Introduction:
Just like drinking water, eating food & staying fit are life’s
basic necessities, earning & growing money is also equally important. Everyone
wants to increase their net worth, and wants to provide their family with a good life.
In today’s time, a woman is not only limited to just household chores but also now
they are entering into almost every field like science, pharmacy, engineering,
accountancy and many more. Remarkably, the concept of investing in stocks, bonds,
or even real estate is still frequently associated with the men in the family, despite
the fact that more and more women are becoming financially independent.
What is a stock market:
A stock market is a marketplace where
buyers and sellers trade shares of publicly listed companies. People often think it as a
place of gambling, but little do they know that the stock market, if understood &
used correctly, can do wonders with your money. As it is rightly said by well
renowned British economist Prof. J.M. Keynes in his ‘Theory of money’ that Money
has the power to multiply itself if utilized well.
Types of financial instruments in Stock market:
Financial instruments traded in stock market includes stocks/shares, mutual funds,
derivatives, and bonds. Each instrument has its own pros and cons. Moreover, each
instrument has different levels of risk involved.
Significance of stock market investment for women:
Many working women still don’t understand the concept of aggressive investment. They
would rather invest in gold jewellery or save money in bank accounts for the future.
Instead, they can explore opportunities to invest in jewellery stocks like Kalyan Jewelers,
Tanishq etc. which offer potential growth while still aligning with their preference for gold
related investments.
Reasons why women can outperform men in stock market investing:
Better decision making skills: Women often conduct deeper research before
making any decisions in their life. So, when it will come to big decisions like stock market
investments, then women are definitely going to do an excellent analysis of the whole
risk scenario before finally coming to any investing decision.
Finance controller of the family: It is generally considered that whether a woman
is financially independent or not, educated or not, but still no one can manage finance
of the home better than a woman. Therefore, if we consider this point then women can
prove themselves in the stock market as well by managing the risk associated with this
fluctuating market and they would be able to know where to invest so as to get
maximum returns out of it.
More risk aversion: Women are considered to be more risk averse as compared to
the men who usually take risk without any fear. But here, in the case of stock market
investment, this drawback of women can be taken as advantageous for them because as
they are risk averse, they would be taking more calculated risk with deeper analysis of
the market situation not just buying and selling stocks with impulsive risk.
When to make the first investment: There is no better and
greater day than today to start investing in stock market. The earlier you start investing in
stocks better it is for you. In the earlier stages of investing, try with smaller amounts of
investment in such a way that even if there are losses one can easily cope up with it and
then while analyzing the market thoroughly one can go with larger investments as well.
In a nutshell, it can be concluded that women should unlock their
potential in stock market which would in turn help them grow financially independent
that also with less time investment and smart work.
