Balancing the Scales with Smart Mutual Fund Solutions for Women
- Mutual funds offer an ideal way to create a balanced, diversified portfolio and take control of your financial future.
It was a hot Friday morning. Priya, a successful startup entrepreneur, was sitting in her office tapping into her phone. Her business had been thriving. But when it came to her personal finances, she felt she lacked depth. “I know I must invest. But I don’t even know where to start,” she thought. She felt overwhelmed by the complicated world of stocks, mutual funds, and asset allocation.
Priya’s story is not unique. While women excel in their careers, many still feel left out of finance and investing. Sometimes, it’s because of a lack of knowledge. Other times, the complexity of financial markets or the fear of making mistakes hold them back. But things are changing. This is where Mirae Asset Mutual Fund steps in. They help women cut through the confusion, learn the basics, and build financial confidence.
The recently concluded Investor Awareness Programme conducted by Mirae Asset Mutual Fund in association with Mint sparked an important conversation about financial literacy and independence.
Balancing the Scales: Practical Tips on Smart Investing
Makhdoom Ansari, National Head of Retail Sales & NDs at Mirae Asset Mutual Fund, kicked off the event with an insightful session. His talk, “Balancing the Scales,” focused on asset allocation. He explained how diversifying across equities, debt, and other asset classes can manage risk and maximise returns.
He shared a personal story: “In my initial days, I bought my first vehicle with the savings of my mother. It’s the women of our families whose savings save us in difficult times.”
Makhdoom stressed that investing isn’t about chasing high returns. It’s about finding balance. He connected this idea to everyday life—work-life balance, health, savings, and expenses. “Life is all about maintaining the perfect balance,” he said.
“But in order to find the right balance, we must understand the risk.” He quoted Carl Richards: “Risk is what’s left when you think you’ve thought of everything.”
Investments, like life, are unpredictable. Changes in government, market shifts, or rising interest rates create uncertainty and account for risk. The goal, he explained, is to match your risk tolerance with your expected returns. Finding the golden mean, where risk appetite aligns with expected returns, is key. He explained this through various types of mutual funds:
Debt mutual funds lend your money to governments or companies and earn returns from interest. The risk depends on the duration and who you're lending to. These are great for short-term goals (1 to 3 years) and can offer better post-tax returns than fixed deposits after 3 years. Liquid debt funds are perfect for emergency savings, giving higher returns than a regular savings account with low risk.
Equity mutual funds invest in the stock market, with experts selecting a mix of stocks to balance risk and return. They offer a diverse portfolio, reducing risk. These funds are ideal for long-term goals (5+ years) and require patience due to short-term fluctuations.
Hybrid mutual funds mix equity, debt, and sometimes gold or real estate. They automatically adjust allocations based on market changes, helping spread risk and offering steady growth with moderate risk.
When Emotions Drive Investments
The second session, led by Swati Kumari, former prime-time anchor with CNBC Awaaz and Zee Business, felt like a heart-to-heart about Behavioral Finance: How Emotions Affect Your Asset Allocation. Known for her practical advice on the B Wealthy YouTube channel, Swati had the audience nodding along as she broke down how emotions like fear, greed, and overconfidence often drive our financial decisions.
Take this, for instance: Have you ever hesitated to sell a poorly performing investment, convinced it’ll bounce back? Or make an impulsive decision based on market buzz? Swati explained that these emotional triggers can cost us opportunities or, worse—our financial stability.
She also called out a challenge unique to women: self-doubt and societal pressures. “Many women hesitate to ask questions about investing, worrying they’ll sound uninformed,” she said. Her advice? “Shed the fear. Learn the basics of equity, debt, and other asset classes. It’s your money—take charge!”
Why It’s Important to Stay Rational
Swati shared some real-life examples to illustrate how emotions influence investments.
One of her friends, a real estate professional, bought a second property in Hyderabad as an investment. Years later, with no appreciation, she still holds onto it, convinced the market will turn. Swati stressed the importance of accepting losses and moving on when something isn’t working.
Another friend invested heavily in gold jewellery, drawn by the comfort of something tangible. While it feels secure, Swati pointed out the risks of putting all your eggs in one basket.
“Diversify wisely,” Swati emphasised. And when in doubt, mutual funds are a fantastic starting point. They’re professionally managed, spread risk across multiple investments, and offer options for every financial goal—stability, growth, or income.
Key Takeaways: Building Financial Confidence
- Disciplined exits: Don’t react to every market fluctuation. Review your goals, evaluate performance, and reallocate when necessary.
- Balanced retirement planning: Even post-retirement, mix stability with growth. Debt funds provide consistent returns, hybrid funds offer moderate growth, and systematic withdrawal plans (SWP) ensure a steady income stream.
Swati wrapped up with a reassuring note: “Investing isn’t about getting rich overnight. It’s about creating a portfolio that balances logic with your goals, helping you stay on course no matter what emotions or the market throws your way.”
With tools like mutual funds, you can take the emotion out of investing while building a future you’ll feel confident about. After all, isn’t that what financial independence is all about?
Mutual Funds: A Smart Way to Invest and Build Wealth
The event wrapped up on a high note, with Makhdoom and Swati Kumari emphasising that investing isn’t about how much you have but the courage to start. With platforms like Mirae Asset, women can confidently take that first step.
“Balancing the scales,” as they put it, means choosing the right mix of investments. With their stability, growth potential, and expert management, mutual funds are a great way to achieve this balance. Makhdoom highlighted that mutual funds are perfect for women looking to diversify and build wealth safely.
The Bottom Line: When #SheInvests, the World Reaps the Benefits
The message is clear: when women invest, the world benefits. Mutual funds offer an ideal way to create a balanced, diversified portfolio and take control of your financial future. Let’s balance the scales and embrace financial independence.
Note to the Reader: This article has been produced on behalf of the brand by HT Brand Studio and does not have journalistic/editorial involvement of Mint.
Mutual Fund investments are subject to market risks. Read all scheme-related documents carefully.
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Business NewsFocusBalancing the Scales with Smart Mutual Fund Solutions for Women
First Published:11 Dec 2024, 02:37 PM IST
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