Should You Choose 'S' for Shopping or Saving?

While the whole world is celebrating the International Woman's Day today, you should not miss out this opportunity to express gratitude towards all the women in your life, you could give them flowers or ornaments but how about going a step further? You could look forward to empower the women around in your life by guiding them towards financial security.

Generally the first thing that a woman who has spare cash will think of is 'Shopping', but when it comes to 'Savings' or financial planning, women seem to take the back seat. Today we see a large number of women venturing out and working alongside the male in almost every profession. They are not just independent, but also capable enough to make themselves financially secure. But many a times we see that they pass on the responsibility of financial planning to their father, brother or husband. So it's your responsibility to create awareness of financial planning amongst the women around you and educate them on money management and investments.

Below are some investment avenues where women can look to park their money:

Different AMC's also provide investment options via SIP in Gold funds.

While the above options are a bunch of different investment avenues from different asset classes, it is also important to diversify the corpus across a few of these investment options and create a balanced portfolio.

Thumb rule for asset allocation - 'Don't put all your eggs in one basket'.

In other words, rather than putting all their money at one place, spread it across different asset classes, to reap maximum benefit and balance out the risk factor. A sensible asset allocation decision will align the assets according to the needs of the women in your family. It is strategic as it looks into the foreseeable future and builds the allocation bearing the risk, return and liquidity needs in mind.

Nevertheless asset allocation can be decided by measuring risk that is involved with each asset class. Therefore before women take their investment decision they need to consider both aspects of risk - their risk appetite and the risk level of the investment options being considered.

An appropriate risk allocation, along with overall total risk and return targets, should be thought of as the blueprint of diversifying portfolio risk, while asset classes are the bricks and mortar used to execute the design.

Measure and calculate a suggested asset allocation for savings required.

Moreover, as she takes her first step towards making herself financially secure, you could just stand by her side, support her financial dreams and you will see her bloom as a confident, independent financial pro who can make choices beyond grocery lists, handbags and beauty products. Who knows, she may even show her gratitude by helping you meet your financial dreams too!

PS: While we appreciate your efforts to guide the woman in your life towards financial planning, you are still not excused to do away with gifts and celebrate her womanhood.

Disclaimer, Statutory Details & Risk Factors:
Mutual fund investments are subject to market risks read all scheme related documents carefully.