Best Investment Options for Women

With the changing times, as women are blooming and trying to create a significant mark on society, multiple investment options are coming up for them so that they also gain high returns on their income just like men.

Here are some best investment options for women in India that provide long-term capital gains and lead them to the road of wealth creation.

Best Investment Options for Ladies

These are some of the ideal investment options for the ladies:

1. Mutual Funds Through Systematic Investment Plans

   Investments in mutual funds can be made either in the lump sum method or through the Systematic Investment Plan method. Most of the time, women investors opt for the SIP (Systematic Investment Plan) method of investment in mutual funds because of the following reasons:

   • Monthly investments, sometimes as low as Rs. 500 can be deposited in their desired mutual fund

   • Unlike the one time lump sum investment option, an investor can go for regular monthly or quarterly deposits for a defined tenure for great returns in the future.

   • The SIP method helps in diversifying the portfolio of the investor as one can opt for more SIPs in numbers as compared to the lump sum method.

   • From low to medium risk-taking appetite, investment in mutual funds is for every type of women investor.

2. Public Provident Fund

   One of the safest and most reliable Government backed savings plus investment schemes, the Public Provident Fund can be considered as an ideal investment option for women who do not want to risk their hard-earned money and want decent returns on their investments after a considerate tenure. Some of the top features that will lure a women investor to invest in PPF (Public Provident Fund) are:

   • Mostly all the banks and financial institutions offer a PPF account to all

   • Public Provident Fund is an investment as well as a savings plan completely backed by the Government

   • PPF is a risk-free investment type that offers decent fixed returns to all the classes

   • Currently, as of the financial year 2022-2023, the rate of interest offered under a PPF investment is 7.1% annually

   • PPF comes with a 15-year lock-in period that can be further extended to 5 years at the end of the tenure

   • The annual minimum deposits to be made in a PPF account is Rs. 500

   • The annual maximum deposits to be made in a PPF account is Rs. 1,50,000

   • PPF offers tax benefits under Section 80C of the Income Tax Act, 1961

   • PPF is considered one of the safest investment options for women that offer decent returns

3. Fixed Deposits

   Another safe investment option for women, Fixed Deposits are also available in mostly all the banks and financial institutions like PPFs (Public Provident Funds). With high interest rates varying from one bank to another to minimal risk involved, Fixed Deposits can be considered as your next investment option for decent guaranteed returns in the future. Some of the basic details related to Fixed Deposits are as follows:

   Features	Details
   Rate of Interest	1.85% to 6.95% per annum (varies from bank to bank)
   Deposit Amount (Minimum)	Rs.1,000 (varies from bank to bank completely)
   Investment Tenure	7 days to 10 years
   Interest Compound Frequency	Annually, Quarterly, or Monthly (varies from one bank to another)
   Partial Withdrawals	Available with a penalty (depending on banks)
   Premature Closure	Available with a penalty (depending on banks)

4. Gold

   One of the oldest and guaranteed return options famous amongst the women of India is the investment in gold. Looking at the history and growth of gold in the past 50 years or so, no one can deny that buying gold in any form has not been a beneficial type of investment for them. Even at the time of inflation when the market falls and prices of the commodities go down, gold has always seen a remarkable spike making it the investment of the century every time.

5. National Pension Scheme

   Launched by the Government of India and administered by the Pension Fund Regulatory and Development Authority (PFRDA), National Pension Scheme can be considered as one of the best government-backed savings schemes for ladies. All the women investors willing to have a decent financial corpus after their retirement and who do not will to take major financial risks in life should blindly opt for the National Pension Scheme option.

   With 2 types of NPS accounts to choose from, that is, Tier-I and Tier-II, NPS is considered a viable savings scheme for the ladies. Here are the features and other related details of both the types of NPS accounts:

   National Pension Scheme
   	Tier I Account Type	Tier II Account Type
   Eligibility	Any Indian citizen Minimum- 18 years Maximum - 65 years of age	Existing members of Tier-I account only
   Lock-in Period	Till 60 years of age	NIL
   Number of yearly deposits	1 is the minimum	Yearly deposits are not mandatory
   Minimum balance to open account	Rs 500	Rs 1,000
   Minimum contribution	Rs 500	Rs 250
   Minimum yearly deposit (amount)	Rs. 6000	NIL
   Fund management charges	Same as Tier-II	Same as Tier-I
   Tax benefits	Section 80CCD (1) tax exemption of Rs. 1.5 lakhs	No tax benefit
   	Up to Rs.50,000 as deductions are allowed under Section 80CCD 1(B)

In The End!

Before making any kind of investment and putting your hard-earned money at risk, it is highly advisable to have thorough market research and go for the option of investment that best suits your own appetite.

There are many other suitable investment options for women in India available as well that involve low to high risk and each woman should be their own leader and make decisions that they think will help them grow in the future, both financially and mentally.