Simplifying Personal Finance for Women.

“There is Nothing More Beautiful than a Confident Women”

Boost Your Confidence by Asking Empowering Questions.

Some frequently asked Personal Finance questions have been summarized which I am sure every women can relate to her Life at some point.
women-questions

Ques: Why is it so important for today’s women to invest in future?

Ans: There are some special challenges and hassles that women need to face in their life, and especially when it is about securing their finances. Today’s women need to invest in Future and be financially equipped on their own for many reasons. One is there is change in working patterns of women, they often need to take break for Marriage, Pregnancy and Children. Second is “longer life expectancy”, Statistics show that, on an average, women live 5 years longer than men. Last but not the least increase in Divorces and relationship breakdowns. Believe or not this is the hardest truth that anyone may face.Moreover, this not only affects her emotionally, but even has an adverse effect on her finances.

 Ques:What are the best investment options available in the market for women?

Ans: Nearly 100 per cent of women are Confident about managing their day to day household finances and they are smart savers also.The best investment option for a women can be Systematic investment plan(SIPs)and gold. Well, SIPs help to invest even very small amounts every month in mutual funds. It gives exposure to equity markets by investing in a disciplined and easy way. Gold has its own benefits like ease of purchase/sale and Long term prospects. The next best option is buying a life insurance for Returns and Risk cover. For single mothers, it becomes necessary as it is income replacement for the kids in case of any mishappening.

Ques:What are the criterions for evaluating an investment option?

Ans: The criterions will significantly vary from investor to investor. Before investment one needs to consider Age, expected time horizon, capacity and willingness to take risk and the Returns expected. One should understand the Risk Reward ratio. Higher returns come with higher risk but high risk does not necessarily mean higher return. If one is young and working then her risk taking capacity is higher than the one who is nearing retirement.

Ques: What factors should be kept in mind before investing in a policy?

Ans:A proper due diligence has to be done from one’s own end even if the middlemen/ advisor explains all the features of policy in detail. One should understand all pros and cons before entering into a contract.The parameter for zeroing on a policy should be benefits vis a vis premium to be paid. The policy should be specific to one’s need as One size does not Fit all.

Ques:What do you think about gold investment? How can it benefit women?

Ans: Gold as an investment is a Golden option for Women. Apart from ease of purchase/sale and long term prospects, Gold is a Protection against economic downturn. Gold also holds emotional value and can be converted into ornaments at the time of children’s weddings.  We all know that Gold is a good diversification tool. It is hedging Tool against Inflation. It can benefit women have their peace of mind that they are owner of their own asset.

Ques:What are the different forms of gold that one can invest in?

Ans: One can buy gold in physical form- Gold bars or coins, electronic form in way of Gold ETFs(Exchange Trading Funds) and also Gold can be bought in the form of Mutual Funds.

If you have any specific question which is not covered, feel free to ask.

Gurleen Kaur is a Financial Consultant and devotes her time to her company www.hareepatti.com. She has done her Bachelors in Finance and Investment Analysis(BFIA) from College of Business Studies(CBS, Delhi) and MBA from IMT, Ghaziabad. She will be a Certified Financial Planner by June 2014. She can be Contacted at gurleen@hareepatti.com

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