Mother’s Day 2024: Public Provident Fund (PPF) among six investment options for single mothers

Single mothers face unique financial challenges, needing to manage childcare and finances alone. Experts say they can consider investment options like PPF, mutual funds, government banking schemes, NCDs, REITs, and bank deposits to secure their future

Sangeeta Ojha
Updated12 May 2024, 05:57 AM IST
Mother's Day 2024: Here are some of the investment options that single mothers may consider investing in:
Mother’s Day 2024: Here are some of the investment options that single mothers may consider investing in:

Mother's Day 2024: Whether employed or not, single mothers encounter distinctive financial hurdles when supporting their families. Juggling childcare and financial responsibilities isn't easy for them. With no secondary income and the sole responsibility for household finances, they must seek alternative investment opportunities to ensure stability and growth. Single mothers must manage their finances effectively to secure their future and provide for their children. On this Mother's Day 2024, let's explore some tailored investment options for single mothers.

Here are some of the investment options that single mothers may consider investing in:

1)Public Provident Fund (PPF)

Investing in PPF is an excellent option for single mothers. “The lock-in period of 15 years helps them achieve their long-term financial goals, such as raising funds for children's higher education and purchasing the dream house,” said Archit Gupta, Founder and CEO, of ClearTax

2)Mutual Funds

Investing in mutual funds is an excellent option for single mothers and everyone else. There are different types of mutual funds, so investors should pick the one that fits their financial goals, risk tolerance, and investment timeline.

According to Archit Gupta, consider equity funds, especially large-cap or blue-chip funds, if you aim for long-term investment growth. For medium-term goals, hybrid funds are a good choice. To meet short-term financial goals, consider arbitrage and liquid funds. Investing in mutual funds through a monthly systematic investment plan (SIP) can help you build financial discipline.

3) Government Banking Schemes

Government banking schemes cater specifically to retired individuals, offering attractive interest rates on investments. “Single mothers over 60 can benefit significantly from schemes like the Pradhan Mantri Vaya Vandana Yojana. The PMVVY offers an interest rate of 7.4%, deposited monthly into the policyholder's account. This provides a reliable source of income, especially when compared to conventional FDs. Additionally, while there's a maximum investment limit of INR 15 lakh under this scheme, the returns can be significantly higher,” aid Bhuvan Rustagi, Co-founder & COO, Per Annum.

4)Non-Convertible Debentures (NCDs)

“NCDs offer single mothers the potential for higher returns, typically between 10% to 15%, depending on their risk appetite. These investments balance risk and reward, with the added security of priority repayment in case of default,” stated Bhuvan Rustagi.

5)Real Estate Investment Trusts (REITs)

REITs offer an attractive option for single mothers interested in real estate investment without the hassle of property management. Rustagi suggested that single mothers can benefit from rental income and capital appreciation by investing in commercial properties through fractional ownership and diversifying their investment portfolio.

6)Bank deposits and government saving schemes

Risk-averse single mothers may consider investing in bank deposits and government saving schemes. “If you have a lump sum, you may invest it in a bank fixed deposit or post office time deposit. If you are to invest a small sum regularly, recurring deposits (RDs), National Savings Certificates and Post Office Monthly Income Scheme (POMIS) are great options. If you are a mother to a girl child, you may invest in Sukanya Samriddhi Yojana (SSY),” suggested Archit Gupta.

Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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First Published:12 May 2024, 05:57 AM IST
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