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A Guide To Mutual Fund Investments – For Women Who Want To Start Investing

Posted: November 29, 2019

For independent women who want to achieve their financial goals, there is no other better option than investing in mutual funds for a prolonged period. 

In present times, women are making colossal progress across various sectors, be it business, sports or services. Women are actively managing money and at the same time taking independent economic decisions.

It is indeed judicious to start early and make an investment in the best mutual funds to become secured financially, so that your goals and dreams can also be accomplished. 

If you are an independent woman and want to achieve your financial goals, then there is no other better option than investing in mutual funds for a prolonged period.  It will not only eventually, develop dedicated savings habit but it will generate high returns on the money that is saved.

Modern-day women are smart, strong and financially independent and are capable enough in meeting their needs. But it is also important that they must plan for future financial goals.

There are several investment options that women can consider, but it is advisable that you must choose the right plan that yields high returns in the future. One must know about the plan before making an investment. It is of utmost importance to know the plan well or you might have to regret later. 

Best mutual fund categories

When it comes to making an investment, you might be thinking about how to invest in India. Here are the best schemes for women for making an investment. Let’s have a look at the following:

Debt Funds

These funds offer a return of 7%-9% and the funds are invested in money market instruments and pure debt instruments. You will find investment options like FMPs, MIPs, liquid funds and other options under this scheme for investment. This scheme is an appropriate investment option for those who don’t want to take any risk of high market unpredictability.

Nevertheless, the unpredictability factor cannot be overridden completely. 

Sectoral funds

When you want to invest your funds in some sector, you can select this type of scheme. Investment can be made in various sectors like banking sectors, IT and Telecom sector and so on. Sometimes, there are some sectors which grow hugely. As a result, take advantage of the situation and make an investment. 

Liquid funds

It is a type of mutual fund which invests in securities and has maturity up to 91 days. There is no lock-in period for liquid funds, so the assets spend are not kept on hold for a prolonged period. You can redeem it easily at any time. A mutual fund ICICI prudential liquid fund direct plan by ICICI Pru Mutual Fund would give 5%-7% returns. 

Balanced funds

It is an equal combination of equity and debt stocks that can be a bond element or money market element. This mutual fund scheme benefits those who are irresolute in making an investment in risky funds or less-risky funds. When compared with other liquid funds, this particular fund offers good returns.

Diversified Funds

This investment fund comprises of various securities for reducing the amount of fund’s risk. It mostly spreads risk into several sectors that help investors who are unwilling to take the risk. Maintenance of diversification actively helps in avoiding the events which affect one sector as well as diminish heavy losses if the condition of the market is likely to be unfavorable. For investment purposes, these funds are considered a better option and offer better returns than liquid funds.

Flexi-Cap Funds

This type of fund does not depend on the company’s market capitalization that makes the fund manager make the best possible use of the chance which the fund managers are getting from the instability of the market. The possibility of expanding the investment is much higher in these types of funds.

Large-cap funds

These funds comprise of blue-chip companies with capitalization of a large market. Though, the criteria for becoming large-cap vary with companies taking into consideration their vast market capitalization.

In the market, a wide range of mutual funds are available in the market like mutual funds for housewives and so on.  These large-cap funds offer steadiness and sustainability with less return when compared with mid-cap/small-cap funds and diversified funds under usual conditions. These funds indeed help in generating a good amount for the investors in the long-run.

Mid-cap/small-cap funds

The nature of these funds is highly risky but offers remarkably high returns because it includes the funds of small and rising companies that offer matchless good returns. These funds are appropriate for those who are belligerent in taking a risk. Under normal conditions, these funds offer the highest return when compared with other funds category. For example Kotak small cap fund direct from Kotak bank mutual fund.

Tips On How To Invest In A Mutual Fund

Here are some of the tips to follow when making an investment in a mutual fund. Let’s take a look at the tips:

  • It is highly advisable that before the investment is made, the investors must do extensive research on various mutual funds available in the market, remember to check the hidden cost. This will be of immense help in choosing the right fund for you. Always start an investment with the minimum amount and gain the experience. 
  • You must analyze the goals correctly what is the time prospect for your investment and how much risk you can take.
  • If you do not want to take risk, then invest in debt funds. But if you are capable of taking the risk, then go for equity funds. 
  • If you fail to save enough money at the end of the month, then you can choose Systematic Investment Plan.option.
  • You can also invest online. all you need to do is to fill online a KYC form and make the payment

 In Conclusion

 Before you make the investment, consult with your financial advisor. The more years you invest, you can create more savings because of the compounding effect. Thus, it is recommended that you start investing at the earliest.

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