In a large majority of Indian families, wealth management is considered to be a male domain. Traditionally speaking, savings and investment decisions are made by the male members of the family — fathers decide where to invest for their daughters and then husbands tend to decide where to invest for their wives. But, did you know that several studies have shown that women actually make more effective and influential investment decisions than their male counterparts?

This is attributed to some of the inherent qualities that women possess — they are more risk averse, they like to ask questions and research when they don’t know certain things and prefer to participate in ‘safer’ investments that have shown some consistency in performance. Financial experts feel that women also tend to have a more long-term approach with investing, which works well as they tend to gain from the stability.

As more women join the workforce and gain financial independence, the trend seems to be slowly changing. Today, we see women managing more wealth than ever before, investing across asset classes and influencing financial markets as shareholders and as representatives on the boards of top companies. Understanding wealth management can help women take control of their future and create financial security for themselves and their families. Let’s look at some of the reasons why every woman must start her investment journey.

To beat inflation

A lot of women, especially those managing the household finances, tend to save out of that and set aside cash for their own expenses. In fact, during the pandemic, many women were seen hoarding cash and gold for a sense of security. What they don’t realise is that sitting on cash depletes its value. As in a country like India, where inflation will be in the 5-6 per cent mark, you will deplete that much value every year. Investing into assets like Mutual Funds offers the same amount of liquidity — you can convert your money into cash at any time — and yet earn returns on it that will help negate the impact of inflation.

To create a buffer

Whether you earn a small amount of money or more, you can participate in the financial planning journey for your family by making an investment at regular intervals. Women are known to go to great lengths to plan balanced meals for their families for their physical wellbeing. Having a well-balanced investment portfolio is equally important for the financial wellbeing of your family and can act as a buffer on a rainy day.

To get better returns

As we have already mentioned, there are several factors that make women better at taking investment decisions than men. Women investors are known to seek more information before putting their funds into a new asset class. They also tend to take a broader view of the economy and create a more diversified portfolio, which delivers balanced returns.

To enhance the family’s overall wellbeing

Giving the ‘CEO of the family’ control over the finances can extend beyond just wealth management, empowering women to make more informed decisions for the family in other domains. Women tend to understand that opening a Demat account or investing into Mutual Funds in their own name is not unthinkable. With a little understanding of financial assets and some reading, it is a skill that can be mastered. When daughters of financially independent women see their mothers involved in financial decisions, this permeates down to the next generations too.

To secure their future

Women are known to outlive men and, therefore, they must be financially secure. If they have control over their finances, women will be able to take control of their lives and that of their children in case of an untoward event. Wealth managers often come across women who have no idea about the finances of their family and in the event of death of the main breadwinner, they are totally clueless on where to begin. This can easily be avoided and women can become masters of their own destiny.

In conclusion

We have already established why every woman must invest regularly and have a diversified investment portfolio. An easy way to start is by investing into Mutual Funds, which can be a great tool to make your money grow. A mutual fund investment can be a great option for those who are starting out — they offer the benefits of diversification in one investment, your money is managed by experts who are trained to make investment decisions, you can start with any amount and have flexibility to choose when you wish to invest and for how long. Mutual funds are also an easy investment to choose, as you can invest in them via your bank, or online, or through an independent financial advisor, depending on what you find simplest.

For information on one-time KYC (Know Your Customer) process, Registered Mutual Funds and procedure to lodge a complaint, refer to the knowledge center section available on the website of Mirae Asset Mutual Fund

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.