Woman’s Guide to Financial Freedom

It’s a universal truth that women lack confidence when it comes to investing in the market.
Although women are independent, earn good money and have access to all kinds of online services and information that their earlier generations never had, yet they stick stubbornly to cash savings in an era of rock-bottom interest rates.
Instead of taking charge of their financial future, women either leave financial matters to the men in their lives or ignore the importance of planning for it altogether. When asked about it, Monica, 33, a marketing professional said, “I find investment tricky plus saving up a percent of my salary is sometimes a task. What’s the easiest way?”. Whereas Seema, 29, advertising professional said, “I want to understand the market, but I get bogged down in all the jargon and end up completely confused”. What we found out through this survey was that for these women, the certainty of outcome far outweighs any desire for profit. But not that they don’t want to take any interest when it comes to building wealth through investment but all they need is a proper guidance. So, if you find yourself falling to this circle, read on.


Learn well and be prepared

Learning isn’t all that difficult, especially for a woman. Plus saving money comes naturally to us. So why not understand where to invest to further grow your wealth. Get hold of any newspaper, a book, online reading material, even Wikipedia (for the financial terms) and read them over and over again. Do this regularly for at least a month or two. In time, you will develop an understanding of what is going on in the financial world. You will acquire fair idea of what is going on in the world of economics and financial markets. You can also turn to friends and family members who invest and can enlighten you with their share of knowledge. The key is to take baby steps but just don’t stop.


Take control of investment – like every other task

Stop making excuses like you don’t have money or understanding or time for financial affairs. Don’t let your household duties, child’s responsibility or work for that matter come in between your financial planning. Housewives always have the excuse that they don’t earn salary and have no money to save. But what if your husband wants to buy you a new luxury car? Have you thought of asking for a more modest car and having the extra money placed in a savings account in your name?

And when it comes to an annual holiday, you can always pick a humble destination. There are numerous ways of cutting back and investing that money. Saving even just thousand rupees a month over 30 years, yielding an annual return of 10%, will provide you with more than twenty lakhs. For working women, it’s easier. Simply start budgeting and allocate your allowance or salary more sensibly. Every penny you save can change your future. The key is take control of your earnings.


Women can’t be better investors than men – Just drop the notion

Women think they are not good investors and don’t want to make mistakes with the money they have. This impression they have of themselves is wrong. It’s just that men are perceived to be better investors because they are more aggressive than women and are prepared to invest in shares – the asset class that outperforms all others over time. The reason women can do better when compared with groups of men is that they tend to do more research than men and don’t act as aggressively. Women look at a lot more factors before making a selection (The hot deals we pick while shopping). So if women can be better shoppers, they can even excel when it comes to bargaining to shares.  


Take investment as a journey

Are you prepared for retirement? Your retirement can be 30 years or longer and you may seem you have enough time to plan for it. But start today! Learn about the different investment options and retirement plans that are available for you. You don’t have to be a financial genius to get started. Just have a clear picture as to what you want your retirement to look like. That picture will help you to stay on the road and propel you towards your dream.

To sum up, the first thing to do is recognise that you generally possess all the skills of building your wealth. The aversion to the risk of loss can be tempered by increasing your knowledge and finding a good adviser. Start reading the financial papers or articles today – invest 10 minutes a day in your future. And most importantly, remember that the money you need for your retirement may be available if you simply do a detailed budget and invest accordingly.

Stay updated with the latest trends on finance with us or for more details write to contact@sbsfin.com.


ELSS – Options for the Tax Payers in 2017-2018

Viren, a store manager with a leading MBO got hassled after looking at the Investment Declaration form, his HR asked him to submit. Instantly got in touch with a mutual fund distributor and asked for forms to invest an amount of INR 50,000, downloaded the form, filled, signed & shipped. The missing link here, was he failed to ask or mention – that he is looking for some tax saving schemes. Since most of the investors look at mutual funds as one of the leading money market instrument for wealth creation, Viren just followed the norm. Back in mind, he was also assuming that the investment would work as tax saving investment in the declaration form.

On realizing, the purpose is still impending, he decided to speak to us on tax advice and how we thought that the mutual fund he chose to invest in must be an ELSS. Let us learn more about ELSS here:

What is ELSS?

ELSS stands for Equity Linked Savings Scheme. ELSS comprise a unique class of mutual funds that provide investors with tax benefits under Section 80C. Like other mutual funds, ELSS as financial products are also offered by fund houses and are handled by experienced fund managers. Therefore, when you invest in an ELSS scheme, you get to invest in a professionally managed tax saving investment option.

Why people Opt for ELSS Mutual Funds:

  •  Shorter Lock-in period
  • Tax Exemptions
  • Options of SIP
  • Optional Dividend & Growth option
  • Transparent & Trackable
  • Ease of Transaction


Comparison of select tax savings instruments across key criteria:

Financial advisor in delhi

Popular ELSS Funds for Tax Saving and Wealth Creation:


Axis Long Term Equity Fund

Launched in December 2009, this fund has grown rapidly and have the largest AUM. Axis Long Term Equity is a large cap oriented fund with almost 70% in large cap space.


Returns: 22% (CAGR) and 20% (CAGR) over the last 3 years and 5-year period.


Franklin India Tax Shield

Launched in April 1999, Franklin Tax shield is being generating a return of 24% over the last 17 years. This fund is accelerating and has beaten its own benchmark in 12 out of last 15 years and has generated over 20% (CAGR) and 17% (CAGR) in the last 3 and 5 years.  However, with almost 80% invested in giant companies, the risk of losses from possible market corrections is also high.

DSP BlackRock Tax Saver

Launched in January 2007, this is a large cap fund with 68% invested in the large cap companies. The fund focuses on companies with strong growth potential and higher valuations. The fund has delivered 22% (CAGR) and 19% (CAGR) over the last 3 and 5 years respectively.


ICICI Pru Long Term Equity

Launched in August 1999, the fund rests on a value investment style. This fund raised the bar and outperformed its benchmark for 13 among the last 15 years. The return rates have been 18%(CAGR) and 17% during the last 3 and 5 years.


Highly invested on the mid-cap and small cap companies, the ICICI Pru Long Term focus on attractive valuations and thereby reduced risk from market corrections.


Birla Sun Life Tax Relief

Launched in 1996, this fund is best for long term wealth management & generation. The fund invests through multi-cap approach and assures wealth creation by investing 80-100% in equities and sometimes in debt and other money market instruments. This tax saver fund has generated over 21% and 18% (CAGR) over the last 3 and 5 years’ period.


Reliance Tax Saver Fund

Launched in September 2005, Reliance Tax Saver focuses primarily on the mid-cap and small cap companies with 55% portfolio invested in such stocks. However, over the last 3 and 5 years, the fund has outperformed the average return by 5-10 percentage points.

The fund has generated returns of 26% and 21% (CAGR) over the last 3 and 5 years.

Well like all other mutual fund investments, the past performances of ELSS cannot be seen as a guarantee for their future performance but they are useful in giving us a direction for our Tax Planning Investments.

Please compare and match the funds performance with your financial plan & goals before you decide to invest in any of the ELSS funds.


For more details write to contact@sbsfin.com

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