For decades, women have demonstrated superior financial management skills, even in roles as homemakers. We’ve diligently overseen household finances with a conservative and logical approach. With the increasing participation of women in the mainstream workforce, it’s not unexpected to witness them challenging stereotypes by entering male-dominated industries, assuming CXO-level positions, and excelling in an intensely competitive environment. However, these achievements come with significant effort, struggles, and the perpetual juggling act of balancing family responsibilities and work commitments. Yet, there’s a silver lining: the freedom to make choices unrestricted by economic constraints. In an exclusive interaction with Livemint, Meeta Shetty, Fund Manager, Tata Asset Management said that while progress is being made in women’s financial independence, many still rely on male counterparts for investment decisions. Women must recognise the significance of financial independence and take charge of their investment choices. Making informed decisions early in one’s career can lead to diversified assets and better alignment with financial goals.
Importance of asset allocation and portfolio diversification
Asset allocation is crucial in our financial journey, adapting to changes in risk appetite and monetary needs. Proper portfolio diversification can decrease volatility and increase the chance of stable returns over time.
According to Meeta Shetty, the basic boxes to be ticked before one begins investing are (1) to get an understanding of the various financial products that are available, (2) to have a defined and realistic financial goal, and (3) to ensure financial discipline. It is better to start small and incrementally build on it, as it requires a lot of patience at times, especially when one is investing in equities.
The most important thing is that one must have a long-term investment horizon as the power of compounding can create a far more meaningful return vs the small quick gains, she added.
Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 08 Mar 2024, 09:06 AM IST