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ULIP INSURANCE

What are the Best Investment Options for Working Women in their 30s?

Janhavi Shinde Janhavi Shinde 14 March 2019
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If you are in your 30s, there are quite a few interesting investment options that you can choose from. This article highlights some of the best investment plans that you can vouch on.

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To ensure that you grow your wealth at a steady pace, you need to start as early as possible in life and constantly monitor the same. Have a quick chat with any financial expert and they will all suggest to start building your portfolio as soon as you land on your first job in your 20s. But the 20s is also the time when you have a strong urge to spend on things you always wanted to.

Thus, investments are automatically pushed to your 30s. It is that time of your life when you start building your portfolio and assets. However, 30s are a bit tricky since you have a lot of milestones that keep constantly cropping up. For example, you could get married, move towards becoming a mother, etc. All these lead to a significant financial dependency on you.

What’s the solution?

What should you do then? Well, in such times your primary focus should remain on building a comfortable buffer. No doubt this holds good for both the genders. However, if you are a woman, you would want to create this buffer to avoid any uncertainty or financial security for yourself and your loved ones.

Which is the best investment plan?

Keeping your money in the savings account while is a good start, it will not do a great deal for you in the longer run. Beginner may barely make any money. Given the standard interest rates of the banks between 3.5% to 4% and the country’s average inflation rate ranging from 5% to 7%, you will fall behind if the same continues.

When you are looking for the best investment plan, the following options come into the picture. You can then decide which plan best suit your needs and requirements. And of course, start investing in it.

Here we list out certain investment options that would work best if you are a woman falling in your 30s:

Equity

For all your mid-term to long-term goals, investing through equity-based funds is a great option to start with. You can either take the more preferred systematic investment plan route or invest in lumpsum, the choice is yours. And then there is ELSS or equity linked savings scheme. These are diversified equity-based mutual funds.

The funds invest in the capital market with a minimum lock-in period of 3 years. They offer you tax deduction under Section 80C of the Income Tax Act, 1961 and considerable returns when you compare it with other investment options. So much so, that in the past five years, the average returns of the top 10 ELSS funds stand close to 20%. Even the introduction of a long-term capital tax hasn’t marred the mood of the investors.

Life Insurance

Life insurance products still stand among some of the most favorable investment options. And you would not favour yourself by not buying enough life insurance. The simple rationale is to secure your life against unforeseen risks that life can throw at you. Having sufficient coverage will ensure that you or your loved ones do not have any financial stress.

The earlier you buy life insurance, the cheaper it is. Since with growing age the risks associated also constantly rise. If you haven’t already, go ahead and secure a life insurance policy with sufficient coverage.

NPS and PPF

In the discussion of the best investment plan, it is quite unlikely that NPS or PPF won’t feature. The PPF or public provident fund is one of the best retirement schemes available out there. What gives it a much better appeal is its low risk and handsome return visage. You can even avail tax deductions under Section 80C for the investments that you make in PPF.

NPS or national pension scheme is another investment plan that you must consider. It combines equity, government bonds, corporate bonds, liquid funds and fixed deposits. Your investments will ensure tax deductions up to INR 1,50,000 under Section 80C and an additional INR 50,000 under Section CCD (1B). You also have the option to change the structure of the fund based on your risk appetite.

ULIP

ULIPs also make it to the list of the best investment plan. ULIP or unit linked insurance plan primarily offers you life insurance and invests the rest amount into the capital market. This ensures that you get the best of both the worlds. As is the case with other fund types, you have the option to choose from balanced, equity or growth schemes.

ULIPs have a lock in period of 5 years, which may hit that sweet spot between ELSS and other investment options. The investments in ULIP also qualify for tax deductions under Section 80C of the Income Tax Act, 1961. And they offer considerable returns as well. If you hold on to a ULIP for long-term, the returns can bring a smile on your face.

Couple it with the fact that the returns are tax-free and it is a win-win situation for you. ULIPs also give you the option to change the allocation of the fund when you wish to. Unlike some of the other investment tools, you need not have a great deal of knowledge of the market or the tools that you are investing in. Thus, it makes for a great investment tool for beginners. And recent modifications suggested by the IRDAI have made the charges low, making them even more compelling.

Health Insurance

There are enough studies to suggest that women outlive men and are more prone to chronic diseases as well. Thus, it makes for a strong case to invest in good health insurance if you are in your 30s. While your employer might be offering a family floater plan, it is recommended to buy a separate plan. Also, investment in health plans is tax deductible as well.

The above is the best investment plan that you can put your money in. Depending on your risk appetite and expectations, you can start investing in them to build a healthy corpus for your future. Some time spent on planning your portfolio will help you build that corpus at a faster rate along with good returns as well.

Recommended Read: How to manage the shortfall in your investment corpus?

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Janhavi Shinde
Written by Janhavi Shinde
Right from being a Flight Attendant to a Banker and now to a Content Writer, she has tasted success in all the fields. The kinda girl who loves pets and knows how to manage difficult people and events.