For years, women have been seen as careful savers rather than strategic investors. But that’s changing, and fast! Women today are not just managing household budgets—they’re investing, making financial decisions, and shaping their financial futures. If you’ve been thinking about taking charge of your money, now is the perfect time!

Women and Financial Independence:

Financial independence isn’t just about earning money—it’s about managing and growing it too. According to the CRISIL and DBS report, 47% of women now make financial decisions on their own, and this percentage only increases with age.

Even more exciting? 55% Self-employed women are more likely to make independent financial choices than 39% of salaried women.

What is the Role of Finance in Women’s Empowerment?

Traditionally, many women preferred to keep their money in savings accounts and fixed financial instruments. While these options feel safe, they don’t offer much growth. Now, more women are exploring investments in mutual funds.

• Women have allocated 15% of their financial investments to mutual funds, compared to just 8.4% for overall Indian households.
• Self-employed women show an even greater interest in mutual funds, investing 17% of their money in these instruments.

This shift shows that women are ready to take calculated risks and grow their wealth over time. Mutual funds are no longer just a ‘men’s game’—women are confidently joining in!

Financial Inclusion in the Mutual Fund Space!

The mutual fund industry has seen exponential growth, crossing the ₹50 lakh crore mark, and women have been a significant part of this rise. While the overall share of women’s portfolios has remained steady in recent years, their assets under management (AUM) have grown from 15% in 2017 to nearly 21% in December 2023.

What’s even more interesting? Women from smaller towns are investing at a faster rate than their urban counterparts. This shows that the financial empowerment of women is spreading beyond metro cities, making investing more inclusive and accessible.

Young Women Are Driving the Change

It’s not just older, experienced women who are investing—nearly 50% of women mutual fund investors fall in the 25-44 age group. Younger women are seeing the benefits of investing early, which means they are setting themselves up for long-term financial security.

Although more women are becoming independent investors, many still rely on trusted sources for advice.

• 47% of women depend on family members for financial guidance.
• 27% seek help from financial consultants or chartered accountants.

This highlights the need for more accessible financial education and digital literacy so that women can make informed investment decisions without solely depending on others.

The Role of Women in Financial Distribution

Not only are women investing more, but they’re also helping others do the same! The number of active women mutual fund distributors has steadily risen since 2017, reaching nearly 21,000 registrations as of December 2023.

Women empowerment in finance creates a supportive and encouraging environment, making it easier for more women to step into the world of investing.

The Future is Female:

Women are no longer just passive participants in financial decisions—they are active investors, wealth builders, and financial planners. If you’re still hesitant about investing, take this as a sign to start! Whether you’re a working professional, an entrepreneur, or a homemaker, taking control of your finances means taking control of your future.

If you’re a woman still hesitating to invest, one of the best ways to start your journey is through a SIP (Systematic Investment Plan) in mutual funds. SIPs offer a simple and disciplined way to grow your wealth over time while reducing risks through regular investments. But if you’re still unsure where to begin, consulting a Financial Product Distributor can help you choose the right investment options suited to your needs.

By taking charge of the finances today, women are not just securing their future - But redefining financial empowerment for generations to come. The time to invest is now!

Source: AMFI Women Mutual Fund Growth

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Sustainable Investing isn’t just a trend; it’s reshaping the world of finance. As people become more aware of the environmental and social impact of their investments, they’re seeking financial opportunities that reflect their values. This isn’t a passing phase—it’s a shift in how we think about wealth, society and the planet.

But what exactly is sustainable investing, and why does it matter?

What is Sustainable Investing?

Sustainable investing is not just about financial returns. It considers the broader impact of an investment—environmentally, socially, and ethically. When evaluating where to invest, factors like a company’s carbon footprint, labour practices, diversity in leadership, and commitment to sustainability play a critical role.

The idea is simple:by investing in companies that prioritise environmental and social responsibility, investors can drive positive change while aiming for strong long-term financial returns. One accessible way to get started is mutual fund investment which offer diversified portfolios that meet specific sustainability standards .

The growth of Sustainable mutual funds:

A key indicator of this shift is the rise of sustainable mutual funds. These funds pool money from multiple investors to build a portfolio of stocks, bonds, or assets that meet sustainability criteria. Sustainable mutual funds are an ideal entry point for those looking to balance ethical values with financial growth.

1. ESG Funds (Environmental, Social, and Governance)

ESG funds evaluate companies based on their environmental practices, social contributions, and governance standards. For instance, large cap companies like Infosys, known for strong ethical governance, and Tata Consultancy Services (TCS), which focuses on renewable energy usage and employee welfare.

2. Socially Responsible investment (SRI) Funds

SRI funds go further by excluding companies involved in activities considered harmful, like tobacco or weapons. Instead, they prioritise businesses that contribute to social justice and uphold ethical standards.

3. Impact Funds

These funds target key societal challenges, such as clean energy, affordable housing and access to healthcare. For example, the Avishkaar Bharat Fund invests in small and medium enterprises in sectors like renewable energy, microfinance, and sustainable agriculture.

4. Green Funds

Green funds focus on companies tackling environmental challenges, like sustainable infrastructure and clean technology. The Aditya Birla Sun Life ESG Fund, for instance, includes companies involved in renewable energy, energy efficiency, and waste management.

5. Thematic Funds

These funds focus on specific themes such as gender equality, climate change, or technological innovation. Thematic funds allow investors to align their financial goals with causes they care about. Such as investing in companies promoting gender diversity in leadership or leading climate technology efforts.

The Future of Sustainable investing:

What was once a niche strategy is now becoming mainstream, especially among younger investors who want their financial portfolios to reflect their ethical values. This demand is pushing the financial industry to offer more sustainable options.

Key trends shaping the future

1. Growing Awareness: Investors increasingly prioritise ethical investments that align with personal values, especially younger generations who are driving this demand
2. Regulatory Changes: Governments are implementing regulations to improve transparency in ESG reporting. Initiatives like the EU's Sustainable Finance Disclosure Regulation set global standards, helping investors make informed decisions.
3. Innovative Financial Products: Expect growth in green bonds, ESG-focused exchange-traded funds (ETFs), and impact funds, offering more opportunities for socially responsible investing.
4. Technological Integration: Advanced technologies like data analytics and AI are enhancing ESG assessments, allowing investors to track the real-time impact of their investments and increasing transparency.
5. Focus on Climate Resilience: As climate change presents new challenges, investors are increasingly drawn to companies developing solutions for climate adaptation and sustainability.
6. Changing Corporate Behaviour: More companies recognise that strong ESG performance is linked to long-term success, driving them to adapt ethical business practices and strategies.

Challenges and risk in Sustainable Investing:

While sustainable investment has many benefits, it also comes with several challenges. One risk is greenwashing, where companies exaggerate or misrepresent their sustainability efforts, making it difficult for investors to discern genuinely ethical business . Additionally, sustainable investments may sometimes offer lower short-term returns; though many investors believe the long-term benefits outweigh this risk.

Conclusion:

Sustainable investing offers unique opportunities to align financial goals with values that shape our world. As the economy continues to evolve, integrating environmental, social, and governance considerations into investment strategies is becoming essential for long-term financial success.

Whether you’re drawn to this approach for its potential to drive positive change or simply curious about how it fits into your financial goal, investing in mutual funds with a sustainable focus is a trend worth exploring. By staying informed, you can navigate this evolving landscape and make investment choices that reflect your values.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.

Do you know that feeling when your paycheck gets a boost? Suddenly, life seems full of possibilities. But before you know it, that bigger paycheck has disappeared faster than ice cream on a hot sunny day. So, where does all that extra money go? To know that, we need to step into the world of Lifestyle Inflation.

So, what is Lifestyle Inflation anyway?

Lifestyle inflation happens when your expenses grow along with your income. Yesterday’s treats, like eating out once a week, turn into today’s expectations, like ordering takeout every other night. It feels like progress, right? But is it really? Because a few days of leisure spending turns into a daily addiction to luxury.

If left unchecked, lifestyle inflation can quietly rob you of the chance to build wealth and achieve your long-term financial desires.

Why consider it a problem?

Here’s the thing: inflation is not just about spending more, It is more about losing track of your growing expenses and turning it into a lifestyle.

1. You stay stuck in the grind: Earning more should give you freedom, but if your expenses grow just as fast, you are still running on the same hamster wheel—just with shinier toys.
2. You miss out on Wealth Building: That money spent on yet another OTT subscription or latest gadget could’ve been used to Invest in Mutual Funds that grow over time, helping you reach your long-term aspirations faster.

Signs of Lifestyle Inflation

• You find yourself upgrading your phone, car, or clothes frequently, even when the existing ones work just fine.
• Every time your income increases, so do your monthly expenses—almost as if they’re in a race.
• Despite earning more, your savings or investments haven’t shown much progress.

How to keep it in check

The good news? You can control lifestyle inflation before it goes out of hand. Here’s how:

1. Have Clear Objectives: Dreaming of owning a house? Want to retire early? Setting specific financial aims can help you focus on what matters and avoid unnecessary consumption.
2. Save Before You Spend: The moment your salary hits, allocate a portion of it away for savings or investment, a smart way to do this is to Open an SIP Account while keeping track of your budget.
3. Ask: “Need or Want?”: Before buying something, pause and ask yourself if it’s a need or a sudden want. Most of the time, you will realize you can live without it.
4. Enjoy Mindfully: Treat yourself, but don’t overdo it. A little indulgence is fine as long as it’s not eating into your finances.

So, yes a little treat is okay…sometimes. The trick is finding a balance. Celebrate your wins while keeping your savings in check and Invest in Mutual Funds to grow your wealth along with your income.

Conclusion
Lifestyle inflation might not feel like a big deal at first. But over time, it can quietly steal away your financial freedom. By being mindful of your spending, growing your investments consistently, and keeping your priorities straight, you can enjoy life now and set yourself up for a secure future. For expert guidance, consider consulting a Mutual Fund Distributor in Surat to make smarter financial choices.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

In a world where financial desires can feel overwhelming, understanding when to save and when to invest is essential for building a secure and successful future. Let’s break it down, imagine you’ve just received your first paycheck—You’re excited, motivated and maybe a bit unsure. You’ll probably hear all the advice about : “Start saving early!” and “Invest in your future!” but—what should you actually do first?

Do you put your hard-earned money into a savings account, or should you jump straight into investing, hoping to grow your money over time? Well, let’s keep it simple so you can make the best decision for your financial future.

The case for saving: Your financial safety net

Saving is like constructing a solid foundation of a house. You wouldn’t build a house on shaky ground, now would you? Similarly, you need a strong financial base that shields you when life throws unexpected expenses your way.

Why you should save first:

• Emergency Fund: Experts recommend setting aside 3 to 6 months’ worth of living expenses as a safety net. This money isn’t for fun purchases; it provides a cushion to fall back on in case of emergencies – like car repairs, unexpected medical bills, or even a job loss.
• Peace of Mind: When you know you have a backup fund, you’ll feel less stress about potential financial crises which allows you to have the freedom to focus on other goals.
• Short-term Goals: Saving is also key for goals—like vacation, a new phone, holiday shopping, or even upgrading your laptop. Instead of relying on credit, you can use your savings to cover these short-term treats, keeping debt at bay.

But here’s the thing: while saving is vital, especially at the beginning , it’s not the only path to building wealth.

The case for Investing: Growing your finances

If saving is the foundation, investing is like building a skyscraper on top. It involves placing your money into assets—such as stocks, bonds, mutual funds or real estate—that can grow over time. Unlike savings accounts with lower interest rates, investments can yield much higher returns. For instance, by starting a SIP (Systematic Investment Plan) online you can easily invest small amounts in mutual funds regularly, tapping into market growth over time.

Here’s why investing matters:

• Power of Compound Interest: Starting early gives your money more time to grow. Compound interest amplifies your earnings, creating a snowball effect. For example, investing ₹8,000 monthly at age 25 will yield far more wealth by retirement than starting with ₹24,000 monthly at 40. The key here is time.
• Beating Inflation: Money in savings accounts might not grow quickly enough to keep up with inflation, meaning it loses purchasing power over time. Investing can help you counter this by offering higher returns.
• Long-term Goals: Whether you’re planning for a comfortable retirement, a home purchase, or even launching a business, investing can help you reach these long-term objectives faster.

So, what’s the best first move ?

Everyone’s financial journey is unique, but for most individuals, Saving should be the first priority. Here’s a simple approach:

• Start with an emergency fund: Before investing, establish a cushion of savings for any surprise life throws at you.
• Clear High-Interest Debt: If you’re carrying credit card debt or loans with high-interest rates, prioritise paying those off. The interest you save here often outweighs potential investment gains.
• Then start investing: Once your emergency fund is ready and high-interest debt is managed, start exploring investment options. You don’t need to be a stock market expert; starting SIP in mutual funds is an easy way to begin. Open SIP account and invest in a diversified portfolio to gradually grow your wealth.

Saving and investing: A dynamic duo

In reality, saving and investing don’t have to compete. In fact, they work best together.

Short-term security + Long-term growth: Saving provides peace of mind and a way to handle life’s challenges. Investing grows your money over time, helping you reach your long-term aspirations.

Balanced approach: As your finances improve, consider allocating more funds toward investing. Some people follow a 50/50 approach to saving and investing. While others shift focus to investing once they feel financially stable.

Summary

‘Save for what’s around the corner & Invest for the future’. This doesn't have to be a choice between two options. Think of it as a journey where both steps are crucial for building long-term wealth and security.

By adopting this strategy, you’ll not only gain confidence in managing whatever life presents but also reap the rewards of financial progress over time. So, prioritise saving first, then invest!

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.