Over the past 50 years, the perception of Indian women has not only changed, but they have also risen as powerful agents of their own success. From managing households to leading multinational companies, Indian women have proven time and again that they are capable of achieving greatness in every sphere. This journey reflects their determination to break stereotypes and claim their rightful place in society as equal contributors.
Yet, when it comes to financial independence, there is still significant ground to cover. Empowering women to take control of their financial futures is key to achieving true equality. Unfortunately, nearly 49% of women in India are either not investing or lack knowledge about their investments, limiting their ability to secure long-term financial stability. In this blog, we will explore the ideal investment plans for women in 2025, encouraging them to harness these tools to build a stronger financial foundation and embrace economic empowerment
How to Get Started with Investing
Before exploring the various investment options, it’s essential to understand how to approach investing strategically. The first step in this journey is setting clear financial goals. Whether you’re aiming to build an emergency fund, save for a significant life event like education, marriage, or retirement, or simply grow your wealth over time, defining your objectives will guide your investment decisions. By knowing your goals, you can decide on the timeline of your investments and how much risk you’re willing to take. It’s also crucial to assess your current financial situation—understand your income, expenses, and existing savings to ensure you’re not overstretching your budget when you start investing.
Once your financial goals are in place, it’s time to educate yourself about the various investment products and markets. Understanding basic concepts such as risk, return, liquidity, taxes, and diversification will help you make informed decisions. You don’t need to be an expert, but familiarizing yourself with investment basics can make a world of difference. Additionally, it’s advisable to start small and gradually increase your investments as you gain more confidence. Registered advisors are the best place to seek help who can assist with making this process smoother. Remember, investing is not a one-time activity but an ongoing process that requires periodic reviews to adjust your portfolio as your financial situation and goals evolve.
Ideal Investment Plans for Women in India
Below are some of the investment plans that can be implemented by women:
Mutual Funds: Mutual funds are one of the most accessible and convenient investment options for women looking to diversify their portfolios without the need for deep financial expertise. These funds pool money from multiple investors to invest in a diversified basket of securities, such as stocks, bonds, or a combination of both, managed by professional fund managers. One of the major advantages of mutual funds is the convenience they offer—investors can start with a relatively small amount, as low as ₹500, through Systematic Investment Plans (SIPs), which allow for consistent, disciplined investing over time. This flexibility is especially useful for women managing multiple financial commitments, as they can adjust the SIP amount based on their income and savings capacity.
National Pension System (NPS): NPS is a powerful tool that can help women secure long-term financial independence by providing a reliable retirement savings option. Given its flexibility and low-cost structure, NPS allows women from all walks of life to build a robust retirement corpus with minimal effort. With tax benefits under sections 80C and 80CCD (1/1B/2), women can efficiently save while reducing their tax burden. The ability to choose from different investment options and adjust risk levels ensures that women can tailor their retirement savings plan based on personal goals and risk appetite. By investing in NPS, women can take charge of their financial future, ensuring they have a steady income stream during retirement, which ultimately empowers them with financial autonomy and freedom in their later years.
Public Provident Fund (PPF): The Public Provident Fund, or PPF, stands out as an investment choice in India that has government backing. It offers a 7.1% interest rate and comes with tax advantages. With a 15-year investment period, a minimum amount of ₹500 and a maximum of ₹1.5 lakh annually, PPF promotes responsible saving. For women investors who are risk averse, this is the best option because both the maturity amount and the interest generated are also tax-free.
Post Office Mahila Samman Savings Certificate (MSSC): The Post Office Mahila Samman Savings Certificate (MSSC) is a government-backed savings scheme exclusively designed for women, offering a secure and accessible way to grow their savings. With a tenure of just two years and investment window till 31st March 2025, MSSC is ideal for women looking for a short-term, low-risk investment option that provides guaranteed returns. The scheme allows investments starting from ₹1,000 and up to ₹2 lakh, making it suitable for both small and medium-scale investors. It offers a competitive interest rate of 7.5% per annum, compounded quarterly, which ensures steady growth over the investment period.
Gold: Gold has long been a preferred investment for Indian women due to its cultural significance and consistent value retention. However, modern gold investment options such as Gold Exchange Traded Funds (ETFs), Sovereign Gold Bonds (SGB), and Gold Funds offer more convenience and flexibility compared to traditional physical gold. Gold ETFs allow investors to purchase gold in digital form, which can be easily traded on the stock exchange, eliminating concerns about storage and purity. Gold Funds, on the other hand, are mutual funds that invest in gold-related assets, offering a diversified yet simple way to gain exposure to gold’s price movements without the need for a demat account. Sovereign Gold Bonds (SGB), issued by the Government of India, provide an additional benefit as they not only track the price of gold but also offer an annual interest of around 2.5%, making them a more rewarding option compared to holding physical gold.
Sukanya Samriddhi Yojana (SSY): The Sukanya Samriddhi Yojana (SSY) is one more type of savings plan in India that has government backing. The goal of this scheme is to encourage the education and welfare of the girl child. It was launched in 2015 under the “Beti Bachao, Beti Padhao” initiative, and it allows parents to open an account for their daughters aged 10 years or younger. The scheme offers attractive interest rates, currently set at 8.2% per annum, and provides tax benefits under Section 80C of the Income Tax Act. This scheme also allows women investors to gain financial security and tax benefits and also gives them a higher return.
National Savings Certificate (NSC): The National Savings Certificate (NSC) is another government-backed investment option that offers a safe and secure way to grow your money. With a guaranteed interest rate of 7.7%, compounded annually, NSC is a popular choice for women looking for a risk free, stable, long-term savings plan. It has a tenure of five years, making it suitable for medium-term financial goals such as saving for children’s education or future expenses.
Investing for a Better Future for Women
According to the most recent survey conducted by DBS Bank India, roughly 47% of women make financial decisions on their own, indicating the trend toward financial independence. Of these, almost 65% of women over the age of 45 make independent financial decisions whereas 41% of the women do it between the ages of 25 and 35.
Women’s empowerment through the means of financial inclusion is not only instrumental towards growth within individuals but also helps on a mass scale toward societal growth. The knowledge and proper use of accurate investment options available for Indian women can ensure increased financial security and more effectively contribute toward the economy. Financial empowerment starts with education and active participation in the act of investing-an endeavor that promises not just growth for individuals but a better future for generations henceforth.
-Nischay Avichal
