Why should women invest in ETFs?

Date : 15/03/2022
Read: 3 mins

Learn why women should invest in ETFs in this step-by-step actionable guide. ETFs have been given a major role as compared to other investment vehicles. Answer to this and more in this guide.

Saving for the future is a difficult chore for most people. Some people struggle, some give up midway, while others fail to take it seriously enough. In case of women’s the scenarios shifts to a different tangent since they possess the virtue of patience - a valuable asset in crisis. On the other hand,. ETFs offer simplicity, accessibility, diversity, variety, affordability, and flexibility; making a great vehicle for women.

Money, at its most basic level, a sign of independence. Previously women used to be completely reliant on their parents or husbands, but now they can make their own choices.

Take a look at the following reasons why women should invest in ETFs:

Flexibility: One of the most crucial benefits ETFs bring to investors is liquidity. At any time, the tokens can be redeemed. ETFs, unlike fixed deposits, allow for flexible withdrawals; however, the cost of exit must be factored in.
Building wealth over time: ETFs can be bought using Systematic Investment Plans (SIP), which can accumulate wealth over time. It provides investors with a simple solution for reaching their investment goals.
Handle sluggish market conditions: The value of an investment may not rise or fall at the same rate. When one’s investment's value rises, the value of another may fall. In this situation, the portfolio's performance will be more consistent. Diversification can assist reduce the risk of putting together a portfolio.
Returns that beat inflation: Savings, in most cases, decrease their worth over time. However, investing in ETFs helps you escape the soaring inflation in the long run. The expected return on an ETF is the return on the underlying. For example, if we have an ETF on the healthcare index, the return will mimic the return on the healthcare index.
Allows you to start small: You don't have to worry about investing large sums of money when you invest through a SIP. With as little as INR 300, you can get started.
Online accessibility: It's nice to see ETFs offer simple and smooth online payment methods like Net Banking, UPI, and other platforms that help automate your SIP payments, making them faster, safer, and more convenient.
Managing experts: Experts manage and operate ETFs since a novice investor may not have adequate expertise about how and where to invest. Experts combine money from various investors and distribute it among numerous equities and bonds, allowing investors to profit.
Low expense ratio: The expense ratio on an ETF is lower than the actively managed funds. Thus, your expected returns will increase. Most ETFs in India have an expense ratio of less than 1%.

Also Read: How To Invest In Gold EFTs

Conclusion

ETFs provide peace of mind while participating in the growth of the underlying. If you have difficulty tracking the markets, then you should consider investing in ETFs. Also for women, investing requires a lot of time which is very difficult, especially for working women with kids. ETFs offer Good returns with a low expense ratio. Also, it is very easy to buy ETFs and it is a liquid investment as well.

Money, at its most basic level, a sign of independence. Previously women used to be completely reliant on their parents or husbands, but now they can make their own choices.

Take a look at the following reasons why women should invest in ETFs:

Flexibility: One of the most crucial benefits ETFs bring to investors is liquidity. At any time, the tokens can be redeemed. ETFs, unlike fixed deposits, allow for flexible withdrawals; however, the cost of exit must be factored in.
Building wealth over time: ETFs can be bought using Systematic Investment Plans (SIP), which can accumulate wealth over time. It provides investors with a simple solution for reaching their investment goals.
Handle sluggish market conditions: The value of an investment may not rise or fall at the same rate. When one’s investment's value rises, the value of another may fall. In this situation, the portfolio's performance will be more consistent. Diversification can assist reduce the risk of putting together a portfolio.
Returns that beat inflation: Savings, in most cases, decrease their worth over time. However, investing in ETFs helps you escape the soaring inflation in the long run. The expected return on an ETF is the return on the underlying. For example, if we have an ETF on the healthcare index, the return will mimic the return on the healthcare index.
Allows you to start small: You don't have to worry about investing large sums of money when you invest through a SIP. With as little as INR 300, you can get started.
Online accessibility: It's nice to see ETFs offer simple and smooth online payment methods like Net Banking, UPI, and other platforms that help automate your SIP payments, making them faster, safer, and more convenient.
Managing experts: Experts manage and operate ETFs since a novice investor may not have adequate expertise about how and where to invest. Experts combine money from various investors and distribute it among numerous equities and bonds, allowing investors to profit.
Low expense ratio: The expense ratio on an ETF is lower than the actively managed funds. Thus, your expected returns will increase. Most ETFs in India have an expense ratio of less than 1%.