6 Smart Investment Tips For Housewives: Money Matters

6 Easy Investment Tips For Housewives

1. Start With A Savings Account Or Recurring Deposit

A savings account is often the first step to managing your money efficiently. Many banks offer high-interest savings accounts that allow your money to grow while keeping it liquid. If you’re new to investing, you can also consider a recurring deposit (RD). “An RD is a risk-free term deposit in which you invest a fixed amount monthly for a predetermined period, usually 6 months to 10 years, to build a corpus”, as per Axis Bank.

2. Mutual Funds

Mutual funds are an excellent option for housewives who want to invest without deep knowledge of the stock market. Through mutual funds, you pool your money with other investors, and a professional fund manager invests it across a diversified portfolio of stocks, bonds, or other assets. Systematic Investment Plans (SIPs) are particularly popular because they allow you to invest small amounts monthly.

3. Public Provident Fund (PPF)

If you're looking for a safe and long-term investment option, the Public Provident Fund (PPF) is perfect. PPF offers a fixed rate of interest and tax benefits. The lock-in period of 15 years ensures you develop the habit of saving for the long term, and the returns are entirely tax-free. It's ideal for housewives who want a risk-free way to build a retirement corpus. “The interest earned and the returns are not taxable under Income Tax. One has to open a PPF account under this scheme and the amount deposited during a year will be claimed under section 80C deductions”, according to ClearTax.

4. Gold Investment

Gold has always been a popular investment for Indian housewives. In addition to buying physical gold like jewellery, you can now invest in more modern and secure ways, such as Sovereign Gold Bonds (SGBs) or Gold Exchange-Traded Funds (ETFs). These options allow you to invest in gold without worrying about storage or making charges. Moreover, SGBs offer an additional interest income on top of the appreciation in gold prices.

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5. Life Insurance

Life insurance is one of the most traditional and reliable investment options for women. It offers financial security to the policyholder’s loved ones in the event of their death by providing a lump sum payout, known as the death benefit, to the beneficiaries. This payment is made in return for the premiums the policyholder pays over time. For women, especially those with dependents, life insurance is a crucial tool to ensure their family’s financial stability and protection for the future.

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6. National Pension Scheme (NPS)

Secure your future after retirement by considering investing in the National Pension Scheme (NPS). It’s a government-backed retirement savings plan that offers tax benefits and allows you to contribute systematically towards a pension fund. You can choose from different asset classes such as equities, corporate bonds, and government securities, making it a balanced investment.

Note: If you are a beginner, it’s essential to educate yourself about various financial instruments. Consult a financial advisor before making any investment-related decisions.

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