  • Healthcare. ...
  • The Total Cost.
Jan 19, 2024

What is a woman's most valuable asset? ›

A woman's most valuable asset is her pure heart. #lady #purehea… Motivational quotes for life, Inspirational quotes about success, Inspirational quotes for women.

What is the average age women start investing? ›

Start early.

On average, women ages 18 to 35 are starting their lives as investors much earlier in life – nearly a decade earlier than women ages 36 and up. The pandemic seems to have played a role in jump-starting young women's adventures as investors.

What is the best thing to invest in to make a lot of money? ›

In a nutshell

High-yield savings accounts, money market accounts and certificates of deposit have recently started offering yields above 5% annually. Bonds may provide slightly higher yields than savings accounts. Stocks are the most risky investments, but they can provide higher returns over the long term.


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