The war situation in the Middle East is worrying investors everywhere. The stress is felt across all classes and categories of investors. The surge in volatility across financial and commodity markets will spare nobody. Your ability to ride the storm requires you to stay aware of the situation, even if you are lucky enough to be a distant observer.
It is also that time of year when businesses tend to remember they need to target half the country's population. International Women's Day messages on social media will remind you that women in your life matter. In India, women deserve all the celebration. The predominant patriarchal society in the country ensures that women's participation in the formal workforce remains abysmally low in comparison to other large economies. It is a no-brainer that a small jump in the number of women in the workplace would boost the nation's growth. There is a need for the entire government machinery to focus on the well-being of this half of the population.
Having said that, the data on women seeking greater control over their finances is significant. The latest monthly data from the National Stock Exchange shows a clear increase in women's participation in the stock market. About 25% of the total 12.7 crore investors are women. A further deep dive is given by a survey conducted by the mutual fund house DSP Mutual Fund. They asked over 5,000 people across 13 cities in India about how they invest, and found that about 56% of women take independent decisions. That is up from 44% three years ago.
The survey also highlights many other qualitative aspects of how women invest. Although 84% feel confident about investing on their own, only a third have a plan or goal. The survey also finds that more women associate money with freedom. About 41% of them are prioritising travel over buying a home, as holiday spending rises.
Professional help
Your marital status or age does not matter. You need a professional advisor to work with you at all times. If you are single and consider money as freedom, there is all the more reason for you to pay yourself first before spending. Making an appropriate asset allocation towards long-term and short-term goals will help you manage your money well. You must get help from a certified financial advisor who can support your financial goals dispassionately. Freedom is also an emotion. Investing requires you to keep your emotions in check and allocate your hard-earned savings appropriately. It is not a race. Financial planning can help you achieve your financial goals without pinching yourself every day. All your spending now and later can be planned.
If you are married, you can complement your spouse in pursuing mutual goals. However, your investment strategy must be based on your ability to withstand risk. If you are willing to take more risks but your spouse is not, it is a good idea to discuss that upfront before determining asset allocation. On a simple piece of paper, you can make your lists. Carve out mutual goals, such as a child's education, and discuss your ability to invest upfront. If both of you work, you may want to determine allocation towards retirement planning independently.
It's no different
Investing for women need not be different from that of men. It is not a battle of the sexes. You will analyse the same companies, bond markets or commodities. Your ability to take risks will determine the way you invest across asset classes. That is the same for men. Your future income determines your ability to take those risks. The key here is the confidence you have in your abilities to sustain that income.