Prathiba GirishLast week, I did a financial well-being session at a well-known corporate house, the participants being predominantly women in their 30s. While they were all keen on taking charge of their finances and made for an attentive audience, most of them were extremely risk-averse. I work with a lot of women and with men too. In most cases, the women are far more risk-averse than the men. Even so, meeting a group of women, all of who were shying away from investments which they perceived as risky and chose to invest in less-efficient products, was quite startling.Let me explain why. If you recollect the formula for compound interest, the variables are principal, rate of return and time. Of the three factors, the rate of return you receive is not controlled by you, whereas the other two are. If you invest a sizeable sum and give it time to grow, you are bound to create wealth. And when you invest in equity either directly or through mutual funds, compounding weaves its magic and can create a large corpus if you are disciplined and patient.Close Staying away from equity related news DDT abolished: Should investors now avoid dividend plans of MFs?… Read full this story
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