Axis Knowledge Nuggets - 6

With our?#KnowledgeNuggets, it is our aim to bring you content that’ll help you make informed decisions for your wealth creation journey. Read on to know more

How working women can secure their financial future through SIP?

Women have established themselves over the years as dominant individuals who are no less in giving men a tough competition irrespective of the field. But when it comes to investing, they are a bit sceptical about putting their hard earned money in an investment scheme. In fact, women are naturally inclined towards money management and saving. But for some reason, they just do not want to take any risk with their finances. However, what they do not realize is that the capital that they are saving now, may not be capable enough in future to give the financial stability they deserve. When you own capital, there is always some risk associated with it. Also, inflation may eat up all your savings as the prices of fuel, basic necessities, house rent, etc. are constantly on the rise.

With old age comes medical expenses and if you do not have a decent health plan, medical expenses can also burn a hole in your pocket. Instead of depending on anyone or hoping that someone will lend you a helping hand in future, why not build a corpus that may be able to give you financial stability and sustainability?

In order to build a decent corpus for future financial stability, women need to start investing. The early you start the better it is. Because if you are looking forward to accumulating wealth through investing, you need to have a?long term investment?horizon. This way, if you start early you will have more years in hand before you retire and hence, and in the long run your savings might grow into a commendable corpus.

Mutual funds have been gaining traction in India over the past few years. Several investors are giving mutual fund investments a try to fulfil their short term and long term investment goals. Mutual funds are supposed to give investors an opportunity to invest in multiple markets through one single investment. This is why it is believed that mutual funds may also offer some diversification to an individual's investment portfolio.

What are mutual funds?

Working women who carry some risk appetite and are willing to invest in market linked schemes with the hope of earning some capital appreciation in future may take a look at mutual funds. What AMCs and fund houses do is that they collect money from investors sharing a common investment objective, and invest this pool of funds across the Indian and foreign economy. A mutual fund scheme invests in money market instruments depending on its risk profile and investment objective. The money is spread across multiple asset classes like equity, debt, government securities, corporate bonds, certificate of deposits, etc. The performance of a mutual fund scheme may depend on the performance of these underlying asset classes in which it invests.

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For more nuggets around mutual funds, do visit Axis?MoneyPlex

Statutory Details:?Axis Mutual Fund has been established as a Trust under the Indian Trust Act 1882, sponsored by Axis Bank Ltd. (liability restricted to ?1 Lakh).?Trustee:?Axis Mutual Fund Trustee Ltd.?Investment Manager:?Axis Asset Management Co. Ltd. (the AMC)?Risk Factors:?Axis Bank Ltd. Is not liable or responsible for any loss or shortfall resulting from the operation of the scheme.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.