Housewives are an integral part of every household. Even though you do not earn anything by doing household chores, your value to the family is unparalleled. As a housewife, it is not wise to assume that you do not need to make smart investments because you do not earn a salary. Keeping money idle as cash is not a wise saving method. It is critical to invest your savings smartly so that you are financially independent even as a housewife and can independently fulfill your short-term and long-term financial goals.
In this regard, mutual funds will suit your purpose. Mutual funds enable you to make daily/weekly/monthly contributions (also known as a Systematic Investment Plan (SIP)) in a fund as per your risk profile and financial goal. You can invest in equity, hybrid, or debt mutual funds. However, the ideal class of mutual funds for housewives is debt because these mutual funds offer fixed returns and are low-risk.
Here are the top five mutual funds that housewives can consider for investment:
- Tata Income Fund: If you are an investor with a low to moderate risk appetite, you can choose Tata Income Fund, which predominantly invests in debt securities with a medium to long-term horizon. Investing in this fund will assure accrual of returns and tax-efficient capital gains. You can start investing in mutual funds with a minimum SIP of Rs. 500 daily/weekly/monthly. The three-year annualized returns of this mutual fund scheme are 9.34%.
- Kotak Medium Term Fund: This is a medium-term debt mutual fund scheme where money is invested in a portfolio of debt and money market instruments. These instruments have a maturity period of three and four years. As a housewife, this fund can provide you with regular income and capital appreciation. The three-year annualized returns of this mutual fund scheme are 7.27%. The minimum SIP investment amount is Rs. 1000.
- Dynamic Government Securities Fund: This mutual fund scheme primarily invests in bonds issued by the government of India. These bonds carry no risk of default and are ideal for housewives who wish to invest for a longer duration but want 100% investment safety. The three-year annualized returns of these mutual funds are 8.68%. The minimum lump sum and SIP investment amount for this fund is Rs. 500.
- Axis Gilt Fund Direct Plan-Growth: This debt mutual fund scheme primarily invests in sovereign securities issued by the central and/or state government. As a housewife, if you want risk-free returns and investment assurance, you can choose this scheme. The three-year annualized returns of these mutual funds are 9.06%.
- Tata Medium Term Fund:Another medium-term, moderate-risk mutual fund ideal for housewives is the Tata Medium Term Fund. This open-ended mutual fund scheme invests in fixed income securities (debt, money market instruments, and government securities) to generate reasonable returns at low-to-moderate risk. The debt securities are selected based on aspects such as issuer, financial reliability of the issuer, corporate governance, liquidity, maturity, interest rate, etc. The three-year annualized returns for these mutual funds are between 5-6%.
You can choose any of the above mutual funds according to your risk profile and investment horizon. Also, read all scheme-related documents carefully before investing. Use the Tata Capital Moneyfy App to choose and track your mutual funds.