Vijay Sagar Shenoy
Chartered Accountant
author can be reached at vijaysagarshenoy@gmail.com
Investment Avenue for Women
Investing is an element which can come out of saving. To save, you have to spend less than you earn. What you earn works when you earn and what you save can be put to work even when you sleep. This Passive money plays pivotal role in your wealth and sometimes exceeds even what you earn. Ladies are well known as home finance manager. Then have inherent skills while managing money, they budget, spend less and save always. It is how you invest of what you save that counts. You have options like below, which you can use as a basket for investing: 1. Public Provident Fund, which if you prudently contribute maximum sum possible; it compounds phenominally. 2. National Pension Scheme- even beyond mandatory 80C limit, additional deduction of Rs. 50000 is eligible for income tax. This helps secure your retirement and also is tax efficient. It is open even for public. The income gets compounded without any loss of tax on incremental yearly accretion. 3. Equity exposure: Benefit from the spirit of entreprenuership. But it can be fraught with risks and suggest equity mutual funds as option. Get SIP option rolling and unlock the benefits of equity. 4. Fixed Deposits. Though good secure option, is not inflation hedged. 5. Debt Mutual Funds: Are tax efficient and is inflation hedged and tax efficient. 6. NSCs and Postal instruments: This also is a useful instrument for own women investors. 7. Sovereign Gold Bonds: Instead of physical gold, Gold bonds from Government fetch interest. If you have time on your hand, once redeemed you can buy gold at required timeand benefit from interest. 8. Senior Citizen Savings Scheme: For the senior citizen. 9. Sukanya Samriddhi Scheme for baby girls upto 14 years: very useful early bird investment option; which can be utilised for higher, education, Stree dhan. :saying "beleyuva siri molakeyalli" 10. Real Estate: which you use or which you get benefits from.
Investment should be thought even beyond Section 80C needs. Blindly parking money in insurance policies; mortality charges deteriorates savings. Term Insurance would do the trick for your insurance and this can be contributed even from passive income. One tip I suggest while investing Rule of 72. Divide 72 by the interest rate and you arrive at the period of time it takes to double. Never fall for the lure of high interst as it may be fraudulent one.. Albert Einstein, once said "compounding is the eighth wonder of the world". It is akin to "Hani hani goodidare halla, old Kannada proverb," which should not be ignored while investing.
