Why is investment planning important for women?

April 20, 2021 11:22 AM

It is important for women to focus on planning their finances for meeting their long-term goals and aspirations.

The earlier you start investing, the sooner you will be prepared for achieving your financial goals.

Women today are fast making it to the forefront across various spheres of life. We have more women at the helm of corporates with a presence in multiple regions of the globe. Many are taking the initiative into entrepreneurship while other are successful athletes. With double income families increasingly becoming the norm in the middle class, a greater number of women are joining the workforce. With women contributing towards income generation, I believe it is important for women to focus on planning their finances for meeting their long-term goals and aspirations.

Here’s why investment planning is important for the women of today.

It brings financial freedom

Financial freedom translates into having economic independence. Every woman who dreams about being economically independent needs to become self-sufficient or capable of meeting her financial needs. For this, she needs to start building the assets with a sound investment plan. Depending on the financial situation, risk profile and time horizon, women can choose multiple investment products to grow their assets in a timely manner. As a rule of thumb, remember to start early to reap the benefits early.

It helps women meet their life goals

Women today have many professional as well as personal life goals. It may range from travelling the world to kick starting their own businesses. And all of these goals need to be backed by adequate finances, where investment planning helps. With the right financial plan, women can ensure that they meet their goals in the timeframe needed, without relying on others to back their dreams.

It comes in handy during career breaks

There’s no denying that women tend to take more career breaks than men. This could happen at various stages of life, such as when women get married, when they have kids, or even when their spouse is transferred to a different city. In recent years, women are also taking career breaks for upskilling themselves or pursuing further education. A break in career also means a break in income. During such phases, savings and income from investments come in handy.

It is important for retirement

It’s no secret that women, on average, tend to live longer than men. However, both homemakers as well as working women often tend to rely on their spouses for financial security during their retirement. But with the right investment plan, women will find it easier to secure their own retirement years financially.

Investment options that women can include in their financial plan

Much like how there are several reasons for women to focus on investment planning, there are also many investment options available that women can look into when planning their investments.

Life Insurance is one of the preferred choice of investment while planning for Life Goals as it brings the advantage of both insurance as well as investment. Depending upon their goals and risk profile, women can chose the type of life insurance ranging from term plans to ULIPs (Unit Linked Insurance Plans). By choosing ULIPs as a part of their investment portfolio, women can secure the future of their dependents while simultaneously tapping into the advantage of market-linked returns.

The bottom line

My advice is simple. Do not procrastinate. Start early in your investment planning journey. Read up; speak to consultants, or your colleagues or family friends. Remember, the earlier you start investing, the sooner you will be prepared for achieving your financial goals.

(By Reshma Banda, Head – Equity & Senior Vice President- Investments, Bajaj Allianz Life)

Disclaimer: The opinion expressed by the Author in this article is not to be construed as investment advice and readers are advised to seek independent financial advice before taking any investment decision.

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