Top 11 Investment Options for Women

Why women should invest?

Embracing effective investment strategies is key to securing a woman’s financial future and achieving her long-term goals. They can transform their financial empowerment into reality by exploring a variety of investment options for women, such as mutual funds, alongside traditional savings accounts. Investing wisely is not just a choice; it's a powerful step towards taking control of one’s financial destiny.

How can women begin their investment journey and benefit from a unique investment strategy?

Achieving financial independence can be challenging for women due to factors such as the pay gap and the number of years spent in active work. Here’s a list of the best investment options for women to help them get started:

1. Public Provident Fund (PPF)

Public Provident Fund (PPF) is an excellent investment option for women looking to contribute a specific amount over a long period. This investment allows them to benefit from compounding interest, thereby helping to create a substantial corpus for their long-term financial goals. Additionally, the tax benefits associated with PPF can reduce their overall tax liability, thereby enhancing their resources for further investments. With guaranteed returns of 7.1% per annum over a 15-year period, PPF is the best investment plan for women.

2. National Pension System (NPS)

The National Pension Scheme (NPS) is a pension system available to all citizens of India, regulated by the Pension Fund Regulatory and Development Authority of India (PFRDA). Subscribers contribute funds that are subsequently invested in market-linked financial instruments such as debt and equities. The final amount in the NPS account depends on the performance of these investments. Generally, the NPS offers an interest rate ranging from 12% to 14% on the contributions made. Any Indian citizen between the ages of 18 and 60 can open an NPS account. For women considering investment options for women, opening an NPS account as soon as possible is a wise decision for achieving post-retirement goals.

3. Mutual Funds

Mutual funds are an excellent investment option for women who have a high-risk appetite. With professional guidance and the flexibility to choose funds that align with their long-term financial goals, mutual funds provide great opportunities for wealth building. They offer the potential for higher returns compared to traditional fixed-income options, making them ideal for investing for women over a longer period. With a wide variety of mutual fund options available, women can easily create a diverse investment portfolio that balances risks and rewards, ultimately leading to higher returns.

4. Life Insurance

Unit Linked Insurance Plans (ULIPs) are life insurance products that help you save for your financial goals and provide life insurance protection, making it the best investment plan for women. For women who are the primary earners in their families, ULIPs can offer financial security against the risk of premature death. In the unfortunate event of their demise during the policy term, a ULIP pays a death benefit to support their families in coping with the financial loss. ULIPs provide a variety of fund options for investing your premiums. If you have a high-risk appetite, you can invest in equity funds that have the potential for higher returns. Conversely, those with a low-risk appetite may prefer debt funds, which offer more stable returns. With diverse fund choices available, ULIPs cater to women investors with varying risk tolerances. Additionally, many ULIPs offer ready-made investment strategies that automatically allocate your premium in a pre-determined manner. This feature is particularly beneficial for women who are new to investing or those who need help managing their portfolios, allowing for a hassle-free investment experience.

5. Sovereign Gold Bonds

This is one of the best investment options for women as they prefer investing in gold to get benefited from capital appreciation. Sovereign Gold Bonds (SGBs) are the perfect alternative to investment in physical gold. With these bonds, you can enjoy capital appreciation and also earn interest every year. These bonds, issued by the Government of India, also eliminate several risks associated with physical gold.

6. Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana (SSY) is a savings scheme launched back in 2015 as part of the Government initiative Beti Bachao, Beti Padhao campaign. This scheme enables guardians to open a savings account for their girl child with an authorised commercial bank or India Post branch. SSY accounts offer an 8.2% rate of interest. A Sukanya Samriddhi Yojana calculator can help you determine the returns you receive as per the invested amount and tenure. The Sukanya Samriddhi Account is designed to provide a bright future for your girl child. It offers a high interest rate of 8.2% and tax benefits under 80c. Conveniently invest in this scheme online through your bank. Instantly transfer funds from a linked savings account or set-up standing instructions for automatic debit. You can easily view Statement online, anytime only if you have a linked Saving A/c. This savings plan is ideal for investing for women.

7. Kisan Vikas Patra (KVP)

KVP is a government-backed savings scheme and is one the preferred investment options for women. KVP offers attractive interest rates, currently fixed at 7.5% per annum. The interest is compounded annually and matures the investment in approximately 9.5 years (115 months), doubling the initial investment.

8. Term insurance policy under the Married Women's Property Act (MWPA), 1874

A married man can buy a policy under the MWP Act for his wife and children. A divorcee or a widower can also buy a policy under the act for the benefit of his children. One of the primary benefits of the MWP Act is that it helps individuals safeguard their assets from potential legal threats and creditors. By allocating insurance benefits exclusively to named beneficiaries, the MWP Act ensures that the payout is protected from external claims, guaranteeing the financial security of the insured individual and their family members. The policy taken under the MWP Act gives a clear title to the beneficiary, i.e., wife and children, and it assists in demarcating the rights emanating from such policy in the event of any family disputes over inheritance or estate of the deceased husband

Investment Options offered by Suryoday SFB

1. Suryoday SFB Fixed Deposit

Fixed Deposits (FDs) are a reliable financial tool for savers seeking the best investment options for women. Many financial institutions provide special FDs for women, often with higher interest rates than regular FDs, allowing for faster growth of savings. These FDs offer guaranteed returns, making them an excellent choice for women who prefer low-risk investments. Additionally, some institutions provide flexible tenure options and extra benefits, such as easier access to loans against FDs. For women planning for future expenses, such as education, marriage, or retirement, FDs represent a safe and effective way to build a strong financial foundation.

2. Suryoday SFB Recurring Deposit

Women have begun taking control of their finances by selecting the most suitable investment plan for women and securing their financial futures. Recurring deposits as a financial tool offer a valuable opportunity for investing for women, to save and grow their money over time. Whether it’s for a dream vacation, starting a business, or building an emergency fund, recurring deposits can help women achieve their financial goals.

3. Suryoday SFB Double Joy Deposit

Suryoday’s Double Joy Deposit is one of the ideal investment options for women seeking goal-based investment. Nothing beats the joy of securing guaranteed double returns at the start of your investment journey! With Double Joy Deposit, invest with peace of mind and double your happiness. Designed to encourage regular savings to build a corpus and get recurring monthly pay-outs after the payment term.

At Suryoday SFB, we believe there are more opportunities than ever for women in investing, offering the best investment options tailored to their needs. For every woman, it is essential to prioritise their financial wellness, practice financial wellness and seek answers to an important question - ‘why women should invest’. With these must-haves in every woman’s financial portfolio, investing for women can be made easy. As a woman, you can understand your current situation, have a clear direction for where you want to go, and feel confident about it, which will bring you closer to gaining control over your money and living life on your own terms.