How Housewives Can Build a Successful Investment Portfolio Without Complications

In India, it is ironic that many homemakers manage their household finances smartly but fail to invest their personal savings. In an interesting shift after demonetisation, many women now keep their money in savings accounts at banks. However, these accounts offer interest rates lower than inflation, causing the value of savings to diminish over time.

Instead, housewives can grow their money by investing wisely. However, many are hesitant and fear the complexity or risk of investing. On the bright side, they must realise that today, investing is much simpler and safer. Several modern tools and platforms make it easy to manage money without needing expert knowledge.

In this article, let’s learn how housewives can build a winning investment portfolio. Also, we will see how they can manage their savings with full control, just like they manage their household finances.

• Housewives can prefer debt mutual funds as they offer higher returns (8-11%) than bank FDs and savings accounts. Besides, they also carry a lower risk.
• Preference should be given to mutual fund schemes that are highly transparent, maintain high liquidity, and charge no penalties for early withdrawals.
• Modern digital platforms make investing in mutual funds easy without any complicated paperwork or forms.

Firstly, let’s understand what debt mutual funds are. They are a type of mutual fund where money is not invested in stocks (equity). Instead, it is put into loans by the government or large companies. These funds are much less risky compared to equity mutual funds since they focus on safer investments like government bonds or corporate debt.

When it comes to returns, they usually range between 8-11%, which is significantly higher than the 4% savings account interest offered by most banks. Mathematically, say you have Rs. 2.5 lakhs sitting in a bank. You could earn a minimum of Rs. 12,500 extra per year with a debt mutual fund [Rs. 2,50,000 x (8% - 4%)].

Next, it is worth mentioning that although debt mutual funds are still subject to some market risk, the risks are considerably lower compared to equity funds. This makes them a good option for housewives who want higher returns without too much exposure to the stock market. Therefore, while building a winning investment portfolio, housewives can consider debt mutual funds. 

Ideally, the investment portfolio of a homemaker should focus on the following:

• Low-risk
• High transparency
• More flexibility

Low-risk options like debt mutual funds (as explained above) are ideal because they provide better returns than savings accounts and fixed deposits (FDs) while keeping your money safe. Transparency is another key feature, as it allows you to see:

• How your money is being managed
• Where is your money invested

Finally, having no penalties for early withdrawals is also necessary as it ensures that your money is accessible whenever you need it. By choosing mutual funds that meet these criteria, homemakers can create a portfolio that is easy to manage and even provides financial security. 

A major reason why many people, especially housewives, avoid investing is the fear of locking their money into long-term investments with no easy access to it. This concern is valid, but with the right mutual funds and investment platforms, you can maintain control over your money.

Be aware that there are several mutual fund schemes, like liquid and overnight mutual funds, that offer “full liquidity”. With them, you can withdraw your money anytime without any penalties for early withdrawal. Additionally, mutual funds generally do not charge any “transaction fees”, so you can invest or withdraw without significant extra costs.

This combination of flexibility and ease of access makes mutual funds more appealing to housewives who want to invest but need the option of withdrawing money in case of emergencies.

Investing in mutual funds today is as simple as shopping online or booking movie tickets. You can invest your money with just a few clicks and withdraw it just as easily. The entire process is digital, and you can even track the growth of your investment anytime.

Thanks to technology, now you don’t need to deal with:

• Complicated paperwork
• Lengthy forms, or

Compare endless options to make informed decisions