Why Women Should Start InvestingMarch 13, 2019
International Women’s Day was marked on Friday, 8 March 2019.
In line with that, we would like to highlight the importance of investing for women. More than ever, women today form a vital part of the workforce. Female representation in employment has become increasingly diverse over the years. Gone are the days where ladies primarily fulfilled the role of caregivers at home as wives and mothers. With the income earned from their contributions to the workforce, investing wisely has become an even more pressing issue for women in this day and age.
Women today actively take part in affairs of the family; from footing housing loans, paying children’s school fees, to managing the financial security of their family. However, studies have revealed a gender gap in investment attitudes between men and women.
A survey done by BlackRock in 2016 showed that women in Singapore are more conservative and have less confidence than the opposite gender when it comes to investing. Although both genders acknowledge the importance of saving and investing, women tend to be more cautious in this area.
Thankfully, there are small steps you can take towards investing for the long term. One such way is a Regular Savings Plan (RSP) to start building an investment portfolio with small amounts every month.
1. Affordable, even for newbies
You could be a conservative individual. RSP is affordable and you can start with as low as $100, about $3.33 per day – costing less than a cup of latte from Starbucks!
You can exercise flexibility as you go along. For instance, you may have an expected bill that you need to pay, or maybe one of your monthly payments stops giving you room to invest more. Under such circumstances, an option to easily make changes to your monthly investments is essential. RSP, unlike other financial commitments, grants you flexibility. You can choose to increase or decrease your investments with ease. You can even stop your monthly subscription and resume when you are ready to invest again.
3. Never forget to invest
As a woman, juggling work and family can be demanding, and it may be easy to forget to invest when you may have other commitments. Setting up a RSP solves this problem and makes investing easier and hassle-free. Once you have selected a suitable investment and a comfortable amount to invest, the money will be automatically invested via your inter-bank GIRO account.
4. Balances out your risks
“Buy low, sell high” is a popular mantra in the investment world. However, it is incredibly difficult to time the market and buy or sell investments on a regular basis. Many investors average out the buy price of their investments by contributing smaller amounts every month and benefit from a phenomenon known as “Dollar Cost Averaging (DCA)”. Basically, your investment buys more shares or funds when the price goes down. Likewise, when the market rises above the original price, fewer shares or funds are purchased. This enables you to smooth out the returns.
5. Peace of mind
Some investors commit their money to the stock market in one sitting by investing a lump sum. But they may only enjoy the benefits if there is an increase to prices. On the other hand, if prices fall, they may have to face certain downside risks. Investing in smaller amounts gives you peace of mind because even if the market falls, you know you have invested only a fraction of your savings.
At PhillipCapital, we offer two types of RSPs for you to choose from.
Begin your investment journey with us today!
Think BIG. Start Small.
About the author
Regular Savings Plan Department
Phillip Regular Savings Plan offers a wide selection of Stocks and Unit Trust which you can invest on a monthly basis from as low as $100. Learn more about our Regular Savings Plan now.