In a financial landscape often perceived as complex, experts Ashish Shanker, MD & CEO of Motilal Oswal Private Wealth, and Neha Pathak, Head of Trust & Estate Planning at Motilal Oswal Private Wealth, are urging women to take control of their financial futures by prioritising knowledge and strategic planning.
“Money is something that you need. At the end of the day, we need to learn how to save it, how to put it in the right place, and for that, you need knowledge and understanding,” stated Pathak in an interview to CNBC-TV18. She highlighted the common scenario where women rely on male family members for financial guidance, emphasising the importance of independent financial literacy.
Shanker echoed this sentiment, stressing the significance of understanding the “power of compounding” and the characteristics of different asset classes. “It’s important for women to spend some time and understand the character of different asset classes so that then they can figure out themselves as to how to invest their money,” he said. He further advised that women should learn about how to construct a diverse portfolio.
For women who are early or mid-career and single, Shanker highlighted a multi-pronged approach. “Besides investing, it is crucial to focus on insurance, both for oneself and for parents, especially since many women today are primary caregivers,” he noted. He also advocated for goal-based investing to ensure financial stability through different career milestones.
One significant financial goal for single working women, according to Shanker, is homeownership. “Buying a house is extremely important. It gives you a lot of security,” he said. Planning for a home purchase requires budgeting for the down payment and equated monthly installments (EMIs), which should be factored into a long-term financial plan.
Addressing the perennial dilemma of whether to buy a home early or wait and build a corpus, Shanker stated that the answer is individualistic. “On an excel sheet, you could make a plan to compound your money in equities and buy a house later, but a portfolio doesn’t provide as much comfort as owning your own home,” he pointed out.
He advised leaning towards early homeownership, even if it means stretching finances slightly. “Over time, EMIs remain the same, but as your career progresses, your salary will increase, making savings easier. Real estate is also a kind of saving, and it offers tax breaks and security. If you are clear about staying in a city, buy that house as early as possible,” Shanker said.
Below are the excerpts of the discussion.
Q: What is the general advice that you’d give to women out there when it comes to money, finance?
Pathak: Money is something that you need. How much ever we say that money is materialistic, we all need the money. At the end of the day we