Direct equity, mutual funds, commodities and Exchange Traded Funds (ETFs)... what should you invest in next?

Have a high risk appetite Here are some investment tools to consider

It is a common misconception that homemakers have a conservative investment personality. Many homemakers are more than willing to try out high-risk high reward options. If you are one of them, here are some that could be a part of your portfolio.

1. Direct Equity

Equity investments represent a share ownership in a business listed on the stock exchange. There are thousands of businesses listed on Indian bourses across market capitalisation. The valuation on stocks changes on a daily basis on account of various internal and external factors.

  • Returns: Sensex delivered an average of 18% over the last 10 years from 2011-2021
  • Minimum investment: No minimum threshold
  • Risk category: Very high risk
  • Ideal investment horizon: 10+ years
  • Tax benefits: Long-term capital gains up to Rs 1 lakh in a year are exempt from tax
  • Did you know: Women constitute about 20% of active equity investors

Related: Are you a homemaker who invests in the stock market? See how your gains will be taxed

2. Mutual Funds

Mutual funds are a collective investment vehicle managed by professionals. They pool money from different investors and invest it on their behalf in stocks, bonds, etc. to create a portfolio based on the investment mandate. The equity segment itself can have different types of funds that cater to different investment needs. 

  • Returns: Mutual funds returns vary from one fund to another
  • Minimum investment: Rs 500 for most funds
  • Risk category: High-risk
  • Ideal investment horizon: 3-7 years or more
  • Tax benefits: Long-term capital gains up to Rs 1 lakh in a year are exempt from tax. ELSS funds award an exemption up to Rs 1.5 lakh under Section 80C
  • Did you know: The possibility to invest via pocket-friendly SIPs make mutual funds the first choice for homemakers looking to bring in equity exposure on their portfolio

3. Commodities

You can trade on the future price movement of various commodities on a leveraged basis. Such investments are recommended for savvy investors and those who can trade actively. 

Homemakers can invest in host of commodities, ranging from precious metals such as gold and silver, energy commodities such as crude and natural gas, industrial metals such as copper and nickel, to agricultural produce such as rubber, soya, mustard oil, and more.


  • Returns: Highly speculative – very high gains or very high losses
  • Minimum investment: Margin money is usually 5%-10% of the contract value and varies from one commodity to another
  • Risk category: Ultra high risk
  • Ideal investment horizon: Contracts are usually short (1, 3. 6 months)
  • Tax benefits: No tax benefits

4. Exchange Traded Funds (ETF)

ETFs function similar to mutual funds, but can have a wider basket of securities and invest in funds of funds. ETFs are spread across diverse categories ranging from equity and debt to gold, currency, real estate, etc. 

  • Returns: Speculative, depending on asset class
  • Minimum investment: Single unit of investment at investment or market value
  • Risk category: High risk
  • Ideal investment horizon: 1 to 3 years or more depending on asset
  • Tax benefits: Lower capital gains tax and indexation benefits on certain assets

Related: What will be the annual salary of homemakers if they were to be paid?

How the investments stack up 

How the investments stack up